LGST 369 Commercial Law EXAM TIPS QUESTIONS AND ANSWERS NEW UPDATE Athabasca University, Exams of Commercial Law

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LGST 369 Commercial Law EXAM TIPS QUESTIONS AND ANSWERS NEW UPDATE Athabasca University

LGST 369 Commercial Law EXAM TIPS QUESTIONS AND ANSWERS NEW UPDATE Athabasca University Ashvin was chased by two security officers. When they finally caught up to him, the security guards tackled Ashvin. When the police officers asked Ashvin to empty his pockets, he removed his wallet, car keys, loose change, and a Swiss Army knife. The security officers told the police that Ashvin had stolen the knife from their store and the police charged him. Ashvin was acquitted. When one of the security guards was cross-examined during the trial, he admitted that they had originally believed Ashvin had stolen a pair of jeans. When the police failed to find the jeans on Ashvin, the security personnel had alleged he had stolen the knife to cover up their error. In this situation, Ashvin may be able to sue the security guards and their employer using all of the following torts except one. Which tort would not be relevant? -Assault. -False imprisonment. -Malicious prosecution. -Nuisance. Nuisance. Perhaterm-1ps the most important reason for business people to study law is -To manage risk effectively. -To explore a second career option. -To become better citizens. -To avoid having to hire a lawyer because lawyers are expensive. To manage risk effectively. Managing risk effectively is perhaps the most important reason for business people to study law. What are the four basic strategies for managing risks? -Avoidance, reduction, shifting, acceptance. -Avoidance, reduction, incorporation, acceptance. -Avoidance, reduction, shifting, limitation. -Avoidance, insurance, shifting, acceptance. Avoidance, reduction, shifting, acceptance. Which of the following is NOT a common risk management technique for businesses? -Hiring at least one employee who is a lawyer.

-Incorporating the business. -Writing exclusion and limitation clauses in contracts. -Obtaining insurance. Hiring at least one employee who is a lawyer. Some businesses are large enough to have an in-house lawyer, but most are not. Exclusion and liability clauses in contracts -Change the usual rules of liability. -Guarantee limited liability for incorporated businesses. -Prevent a business from getting insurance protection for mistakes. -Make it unnecessary to get expert legal advice. Change the usual rules of liability. Limited liability is -Not an effective risk management strategy. -A very important benefit of incorporating a business. -The primary reason a business gets insurance coverage. -A concept that applies only to lawyers and other professionals. A very important benefit of incorporating a business. Which one of these does NOT fit into the general category of public law? -Income tax evasion. -Gender discrimination in pay. -Criminal fraud charges. -Breach of contract for defective work on your house. Breach of contract for defective work on your house. Which one of the following situations is NOT primarily affected by the law of contract? -A lawsuit involving the firing without justification of an employee. -An agreement between three family members operating a business as a partnership. -A lawsuit against a truck driver who negligently caused a multi-vehicle collision. -Failure by the seller of a property to disclose to a buyer that there are problems with the septic system. A lawsuit against a truck driver who negligently caused a multi-vehicle collision.

A motor-vehicle collision is primarily affected by the law of tort. Which of the following is NOT within the law-making powers of the federal government? -Banks and money. -Intellectual property. -Criminal law. -Contract law and tort law. Contract law and tort law. Contract and tort law are within the law-making powers of the provincial governments. The Canadian Charter of Rights and Freedoms does NOT contain -Freedom of mobility. -Freedom of expression. -Equality rights. -Property rights. Property rights. The concept of common law could refer to each of the following EXCEPT -A legal system developed in England. -The primary legal system used in the province of Quebec. -The primary legal system used in nine of the ten Canadian provinces. -A source of law in Canada The primary legal system used in the province of Quebec. The legal system in Quebec is based on civil law. It is important for business people to have a basic understanding of business-related legal principles because -Knowing basic legal principles can help business people to evade their legal responsibilities. -The difference between winning and losing in business often depends upon the ability to make good legal choices. -Some business people and customers are also lawyers. -It is important to know how to sue your competition to put them out of business. The difference between winning and losing in business often depends upon the ability to make good legal choices.

You have drafted a letter accusing an ex-employee of a criminal act, but you realize that this may give your ex-employee grounds for a defamation suit. In relation to the risk management process, you have -Responded to the risk. -Avoided the risk. -Evaluated the risk. -Identified the risk. Identified the risk. Identifying the risk is the first step in risk management. Now you will move on evaluation and response. Which one of the following options is NOT a recommended risk management strategy? -Avoiding serious risk altogether. -Accepting low-risk situations as a normal aspect of doing business. -Transferring risk to others, where feasible. -Reducing risk by taking reasonable precautions. Avoiding serious risk altogether. It is not usually possible to avoid all serious risk in business. You are the manager of a bar where alcohol is served. Which of the following actions is NOT part of a risk-reduction program for the bar? -Arranging for alternative transportation for customers who may have drunk too much. -Ensuring that managers will back up the decisions of servers to stop serving alcohol to a customer. -Having all customers sign an agreement stating that the bar is not liable for any injuries caused by excessive drinking. -Requiring all servers to take training on how to recognize and respond to a risk of excessive drinking. Having all customers sign an agreement stating that the bar is not liable for any injuries caused by excessive drinking. Which of the following statements is FALSE? -A limitation-of-liability clause may attempt to exclude liability only for certain acts or types of losses. -A limitation-of-liability clause may attempt to limit the amount of compensation available. -A limitation-of-liability clause may attempt to exclude all risk of liability. -A limitation-of-liability clause may attempt to prevent the customer from hiring a lawyer. A limitation-of-liability clause may attempt to prevent the customer from hiring a lawyer.

Some limitation clauses do attempt to limit the amount of compensation. Which of the following statements is TRUE? -Insurance is often an unwise investment for a small business. -Insurance transfers the financial risk of business mistakes to the insurance company. -Most businesses can insure themselves by setting aside enough cash to cover potential lawsuits. -There is no insurance coverage available for most business mistakes Insurance transfers the financial risk of business mistakes to the insurance company. Which statement is the best general definition of the word "law"? -A law is a rule that can be enforced by the courts, plus certain moral rules. -A law is a rule that can be enforced by the courts. -A law is a rule, including a moral rule, that guides human conduct. -A law is any rule. A law is a rule that can be enforced by the courts. Which of the following administrative tribunals is NOT normally relevant to a national cell-phone company? -Canadian Radio-television and Telecommunications Commission (CRTC). -Canadian Human Rights Tribunal. -Competition Tribunal. -National Energy Board (NEB). National Energy Board (NEB). XYZ Corporation owns commercial property and rents it to retail stores. Which areas of public and private law would normally apply? -Contract law for entering into a lease and taxation law for payment of property tax. -Property law for ownership of the land and constitutional law for payment of the rent. -Contract law for entering into a lease and criminal law if a tenant tries to break the lease. -Administrative law for terminating the lease and property law for ownership of the land. Contract law for entering into a lease and taxation law for payment of property tax. Owning and leasing a commercial property involves aspects of both public law and private law. Ethel carelessly ran into a customer's car while operating a forklift in the loading zone adjacent to the parking lot at Acme Manufacturing Ltd. As a result, the manager of Acme fired Ethel and deducted an amount equal to the damage caused from Ethel's final paycheque. This situation

-Involves elements of tort and contract law. -Is a good example of intellectual property law. -Fits best within the category of criminal law. -Is a matter of public law only. Involves elements of tort and contract law. The collision with the customer’s car involves elements of tort law, and Ethel’s employment involves elements of contract law. Livent Corporation hired financial auditors who did not properly perform their duties. As a result, the company lost money. In this situation -Livent can sue the auditors either for breach of contract, or for negligence, or for both. -Livent cannot sue the auditors. -Livent can sue the auditors only for breach of contract. -Livent can sue the auditors only for the tort of negligence. Livent can sue the auditors either for breach of contract, or for negligence, or for both. Sometimes a person who has received poor professional advice may have the option to sue both for breach of contract and for the tort of negligence. Which of the following statements is most accurate? -It is possible to use the courts to challenge the validity of a law created by either the federal or provincial government on the basis that the government has acted outside the law-making power given to it by the Constitution. -The federal government can enact any law it wants because Canada does not have a written Constitution. -Federal paramountcy means that the federal government can change the Constitution's division of law-making powers, even if the provinces don't agree. -A majority of the provincial and territorial governments can vote to take away any of the federal government's powers affecting business and consumers. It is possible to use the courts to challenge the validity of a law created by either the federal or provincial government on the basis that the government has acted outside the law-making power given to it by the Constitution. Federal and provincial laws can be challenged in court if someone believes they are not authorized by the Constitution.

The Constitution permits provinces to levy only a "direct" tax, which is expected to fall on the taxpayer rather than being passed on to someone else. Which of the following taxes is an "indirect tax" and therefore outside the authority of a provincial government? -Gasoline tax. -Liquor surcharge. -Income tax. -Sales tax. Liquor surcharge. As shown in the Kingstreet Investments case, a liquor surcharge is an indirect tax because the business owner will pass it along to customers. Since the Canadian Charter of Rights and Freedoms is part of the Constitution, any law that is inconsistent with it will be -Protected by the notwithstanding clause. -Subject to federal paramountcy. -Subject to parliamentary supremacy. -Deemed to have no force or effect. Deemed to have no force or effect. The Charter, as part of the Constitution, is the supreme law of Canada, so any law inconsistent with it is of no force or effect. The Canadian Charter of Rights and Freedoms -Protects people applying for jobs with private businesses from discrimination in hiring. -Governs the relationship between individuals and government. -Protects the property rights of Canadian citizens and businesses. -Provides special protections for Canadian corporations and other private businesses. Governs the relationship between individuals and government. The Irwin Toy and RJR MacDonald cases are both examples of a business -Suing the government for breach of contract. -Going to court to challenge legislation.

-Lobbying the government to pass legislation. -Suing the government for negligence. Going to court to challenge legislation. The term "common law" can be confusing because it has at least three meanings. Which of the following meanings is NOT correct? -"Common law" can refer to rules created by judges. -"Common law" can refer to legal concepts that are popular or commonly believed to be correct. -"Common law" can refer to a certain kind of court. -"Common law" can refer to legal systems that can be traced to England. "Common law" can refer to legal concepts that are popular or commonly believed to be correct. Which of the following statements is FALSE? -Because the Quebec legal system uses civil law, its court decisions are not relevant to the rest of Canada. -Nine of the ten provinces in Canada use a common law system. -Quebec is the only province in Canada that uses a civil law system, based on the Napoleonic Code. -The common law system was developed in England and is used in Australia, New Zealand, and most of the United States. Because the Quebec legal system uses civil law, its court decisions are not relevant to the rest of Canada. This statement is false because some types of laws are the same across Canada, including Quebec. Which of the following statements is TRUE? -Equity no longer plays an important role in our legal system. -Equity was developed by the same courts that developed the common law. -Equity was developed to ease the harshness of the common law. -After the fusion of common law and equity, there is no longer any significant distinction them. Equity was developed to ease the harshness of the common law. The common law rules sometimes produced rigid or harsh results. You contributed financially to the purchase of your home, even though the registered title to the property is only in the name of your spouse. In this situation, if your spouse sold the property without consulting you, he or she

-Would have to share the profits from the sale with you because of a principle of equity related to trusts. -Could keep all the profits because you had requested the title only be in your spouse's name so, as a couple, you wouldn't lose the house if your business was successfully sued. -Could keep all the profits because of common law principles. -Could keep all the profits from the sale because of the way the title is registered. Would have to share the profits from the sale with you because of a principle of equity related to trusts. What legal mechanism allows a group of individuals to take on a large organization for purposes of litigation? -Contingency fee agreements. -Alternative dispute resolution. -Examinations for discovery. -Class action lawsuit. Class action lawsuit. Which of the following is NOT an advantage of being represented by a lawyer? -A lawyer is governed by a regulatory body and a code of conduct. -A lawyer can give advice on the strength of your case and on the evidence you need to gather. -A lawyer can negotiate on your behalf to try to reach a settlement of your claim. -A lawyer provides insurance that guarantees you will be paid by the other side if you win your case. A lawyer provides insurance that guarantees you will be paid by the other side if you win your case. Which of the following is a reason why you may not be able to collect a judgment from a defendant, even if you have won your claim in court? -The court said the defendant put forward some good arguments. -The defendant's only asset is her or his income from employment. -The defendant has only physical assets like a home, car, or computer. -The defendant has no assets and no income. The defendant has no assets and no income. When a party to a dispute rejects a reasonable settlement offer and the matter goes to trial, that party now runs the risk that -The judge may act as a mediator. -The judge may refer the case to arbitration.

-The judge may award costs. -The judge may refuse to hear the claim. The judge may award costs. A court may award additional costs against a losing party that has rejected a reasonable settlement offer. One way to encourage your lawyer to settle a claim quickly and cheaply would be to -Issue a statement of claim. -Issue a statement of defence. -Issue a counterclaim. -Enter into a contingency fee arrangement. Enter into a contingency fee arrangement. A contingency fee is an arrangement in which a lawyer is paid only if the claim is successful. For legal disputes involving a relatively small amount of money, the most appropriate court would be -Court of appeal. -Small claims court. -Superior court. -Tax court. Small claims court. Small claims court is designed to hear small claims quickly and inexpensively. Small claims courts are very popular with business people because small claims courts -Are usually faster, simpler, and less expensive than regular courts. -Are able to offer a wider variety of remedies than the regular courts. -Are able to deal with disputes under the federal Income Tax Act. -Allow large claims to be split into smaller claims. Are usually faster, simpler, and less expensive than regular courts. Which of the following courts would you be least likely to appear in if you are seeking equitable relief, such as an injunction? -Superior court.

-Small claims court. -Court of appeal. -Federal trial court. Small claims court. Small claims courts do not have jurisdiction to offer equitable relief. Which of the following statements about the court hierarchy is NOT true? -The Federal Court of Appeal hears appeals from the Tax Court of Canada. -A superior court is higher than an appeal court. -There is no appeal from the Supreme Court of Canada. -A superior court is higher than a provincial court. A superior court is higher than an appeal court. A court must follow the decisions of any other court that is above it in the court hierarchy. This rule is known as -The rule of hierarchies. -The rule of law. -The doctrine of precedent. -The Supreme Court of Canada. The doctrine of precedent. The doctrine of precedent requires a court to follow the decisions of a higher court. What is the best description of an administrative tribunal? -A body created by statute that resolves issues and disputes in administrative law. -A form of alternative dispute resolution that includes both mediation and arbitration. -A court when it is deciding administrative law issues. -Any decision-making body, other than a court, staffed by judges. A body created by statute that resolves issues and disputes in administrative law. Which of these is NOT a form of alternative dispute resolution? -An Aboriginal sentencing circle. -Small claims court. -Negotiation. -Arbitration.

Small claims court. You are putting forward an argument in favour of alternative dispute resolution (ADR). Which of the following is NOT an advantage of ADR? -ADR is usually more adversarial. -ADR is usually quicker. -ADR is usually less costly. -ADR is usually more private. ADR is usually more adversarial. ADR is usually less adversarial than litigation, because the parties are there voluntarily and are open to a resolution. Louise recently discovered that her bank has mistakenly been charging her a service charges on each debit and chequing transaction, despite the fact that she pays a monthly fee to avoid such charges. The bank has told her that this was due to a computer glitch that affected hundreds of customers at the same branch. While they were prepared to restore the $38 that was taken out in the most recent month, the bank has told Louise that it is her responsibility to let the bank know of errors within 30 days of receiving her monthly statement. They have refused to refund the $86, $45, and $ mistakenly taken from her account two, three, and four months ago. In this situation -It may be worthwhile for Louise to consult a lawyer about starting a class action lawsuit. -Louise may be sued by the bank for defamation -It would not be worthwhile -Louise can start her own class action in Small Claims Court. It may be worthwhile for Louise to consult a lawyer about starting a class action lawsuit. Xavier was involved in a single-vehicle car accident when one of his snow tires burst, causing him to lose control of his nearly new truck. The truck slid into a culvert, resulting in $8000 in damage to the vehicle and an increase in Xavier's insurance premiums. Shortly after the incident, Xavier noticed an article in the local newspaper about a lawyer who was considering launching a class action lawsuit on behalf of his client and others who had suffered harm due to exploding tires. The manufacturer of the tires that Xavier had on his vehicle was specifically named as the source of the defective tires. In this situation, Xavier should -Contact the lawyer who is considering the class action lawsuit. -Write to the tire manufacturer's head office and demand compensation. -Immediately start his own lawsuit against the tire manufacturer in Small Claims Court. -Refuse to buy any more of this manufacturer's tires a Contact the lawyer who is considering the class action lawsuit.

The Law Society of each province is responsible for all of the following EXCEPT -Helping clients negotiate the fees that lawyers will charge. -Stipulating the type of work that can be done by lawyers and paralegals. -Maintaining and enforcing professional codes of conduct for lawyers. -Ensuring that lawyers have the appropriate academic credentials. Helping clients negotiate the fees that lawyers will charge. Which of the following statements is TRUE? -It is impossible to find a lawyer who will help you sue another lawyer for carelessness. -Lawyers are protected by provincial and territorial laws from being sued by their own clients. -Lawyers are covered by professional liability insurance for errors they make in representing a client. -Lawyers and paralegals have the same educational requirements. Lawyers are covered by professional liability insurance for errors they make in representing a client. What is the normal order in which pleadings are filed? -Statement of claim, statement of defence, reply. -Demand for particulars, reply, statement of claim. -Statement of claim, reply, demand for particulars. -Examination for discovery, statement of claim, statement of defence. Statement of claim, statement of defence, reply. Often there can be a long lapse between filing the pleadings and a trial. What may be happening during this period? -The parties hold examinations for discovery, and perhaps settlement negotiations. -The plaintiff files a statement of claim and the defendant files a statement of defence. -Witnesses appear so the judge can assess their credibility. -The winning party attempts to collect on the judgment. The parties hold examinations for discovery, and perhaps settlement negotiations. Which of the following statements is TRUE? -If you win a lawsuit against a business but the defendant can't pay, the manager or CEO may be sent to debtor's prison. -It may be a bad idea to start a lawsuit if the defendant has little income and few assets. -If you win a lawsuit but the defendant can't pay, the government will pay the amount of the judgment.

-If you win a lawsuit but the defendant can't pay, you may make a claim against your lawyer's professional liability insurance. It may be a bad idea to start a lawsuit if the defendant has little income and few assets. Jaroslav is sure that he is going to win his case against a former business partner. His lawyer agrees that it's very likely, but cautions Jaroslav that it still might not be worthwhile to file a lawsuit. One reason for the lawyer's caution might be -The defendant has a good lawyer. -The defendant has money, but doesn't own a home. -The defendant is bankrupt. -The defendant lives in another province. The defendant is bankrupt. You will only be able to recover the majority of the costs associated with hiring a lawyer to assist you with a lawsuit in which you are involved if -The judge believes that your lawyer is charging you too much. -You win your case convincingly. -You win and the opposing party was very unreasonable in starting or continuing the lawsuit when it should have been settled. -Your lawyer is able to get to court and win your case within two years. You win and the opposing party was very unreasonable in starting or continuing the lawsuit when it should have been settled. Courts will sometimes award additional costs against a litigant who has turned down a reasonable settlement offer. The main purpose of this rule is -To reimburse the court for its additional expense in holding a trial. -To reward the lawyer for the successful litigant. -To encourage litigants to reach reasonable settlements on their own. -To punish the lawyer for the unsuccessful litigant. To encourage litigants to reach reasonable settlements on their own. Six-year-old Zach suffered a serious injury when the plastic on a toy laser gun shattered and shards became embedded in his eye. The toy was produced by Funland Toys Ltd., a major toy manufacturer with its head office in New Brunswick. Zach's mother, Valerie, does not have the money to hire a lawyer to start a lawsuit. In this situation -The provincial Law Society will provide a lawyer for Valerie and Zach.

-Valerie does not need to hire a lawyer because the liability of Funland Toys -Ltd. is obvious and so she can represent herself. -Valerie may be able to hire a lawyer for a contingency fee, deferring any payment until the lawsuit is successfully settled. -The provincial government will provide a lawyer for Valerie and Zach. Valerie may be able to hire a lawyer for a contingency fee, deferring any payment until the lawsuit is successfully settled. Which of the following is a DISADVANTAGE of a contingency fee agreement? -Contingency fees allow people who otherwise could not afford a lawyer to have their day in court. -Contingency fees are illegal in most provinces. -The client pays only if the claim is successful. -If the claim is successful, the client may end up paying much more than if the client had paid an hourly rate. If the claim is successful, the client may end up paying much more than if the client had paid an hourly rate. Which one of the following statements is NOT an accurate comparison of trial courts and appeal courts? -Most trials and appeals are decided by a single judge. -Trial judges decide the facts of the case and apply the law to the facts, while appeal judges are more concerned with legal errors. -Trial courts listen to evidence from witnesses, while appeal courts listen primarily to arguments from lawyers. -As long as the trial judge has acted reasonably, appeal judges are reluctant to overturn the trial decision. Most trials and appeals are decided by a single judge. Which of the following is NOT a trial court? -Alberta Court of Queen's Bench -Ontario Court of Appeal -Nova Scotia Supreme Court -Quebec Superior Court Ontario Court of Appeal If you have a claim that is $5000 above the limit for the small claims court, you might still file a claim in that court if you

-Reduce your claim to the court's limit. -Ask the superior court to order the small claims court to hear your claim. -Apply to the small claims court for an exception. -Split your case into two separate claims. Reduce your claim to the court's limit. Which of these disputes is NOT appropriate for Small Claims Court? -A homeowner sues a renovation company for faulty installation of a window. It will cost about $ to replace the window and repair the water damage caused by a leak. -A student sues her roommate for failing to pay her share of the utilities in their apartment. -A credit card company sues a customer for not paying an account of $4500. -A passenger sues the driver of a car after a collision in which the passenger is severely injured. A passenger sues the driver of a car after a collision in which the passenger is severely injured. According to court hierarchy and the doctrine of precedent, if a decision has been rendered in a provincial superior court and the provincial trial court of the province is subsequently considering a case involving a similar set of facts, -The provincial court will be bound by the superior court decision. -The provincial court will not be influenced by the superior court decision. -The provincial court will be influenced by the superior court decision. -The provincial court will not be bound by the superior court decision. The provincial court will be bound by the superior court decision. Which of these statements is FALSE? -A provincial trial court must follow the decisions of the Court of Appeal in the same province. -A provincial court must follow the decisions of a superior court in another province. -A court does not have to obey a court that is below it in the hierarchy, but does have to obey a court that is above it. -A provincial Court of Appeal must follow the decisions of the Supreme Court of Canada. A provincial court must follow the decisions of a superior court in another province. Which of the following is NOT an administrative tribunal? -Human Rights Tribunal -Tax Court of Canada

-Canadian International Trade Tribunal -Competition Tribunal Tax Court of Canada Which of the following statements about administrative tribunals is FALSE? -When making decisions that affect people's rights, tribunals are said to be court-like or "quasi- judicial." -Tribunals cover a broad range of subject areas and their procedures are generally more flexible and less detailed than in a court. -Tribunals are usually staffed by people with specialized knowledge and extensive experience. -Tribunals are independent bodies and their decisions cannot be reviewed by the courts. Tribunals are independent bodies and their decisions cannot be reviewed by the courts. Which of the following statements about alternative dispute resolution is FALSE? -A mediator can be useful to help parties who are having trouble negotiating on their own. -A party that is unhappy with an arbitration decision can proceed to litigation. -Parties can conduct negotiations through their lawyers. -Business people routinely settle their differences by negotiation. A party that is unhappy with an arbitration decision can proceed to litigation. Which of these is NOT a valid reason for a business to use alternative dispute resolution (ADR) rather than the courts? -ADR is usually quicker than using the court system. -ADR involves its own set of precedents that bind future disputes using this process. -The parties to arbitration can agree there is no right to appeal. -The dispute can be kept private if ADR is used. ADR involves its own set of precedents that bind future disputes using this process. A tort is -A legal expert. -A failure to fulfill a private obligation imposed by law. -A fancy French pastry. -A defence that can be used if you are sued. A failure to fulfill a private obligation imposed by law.

Which of the following actions is an example of a tort that is also a crime? -Defamation. -Tax evasion. -Breach of contract. -Assault. Assault. One primary difference between obligations in contract and obligations in tort is -In contract law, obligations are public in nature. -In contract law, no previous relationship is required. -In tort law, no previous relationship is required. -In tort law, obligations are public in nature. In tort law, no previous relationship is required. When you are involved in a motor vehicle collision, you may be found liable for tort damages -If you drove carelessly and without proper attention to what was happening around you. -Regardless of fault because motor vehicle collisions involve strict liabiltiy. -Only if you intended to hit the other vehicle. -Only if you have motor vehicle insurance. If you drove carelessly and without proper attention to what was happening around you. Strict liability is very dramatic in theory, but is rare because -It's hard to find a lawyer who will represent a defendant in a strict liability case. -It's usually easier to sue someone for negligence. -In most cases it would be unfair to impose liability on someone who did not intentionally or carelessly cause injury. -Insurance is not available for strict liability torts. In most cases it would be unfair to impose liability on someone who did not intentionally or carelessly cause injury. Some people argue that liability insurance undermines the deterrent effect of tort law. This is because -Organizations and people with insurance may be less careful. -Tort law does not have a deterrent effect. -Organizations and people with insurance cannot be sued. -Only insurance companies can be sued in tort law.

Organizations and people with insurance may be less careful. Employers generally avoid hazardous activities and hire the best people available so as to avoid -Nominal damages. -Injunctions. -Strict liability. -Vicarious liability. Vicarious liability. A car dealership hires a window-washing company to wash the dealership's large showroom windows once each month. One day, the window-washers' van backs into Mohan's vehicle, which is at the dealership for repair. Which of the following statements is FALSE? -Mohan can sue the employee who was driving the window-washing company's van. -Mohan can sue the window-washing company on the basis of vicarious liability. -Mohan can sue the dealership on the basis of negligence. -Mohan can sue the dealership on the basis of vicarious liability. Mohan can sue the dealership on the basis of vicarious liability. What is the most common remedy a judge will award in a successful lawsuit involving torts? -Nominal damages. -Punitive damages. -Compensatory damages. -An injunction. Compensatory damages. Which of the following is NOT a feature of workers' compensation schemes? -Workers' compensation allows workers to receive an income while they are waiting for their tort claim to be decided. -Workers' compensation protects employers from being successfully sued by their employees for injuries on the job. -Workers' compensation provides insurance for employees who are injured on the job. -Workers' compensation usually pays less money to an injured worker than the tort system, but the payment is usually quicker and more certain. Workers' compensation allows workers to receive an income while they are waiting for their tort claim to be decided.

Which of the following typically consists of a failure to fulfill a private obligation that was imposed by law? -Tortfeasor. -Tort. -Criminal. -Crime. Tort. The word "tort" is not used in English very much outside of a legal context. One way to remember it is that it is the same as the French word for "wrong." -Crime. -Injury. -Lawsuit. -Wrong. Wrong. Johan and Zach were involved in a fist fight outside a local bar after Zach loudly questioned Johan's manliness on the bar's dance floor. When one of Johan's punches knocked Zach to the pavement, Johan used the work boots he was wearing to stomp on Zach's head. In this situation -Johan could be charged criminally with assault and sued by Zach, who is likely to use the tort of battery as a basis for the lawsuit. -Johan could be criminally charged with assault, but could not be sued successfully. -Only the bar could be sued for Zach's injuries. Johan would not face the possibility of a lawsuit. -If Johan is acquitted in criminal court, Zach's civil lawsuit would automatically be dismissed. Johan could be charged criminally with assault and sued by Zach, who is likely to use the tort of battery as a basis for the lawsuit. Maria initially borrowed her neighbour Gretchen's brand-new lawnmower. After using it for the past three months, Maria now refuses to return the lawnmower despite repeated requests from Gretchen. This creates the possibility of -Gretchen suing Maria for breach of contract. -Gretchen having no legal recourse because she did nothing for more than 30 days. -Maria facing a criminal charge of theft and being sued by Gretchen for conversion. -Maria being entitled to keep the lawnmower if she pays a minimal amount to Gretchen since the value of the lawnmower has depreciated due to three months of hard usage. Maria facing a criminal charge of theft and being sued by Gretchen for conversion.

Willy's Limousine Service entered into an agreement with the Deathly Hollows to transport them. Due to carelessness on the part of the limousine driver, the vehicle ran out of gas and the band was late for the concert. By then, the venue management had promised to provide full refunds to the crowd. Copps Coliseum has told the band that they will be sued for failing to fulfill their concert obligations. In this situation, the Deathly Hollows -Will have to absorb the full cost of the concert's cancellation themselves as they have no right to sue the limousine service in a situation like this. -Could sue the limousine service in tort, but not for breach of contract. -Will be able to sue Willy's Limousine Service for breach of contract and through the use of the tort of negligence if they have to pay compensation to Copps Coliseum. -Could sue the limousine service for breach of contract, but not using a tort actio Will be able to sue Willy's Limousine Service for breach of contract and through the use of the tort of negligence if they have to pay compensation to Copps Coliseum. Which of the following statements is FALSE? -Contracts are usually enforceable only by the parties to the contract, while tort obligations may exist without any prior relationship. -Damages in contract look backwards, while damages in tort look forwards. -Tort obligations may take someone by surprise, while contract obligations are based on voluntary agreement and so should rarely take someone by surprise. -Tort obligations are imposed by law, while contract obligations are voluntarily created by the parties. Damages in contract look backwards, while damages in tort look forwards. This statement is false because tort damages tend to look backwards, while contract damages tend to look forwards. Which one of these potential lawsuits would NOT need to involve the use of tort concepts to be successful? -Francis was detained by security guards outside a local department store. They took Francis back to their security office and searched Francis' knapsack for stolen goods. No stolen items were found. -Darla has suffered from severe abdominal pain for years. X-rays recently disclosed that a surgeon had carelessly left a sponge behind following an appendix operation performed five years ago. -Mohamed's fancy basement recreation room was flooded when his neighbour's above-ground swimming pool burst. -Adrian's employer fired him without providing any advance notice or reasonable justification for the dismissal. Adrian has worked for this employer for eleven years.

Adrian's employer fired him without providing any advance notice or reasonable justification for the dismissal. Adrian has worked for this employer for eleven years. This case could be decided with contract principles Which of these torts falls within the category of strict liability, rather than being primarily based on an intentional wrong or negligence? -Effram's prize alpaca was shot by a hunter who mistakenly thought it was a deer. -Manuel was knocked from his bicycle and injured by an automobile driver who was distracted by talking on a mobile phone and veered into the bike lane. -A chemical explosion at a neighbouring plastics factory resulted in extensive damage to the exterior of Martha's home and severely aggravated her daughter's asthma. -Arthur was badly injured when two bouncers forcibly removed him from a local pub, knocked him to the pavement, and kicked him repeatedly. A chemical explosion at a neighbouring plastics factory resulted in extensive damage to the exterior of Martha's home and severely aggravated her daughter's asthma. The inherent danger of the factory puts it in the category of strict liability. Carl bought a man-eating tiger and brought it home. He took all reasonable precautions to ensure the tiger could not get out of his back yard. He built a large fence and routinely examined it make sure it was solid and intact. Despite Carl's best efforts, the tiger escaped and ate the neighbour. What category of tort would a court say this falls under? -Criminal tort. -Intentional tort. -Negligence tort. -Strict liability tort. Strict liability tort. A dangerous animal gives rise to strict liability. Tort law may adopt a rule of strict liability in situations where -An activity is inherently very dangerous. -There is a risk of significant loss. -It will be hard for a plaintiff to establish proof of intention or carelessness. -The defendant deliberately caused an injury.

An activity is inherently very dangerous. Strict liability torts are restricted to situations of extraordinary danger. Carl has been found liable for committing an intentional tort. Haley has received a judgment against Carl for $50 000 in compensatory damages. Upon financial discovery it is shown that Carl only has $30

1. In order for Haley to receive the full judgment she would have to -Prove that Carl is impoverished. -Successfully appeal the case to an appeal court. -Take the matter to a different court. -Show that Carl has liability insurance. Show that Carl has liability insurance. Liability insurance may be able to pay the full judgment against Carl. Which of the following statements is the most accurate? -Effective risk management for most businesses includes the protection of liability insurance. -For most businesses, liability insurance is an unnecessary expense. -The widespread use of liability insurance serves as a useful deterrent causing business operators to be more careful in their day-to-day activities. -If you are sued, your insurance company will expect you to pay for your own lawyer. Effective risk management for most businesses includes the protection of liability insurance. Li Ling is a truck driver for ACME Safe & Piano Company. After work, Li took the company truck to go grocery shopping. She lost control of the truck and smashed into a house, injuring the occupant. The occupant is suing both Li and ACME Safe & Piano Company. What do you think the likely outcome might be? -The claimant will likely succeed against ACME but not Li. -The claimant will likely succeed against Li but not ACME. -The claimant will likely not succeed against either defendant. -The claimant will likely succeed against both defendants. The claimant will likely succeed against Li but not ACME. To which of the following situations would vicarious liability NOT apply? -One of the technicians at Quality Repair Inc. failed to tighten the lug nuts on a school bus after replacing one of its tires. The bus driver claims to have lost control when the tire flew off, causing a crash that injured four children.

-The owner of Dazzler's Tavern is concerned that one of her servers may have allowed a customer to leave the Tavern impaired. The customer was involved in a multi-vehicle accident shortly after leaving the premises. -After a part-time clerk in a local grocery store spilled liquid dish detergent on the floor, he failed to clean it up before a customer slipped and fell on it, suffering a concussion. -Fourteen-year-old Danny, while playing with his friends, threw a rock through a massive display window in a neighbourhood car dealership. The dealer is threatening to sue Danny's mother to pay for the damage. Fourteen-year-old Danny, while playing with his friends, threw a rock through a massive display window in a neighbourhood car dealership. The dealer is threatening to sue Danny's mother to pay for the damage. A trucker you hired to make deliveries is involved in a motor vehicle collision, and is sued for careless driving. Which of the following is NOT a relevant factor when the judge is deciding if you are vicariously liable as an employer? -The contract stipulates that the driver is an independent contractor and not an employee. -The driver pays her own income tax and employment insurance. -The driver has a valid driver's licence for that class of truck. -You decide when, where, and how the trucker will drive your vehicle. The driver has a valid driver's licence for that class of truck. You hired Acme Roofing Ltd. to replace the shingles on the roof of your business premises. Unfortunately, one of this contractor's employees carelessly threw bunches of old shingles from the roof into the parking lot below. Some of the shingles punctured the convertible top and windshield of a Mercedes owned by one of your customers. Who might be vicariously liable for the damage? -The Mercedes dealership. -Acme Roofing Ltd. -Your business. -You. Acme Roofing Ltd. If a court awards the plaintiff nominal damages, it is because the court has found -The plaintiff's case was weak. -The court granted a remedy in equity instead. -The plaintiff's case and the defendant's case have equal merit. -The plaintiff has not suffered actual damages.