Question 26(1 point)

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What is a standard form contract?

Question 26 options:

An agreement where the parties to the agreement negotiate the timing of delivery of the contract only.

An agreement where the parties negotiate the costs and liability of the contract only.

An agreement where one party mostly dictates the terms and the other party either takes or leaves the terms of the contract.

An agreement where the parties negotiate all terms and conditions of the contract.

Question 27(1 point)

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Which of the following is true about a liquidated damages clause?

Question 27 options:

The contracting parties set an amount to be paid where a specified breach of contract occurs.

The contracting parties are not permitted to set an amount to be paid where a specified breach of contract occurs.

The contracting parties can rely on automatic enforcement by the courts.

The contracting parties agree to a variable amount to be paid where a specified breach of contract occurs.

Question 28(1 point)

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Which of the following best describes the effect of a "condition subsequent" in a contractual agreement?

Question 28 options:

The contract will terminate when a specified event or circumstance occurs.

The contract will only fail if the parties have a financial agreement that exceeds $1.5 million.

The contract will not terminate if the parties fail to perform their obligations specified under the contract.

The contract will continue if the parties agree to overlook a condition subsequent.

Question 29(1 point)

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What does an indemnity clause in a contract provide?

Question 29 options:

Only where the losses and expenses incurred by one party is below $500,000 will the other party be liable.

Any losses or expenses incurred by one party will be shared by both parties.

Any losses or expenses incurred by one party will be paid for by the other party.

Only where the losses and expenses incurred by one party exceeds $500,000 will the other party be liable.

Question 30(1 point)

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Which of the following are reasons that a contract might be unenforceable?

Question 30 options:

Undue influence, failure to obtain independent legal advice, misrepresentation, and economic duress

Representation, economic duress, undue influence, and unconscionability

Economic duress, undue influence, misrepresentation, and unconscionability

Representation, failure to obtain independent legal advice, misrepresentation, and economic duress

Question 31(1 point)

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Which of the following is not a way for an offer to terminate?

Question 31 options:

Lapse

Revocation

Counteroffer

Warranty

Question 32(1 point)

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The breach of a condition in a contract allows for which of the following remedies?

Question 32 options:

The non-breaching party can terminate the contract and/or sue for damages.

The non-breaching party is only entitled to sue for damages.

The non-breaching party can terminate the contract only if the subject is rare or unique.

The non-breaching party can sue for only damages that are less than $500,000.

Question 33(1 point)

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Which of the following is not a type of partnership?

Question 33 options:

Franchise partnership

Limited partnership

Limited liability partnership

General partnership

Question 34(1 point)

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Which of the following is not an advantage of forming a partnership?

Question 34 options:

Partners avoid legal liability for the business's debts.

Creation of partnership does not require the payment of fees.

Creation of a partnership does not require the filing of documentation.

Partners each have the right to participate in the profits of the business.

Question 35(1 point)

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Amir and Sebastian are partners in a general partnership selling graphic design services. Sebastian has invested significantly more money in the business than Amir, but Amir has greater responsibility for decision-making. Their business is run out of an office space they rent in Calgary. They do not have a partnership agreement; it can thus be said that Amir and Sebastian have joint and several liability, which means:

Question 35 options:

Amir, as the partner with the greatest responsibility, will receive most of the profits.

All the profits and losses will be shared equally by Amir and Sebastian.

Amir and Sebastian divide liability equally and are also both liable for the firm's actions.

Sebastian, as the partner with the highest financial share in the business, will be liable for all losses.

Question 36(1 point)

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Which of the following best describes a corporation?

Question 36 options:

Agents operating businesses independently of each other.

Two or more people carrying on an unincorporated business.

Members or officers carrying on a business that is a separate legal entity.

An individual owning and running a business.

Question 37(1 point)

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Who is responsible for the day-to-day running of the corporation?

Question 37 options:

The auditors

The shareholders

The officers

The directors

Question 38(1 point)

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The landmark case ofSalomon v Salomon & Co Ltdestablished that:

Question 38 options:

All shareholders are liable for the debs of a corporation

The shareholders with the largest amount of personal assets will be liable for all a corporation's debts

A corporation and its shareholders are jointly and severally liable for the corporation's debts

A corporation is a separate legal entity from its shareholders

Question 39(1 point)

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In the context of a legal agency relationship, who is the principal?

Question 39 options:

A person who can act on behalf of another person without authority

A person who has the authority to act on behalf of another person

A person who is completely responsible for the acts of another person

A person who gives authority to another person to act on their behalf

Question 40(1 point)

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Which of the following is not a basic characteristic of a principal-agent relationship?

Question 40 options:

An agent's representation of the principal will never be binding.

An agent must represent a principal fairly.

An agent has actual or apparent authority to represent and bind a principal in contract.

An agent must act in the best interest of the principal while representing them.

Question 41(1 point)

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Which of the following is not an example of how a business can secure a good deal with a financial institution?

Question 41 options:

Using the largest financial institution available because they will inevitably offer the best deals.

Attempting to negotiate the terms of an account agreement.

Shopping around for the financial institution that provides a variety of services at a range of costs and on different terms.

Avoiding signing an account agreement unless the business representatives fully understand the terms.

Question 42(1 point)

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What does it mean to say that a borrower "gives collateral"?

Question 42 options:

The lender has a property interest in the event that the borrower defaults on the loan.

The borrower has a priority property interest in the event that the borrower defaults on a loan.

The lender has no property interest in the event that the borrower defaults on the loan.

A party other than the borrower or the lender has a property interest in the event that the borrower defaults on the loan.

Question 43(1 point)

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Which of the following is the best legal definition for an "act of bankruptcy"?

Question 43 options:

Payment of debts

Ability to obtain debt financing

Inability to pay debts

Creditor recovery of debts

Question 44(1 point)

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A receiving order:

Question 44 options:

Petitions a court to declare that a debtor sin default

Petitions a court to declare that a debtor is in default

Appoints a trustee in bankruptcy to obtain repayment consent from the debtor

Appoints a trustee in bankruptcy to take control of a banrupt's property

Question 45(1 point)

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Which of the following is the most correct definition of common law?

Question 45 options:

law made by judges

law made by municipal governments

law made by Parliament

law made by provincial legislatures

Question 46(1 point)

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Khalid has three grown children, none of whom live with him.His domestic worker, Martha, is absolutely devoted to him and has done an excellent job of looking after his home for 12 years.He would like to ensure that the lives in the home for her lifetime after he is deceased.He would like his children to later inherit the property.What would be the best arrangement?

Question 46 options:

A fee simple

A leasehold

An easement

A life estate

Question 47(1 point)

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All of the following are remedies available to commercial landlords, except:

Question 47 options:

Forfeiture

Distress

Exclusive possession

Action for payment

Question 48(1 point)

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An insurance policy is a contract that describes the types of losses covered as well as the reasons why the insurer may deny coverage.

Question 48 options:

TrueFalse

Question 49(1 point)

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Negotiation and mediation work best when there is a fairly equal balance of power between the parties.

Question 49 options:

TrueFalse

Question 50(1 point)

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Which of the following are intentional torts?

Question 50 options:

Defamation, assault and battery, and false imprisonment

Negligence, strict liability, vicarious liability, and occupiers' liability

Occupier's liability, negligence, and nuisance

Product liability, professional negligence, and nuisance