Question 1

Lamda Inc recently decided to use "in- house counsel." What does that phrase mean? Explain the advantages and disadvantages of the company's decision.

Accepted Answer

The answer of Lamda Inc recently decided to use "in-...

Question 2

Paul has committed a legal wrong against Buckmaster Strings Inc. Depending upon the circumstances, it may be possible for legal proceedings to be taken against Paul in both criminal law and tort law.

Accepted Answer

Depending on the circumstances, Paul's actions could be considered a criminal offense and a tort, allowing for legal action to be taken against him in both criminal and tort law.

Question 3

Is it easy or difficult to change the Constitution? What is the policy that underlies the correct answer to that question? Who must agree before the Constitution can be changed?

Accepted Answer

The answer of Is it easy or difficult to change...

Question 4

Betta Inc has recently discovered that a defect in one of its products poses a risk of injury to consumers. Its only option, from a risk management perspective, is to eliminate the risk of liability by removing the product from the market.

Accepted Answer

Risk management offers various strategies, including risk avoidance, reduction, transfer, or acceptance. Removing the product is one option, but not the only one.

Question 5

What is the residual power? What is meant by the phrase "ultra vires"? How are those two concepts related to the notion of federalism?

Accepted Answer

The answer of What is the residual power? What is...

Question 6

A bill to amend a business corporations statute was introduced in the House of Commons. The statute in question must be a piece of federal legislation, as opposed to provincial legislation.

Accepted Answer

The House of Commons is part of the federal government of Canada, therefore any statute being introduced in the House of Commons would be a federal piece of legislation. Provincial legislatures have their own separate and distinct legislatures.

Question 7

Because of the need to ensure that the fundamental rules for governing the country are kept up to date, the Constitution (unlike most statutes) is quite easily amended.

Accepted Answer

The answer of Because of the need to ensure that...

Question 8

Sabeka Inc has discovered that one of its products may cause consumers to suffer a certain form of property damage. In response to that risk, the company has written an exclusion clause into its sales contracts. In doing so, it has adopted a form of risk management known as risk shifting.

Accepted Answer

The adoption of an exclusion clause in the sales contracts is a form of risk shifting, where the company shifts the risk of property damage to the consumers purchasing the product.

Question 9

Quebec is said to be a "civil law system" because it is derived from the legal system that governed the citizens of ancient Greece.

Accepted Answer

Quebec's civil law system is derived from the Napoleonic Code, which was created in France in the 19th century. It is not derived from the legal system of ancient Greece.

Question 10

Howard is a manager with Rogue Used Cars Inc. He and the company have both misbehaved. The police have laid charges concerning a white collar crime and a corporate crime. Describe the differences between those two types of crimes.

Accepted Answer

The answer of Howard is a manager with Rogue Used...

Question 11

"Administrative law" derives its name from the fact that it is concerned with the administration of the trial courts and appellate courts.

Accepted Answer

Administrative law is concerned with the administration of government agencies, not the administration of the courts.

Question 12

Glimmer Co recently received a tax assessment with which it disagrees. It does not believe that it should be required to pay the full amount of the demand. If it challenges the assessment, the case will fall into the category of "public law" even though the company is a private corporation.

Accepted Answer

Tax assessment cases fall under public law as they are related to the government's exercise of power and authority. Therefore, even if the disputing party is a private corporation like Glimmer Co, the case will still be categorized as public law.

Question 13

Kane Media Inc wants to start a new radio station. The government has refused to grant a licence. Kane Media Inc believes that the government's position is blatantly discriminatory. Nevertheless, it cannot rely on the Charter of Rights and Freedoms, which was intended to protect the fundamental rights and freedoms of people, and which does not apply in favour of companies.

Accepted Answer

The answer of Kane Media Inc wants to start a...

Question 14

Quiet Corner Bookstore is something of a landmark. It was opened in 1908 and it has long served the needs of the community. The store's popularity is based not only on its reputation for excellent service, but also on the fact that it has always been run by members of the same family: the Meyers clan. In an age of increasingly anonymous chain stores, customers appreciate the personal touch that they receive at the Quiet Corner. Recently, however, the government has announced that it intends to expropriate the land upon which the store is located in order to build a highway through the neighbourhood. The Meyers family may, however, be able to defeat that plan, and save their store, by relying on a provision of the Charter that protects cherished property.

Accepted Answer

The question mentions a provision of the Charter that protects cherished property, but it does not specify which charter or country's charter is being referred to. Therefore, it is not possible to determine the accuracy of the statement.

Question 15

Athlone Inc wants to start a new television channel. To do so, it requires a government licence. It should apply to the federal government, rather than the provincial government, because the issue of telecommunications is not mentioned in the Constitution. It therefore falls under federal jurisdiction because of the residual clause.

Accepted Answer

Yes, this statement is true. The issue of telecommunications is not mentioned in the provincial powers nor in the federal powers of the Constitution. Therefore, it falls under federal jurisdiction due to the residual clause, which grants the federal government authority over matters that are not explicitly assigned to the provinces.

Question 16

A judge recently decided a Charter case that involved the government on one side and a corporation on the other. After that decision was released, one of the parties indicated its intention to use the "notwithstanding clause." What is the effect of that clause? Who is entitled to use it?

Accepted Answer

The answer of A judge recently decided a Charter case...

Question 17

The law can affect a business both positively and negatively. It often prohibits actions that otherwise would be possible. However, it sometimes permits parties to do something that they could not otherwise do.

Accepted Answer

The statement correctly describes how the law can have both positive and negative effects on a business. It can restrict certain actions but also provide opportunities that would not be possible without legal frameworks.

Question 18

As described in the text, the four forms of risk management are risk avoidance, risk elimination, risk transfer, and risk acceptance.

Accepted Answer

The answer of As described in the text, the four...

Question 19

Bianca punched Mick. She now finds herself in court. The person arguing the case against her is Mick himself. It is safe to assume that the court is concerned with a private law issue, rather than a criminal law issue.

Accepted Answer

In private law, individuals can represent themselves in civil cases, such as personal injury claims, whereas in criminal law, the state prosecutes the accused.

Question 20

Jahume Ltd operates as an Internet service provider. It has retained Alison to work as in- house counsel. Following an increasingly common trend, that means that she will work for the company from her own home, rather than from a traditional law firm office.

Accepted Answer

The answer of Jahume Ltd operates as an Internet service...

Quiz 1: Risk Management and Sources of Law