26. The courts will use ___________ to determine how much should be paid when a person providing the services is not allowed, by a breaching party, to finish the job.

Select one:

past consideration

specific consideration

legislation

quantum meruit

a non-gratuitous promise

27. A contract is binding if the consideration involved is a _______________.

Select one:

demand

firm handshake

gift

firm promise to perform

commitment not to do something

28. If a business promises to pay all of its employees $500 to quit smoking, such an arrangement is a(n) ______________.

Select one:

quantum meruit

commitment

obligation

gratuitous promise

valid, binding contract

29. Which of the following contracts is void?

Select one:

a contract with an insane person for a T.V., where the insane person, or his legal representative, can prove that he was insane at the time of the contract but cannot prove anything else about the incident

a contract with an insane person for necessaries such as food and shelter

a contract to sell a crop of marijuana growing in a particular field

a contract containing an exculpatory clause limiting the liability of one of the parties

any contract with a status Indian

30. All of the following contracts would be illegal, and not binding on the parties, except

Select one:

a contract whereby one person agrees to spread false and damaging information about another.

the act of paying for sexual favours (prostitution).

a contract between camera dealers whereby they agree not to sell a specific model of camera below a specified price.

a contract in which lawyer agrees to represent an accused where the accused did commit the crime.

a contract whereby one person agrees to sell a banned substance (e.g., cocaine) to another.

31. A term in a contract that says that, on the occurrence of an event, the parties' obligations will end is an example of:

Select one:

Condition precedent

Discharge by agreement

Condition subsequent

Tender of performance

Discharge by frustration

32. When a contract anticipates some catastrophic event, such as a riot, invasion, earthquake, or flood that will interfere with the performance of the contract, this is referred to as a ______.

Select one:

frustration clause

force majeureclause

condition precedent

condition subsequent

"subject to" clause

33. Randy, as two older brothers before him, moved out of the house when he was quite young. When he was 17, he and his older brother, Ted, wanted to buy a condominium in the city. They both had jobs and the bank was willing to lend them money and take a mortgage on the condo. Which of the following is a correct statement about the law governing this situation?

Select one:

All contracts with infants are void.

The mortgage agreement would be binding on Randy as an adult if he continued to make payments after reaching the age of majority.

All infants' contracts are enforceable as soon as they become adults.

A mortgage granted by Randy to the bank is effective until a court orders otherwise.

These contracts would be binding on Randy only if he disclosed the fact that he was a minor to the other parties.

34. Jones offers to sell Smith his car. Smith thinks Jones is selling his 2011 Toyota, and Jones thinks he is selling his 2009 Pontiac. This is an example of which of the following?

Select one:

non est factum

common mistake or shared mistake

misunderstanding

fraudulent misrepresentation

unilateral mistake or one-sided mistake

35. With regard to the law concerning misrepresentation, which of the following is true?

Select one:

A misrepresentation can be a false assertion of fact that induces (persuades) the party to contract, and need not be an assertion about a term of the contract.

A statement of opinion can be a one-sided mistake.

A buyer could not be awarded the equitable remedy of rescission if the seller honestly believed that the misrepresentation was true.

For fraudulent misrepresentation, the buyer could ask only for the equitable remedy of rescission.

The case law provides a remedy for a wildly exaggerated claim, such as "This is the best car ever built."

36. Mr. Frank, a foreman supervising some 43 employees, was asked by his secretary to sign a form requesting additional supplies needed on the factory floor. He was not careless when he examined the form, but his secretary had cleverly arranged the signature line so that instead of signing a request for supplies he signed a cheque payable to his secretary. What plea, if any, would be used to defend against her action on the cheque?

Select one:

rescission

mistake

illegality of object

non est factum

rectification

37. A fraudulent misrepresentation which induces another person to enter into a contract can result in which of the following remedies?

Select one:

There is no remedy available for fraudulent misrepresentation.

damages only

rescission and/or damages

rectification

rescission only

38. Randal embezzled $6000 of his employer's money and then disappeared. The employer's accountant called at Randal's residence and found out that his wife had a $3500 term deposit. When the accountant threatened to have her husband arrested and imprisoned if she did not agree, she assigned the term deposit to the employer to help to defray the loss from the embezzlement. If the wife were later to sue for return of the term deposit, what would be her ground for avoiding theassignment?

Select one:

duress

undue influence

non est factum

fraudulent misrepresentation

mistake of law

39. Tong hired Hocaloski to design an ad for her business. Hocaloski assigned the work to Peppar, her employee. After the ad was run, it was noticed that Peppar made a serious error; he gave the wrong address and phone number of the business. Based on these facts, which of the following is true?

Select one:

Tong can sue both Hocaloski and Peppar for breach of contract, since they are both connected with the job.

Tong can sue either Hocaloski or Peppar, her employee, for breach of contract, but not both of them.

Only Peppar is liable since he made the mistake.

For breach of contract, Tong could successfully sue only Hocaloski.

If Hocaloski did not pay Peppar, Peppar could sue Tong for his pay because Peppar did do work for Tong.

40. Which of the following statements regarding novation is false?

Select one:

Novation requires the creditor to accept the new debtor as principal debtor, not merely as a guarantor.

Novation requires that the new debtor assume complete liability.

Novation refers to the creation of a new contract through the substitution of a third party for one of the original parties to a contract, with everyone's consent.

Novation requires the inclusion of a force majeure clause in order to be enforceable.

Novation requires the creditor to accept the new contract in full satisfaction and substitution for the old contract.

41. To which of the following would the Sale of Goods Actnotapply?

Select one:

A contract for future goods when title will pass in the future.

A contract for the sale of a ranch.

A meal in a restaurant.

A contract for the sale of tangible personal property.

A contract for the purchase of a car.

42. Federal and provincial human rights legislation relate to such issues as:

Select one:

Affirmative action

Pay equity

Disabled workers

All of the mentioned

Harassment.

43. The process by which a third party imposes a solution to a dispute on the employer and union is called:

Select one:

Certification

Job action

Mediation

Conciliation

Binding arbitration

44. If you allow Mr. Gnowsky to act as your agent, which of the following is not true with regard to the duties which he owes to you?

Select one:

Even when Mr. Gnowsky is acting as your agent, he need not put your interest above his own.

Generally, an agent may not delegate his authority without the authorization of his principal.

His failure to obey you and to act within the authority given him would allow you to sue him for breach of contract.

Mr. Gnowsky must use reasonable care, skill, and diligence in his service to you.

Mr. Gnowsky must tell you everything relevant to his task that a reasonable person would consider might affect your decision making.

45. Which of the following isfalsewith respect to methods of carrying on a business?

Select one:

Sole proprietors have unlimited liability.

A partnership is a legal entity separate and apart from the partners who make it up.

A corporation is a separate legal entity independent and apart from the shareholders that make it up.

Unlimited liability means that an investor can lose not only what he/she has invested but also their personal assets.

A 'society' must be for a non-profit purpose.

46. Which of the following isnotan advantage of incorporation?

Select one:

Shareholders can veto decisions of directors.

Shares are easily transferred.

Shareholders owe no duty to the corporation.

There may be tax advantages.

Shareholders are not liable for debts of the corporation

47. In which of the following relationships is a 'fiduciary duty' owed?

Select one:

A principal to his agent.

The directors of a corporation to the shareholders.

An employer to his/her employees.

The director of a corporation to the corporation.

The officers of a corporation to the shareholders.

48. Which of the following is thecorrectdefinition of a 'chattel'?

Select one:

Chattel is the term used to describe tangible personal property or movables.

Chattel refers to intellectual property such as patents and copyrights.

The term chattel is the broad term used to describe any kind of property interest.

Chattel is an intangible form of personal property, such as a debt or claim.

A chattel is a name used to describe the land registration system in Ontario.

49. Which of the following isnotprotected by intellectual property laws?

Select one:

Inventions

Sculptures

Building designs

Scientific theories

Music compositions

50. Which of the following istruewith regard to the law of trade secrets/breach of confidence?

Select one:

Trade secret law is governed by provincial statute.

The protection afforded by this area of the law is limited to breaches of confidence only in a commercial setting, e.g., stealing a company's customer list, plans, etc

The court cannot award punitive damages, just compensatory damages, for breach of confidence.

Computer software is not a proper subject matter for trade secret/breach of confidential protection because it can be protected by copyright law.

While an employee is prohibited from disclosing confidential information learned on the job, he/she can use the general skills acquired on that job when he/she changes employment.