Question 1 (1 point)

Arrears of taxes are found:

	by request from the province
	by asking the mortgagee
	by asking the owner
	none of the above

Question 2 (1 point)

A clause in a mortgage that states that the total of principal and interest falls due and payable in a default is:

	called an acceleration clause
	called the term of the mortgage
	amortization period
	a maturity date

Question 3 (1 point)

Voluntary transfers of land does not include

	a gift
	a deed
	adverse possession
	a transfer

Question 4 (1 point)

Revocation of an offer to be valid must

	reach the offeree
	need only be attempted by the offeror
	reach the offeror
	none of the above

Question 5 (1 point)

A mortgage in the Land Titles Registrations System is called:

	a contract
	a charge
	a deed
	a transfer

Question 6 (1 point)

A guarantee:

	need not be in writing
	none of the above
	is enforceable
	must be in writing

Question 7 (1 point)

Adams, a creditor of Brown, threatened to sue Brown for an overdue debt. Brown's friend Cox then promised to pay Brown's debt to Adams if Adams would refrain from suing Brown, and Adams agreed. if Cox failed to pay Adams as agreed, and Adams sued him for breach of contract, she would:

	succeed
	be guilty of breach
	seek restitution
	fail

Question 8 (1 point)

A mortgagee is:

	the lender
	the debtor
	an unsecured creditor
	the borrower

Question 9 (1 point)

Which of the following is a bilateral offer:

	I promise to pay you $50 if you run around the block
	I promise to pay you $50 if you find my ring
	I'll give you $100 for your sweater
	none of the above

Question 10 (1 point)

If someone agrees to grossly inadequate consideration:

	he/she can get out of the contract
	this is a gratuitous promise
	the courts generally generally will not assist him/her.
	this is called past consideration

Question 11 (1 point)

Past consideration:

	amounts to a breach of a major term of a contract
	is no consideration
	must be in writing
	is a form of fresh consideration.

Question 12 (1 point)

Which of the following is considered an Offer:

	I'll give you $100 at the end of the class
	I'll pay you $100 if you skate around the rink 10 times
	I'll pay you $100
	I swear to pay you $100 tomorrow

Question 13 (1 point)

The classes of bonds that a corporation issues is:

	contained in the Articles of Incorporation
	contained in the bylaws
	contained in the Corporate charter
	none of the above

Question 14 (1 point)

A unit owner in a condominium holds:

	a fee simple estate
	a tenancy
	a life estate

Question 15 (1 point)

Every business corporation:

	must have employees
	must have bonds
	must have a charter
	must have per value shares

Question 16 (2 points)

ABC Ltd. is insolvent. It has $500,000.00 in assets to be distributed to the security holders. What is the order of payment of its security holders:

	preferred shareholders, then general creditors, then secured creditors
	common shareholder, then secured creditors,
	preferred shareholders, then general creditors, then any surplus to the corporation
	None of the above

Question 17 (1 point)

Corporations typically raise money by:

	Articles of Incorporation
	winding up
	issuing bonds and shares
	bylaws

Question 18 (1 point)

Using another person's land for a period of at least 20 years may give a landowner:

	a fee simple estate
	a restrictive covenant
	a life estate
	an easement by prescription

Question 19 (1 point)

The priority of each interest in land is determined based:

	on the order of registration with earlier registrations taking priority over subsequent registrations
	on whether a deed is signed
	on the Statute of Frauds
	on the order of registration with later registrations taking priority over previous registrations

Question 20 (1 point)

A promise made without bargaining for anything in return is:

	a promise that is enforceable
	a gratuitous promise
	supported by consideration
	a type of offer

Question 21 (1 point)

Zoning bylaws:

	create easements
	regulate the use of land by owners
	create rights of way
	subdivide property

Question 22 (1 point)

The primary advantages of the business corporation are:

	the separation of ownership and management and unlimited liability
	the transfer of ownership
	the separation of ownership and management and limited liability
	the creation of shares and bonds

Question 23 (1 point)

Laura owns a home. Laura gets married to Brandon. As soon as Laura and Brandon begin living in a home together after marriage:

	Laura becomes a joint tenant
	the home becomes Brandon's matrimonial home
	the home becomes Laura's
	Laura becomes a tenant in common

uestion 24 (1 point)

If a default occurs in a mortgage, the mortgagee:

	can sue for possession only
	can sue for damages
	can sue for specific performance
	can sue for possession and exercise a Power of Sale

Question 25 (1 point)

In Eastwood v Kenyon, Eastwood, who was the guardian of Mrs. Kenyon while she was a child, personally borrowed money in order to finance her education and to maintain the estate of which she was the sole heiress. On coming of age, she promised to reimburse him; after her marriage, her husband, Mr. Kenyon, promised Eastwood to pay back the sum, but he did not. Eastwood sued Mr. Kenyon, claiming that Kenyon had a moral duty to honour his promise, but his action failed

	Kenyon's promise was not an offer
	Kenyon was morally obligated to pay and this was recognized by the court
	Kenyon had not received any consideration for his promise
	none of the above

Question 26 (1 point)

The famous corporate case Salmon v. Salmon & Co Ltd. stands for the legal principal that:

	a shareholder owes no duty to the corporation
	a director is a creditor of the corporation
	a shareholder owes no duty to other shareholders
	the corporation is a distinct separate legal personality from the shareholders of the corporation

Question 27 (1 point)

A person dies "intestate" when:

	he or she dies without signing a will
	he or she dies without a spouse
	he or she dies without heirs
	he or she dies having signed a will

Question 28 (1 point)

The fiduciary duty of directors are:

	to act honestly and in good faith with a view to the best interest of the creditors
	to act in good faith with a view to the best interest of the shareholders
	to act in good faith with a view to the best interest of the corporation
	None of the above

Question 29 (1 point)

The right of the mortgagee to exercise a Power of Sale is:

	a court action
	found in the deed or transfer
	contained on title insurance
	found in the mortgage itself

Question 30 (1 point)

In Ontario, one incorporates by filing:

	Articles of Incorporation
	a shareholder's agreement
	Letters Patent
	a Charter

Question 31 (1 point)

A issuing corporation is also referred to as a:

	private corporation
	widely held corporation
	closely held corporation
	none of the above

Question 32 (1 point)

A leasehold estate is:

	an interest more than an estate
	a form of life estate
	obtained by Adverse Possession
	none of the above

Question 33 (1 point)

A party to a contract who entered into the contract by way of undue influence may claim:

	damages
	rescission
	specific performance
	quantum merit

uestion 34 (1 point)

Title Insurance is:

	a form of an estate in time
	a policy of insurance that compensates the holder for defects on title
	something a vendor's lawyer does
	a way of searching title

Question 35 (1 point)

The acceptance of an offer to purchase in a real estate transaction creates:

	a deed
	a transfer
	a mortgage
	an Agreement of Purchase and Sale

Question 36 (1 point)

To qualify for recovery, damages must:

	a minor breach of contract
	be foreseeable to the parties at the time the contract is formed
	a major breach of contract
	be foreseeable to the parties at the time of the breach

Question 37 (1 point)

If a party to a contract is the victim of an Innocent misrepresentation he or she may:

	sue for an injunction
	sue for rescission of the contract
	sue for damages
	sue for specific performance

uestion 38 (1 point)

A covenant requiring the owner of the land to refrain from certain conduct or certain use of land is called:

	a restrictive covenant
	an easement
	adverse possession
	a right of way

Question 39 (1 point)

The oldest method of incorporation is:

	the Letters Patent System
	Royal Charter
	Articles of Incorporation
	none of the above

Question 40 (2 points)

You are an investment advisor at the Royal Bank of Canada. A 30-year old comes in to see you for advice investing their life savings of $500,000.00. They tell you they have a high risk tolerance and want to see their investment grow. Your advice will must likely be:

	purchase secured bonds in the Royal Bank of Canada
	purchase common shares in the Royal Bank of Canada
	purchase bonds in a local gold mining company
	purchase unsecured bonds in the Royal Bank of Canada

Question 41 (1 point)

Dividends:

	are a method by which corporations returns profits to employees
	are a method by which corporations return profits to shareholders
	are a method by which corporations return profits to directors
	none of the above

Question 42 (1 point)

Concurrent holders of land each of whom have no right of survivorship is called a:

	easements
	tenancy in common
	joint tenancy
	life estates

Question 43 (1 point)

All business corporations must have:

	some kind of shares
	preferred shares
	bonds and debentures
	bonds

Question 44 (1 point)

An officer of a corporation would be a:

	director
	valet parking attendant
	vice-president
	a cleaning lady

Question 45 (1 point)

The fee simple is:

	as close to complete ownership as the law allows
	Adverse Possession
	a Life Estate
	a Charge

uestion 46 (1 point)

An unilateral offer is:

	an offer of a promise in return for an act
	a contract
	not an offer at all
	an invitation to treat

Question 47 (1 point)

A sale of a mortgage by the mortgagee is called:

	an assignment of mortgage
	a discharge of mortgage
	a deed of conveyance
	a charge

Question 48 (1 point)

The declaration of dividends:

	is done by a resolution of the Board of Directions
	is done by the accountant/auditor of the corporation
	is done by a resolution of the shareholders
	is done by a resolution of the majority of shareholders

Question 49 (1 point)

Preferred shareholders

	rank ahead of common shareholders on a liquidation
	aren't entitled to dividends
	rank ahead of secured bondholders on a liquidation
	rank ahead of unsecured bondholders on a liquidation

Question 50 (2 points)

Sally and Bob have just entered into a contract to buy a house. In order to finance the purchase, they signed a mortgage for $300,000.00 on June 1 with a local Property Bank that registered the mortgage on June 12. To furnish the house, they took out another mortgage with Up-Town Credit Union for $25,000.00. This mortgage was signed on June 9 and registered the same day. Unknown to the other two lenders, Sally and Bob took out a third mortgage with a friend, Jim for $25,000.00 on June 5, which was registered on June 11. What is the order of propriety of the mortgages?

	Up-Town Credit Union, Property Bank, Jim
	Property Bank, Up-Town Credit Union, Jim
	Jim, Property Bank, Up-Town Credit Union
	Up-Town Credit Union, Jim, Property Bank
	Property Bank, Jim, Up-Town Credit Union

Question 51 (1 point)

In order to subdivide a piece of land the owner must:

	sign a deed or transfer
	obtain federal approval
	obtain provincial approval
	none of the above

Question 52 (1 point)

In a contract formed on the internet the supplier:

	is the promisee
	none of the above
	is the offeror
	is the offeree

Question 53 (1 point)

Private Corporations:

	almost always have freely transferable shares
	almost always have at least 3 directors
	almost always restrict the transfer of shares
	almost always have bonds

Question 54 (1 point)

A winding up is a court action requiring:

	the amalgamation of the corporation
	the purchase of shares of the corporation
	the removal of a director of the corporation
	the liquidation of the corporation

Question 55 (1 point)

A Transfer can also be referred to as a:

	deed
	charge
	mortgage
	right of way

Question 56 (1 point)

If a debtor becomes insolvent:

	general and secured creditors share equally
	secured creditors are paid first
	general and secured creditors share ratably
	general creditors are paid first

Question 57 (1 point)

A default in a mortgage occurs:

	when a monthly payment is made
	when the last payment is made
	when the first payment is made
	none of the above