Question 1 (1 point)

Smith, a director of Alfa Industries, discovered a business opportunity mentioned in a foreign magazine that would work well for Alfa in Canada. Rather than bring it up at the next directors' meeting, Mr. Smith takes advantage of it himself. He is in breach of his fiduciary duty to Alfa.

True

False

Question 2 (1 point)

The title to the goods had not passed, because Simple had not paid for them.

True

False

Question 3 (1 point)

The only way to effectively purchase a "business" (organized as a corporation) is to purchase all the shares of the corporation.

True

False

Question 4 (1 point)

All of the following are advantages of the sole proprietorship form of business organization, except:

a

Tax simplicity

b

Individual control

c

No sharing of profits

d

Limited liability

Question 5 (1 point)

Wanda may enforce the contract notwithstanding the mistake, on the basis of the "indoor management rule."

True

False

Question 6 (1 point)

Those persons legally responsible for the execution of management of a corporation are

a

Directors.

b

Officer

c

Shareholders.

d

Employees.

e

Incorporators

Question 7 (1 point)

The goods were unascertained goods, and title passed when they were unconditionally appropriated to Simple by the seller's act of writing Simple's name on the package.

True

False

Question 8 (1 point)

Most environmental matters governing business activities fall under provincial jurisdiction for regulation

True

False

Question 9 (1 point)

The Kyoto Protocol

a

Is an agreement between Canada and the United States.

b

Is an international agreement that governs exchange rates for currency.

c

Is an international agreement that governs tariffs relating to textile trade.

d

Is an international agreement that attempts to reduce the amount of greenhouse gases

e

Is an international agreement that governs the formality required when meeting with officials of Kyoto.

Question 10 (1 point)

Mary and the other directors of the corporation may be liable to the shareholders if they acted improperly, and in violation of the corporation's by-laws in the sale of the business

True

False

Question 11 (5 points)

Match the statements in column A to terms to column B

Column A

1.

Let the buyer beware.:

Let the buyer beware.

2.

The right of a seller to stop the delivery of goods by a carrier to an insolvent buyer.:

The right of a seller to stop the delivery of goods by a carrier to an insolvent buyer.

3.

An essential or fundamental term in a contract:

An essential or fundamental term in a contract

4.

An act that is beyond the legal authority or power of a legislature or corporate body to commit.:

An act that is beyond the legal authority or power of a legislature or corporate body to commit.

5.

The adaptation of a contract or act of another by a party who was not originally bound by the contract or act.:

The adaptation of a contract or act of another by a party who was not originally bound by the contract or act.

Column B

a.Ratification of Contracts

b.Caveat Emptor

c.Condition

d.Stoppage in Transitu

e.Ultra Vires

Question 12 (1 point)

Bell Canada created an extremely attractive, totally new design for a touch-tone telephone keypad for use in all its new telephones in public telephone booths. Bell wishes to protect the design. It should do so under

a

The Patent Act.

b

The Copyright Act.

c

The Industrial Design Act.

d

The Trade Marks Act's distinctive guise provisions.

e

The Trade Marks Act's service marks provision

Question 13 (1 point)

Kleenex is an example of a

a

Service mark.

b

Trademark.

c

Certification mark.

d

Copyright.

e

Trade name.

Question 14 (1 point)

Copying material from the Internet can be done only with the permission of the copyright holder

True

False

Question 15 (1 point)

() is the ownership of a fractional equity interest in a corporation.

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Question 16 (5 points)

What must a person who has a proposed trademark do in order to establish rights to the mark?

Your answer:

Question 17 (1 point)

If another newspaper copies the picture that was published by the newspaper to which Alice gave the picture, the second newspaper would be liable for infringement.

True

False

Question 18 (1 point)

In the sale of goods, a minor term in a contract is called ()

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Question 19 (1 point)

Under environmental legislation, enforcement officers

a

Are not authorized to examine and seize business records.

b

Are not authorized to order a suspected offender to cease operations.

c

Are responsible for monitoring compliance with the legislation.

d

Are authorized to carry weapons.

e

Are authorized to carry weapons.

Question 20 (5 points)

Explain the circumstances where it would be preferable to use the partnership as a form of business organization. What are the risks?

Your answer:

Question 21 (1 point)

Which of the following is considered to be a disadvantage of the general partnership form of business organization?

a

Growth potential

b

Divided authority

c

Greater access to capital

d

Greater talent pool

Question 22 (1 point)

Shareholders and directors of a corporation both have personally limited liability as against the liabilities of the corporation, but shareholders have their liability even more limited than do the directors.

True

False

Question 23 (1 point)

_Jason worked as an employee of MegaByte Industries, a computer conglomerate. As part of his job, he produced a unique program for routing emergency calls to the appropriate public emergency services departments. There is no written employment contract dealing with ownership of the program. This program can be

a

Copyrighted only by MegaByte.

b

Copyrighted only by Jason.

c

Patented only by MegaByte.

d

Patented only by Jason.

e

Copyrighted only by the public emergency services that use it.

Question 24 (1 point)

While preparing an essay for her MBA class on the increased need for employers to take steps to protect confidential information in the age of computers, Margaret photocopied several journal articles, parts of which she later quoted in her paper. She did not get the permission of the authors to do so. She has not breached the Copyright Act.

True

False

Question 25 (1 point)

__Canada's biggest trading partner is

a

China.

b

Mexico

c

Great Britain.

d

United States

e

India

Question 26 (1 point)

Because Alice took the photograph while she was at work, her employer would be entitled to the copyright in the picture.

True

False

Question 27 (1 point)

_Case: Mary was the Secretary-Treasurer of T Enterprises Inc., a tea and coffee importer. She contacted Wanda, who carried on business as a wholesaler, to determine if Wanda might be interested in the purchase of the corporation's coffee import business. Wanda expressed an interest in the purchase, and Mary advised Wanda that she would arrange to have the sale of the coffee business approved by the shareholders, as required by the corporation's by-laws. Mary eventually produced a shareholders' resolution authorizing the sale. Later, it was discovered that proper notice of the shareholders' meeting had not been given, and no quorum of shareholders was present at the meeting.

The agreement to sell the coffee business was void because proper shareholder approval had not been given for the sale.

True

False

Question 28 (1 point)

The greatest control over the acts of a corporation may be exercised by

a

The majority owner of preferred shares.

b

The board of directors.

c

The majority owner of common shares.

d

The bond holders.

e

All of these

Question 29 (1 point)

A ________________ is a right in a new invention, a _______________________ is a right to manufacture an artistic design, a ________________ identifies a product or service, and a ________________________ is ownership in an artistic or literary work

a

Patent, industrial design, trademark, copyright.

b

Industrial design, patent, trademark, copyright.

c

Patent, trade name, distinctive guise, certification mark.

d

Compulsory licence, licence, trademark, patent.

e

Trademark, compulsory licence, industrial design, copyright.

Question 30 (1 point)

An agreement made between a debtor and a creditor in which the title to the property of the debtor is transferred to the creditor as security for payment of the debt is ()

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Question 31 (1 point)

Which of the following will not be purchased by the purchaser of the assets of a corporation?

a

its intellectual property.

b

its customer lists.

c

its shares.

d

its land and buildings.

e

its employment contracts

Question 32 (1 point)

__Web content over which the creator of that content asserts no copyright may be copied and disseminated.

True

False

Question 33 (1 point)

A prospectus is required if the minimum investment amount is over $150,000 because of the large amount of money involved

True

False

Question 34 (1 point)

Unauthorized duplication of material found on the Internet constitutes copyright infringement

True

False

Question 35 (1 point)

Under this business form, the owner has complete control over the conduct and management of the business.

a

Limited partnership

b

General partnership

c

Sole proprietorship

d

Corporation

Question 36 (1 point)

A firm that chooses to raise funds through a distribution of securities is known as

a

an underwriter.

b

an issuer.

c

an SRO.

d

an open-market trader.

e

a qualified offeror.

Question 37 (1 point)

The priorities of corporate security are usually

a

Fixed charges in preference over floating charges, debentures in preference over mortgage bonds. B.

b

Fixed charges in preference over floating charges, mortgage bonds in preference over debentures.

c

Floating charges in preference over fixed charges, debentures in preference over mortgage bonds.

d

Floating charges in preference over fixed charges, mortgage bonds in preference over debentures.

e

None of these.

Question 38 (1 point)

Alice took a photograph of a parade that passed by the window of the office where she worked and submitted it to the local newspaper along with a short report on the celebrations.

Alice may claim copyright in the photograph and the writing.

True

False

Question 39 (1 point)

The concept of fiduciary duty applies to

a

corporate officers.

b

shareholders.

c

directors.

d

incorporators.

e

employees.

Question 40 (1 point)

A chartered bank, e.g., "The Bank of Nova Scotia," is not a partnership.

True

False

Question 41 (1 point)

Undisclosed profits gained by some directors of a corporation as a result of a commercial transaction with that corporation put those directors in breach of their fiduciary duty.

True

False

Question 42 (1 point)

__Simple agreed to purchase a quantity of bird feed for his canary from a local pet shop. The shopkeeper agreed to weigh the feed, and have it in apackage for Simple when he returned in one hour. The shopkeeper weighed the feed and wrote the weight, price, and Simple's name on the package. Before Simple returned, the package was stolen from the shop.

The title to the goods passed when the agreement was made, and the goods belonged to Simple when they were stolen.

True

False

Question 43 (1 point)

Melissa applied for a patent in May 2002, which was granted the same month. The patent will expire in

a

May 2017.

b

May 2020.

c

May 2022.

d

May 2023.

e

50 years after her death.

Question 44 (1 point)

Because Alice took the photograph while she was at work, her employer would be entitled to the copyright in the picture

True

False

Question 45 (1 point)

A credit instrument that provides business with the security of payment for goods or services provided to the holder of the cards is termed as ()

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Question 46 (1 point)

When Wanda discovers the mistake, she may sue Mary personally as a result of her representation that proper authorization had been given for the sale.

True

False

Question 47 (1 point)

PlastiCo. contracted to buy 10,000 gallons of a chemical from Natural Chemicals Ltd. The chemical still had to be refined at the time the contract was made. Once it was refined, Natural had it pumped into 500-gallon drums and loaded them onto a truck owned by Heavy Haulage Inc., a common carrier.

The truck pulls out of Natural's yard, and it is struck by a falling boulder on the mountain road nearby and goes over the cliff. Almost all of the barrels are damaged and the chemicals leak into the ground.

a

Since the loss of the chemicals was due to an act of God, the two parties will split the loss between them

b

The loss will be Natural's since the barrels were not yet delivered to PlastiCo.

c

Since the chemical was unconditionally appropriated to the contract when it was loaded onto Heavy's truck, the loss is PlastiCo's

d

Title to the chemicals was PlastiCo's from the moment the contract was formed and so PlastiCo. must bear the loss

e

Since Natural had not yet notified PlastiCo. that the chemicals were being delivered, the risk of loss remains with the seller, Natural.

Question 48 (1 point)

The "indoor management rule" governs the activities of officers and directors but not agents of the corporations.

True

False

Question 49 (1 point)

The title to the goods had not passed because the shopkeeper had not notified Simple that the goods were weighed, and in a deliverable state.

True

False

Question 50 (1 point)

For her new invention, Stephanie applied for a patent on May 12, 2004 in Canada; on June 19, 2004 in England; and on September 28, 2004 in France. Her patent was duly granted under the Union Convention of Paris on October 17, 2004. Her patent protection in France will expire

a

May 12, 2024.

b

June 19, 2024.

c

September 28, 2024.

d

October 17, 2024.

e

May 12, 2020.

Question 51 (1 point)

Person may rely on the acts of the officers of a corporation without inquiry by virtue of

a

The doctrine of constructive notice

b

The doctrine of promissory estoppel.

c

The doctrine of ultra vires

d

The indoor management rule.

e

None of these

Question 52 (1 point)

__A general partnership is most similar to a _______, except for the number of people running the business.

a

Corporation

b

Limited partnership

c

Multiple partnership

d

Sole proprietorship

Question 53 (1 point)

A business relationship that licences the use of trade names, trademarks, and operating procedures to operate a similar business is termed as ()

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