104.Does a minor not liable for torts such as negligence, assault, defamation, or deceit? A. True B. False 105.M sells goods to a rogue, R. R did not gain the title of the goods. R appears to resell the goods to N, who is the innocent purchaser. N does not gain the title. M may sue and recover the goods from N. This case is a classis example of VOID contract. A. True B. False 106.Mr. Clark, who graduated from dentistry and got a license to practice his profession, incorporated a dental business. Since it requires a large sum of money, he applied for loan at the bank and mortgage their family home as security for the loan. The house is jointly owned by the couple. The husband sent his wife to the bank to sign the mortgage document without explanation and independent legal advice. Does this case is a classic example of duress? 21 A. Yes - duress. B. No - undue influence. C. Duress and undue influence. D. Duress and coercion. 107. All rights and freedoms that were set out in the Charter of Rights and Freedoms are absolute and without limitation because it was entrenched in the constitution? A. True B. False 108. A philosopher of the 19th century who asserted that the upper class would never surrender any of their protection and privileges through persuasion or other form of non-violent pressure. A. Thomas Hobbes. B. Roscoe Pound C. Jeremy Bentham D. Karl Marx 109. Below are the three levels of court, except? A. Trial Courts B. Court of Appeal C. Supreme Court D. Parliament 110.Which of the following has the standing right to sue or who has the right to start a lawsuit? A. A person under the age of 18 years old B. A Corporation C. A non-Canadian individual D. B & C 111.Jack, a stockbroker, was an inexperienced in tax. He a seek the advice of an independent designated tax professional to advise him on tax planning and tax shelter that he needs. Simon, who is a designated accountant who specialized in those areas, advised Jack to invest in a number of multiple unit residential building (MURBs), a real estate investment project. as tax shelter. When the value of MURBs fell during a decline in the real estate market, Jack lost heavily in his investment. The advice was perfectly sound at the time it was given. Simon also disclosed to Jack that he is acting as adviser for the developers in structuring the MURBs. In this case the court held that: A. Simon is liable to compensate Jack for the cost of loss for breach of fiduciary duty due to nondisclosure that he also acts as adviser to the Developer which is conflict of interest. B. Simon is not liable for the loss of Jacks investment because he disclosed to Jack that he is also the adviser of the Developer. 22 C. Simon is still liable for the loss of Jacks investment even he disclosed to Jack that he is also the adviser of the Developer. D. Simon is not liable for the loss of Jacks investment because he has no control of the market. 112.______________ prohibits corporation from payment of dividends if there are reasonable grounds for believing that (a) the corporation is, or would be after the payment, unable to pay its liabilities as they become due, (b) the realizable value of the corporations assets would thereby be less than the aggregate of its liabilities and its stated capital of all assets. A. Maintenance of capital test. B. Test of insolvency C. Dividend test. D. Return of capital 113.Board of Directors of a corporation are elected by an ordinary resolution of the shareholders; therefore, directors are always bound to execute resolution from the shareholders. A. True B. False 114.Does a breach of contract always have a consequence of breach of fiduciary duty and tort? A. True B. False 115.Sam is constructing a homemade elevator in his barn. He went to the hardware store, and he told them that he is looking for a cable wire and informed them of its use and purpose. The store does not have stocked for the wire that Sam is looking for. The store agent recommended to Sam a clothesline wire. Relying on the skill and judgment of the store agent, Sam bought 50 meters of clothesline wire. On the process of using it, the wire broke, and the homemade elevator went down causing injury to Sam. Sam sued the hardware store for breach of contract under Sale of Goods Act. From the choices below, please select your arguments in order for Sam to succeed. A. Sam expressly states the particular purpose for which he intended to use the wire. B. Sam examined the goods and there is no implied condition as regards to its defects. C. A & D D. Sam did rely on the skill and judgment of the hardware store. 116.Unless otherwise agreed, the Sale of Goods Act provides that title to goods passes from seller to the buyer for the sale of unascertained goods or future goods by description: A. When goods of that description and in a deliverable state are appropriated to the contract by one party with the assent of the other. B. When the buyer received notice that it has been done. 23 C. When the buyer retains the good beyond a reasonable time. D. A & B 117.Problematic business sales tactics often result in unwanted consumer contract. Consumer protection legislation regulates these business tactics like (1) direct sales contract also known as direct agreements are those which are negotiated and entered into in-person, at a place other than the suppliers place of business, such as at the purchasers home (also known as door-to-door sales), (2) unsolicited goods where sellers attempt to charge a consumer for unsolicited goods, such as books or credit cards, or unsolicited services, (3) telemarketing the practice of using interactive telephone communications for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting any business interest. Under the common law rule, the rights and liabilities of the contracting parties are established at the time the contract is formed. Does this common law rule apply to the above business tactics? A. True B. False 118. A person who has the capacity to contract may appoint an agent to contract on his/her behalf. The power of an agent is limited to the capacity of that principal possesses. If the principal appoints a minor to act as agent, the contract made by the minor on behalf of the principal is: A. Void at the inception. B. Illegal C. Enforceable D. Voidable as if he/she made personally. 119.Agency is a relationship in which one person, known as an agent, is authorized to bring another party for whom she acts, known as principal, into contractual relations with the third parties. The authority of an agent may be terminated, except: A. The break-up of marital relationship of the principal. B. At the end of a time specified in the agency agreement. C. At the completion of the project for which the agency was formed. D. Upon the death or insanity of either the principal or agent. 120.A ____________ that may be a crime associated with employment such embezzlement, or an employee guilty of grossly immoral conduct that might bring the employers business into public disrepute, disturb the morale of other employees, or might cause the employer direct financial loss. _____________ the degree of skill an employer may demand from the employee who accepts the position on the understanding that he/she is capable of doing particular kind of work and it becomes apparent that he/she cannot. A willful _____________ of a reasonable and lawful order from an employer is grounds for immediate dismissal without notice. ___________ a disability or constant 24 recurring illness entitles an employer to consider the contract at an end, regardless of any terms in the contract requiring notice of which case the contract is discharge by frustration rather than breach. The common law has classified the above kinds of breach of contract/frustration that are sufficient grounds for dismissal without notice. Please choose the right answer according to order. A. Incompetence, disobedience, misconduct, and illness B. Disobedience, misconduct, incompetence, and illness. C. Illness, misconduct, incompetence, and disobedience D. Misconduct, disobedience, incompetence, and illness. 121.Agents authority may be terminated on any of the following occasions: 1) at the end of a time specified in the agency agreement; 2) at the completion of the particular project for which the agency was formed; 3) on notice by either the principal or the agent that he or she wishes to end the agency; 4) on the death or insanity of either the principal or the agent; 5) on the bankruptcy of the principal; 6) on an event that makes performance of the agency agreement impossible. From the choices above, please select exception to the rule that the principal is not required to bring the termination to the attention of all third parties that are likely to be affected. A. 3, 4 & 5 B. 1, 2, 3, 4, 5 & 6 C. 3, 4, 5 & 6 D. 4 & 5 122.In establishing the right to recover compensation, the plaintiff must prove to the defendant the elements of negligence. Which of the following is not the elements of negligence? A. Direct injury. B. Duty of care. C. Breach of the duty of care. D. Defendants conduct cause injury. 123.In tort law, the plaintiff must prove to the defendant that the evidence is based on standard of proof that is beyond reasonable doubt, while in criminal case, the plaintiff must prove to the defendant that the evidence is based on standard of proof of preponderance of evidence. A. True and false B. False and false C. False and true D. True and true 124.The remedy of tort is to compensate the victim while the remedy of crime is imprisonment. All tortious acts have always a consequence of a crime. A. True, true & false. B. False, false & false. C. False, true & false. D. False, true & true. 25 125.In the early stages of development of a tort, there is no such thing as indirect injuries, only direct injuries. Therefore, there is no compensation for loss or damage suffered caused by indirect injury. A. True & true B. False & false C. False & true D. True & false 126.When Patrick drops off a log from his wagon, on his way home in nighttime, and he does not bother to take that log off from the road. A vehicle hit the log head-on which makes the vehicle completely wrecked and injured the driver. Does Patrick owe a duty of care to the Plaintiff? Is the duty of care foreseeable? A. True and true B. False and true C. False and false D. True and false 127.Refer to question number 15 When Patrick. The above case is a classic example of? A. Old tort of direct injury B. Indirect injury under modern tort. C. Modern tort of direct injury D. Indirect injury under old tort. 128.It would be much easier to successfully sue in tort because the standard of proof is based on the balance of probabilities, while in crime, the standard of proof is beyond reasonable doubt which is much higher than in tort. A. True and true. B. False and true. C. False and false D. True and false 129.To distinguish tort from a contract. Does the breach of a contract tantamount to a tort? Does a commission of tort do not always tantamount to a crime? A. True and true. B. False and true. C. False and false. D. True and false. 26 130.Intellectual property is an intangible property that is the product of mental activity. The four most recognized forms of intellectual property are, except? A. Trademarks B. Copyright C. Patent and industrial designs D. Goodwill 131.Ray Plastic Ltd. manufactured a successful tool a combined snow brush, ice scraper, and squeegee, and it is called Snow Trooper.. It was black and yellow, and its appearance is uncommon. The company supplied this tool to number of large retailers including Canadian Tire, and it was very successful. Canadian Tire, a substantial customer, suggested to another supplier, Dustbane Products Ltd., to consider producing and supplying similar type of tool. Dustbane produced a virtual clone of the "Snow Trooper". Ray Plastic Ltd sued Dustbane Products Ltd. on the ground of passing off. This case is a classic example of? A. Trademarks. B. Patent. C. Industrial designs. D. Copyright. 132.Purolator undertook to deliver a tender document from Cathcarts office to the office of Ontario Hydro. The bill of lading contained a clause stating that Purolator would not be liable for any special, consequential, or other damages for any reason including delay in delivery. The tender document was never delivered to Ontario Hydro. Cathcart sued Purolator for lost profit. But Purolator counter claimed that the clause exempted them from liability. Does the exemption clause apply to the facts? A. Yes, because Cathcart signed the bill of lading, therefore, acceding to the exemption clause. B. Yes, because the clause is unconscionable, therefore, enforceable. C. No, the clause on its true construction covered only damages rising from delay and not from complete failure of delivery. D. No, because the clause is unconscionable, therefore, unenforceable. 133.Statement 1: All lands are originally vested in the government referred to as Crown. Statement 2: A life estate is an estate in land that lasts for the life of one person and usually for the life of the person who holds the estate, but not necessarily. Statement 3: Fee simple is the longest interest a person can own in land and is as close to complete ownership as the law allows. In event the owner dies without a will or relatives, then land is transferred back to the government. A. All statements are true. B. Statements 1 & 2 are true, but statement 3 is false. C. Statements 2 & 3 are true, but statement 1 is false. D. Statements 1 & 3 are false, but statement 2 is true. 27