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"Phishing" occurs when

Question 1 options:

	you download free software from the Internet.
	you believe that your bank has requested your personal information, which you supply in an email, only to later learn that the initial email was a scam.
	without your knowledge, a program captures an image of your screen that can be used by an identity thief to collect your personal information.
	you accidently install a virus on your computer when you are downloading music from a website.
	a company sells your personal information without your permission.

Question 2 (1 point)

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A sole proprietorship comes into existence when a person

Question 2 options:

	registers a business name.
	begins to carry on a business.
	obtains a licence for a business.
	pays the fee for registering a business name.
	files articles of incorporation.

Question 3 (1 point)

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Stone entered into an agreement with Star Alarms Inc, a corporation that sells alarm systems for personal residences, under which he would act as an agent for Star to find customers for Star's alarm systems. In the course of his work for Star, Stone learns quite a bit about alarm systems. A friend offers to sell him an alarm system business for commercial buildings, a segment of the market that Star has never pursued. Stone decides that he would like to buy the business. Which of the following is TRUE? Stone's fiduciary duty requires that he

Question 3 options:

	compete fairly with Star.
	refrain from using information from Star except if it will help his business.
	balance the interests of Star against his own self-interest.
	advise Star about this business opportunity only after he has bought the new alarm system.
	tell Star about this opportunity, only pursue this opportunity if Star rejects it with the knowledge that he will pursue it, and keep the information of Star confidential including not using it for his business unless Star consents.

Question 4 (1 point)

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Which of the following is FALSE?

Question 4 options:

	A sole proprietor is exclusively responsible for performing all contracts entered into in connection with the business.
	Sole proprietors must include any income or loss from the sole proprietorship business in their income for income tax purposes.
	A sole proprietor is vicariously liable for torts of employees in the course of the sole proprietorship business.
	A sole proprietor cannot be an employee of the sole proprietorship business.
	A sole proprietorship is a cautious method of forming of business as the proprietor has no legal liability for tort of contract and the proprietorship business is a separate legal entity from the proprietor.

Question 5 (1 point)

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Big and Bad Motors has come out with its newest line of SUV. They market the line under the slogan, "Enjoying the countryside has never been so easy." A group of guerrilla environmentalists, angry about increased exhaust emissions from the SUVs, has started up a billboard campaign with a photo of an SUV in a diseased forest, surrounded by pollution and sick animals. Beneath the photo reads the caption "Destroying the countryside has never been so easy." The owners of Big and Bad Motors decide to take legal action. Which of the following claims is Big and Bad most likely to use?

Question 5 options:

	trademark depreciation
	passing-off
	copyright infringement
	identity theft
	patent infringement

Question 6 (1 point)

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Silken Inc manufactures a wide range of bath products. Its best-selling item is the 1 litre bottle of "Silky Soak" water softener. A large part of the reason for that success is the distinctive and easily recognized bottle in which "Silky Soak" has been sold for many years. Silken Inc recently applied to protect the rights that are connected with the appearance of the "Silky Soak" bottle. That application was, however, rejected. Which of the following is not a good reason to reject the application?

Question 6 options:

	Silken Inc's application was based on the colour of the bottle.
	Silken Inc had successfully applied for the same protection 10 years earlier.
	The unique design of the bottle is purely functional in nature.
	Silken Inc's application was based on the materials used in the bottle.
	The bottle has a distinctive shape.

Question 7 (1 point)

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A company has recently begun to provide online services to consumers. In order to protect itself from the risk of liability, and in order to improve the quality of its services, the company has asked you, as an online consumer protection expert, to provide advice on best practices. Which of the following is TRUE?

Question 7 options:

	The company is legally obligated to comply with the minimum standards established in the Canadian Code for Consumer Protection in Electronic Commerce.
	The Canadian Code for Consumer Protection in Electronic Commerce is a federal statute.
	The company should offer services in only one language in order to avoid the risk of confusion.
	With the exception of the territories, every Canadian jurisdiction has adopted its own version of PIPEDA.
	The company should strictly comply with all of the standards in the Canadian Code for Consumer Protection in Electronic Commerce.

Question 8 (1 point)

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Ten years ago, Tad and Tori created a partnership. At that time, Tad contributed $400,000 in property and Tori contributed $600,000 in cash as capital for the partnership. Two years later, Tori provided $300,000 to the partnership as an interest-free loan. That loan has not yet been repaid. During the entire life of the partnership, Tori performed approximately 60 percent of the partnership's work, while Tad tended to devote much of his time to various charitable causes that were unrelated to the partnership. The partnership has now been dissolved. Sale of the partnership assets produced a fund of $1.2 million. It is necessary to spend $200,000 on debts that the partnership still owes to various creditors. Assuming that the parties have not replaced or modified the default rules applicable to their partnership,

Question 8 options:

	Tori will receive an amount equal to her original contribution and repayment of her loan.
	Tori will receive an amount that reflects the fact that she performed 60 percent of the partnership's work.
	Tad and Tori will receive the same amount.
	A judge will consider all of the circumstances and then exercise a discretion to determine how much each party is entitled to receive.
	Tori will receive $800,000.

Question 9 (1 point)

Within the context of jurisdictional issues and electronic commerce, which of the following statements is TRUE?

Question 9 options:

	Because online communication rarely fails without at least one of the parties knowing of the failure, jurisdiction is not a significant issue for electronic commerce.
	Jurisdiction is usually determined on the basis of the but-for test.
	The effects-based test of jurisdiction focuses on how damage was caused.
	The passive versus active test asks which of the parties first filed official documents in a particular jurisdiction.
	The relevant connecting factors in the real and substantial connection test include the locations of the content provider, the host server, the intermediaries, and the end user.

Question 10 (1 point)

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You have recently gone into business as a consultant, specializing in the area of online consumer protection. As part of your services, you offer a seminar to business owners on how they can prevent identity theft. Which of the following practices will you suggest to your clients?

Question 10 options:

	transacting as a mere conduit
	adopting authentication procedures that collect only necessary personal identifiers
	utilizing an open-access network
	implementing electronic contracting and instantaneous communication
	allowing only one completely unsupervised person in your organization to have access to all personal information, and excluding all others in your organization from such access

Based on the decision in SOCAN v Canadian Association of Internet Providers, which of the following statements is TRUE?

Question 11 options:

	"Caching" is an unacceptable use of the Internet.
	An Internet service provider (ISP) is content-neutral when it does not have knowledge of infringing content and cannot practically monitor the content passing over its network.
	If an ISP knows that customers could potentially infringe copyright through their use of the Internet, the ISP will always be liable for any infringement that occurs.
	ISPs cannot be held responsible for paying royalties.
	Content-neutral ISPs are shielded from all legal liability.

Question 12 (1 point)

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Artemis has entered into a contract with Saskatoon Berry Pies Inc for the supply of pies. After the contract was entered into, Artemis disclosed that he was negotiating the contract on behalf of ABC Food Mart, which operates three grocery stores in Regina, Saskatchewan. Which of the following best describes the situation with respect to the contract?

Question 12 options:

	Saskatoon Berry Pies is not bound to the contract because Artemis did not disclose that he was contracting on behalf of a principal until after the contract was entered into.
	Now that the principal's existence and identity have been disclosed, Saskatoon Berry Pies can hold either ABC or Artemis liable under the contract.
	Artemis cannot be held liable under the contract because he was not contracting on his own behalf.
	Artemis cannot be held liable under the contract but will be liable for breach of warranty of authority.
	Only ABC is liable under the contract to Saskatoon Berry Pies.

Question 13 (1 point)

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Andres has created an online service that allows users to instantaneously distribute documents to hundreds of other people. Which of the following strategies can help him reduce his risk of being held liable for the content distributed by the users of his service?

Question 13 options:

	He should review all documents and edit anything that might be considered offensive.
	He should include a provision in his terms of use warning users that he will monitor every message they distribute through the service.
	He should include a provision in his terms of use allowing him to claim indemnification from a user if he is held liable for something they distributed through the service.
	He should avoid telling users what they can or cannot distribute through the service for fear of infringing their free speech.
	He should not worry about this risk and do nothing as it is not a likely legal hazard of his business.

Question 14 (1 point)

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If you were considering selling $1 million worth of computer equipment to a partnership on credit, which of the following factors would influence your assessment of the ability of the partnership to pay you back?

Question 14 options:

	the value of the personal assets of the individual partners
	whether the individual partners had agreed to indemnify each other against any partnership liabilities that they have to pay individually
	the value of the assets of the partner's spouses
	the value of the personal assets of the employees of the partnership business
	the designations of heirs that the partners had made in their respective wills

Question 15 (1 point)

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A commercial representation agreement

Question 15 options:

	occurs anytime that an agency relationship is created.
	occurs when someone sells goods to a retailer on behalf of a manufacturer.
	is always a type of franchise relationship.
	is always governed by provincial partnership law.
	is no longer legal in Canada.

Question 16 (1 point)

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Which of the following propositions is best supported by the decision in Zhu v Merrill Lynch HSBC?

Question 16 options:

	Customers are entitled to rely on the common sense meaning of a website's online prompts when completing a transaction.
	Customers are NOT entitled to rely on the common sense meaning of a website's online prompts when completing a transaction.
	Customers cannot rely on keystroke errors to cancel a transaction when that transaction involves the purchase or sale of stocks.
	Companies owe customers the same duty to make online transactions readily understandable, regardless of whether the customer might risk losing large amounts of money as a result of a faulty transaction.
	It is the customer's responsibility to confirm the prompts received during online transactions.

Question 17 (1 point)

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Cassandra is the sole shareholder of a corporation, incorporated under the Canada Business Corporations Act, which carries on a grocery store business. Which of the following statements is FALSE?

Question 17 options:

	Cassandra could work as a cashier employed by the corporation.
	If Cassandra was killed in an automobile accident, the corporation would continue to exist.
	Cassandra will pay no tax no matter what the corporation's profits are until some amount is paid to her personally.
	Cassandra does not own any of the specific assets of the corporation.
	Cassandra is personally liable for the debts of the corporation, in all circumstances

Question 18 (1 point)

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Which of the following statements is TRUE?

Question 18 options:

	Registration is mandatory for copyright, but not for patents.
	Registration is mandatory for copyright, but not for trademarks.
	Registration is mandatory for industrial designs, but not for trade secrets.
	Registration is mandatory for trademarks, but not for copyright.
	Registration is mandatory for trade secrets, but not for patents.

Question 19 (1 point)

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Which of the following is not a requirement for a patent?

Question 19 options:

	novelty
	usefulness
	non-obviousness
	a working model
	patentable subject matter

Question 20 (1 point)

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Which of the following statements best describes the "business judgment rule"?

Question 20 options:

	The courts will never find that a business decision by a director or officer is a breach of the duty of care.
	Business decisions are presumed not to be a breach of duty, unless the court does not understand the business rationale for the decision.
	Directors and officers should always exercise their best business judgment in making decisions relating to the corporation.
	The courts will substitute their business judgment for that of directors and officers if doing so makes sense to them.
	Business decisions are presumed not to be a breach of duty so long as they fall within the range of reasonable business alternatives that were available and the process for making the business decision was reasonable.

Which of the following statements is TRUE?

Question 21 options:

	An effective partnership requires a high level of trust and confidence between the partners.
	Partners do not have to worry about individual partners incurring unauthorized liabilities because each partner has a fiduciary duty to act in the best interests of the partnership.
	An indemnification agreement between partners will always be complete protection against unauthorized liabilities.
	A prohibition in a partnership agreement on partners incurring a specific obligation will prevent partnership liability arising if one of the partners tries to commit the partnership to such an obligation.
	Partners have contractual risk to partnership contracts entered into by other partners in the course of the partnership business, but they do not have a similar tort risk.

Question 22 (1 point)

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Acme Inc recently came into existence. Owen is the only officer, Dieter is a director, and Seppo is a shareholder. Which of the following statements is most likely TRUE?

Question 22 options:

	Under normal circumstances, Owen has the absolute power to remove Seppo from the company.
	Dieter was appointed by Owen.
	Owen decides whether or not Seppo will receive a dividend.
	Seppo belongs to a group of people that elected Dieter, or Seppo is the only shareholder and she elected Dieter.
	Seppo and Owen cannot be closely related by blood or marriage.

Question 23 (1 point)

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Maja is negotiating to become a Bread King franchisee with Bread King Inc. Maja is interested in getting a location near her home in Hamilton, Ontario. If Maja becomes a Bread King franchisee, which of the following are TRUE?

Question 23 options:

	Maja will be an agent of Bread King.
	The franchise agreement will likely provide that Maja is not an agent of Bread King.
	Maja could never be an agent of Bread King.
	Bread King will be liable for the acts of Maja in carrying out the franchise business.
	Bread King and Maja will have an agency relationship known as a strategic alliance.

Question 24 (1 point)

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ABC Haulage Inc is a trucking company that knowingly allowed their drivers to operate their trucks without wearing seatbelts. What is the most likely category of criminal offence that has occurred?

Question 24 options:

	A strict liability defense
	An absolute liability defense
	A mens rea offence
	A directing mind offense
	It depends on whether there is a written policy in place

Question 25 (1 point)

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Roxanne is a minority shareholder in Sumner Inc. She is very unhappy with the way that the company is being operated. She therefore intends to express her disapproval and advocate changes at the next annual meeting. She will also be encouraging the other 50 shareholders of Sumner to vote against management's proposals. Which of the following statements is TRUE?

Question 25 options:

	Roxanne is entitled to obtain the minutes of the directors' meetings.
	Roxanne is a dissident shareholder.
	Roxanne can force the corporation to buy back her shares at the same price that she paid for them.
	Roxanne has the right to force the corporation into liquidation.
	Roxanne is not entitled to obtain a list of shareholders from the corporation in any circumstances.

Question 26 (1 point)

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In the absence of some specific contractual requirement, an agency arrangement may be terminated by

Question 26 options:

	the agent giving notice to the third parties it has contracted with for the principal.
	the principal giving notice by newspaper advertisement that the agency relationship is over.
	the principal and agent disagreeing about any issue whatsoever.
	the performance of the agency becoming more difficult than first imagined.
	the principal giving notice to the agent that the agency agreement is terminated.

Question 27 (1 point)

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For several years, Jelena worked as an agent for Vladimir, a hockey player for the St Catharines Blackhawks. Jelena regularly negotiated Vladimir's contracts and agreed to them on his behalf. In August 2009, Vladimir terminated the agency. He had decided that he could negotiate his own contracts. He neglected to tell Jelena or the Blackhawks. In September 2009, Jelena signed a contract on his behalf with the Blackhawks for the 2009-2010 season. Which of the following is TRUE?

Question 27 options:

	The contract is not enforceable by the Blackhawks because Jelena's authority had been terminated.
	The contract is enforceable because, in the absence of notice to the Blackhawks that Jelena's authority had been terminated, she continued to have apparent authority to act for Vladimir.
	The contract is enforceable so long as Jelena negotiated a fair deal for Vladimir.
	The contract is not enforceable because Jelena was no longer acting in the best interests of Vladimir by negotiating the contract after she was terminated as an agent.
	The contract is not enforceable as Jelena was committing fraud by acting without authority, even if her termination had not been communicated to her.

Question 28 (1 point)

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Gordon created DogSearch, an app that allows people to track their dogs' locations on their smartphones via GPS. Gordon initially intended to allow people to use the app for free, but the situation potentially changed when Gordon's brother, Fred, got involved. Fred is a lawyer. He excitedly explained DogSearch prior to a meeting with one of his clients. The client immediately offered a generous price in exchange for Gordon's agreement to license the app and provide technical support for it. Fred purportedly agreed on Gordon's behalf. When Fred eventually told his brother about the offer, however, Gordon said that while he was happy to sell a license, he insisted that another party would have to provide technical support. Which of the following statements is most likely to be TRUE?

Question 28 options:

	The contract has been ratified by Gordon and is therefore binding.
	Gordon has only ratified part of the contract and has therefore accepted none of it.
	The contract cannot be binding because Fred had no authority to contract.
	Gordon will not be able to offer the app for free if he accepted the contract.
	The contract has been ratified only if the company agrees to find another person to do tech support.

Question 29 (1 point)

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Which of the following statements is FALSE?

Question 29 options:

	A proxy is a person appointed to represent a shareholder at a meeting and vote their shares.
	A proxy need not be a shareholder.
	A form of proxy must be sent to each shareholder of a public corporation along with a management proxy circular in connection with each shareholders meeting.
	Shareholders can participate in meetings without attending through a proxy.
	A proxy is a way to transfer ownership of shares.

Question 30 (1 point)

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Zitsaway is the ultimate miracle cream for teenagers. Using a special combination of chemicals, Zitsaway is able to clear up the worst cases of acne. Truman, a 16-year-old with particularly bad acne thought that he had finally found the answer to all his social problems when he began using the cream. Although the cream worked like a charm, at $25 a bottle the cream took up most of his allowance. Truman therefore took the cream to his chemistry lab where he and his teacher managed to identify all the components of the cream. Fortunately, all the components were easily procured and easily combined. Which of the following is TRUE?

Question 30 options:

	Truman may make the cream for personal use. However, he may be infringing the patent as his personal use is not for research but for the patent's commercial purpose.
	Truman may sell the cream to kids at school, so long as he does not mass-market the product.
	Truman must get permission from the patent owner of Zitsaway before making the cream for personal use.
	Truman must buy or license the patent for Zitsaway before manufacturing any for personal use.
	Truman must pay the patent owners of Zitsaway royalties before making the cream for personal use.