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ExamName___________________________________MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.1)Jerry, a college business major, contracts with the Southwestern Co. to sell books door-to-door inPortsville, Ontario. Upon learning that a local by-law requires a $25 per day license, Jerry declaredthe contract frustrated and went home. Would the courts agree with Jerry's contention?1)A)Yes, since the license fee is a cost of doing business that was not contemplated by Jerry.B)No, because the by-law was beyond Jerry's control.C)Yes, since it is no longer a profitable business.D)No, because this is "self-induced" frustration.E)Yes, the town intended the by-law to restrict door-to-door selling.Answer:DExplanation:A)B)C)D)E)2)L contracted with M for the supply and installation of building materials and the renovation of M'sproperty. L made certain payments, but refused to to pay the balance because of defects in theworkmanship. Evidence indicated that M had substantially completed the contract. In this case2)Explanation:A)B)C)D)E)3)Each province in Canada has a Limitations Act. Which of the following statements correctlydescribes what happens to a contract after the time set forth in the Act has expired?3)Explanation:A)B)C)D)E)1
4)A company (that installs heavy equipment) is to be paid upon the completion of each stage in thetooling of a new factory. Yet, it is the factory owner's own chief engineer who does the inspectionand makes the approval of each stage. Will the courts enforce this arrangement as a conditionprecedent?4)Explanation:A)B)C)D)E)