Law & Business Administration Exam Questions With
Complete Solutions
, is one of the major shareholders of Canco. This situation could
result in a
a. violation of the statute.
b. breach of duty.
c. conflict of interest.
d. fiduciary duty.
e. breach of contract. Correct Answer c
Diff: 1
Type: MC
Topic: Liability of Professionals
Skill: Recall
18
, not every professional relationship will be fiduciary in nature.
Explain. Correct Answer Many types of relationships involving
professionals may not necessarily be fiduciary in nature. It will
depend on the particular facts of the case. In order to establish a
fiduciary relationship, five factors must be considered carefully:
the vulnerability of the client; whether the relationship involved
trust of the professional; whether the client relied (to the client's
detriment
, that consumer will be bound by the terms of the Internet
contract at the moment the consumer clicks the "I accept" icon
on the computer screen. However, some retailers specifically
design their websites to require multiple acceptances before a
"submit" icon is finally clicked. This would appear to satisfy the
,legislative "agreement to terms" requirement before the entire
offer to purchase is submitted. In this context, the contract may
not be formed until the retailer communicates acceptance with a
confirmation number.
Diff: 2
Type: ES
Topic: Formation of Internet Contracts
Skill: Recall/Applied
1 Correct Answer
.
c. Supreme Court.
d. Small Claims Court.
e. Surrogate Court (Probate Court Correct Answer
. Correct Answer d
Diff: 3
Type: MC
Topic: The System of Courts in Canada
Skill: Applied
11
. Henry, needing a loan from his bank, went to his accountant,
Bob Wallice, and asked him to prepare a financial statement of
the company that Henry could give to the bank to get the loan.
Unfortunately, Mr. Wallice included certain property that did
,not belong to the company, which increased its value. When
Henry took the financial statement to the bank, the bank caught
the error, but made Henry guarantee the loan. The bank then told
Mr. Wallice, who forgot to correct the error in the financial
statement. A few days later, Henry decided he needed to invest
more money in his company and began negotiations with a
business associate, Carol Hill. When Carol asked for the
financial statement of the company, Henry told her she could get
it from the bank or from his accountant. Carol decided to go to
the bank, which gave her the financial statement with the error
in it. Based on the financial statement, Carol invested $50
Correct Answer e
Diff: 3
Type: MC
Topic: Liability of Professionals
Skill: Applied
7
A bartender employed in a licensed establishment over-serves a
patron. As a result of the over-service, the patron physically
assaults another patron by striking him with a beer bottle.
Identify and describe the three forms of liability that may arise
as a result of this single incident. Correct Answer There may
very well be criminal charges laid against the patron who
committed the assault. This is a matter of public law and would
impose the most serious consequences as a result of this criminal
act. Additionally, the injured patron may very well sue for
compensation as a result of the injuries sustained. The court
would be required to determine whether the patron who
committed the assault and/or the bartender who over-served him
, are civilly liable. Finally, liquor licence authorities may request
a tribunal hearing to determine whether the tavern is responsible
for violating regulatory laws that govern the service of alcohol
in a licensed establishment.
Diff: 3
Type: ES
Topic: Forms of Legal Liability
Skill: Applied
1
A binding code of conduct is a
a. general code of conduct that is available to anyone.
b. code of conduct established voluntarily by industry.
c. code of conduct that governments impose on business and
industry.
d. code of conduct that regulates specified activities, such as
those of professionals.
e. code of conduct that a firm or business imposes on itself.
Correct Answer d
Diff: 2
Type: MC
Topic: Law and Business Ethics
Skill: Recall
14
A business can be managed and run in either a prudent and
responsible manner or a stupid manner. Explain how a prudent
and responsible businessperson would manage and run a new
business that he or she has just began as compared to a person
who was not prudent or responsible. Correct Answer A prudent
Complete Solutions
, is one of the major shareholders of Canco. This situation could
result in a
a. violation of the statute.
b. breach of duty.
c. conflict of interest.
d. fiduciary duty.
e. breach of contract. Correct Answer c
Diff: 1
Type: MC
Topic: Liability of Professionals
Skill: Recall
18
, not every professional relationship will be fiduciary in nature.
Explain. Correct Answer Many types of relationships involving
professionals may not necessarily be fiduciary in nature. It will
depend on the particular facts of the case. In order to establish a
fiduciary relationship, five factors must be considered carefully:
the vulnerability of the client; whether the relationship involved
trust of the professional; whether the client relied (to the client's
detriment
, that consumer will be bound by the terms of the Internet
contract at the moment the consumer clicks the "I accept" icon
on the computer screen. However, some retailers specifically
design their websites to require multiple acceptances before a
"submit" icon is finally clicked. This would appear to satisfy the
,legislative "agreement to terms" requirement before the entire
offer to purchase is submitted. In this context, the contract may
not be formed until the retailer communicates acceptance with a
confirmation number.
Diff: 2
Type: ES
Topic: Formation of Internet Contracts
Skill: Recall/Applied
1 Correct Answer
.
c. Supreme Court.
d. Small Claims Court.
e. Surrogate Court (Probate Court Correct Answer
. Correct Answer d
Diff: 3
Type: MC
Topic: The System of Courts in Canada
Skill: Applied
11
. Henry, needing a loan from his bank, went to his accountant,
Bob Wallice, and asked him to prepare a financial statement of
the company that Henry could give to the bank to get the loan.
Unfortunately, Mr. Wallice included certain property that did
,not belong to the company, which increased its value. When
Henry took the financial statement to the bank, the bank caught
the error, but made Henry guarantee the loan. The bank then told
Mr. Wallice, who forgot to correct the error in the financial
statement. A few days later, Henry decided he needed to invest
more money in his company and began negotiations with a
business associate, Carol Hill. When Carol asked for the
financial statement of the company, Henry told her she could get
it from the bank or from his accountant. Carol decided to go to
the bank, which gave her the financial statement with the error
in it. Based on the financial statement, Carol invested $50
Correct Answer e
Diff: 3
Type: MC
Topic: Liability of Professionals
Skill: Applied
7
A bartender employed in a licensed establishment over-serves a
patron. As a result of the over-service, the patron physically
assaults another patron by striking him with a beer bottle.
Identify and describe the three forms of liability that may arise
as a result of this single incident. Correct Answer There may
very well be criminal charges laid against the patron who
committed the assault. This is a matter of public law and would
impose the most serious consequences as a result of this criminal
act. Additionally, the injured patron may very well sue for
compensation as a result of the injuries sustained. The court
would be required to determine whether the patron who
committed the assault and/or the bartender who over-served him
, are civilly liable. Finally, liquor licence authorities may request
a tribunal hearing to determine whether the tavern is responsible
for violating regulatory laws that govern the service of alcohol
in a licensed establishment.
Diff: 3
Type: ES
Topic: Forms of Legal Liability
Skill: Applied
1
A binding code of conduct is a
a. general code of conduct that is available to anyone.
b. code of conduct established voluntarily by industry.
c. code of conduct that governments impose on business and
industry.
d. code of conduct that regulates specified activities, such as
those of professionals.
e. code of conduct that a firm or business imposes on itself.
Correct Answer d
Diff: 2
Type: MC
Topic: Law and Business Ethics
Skill: Recall
14
A business can be managed and run in either a prudent and
responsible manner or a stupid manner. Explain how a prudent
and responsible businessperson would manage and run a new
business that he or she has just began as compared to a person
who was not prudent or responsible. Correct Answer A prudent
