Question 1

What is the most important factor for a retailer to consider when deciding whether to file a lawsuit against a supplier for a breach of a business contract?

Accepted Answer

A)   the significance of the economic harm caused by the defaulting party's breach
B)   the ability to secure an adequate supply of the stock from another supplier
C)   the costs associated with obtaining the stock from a different supplier
D)   the impact of the lawsuit on the reputation of the defaulting companyE) A) and D)
F) B) and D)

Question 2

A business should always insist on the strict observance and enforcement of its legal rights.

Accepted Answer

A) True 
 B)False

Question 3

It is important for a business person to know when simple communications crystalize into legal obligations.

Accepted Answer

A) True 
 B)False

Question 4

The fact that one party has less bargaining power than the other does not generally affect the enforceability of their concluded contract.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following has the greatest influence on creating the flexible relationship that exists between contract law and economic reality?

Accepted Answer

A)   Contractual obligations must be performed or compensation paid for non-performance.
B)   Courts assess the fairness of the contract terms chosen by the parties.
C)   A party's need for judicial assistance or judicial intervention must be justified.
D)   Parties must be responsible for themselves and work to maximize self-interest.E) B) and C)
F) None of the above

Question 6

Identify the role that a contract plays in any commercial operation.Provide several examples of what activities a business is able to do through a contract.Identify and briefly explain the role contract law plays with respect to contractual participants and their commercial operations.

Accepted Answer

Contracts are the legal cornerstone of a...

Question 7

If someone has suffered a legal wrong,he or she should automatically sue the wrongdoer.

Accepted Answer

A) True 
 B)False

Question 8

Traditionally,contract law focuses its attention on the need to preserve long-term business relationships.

Accepted Answer

A) True 
 B)False

Question 9

What is the primary benefit of contract law to business?

Accepted Answer

A)   Contract law allows businesses to transfer risk.
B)   Once a contract is created,it permits both parties to rely on the terms they have negotiated and plan their business affairs accordingly.
C)   Contract law guarantees that others will follow through with their promises.
D)   It ensures that businesses treat each other as equals and do not take advantage of one another in business relationships.E) A) and D)
F) A) and B)

Question 10

Most Canadian jurisdictions require contracts regarding interests in land to be in written form.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would most likely have the greatest influence in orchestrating the occurrence of an economic breach in a contractual business relationship?

Accepted Answer

A)   seeking methods of maintaining profits when entering into new business relationships
B)   taking an intractable position and forcing an ultimate favourable settlement
C)   finding practical ways of interpreting contracts to arrive at higher profit margins
D)   deciding to secure greater profits through non-performance of an existing contractE) All of the above
F) A) and D)

Question 12

Matt purchases a car for his son from an auto dealership.A week later,his son discovers a defect that renders the car unsafe.The defect is one that a court would consider to be a breach of contract.What legal recourse is available to remedy this problem?

Accepted Answer

A)   The court's resistance to imposing ethical business standards leaves no recourse.
B)   Matt may commence a lawsuit against the dealer for breach of contract.
C)   Matt's son may file a lawsuit against the auto dealer for breach of contract.
D)   Mat's son can sue the manufacturer of the car for breach of contract.E) C) and D)
F) A) and B)

Question 13

Individuals who negotiate a contract on behalf of their employer are bound to the contract along with their employer.

Accepted Answer

A) True 
 B)False

Question 14

Explain the notion of equality of bargaining power and its impact on the operation of contract law.

Accepted Answer

Equality of bargaining power is the lega...

Question 15

When resolving contractual conflicts,what laws do the courts usually apply?

Accepted Answer

A)   the Contracts Act
B)   the Sale of Goods Act
C)   Judges make all decisions based on principles of fairness and equity.
D)   Judges apply common law and occasionally statutory law.E) None of the above
F) All of the above

Question 16

Which of the following is an example of a contract that would be governed by legislation and NOT by common law?

Accepted Answer

A)   a contract involving the sale of goods governed by the Sale of Goods Act
B)   a contract involving the supply of services governed by the Employment Act
C)   a contract retaining a lawyer to perform legal services on behalf of a client
D)   a verbal contract involving an exchange of services for a set monetary priceE) None of the above
F) All of the above

Question 17

Under which of the following circumstances would a court be likely to set a contract aside?

Accepted Answer

A)   if there is a lack of sufficient equality of the benefits received by each party
B)   if there is an attempt to take advantage of a handicapped,vulnerable person
C)   if there were witnesses to the contract
D)   if the parties put their contract in writingE) All of the above
F) A) and B)

Question 18

Alberta Carr,in his well-known article published in the Harvard Business Review,encouraged businesspeople to break the law to seek advantage in business negotiations.

Accepted Answer

A) True 
 B)False

Question 19

Avatar Productions Ltd.has had a long and successful relationship with Facades Inc.,a set designing company.Recently,Facades failed to complete one of its contractual obligations within the time limit set out in the contract.What overriding factor should Avatar consider when deciding whether to sue Facades?

Accepted Answer

A)   whether it makes business sense to sue Facades
B)   that failure to immediately sue Facades will result in giving up its right to sue
C)   the impact of the litigation on the industry
D)   whether it can prove that the breach was due to negligence on the part of FacadesE) None of the above
F) A) and B)

Question 20

When hearing a case,the court will generally assume equality of bargaining power,even though it is not always a valid assumption.

Accepted Answer

A) True 
 B)False

Exam 5: An Introduction to Contracts

When resolving contractual conflicts,what laws do the courts usually apply?

Correct Answer
verified

Which of the following has the greatest influence on creating the flexible relationship that exists between contract law and economic reality?

Correct Answer
verified

Matt purchases a car for his son from an auto dealership.A week later,his son discovers a defect that renders the car unsafe.The defect is one that a court would consider to be a breach of contract.What legal recourse is available to remedy this problem?

Correct Answer
verified

Individuals who negotiate a contract on behalf of their employer are bound to the contract along with their employer.

Correct Answer
verified

A business should always insist on the strict observance and enforcement of its legal rights.

Correct Answer
verified

It is important for a business person to know when simple communications crystalize into legal obligations.

Correct Answer
verified

Alberta Carr,in his well-known article published in the Harvard Business Review,encouraged businesspeople to break the law to seek advantage in business negotiations.

Correct Answer
verified

When hearing a case,the court will generally assume equality of bargaining power,even though it is not always a valid assumption.

Correct Answer
verified

Traditionally,contract law focuses its attention on the need to preserve long-term business relationships.

Correct Answer
verified

What is the most important factor for a retailer to consider when deciding whether to file a lawsuit against a supplier for a breach of a business contract?

Correct Answer
verified

Explain the notion of equality of bargaining power and its impact on the operation of contract law.

Correct Answer
verified
Equality of bargaining power is the lega...
View Answer

What is the primary benefit of contract law to business?

Correct Answer
verified

Most Canadian jurisdictions require contracts regarding interests in land to be in written form.

Correct Answer
verified

Which of the following would most likely have the greatest influence in orchestrating the occurrence of an economic breach in a contractual business relationship?

Correct Answer
verified

Correct Answer
verified

Under which of the following circumstances would a court be likely to set a contract aside?

Correct Answer
verified

Identify the role that a contract plays in any commercial operation.Provide several examples of what activities a business is able to do through a contract.Identify and briefly explain the role contract law plays with respect to contractual participants and their commercial operations.

Correct Answer
verified
Contracts are the legal cornerstone of a...
View Answer

The fact that one party has less bargaining power than the other does not generally affect the enforceability of their concluded contract.

Correct Answer
verified

Which of the following is an example of a contract that would be governed by legislation and NOT by common law?

Correct Answer
verified

If someone has suffered a legal wrong,he or she should automatically sue the wrongdoer.

Correct Answer
verified

Exam 5: An Introduction to Contracts

When resolving contractual conflicts,what laws do the courts usually apply?

Correct AnswerverifiedShow Answer

Which of the following has the greatest influence on creating the flexible relationship that exists between contract law and economic reality?

Correct AnswerverifiedShow Answer

Matt purchases a car for his son from an auto dealership.A week later,his son discovers a defect that renders the car unsafe.The defect is one that a court would consider to be a breach of contract.What legal recourse is available to remedy this problem?

Correct AnswerverifiedShow Answer

Individuals who negotiate a contract on behalf of their employer are bound to the contract along with their employer.

Correct AnswerverifiedShow Answer

A business should always insist on the strict observance and enforcement of its legal rights.

Correct AnswerverifiedShow Answer

It is important for a business person to know when simple communications crystalize into legal obligations.

Correct AnswerverifiedShow Answer

Alberta Carr,in his well-known article published in the Harvard Business Review,encouraged businesspeople to break the law to seek advantage in business negotiations.

Correct AnswerverifiedShow Answer

When hearing a case,the court will generally assume equality of bargaining power,even though it is not always a valid assumption.

Correct AnswerverifiedShow Answer

Traditionally,contract law focuses its attention on the need to preserve long-term business relationships.

Correct AnswerverifiedShow Answer

What is the most important factor for a retailer to consider when deciding whether to file a lawsuit against a supplier for a breach of a business contract?

Correct AnswerverifiedShow Answer

Explain the notion of equality of bargaining power and its impact on the operation of contract law.

Correct AnswerverifiedEquality of bargaining power is the lega...View AnswerShow Answer

What is the primary benefit of contract law to business?

Correct AnswerverifiedShow Answer

Most Canadian jurisdictions require contracts regarding interests in land to be in written form.

Correct AnswerverifiedShow Answer

Which of the following would most likely have the greatest influence in orchestrating the occurrence of an economic breach in a contractual business relationship?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Under which of the following circumstances would a court be likely to set a contract aside?

Correct AnswerverifiedShow Answer

Identify the role that a contract plays in any commercial operation.Provide several examples of what activities a business is able to do through a contract.Identify and briefly explain the role contract law plays with respect to contractual participants and their commercial operations.

Correct AnswerverifiedContracts are the legal cornerstone of a...View AnswerShow Answer

The fact that one party has less bargaining power than the other does not generally affect the enforceability of their concluded contract.

Correct AnswerverifiedShow Answer

Which of the following is an example of a contract that would be governed by legislation and NOT by common law?

Correct AnswerverifiedShow Answer

If someone has suffered a legal wrong,he or she should automatically sue the wrongdoer.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Equality of bargaining power is the lega...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Contracts are the legal cornerstone of a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified