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business law legal environment
Questions and Answers of
Business Law Legal Environment
Distinguish between a partnership and a corporation.
Which of the following statements is correct with respect to the Partnership Act?a. The Partnership Act always overrides any provisions contrary to it set out by the partners in the partnership
Mortimer was a partner in a law firm and acted as the executor for the estate of Mrs. Amy Cooper. When she died, he distributed the proceeds of the estate to a series of beneficiaries. He also stole
A corporation is considered a legal entity, separate and apart from the shareholders who make it up. This is a myth or fiction and has no basis in reality. Most of the unique characteristics of
Explain any limitation on the liability one partner has for another partner’s actions.
Which of the following statements is correct with respect to partnership?a. Partnership involves 2 or more persons carrying on business with a view towards profits.b. Partnerships involve limited
Hussain and Hingora operated the Papaya Market and they entered into a “letter of understanding” with Red Burrito, the operator of several restaurants in the Vancouver area to convert the market
What factors will indicate the existence of a partnership?
Describe the nature of a partnership, the purpose and effect of the Partnership Act, and the effect a partnership agreement can have on the relationship between the parties as set out in that statute.
Joe had worked for Sam’s Manufacturing Company for ten years when Sam came up to him one day because he lost a major contract, he had no work for him to do, and he was fired as of that time.
Distinguish between actual, apparent and implied authority.
With respect to duties owed by an agent to his principal, which of the following statements is false with regard to agency law?a. Generally, an agent may not delegate his authority without the
Explain what is meant by ratification, how ratification may arise, and its effect on the contracting parties.
Do you feel that unions have too much power today? Look at the legislation in place in your jurisdiction and discuss whether it accomplishes a balanced approach between the needs of employees and
IT/NET Inc. did consulting work for various government departments. The practice was for such government departments to publish a request for proposals (RFP) and the consultant company would respond
Chris was a systems analyst hired to ascertain the best system for a retail china shop. After a careful analysis of the shop’s needs and the available software, Chris presented a written report,
What conditions must be met first before the employees can go out on strike?
Explain under what circumstances a principal will be responsible for the wrongful acts committed by an agent who is an employee, and an agent who is an independent contractor.
Mrs. Fisher had worked for Lakeland for 15 years when she turned 65 in 2002. She asked and received assurance that she could work for the company for as long as she wanted. In 2003 she was required
Which of the following statements is correct with respect to the employer’s liability for the conduct of the employee?a. The employer is always liable for the wrongful conduct of his
Once a picket line is properly set up, no one can cross it. Explain the accuracy of that statement.
Explain what is meant by an undisclosed principal. What options are available to a third party when an agent acts for such an undisclosed principal?
Employees lawfully on strike at one Kmart department store decided to pass out leaflet at another Kmart location. This was determined to be secondary picketing, which was prohibited in British
Which of the following would end the employment relationship by breach thus giving rise to a claim for damages for wrongful dismissal?a. The employee is told he will no longer be needed at the end of
Explain under what circumstances a principal can be held liable for torts committed by an agent.
Explain the nature of an agent’s obligations to the principal, and what is meant by fiduciary duty.
Kelly had worked for Linamar Corp. for 14 years. The company was the largest employer in the town and had a reputation as a good corporate citizen. He was working as a materials manager supervising
Eastside Nurseries Ltd., which had long been a family business, was faced with a demand by its workers that it recognize their new organization, a union, for the purposes of collective bargaining.
Explain how the principle of estoppel can be important in an agency relationship.
Joe was a salesman, newly hired by Radio Hut, and on his first day on the job, he was left in charge of the store while the manager and the other salesmen went to lunch. They specifically told him
Define employment and distinguish between the control test and the organization test.
Which of the following statements is correct with respect to the operation of the collective agreement?a. All disputes arising out of the enforcement of the collective agreement must be handled by
Explain what is meant by an agent’s fiduciary duty to the principal.
Explain under what circumstances an employer will be vicariously liable for the torts committed by an employee and bound by contracts entered into by an employee.
For the past seven years, Hudson has worked as vice-president in charge of personnel (a non-union position) for Mountain Enterprises Ltd. As part of a corporate reorganization, the directors of the
Explain what is meant by an undisclosed principal and the significance of such a relationship.
Explain how the employment relationship may be terminated. In the absence of contractual provisions, how much notice is required? Include a discussion of constructive dismissal and what effect that
Define just cause. Give examples, and explain what effect it has on the requirement of notice.
What are an employer’s obligations with respect to disabled workers?
How are damages assessed in a wrongful dismissal action, and how is that award affected by bad faith on the part of the employer or an employee’s failure to mitigate?
Explain the employee’s obligations with respect to notice to quit, fiduciary duty and confidential information.
Describe the certification process in your jurisdiction.
Distinguish between recognition, jurisdiction, interest and rights disputes. Indicate how each of these types of deputes must be resolved.
Explain what is meant by unfair labour practices and how they are dealt with in Canadian law.
Explain what is meant by the obligation for the parties to bargain in good faith and the role mediation plays in the collective bargaining process.
Distinguish between a strike and a lockout, and indicate how much notice must be given and any other restrictions or requirements on strike or lockout in your jurisdictions.
What is meant by picketing? Why is it so effective and what limitations on the right to picket are there in your jurisdiction?
Explain what is meant by a union shop, a closed shop, and the right of “check off.”
Explain the purpose and effect of workers’ compensation legislation, occupational health and safety statutes, employment insurance statutes, and human rights statutes with respect to employment.
List the standards imposed by employment standards statutes in your jurisdictions.
Describe effective strategies to avoid or deal with unlawful and inappropriate behaviours by employees.
What dangers does a business face with respect to the investigation and enforcement aspects of employee crime?
Why is it so important to take care in choosing the method used to carry on a business?
One of the great advantages of a corporation over a partnership is the limited liability of the shareholder investors. If the business runs into trouble, the debts are the corporation’s rather than
Mr. Price originally operated “Fins, Furs and Feathers” as a sole proprietor but neglected to register the change under the Partnerships and Business Names Registration Act when he incorporated
Which one of the following statements is incorrect with respect to sole proprietorships?a. The sole proprietor has unlimited liability.b. The sole proprietor must adhere to licensing and government
Explain the liability of a partner for another partner’s actions.
Explain the nature of a sole proprietorship and the liability of a sole proprietor. Why do professionals often do business in this way?
It is possible to be in partnership with someone else without knowing it, simply by getting into some sort of cooperative business venture. The burdens associated with partnership, especially
The plaintiffs contracted with Donna Gabbs, a real estate agent, to sell their home. They made it clear to Ms. Gabbs that they needed $137 000 from the sale to pay off their debts. The house was
Employers are held vicariously liable for torts committed by their employees in the course of their employment. Some have questioned the fairness of this process, since it is the employee who is
Distinguish between independent contractors, dependant contractors, employees, and agents. Explain why that distinction is important.
Although Jason had participated in the flower auction for the last nine years as an agent for Thomas Holt Ltd. (Holt) with the authority to buy whatever he felt the store needed, this day he was
The plaintiffs wanted some short-term investments and turned to Mr. Demmers, who had looked after their pension fund and insurance matters as a representative of Manulife. He persuaded them to invest
A principal who enters into a contract that specifically limits the agent’s authority to act still faces the possibility of being bound by acts the agent performs outside that actual authority.
Explain why the topics of agency and employment are important with respect to the study of business law.
Explain the difference between the provisions of the Division One and Division Two proposals.
Explain the effect of a discharge on the bankrupt.
Explain the positions of secured, preferred, and unsecured creditors in the event of a bankruptcy.
Distinguish between an act of bankruptcy and a bankruptcy offense.
Distinguish between insolvency and bankruptcy; between an assignment and a receiving order; and explain the role of a trustee in bankruptcy.
Explain the position of a guarantor with respect to the debtor’s obligations and how those obligations are affected by subsequent dealings between the parties.
Distinguish between an indemnity and a guarantee.
Explain the significance of a holdback under the builders’ liens or construction lien statutes.
Describe the rights of the creditor when there is a default under the Personal Property Security Act. What must the creditor do to protect his or her right to sue for a deficit?
Distinguish between attachment and perfection, and describe how perfection can be accomplished.
Explain what is meant by a secured transaction, indicating the special position of the creditor. Who holds title under the Personal Property Security Act.
Indicate other federal statutes that have a consumer protection aspect to them.
What kinds of matters are reviewable by the Competition Tribunal? What is the purpose of such a review?
List and explain five deceptive marketing practices, and explain how they are treated differently from offences against competition.
Explain what is meant by bid rigging, double ticketing, and predatory pricing.
Explain the purpose of the federal Competition Act, and list five competition offenses.
Explain who is an insider, what controls are placed on them and why.
Explain two methods for a debtor becoming bankrupt.
Explain the purpose of a prospectus, how it is issued and what must be included.
Owen borrowed money from a credit union, guaranteed by his father, to buy a car. The credit union also registered a security interest under the Personal Property Security Act against the vehicle.
Which one of the following statements about the Personal Property Security Act is false?a. This legislation applies to all present and future transactions (whatever form they might take) where
Explain what is meant by a cooling-off period and explain how pyramid and referral selling schemes are controlled under consumer protection legislation.
Distinguish between attachment and perfection under the Personal Property Security Act.
Identify the one factor not required with respect to the attachment and perfection of a secured creditor's security interest.a. The creditor must either have registered the interest or have taken
Describe the abusive business practices that are controlled by trade practices or business practices acts. Describe how the statutes’ provisions are enforced.
Explain the primary purpose of the Personal Property Security Act.
Discuss the nature of limitation or exemption clauses and their effect on the provisions of the Sale of Goods Act.
Your brother wants to borrow $8,000 from the Bank of Britannia and has asked if you would guarantee the loan. You have been told the following with regard to guarantees. Which of the following
Explain three significant contributions of the Federal Competition Act.
With regard to bankruptcy and debt collection, which of the following is false?a. The Bankruptcy and Insolvency Act provides for a procedure for an insolvent debtor to make a proposal to his
Mehrabian traded in a Toyota 4Runner on a new Subaru Legacy, receiving a $14 000 credit. It turned out later that the 4Runner was stolen. This action is brought by the automobile dealer (Jen-Zam) to
Consider the bankruptcy process. It seems to be inconsistent with every principle of fundamental contract law and commercial relations. Is it fair to the creditors and to the debtor? What about
Explain the obligations imposed on a seller with respect to title, sale by sample and description, fitness and quality, and merchantable quality.
Explain what kind of protection is provided by the Trade Practices Act (Unfair Practices Act, Business Practices Act depending on the jurisdiction).
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