Limited Liability in the context of a corporation means that the shareholders must pay all of the obligations of the Corporation.

a.	TRUE
b.	FALSE

Fiduciary duty refers to:

	a.	A duty imposed on a person who has a special relationship of trust with another
	b.	A duty imposed on an employee
	c.	A contractual duty imposed on parties to a contract

An example of the tort of passing off would include:

	a.	Jen's Co. manufactures handbags to look like Coach handbags
	b.	X Co. designs a gaming console that looks similar an Xbox
	c.	Just in Time Watch Co. sells a watch that they call an A Watch. It looks like an Apple Watch, and Just in Time Watch Co. hopes buyers will buy the A Watch thinking they are buying an Apple Watch
	d.	All of the above

A and B decided to carry on a business in partnership in Ontario. A has his lawyer prepare a detailed partnership agreement setting out their respective rights and obligations. However, at the last minute, B refuses to sign the agreement and A, who trusts B, decides that the agreement is unnecessary. In this case, the partnership will be governed by:

	a.	The law of contract
	b.	The Partnership Act
	c.	The Business Names Act
	d.	The terms of the partnership agreement

Martha was a shareholder in a public biotech company run by her husband. She sold her shares the day before the company announced a major failure of one of its research projects. The share price went down significantly as a result of the failure. An investigation into Martha's actions might reveal that:

	a.	She is smart businessperson who saw the writing on the wall for the biotech company
	b.	She was a tippee
	c.	Her husband was engaged in insider trading
	d.	All of the above

Jessie and John, employees of Tableau Ltd., accidentally dropped a glass table they were unloading. The glass table just missed an 80-year old lady, Jane, who was on her way to the bus stop. She was not hurt at all, nor upset because it fell behind her. Just to be sure she wasn't hurt or upset, John said, "Let me take your arm and help you to the bus." She agreed, so he took her by the arm and walked with her for the rest of the block. When they arrived at the bus stop where others were waiting, she then turned to him, screaming, "Let go of me! You have no right to touch me!" With that, she hit him with her purse. On these facts, which of the following is true?

	a.	In a negligence action, the standard of care owed by workers is to do the best they can
	b.	Jane could successfully sue John for battery
	c.	Jane could successfully sue Jessie and John for negligence
	d.	In law, the battery was committed by Jane

Sue, Raina and Roni want to form a publishing business together based in Toronto. Roni has the most business experience and is the only one who can afford the time to manage the business. The group has which of the following options for organizing their business:

	a.	Incorporate a corporation in Ontario and all become shareholders
	b.	Incorporate a corporation in Canada, all become shareholders, and hire Roni as the CEO
	c.	Create a partnership in Ontario
	d.	Create a limited partnership in Ontario and make Roni the General Partner.
	e.	Any of the above

James Tall, Jane Short and Joel Longe are lawyers. They formed a partnership called Tall Short & Longe LLP (limited liability partnership). Tall was hired by Phillip Almott, a wealthy and well-known investor. Tall was negligent in several transactions which breached the Income Tax Act and caused millions of dollars in losses to Almott. Almott brought a legal action against the law firm and each partner individually. Which of the following statements is correct?

	a.	None of the partners are liable
	b.	Short and Longe are personally liable for Tall's negligence
	c.	The law firm is liable for Tall's negligence
	d.	Only Tall is liable for his negligence

Phillipe and Cheri form a 50-50 partnership to run a hair salon called Bon Style. In addition to hair styling, Phillipe is in charge of customer appointments and Cheri is in charge of ordering supplies for the salon. Business goes poorly and the hair salon must close, but one of the suppliers comes to Bon Style to try to collect $10,000 owing on an order of shampoos, colour and other supplies that were shipped to Bon Style, but never paid. Cheri has moved out of Canada and no one knows how to contact her. Which of the following are true:

	a.	Cheri was in charge of ordering so only she can be sued for the $10,000
	b.	The supplier can sue Phillipe and Cheri for $10,000
	c.	The supplier can recover $10,000 from Phillipe alone
	d.	b&c
	e.	None of the above

Which of the following statements most accurately describes the legal principle established in the case of Salomon v. Salomon?

	a.	In the case of fraud, the owners of a corporation may be personally liable for all debts incurred by it
	b.	Directors owe fiduciary duties to the corporaton
	c.	A corporation has a separate legal existence from its owners
	d.	Directors must act in good faith and exercise their powers in the best interests of the corporation