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
ANSWER:
d
28. 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
ANSWER:
c
29. 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.
ANSWER:
a
30. 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.
ANSWER:
d
31. Canadian business law consists of a set of established bilingual rules governing commercial relationships that exclude enforcement of rights.
a.
True
b.
False
ANSWER:
False
32. 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
ANSWER:
True
33. The law is primarily about rules that constrain commerce.
a.
True
b.
False
ANSWER:
False
34. Mediation and arbitration are mechanisms offered by the legal system for avoiding litigation.
a.
True
b.
False
ANSWER:
True
35. 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
ANSWER:
False
36. Litigation is usually the most cost-effective method for resolving legal disputes.
a.
True
b.
False
ANSWER:
False
37. 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
ANSWER:
True
38. A business that neglects to protect its intellectual property may have its ideas taken with impunity by a competitor.
a.
True
b.
False
ANSWER:
True
39. 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
ANSWER:
False
40. 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 upon strict enforcement of their legal rights.