1. If a preliminary bargaining statement will affect the decision of the other p
ID: 380907 • Letter: 1
Question
1. If a preliminary bargaining statement will affect the decision of the other party, then it is said to be_______ to the contract.
A. Subject
B. tangible
C. consequential
D. material
E. None of the aboves.
2. A party to a contract cannot choose to trust a breach of contract as discharging her from obligations under a contract UNLESS:
A. The breaching party has done everything required in the contract.
B. The breaching party suffers financial hardship and prefer not to fulfill the contract.
C. The contract is for services only.
D. The breach causes physical injury.
E. the breach is for the whole contract or an essential part of the contract
3. An exemption clause in a contract can protect a party from liability for:
A.damages.
B.negligence.
C.deliberate acts of employees.
D. Breach of contract.
E. All of the above.
4. Which of the following is not true about breach of contract.
A.not every breach may discharge a contract.
B. If a breach is of a minor term, the contract is still binding on both parties.
C. A party to a contract may breach it by acting in a way that makes performance impossible.
D. The party committing the breach may choose to discharge the contract.
E. A major term may be broken but only in a minor way.
5. Don’s building is insured by Ateo Insurance co. Under a standard policy covering all loss by fire. Don’s business is not doing well. Don thinks that if his building is destroyed by fire he can put part of the insurance proceeds into his business to keep it running. Don starts a fire in his building which destroys it. In this case:
A. The insurance company is bound to pay the proceeds of insurance to Don.
B. The insurance company is not bound to pay the proceeds of insurance to Don but must pay it to Don’s family.
C. The insurance company is not bound to pay the insurance proceeds at all.
D. The insurance company is bound to pay the insurance proceeds to Don’s business.
E. None of the above.
6. Paul wants to obtain life insurance for himself and contacts his insurance agent, who arranges the policy with and insurance company. A few days later, the insurance policy is issued and then it is delivered to Paul, but it requires him to pay the first premium, which he does. In this case, the contract is made:
A. When Paul pays the first premium.
B. When Paul pays the first premium after the insurance policy is delivered to him.
C. When the insurance agent arranges the policy with the insurance company.
D. When Paul contacts his insurance agent.
E. When the insurance company issues the policy.
7. Key West Bank would not give Tony a business loan without a suitable guarantor. Tony’s father, Glen, signed the loan documents as a guarantor. Glen must make the loan payment when:
a. The bank requests his payments
b. He is notified in writing by the creditor
c. He is notified in writing by the debtor
d. Tony requests that he make the payments
e. Tony default
8. Stuart is employed by a large construction company and is in charge of purchasing all of the company’s building supplies. When stuart enters into contracts for the company with its suppliers he is:
a. Both an agent and an employee of the company
b. An independent contractor
c. An employee of the company
d. An agent of the company
e. All of above
9. Henry is a carpenter by trade who has his own tools and his own truck. Henry often does jobs for a construction company and after each job provides the company with an invoice for the work he has performed. Henry is:
a. Both an agent of the company and an independent contractor
b. An employee of the company
c. An independent contractor
d. An agent of the company
e. Both an agent and an employee of the company
10. Greg has a contract of employment with Bright Ideas, a research company , for a term of three years. It has a confidentiality clause pertaining to anything related to the business of the company. Facing financial hardship at the begining of his 3rd year with Bright Ideas, Greg decides to sell one of the company’s new designs to a competitor for $200,000. Bright Ideas finds out and fires him. In this case:
A. The company has properly dismissed Greg because the three-year period of employment is at an end.
B. The company has wrongfully dismissed Greg.
C. The company has properly dismissed Greg for breach of the confidentiality clause in his employment contract.
D. The company has constructively dismissed Greg.
E. The company has improperly dismissed Greg because it gave him no notice.
11. When an employer has hired an employee for a specified period and the time has elapsed, what must be done?
A. The employee is required to provide the employer with two months’ notice.
B. The employee is required to provide the employer with reasonable notice.
C. The employee is not required to give notice because the employment period defined in the contract has ended.
D. The employer is required to provide the employee with two months’ notice.
E. The employee is required to apply to a court to terminate the agreement.
12. Which of the following is NOT relevant in determining how much notice is reasonable in wrongful dismissal?
A. The age of the employee
B. the economic situation of the employer
C. The length of service of the employee
D. The employee’s special expertise and training.
E. The possibilities the employee has for re-employment.
13. Incompetence, disobedience and misconduct justify ending a contract of employment of breach, but illness justifies an ending of the contract of employment for:
a. Duress
b. Misrepresentation
c. Frustration
d. Mistake
e. Breach
14. Collective bargaining is:
a. The process of establishing conditions of employment by negotiation between an employer and the bargaining agent for its employees
b. Bargaining between employees
c. Bargaining between employers
d. Bargaining between employers and employees
e. Bargaining between certain employees and the employer
15. Damages for wrongful dismissal are:
a. The amount of money that is equivalent to two months’ salary
b. The amount of money that is equivalent to six months’ salary plus all benefits
c. The amount of money that will compensate the employee for pain and suffering
d. The amount of money that will compensate the employee for their lost salary
e. The amount of money that will compensate the employee for failure to receive the required notice of termination and for those financial consequences
16. Bert and Ernie enter into a lease for property owned by Bert for a term of four years commencing April 1, 2009, and ending March 31, 2013. In this case, the lease creates:
a. A periodic tenancy
b. A tenancy at will
c. A license
d. A tenancy for a fixed or certain term
e. A tenancy at sufferance
17. The landlord’s covenant of quiet enjoyment means that:
A. The landlord cannot do anything to interfere with the tenant’s possession and use of the premises.
B. The tenant will not bring other persons onto the premises.
C. The landlord will not make excessive noise that could interfere with the right of the tenant to peace and quiet.
D. The tenant will not make excessive noise that could disturb others. Including the landlord and other tenants.
E. The tenant will not disturb other tenants.
18. The right of the landlord to seize the assets of the tenant and sell them to realize the arrears of rent is called.
A. Forfeiture.
B. Distress.
C. Surrender.
D. Re-entry.
E. Termination.
19. A financial arrangement that enables a business to purchase an office building and sell it to a financial institution, which, in turn gives that business a long-term lease of the property back to the business is called:
A. A saleback.
B. A leaseback.
C. A mortgageback.
D. A loanback.
E. A purchaseback.
20. Objects that are attached to a building but are separate from the land itself are called:
A. Chattels
B. . Accessories.
C. Additions to land.
D. Fixtures.
E. Fixings.
21. Alex and Breanna incorporate a trucking company in which, of the 100 issued common shares, Alex holds 45 shares and Breanna holds the rest. The company has a fleet of trucks valued at $200,000. In this case, the fleet of trucks is owned by
A. Alex alone.
B. Breanna alone.
C. Alex, Breanna and the company.
D. The company alone.
E. Both Alex and Breanna.
22. Megacon Ltd. Is a large private Saskatchewan construction company in which Albert, John and Michael are the shareholders and George, Mary and Sam are the directors. Recently, Albert and John started up a building supplies business, which now has a contract to provide building supplies to Megacon Ltd. However, Michael objects to this , in this situation:
A. Michael is not correct in objecting because Albert and John have no fiduciary duty to Megacon Ltd.
B. Michael is correct in objecting because Albert and John are shareholders in Megacon Ltd.
C. Michael is correct in objecting because Albert and John have a fiduciary duty to Megacon Ltd.
D. Michael is not correct in objecing because Albert and John have a duty of good faith to Megacon Ltd.
E. None of the above.
23. George, john, Edward, and Mary each own 25% of the common shares of a private company that they incorporated five years ago. At that time, they decided that they did not need a shareholders’ agreement. Now there has been falling out between them and the three men have used their majority vote to take away Mary’s salary, terminate her employment with the company, and remove her as a director and officer of the company.
In this case, Mary can bring the following court action:
a. A derivative action
b. An oppression remedy
c. The appraisal remedy
d. Winding up the company
e. All of above
24. The CEO of a corporation is:
a. Chosen from the board of directors
b. Appointed or hired by the board of directors
c. Hired by the president
d. In charge of the board meetings
e. Elected by the shareholders
25. A director will be criminally liable where she or he:
a. Uses corporate information to make personal profit
b. Acts as corporate agent to the determent of the corporation
c. Gets involved with insider trading
d. Intercepts a corporate opportunity
e. Directly competes with the corporation in her or his own business
26. To ensure the accuracy of financial statements, business corporation legislation provides for the appointment of an independent_____ by the shareholders.
a. Accountant
b. Chief financial officer
c. Ombudsperson
d. Auditor
e. Chartered accountant
27. Which of the following is NOT a duty of the directors of corporations?
a. to adopt by-laws governing the business
b. to issue shares
c. to call meeting of shareholders
d. to take care of the day-to-day business of the corporation
e. to declare dividends
28. Directors owe duties to:
a. The public
b. Creditors of the corporation
c. The shareholders
d. The corporation
e. All of the above
Explanation / Answer
1. D. material
2. A. The breaching party has done everything required in the contract.
3. A.damages.
Exemption clause is a contractual term which is used by the contracting party to cut down the scope of contractual obligations or limit the quantum of damages and other possible remedies in the event of breach of contract.
4. D. The party committing the breach may choose to discharge the contract.
On the contrary, the non-breaching party is relieved of its duties/obligations under the contract breached by the other party.
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