16. Employees are generally considered to be an unreliable source for identifying risks in an
organizations functional areas.
17. The fact that an organizations human resource department is typically exposed t
2. What is the value of having a legal risk management plan?
The value in having a legal risk management plan lies in being ready to take the appropriate
action when a risk does materialize. An effective way of dealing with the situation is already
6. Having a legal risk management plan is unnecessary for a small business entity.
7. The point in evaluating risks is to recognize that not all risks are alike, nor should they be
39. During a recent takeover of a competitor, Jordden Jeans Corp. was able to realize significant
cost savings due to advice from its lawyer throughout the negotiation process. How does this
result support the primary function the organizations risk manag
35. A salesperson contacted the risk manager to report substantial damage to a customers
production line due to malfunction of equipment purchased 12 months earlier. Why was a lawyer
was not contacted and advised of the event directly by the salesperson?
30. Escalating insurance premiums forced Econo Courier Ltd. to re-evaluate its fleets windshield
coverage. The company negotiated a special rate with a local windshield chain and routinely set
money aside to pay for those costs when they occurred. Which o
13. After several interviews and calls to follow up on references, Fashion By Design Inc. has chosen
a seasoned lawyer from a well-known commercial law firm to provide legal services to the
company. What was the object of having the companys management ex
18. Why is the inclusion of a limitation of liability clause in a commercial contract considered to be
an effective solution for business legal risk management?
a. It triggers avoidance of liability in standard form commercial contracts.
b. It creates equ
22. A food producer inadvertently labelled a batch of a food product incorrectly, indicating it was
sulphate free when sulphate was a standard ingredient. A number of incidents involving severe
allergic reactions resulted in the products removal from shel
26. During the risk evaluation process, a high probability that a particular loss-causing event will
occur must be weighed against which of the following possibilities?
a. that the event will definitely occur and the loss is unavoidable
b. whether likely
9. Which of the following correctly identifies the goal of the third step in the legal risk management
a. to hire a legal professional or insurance consultant
b. to carry out the plan, assessing probability of loss, and revising the plan
c. to de
5. Professional liability insurers require law societies to appoint independent auditors, who conduct
annual audits of law firm trust accounts to ensure that clients trust funds are being utilized
properly by the lawyers and the firm. What activity and it
Chapter 3 Managing Legal Risks
1. Which of the following identifies the approaches recommended to business for effective
management of areas of interaction with the law and legal issues?
a. precautionary and reactionary
b. risk aversive an
14. Public health and the environment are constitutionally undefined as areas of concurrent
jurisdiction shared between the federal and provincial governments.
15. In circumstances of alleged conflict betwee
5. Briefly describe the origins of the common law system and the civil law system as they exist in
Canada and the comparable and contrasting characteristics of each system of law.
The Quebec civil law system originated from the French legal system an
1. Briefly describe the circumstances under which the guarantee of Canadians rights and
freedoms provided under the Canadian Charter of Rights and Freedoms is permitted to be
Limitation of the guarantee of Canadas Charter rights
4. Canadas federal Parliament is composed of the House of Commons and the Senate.
5. All municipalities in Canada are created by provincial legislation.
44. A province wants to challenge an appeal courts decision regarding prevention of continued
ground water contamination now posing significant health risk to people, wildlife, and plants
living in the ecosystem to the Supreme Court. Which of the followin
36. Quest Electricial Engineers Inc. contractually committed to provide specialized services to a
construction project with specified deadlines for completion. Quest has to meet deadlines or
face penalties. Which of the following would a court most likely
40. Which of the following is an example of a federal administrative body that plays a role in
a. the Securities Commission
b. the Board of Health
c. the Wheat Board
d. the Liquor Control Board
26. What is the least likely source of law in Canada?
a. common law
b. public opinion
c. Civil Code
d. royal prerogative
27. In Canada, royal perogative signifies the Crowns exclusive right to perform wh
31. Which of the following is a distinguishing characteristic of a treaty?
a. A treaty is the sole law governing relations between nations.
b. A treaty is a set of coded laws to regulate relations.
c. A treaty governs relationships between Canadas provinc
13. Groups launching lobbying efforts directed at the federal government to voice opposition to
proposed legislation affecting property laws have been advised that the matter lies outside
federal jurisdiction. What government possesses the required consti
22. Lexie McTaggerts position with the Saskatchewan Court of Queens Bench often requires her to
refer to the judiciary for guidance. Which of the following describes the judiciary Lexie refers to?
a. collective of appointed judges
b. judicial common law
17. The Provincial Office has advised that it does not have jurisdiction to deal with an application for
a property zoning variance from J Tap Corp. Which of the following correctly identifies where the
application must be redirected to and why?
Chapter 2 The Canadian Legal System
1. Which of the following best describes the paramount function of Canadian constitutional law?
a. It sets a parliamentary code of ethics.
b. It creates structure for ceremonial policy.
c. It establishes
9. In determining a constitutional challenge, the Supreme Court of Canada upheld the federal
governments bilingual language rights legislation. Which of the following exemplifies the reason
for the Courts decision?
a. The Supreme Courts decision follows t
5. The Province of Newfoundland enacted new regulations to better control hazardous waste
disposal throughout the province. What type of law should specialized waste control businesses
operating in Newfoundland refer to in order to ensure their commercial
3. Briefly describe the steps that parties must go through to achieve the consensus reflected in a
contract. What role does a lawyer play in this process?
Usually one party has identified a need and will make a proposal to another party for an
1. Canadian business law consists of a set of established bilingual rules governing commercial
relationships that exclude enforcement of rights.
2. Canada offers an attractive commercial environmen