11 Which of the following statements is true about insurance for businesses? Select one: a. For most businesses, liability insurance is an unnecessary expense. b. A victim of a tort is much more likely to collect substantial compensation from a tortfeasor who does not have insurance coverage than from one who does. C. Business insurance only provides coverage for damage to business property. d. If your business is sued, your insurance company will likely terminate your policy because they do not want to pay for the additional cost of litigation. E. Effective risk management for most businesses includes the protection of liability insurance. 12 Which of the following describes a situation where there is NO insurable interest? Select one: a. The CEO of a company against the life of the company's top web designer who created the most successful interactive website in the company's history. b. the owner of a car who owes a debt to a bank for a loan on the car. Cthe person whose own life is insured. d. A person who insures the assets of a corporation. eThe wife of a person who has a life insurance policy. 13 Rocko has a private gambling business which he carries out secretly in a building insured by Better Insurance Co. under a standard policy covering all property loss by fire. Rocko's creditor, the Mafia, is not happy with Rocko because he is not paying his debts to them on time. Rocko's building is destroyed by fire one night, under suspicious circumstances! In the investigation that followed, which is the correct legal decision? Select one: a. The insurance company must pay the proceeds of the insurance policy to Rocko. b. The insurance company does not have to pay the proceeds of the insurance policy. . The insurance company does not have to pay the proceeds of the insurance policy to Rocko, but must pay it to his creditors. d. The insurance company must pay the insurance proceeds to the police department b@ause of the nature of Rocko's business. e. None of the above. 14 John, a life-long smoker, applied for life insurance, designating his wife, who is also a smoker, as the beneficiary. John did not disclose his smoking when he filled out the insurance application because he just quit. The insurance company agreed to insure him. Several months later John was diagnosed with late stage lung cancer and died shortly thereafter, John's wife now wants to collect the insurance proceeds. In this situation, Johos wife will: Select one: A. not succeed in collecting the insurance proceeds because she is a smoker. b.succeed in collecting the insurance proceeds because the cause of John's death was not a material term in the policy. not succeed in collecting the insurance proceeds because John failed to disclose his smoking on the application. d. succeed in collecting the insurance proceeds because she is his designated beneficiary. e. not succeed in collecting the insurance proceeds because there is no contract between her and the insurance company. 15 Which of the following statements about insurance coverage is true? Select one: a. There is no insurance coverage available for most business mistakes. b. Insurance should only be purchased when a government law requires it. Insurance coverage is based only on what the business estimates its losses would be. d.Most businesses can insure themselves by setting aside enough cash to cover potential lawsuits. e.Insurance shifts the financial risk of business mistakes to the insurance company. 16 What is the duty of utmost good faith in an insurance contract? Select one: A The insured's requirement to specify the duration of the policy's protection. b. The insurer's requirement to retain all proceeds until a court case is settled. c. The insured's and insurer's requirement to be honest and truthful in regard to the policy of insurance. d. The insured's requirement to provide a policy at the lowest price possible. e. The insurer's requirement to specity the exact cost of the premiums. 17 Anderson entered into a contract with Chan for the purchase of Chan's business in Regina. Chan intends to expand his business in Saskatoon and understands that such expansion is contingent on a clause in the contract between Anderson and himself. That clause specified that Chan cannot expand in Regina. If he does, the contract will be terminated and the parties would be placed in their pre-contractual positions. Which of the following is true? Select ones a. frustration does not apply, as the outside event was anticipated by the parties. b. The relevant clause is commonly referred to as a restrictive covenant in restraint of trade. C The relevant clause is commonly referred to as an exclusion clause. d. The doctrine of frustration applies since this event was not reasonably anticipated by the parties. 18) Larry wants to obtain insurance for his software company, Kiwi Inc. He has 2 brilliant and very creative software programmers and game designers. His insurance agent, who arranged the policy with an insurance company, asks Larry if he wants "key person" insurance. In this case, the insurance policy would include: Select one: a, terms regarding life insurance for those 2 creative employees, with Kiwi named as beneficiary. b. terms regarding property damage to Kivi. terms regarding those Kiwi's employees' liability. d. terms regarding health and disability insurance for all Kiwi employees. e. terms regarding life insurance for the software designers, with their families named as 19) Which of the following is considered adequate tender of performance? Select one: a. The contract is partially performed, but not at the specified time or place B An attempt is made to perform the specified service at the specified time and place and the attempt is going well, except for a late delivery of supplies causing the project completion date to be delayed by two weeks. C The debtor attempts to pay with a cheque although the contract specified cash (legal tender) is a condition of the contract. The creditor refuses to accept the cheque d. An attempt is made to perform the specified service at the specified time and place, but the performing party forgot the tools required for performance. e None of the above described the situation accurately. 20 For which of the following grounds for dismissal does the employer have to provide notice because it is not for cause? Select one: a. misconduct b. incompetence .disobedience d. adverse economic conditions e.permanent disability or constantly recurring illness that cannot be accommodated 21 A business will generally be liable to third parties for the tortious actions of: Select one: a.employees who caused the tort on their own time. b. independent contractors c. employees who have caused the tort in the normal course of their employment. d. both employees and independent 22 Which obligation on employers is required by provincial employment standards legislation? Select one: a. Pay employees a standard set of wages for their job description b. Ensure each laid off or terminated employee receives a one-time payment of $10,000. C. Setcompany-determined breaks and lunch periods for employees. Provide minimum levels of paid vacation. e. Provide child care for employees with children. 23 Which one of these business practices is likely to be most effective in minimizing the risk of being found vicariously liable for the tortious actions of employees? Select one: a. Setting aside progressive discipline for inappropriate conduct. b. Ensuring that employees are properly trained and supervised in their daily activities. . Letting individual managers decide what's best for their department rather than have company-wide policy manuals. d. Letting new hires learn on the job. e, Requiring all employees to sign indemnification agreements. 24 An employer can dismiss any employee as long as the employer Select one: a. confirms the dismissal with their HR office b. provides reasonable notice.notifies the Ministry of Labour. d.Is facing adverse economic conditions. e. does not make misrepresentations. 25 there is no just cause for dismissal, an employer Select one: a. could still dismiss an employee without notice if there has been a business slowdown. b. will never be successfully sued for wrongful dismissal as long as the employee is provided with the compensation required in the provincial employment standards legislation. . has no obligation to pay damages for breach of the employment contract. d. can avoid a lawsuit for wrongful dismissal by making the employment setting so unpleasant that an employee quits. e. will need to provide an employee with reasonable notice or financial compensation in lieu of notice. 26 Daniel works in the company's main office and suffers from vision impairment. He needs computer software so that his computer will read important business documents aloud to him. His employer believes Daniel should pay for the software. What standard does an employer have to meet in this situation? Select one: a. The special software is not provided to anyone else working in the same office, so the employer does not have to pay. b. The employer has no obligation in this regard. c. The employer can fire Daniel now that he knows of this disability. Od. The employer must pay for the software unless it causes the company undue hardship. e. It would disrupt other employees in the office who would tire of hearing the mechanical voice, so the software should not be bought by either Daniel or the employer. Greg is a research scientist with a contract of employment in a food manufacturing company. He worked for 2 years and then his employer ordered him to use unsafe and illegal chemicals in the food the company prepared. Greg refused. A week later the company fired him. In this case, the company: Select one: a. dismissed Greg because his period of employment is at an end. b. dismissed Greg for cause because he was incompetent and they discovered that. c. constructively dismissed Greg. d. dismissed Greg for cause because he was unethical in adding illegal chemicals to the food product. e. wrongfully dismissed Greg because he was fired without cause and was not given reasonable notice. 2 Which factor does NOT affect the enforceability of non-competition clauses inserted in employment contracts? Select one: a. Is the time restriction on competing excessively long? b. Does the employer have a proprietary interest worth protecting? C. is the geographic restriction too broad? d. Should the employee have been paid more while in the original job? e. None of the above