Question 1(1 point)

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How does Canadian contract law protect minors and mentally incapacitated individuals?

Question 1 options:

By providing that only certain types of contracts are enforceable against minors and those who lack mental capacity

By requiring the courts to approve their contracts

By ensuring both groups are represented by guardians when entering into contracts

By ensuring that they cannot enter into legally binding contracts

Question 2(1 point)

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What is meant by the term "merchantable quality"?

Question 2 options:

The value declared or known to the buyer at the time.

The price paid determines the reasonableness of quality.

The value of goods corresponds with their description.

A reasonable quality, considering the description of the goods.

Question 3(1 point)

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Why is the distinction between employment and an independent contractor important?

Question 3 options:

An employee can bind the employer in a contract he enters into on behalf of the employer.

An independent contractor cannot be sure that she will be paid.

Employees can withdraw their services

An employer may be held responsible for torts committed by the employee

Question 4(1 point)

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What is the legal effect of a financing condition in an offer to purchase real estate?

Question 4 options:

There is no contract until the vender provides the seller with financing.

The lender must approve the price, deposit, and method of payment.

The transaction will not proceed unless the buyer's lender grants a mortgage.

The lender will be given control of the money needed to complete the deal.

Question 5(1 point)

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Which of the following would likely not be enforceable if included in an employment contract?

Question 5 options:

A carefully worded restrictive covenant but without time or geographical limitations.

A provision for what will happen if duties are changed in the future.

A duty of confidentiality

Provisions for retirement

Question 6(1 point)

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ABC Inc. is issuing 10,000 new shares to raise money for its upcoming expansion. What is the name for this type of financing?

Question 6 options:

Interim financing

Debt financing

Conditional financing

Equity financing

Question 7(1 point)

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Jasmine is the sole shareholder of FashionPlusYou Inc., which is planning to borrow $100,000 from the bank to finance a second store location. What is Jasmine's legal position should FashionPlusYou Inc. default on the loan?

Question 7 options:

She can be personally sued by the bank but only if FashionPlusYou Inc. defaults on the loan.

She and the corporation are not jointly liable for the debt.

She and the corporation are jointly and severally liable for the debt.

She has no personal liability with respect to the debt.

Question 8(1 point)

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What is the policy rationale for contractual quantum meruit?

Question 8 options:

The parties' intention to impose a penalty should be upheld.

It is not the intention of the parties that goods or services are provided for free.

Parties who fail to document their contracts should nonetheless be bound by their promises.

The assistance provided by implied terms is sporadic and uncertain.

Question 9(1 point)

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Which of the following statements more accurately describes an employee rather than a independent contractor?

Question 9 options:

The person is an essential part of an employer's organization.

The person provides his or her own tools.

The person has a high level of financial risk.

The person determines his or her own work schedule.

The person is free to represent others in the same business.

Question 10(1 point)

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Abby purchased a ring from an online vendor which unfortunately gave her a severe rash.The online description of the ring stated it was made of hypoallergenic materials. According to the Sale of Goods Act, why will the merchant likely have to accept the return of the product?

Question 10 options:

The buyer relied on the description of goods by the seller.

The buyer made the intended use known at the time of purchase.

The seller refused the opportunity to compare goods with a sample.

Title to the ring had passed to the buyer.

Question 11(1 point)

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At what point will title to goods pass to the buyer when the contract involves the sale of future or unascertained goods?

Question 11 options:

When the goods are delivered.

When the goods are unconditionally appropriated to the contract.

When the goods come into existence.

When the goods are accepted by the buyer.

Question 12(1 point)

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What is the legal term for the legal interest considered to be the closest to full ownership in real property?

Question 12 options:

Deeded title

Tenancy in common

Fee simple

Joint tenancy

Question 13(1 point)

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The decisions of the Supreme Court of Canada are best described as:

Question 13 options:

always appeals from the Federal Court of Canada

binding only on the government

limited to constitutional matters

a binding on all other courts in all Canadian jurisdictions

Question 14(1 point)

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Which legislature in Canada is composed of the House of Commons and the Senate?

Question 14 options:

the Parliament of Canada

the Legislative Assembly

the Supreme Court of Canada

the House of Assembly

Question 15(1 point)

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Which of the following is an implication of the utmost good faith nature of insurance contracts?

Question 15 options:

The insurer is a fiduciary to the insured

The insured has a duty to disclose

The insurer may subrogate

The insured is a fiduciary to the insurer

Question 16(1 point)

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Raphael saw Fabco Electronics Inc.'s ad in a newspaper advertising that the store had new laser printers for sale for the price of $75. Unfortunately, the store was sold out by the time Raphael arrived at the store with $75, and he now wants to sue Fabco for breach of contract, claiming he accepted their offer by arriving at the store and tendering his payment of $75.Why will Raphael's breach of contract claim be unsuccessful?

Question 16 options:

Because the store's ad did not constitute an offer to Raphael

Because the offer lapsed due to the passage of time

Because the offer expired when the store ran out of printers

Because the store was not able to actually supply him with a printer

Question 17(1 point)

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I visit my adult son at his house for Thanksgiving. When deep-frying the turkey outside, I burn down the deck. Due to this concept, if he collects from his insurer, the insurer can collect from me:

Question 17 options:

indemnity

subrogation

duty to disclose

insurable interest

Question 18(1 point)

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Which of the following would NOT constitute property?

Question 18 options:

A right of citizenship

A better business method for online retail services to make the online shopping experience much more user friendly for your customers

A promissory note

The recipe for Kentucky Fried Chicken

Question 19(1 point)

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Which of the following are exclusively areas of federal jurisdiction under the Canadian Constitution?

Question 19 options:

currency, trade, national defence

criminal law, administration of justice, hospitals

administration of justice, trade, education

interprovincial trade and commerce, highway regulation, licensing

Question 20(1 point)

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Which of the following is a duty required of an agent?

Question 20 options:

Abide by the terms of the agency agreement.

Indemnify the principal for agency business losses.

Pay the principal for services rendered.

Reimburse the principal for out-of-pocket expenses.