Chapter 9

1. Canada does not impose restrictions on licence agreements granting exclusivity in relation to products or territory, unlike the EU, the US and other jurisdictions.

a) True

b) False

2. Franchising nearly always involves significant transfer of intellectual property such as a patent or transfer of technology.

a) True

b) False

3. It is important to draft a Request for Proposal (RFP) carefully before presenting it to a potential outsourcer in Canada because (in the absence of special provisions) our law provides that the RFP cannot be substantially altered after responses are received.

a) True

b) False

4. In an agency agreement, the agent does not normally buy or sell on his or her own account.

a) True

b) False Question

5. In a distributorship, it is common for the distributor to be compensated by a commission on all its sales of the relevant product.

a) True

b) False

6. An agent has a duty to place the principals interests first in all transactions subject to the agency agreement.

a) True

b) False