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TEST BANK FOR BUSINESS LAW TODAY STANDARD TEXT AND SUMMARIZED CASES 13TH EDITION BY MILLER
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Chapter 1MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the
question.
1) A sophisticated client
A) does not require the services of a lawyer.
B) is someone with formal legal training.
C) distrusts and derides lawyers.
D) understands the importance of the solicitor-client relationship.
E) should represent themselves, rather than paying for legal services.
2) Raman is a sophisticated client. This means that she
A) understands how to manage a lawyer-client relationship.
B) is a small business owner.
C) manages her legal affairs without assistance from a lawyer.
D) has a law degree.
E) will probably never find herself in a situation necessitating legal advice.
3) In the context of a sophisticated client, "sophisticated" can best be defined as
A) complicated, self-reliant, and cosmopolitan.
B) confident, knowledgeable, and up-to-date.
C) aggressive, dynamic, and forceful.
D) refined and cultured.
E) simple and naïve.
4) Which of the following best describes the likelihood of a student becoming involved in a
situation necessitating legal advice?
A) A student, or someone close to the student, will always become involved in such a situation
B) Because students cannot be sophisticated, they will often become involved in such situations.
C) Legal advice is not available to students.
D) A student, or someone close to a student, sometimes becomes involved in such a situation.
E) Because students are not business people, they never become involved in such situations.
5) Becoming a sophisticated client will
A) ensure that a business person never needs a lawyer.
B) relieve a business person from having to conduct legal research.
C) protect a business person from needing legal advice.
D) result in a business person developing a bias against lawyers.
E) help a business person manage her legal affairs more efficiently and effectively.
6) Having a good lawyer on your team is
A) a legal requirement prior to incorporating a business.
B) a critical component of being a sophisticated client.
C) only necessary for large companies.
D) a good alternative to becoming a sophisticated client.
E) usually too expensive to be worthwhile.
7) William Shakespeare's Henry VI, Part II includes the line "The first thing we do, let's kill all the
lawyers." The president of the Canadian Bar Association interpreted this quotation as
A) a threat to all members of the legal profession.
B) an offence meriting severe legal consequences.
C) a comment on the importance of the "rule of law".
, D) a lawyer-bashing joke.
E) a humorous attempt to embarrass lawyers everywhere.
8) Which of the following best describes the role of the lawyer?
A) The lawyer is simply one of the experts the businessperson consults.
B) The client makes decisions regarding civil matters; the lawyer makes decisions regarding
criminal matters.
C) The lawyer makes decisions regarding civil matters; the client makes decisions regarding
criminal matters.
D) The client must follow the lawyer's instructions, as long as they are lawful.
E) The lawyer makes the legal decisions for the client.
9) Which of the following statements best describes solicitor-client privilege?
A) The lawyer makes decisions regarding civil matters; the client makes decisions regarding
criminal matters.
B) The lawyer makes the legal decisions for the client.
C) The lawyer is the only expert a client should consult.
D) Refers to the duty of the lawyer to keep the information provided by the client confidential.
E) The lawyer must follow the client's instructions, even if they are illegal in nature.
10) Which of the following is NOT a good reason for a business person to seek advice from a lawyer?
A) The businessperson cannot understand the necessary legal information.
B) The businessperson is facing criminal charges.
C) The businessperson cannot find the necessary legal information.
D) It would take too long for the businessperson to find the necessary legal information.
E) The necessary legal information is available online.
11) For sophisticated clients, the availability of an abundance of legal information online is
A) a negative development, because accessing this information tends to be more costly than
retaining a lawyer.
B) a negative development, because online information is rarely accurate or helpful.
C) a neutral development, because lawyers are still the only ones able to access this information.
D) a positive development, because it provides greater access to information they can use as part
of their decision-making process.
E) a positive development, because it means that they will no longer need to retain lawyers as part
of their team.
12) When searching online for legal information, it is best to
A) trust that if it is published online, it must be accurate.
B) use American sources, as they tend to be more comprehensive than Canadian ones.
C) gauge the accuracy of the information by the look of the website.
D) never trust the information found on a website.
E) seek advice from a lawyer when answers cannot be readily found.
13) Sophisticated clients
A) know that it is better to hire a lawyer than to conduct research on one's own.
B) are willing to pay for legal advice at any cost.
C) have the skill and confidence to find basic legal information.
D) tend to be embarrassed to request legal advice.
E) do not need to retain a lawyer.
14) One reason for the general lack of respect for lawyers is that
, A) many people do not understand the role of the lawyer in the solicitor-client relationship.
B) the cost of legal advice generally outweighs its benefit.
C) lawyers who breach their duties are generally not subject to any punishment.
D) lawyers are rarely able to provide information or advice relevant to business matters.
E) lawyers are not bound by a Code of Professional Conduct.
15) The role of the lawyer is to
A) provide legal advice relevant to the client's situation, which the client has no choice but to follow.
B) provide legal advice relevant to the client's situation, which the client is free to ignore.
C) delay the client's decision-making process.
D) tell their clients what they must do.
E) tell their clients what they must not do.
16) The primary purpose of an initial consultation with a lawyer is
A) for the prospective client to decide whether to retain the lawyer.
B) for the prospective lawyer to help mediate the current dispute.
C) to discuss the availability of Legal Aid.
D) to develop strategies for dealing with the legal situation in question.
E) to arrange payment of the lawyer's fees up front.
17) The decision to enter into the lawyer-client relationship should be
A) a mutual decision made primarily on the basis of trust.
B) made primarily on the basis of cost.
C) solely up the client, as he or she is the one paying for the services.
D) solely up to the lawyer, as he or she is the one with the legal training.
E) made quickly to ensure that no one else can retain your lawyer.
18) When setting up a small business, the best approach to follow is to assume that after the business
has been set up and commences operating
A) a lawyer will no longer be required.
B) the lawyer you chose to assist you in the start-up of the business will provide free legal
services for the duration of the business's operation.
C) the lawyer you chose to assist you in the start-up of the business will continue to represent you.
D) the lawyer you chose to assist you in the start-up of the business will refer you to a different lawyer.
E) you will not need legal advice, as long as you are a sophisticated client.
19) Which of the following is NOT an advantage to maintaining an ongoing relationship with your lawyer?
A) The lawyer will know and understand you and your business.
B) The lawyer will view you as her client, giving you and your requests priority.
C) The lawyer will automatically track your business activities, so that he or she can provide
constant advice and guidance.
D) The lawyer will be able to customize his or her legal advice, so it will be even more useful to you.
E) The lawyer will be able to provide legal advice more efficiently, thereby reducing your legal costs.
20) When someone refers you to a particular lawyer, you should
A) retain the lawyer regardless of their area of practice.
B) ignore the referral as irrelevant.
C) ensure the referral is being given by someone you trust.
D) ensure the referral is from a family member, rather than a mere friend.
E) retain the lawyer regardless of who gave you the referral.
21) A lawyer referral service
, A) provides the names and phone numbers of lawyers who practice in a particular area of law.
B) regulates the legal profession in the interest of the public.
C) will enable a businessperson to retain a lawyer without need for an initial consultation.
D) is an online fee-based service providing guaranteed results.
E) is also known as "Legal Aid".
22) A provincial law society
A) operates primarily to enhance the commercial interests of its members.
B) has as its mandate the provision of free legal services, in the public interest.
C) is a self-governing body for businesspeople seeking legal advice.
D) is a self-governing body for lawyers.
E) operates primarily to offer low-cost legal advice to members.
23) The Canadian Bar Association is
A) an organization responsible for reviewing lawyers' accounts.
B) a disciplinary body for members of the legal profession.
C) a professional organization that represents judges and lawyers.
D) focused on enhancing public safety in the liquor distribution industry.
E) the national society for legal aid services.
24) Legal aid is
A) universally available, regardless of subject matter or financial need.
B) available to anyone who can demonstrate financial need, regardless of subject matter.
C) only available for business law issues.
D) available subject to substantive and financial eligibility requirements.
E) available exclusively for criminal law issues, subject to demonstrated financial need.
25) Which of the following statements is most accurate?
A) If you have a legal problem and cannot afford a lawyer, one will be provided for you.
B) If you qualify for legal aid, you will automatically be exempt from all legal costs.
C) Everyone qualifies for legal aid.
D) Everyone can afford a lawyer.
E) If you have a legal problem and cannot afford a lawyer, you may be eligible for legal aid.
26) If you collect money as a result of a settlement or judgment obtained through the assistance of
legal aid, you will
A) probably be able to keep the full amount of the settlement of judgment.
B) probably have to repay some or all of the legal aid benefits you received.
C) probably be ineligible to enforce the settlement or judgment if the debtor refuses to pay.
D) be required to turn the amount of the settlement or judgment over to legal aid.
E) be required to turn the amount of the settlement or judgment over to the court.
27) Legal Aid Ontario will NOT cover any of the following except
A) defamation.
B) wrongful dismissal.
C) change of name.
D) criminal matters.
E) personal bankruptcy.
28) The BC Legal Services Society may pay for a lawyer for a low-income client if the client has a
legal problem involving any of the following except
A) serious family problems.
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