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TEST BANK for Managing the Law 5th Canadian Edition The Legal Aspects of Doing Business (Canadian Edition) by McInnes; Anthony; Malcolm Lavoie; Kerr. Complete Chapters 1-27.
managing the law 5th edition the legal aspects of doing business canadian edition by mitchell mcinnes j anthony vanduzer malcolm lavoie ian r kerr isbn 13 9780135415597 complete chapters 1 2
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,Managing the Law, 5e (McInnes)
Chapter 1 Risk Management and Sources of Law
1.1 True/False Questions
1) The law can affect a business both positively and negatively. It often prohibits actions that
otherwise would be possible. However, it sometimes permits parties to do something that they
could not otherwise do.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 2
Topic: Why Study Law?
Skill: Recall
2) Beta Inc has recently discovered that a defect in one of its products poses a risk of injury to
consumers. Its only option, from a legal risk management perspective, is to eliminate the risk of
liability by removing the product from the market.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 4
Topic: Risk Management
Skill: Applied
3) As described in the text, the four forms of risk management are risk avoidance, risk
elimination, risk transfer, and risk acceptance.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 4
Topic: Risk Management
Skill: Recall
4) Sabeka Inc has discovered that one of its products may cause consumers to suffer a certain
form of property damage. In response to that risk, the company has written an exclusion clause
into its sales contracts. In doing so, it has adopted a form of risk management known as risk
shifting.
Answer: TRUE
Diff: 2 Type: TF Page Ref: 5
Topic: Risk Management
Skill: Applied
5) Jahume Ltd operates as an Internet service provider. It has retained Alison to work as in-house
counsel. Following an increasingly common trend, this means that she will work for the
company from her own home, rather than from a traditional law firm office.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 6
Topic: Risk Management
Skill: Applied
,6) Quebec is said to be a "civil law system" because it is derived from the legal system that
governed the citizens of ancient Greece.
Answer: FALSE
Diff: 3 Type: TF Page Ref: 8
Topic: Map of the Law
Skill: Recall
7) "Administrative law" derives its name from the fact that it is concerned with the
administration of the trial courts and appellate courts.
Answer: FALSE
Diff: 1 Type: TF Page Ref: 9
Topic: Map of the Law
Skill: Recall
8) Bianca punched Mick. She now finds herself in court. The person who has brought the claim
for damages against her is Mick himself. It is safe to assume that the court is concerned with a
private law issue, rather than a criminal law issue.
Answer: TRUE
Diff: 1 Type: TF Page Ref: 11
Topic: Map of the Law
Skill: Applied
9) Glimmer Co recently received a tax assessment with which it disagrees. It does not believe
that it should be required to pay the full amount of the demand. If it challenges the assessment,
the case will fall into the category of "public law" even though the company is a private
corporation.
Answer: TRUE
Diff: 3 Type: TF Page Ref: 11
Topic: Map of the Law
Skill: Applied
10) Bastarache & Michel is a law firm in your province. Although it occasionally has clients
from other jurisdictions, the vast majority of its work comes from within your province. Your
legislature recently enacted a statute that imposes a 5% tax on the "sale of professional services,
including … legal services." As that wording suggests, the statute treats Bastarache & Michel as
the taxpayer, even if the firm adds the cost of the tax onto the fees that it charges to its clients.
The new tax is probably intra vires and valid because most professionals provide services in only
one province.
Answer: FALSE
Diff: 3 Type: TF Page Ref: 15
Topic: Map of the Law
Skill: Applied
, 11) Because of the need to ensure that the fundamental rules for governing the country are kept
up to date, the Constitution (unlike most statutes) is quite easily amended.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 13
Topic: Sources of Law
Skill: Recall
12) Athlone Inc wants to start a new television channel. To do so, it requires a government
licence. It should apply to the federal government, rather than the provincial government,
because the issue of telecommunications is not mentioned in the Constitution. It therefore falls
under federal jurisdiction because of the residual clause.
Answer: TRUE
Diff: 3 Type: TF Page Ref: 13
Topic: Sources of Law
Skill: Applied
13) Kane Media Inc wants to start a new radio station. The government has refused to grant a
licence. Kane Media Inc believes that the government's position is blatantly discriminatory.
Nevertheless, it cannot rely on the Charter of Rights and Freedoms, which was intended to
protect the fundamental rights and freedoms of people, and which does not apply in favour of
companies.
Answer: FALSE
Diff: 2 Type: TF Page Ref: 19
Topic: Sources of Law
Skill: Applied
14) A bill to amend a business corporations statute was introduced in the House of Commons.
The statute in question must be a piece of federal legislation, as opposed to provincial legislation.
Answer: TRUE
Diff: 3 Type: TF Page Ref: 22
Topic: Sources of Law
Skill: Applied
15) Quiet Corner Bookstore is something of a landmark. It was opened in 1908 and it has long
served the needs of the community. The store's popularity is based not only on its reputation for
excellent service, but also on the fact that it has always been run by members of the same family:
the Meyers clan. In an age of increasingly anonymous chain stores, customers appreciate the
personal touch that they receive at the Quiet Corner. Recently, however, the government has
announced that it intends to expropriate the land upon which the store is located in order to build
a highway through the neighbourhood. The Meyers family may, however, be able to defeat that
plan, and save their store, by relying on a provision of the Charter that protects cherished
property.
Answer: FALSE
Diff: 3 Type: TF Page Ref: 18
Topic: Sources of Law
Skill: Applied
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