Test Bank and Solutions For Canadian Business and the Law 7th Canadian Edition 7ce By Duplessis PDF

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Solution Manual, Test Bank, ebook For Canadian Business and the Law 7th Canadian Edition By Duplessis, O'Byrne, King, Adams, Enman ; 9780176795085, 0176795081, 9780176832643, 0176832645...

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Chap01_7e Indicatewhetherthestatementistrueorfalse. 1. Litigationisusuallythemostcost-effectivemethodforresolvinglegaldisputes. a. True b. False 2. Canadaoffersanattractivecommercialenvironmentforentrepreneursbecauseithasanestablishedsetoflaws comprisedofrulesandprinciplesintendedtoguideconductinbusinessrelationshipsandprotectthepropertyof personsandbusiness. a. True b. False 3. Ineverytypeofbusinessdisputeresolution,Canadianlawrequiresthatajudgemustdecidetheamountofthe losstopreventhardfeelingsbetweenthepartiesandallowthebusinessrelationshiptobemaintained. a. True b. False 4. Partiesthatagreetosubmitdisputestoaneutralpartywhowillultimatelymakeabindingdecisiontoresolvethe disputeareagreeingtoparticipateinthearbitrationprocess. a. True b. False 5. Asupplierwhocommitstoacontractisfreeofanylegalobligationsfordirectandforeseeablefinancial consequencesthattheotherpartytothecontractmayexperienceshouldthesupplierbreachthecontract. a. True b. False 6. Mediationandarbitrationaremechanismsofferedbythelegalsystemforavoidinglitigation. a. True b. False 7. Litigationisanexpensiveandlengthyprocessthatinvolvesonebusinessentityattemptingtofindaresolutionfor aconflictcausedbytheotherpartytothecontractbyactivelyengaginginnegotiationsaidedbyaneutralparty. a. True b. False 8. Alegalriskmanagementplaninvolvesabusinessstrategythatmayrequirelegalsupervisiontoreducethe probabilityandseverityofloss. a. True b. False 9. OneofthegoalsofCanadianlawistoensurethatlossesarepaidforbythepartiesresponsibleforcreating them. a. True b. False

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Chap01_7e 10.Itisaruleoflawthatapartywhosuffersabreachofcontractisentitledtobeputinthepositionitwouldhave beeninhadthecontractbeenfulfilled. a.True b.False 11.Thelawisprimarilyaboutrulesthatconstraincommerce. a.True b.False 12.Ethicsmaydemandthatabusinessdomorethancomplywiththelaw. a.True b.False 13.Liabilitybetweenpartiesengagedinacontractualbusinessrelationshiprefersspecificallytothelegal responsibilityofonepartytotheotherforanyeventorlossthatmayoccurduetobreachofthecontract. a.True b.False 14.Businessesthathavebeenunabletoresolvecomplexcontractualdisputesmayhavetoturntolitigationasthe lastresortto,amongotherthings,establishtheliabilityofonebusinesstoanother. a.True b.False 15.Acontractprovidesthelegalbackdroptocommercialrelationshipsbydefiningtherightsandobligationsofthe parties,butitisthebusinessrelationshipitselfthatwilldeterminewhether,inaconflict,thepartieswillinsistupo strictenforcementoftheirlegalrights. a.True b.False 16.Inthelitigationprocess,thepartyinitiatingaclaimforbreachofcontractisobligatedtoproveitscase,andthe judgeisobligatedtobeasobjectiveaspossibleindeterminingwhetherthecaseofbreachhasbeenproven. a.True b.False 17.Oneofthemostimportantfunctionsoflawinthebusinessenvironmentistofacilitateplanning. a.True b.False 18.Itisaruleoflawthatapartywhosuffersabreachofcontractisentitledtobeputinthepositionthatheorshe wouldhavebeeninhadthecontractbeenfulfilled. a.True b.False

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Chap01_7e 19.Abusinessthatneglectstoprotectitsintellectualpropertymayhaveitsideastakenwithimpunitybya competitor. a.True b.False 20.Canadianbusinesslawconsistsofasetofestablishedbilingualrulesgoverningcommercialrelationshipsthat excludeenforcementofrights. a.True b.False Indicatetheanswerchoicethatbestcompletesthestatementoranswersthequestion. 21.Howdoesthelawimpactthemarketingactivitiesofabusiness? a.Itrequiresbusinessestocustomizemarketingtotherecipient. b.Itimposeslimitationsonhowfarabusinessmaygoinextollingthevirtuesofitsproduct. c.Itdoesnotregulatemarketingactivities. d.Itrequiresthatmarketingactivitiestreatallindividualsequally. 22.GrootIndustriesInc.requiresmorespaceinordertoexpanditsbusiness.Whichofthefollowingisalegal decisionthatGrootIndustriesInc.mustnowundertake? a.whoshouldbehiredtoconstructanewbuilding b.whetheritsnewpremiseswillberegulatedbyhealthandfireregulations c.whethertobuy,build,orleaseadditionalpremises d.whethertoobtaininsuranceforitsnewpremises 23.WhichstatementbestexemplifiesaprotectiveelementofCanadianlaw? a.Itseekstomakethosewhobreakthelawaccountable. b.Itsetsrulesinordertoencouragecomplexity. c.Itsetsrulesinordertoencouragecomplacence. d.Itprovidesrulesthatprohibitmakingcommitments. 24.OrganicVeggies’4’UInc.hasenteredintoaone-year,extendablesuppliercontractwithEcoWiseFertilizersLtd forthedeliveryof1.5-tonpalletsofwormcastingsfertilizeratapriceof$2,000pertoninMarchandJune.Wha typeofroledocontractlawanditscontributionstotheestablishmentofthisbusinessrelationshiphave? a.afacilitatingrole,providingdefinition,context,andcertainty b.anethicalrole,facilitatingbetterenvironmentalpractices c.alitigationrole,definingclearareasofliabilityforbreach d.agoverningrole,providingacomprehensiveactionplan 25.Whichofthefollowingbestdescribeshowlawprotectsmembersofsociety? a.settingruleswithpenaltiesandmakingthosewhobreakthelawaccountable b.establishingethicalrulesandminimizingrisksbeforetheymaterialize c.constrainingbusinessactivityandregulatingcommercialrelationships d.minimizingunknowncontingenciestoavoidirreconcilabledisputesbetweenbusinesses Copyright Cengage Learning. Powered by Cognero.

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Chap01_7e 26.Kamalisacomputertechnicianwhoisabouttoenterintoaone-yearcontracttoprovideITservicestoareal estateagency.FromKamal’sperspective,whatisthemostimportantfunctionofthiscontract? a.toestablishpenaltiesfornon-compliance b.todealfairlywithunexpectedevents c.toresolveconflicts d.toplanforthefutureandenforceexpectations 27.Whatconsequencesmightabusinessfacebyskirtingethicalnorms? a.badpublicityandcondemnation b.CriminalCodeconviction c.conflictofinterest d.breachofcontract 28.Whichofthefollowingbestdescribesthenatureofthearbitrationprocess? a.negotiatedresolutionwiththeassistanceofaneutralperson b.neutralpartymakesadecision(usuallybinding)thatresolvesadispute c.submissiontojudgefordecision-making d.renegotiationofthecontractwiththeassistanceofajudge 29.Asmallgroupofentrepreneursundertakingabusinessventurehaveagreedontheroleseachwillassumeinthe business,buttheymustnowdeterminetheformofbusinessstructurefortheenterprise.Whatdoesthelaw facilitatebyofferingentrepreneursdifferentbusinessstructureoptions? a.choiceofdegreeofexposuretoliabilityforbusinessrisks b.rulesthatmakewrittenagreementsbetweenpartiesbinding c.opportunitiestomaximizetheprotectionsthatthelawextends d.legalcertaintyforactivitiesconductedinthecommercialarena 30.NovelSwingsInc.hasacontracttobeginconstructionofaschool’sswingsetonJune15th,andworkistobe completedbyAugust1st.Afterweeksofwetweather,thegroundwasunsuitableforworktobegininJuneand Novelwillnotmeetthecompletiondeadline.Whichstatementbestdescribesthelegalstatusofthecontractual relationshipbetweenNovelSwingsandtheschool? a.Thecontractisvoidduetowetweather. b.Thecontractrequiresrenegotiation. c.Thecontractisingoodstanding.

d.Thecontracthasbeenbreached.

31.Jimhasretainedalawyertofilealawsuitclaimingeconomiclossduetotheftofbusinessrevenuesbyhis partner.WhatformofdisputeresolutionhasJimundertaken? a.arbitration b.mediation c.litigation

d.reconciliation

32.WhichlawregulatesprivacystandardsinmostCanadianprovinces? a.theConsumerProtectionAct b.thePersonalInformationProtectionandElectronicDocumentsAct c.theCriminalCodeofCanada d.thePrivacyandMarketingAct

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Chap01_7e 33.Whatmightbethelegalconsequenceifabusinessweretochooseanameforitsnewproductthatisverysimila tothenamealreadyusedbyacompetitorforitscompetingproduct? a.mandatoryarbitration b.alawsuitfordefamation c.alawsuitforpassingoff d.prosecutionundertheCriminalCode 34.Whatisthepurposeofcontractlaw? a.toensurelitigationofpartiescommittingcontractualbreach b.toprescribeprinciplesandvaluesforuseinsociety c.todeterminerightandwronginthebusinessworld d.toenforceexpectationsandfacilitateplanning 35.Afternumerousrequestsforpaymentfortheservicesitprovidedtoaclient,CandoEnterprisesInc.foundit necessarytosueinordertorecovertheamountitwasowed.WhattypeoflawdidCandoEnterprisesInc.resor to? a.employment b.business c.criminal

d.contract

36.Whatarethecommonlyusedalternativedisputeresolutionmethodsforavoidinglitigation? a.intervention,negotiation,andreconciliation b.intervention,arbitration,andmediation c.negotiation,mediation,andadjudication d.directnegotiation,mediation,andarbitration 37.Thegovernmentrecentlyenactedrulesgoverningtheuseofdronesthatwilllimithowtheyareusedby businessesandindividuals.Whatpurposeisthelawfulfillinginthissituation? a.facilitatingplanningbyensuringcompliancewithcommitments b.protectingbusinessesbysettingpenaltiesandensuringaccountability c.respondingtoemerginghazardsinsocietyandsettingrulestoprotectthepublicinterest d.ensuringthatlossesarebornebythosewhoareresponsibleforthem 38.Whatisusuallythefirstlogicalstepforpartiesinvolvedinalegaldispute? a.tosubmittheirdisputetoamediator b.toengagelegalcounsel c.tosubmittheirdisputetoanarbitrator d.totrytocometoaresolutionbetweenthemselves 39.Whattypeoflawisthevehicleforensuringthatthoseaffectedbyafailedbusinessaretreatedfairly,reasonably andinaccordancewithagreedrules? a.bankruptcy b.contract c.criminal

d.corporate

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Chap01_7e 40.Whichstatementbestexplainshowbusinesslawguidesbusinessconduct? a.Thelawsetsrulesandpenaltiestoencouragecompliance. b.Thelawsetsspecificcodesofethicstoguideconduct. c.Thelawseekslevelsofcompensationexceedinglosses. d.Thelawlimitsexecutivecompensationtoguideconduct. 41.Whichofthefollowingbestdefinesbusinesslaw? a.legalresponsibilityfortheoccurrenceofaneventcausingloss b.rulesgoverningcommercialrelationshipsandtheenforcementofrights c.rulesgoverningproceduresinvolvedwhenonepersonsuesanother d.rulesprovidingmembersofasocietywithestablishedrights 42.Oliviaissuingasupplierforbreachofcontract.Assumingsheissuccessful,whatremedymightsheexpectto receivefromthecourt? a.restitution b.punitivedamagesbasedontheseriousnessofthecontractbreach c.aggravateddamages d.asumofmoneythatwillputherinthepositionthatshewouldhavebeenhadthecontractbeenfulfilled 43.Whatisoneofthemostsignificantcontributionsthelawcanmakeinthecommercialarena? a.establishingpenaltiesforbreachingpromises b.definingthemoralprinciplesandvaluesoftherelationship c.creatingcertaintyinbusinessrelationships d.settingstandardsforserviceinbusinessrelationships 44.AlphaTextileLtd.hasdevelopedalineofclothingandisconsideringusingthebrandnameKalvinCleininorder totakeadvantageofthefamiliarityofitstargetmarketwithawell-knowndesignernamedCalvinKlein.What legalconsequencesmightAlphaTextileLtd.faceifitproceedswithitsplan? a.beingsuedfornegligencebyitscustomers b.criminalproceedingsforbreachoftrademarklegislation c.beingsuedfordamagesbyCalvinKlein d.nolegalconsequencesbecauseitisnotactuallyusingthenameCalvinKlein 45.Whatistheroleofbusinessethics? a.toprovideacomprehensiveplanfordealingwithlegalrisk b.toestablishprinciplesandvaluesfordeterminingrightandwronginthebusinessworld c.toresolvedisputesbetweenconflictingparties d.toimposelegalresponsibilityforaneventorlossthathasoccurred

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Chap01_7e 46.Inwhatwayismediationdifferentfromarbitrationandlitigation? a.Mediationisfreeanddoesnotrequiretheassistanceofalawyer. b.Mediationistime-consumingandtendstobeineffective. c.Mediationresultsinaninformal,non-bindingdecision. d.Mediationinvolvestheuseofaneutralpartytoassistwithresolutionofthedispute. 47.ChampionWellDrillingInc.isbeingsuedforrupturingagaslinewhiledrillingawellonacustomer’sproperty. HowmightChampionbestavoidsimilarrisksinthefuture? a.bydevelopingandimplementingalegalriskmanagementplan b.bylimitingitselftozero-riskprojects c.byensuringithassufficientresourcessetasidetopayoutfuturejudgments d.byhiringamediatortoassistinresolvingfuturelegaldisputes 48.Whatarethestandardformsofbusinessstructureavailabletoentrepreneurstofacilitatecreationofafor-profit businessenterprise? a.soleowner,proprietor,andpartnership b.soleproprietor,partnership,andcorporation c.solepartnership,proprietor,andcorporation d.soleowner,proprietor,andcorporation 49.JoyisasalesrepresentativewithEduPlanLtd.,abusinesssellingeducationsavingsplans.Shereceiveda hospitalrecordsettingoutthenamesandcontactinformationofwomenwhorecentlygavebirthatalocal hospital.Shereceivedtherecordfromherfriendwhoisanurseinthematernityward,whophotocopiedit withoutpermission.Joyintendstocontactthesepotentialleadsaboutpurchasinganannuityfromherbusiness. HowdoesthelawimpactthedisclosureofthisrecordtoJoy? a.byrequiringbusinessesandorganizationstoprotecttheprivacyofpersonalinformationbyimposingand collectingfineswhentheybreachthisobligation b.byensuringthatJoyisrequiredtocompensateherfriendforherassistanceinprovidingtherecord c.bypunishingJoyforusingtherecordforapurposethatwasnotcontemplatedwhentherecordwas created d.byrequiringJoytoobtainthehospital’sconsentbeforeusingtherecord 50.WhichofthefollowingisNOTanobjectiveofbusinesslaw? a.protectionofbusinessideasandtangibleproperty b.ensuringlossesarebornebythosewhocausethem c.impositionoffinesonthosewhobreachcontracts d.facilitatingplanningbyensuringcompliancewithcommitments 51.Whataresomeexamplesoftypicalbusinesstransactionsandeventswithsignificantlegalimplications?  

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Chap01_7e 52.Brieflydescribehowthelawofcontractfacilitatescommercialactivity.  

53.Lawsuitscometocourtforeitheroftworeasons:thereisadisputeaboutthefactsthatactuallyoccurredor thereisadisputeaboutthewaythelawtreatstheparties.Describetheroleandobligationsofthejudge, includingwhatdetailsmustbeconsideredandwhatmustbeproventothecourttoallowittoreachadecision resolvingthedispute.  

54.Brieflydescribethestepsthatpartiesmustgothroughtoachievetheconsensusreflectedinacontract.What roledoesalawyerplayinthisprocess?  

55.Brieflydescribethemainreasonsthatsomebusinessdisputesmustberesolvedincourt.  

56.Whymightabusinessinvolvedinalegaldisputeprefertoreachaprivatesettlementinsteadoflitigatingthe matterincourt?  

57.Brieflydescribethemainreasonsonepartytoacontractmightdecidetooverlookabreachofcontractbythe otherparty.  

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Chap01_7e AnswerKey 1.False 2.True 3.False 4.True 5.False 6.True 7.False 8.True 9.True 10.True 11.False 12.True 13.True 14.True 15.True 16.True 17.True 18.True 19.True 20.False 21.b 22.c 23.a 24.a 25.a 26.d

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Chap01_7e 27.c 28.b 29.a 30.d 31.c 32.b 33.c 34.d 35.d 36.d 37.c 38.d 39.a 40.a 41.b 42.d 43.c 44.c 45.b 46.d 47.a 48.b 49.a 50.c 51.Examplesoftransactionsandeventshavinglegalimplicationsinclude:choiceofformofbusiness,businessname selection,financingconsiderations,propertypurchasingandleasingdecisions,andmarketingandadvertising strategies.

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Chap01_7e 52.Thelawofcontractprovidesawayforpartiestoenterintobindingagreements,therebycreatingameasureofsecurity andcertaintyintheirbusinessoperations.Contractlawalsoallowsbusinessenterprisestoplanforthefutureandto enforcetheirexpectations. 53.Theroleofthejudgeistoreviewtheclaimandconsiderthecontractandotherevidence,aswellaslegalarguments presentedbybothsidestodeterminewhattheagreementbetweenthepartiesactuallywasandwhatlawsapply.The judgeisobligatedtothenimpartiallyapplythelawinanobjectivemannertodeterminew...