Question 1

To escape personal liability,when a party enters into a pre-incorporation contract,it is enough for that party to simply state on the written contract that he or she is entering into the contract on behalf of a company to be incorporated.

Accepted Answer

Simply stating on a written contract that a party is entering into the contract on behalf of a company to be incorporated is not enough to escape personal liability. The company must actually be incorporated and assume the contract as part of its corporate activities.

Question 2

Mandy had her securities licence suspended by the securities commission,yet she continues to buy and sell stock as an investment dealer.Mandy certainly

Accepted Answer

The answer of Mandy had her securities licence suspended by...

Question 3

Schemes of government regulation resemble traditional criminal law because

Accepted Answer

Both government regulation schemes and criminal law prohibit certain types of conduct and punish those who do not comply. Therefore, E is the best choice. Although C is also partially correct, not all regulatory offenses require proof of intention or mens rea.

Question 4

Secondary market liability occurs when someone who owns shares in a company sells them in circumstances where information released about the state of the company is false and not yet corrected.

Accepted Answer

Secondary market liability refers to the liability of someone who sells shares in a company in circumstances where false information has been released about the company and not yet corrected. This includes cases where the seller knew or should have known about the false information.

Question 5

Under criminal law,corporations are subject to be punished.Punishment can take place by

Accepted Answer

All of the above options are possible punishments for corporations under criminal law, depending on the severity of the offense committed. Heavy fines may be imposed on the corporation itself, and directors may face imprisonment if they were directly involved in the offense. The "directing mind" behind the offense may also be fined or imprisoned. In extreme cases, dissolving the corporation may be deemed necessary.

Question 6

The characteristics of corporations presents special problems for criminal liability in part because

Accepted Answer

The answer of The characteristics of corporations presents special problems...

Question 7

Offences under such statutes as the Canada Environmental Protection Act are criminal offences.

Accepted Answer

Offences under statutes like the Canada Environmental Protection Act are typically considered regulatory or quasi-criminal offences, not criminal offences in the traditional sense. They are designed to enforce specific regulations and standards, primarily to protect the environment, rather than to punish moral wrongdoing.

Question 8

Pat is one of 16 owners of Camstick Ltd.This corporation has been fined $30 000 for polluting the town's water supply.Pat is on the board and now finds himself charged and being convicted on the same matter.The judge finds that Pat personally knew and did nothing about the polluting.Not only that,but he has no remorse concerning the incident.The judge is now giving him,under the Environmental Protection Act,the maximum prison term of

Accepted Answer

The answer of Pat is one of 16 owners of...

Question 9

In order to avoid an environmental accident,a business should take all of the following steps EXCEPT

Accepted Answer

The other options (A, B, and C) all suggest proactive measures a business can take to minimize the risk of an environmental accident. Option D is incorrect because directors should have some knowledge of the business's activities and risks in order to make informed decisions about hiring knowledgeable individuals and creating effective environmental policies.

Question 10

No knowledge of the law is a good defence to an absolute liability offence.

Accepted Answer

In the case of absolute liability offences, the defendant's knowledge or intention regarding the law is irrelevant; the only requirement for conviction is proof that the defendant committed the act.

Question 11

The Criminal Code of Canada contains some offences that are applicable to corporate conduct.With respect to whistle-blower retaliation,it is an offence to

Accepted Answer

The answer of The Criminal Code of Canada contains some...

Question 12

Bill and four friends are driving to the movies.The vehicle Bill is driving is travelling 21 km per hour over the speed limit.Terry is one of the passengers in the back seat.He intentionally throws an empty bottle at a pedestrian who is walking on a nearby sidewalk.She is struck with the bottle and injured.The police pull the car over and charge Bill and Terry with separate offences.The classification of the offences with which they are charged,respectively,is as follows

Accepted Answer

The answer of Bill and four friends are driving to...

Question 13

A corporation that is not paying its creditors in a timely fashion is probably insolvent.

Accepted Answer

Insolvency means that a company is unable to pay its debts as they become due. Therefore, if a corporation is not paying its creditors in a timely fashion, it is likely to be insolvent.

Question 14

The failure of a company to ensure that its employees are well trained for the job they do and to ensure that their workplace is safe is an offence under occupational health and safety legislation.

Accepted Answer

This statement is true. Under occupational health and safety legislation, it is a legal requirement for companies to provide their employees with adequate training and a safe work environment. Failure to do so can result in fines, legal action, and even criminal charges in some cases.

Question 15

Under the regulatory offence of "strict liability," the standard that must be met for obtaining a conviction is

Accepted Answer

Under the regulatory offence of "strict liability," the doing of the prohibited act raises a presumption that an offence has been committed-unless the accused can prove she or he took all reasonable care. This is different from "absolute liability," where the standard for obtaining a conviction is the same as under "strict liability" but there is no defense available for the accused even if they took all reasonable care. Additionally, proving mens rea is not required under strict liability offenses.

Question 16

There are a number of statutes that contain protections for the benefit of employees.Which of the following pieces of legislation does not contain any provisions with respect to protection of employees?

Accepted Answer

Sale of goods legislation deals with rules and regulations related to the sale of goods, and does not contain any provisions related to the protection of employees. The other options listed all contain provisions related to the protection of employees in some form or another.

Question 17

Offences under the Criminal Code of Canada are both criminal and regulatory in nature.

Accepted Answer

Offences under the Criminal Code of Canada are specifically criminal in nature, while regulatory offences are typically governed by other statutes and regulations.

Question 18

Hazel was deliberately cheated by a clerk at the Hamilton Bay Corp.Can the corporation be found guilty of a criminal offence?

Accepted Answer

The answer of Hazel was deliberately cheated by a clerk...

Question 19

When it comes to damage of the environment,any person who actually commits an offence is personally liable

Accepted Answer

The answer of When it comes to damage of the...

Question 20

Corporations are always liable in tort for contracts entered into with third parties.

Accepted Answer

Corporations are not always liable in tort for contracts entered into with third parties. Liability in tort arises when the corporation has acted negligently or intentionally towards the third party, causing harm or damages. Simply entering into a contract does not automatically make the corporation liable in tort.

Quiz 27: Corporate Governance: External Responsibilities