Quiz: Quiz 1
QUESTION 2
Which of the following is an advantage of using ADR?
A.
Sets a binding precedent
B.
Speedy resolution
C.
Lengthy process
D.
Ensures full disclosure
QUESTION 2
The custom of following already decided cases is called:
A.
a civil law system.
B.
a common law.
C.
ultra vires.
D.
stare decisis.
Sumanthra, an accountant, prepared financial statements for ZeeTech Ltd. A cutting edge
technology company, ZeeTech was actively seeking private investment in order to finance a new
electronics device. Despite the fact that Sumanthra followed Generally Accepted Accounting
Principles (GAAP) and International Financial Reporting Standards (IFRS), the statements she prepared
were misleading. Arif and Alena, both potential investors, relied on the statements Sumanthra had
prepared. As a result of their reliance, Arif and Alena both invested in ZeeTech and lost a considerable
sum of money. Independently, Arif and Alena decided to sue Sumanthra for their financial loss. Which of
the following is true?
A.
Sumanthra will not escape liability because accountants are automatically liable for losses arising from
the use of financial statements they prepare.
B.
Sumanthra has nothing to worry about, because an accountant who follows GAAP and IFRS could not
have breached the standard of care.
C.
Sumanthra will not escape liability simply because she followed GAAP and IFRS.
D.
Sumanthra has nothing to worry about, because negligence requires proof of more than mere financial
loss.
, The provincial government thought that the only way to make businesses competitive with those from
other countries was to make more information available to them about market conditions, currencies, etc.,
around the world. It began a program of incentives that included a government office that would give
people not only the business information but also advice on how the businesses could link up to
the government's database that held the updated information. Mr. Su relied on some information given to
him by Alex Chec, an employee of the government. The information was wrong due to a mistake made by
an operator entering data. It was Mr. Chec's job to cross-check that information before it was released to
the public. He forgot to do it. Mr. Su suffered a $100,000 loss because of the error. Which of the following
is true?
A.
The court must find only one party liable and that party must pay for all of the damages.
B.
The operator may be found liable for negligence if Su, the plaintiff, can prove, among other things, that he
owed him a duty of care.
C.
Mr. Su could not take any action because he had not entered into a contract with the government for this
information.
D.
Mr. Su could not take any action because he suffered no physical injury. The case only deals with
information.
Which of the following statements best describes solicitor-client privilege?
A.
The lawyer is the only expert a client should consult.
B.
It is the duty of the lawyer to keep the information provided by the client confidential.
C.
The lawyer makes the legal decisions for the client.
D.
The lawyer must follow the client's instructions, even if they are illegal in nature.
Which of the following is a true statement?
A.
If the odour from a neighbour's smokehouse made it impossible for you to use your pool, the proper
action would be private nuisance.
B.
If a person were given a blood transfusion after making it clear that she didn't want one, the cause of
action would be negligence.
C.
If falling over boxes wrongfully left in his garage by a delivery company injured a person, the cause of
action could be breach of contract.
D.
If a person suffers a loss because a salesman knowingly made a false statement that he knew the other
would rely on to his detriment, the cause of action could be defamation.
QUESTION 2
Which of the following is an advantage of using ADR?
A.
Sets a binding precedent
B.
Speedy resolution
C.
Lengthy process
D.
Ensures full disclosure
QUESTION 2
The custom of following already decided cases is called:
A.
a civil law system.
B.
a common law.
C.
ultra vires.
D.
stare decisis.
Sumanthra, an accountant, prepared financial statements for ZeeTech Ltd. A cutting edge
technology company, ZeeTech was actively seeking private investment in order to finance a new
electronics device. Despite the fact that Sumanthra followed Generally Accepted Accounting
Principles (GAAP) and International Financial Reporting Standards (IFRS), the statements she prepared
were misleading. Arif and Alena, both potential investors, relied on the statements Sumanthra had
prepared. As a result of their reliance, Arif and Alena both invested in ZeeTech and lost a considerable
sum of money. Independently, Arif and Alena decided to sue Sumanthra for their financial loss. Which of
the following is true?
A.
Sumanthra will not escape liability because accountants are automatically liable for losses arising from
the use of financial statements they prepare.
B.
Sumanthra has nothing to worry about, because an accountant who follows GAAP and IFRS could not
have breached the standard of care.
C.
Sumanthra will not escape liability simply because she followed GAAP and IFRS.
D.
Sumanthra has nothing to worry about, because negligence requires proof of more than mere financial
loss.
, The provincial government thought that the only way to make businesses competitive with those from
other countries was to make more information available to them about market conditions, currencies, etc.,
around the world. It began a program of incentives that included a government office that would give
people not only the business information but also advice on how the businesses could link up to
the government's database that held the updated information. Mr. Su relied on some information given to
him by Alex Chec, an employee of the government. The information was wrong due to a mistake made by
an operator entering data. It was Mr. Chec's job to cross-check that information before it was released to
the public. He forgot to do it. Mr. Su suffered a $100,000 loss because of the error. Which of the following
is true?
A.
The court must find only one party liable and that party must pay for all of the damages.
B.
The operator may be found liable for negligence if Su, the plaintiff, can prove, among other things, that he
owed him a duty of care.
C.
Mr. Su could not take any action because he had not entered into a contract with the government for this
information.
D.
Mr. Su could not take any action because he suffered no physical injury. The case only deals with
information.
Which of the following statements best describes solicitor-client privilege?
A.
The lawyer is the only expert a client should consult.
B.
It is the duty of the lawyer to keep the information provided by the client confidential.
C.
The lawyer makes the legal decisions for the client.
D.
The lawyer must follow the client's instructions, even if they are illegal in nature.
Which of the following is a true statement?
A.
If the odour from a neighbour's smokehouse made it impossible for you to use your pool, the proper
action would be private nuisance.
B.
If a person were given a blood transfusion after making it clear that she didn't want one, the cause of
action would be negligence.
C.
If falling over boxes wrongfully left in his garage by a delivery company injured a person, the cause of
action could be breach of contract.
D.
If a person suffers a loss because a salesman knowingly made a false statement that he knew the other
would rely on to his detriment, the cause of action could be defamation.
