QUESTION 1

NCR is an Ontario-based business that manufactures hockey equipment and trains hockey instructors. It enters a contract to train hockey instructors in New Zealand (a CISG signatory) where the sport is becoming popular. Which statement is most accurate?

	a.	The CISG does not apply since this is not a contract for the sale of goods.
	b.	The CISG applies automatically to this contract.
	c.	The CISG does not apply because this contract is not an international contract.
	d.	The CISG does not apply to contracts relating to sports.

1 points

QUESTION 2

HeartTech Inc. is a US company that has developed software and a wearable device for specialized heart monitoring. Its best known wearable product is a bracelet used for heart monitoring called "HeartTech Fit" and has a double heart logo. HeartTech would like to expand its business into new markets.

Artistic Activewear Corp. is a Canadian company that manufactures innovative activewear and sports clothing. Artistic Activewear would like to incorporate HeartTech's software and technology into a new sport t-shirt that monitors the wearer's heart rate while they are exercising. The new t-shirt would have the HeartTech double heart logo on the pocket. Due to the significant investment required to design and manufacture the t-shirts, Artistic Activewear would like to be the only company selling these t-shirts in Canada.

To set up this arrangement, which of the following provisions should be included in the contract between HeartTech and Artistic Activewear:

	a.	A software licence, whereby Artistic Activewear pays a license fee to HeartTech for the right to use HeartTech's software.
	b.	A trademark license, whereby Artistic Activewear pays a royalty to HeartTech for the right to use the HeartTech Fit double heart logo.
	c.	An exclusivity right for Artistic Activewear to be the only seller in Canada.
	d.	All of the above.

1 points

QUESTION 3

Under Canadian competition law, it is an offence for a corporation in Canada to participate in a conspiracy directed by a person or business outside of Canada. This rule:

	a.	Allows Canadian competition authorities to reach an offshore-directed conspiracy without needing to enforce Canadian law outside of Canada.
	b.	Allows Canada to prohibit abuse of dominant position.
	c.	Allows Canada to meet its WTO obligations.
	d.	Allows Canadian laws to be enforced outside of Canada.

1 points

QUESTION 4

If mediation or conciliation is chosen as a form of dispute resolution, it will be:

	a.	Not available in international disputes.
	b.	A mandatory process
	c.	Binding on all the parties
	d.	A voluntary process

1 points

QUESTION 5

Paul's Plaids ("PP"), a Canadian flannel shirt manufacturer, hired Rosie to act as its agent in Australia. Under Rosie's agreement with PP, she is only authorized to enter into contracts with a value of Cdn $50,000 or less. PP has not done anything to tell the customers about this limit so potential customers are unaware of this restriction. Rosie negotiates a contract for a sale of Cdn $100,000 worth of plaid shirts with a Sydney department store, and signs the contract on behalf of PP. Is PP bound by the contract to sell $100,000 worth of plaid shirts?

	a.	Yes, because Rosie showed apparent authority to enter into the contract and PP did nothing to make the customer aware of her actual authority.
	b.	No, because Rosie did not have actual or apparent authority.
	c.	No, because Rosie was not authorized to enter into contracts for this amount.
	d.	Yes, because Rosie had actual authority to enter into the contract.

1 points

QUESTION 6

The CCH Canadian Ltd. v. Law Society of Upper Canada case established the principle that:

	a.	The fair dealing exception applies to research conducted by lawyers using the library.
	b.	Material produced by publishers such as CCH is not original enough to be protected by copyright.
	c.	Customers who copy material from library books for legal research are violating copyright law.
	d.	Libraries are responsible for copyright infringement conducted by customers using library copier machines.

1 points

QUESTION 7

A Canadian patent cannot be infringed by activities that take place outside Canada.

True

False

1 points

QUESTION 8

HeartTech Inc. is a company that has developed software and a wearable device for specialized heart monitoring. Artistic Activewear Corp. is a company that manufactures innovative activewear, sports clothing and other wearables for a healthy lifestyles. The owners of the 2 companies meet at a trade show and discuss ideas how they could collaborate.

If they were to set up a new sports equipment business where HeartTech and Artistic Activewear 1) would each have 50% of the shares; 2) contribute various assets, including the technology by HeartTech and the design and manufacturing of the shirts by Artistic Activewear and 3) share equally in the profits of the company. This would likely be considered to be:

	a.	A joint venture.
	b.	An agency agreement.
	c.	A limited partnership.
	d.	A distributorship.

1 points

QUESTION 9

Which of the following is not an advantage of a franchise?

	a.	The franchisee gets business advice from the franchisor.
	b.	The franchisee is able to sell a known, popular product or service.
	c.	The franchisor provides advertising and marketing support.
	d.	The franchisee can be creative in terms of store design and marketing.

1 points

QUESTION 10

Which of the following business strategies would likely include a licensing agreement?

	a.	distributorship
	b.	joint venture
	c.	foreign direct investment
	d.	a and b only
	e.	all of the above

1 points

QUESTION 11

How can the parties to a contract create certainty regarding which country's laws will apply to disputes between the parties?

	a.	Include a choice of venue clause
	b.	Include a choice of law clause
	c.	Include a force majeure clause
	d.	Include an arbitration clause

1 points

QUESTION 12

NHC Corp. is a Canadian manufacturer of hockey equipment. Crosby received a new set of hockey pads from his girlfriend for Christmas. When he wore the pads to his hockey game a few days later, he was injured when a puck ripped through the faulty padding and severely bruised his shoulder. What type of claim does Crosby have against NHC?

	a.	Breach of contract
	b.	Trademark infringement
	c.	Assault and battery
	d.	Product liability

1 points

QUESTION 13

Distributors:

	a.	Are empowered to make contracts for the principal.
	b.	Take ownership of the goods.
	c.	Resell the goods on their own account.
	d.	b. and c. only.

1 points

QUESTION 14

Lisa's Lace is a Canadian business considering purchasing a factory in Thailand to produce fabric. Before Lisa's Lace goes ahead with the purchase, they should consider:

	a.	Whether Canada and Thailand have a bilateral investment treaty.
	b.	Whether Canada and Thailand have a trade agreement.
	c.	Whether Thailand actively enforces its laws regarding intellectual property protection.
	d.	All of the above.
	e.	None of the above.

1 points

QUESTION 15

In a trademark infringement case, the most useful remedy for the owner to prevent further improper use of the trademark is generally:

	a.	Accounting.
	b.	Damages.
	c.	Seizure of goods.
	d.	Injunction.

1 points

QUESTION 16

A contract between a seller of goods and a transportation company to ship the goods by air to an airport in the buyer's country is an example of a(n):

	a.	Ancillary (secondary) contract.
	b.	Contract governed by the CISG.
	c.	Primary contract.
	d.	Agency contract.

1 points

QUESTION 17

Which factor will the courts NOT consider when determining the appropriate jurisdiction or applicable law of contract when the commercial contract is silent on the topic of choice of law or governing jurisdiction?

	a.	The nationalities of the parties involved
	b.	The place the contract was made
	c.	The language used in the contract
	d.	The places of business of the parties

1 points

QUESTION 18

If a business promises to send a free holiday gift to a long-time customer but does not charge for this gift:

	a.	The promise of the gift will not make an enforceable contract because there was no intention to form a legally binding obligation.
	b.	The promise of the gift will form an enforceable contract.
	c.	The promise of the gift will not creat an enfoeceable contract because there has been a misrepresentation.
	d.	The promise of the gift will not form an enforceable contract because of a lack of consideration.

1 points

QUESTION 19

Both Mexico and France have ratified the Convention on Contracts for the International Sale of Goods (CISG). A seller in France and a buyer in Mexico enter into a contract for the sale of cheese. If a dispute arises:

	a.	The law of Mexico will apply because the buyer is a Mexican company.
	b.	The CISG will only apply if the contract states that it applies.
	c.	The CISG will apply.
	d.	The law of France will apply because the seller is a French company.

1 points

QUESTION 20

A standby letter of credit is generally used to provide compensation to a purchaser of large-scale services or an owner arranging large-scale projects, to cover losses incurred if the contract is not completed.

	a.	True
	b.	False

1 points

QUESTION 21

Crispy Chicken Takeout makes the best crispy - not fried - chicken in North America. Not even the employees preparing the food know the ingredients that go into the recipe. This is an example of which of the following concepts?

	a.	Copyright
	b.	Patent
	c.	Trade secret
	d.	Industrial design

1 points

QUESTION 22

J's Gym in Toronto, Canada, buys gym and workout equipment from Workout With US, a manufacturer in California, US. To ship the equipment to Toronto, Workout With US pays Tim's Transport, a freight forwarding company, to rent railway containers and arrange shipment by rail. If something goes wrong during shipping and the goods arrive in a damaged state at J's Gym,

	a.	J's Gym can sue the national railway company for breaching their duty of care
	b.	J's Gym can sue Workout With US for breach of contract
	c.	J's Gym can sue the Canadian government because it is the owner of the railway company.
	d.	J's Gym can sue Tim's Transport for damages

1 points

QUESTION 23

When a defendant makes an argument of forum non conveniens, it must convince the court that:

	a.	The parties should apply foreign law.
	b.	There is a different, more appropriate jurisdiction that should resolve the dispute.
	c.	The parties should resolve the dispute through mediation.
	d.	The lawsuit is frivolous.

1 points

QUESTION 24

What is the next step for a plaintiff that has obtained a judgment in a foreign jusrisdiction against a defendant located in Canada?

	a.	a court proceeding, but not a full trial, in any Canadian province
	b.	a court proceeding, but not a full trial, in the Canadian province in which the judgment is to be enforced
	c.	a court proceeding, and a full trial, in the Canadian province in which the judgment is to be enforced
	d.	a court proceeding, and a full trial, in any Canadian province

1 points

QUESTION 25

Which of the following is true about confidential information?

	a.	It is not transferrable.
	b.	It is always owned by the employer.
	c.	An employee can always take confidential information from their current place of business to their next place of employment.
	d.	It is assignable and licensable.

1 points

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