Test Bank - Contemporary Business, 4th Canadian Edition by Boone
Appendix B
BUSINESS LAW
CHAPTER LEARNING OBJECTIVES
LO B.1 Identify the seven kinds of laws that form the core of business law and
describe how they affect businesses.
Business law includes contract law and the law of agency; sales law and negotiable
instruments law; property law and the law of bailment; trademark, patent, and copyright
law; tort law; bankruptcy law; and tax law. Contract law is the legal foundation on which
business dealings are conducted. A contract is a legally enforceable agreement between
two or more parties regarding a specified act or thing. Contracts can also cover an
agency relationship: when one party appoints another party (an agent) to enter into
contracts on their behalf. Sales law is the law governing the sale of goods or services for
money or on credit. Negotiable instruments law governs the use of negotiable
instruments: commercial paper that is transferrable among individuals and businesses,
such as a cheque. Property law determines the rights of owners of property: tangible
personal property, such as equipment; intangible personal property, such as mortgages;
and real property, or real estate. The law of bailment deals with the surrender of
personal property by one person to another when the property is to be returned at a later
date. Trademarks, patents, and copyrights provide legal protection by giving a firm the
exclusive right to use its key business assets. The law of torts applies to a tort, a civil
wrong inflicted on another person or on another person’s property, such as libel. In the
event of bankruptcy—legal non-payment of financial obligations—bankruptcy law
protects both creditors and debtors. Tax law governs the obligations of businesses to
collect and pay various kinds of taxes to governments, such as income and sales taxes.
Complete Chapters (Chap 1 to 18) Plus Appendix B,C,D,E
test banks are included with answers.
Copyright © 2023
, 3-2
TRUE-FALSE STATEMENTS
1. The Canadian court system exists only at the federal level.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal System and Administrative Agencies
AACSB: Analytic
2. Common law is those laws that result from judicial decisions.
Answer: True
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal System and Administrative Agencies
AACSB: Analytic
3. Contract law is the legal foundation for business dealings.
Answer: True
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: The Core of Business Law
AACSB: Analytic
4. A trademark protects written or printed materials such as books, designs, and
cartoons.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Trademarks, Patents, and Copyrights
Copyright © 2023
,3-3 Test Bank for Boone & Kurtz Contemporary Business, Fourth Canadian Edition
AACSB: Analytic
5. Under voluntary bankruptcy, creditors request that a party be judged bankrupt.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Bankruptcy Law
AACSB: Analytic
6. Tax law affects businesses and business owners only.
Answer: False
Bloomcode: Knolwedge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Tax Law
AACSB: Reflective Thinking
Copyright © 2023
, 3-4
MULTIPLE CHOICE QUESTIONS
7. How is the court system organized?
a) federal and supreme courts
b) federal and provincial
c) federal, provincial, and supreme
d) federal, provincial, and local levels
Answer: d
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal and Administrative Agencies
AACSB: Analytic
8. Generally the provincial courts deal with ______ case(s).
a) criminal
b) minor criminal and civil
c) civil
d) human rights
Answer: b
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal System and Administrative Agencies
AACSB: Analytic
9. A property law ruling would typically come from the ______ court.
a) municipal
b) provincial
c) federal
d) Supreme
Answer: b
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal System and Administrative Agencies
AACSB: Analytic
Copyright © 2023
Appendix B
BUSINESS LAW
CHAPTER LEARNING OBJECTIVES
LO B.1 Identify the seven kinds of laws that form the core of business law and
describe how they affect businesses.
Business law includes contract law and the law of agency; sales law and negotiable
instruments law; property law and the law of bailment; trademark, patent, and copyright
law; tort law; bankruptcy law; and tax law. Contract law is the legal foundation on which
business dealings are conducted. A contract is a legally enforceable agreement between
two or more parties regarding a specified act or thing. Contracts can also cover an
agency relationship: when one party appoints another party (an agent) to enter into
contracts on their behalf. Sales law is the law governing the sale of goods or services for
money or on credit. Negotiable instruments law governs the use of negotiable
instruments: commercial paper that is transferrable among individuals and businesses,
such as a cheque. Property law determines the rights of owners of property: tangible
personal property, such as equipment; intangible personal property, such as mortgages;
and real property, or real estate. The law of bailment deals with the surrender of
personal property by one person to another when the property is to be returned at a later
date. Trademarks, patents, and copyrights provide legal protection by giving a firm the
exclusive right to use its key business assets. The law of torts applies to a tort, a civil
wrong inflicted on another person or on another person’s property, such as libel. In the
event of bankruptcy—legal non-payment of financial obligations—bankruptcy law
protects both creditors and debtors. Tax law governs the obligations of businesses to
collect and pay various kinds of taxes to governments, such as income and sales taxes.
Complete Chapters (Chap 1 to 18) Plus Appendix B,C,D,E
test banks are included with answers.
Copyright © 2023
, 3-2
TRUE-FALSE STATEMENTS
1. The Canadian court system exists only at the federal level.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal System and Administrative Agencies
AACSB: Analytic
2. Common law is those laws that result from judicial decisions.
Answer: True
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal System and Administrative Agencies
AACSB: Analytic
3. Contract law is the legal foundation for business dealings.
Answer: True
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: The Core of Business Law
AACSB: Analytic
4. A trademark protects written or printed materials such as books, designs, and
cartoons.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Trademarks, Patents, and Copyrights
Copyright © 2023
,3-3 Test Bank for Boone & Kurtz Contemporary Business, Fourth Canadian Edition
AACSB: Analytic
5. Under voluntary bankruptcy, creditors request that a party be judged bankrupt.
Answer: False
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Bankruptcy Law
AACSB: Analytic
6. Tax law affects businesses and business owners only.
Answer: False
Bloomcode: Knolwedge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Tax Law
AACSB: Reflective Thinking
Copyright © 2023
, 3-4
MULTIPLE CHOICE QUESTIONS
7. How is the court system organized?
a) federal and supreme courts
b) federal and provincial
c) federal, provincial, and supreme
d) federal, provincial, and local levels
Answer: d
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal and Administrative Agencies
AACSB: Analytic
8. Generally the provincial courts deal with ______ case(s).
a) criminal
b) minor criminal and civil
c) civil
d) human rights
Answer: b
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal System and Administrative Agencies
AACSB: Analytic
9. A property law ruling would typically come from the ______ court.
a) municipal
b) provincial
c) federal
d) Supreme
Answer: b
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify the seven kinds of laws that form the core of business law
and describe how they affect businesses.
Section Reference: Legal System and Administrative Agencies
AACSB: Analytic
Copyright © 2023
