test bank for canadian business and the law 7th ed
Connected book
Book Title:
Author(s):
Edition:
ISBN:
Edition:
Written for
Canadian Business and the Law 7th Edition by Dupl
All documents for this subject (1)
1
review
By: mostafah2009 • 1 year ago
Seller
Follow
AcademiContent
Reviews received
Content preview
,Name: Class: Date:
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
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
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 upon
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
Copyright Cengage Learning. Powered by Cognero. Page 2
, Name: Class: Date:
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. 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
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. Page 3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AcademiContent. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $36.97. You're not tied to anything after your purchase.
