Question 1

A law that applies restrictions on advertising,but does not prohibit it,is probably

Accepted Answer

The Charter of Rights and Freedoms guarantees the freedom of expression, which includes commercial advertising. However, this freedom is not absolute and can be subject to reasonable limits, such as restrictions on advertising. As long as the restrictions are justified and proportionate, they can be considered valid under the Charter. However, provincial and federal legislation may also apply, depending on the specific context of the advertising in question.

Question 2

Use this fact situation to answer the related questions that follow. A local furniture store advertised a specific lamp at a discount,knowing it only had a couple of lamps.When customers came into the store to buy the lamp,they were told that the lamps had sold out,but they could buy another similar lamp at the regular price.
In this case,the actions of the furniture store can be described as

Accepted Answer

The furniture store advertised a specific lamp at a discount, knowing they only had a few in stock, with the intention of luring customers in. Once customers arrived, the store informed them that the discounted lamp had sold out, but offered them a similar product at the regular price. This is an example of bait-and-switch advertising, which is illegal and considered deceptive marketing.

Question 3

Competitors can in fact enter into an agreement whereby each will discontinue producing a current product.If the efficiencies created for the market by this "specializing agreement" make up for any lessening of competition,the competitors may

Accepted Answer

Competitors can enter into a specializing agreement, but such an agreement may still be considered anti-competitive and therefore illegal. To ensure that the agreement does not violate competition laws, the competitors can apply to the Competition Tribunal for approval. If the tribunal determines that the agreement does not harm competition, the competitors can proceed with their plan to discontinue the product without fear of legal repercussions.

Question 4

The Competition Act creates a number of criminal offences punishable by fines and imprisonment.The Act prohibits competitors from entering into agreements that hurt competition in their industry which are generally described as conspiracies.Criminal conspiracies include all of the following except

Accepted Answer

Telemarketing is not related to competition or agreements that hurt competition, therefore it is not a criminal conspiracy under the Competition Act. The other options listed - price fixing, market allocation, restriction of supply, and sport professional restraint of play - are all examples of agreements that can be considered criminal conspiracies and are prohibited by the Act.

Question 5

A law that prohibits any form of association between two or more businesses is probably

Accepted Answer

The Charter of Rights and Freedoms guarantees the right to freedom of association, which includes the right of individuals to join together to form a group or organization, including businesses. Therefore, any law that prohibits such association would likely be found to be invalid under the Charter.

Question 6

John and Tony are brothers.They each own their own construction companies.They fiercely compete with one another for business.As a result of a call for tender by the local municipality to quote on certain road and sewer work,John and Tony decided to briefly discuss in advance of submitting their individual bids,a "reasonable range" of bids each should submit in response to the tender.Although neither one of the brothers believes they have committed any wrongdoing,they have in fact

Accepted Answer

John and Tony have engaged in bid-rigging, which is a violation of section 47 of the Competition Act. By discussing and agreeing on a "reasonable range" of bids, they have eliminated competition between themselves and artificially inflated the prices that the municipality will have to pay for the construction work. This behavior is considered anti-competitive and illegal under the Competition Act.

Question 7

Administrative bodies created by statute must provide a basic level of procedural fairness to those persons likely to be affected by any decision.At a minimum,procedural fairness includes all of the following except

Accepted Answer

Legal aid to those who cannot afford a lawyer is not considered a minimum requirement for procedural fairness. While it is desirable for administrative bodies to provide legal aid or assistance to persons in need, it is not a mandatory element of procedural fairness as defined by the law. The other options listed (A-D) are all elements of procedural fairness that administrative bodies must provide.

Question 8

Under contract law,a provision in the contract for restricting trade will be struck down by the court if it

Accepted Answer

A provision in a contract for restricting trade will only be upheld if it is reasonable and necessary to protect the legitimate business interests of the party seeking to enforce it. If it is found to unreasonably restrict competition, it will be struck down by the court.

Question 9

In Canada,agriculture and immigration are:

Accepted Answer

Agriculture and immigration fall under the shared jurisdiction of both the federal and provincial governments in Canada. While the federal government has overall responsibility for immigration, the provinces have some control over the selection of immigrants and some aspects of settlement services. Similarly, while agriculture is a federal responsibility, provincial governments have a role in areas such as land use planning and environmental regulation.

Question 10

Use the fact situation in Q8 to answer the related question that follows. In the fact situation above,the offence that the furniture store has committed is

Accepted Answer

The furniture store has committed a regulatory offence only, as it likely involves a breach of regulations or standards set by a governing body, rather than a criminal act.

Question 11

Bill and Ted are engaged in the business of selling bottled water.Bill's company operates in northern Ontario.Ted's company operates in southwestern Ontario.They are the main suppliers of bottled water in their respective areas.Ted decides to open a new office in northern Ontario in order to compete directly with Bill.Prior to the office opening,Bill and Ted bump into each other at a convention.They have a short discussion about business over dinner and agree orally that neither one of them will ever try and move into the other's existing territory.They shake hands and leave.The nature of the agreement entered into by Bill and Ted

Accepted Answer

The agreement between Bill and Ted constitutes a breach of section 45 of the Competition Act as it is an agreement between competitors to allocate markets, which is considered anti-competitive behavior. This type of agreement is commonly known as market allocation or territorial restriction. Such agreements prevent competition and harm consumers by limiting choice and raising prices.

Question 12

A large private nuclear facility began discharging radioactive water into the local lake whose waters were used to cool down the reactors.In this case,

Accepted Answer

Discharging radioactive water into a local lake likely violates environmental laws, making the company liable for fines (A). Directors and officers can potentially defend themselves by proving they exercised due diligence to prevent the violation (B, C). Since both the company and its directors/officers could be held responsible, all options are correct (D), leading to E as the comprehensive answer.

Question 13

Jack manufactures woollen winter sweaters,which are not selling very well in areas of Canada that have been warmer than usual.In order to improve his sales,George removes the tags from all of the sweaters identifying them as wool,and then sells them as summer sweaters.In this case,George has committed an offence under

Accepted Answer

George has removed the tags identifying the sweaters as wool and sold them as summer sweaters, which is a violation of the Textile Labelling Act that requires textile products to be labelled accurately to prevent false or misleading claims about their composition, performance or quality.

Question 14

At a convention of builders in Toronto,a proposal was adopted whereby whenever there was a call for tenders from the provincial government,members would check with each other before submitting their tenders to ensure that only the tenders of companies that needed the work would be accepted.This case is an example of

Accepted Answer

Bid-rigging is an illegal practice where bidders conspire or collude to determine the winner of a bidding process. In this case, members of the builders' convention are checking with each other before submitting their tenders to ensure that only the tenders of companies that need the work are accepted. This means that they are essentially colluding to limit competition and determine the winning bidder, which is a form of bid-rigging.

Question 15

A is a student at a local university found guilty of plagiarism under the rules of the university senate.A's case was heard by a panel of professors created under the rules,who did not allow A to defend himself or to be represented by counsel.In this case,on a judicial review hearing of the matter,

Accepted Answer

The answer of A is a student at a local...

Question 16

Carla owns Nifftee Dry Cleaners.If she is guilty of misleading advertising,who is the most likely to report her?

Accepted Answer

The answer of Carla owns Nifftee Dry Cleaners.If she is...

Question 17

Regarding government regulations,a distinction is sometimes made between direct regulation and social regulation.Which of the following would be a social regulation?

Accepted Answer

Standards of safety at amusement parks would be considered a social regulation as it is focused on promoting public safety and welfare, rather than directly controlling economic activity. The other options listed are more directly related to economic regulation.

Question 18

A provincial government is attempting to determine which of three sites in the province might be used to dispose of hazardous waste.In furtherance of this determination,representatives of local municipal governments where the sites are located meet with the provincial environment minister.During the meeting,the largest local municipal government advises the minister that if the site in their area is not chosen,it will ensure that its entire population will vote for the minister in the next provincial election and will contribute heavily to his campaign.A few weeks later,a different site is chosen.In this case,the largest local municipal government

Accepted Answer

The answer of A provincial government is attempting to determine...

Question 19

The term or phrase used to describe an area in which both the federal and provincial governments have jurisdiction is

Accepted Answer

This term describes a situation where both the federal and provincial governments have the legal authority to make and enforce laws in a particular area. Examples of areas of concurrent jurisdiction include agriculture, immigration, and the environment.

Question 20

Edward is an arbitrator appointed under the Arbitration Act.Procedure under the Act is set out in another statute,which makes it mandatory that arbitration briefs be filed by each party to the arbitration.In an arbitration hearing held yesterday,only one party was permitted to file an arbitration brief,but Edward decided that the other brief was unnecessary and rendered his decision.On a judicial review hearing of Edward's decision,

Accepted Answer

The procedure set out in the statute requires both parties to file an arbitration brief, and Edward's decision to allow only one party to do so amounts to a procedural irregularity. Therefore, the decision will be set aside on judicial review.

Quiz 3: Government Regulation of Business