The Law and Business Administration in Canada 14th Edition Study Guide – J.E. Smyth | Practice MCQs with Explanations | Complete Chapter Review

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Test Bank for Law and
Business Administration in
Canada by Smyth et al. |
Complete Q&A Guide

,1 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
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a. bound up with the rule of law. j j j j j j




b. diverse and complex. j j




c. difficult to define. j j




d. none of the above j j j




e. all of the above
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Answer:b j j




Diff: 2 j j




Type:MC j




Topic:TheRoleofLaw Skill:
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Recall

2) We need to have law because it
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a. regulates individuals’ interactions with one another. j j j j j




b. gives the government the power to act for the benefit of society in general.
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c. provides an element of certainty in determining contractual and property rights.
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d. protects persons, property, and society, and prohibits conduct that society believes is
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harmful.
e. all of the above
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Answer:e j j




Diff: 2 j




Type: MC j




Topic:TheRoleofLaw Skill:
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Recall

3) The fact that laws that appear to be unjust must still be obeyed suggests that
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a. justice is merely the result of the influence of ethics.
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b. justice is merely a product of social morals. j j j j j j j




c. there is a difference between good laws and bad ones.
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d. in reality, we must think of justice as nothing more than the result of our legal system.
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e. those who make the laws just do not care.
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Answer:d j j




Diff: 3 j




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,2 TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter 1:
j j j j j j j j j j j




Law, Society, and Business j j j j




Type: MC j




Topic:TheRoleofLaw Skill: j j j j j j




Applied


4) The Canadian legal profession is organized on a provincial basis with each province
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having its own “bar” society. However, a member of any provincial bar may appear
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before
a. the House of Lords in England.
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b. the International War Crimes Tribunal.
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c. the Supreme Court of Canada.
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d. any Human Rights Tribunal in any province.
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e. any Landlord and Tenant Board Tribunal in any province.
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Answer:c j j




Diff: 3 j j




Type:MC j




Topic:LegalRiskManagement j j j j




Skill: Recall j




5) Joe hired Julie, a lawyer, to defend him on assault charges. At their first meeting he told
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her the details concerning his involvement in the assault. After a dispute between Joe and
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Julie in relation to legal fees, Joe decided to retain a new lawyer. The police attended at
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Julie’s office to ask her questions concerning what Joe told her about the assault. In these
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circumstances
a. the solicitor/client privilege does not allow Julie to reveal any communications she had with
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Joe without his approval.
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b. given that the solicitor/client relationship has ended, Julie is at liberty to disclose the
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information.
c. the solicitor/client privilege does not extend to admissions by clients of wrongdoing so
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communications must be disclosed. j j j




d. Julie is at liberty to disclose any information in relation to the dispute with Joe over fees
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but not in relation to communications about the assault.
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e. the Canada Evidence Act permits Julie to disclose any information once the retainer has
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ended.


Answer: a j




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, 3 TIF for Smyth: The Law and Business Administrations, Fourteenth Edition Chapter 1:
j j j j j j j j j j j




Law, Society, and Business j j j j




Diff: 3 j j




Type:MC j




Topic: LegalRiskManagement j j j j




Skill: Applied j




6) A compliance officer employed by a business for purposes of monitoring legislative
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requirements applicable to the business ensures j j j j j




a. that outside counsel are hired by the business on a general retainer basis to respond to
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urgent matters. j




b. that the business complies with all regulatory and legislative requirements to avoid
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claims, fines and other possible penalties or sanctions.
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c. that probationary employees are screened and monitored appropriately by the business in
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the 90 day period.
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d. that the business pays outstanding fines.
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e. that someone attends on all Small Claims Court matters where outside counsel are not
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required.


Answer:b j j




Diff: 3 j j




Type:MC j




Topic:LegalRiskManagement j j j j




Skill: Applied j




7) When we say that the law is part of every facet of business, we mean that
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a. it is central to business interaction with customers, suppliers, competitors, and
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government.
b. business cannot succeed without understanding the law. j j j j j j




c. it outlines what we do, how to do it, and what not to do.
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d. the failure of businesses to comply with the law may result in criminal, regulatory,
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and/or civil liability. j j




e. all of the above
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Answer:e j j




Diff: 2 j




Type: MC j




Topic: Law and Business j j j




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