Question 1

Approaching the operation of a business with an unethical perspective combined with a lack of respect for adherence to and enforcement of the law eventually should result in which of the following outcomes?

Accepted Answer

Operating a business with an unethical perspective and a disregard for the law can lead to negative consequences, such as legal issues, loss of customers and reputation, and ultimately the failure of the business.

Question 2

Canadian law provides that business owners may discriminate in hiring practices and may ignore the laws of other countries; however,they must comply with the health and safety regulations governing the workplace.

Accepted Answer

Canadian law prohibits discrimination in hiring based on certain protected grounds such as race, gender, and religion. Additionally, Canadian businesses operating in foreign countries must abide by the laws of those countries. However, it is true that all Canadian businesses must comply with health and safety regulations in the workplace.

Question 3

A stockbroker who is employed by a large Canadian banking institution and charged with theft and commercial fraud of a number of the bank's customers could be prosecuted under the Criminal Code of Canada and,if found guilty,sued in a civil court for damages.

Accepted Answer

This statement is true. The stockbroker could face criminal charges under the Criminal Code of Canada for theft and commercial fraud, and could also be sued in a civil court for damages by the bank's affected customers.

Question 4

Hiring a company's accounting auditors to act as the business's accounting compliance consultants is an example of which of the following ethical infractions?

Accepted Answer

Hiring a company's accounting auditors to act as the business's accounting compliance consultants creates a conflict of interest. The auditors may be tempted to overlook or downplay any compliance issues in order to maintain a positive relationship with the company and avoid losing future audit work. This compromises their independence and objectivity, which are key ethical principles for auditors.

Question 5

Canadian business law consists of a set of established bilingual rules governing commercial relationships that exclude enforcement of rights.

Accepted Answer

Canadian business law includes the enforcement of rights, such as contracts and intellectual property.

Question 6

Which of the following is an example of the values represented in the Canadian legal system?

Accepted Answer

The Canadian legal system values justice and fair outcomes. It is not impartial or limited in its pursuit of fairness and subjectivity.

Question 7

Contract law refers to a collection of rules used to establish contracts as binding agreements between contracting parties and to ensure their obligations can be legally enforced.

Accepted Answer

Contract law is a set of legal principles and rules that guide the creation and enforcement of contracts between two or more parties. This area of law establishes the requirements for entering into a contract, the terms and conditions of the agreement, and the consequences of breaching the contract. The purpose of contract law is to provide a framework for parties to enter into agreements with confidence that their rights and obligations will be respected and enforced by the legal system.

Question 8

Which of the following best describes the nature of the mediation process?

Accepted Answer

The nature of the mediation process involves a negotiated resolution with the assistance of a neutral third party. It is not about submission to litigation, binding arbitration, or renegotiation with a judge.

Question 9

Which of the following best exemplifies a protective element of Canadian law?

Accepted Answer

Making those who break the law accountable is a key aspect of protecting citizens and deterring criminal behavior. The other options do not provide a clear protective element.

Question 10

Litigation directly involves lawyers,judges,and the court system because it is the process one person or a business must use to sue another.

Accepted Answer

Litigation involves legal action and therefore requires the involvement of lawyers, judges, and the court system.

Question 11

The creation of complexity in business relationships is one of the most important contributions the law can make to the commercial arena.

Accepted Answer

The answer of The creation of complexity in business relationships...

Question 12

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.

Accepted Answer

While Canadian law does require that disputes be resolved fairly, there are different types of dispute resolution procedures that may not involve a judge and may not require a determination of the amount of loss. Additionally, even in cases where a judge does make a decision about a specific amount of loss, it does not necessarily guarantee that hard feelings between parties will be prevented or that the business relationship can continue.

Question 13

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.

Accepted Answer

Litigation is a legal process involving the court system to resolve disputes, not negotiations aided by a neutral party; that description fits mediation or arbitration.

Question 14

Recent events involving fraud on the public in Canada confirmed that failure to comply with the obligation to abide by the law can lead to severe consequences for business enterprises,including financial penalties and criminal prosecution.

Accepted Answer

The statement is true and accurately reflects the consequences of not complying with the law in Canada.

Question 15

Which of the following best describes the goal of the Canadian legal system?

Accepted Answer

The goal of the Canadian legal system is to facilitate justice. While facilitating commerce, arbitration, and free trade may be beneficial outcomes of the legal system, they are not the ultimate goal. The primary purpose of the legal system is to ensure that justice is served and that individuals are held accountable for their actions.

Question 16

Which of the following is an example of how business law guides business conduct?

Accepted Answer

Business law sets rules and penalties that encourage companies to comply with legal requirements and ethical standards. By doing so, it guides business conduct and ensures fairness and transparency in the marketplace. The law also provides the framework for resolving disputes and enforcing contracts, which further encourages responsible behavior. Options B, C, and D are not accurate examples of how business law guides business conduct.

Question 17

Jack and Jill recently agreed to sell their business to Evergreen Solutions Inc.Evergreen's lawyer suggested he can represent both Jack and Jill and Evergreen to reduce the legal cost of the deal.Which of the following correctly identifies the position the lawyer would be in if he acts as counsel for both business parties in this transaction?

Accepted Answer

If the lawyer represents both Jack and Jill and Evergreen in the same transaction, they will be in a conflict of interest. This means that the lawyer may prioritize the interests of one party over the other, failing to give unbiased advice and representation. It could also put the lawyer in a position where they have access to confidential information that they could use to benefit one party over the other, which would be a breach of ethics. Therefore, it is not a recommended practice for a lawyer to represent both parties in the same transaction.

Question 18

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.

Accepted Answer

Canada's established laws for business relationships and property protection make it an attractive commercial environment for entrepreneurs.

Question 19

Which of the following would be classified as the standard forms of business structures available to entrepreneurs to facilitate creation of a for-profit business enterprise?

Accepted Answer

The standard forms of business structures available to entrepreneurs to facilitate creation of a for-profit business enterprise include sole proprietorship, partnership, and corporation. Therefore, option B, which lists these three options, is the correct answer. Option A is incorrect as it lists "sole owner" instead of "sole proprietor." Option C has the same issue as option A, listing "sole partnership" instead of "partnership." Option D is also incorrect as it only lists "sole owner" and "proprietorship," leaving out partnership as a standard form of business structure.

Question 20

Which of the following types of law is the vehicle for ensuring that those affected by a failed business are treated fairly,reasonably,and in accordance with agreed rules?

Accepted Answer

Bankruptcy law is designed to provide a fair and orderly process for businesses and individuals to resolve their financial problems. It ensures that creditors are treated fairly, assets are distributed equitably, and debtors are granted the opportunity to discharge or reorganize their debts according to agreed-upon rules.

Quiz 1: Knowledge of Law as a Business Asset