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
ANSWER:
c
9. 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
ANSWER:
b
10. 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
ANSWER:
d
11. 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
ANSWER:
b
12. 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
ANSWER:
a
13. 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. What 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
ANSWER:
a
14. 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
ANSWER:
c
15. What might be the legal consequence if a business were to choose a name for its new product that is very similar 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
ANSWER:
c
16. 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
ANSWER:
a
17. 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?