Short Answer

1.- Yolanda comes to you seeking your legal advice. She wishes to start a clothing company along with her friends Navdeep and Chris. All three had met at George Brown College where they initially came up with the idea 2 years ago. The clothing line will focus on garments for boutique women's clothing shops.

Yolanda wants to know how the business should best be set up. Please explain to Yolanda the three main forms of business organization - sole proprietorship, partnership, and incorporation. In your answer please identify the benefits and drawbacks of each of these forms of business organization. Explain which form of business organization you think is best for Yolanda, Navdeep and Chris

Would you change your answer if Yolanda has $50,000 dollars in debt which will continue to grow as she pursues graduate studies. Navdeep has assets of $12,500 and Chris has continuing debts of $15,000 in student loans and continues to accumulate gambling debts in the belief that this is the best way for him to pay of his $15,000 student loan?

1.T / F Partners receive a regular salary

2.T / F In a purchase and sale agreement only the vendor can determine what may be included in the agreement

3.T / F An estate plan can alter the common law presumption with respect to inheritance rights upon the death of a spouse

4.T / F A sole proprietorship is a corporation with one shareholder

5.T / F A child of a divorce is limited to those children conceived during the period of marriage

6.T / F A partner in an LLP can have their name on the name of the partnership

7.T / F A partnership can hire employees on terms that limit the liability of the partners for the employee's actions

8.T / F Child support is based solely upon income

9.T / FI can keep my pet cobra Karl as a pet in Toronto

10.T / F Fiduciary duties exist only where it is made explicit in a contract

11.T / F A life estate allows the holder to make modifications for the betterment of the property

12.T / F An ownership in land is known as a fee advanced

13.T / F In an unequal relationship the Unjust Enrichment Act governs how relationships are governed by the courts

14.T / F 8 children versus 6 will increase the rate of child support required under Federal law

15.T / F Any shareholder can stand for the role of director

1.Which of the following would not be considered unjust enrichment

a.Raising a child

b.Carrying out day to day chores

c.Taking clothes to the dry-cleaner

d.Handling day-to-day business needs of the household such as payment of bills

2.Which of the following would not be considered a duty of a director or manager?

a.To declare a dividend even if the company is insolvent

b.Responsible for certain taxes and deductions

c.Responsible for certain unpaid wages

d.Responsible for environmental damage

3.An individual might have a claim for wrongful dismissal under which of the following circumstances?

a.I continually fail at performing professional development activities

b.I regularly ignore customers because I am too busy flirting with the restaurant's bartender despite repeated complaints about this matter

c.I refuse to shave my sideburns off despite no complaints other than that of my manager

d.I go out during my break to smoke marijuana with a customer

4.Which of the following would not be considered a security?

a.A licensed insurance policy

b.A certificate of interest in an oil, natural gas or mining lease

c.Any commodity futures contract or any commodity futures option that is not traded on a commodity futures exchange recognized under the Competition Act

d.Stocks or bonds

5.Which of the following is NOT an element of contract formation?

a.Consideration

b.Duty of care

c.Meeting of the minds

d.Offer

e.Acceptances

6.Which of the following would legally enforceable right to access another's land?

a.A courtesy pass to provide mail pick-up

b.An easement

c.An open covenant

d.A restrictive covenant

7.Which of the following is most correct respecting corporations

a.Directors report to shareholders

b.Officers report to managers

c.Shareholders respond to the creators of the corporation

d.Managers report to partners

8.Which of the following is true of confidential business information?

a.Information that is widely known in the industry can be protected through intellectual property rights

b.An invention must be entirely original in order to be considered eligible for protection under intellectual property law

c.Registration of intellectual property rights is enforced on a province by province basis

d.An employee cannot rely on the information once they leave their position of employment

9.In a partnership what would not be considered a right of a partner?

a.To avoid liabilities for the actions of their partners

b.To dissolve the partnership without notice if the business relationship breaks down

c.To buy the shares of other partners at a negotiated value

d.To deny the existence of a partnership agreement

10.Which of the following would NOT apply to possession of property?

a.Title to property must be lawfully acquired

b.Possession is considered 9/10ths of the law

c.A prior owner who acquired property through illegal means does not have any prior claim to property

d.A person who is aware of a prior owner may take possession but must protect it in the best interest of the known owner

11.Which of the following would NOT be considered a benefit of union membership?

a.It comes with a cost with respect to union dues

b.It will not provide protection to all members

c.You may opt out of union membership in all workplaces

d.The union helps negotiate some benefits that employees might not otherwise obtain

12.Which of the following activities is a corporation PREVENTED (by statutes or by-laws) from carrying out?

a.Creating other corporations

b.Buying or selling other business organizations at a price that the corporation deems fit by buying up shares in the other organization

c.Forcing minority shareholders to accept a merger at an agreed upon price by the board of directors

d.All of the above

13.Roberta asks her neighbor Eric to find her dog. If he does so she will pay him $100. This is an example of one of the following?

a.A bilateral contract

b.An invitation to treat

c.An offer

d.A gratuitous promise

e.A unilateral contract