TESTITEMFILE f f
Craig Allen f
THE LAW AND BUSINESS F F F
ADMINISTRATION IN
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CANADA F
Fourteenth Edition f
J.E. Smyth f
University of Toronto f f
D.A. Soberman f
Queen’s University f
A.J. Easson f
Queen’s University f
S.A. McGill f
Wilfrid Laurier University f f
Toronto
Copyright © 2016 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected
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by Canadian copyright laws and is provided solely for the use of instructors in teaching their courses
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and assessing student learning. Dissemination or sale of any part of this work (including on the
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Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants
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permission to instructors who have adopted The Law and Business Administration in Canada,
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f Fourteenth Edition by Smyth, Soberman, Easson, McGill, to post this material online only if the use of
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the website is restricted by access codes to students in the instructor’s class that is using the textbook
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and provided the reproduced material bears this copyright notice.
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, TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter
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1: Law, Society, and Business f f f f f
1) A simple definition of law would be misleading because law is so
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a. bound up with the rule of law. f f f f f f
b. diverse and complex. f f
c. difficult to define. f f
d. none of the above f f f
e. all of the above
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Answer: b f
Diff: 2
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Type: MC
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Topic: The Role of Law f f f f
Skill: Recall
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2) We need to have law because it
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a. regulates individuals’ interactions with one another. f f f f f
b. gives the government the power to act for the benefit of society in general.
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c. provides an element of certainty in determining contractual and property rights.
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d. protects persons, property, and society, and prohibits conduct that society believes is
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harmful.
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e. all of the above
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Answer: e f
Diff: 2
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Type: MC f
Topic: The Role of Law f f f f
f Skill: Recall f
3) The fact that laws that appear to be unjust must still be obeyed suggests that
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a. justice is merely the result of the influence of ethics.
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b. justice is merely a product of social morals.
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c. there is a difference between good laws and bad ones.
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d. in reality, we must think of justice as nothing more than the result of our legal system.
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e. those who make the laws just do not care.
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Answer: d f
Diff: 3
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Copyright © 2016 Pearson Canada Inc. f f f f f
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, TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter
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1: Law, Society, and Business f f f f f
Type: MC f
Topic: The Role of Law f f f f
f Skill: Applied f
4) The Canadian legal profession is organized on a provincial basis with each province
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having its own “bar” society. However, a member of any provincial bar may appear
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before
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a. the House of Lords in England.
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b. the International War Crimes Tribunal.
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c. the Supreme Court of Canada.
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d. any Human Rights Tribunal in any province.
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e. any Landlord and Tenant Board Tribunal in any province.
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Answer: c f
f Diff: 3 f
f Type: MC f
Topic: Legal Risk Management f f f
f Skill: Recall f
5) Joe hired Julie, a lawyer, to defend him on assault charges. At their first meeting he
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told her the details concerning his involvement in the assault. After a dispute between
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Joe and Julie in relation to legal fees, Joe decided to retain a new lawyer. The police
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attended at Julie’s office to ask her questions concerning what Joe told her about the
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assault. In these circumstances
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a. the solicitor/client privilege does not allow Julie to reveal any communications she had
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with Joe without his approval.
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b. given that the solicitor/client relationship has ended, Julie is at liberty to disclose the
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information.
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c. the solicitor/client privilege does not extend to admissions by clients of wrongdoing so
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communications must be disclosed.
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d. Julie is at liberty to disclose any information in relation to the dispute with Joe over
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fees but not in relation to communications about the assault.
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e. the Canada Evidence Act permits Julie to disclose any information once the retainer
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has ended.
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Answer: a f
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, TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter
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1: Law, Society, and Business f f f f f
Diff: 3 f
f Type: MC f
Topic: Legal Risk Management f f f
f Skill: Applied f
6) A compliance officer employed by a business for purposes of monitoring legislative
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requirements applicable to the business ensures
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a. that outside counsel are hired by the business on a general retainer basis to respond to
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urgent matters.
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b. that the business complies with all regulatory and legislative requirements to avoid
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claims, fines and other possible penalties or sanctions.
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c. that probationary employees are screened and monitored appropriately by the business
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in the 90 day period.
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d. that the business pays outstanding fines.
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e. that someone attends on all Small Claims Court matters where outside counsel are not
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required.
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Answer: b f
f Diff: 3 f
f Type: MC f
Topic: Legal Risk Management f f f
f Skill: Applied f
7) When we say that the law is part of every facet of business, we mean that
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a. it is central to business interaction with customers, suppliers, competitors, and
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government.
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b. business cannot succeed without understanding the law. f f f f f f
c. it outlines what we do, how to do it, and what not to do.
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d. the failure of businesses to comply with the law may result in criminal, regulatory,
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and/or civil liability.
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e. all of the above
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Answer: e f
Diff: 2
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Type: MC f
Topic: Law and Business f f f
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