TEST ITEM FILE
Craig Allen
THE LAW AND BUSINESS
ADMINISTRATION IN
CANADA
Fourteenth Edition
J.E. Smyth
University of Toronto
D.A. Soberman
Queen’s University
A.J. Easson
Queen’s University
S.A. McGill
Wilfrid Laurier University
Toronto
Copyright © 2016 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected
by Canadian copyright laws and is provided solely for the use of instructors in teaching their courses
and assessing student learning. Dissemination or sale of any part of this work (including on the
Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants
permission to instructors who have adopted The Law and Business Administration in Canada,
Fourteenth Edition by Smyth, Soberman, Easson, McGill, to post this material online only if the use of
the website is restricted by access codes to students in the instructor’s class that is using the textbook
and provided the reproduced material bears this copyright notice.
, TIF for Smyth: The Law and Business Administrations, Fourteenth Edition
Chapter 1: Law, Society, and Business
1) A simple definition of law would be misleading because law is so
a. bound up with the rule of law.
b. diverse and complex.
c. difficult to define.
d. none of the above
e. all of the above
Answer: b
Diff: 2
Type: MC
Topic: The Role of Law
Skill: Recall
2) We need to have law because it
a. regulates individuals’ interactions with one another.
b. gives the government the power to act for the benefit of society in general.
c. provides an element of certainty in determining contractual and property rights.
d. protects persons, property, and society, and prohibits conduct that society believes is
harmful.
e. all of the above
Answer: e
Diff: 2
Type: MC
Topic: The Role of Law
Skill: Recall
3) The fact that laws that appear to be unjust must still be obeyed suggests that
a. justice is merely the result of the influence of ethics.
b. justice is merely a product of social morals.
c. there is a difference between good laws and bad ones.
d. in reality, we must think of justice as nothing more than the result of our legal system.
e. those who make the laws just do not care.
Answer: d
Diff: 3
Copyright © 2016 Pearson Canada Inc.
1-1
, TIF for Smyth: The Law and Business Administrations, Fourteenth Edition
Chapter 1: Law, Society, and Business
Type: MC
Topic: The Role of Law
Skill: Applied
4) The Canadian legal profession is organized on a provincial basis with each province
having its own “bar” society. However, a member of any provincial bar may appear
before
a. the House of Lords in England.
b. the International War Crimes Tribunal.
c. the Supreme Court of Canada.
d. any Human Rights Tribunal in any province.
e. any Landlord and Tenant Board Tribunal in any province.
Answer: c
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Recall
5) Joe hired Julie, a lawyer, to defend him on assault charges. At their first meeting he
told her the details concerning his involvement in the assault. After a dispute between
Joe and Julie in relation to legal fees, Joe decided to retain a new lawyer. The police
attended at Julie’s office to ask her questions concerning what Joe told her about the
assault. In these circumstances
a. the solicitor/client privilege does not allow Julie to reveal any communications she had
with Joe without his approval.
b. given that the solicitor/client relationship has ended, Julie is at liberty to disclose the
information.
c. the solicitor/client privilege does not extend to admissions by clients of wrongdoing so
communications must be disclosed.
d. Julie is at liberty to disclose any information in relation to the dispute with Joe over
fees but not in relation to communications about the assault.
e. the Canada Evidence Act permits Julie to disclose any information once the retainer
has ended.
Answer: a
Copyright © 2016 Pearson Canada Inc.
1-2
, TIF for Smyth: The Law and Business Administrations, Fourteenth Edition
Chapter 1: Law, Society, and Business
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Applied
6) A compliance officer employed by a business for purposes of monitoring legislative
requirements applicable to the business ensures
a. that outside counsel are hired by the business on a general retainer basis to respond to
urgent matters.
b. that the business complies with all regulatory and legislative requirements to avoid
claims, fines and other possible penalties or sanctions.
c. that probationary employees are screened and monitored appropriately by the business
in the 90 day period.
d. that the business pays outstanding fines.
e. that someone attends on all Small Claims Court matters where outside counsel are not
required.
Answer: b
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Applied
7) When we say that the law is part of every facet of business, we mean that
a. it is central to business interaction with customers, suppliers, competitors, and
government.
b. business cannot succeed without understanding the law.
c. it outlines what we do, how to do it, and what not to do.
d. the failure of businesses to comply with the law may result in criminal, regulatory,
and/or civil liability.
e. all of the above
Answer: e
Diff: 2
Type: MC
Topic: Law and Business
Copyright © 2016 Pearson Canada Inc.
1-3
Craig Allen
THE LAW AND BUSINESS
ADMINISTRATION IN
CANADA
Fourteenth Edition
J.E. Smyth
University of Toronto
D.A. Soberman
Queen’s University
A.J. Easson
Queen’s University
S.A. McGill
Wilfrid Laurier University
Toronto
Copyright © 2016 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected
by Canadian copyright laws and is provided solely for the use of instructors in teaching their courses
and assessing student learning. Dissemination or sale of any part of this work (including on the
Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants
permission to instructors who have adopted The Law and Business Administration in Canada,
Fourteenth Edition by Smyth, Soberman, Easson, McGill, to post this material online only if the use of
the website is restricted by access codes to students in the instructor’s class that is using the textbook
and provided the reproduced material bears this copyright notice.
, TIF for Smyth: The Law and Business Administrations, Fourteenth Edition
Chapter 1: Law, Society, and Business
1) A simple definition of law would be misleading because law is so
a. bound up with the rule of law.
b. diverse and complex.
c. difficult to define.
d. none of the above
e. all of the above
Answer: b
Diff: 2
Type: MC
Topic: The Role of Law
Skill: Recall
2) We need to have law because it
a. regulates individuals’ interactions with one another.
b. gives the government the power to act for the benefit of society in general.
c. provides an element of certainty in determining contractual and property rights.
d. protects persons, property, and society, and prohibits conduct that society believes is
harmful.
e. all of the above
Answer: e
Diff: 2
Type: MC
Topic: The Role of Law
Skill: Recall
3) The fact that laws that appear to be unjust must still be obeyed suggests that
a. justice is merely the result of the influence of ethics.
b. justice is merely a product of social morals.
c. there is a difference between good laws and bad ones.
d. in reality, we must think of justice as nothing more than the result of our legal system.
e. those who make the laws just do not care.
Answer: d
Diff: 3
Copyright © 2016 Pearson Canada Inc.
1-1
, TIF for Smyth: The Law and Business Administrations, Fourteenth Edition
Chapter 1: Law, Society, and Business
Type: MC
Topic: The Role of Law
Skill: Applied
4) The Canadian legal profession is organized on a provincial basis with each province
having its own “bar” society. However, a member of any provincial bar may appear
before
a. the House of Lords in England.
b. the International War Crimes Tribunal.
c. the Supreme Court of Canada.
d. any Human Rights Tribunal in any province.
e. any Landlord and Tenant Board Tribunal in any province.
Answer: c
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Recall
5) Joe hired Julie, a lawyer, to defend him on assault charges. At their first meeting he
told her the details concerning his involvement in the assault. After a dispute between
Joe and Julie in relation to legal fees, Joe decided to retain a new lawyer. The police
attended at Julie’s office to ask her questions concerning what Joe told her about the
assault. In these circumstances
a. the solicitor/client privilege does not allow Julie to reveal any communications she had
with Joe without his approval.
b. given that the solicitor/client relationship has ended, Julie is at liberty to disclose the
information.
c. the solicitor/client privilege does not extend to admissions by clients of wrongdoing so
communications must be disclosed.
d. Julie is at liberty to disclose any information in relation to the dispute with Joe over
fees but not in relation to communications about the assault.
e. the Canada Evidence Act permits Julie to disclose any information once the retainer
has ended.
Answer: a
Copyright © 2016 Pearson Canada Inc.
1-2
, TIF for Smyth: The Law and Business Administrations, Fourteenth Edition
Chapter 1: Law, Society, and Business
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Applied
6) A compliance officer employed by a business for purposes of monitoring legislative
requirements applicable to the business ensures
a. that outside counsel are hired by the business on a general retainer basis to respond to
urgent matters.
b. that the business complies with all regulatory and legislative requirements to avoid
claims, fines and other possible penalties or sanctions.
c. that probationary employees are screened and monitored appropriately by the business
in the 90 day period.
d. that the business pays outstanding fines.
e. that someone attends on all Small Claims Court matters where outside counsel are not
required.
Answer: b
Diff: 3
Type: MC
Topic: Legal Risk Management
Skill: Applied
7) When we say that the law is part of every facet of business, we mean that
a. it is central to business interaction with customers, suppliers, competitors, and
government.
b. business cannot succeed without understanding the law.
c. it outlines what we do, how to do it, and what not to do.
d. the failure of businesses to comply with the law may result in criminal, regulatory,
and/or civil liability.
e. all of the above
Answer: e
Diff: 2
Type: MC
Topic: Law and Business
Copyright © 2016 Pearson Canada Inc.
1-3
