1 (1 point) Canadian privacy protection legislation applies only to companies' activities in Canada and thus does not apply to a foreign company processing Canadian data outside Canada. Question 1 options: True False Question 2 (1 point) Apparent authority is the same as actual authority and is determined by the principal's representations to the third party. Question 2 options: True False Question 3 (1 point) It is unusual for a distributor to have a legal obligation to deliver the product, bear the economic risk of non-payment, or extend credit to customers. Question 3 options: True False Question 4 (1 point) A principal will be bound by acts done by an agent that are within his or her apparent authority. Question 4 options: True False Question 5 (1 point) In an agency agreement, the agent does not normally buy or sell on his or her own account. Question 5 options: True False Question 6 (1 point) In a contractual or unincorporated joint venture, the parties have no liability for the actions of their joint venture partners Question 6 options: True False Question 7 (1 point) Parties to a negotiation process for an outsourcing contract are well advised to agree on a non-disclosure statement with no end date in order to fully protect the confidential information of the company during negotiations and afterward. Question 7 options: True False Question 8 (1 point) Most international investment protection agreements provide the investor with the choice of referring a dispute to local courts or to international arbitration. Question 8 options: True False Question 9 (1 point) Canada does not impose restrictions on licence agreements granting exclusivity in relation to products or territory, unlike the EU, the US and other jurisdictions. Question 9 options: True False Question 10 (1 point) Principals and agents around the world are generally free to make their own contract arrangements as there is little legislative activity to limit their freedom of contract. Question 10 options: True False Question 11 (1 point) In a distributorship, the distributor usually purchases the goods on his or her own account from the supplier for resale to customers. Question 11 options: True False Question 12 (1 point) An agent has a duty to place the principal's interests first in all transactions subject to the agency agreement. Question 12 options: True False Question 13 (1 point) In a licensing agreement, there is a very real risk that the licensor will lose control of the trade secrets relating to its technology with the result that the licensee can take a "short-cut" to establishing effective competition to the licensor in the foreign market. Question 13 options: True False Question 14 (1 point) In a simple agency agreement, the economic risk for failure of delivery of goods or services and the risk of non-payment remains with the principal. Question 14 options: True False Question 15 (1 point) In a distributorship, it is common for the distributor to be compensated by a commission on all its sales of the relevant product. Question 15 options: True False Question 16 (1 point) A Canadian company appointing a distributor in a foreign country has no responsibility for issues such as price maintenance, predatory pricing, and tied selling as this is a matter entirely within the responsibility of the distributor. Question 16 options: True False Question 17 (1 point) Because almost every aspect of a franchised business is controlled by the franchisor to preserve uniformity, it is common that the franchisor owns the business and risks its own capital. Question 17 options: True False Question 18 (1 point) One of the most common issues encountered by joint ventures is that of control and this is easily overcome by agreeing to "shared control" based on equal weight in decision making. Question 18 options: True False Question 19 (1 point) It is advisable that a joint venture agreement include a clause that provides for the resolution of a deadlock situation. Question 19 options: True False Question 20 (1 point) Many countries have enacted legislation that provides for minimum notice requirements and compensation for termination for distributors. Question 20 options: True False Question 21 (1 point) A Canadian company appointing a distributor in a foreign country need only comply with Canadian Competition legislation rules as they will govern all competition rules for any such agreement. Question 21 options: True False Question 22 (1 point) A significant risk for a foreign investor is the seizure of its assets by the government of the host country without compensation. Question 22 options: True False Question 23 (1 point) Because outsourcing is not strictly speaking a strategy for entering a foreign market there is no need to consider the protection of intellectual property when structuring an outsourcing transaction. Question 23 options: True False Question 24 (1 point) The EU does not allow franchising as it views the arrangements as an unacceptable interference with the free market. Question 24 options: True False