Question 1

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 2

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 3

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

Accepted Answer

If a corporation is consistently missing payments to its creditors, it is a strong indicator that the corporation is unable to meet its financial obligations and may be insolvent.

Question 4

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 5

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 there is no defense available even if the accused took all reasonable care. Therefore, option D is the correct choice.

Question 6

In Canada,the jurisdiction over the securities industry is

Accepted Answer

In Canada, the regulation of the securities industry is primarily within the jurisdiction of provincial and territorial governments, rather than the federal government. Each province and territory has its own securities regulator to oversee the industry within its borders.

Question 7

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 8

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 legal liability of those who sell shares in a company when there is false or misleading information about the company's current state, and that information has not been corrected. This can apply to both individuals and institutional investors who sell the shares on the open market.

Question 9

Schemes of government regulation resemble traditional criminal law because

Accepted Answer

Schemes of government regulations and traditional criminal law share the characteristic of prohibiting certain types of conduct and punishing those who violate the prohibition. While traditional criminal law typically involves punishment by imprisonment and proving mens rea, this is not necessarily the case with government regulation. Damage done through committing a tort is not necessarily involved, and enforcement is not always done by the RCMP. Thus, E is the most appropriate answer.

Question 10

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 11

When it is unlawful to declare dividends because of a deficiency in the capital fund and yet the shareholders want a quick pay-out,then

Accepted Answer

If it is unlawful to declare dividends due to a deficiency in the capital fund, the corporation needs to earn enough profits to restore the deficiency before issuing any dividend payments. This approach ensures that the corporation is in compliance with the law and that the long-term financial health of the company is not compromised. Option A is not applicable as it doesn't address the capital deficiency issue. Option C may not be feasible if shareholders are unwilling to lend money to the corporation or if the interest payments reduce the net profits. Option D is not advisable as it may result in the dilution of shareholder's equity. Option E is not a viable solution as wages are a regular expense of the corporation and not a substitute for dividends.

Question 12

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

Accepted Answer

All of the above choices are possible punishments under criminal law for corporations, depending on the severity of the offense committed. Heavy fines on the corporation itself, imprisonment of the directors, finding the "directing mind" behind the offense and fining and/or imprisoning this person, and even dissolving the corporation are all potential forms of punishment that can be imposed on corporations.

Question 13

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 14

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 usually depends on the specific circumstances and actions of the corporation.

Question 15

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 16

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 17

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 the written contract that one is entering into the contract on behalf of a company to be incorporated is not enough to escape personal liability. The company must be properly incorporated and authorized to enter into contracts before the party can escape personal liability.

Question 18

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 pertains to the sale of goods and does not contain any provisions related to the protection of employees. The other options listed - occupational health and safety legislation, human rights legislation, employment standards legislation, and workplace safety legislation - all contain provisions relating to the protection of employees.

Question 19

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

It is the responsibility of the company to ensure that their employees are well trained and their workplace is safe according to occupational health and safety legislation. Failure to do so is an offence.

Question 20

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

Accepted Answer

Directors should take an active role in educating themselves about their business's activities and risks, including potential environmental problems. Hiring knowledgeable individuals to assist in these efforts is important, but ultimate responsibility rests with the leadership of the organization.

Quiz 27: Corporate Governance: External Responsibilities