subject - commercial law

Question 25 (1 point)

In Eastwood v Kenyon, Eastwood, who was the guardian of Mrs. Kenyon while she was a child, personally borrowed money in order to finance her education and to maintain the estate of which she was the sole heiress. On coming of age, she promised to reimburse him; after her marriage, her husband, Mr. Kenyon, promised Eastwood to pay back the sum, but he did not. Eastwood sued Mr. Kenyon, claiming that Kenyon had a moral duty to honour his promise, but his action failed

Question 25 options:

	Kenyon's promise was not an offer
	Kenyon was morally obligated to pay and this was recognized by the court
	Kenyon had not received any consideration for his promise
	none of the above

Question 26 (1 point)

The famous corporate case Salmon v. Salmon & Co Ltd. stands for the legal principal that:

Question 26 options:

	a shareholder owes no duty to the corporation
	a director is a creditor of the corporation
	a shareholder owes no duty to other shareholders
	the corporation is a distinct separate legal personality from the shareholders of the corporation

Question 27 (1 point)

Saved

A person dies "intestate" when:

Question 27 options:

	he or she dies without signing a will
	he or she dies without a spouse
	he or she dies without heirs
	he or she dies having signed a will

Question 28 (1 point)

The fiduciary duty of directors are:

Question 28 options:

	to act honestly and in good faith with a view to the best interest of the creditors
	to act in good faith with a view to the best interest of the shareholders
	to act in good faith with a view to the best interest of the corporation
	None of the above

Question 29 (1 point)

The right of the mortgagee to exercise a Power of Sale is:

Question 29 options:

	a court action
	found in the deed or transfer
	contained on title insurance
	found in the mortgage itself

Question 30 (1 point)

In Ontario, one incorporates by filing:

Question 30 options:

	Articles of Incorporation
	a shareholder's agreement
	Letters Patent
	a Charter

Question 31 (1 point)

A issuing corporation is also referred to as a:

Question 31 options:

	private corporation
	widely held corporation
	closely held corporation
	none of the above

Question 32 (1 point)

A leasehold estate is:

Question 32 options:

	an interest more than an estate
	a form of life estate
	obtained by Adverse Possession
	none of the above

Question 33 (1 point)

A party to a contract who entered into the contract by way of undue influence may claim:

Question 33 options:

	damages
	rescission
	specific performance
	quantum merit

Question 34 (1 point)

Title Insurance is:

Question 34 options:

	a form of an estate in time
	a policy of insurance that compensates the holder for defects on title
	something a vendor's lawyer does
	a way of searching title

Question 35 (1 point)

The acceptance of an offer to purchase in a real estate transaction creates:

Question 35 options:

	a deed
	a transfer
	a mortgage
	an Agreement of Purchase and Sale

Question 36 (1 point)

Saved

To qualify for recovery, damages must:

Question 36 options:

	a minor breach of contract
	be foreseeable to the parties at the time the contract is formed
	a major breach of contract
	be foreseeable to the parties at the time of the breach

Question 37 (1 point)

If a party to a contract is the victim of an Innocent misrepresentation he or she may:

Question 37 options:

	sue for an injunction
	sue for rescission of the contract
	sue for damages
	sue for specific performance

Question 38 (1 point)

A covenant requiring the owner of the land to refrain from certain conduct or certain use of land is called:

Question 38 options:

	a restrictive covenant
	an easement
	adverse possession
	a right of way

Question 39 (1 point)

The oldest method of incorporation is:

Question 39 options:

	the Letters Patent System
	Royal Charter
	Articles of Incorporation
	none of the above

Question 40 (2 points)

You are an investment advisor at the Royal Bank of Canada. A 30-year old comes in to see you for advice investing their life savings of $500,000.00. They tell you they have a high risk tolerance and want to see their investment grow. Your advice will must likely be:

Question 40 options:

	purchase secured bonds in the Royal Bank of Canada
	purchase common shares in the Royal Bank of Canada
	purchase bonds in a local gold mining company
	purchase unsecured bonds in the Royal Bank of Canada

Question 41 (1 point)

Dividends:

Question 41 options:

	are a method by which corporations returns profits to employees
	are a method by which corporations return profits to shareholders
	are a method by which corporations return profits to directors
	none of the above

Question 42 (1 point)

Concurrent holders of land each of whom have no right of survivorship is called a:

Question 42 options:

	easements
	tenancy in common
	joint tenancy
	life estates

Question 43 (1 point)

All business corporations must have:

Question 43 options:

	some kind of shares
	preferred shares
	bonds and debentures
	bonds

Question 44 (1 point)

An officer of a corporation would be a:

Question 44 options:

	director
	valet parking attendant
	vice-president
	a cleaning lady

Question 45 (1 point)

Saved

The fee simple is:

Question 45 options:

	as close to complete ownership as the law allows
	Adverse Possession
	a Life Estate
	a Charge

Question 46 (1 point)

An unilateral offer is:

Question 46 options:

	an offer of a promise in return for an act
	a contract
	not an offer at all
	an invitation to treat

Question 47 (1 point)

Saved

A sale of a mortgage by the mortgagee is called:

Question 47 options:

	an assignment of mortgage
	a discharge of mortgage
	a deed of conveyance
	a charge

Question 48 (1 point)

The declaration of dividends:

Question 48 options:

	is done by a resolution of the Board of Directions
	is done by the accountant/auditor of the corporation
	is done by a resolution of the shareholders
	is done by a resolution of the majority of shareholders

Question 49 (1 point)

Saved

Preferred shareholders:

Question 49 options:

	rank ahead of common shareholders on a liquidation
	aren't entitled to dividends
	rank ahead of secured bondholders on a liquidation
	rank ahead of unsecured bondholders on a liquidation

Question 50 (2 points)

Sally and Bob have just entered into a contract to buy a house. In order to finance the purchase, they signed a mortgage for $300,000.00 on June 1 with a local Property Bank that registered the mortgage on June 12. To furnish the house, they took out another mortgage with Up-Town Credit Union for $25,000.00. This mortgage was signed on June 9 and registered the same day. Unknown to the other two lenders, Sally and Bob took out a third mortgage with a friend, Jim for $25,000.00 on June 5, which was registered on June 11. What is the order of propriety of the mortgages?

Question 50 options:

	Up-Town Credit Union, Property Bank, Jim
	Property Bank, Up-Town Credit Union, Jim
	Jim, Property Bank, Up-Town Credit Union
	Up-Town Credit Union, Jim, Property Bank
	Property Bank, Jim, Up-Town Credit Union