You are very excited as you enter the car lot to purchase your first new vehicle. You have your heart set on a red one. After lots of negotiation you sign a contract for a small red vehicle. You return to the lot 2 weeks later to pick up your new vehicle and are surprised to see a small rusty brown car. You are not happy and the dealer tells you that the rust brown is a type of red and that is what your contract states. You tell him the contract is wrong and you walk away. You can successfully sue for breach if you can show that the colour red was:

An implied warranty

A condition precedent

A warranty

A condition

Which of the following is NOT a method of carrying on business?

Partnership

Partnership of corporations

Joint Venture

Sole Proprietorship

You want your new company to move toward cashless transactions. You know that this method has grown enormously in Canada and you feel confident that it will work for you. Which of the following statementsis falsewith respect to cashless transactions?

E-banking has reduced the use of chequesin Canada

Merchants pay a fee to a card issuer to participate in electronic payments

Credit cards are protected by the Bills of Exchange Act

Debit cards are not protected by the Bills of ExchangeAct

Which of the following is an example of a breach of fiduciary duty?

Director operates a business in competitionwith the corporation

Officers refuse to declare dividends

Directors refuse to declare dividends

Shareholder operates a business in competition with the corporation

Which of the following may NOT be grounds for dismissal?

Being late for work

Using alcohol at work

Using drugs at work

Disobeying a supervisor

When a debtor voluntarily gives his property over to a trustee in bankruptcy,this is referredto as a (n)

Assignment into bankruptcy

Fraudulent conveyance

Act of bankruptcy

Fraudulent preference

Which of the following is NOT a negotiable instrument?

Bill of sale

Certified cheque

Promissory note

Cheques

When a bailor's goods are not returned or are returned in a damaged condition, the:

Baileewill not be liable if it was a gratuitous bailment as there was no consideration

Bailee'sliability will be limited by the existence of an exemption clause

Bailormust satisfy the court that the standard of care was not maintained

Bailormust prove that a bailmentexisted and show his loss

Dick agreed to paint Jane's house for $4,000, inside and out. Normally, it would have cost Jane $6,500 but Dick felt sorry for her because she was a single mother with four children and not much money, so he decided to give her a good deal. When Dick had painted everything except the kitchen ceiling, Arthur asked him to go on a fishing holiday, and Dick, who was rather irresponsible, decided he had done enough painting. He left a note for Jane saying "You've had more than your money's worth with what I've done already. I'll expect your cheque for $4,000 to be at my office when I return in two or three weeks." Which of the following statements is correct?

a.The court will order specific performance of the contract and Dick will have to complete the painting for the agreed upon $4000.00

b.Dick abandoned the contract before he had completed performance and is not entitled to any money since he has breached the contract.

c.Dick is entitled to the full amount of $4000.00since he has,in fact,done at least $4000.00worth of work and he should get that on a quantum meruitbasis

d.Dick is entitled to $4000.00less what it cost Jane to finishhaving the kitchen ceiling painted, since he has substantially performed the contract.

In which of the following is a chattel given as security by a debtor to a creditor?

A business person borrows $25,000.00from the bank a signs a personal guarantee

A musician takes his guitar to the consignment shop

A musician pawns his electric guitar

A business person assigns his personal inventory to the bank where he borrowed $25,000.00