TEST ITEM FILE
Bill Woodhead
Practical Law of Architecture,
Engineering, and Geoscience
Third Canadian Edition
Brian M. Samuels
Samuels & Co., Barristers and Solicitors
Doug R. Sanders
Borden Ladner Gervais LLP
Toronto
Copyright © 2016 Pearson Canada Inc.. Pearson Prentice Hall. All rights reserved. This work is protected
by Canadian copyright laws and is provided solely for the use of instructors in teaching their courses and
assessing student learning. Dissemination or sale of any part of this work (including on the Internet) will
destroy the integrity of the work and is not permitted. The copyright holder grants permission to instructors
who have adopted Practical Law of Architecture, Engineering, and Geoscience, Third Canadian Edition,
by Brian M. Samuels and Doug R. Sanders, to post this material online only if the use of the website is
restricted by access codes to students in the instructor’s class that is using the textbook and provided the
reproduced material bears this copyright notice.
Contents
Preface
2
3
Chapter 1
The Canadian Legal System
4
Chapter 2
Regulation of the Professions
5
Chapter 3
Ethical Considerations
6
Chapter 4
Property Law
7
Chapter 5
Business Organizations
10
Chapter 6
Contracts
12
Chapter 7
Breach of Contract
14
Chapter 8
Interpreting and Drafting Contracts
16
Chapter 9
Selected Contract Issues
17
Chapter 10
Getting to a Contract
20
Chapter 11
Specific Contracts and Clauses
24
Chapter 12
Torts
26
Chapter 13
Common Issues in Contract and Tort
28
Chapter 14
Dispute Resolution and Expert Evidence
30
Chapter 15
Risk, Responsibility, and Dispute Avoidance
32
Chapter 16
Insurance
33
Chapter 17
Bonds
36
Chapter 18
Construction Liens
38
Chapter 19
Delay and Impact Claims
40
Chapter 20
Labour Law
42
Chapter 21
Employment Law
44
Chapter 22
Health and Safety Law
46
Chapter 23
Environmental Law
47
Chapter 24
Aboriginal Law
49
Chapter 25
Securities Law
50
Chapter 26
Privacy Law
51
Chapter 27
Internet Law
52
Copyright © 2016 Pearson Canada Inc.
Preface
Practical Law of Architecture, Engineering, and Geoscience was designed to serve a
wide variety of courses. It is appropriate for students who are studying the legal aspects
of any sector of the construction industry, or any other project-driven industry with a
network of parties contractually related to one another.
This Test Item File provides sample questions and answers for each of the 27 chapters of
Practical Law of Architecture, Engineering, and Geoscience. Four types of questions are
used: True or False, Short Answer, Multiple Choice, and Essay.
Copyright © 2016 Pearson Canada Inc.
3
Chapter 1
The Canadian Legal System
TRUE FALSE
1. Civil litigants have an automatic right of appeal to the Supreme Court of Canada.
Answer: False
Page: 2
Difficulty: Moderate
Skill: Applied
SHORT ANSWER
2. What rule applies when federal and provincial legislation have a direct operational
conflict?
Answer: The federal legislation trumps the provincial legislation to the extent of the
contradiction. This is called the doctrine of paramountcy.
Page: 1
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
3. Which of the following is a federal power under the Canadian Constitution?
a.
b.
c.
d.
fisheries
management of hospitals
governance of the professions
contracts
Answer: a
Comment: The others are within provincial government jurisdiction.
Page: 1
4
Difficulty: Easy
Skill: Applied
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Chapter 2
Regulation of the Professions
TRUE FALSE
4. To be eligible for registration as a professional engineer in Canada, applicants must
first sit an exam to evaluate their technical ability.
Answer: False
Page: 11
Difficulty: Moderate
Skill: Recall
Comment: Only applicants who are graduates of non-accredited universities need sit
technical exams.
SHORT ANSWER
5. Explain what is meant by self-regulation.
Answer: Self-regulation is when a profession is given statutory authority to govern itself.
Page: 8
Difficulty: Easy
Skill: Recall
MULTIPLE CHOICE
6. Engineers Canada has professional-level reciprocity agreements with all of the
following jurisdictions except?
a.
b.
c.
d.
Mexico
United Kingdom
France
Texas
Answer: b
Comment: Engineers Canada has only an educational-level reciprocity agreement with
the United Kingdom.
Page: 11
Difficulty: Difficult
Skill: Recall
Copyright © 2016 Pearson Canada Inc.
5
Chapter 3
Ethical Considerations
TRUE FALSE
7. Codes of ethics have detailed lists of what professionals are prohibited from doing.
Answer: False
Page: 15
Difficulty: Difficult
Skill: Applied
Comment: Usually codes of ethics are written in general terms defining a vague threshold
of acceptable behaviour. This is evident from the excerpts on page 15.
SHORT ANSWER
8. Name the four persons (or groups) professionals owe ethical duties to.
Answer: The public, client, employer, and profession.
Page: 16
Difficulty: Difficult
Skill: Recall
MULTIPLE CHOICE
9. What is the definition of a “facilitation payment” under the Corruption of Foreign
Public Officials Act in Canada?
a.
b.
c.
d.
payments made to secure contracts
payment for the acquisition of land rights
small payments made to expedite processing of routine approvals
vacation pay
Answer: c
Comment: Facilitation payments are an exception to the rule against bribery of foreign
public officials under the CFPOA.
Page: 21
6
Difficulty: Medium
Skill: Recall
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Chapter 4
Property Law
TRUE FALSE
10. You have the legal right to prevent your neighbour from building a tall house that
obstructs your view of the ocean.
Answer: False
Page: 27
Difficulty: Moderate
Skill: Applied
Comment: Property ownership does not include the right to a view over neighbouring
land.
SHORT ANSWER
11. A mobile amusement ride is bolted to the ground so that it is stable during operation.
Is the ride real property or personal property?
Answer: Personal property. If the purpose of the fixing is to better enjoy the item fixed,
the act of fixing does not make the item real property.
Page: 24
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
12. Your neighbour intends to dig a basement close to your property boundary. The
neighbour wants to ensure lateral support to your land, and so installs ground anchors that
extend under your land. Has the neighbour done anything wrong?
a. no, the neighbour is complying with his duty to provide lateral support
b. no, the neighbour is entitled to take reasonable steps to facilitate construction on
his land
c. yes, the neighbour’s anchors are trespassing onto your land because you did not
agree to them being installed
d. yes, ground anchors stretch as they take load, and so your land will settle as this
occurs; the neighbour has compromised lateral support to your land
Answer: c
Comment: The right to place items on or under another person’s land must be established
by contract.
Page: 26
Difficulty: Moderate
Skill: Applied
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7
13. Which of the following is not true about easements?
a.
b.
c.
d.
an easement permits the holder to harvest trees from the land
easements can be created through historical use
easements give others the right to use your property
easements can be registered against title in the land title office
Answer: a
Comment: Harvesting trees is done through a profit à prendre.
Page: 28
Difficulty: Moderate
Skill: Recall
14. Ideas can be protected using:
a.
b.
c.
d.
copyright law
trademark law
trade secrets
industrial designs
Answer: c
Comment: Trade secrets and other ideas can be preserved by well-drafted contracts.
Page: 29
Difficulty: Moderate
Skill: Applied
15. The term of patent protection in Canada is:
a.
b.
c.
d.
50 years from the date the application is filed
20 years from the date the patent is granted
20 years from the date the first invention is disclosed to the public
20 years from the date the application is filed
Answer: d
Page: 31
8
Difficulty: Easy
Skill: Recall
Copyright © 2016 Pearson Canada Inc.
ESSAY
16. Discuss the importance of registration of patents, copyright, trademarks, and
industrial designs respectively.
Answer: Registration is most important for patents and industrial designs. Without
registration, there is no protection at all for patents or industrial designs. Patents must be
registered in each jurisdiction where the inventor wants protection, and there are time
limits by which this registration must be completed. For copyrights, registration is not
required. However, registration is useful for copyright because it proves who the owner
of the copyright is. Registration is also required to take advantage of copyright treaties.
Trademarks need not be registered, but if they are not, the trademark will only apply in
the area the trademark is actually used. Registering a trademark gives the owner the
exclusive right to use the trademark throughout Canada.
Pages: 29-32
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
9
Chapter 5
Business Organizations
TRUE FALSE
17. Filing requirements for partnerships are generally less onerous than for corporations.
Answer: True
Page: 36
Difficulty: Moderate
Skill: Recall
SHORT ANSWER
18. If you are setting up a business and are not concerned about liability, but expect to be
very successful, what disadvantage is there to operating as a sole proprietor?
Answer: Sole proprietors pay tax on the profits of the business as personal income. For
large incomes, the personal tax rate may be higher than the corporate tax rates, and so a
sole proprietorship would not be efficient from a tax perspective.
Page: 36
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
19. Which is the odd one out?
a.
b.
c.
d.
articles of incorporation
memoranda of association
letters patent
partnership agreement
Answer: d
Comment: The other documents are used to incorporate a company.
Page: 39
10
Difficulty: Moderate
Skill: Applied
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20. A director is considering buying a car for the corporation from a car dealership that is
owned by his brother. To be absolutely safe, what should the director do before making
the purchase?
a. nothing, the corporation will be paying full price for the car, and the brother is not
making any concession for the director
b. disclose the director’s relationship with the seller, and have the purchase approved
by the shareholders
c. disclose the director’s relationship with the seller, and have the purchase approved
by the independent directors on the board
d. have his brother make a statutory declaration that the car was sold at fair market
value
Answer: b
Comment: Approval by the board of directors may be sufficient, but approval by an
appropriate majority of shareholders is unassailable.
Page: 40
Difficulty: Difficult
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
11
Chapter 6
Contracts
TRUE FALSE
21. When a contract is voidable, the non-breaching party has the option to continue with
the contract.
Answer: True
Page: 46
Difficulty: Moderate
Skill: Applied
Comment: However, when a contract is void, there is no option to continue.
SHORT ANSWER
22. Why is it advisable to record contracts in writing?
Answer: A record in writing makes it easier to prove what was agreed to.
Page: 45
Difficulty: Easy
Skill: Recall
MULTIPLE CHOICE
23. When can a party revoke an offer?
a.
b.
c.
d.
only after a counter-offer is made
only when a new offer is made as a substitution
after it has been accepted
any time before it is accepted
Answer: d
Comment: Although, to be effective, the revocation must be communicated to the party
the offer was made to.
Page: 46
12
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
24. Which of the following would be acceptable consideration in exchange for a
contractor building a house?
a.
b.
c.
d.
$1
$60,000
the free market value of the house
all of the above
Answer: d
Comment: Generally, the law does not inquire into the adequacy of consideration.
Page: 48
Difficulty: Moderate
Skill: Applied
ESSAY
25. Explain why, in construction contracts, it is important for owners to ensure that the
formalities specified for approving extras to the contract are complied with.
Answer: If a contract specifies a procedure for approving amendments or extras to the
contract, but those procedures are not followed, then the court may rule that both parties
adopted a relaxed approach to the contract and now neither party can require compliance
with the procedures set out. Then, if the contractor performs extra work and claims that
she was instructed to perform it, the court may award payment for such extra work even
though no formal instruction was given. When a job is going well and relationships on
site seem strong, strict compliance with paperwork requirements may seem unnecessary.
However, projects go awry and memories fade. Best practice is to comply with the
approval process from the outset so the rights of all parties are clear.
Page: 55
Difficulty: Easy
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
13
Chapter 7
Breach of Contract
TRUE FALSE
26. Because of the doctrine of remoteness, damages will only be awarded for breach of
contract if the loss was caused by the breach.
Answer: False
Page: 61
Difficulty: Difficult
Skill: Applied
Comment: Remoteness requires that the damages be foreseeable. The doctrine of
causation is the one that requires the loss be caused by the breach.
SHORT ANSWER
27. How relevant is inability to perform when considering whether a contract was
breached?
Answer: Inability to perform is irrelevant to whether the contract was breached. Breach is
determined by simply considering whether the work was done in accordance with the
contract. Inability is merely the reason for the breach.
Page: 60
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
28. The owner insists that the contractor perform certain work that the contractor claims
is not part of the contract. Which of the following is an appropriate course of action for
the contractor?
a. perform the disputed work hoping the owner will later agree to pay
b. stop work on the entire project unless the owner agrees to pay for the disputed
work
c. perform all contractual obligations apart from the disputed work
d. none of the above
Answer: d
Comment: A notice of protest must be filed immediately, so A is inappropriate. B is
inappropriate because, regardless of the disputed work, the contractor must complete the
work that is clearly within the contract. C is inappropriate because if the contractor was
14
Copyright © 2016 Pearson Canada Inc.
mistaken and the disputed work was actually part of the contract, the contractor will be
liable for breach of contract. The contractor should complete all work, including the
disputed work, but file a notice of protest immediately.
Page: 60
Difficulty: Difficult
Skill: Applied
29. Which is the most common remedy for breach of construction contracts?
a.
b.
c.
d.
specific performance
damages
declaratory order
injunction
Answer: b
Comment: Using the damages awarded, the innocent party can pay a replacement
contractor to finish the project.
Page: 61
Difficulty: Difficult
Skill: Applied
ESSAY
30. A swimming pool contractor builds a pool with a deep end 11 ft deep, instead of the
12 ft specified in the contract. Would specific performance be ordered? If not, how would
damages be calculated?
Answer: When ordering specific performance, the court orders the breaching party to
comply with the terms of the contract. In this case, specific performance would require
the contractor to rebuild the entire pool. The court would be reluctant to do this because
of the large cost compared to the small benefit to be gained by rebuilding the entire pool.
However, if the owner demonstrated a special need for the extra foot of depth (such as a
high-precision diving board), specific performance may be ordered, especially if the
owner made this special need known to the contractor at the outset. Otherwise, the court
would likely award damages to account for loss of enjoyment and diminution in value
because of the shallower depth.
Pages: 61-63
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
15
Chapter 8
Interpreting and Drafting Contracts
TRUE FALSE
31. Where the intentions of the parties are clear from the written contract, a court will
not consider additional evidence on the parties’ intentions.
Answer: True
Page: 69
Difficulty: Easy
Skill: Applied
SHORT ANSWER
32. When will courts prefer the customary or special meaning of a word over its ordinary
meaning?
Answer: The customary or special meaning will be used when the context of the word in
the document implies that the special meaning of the word was intended.
Page: 68
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
33. What is the name of the rule that generally excludes extrinsic evidence when
interpreting a contract?
a.
b.
c.
d.
contra proferentem
the contextual approach
the parol evidence rule
none of the above
Answer: c
Comment: Exceptions to the parol evidence rule apply when necessary to prevent
injustice.
Page: 69
16
Difficulty: Moderate
Skill: Recall
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Chapter 9
Selected Contract Issues
TRUE FALSE
34. A statement by an architect to a contractor may be sufficient to establish that the
architect is the owner's agent.
Answer: False
Pages: 71-72 Difficulty: Difficult
Skill: Applied
Comment: No statement between an agent and a third party can create an agency. See the
diagram on page 72.
35. A sub-subcontractor would be covered by a one-tier labour and material payment bond.
Answer: False
Page: 80
Difficulty: Easy
Skill: Applied
Comment: Only subcontractors to the main contractor would be covered by a one-tier
bond.
SHORT ANSWER
36. What type of agency relationship may be established by representations the owner
makes in the construction contract documents? Who is that agency relationship between?
Answer: Apparent agency. Representations in the contract between the owner and the
contractor may imply that an architect is the agent of the owner. To the extent the owner
states in the contract documents that the architect may act for the owner, the owner will
be accountable if the contractor relies on the architect.
Page: 71
Difficulty: Moderate
Skill: Applied
37. What name is given to an agreement in which one party agrees to bear the financial
loss of another party for a specified event?
Answer: An indemnity agreement.
Page: 73
Difficulty: Moderate
Skill: Applied
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17
MULTIPLE CHOICE
38. Under a pay-when-paid clause, if the owner never pays the main contractor, when
must the main contractor pay the subcontractors?
a.
b.
c.
d.
on the date the owner was due to pay the main contractor
a reasonable time after the payment was due
when the subcontractor has completed work under the subcontract
if the owner never pays, the main contractor is not required to pay the
subcontractor
Answer: b
Comment: Pay-when-paid clauses do not create a condition precedent to payment.
Page: 78
Difficulty: Moderate
Skill: Applied
39. Which of the following is true for pay-if-paid clauses between contractors and
subcontractors where the contractor is unpaid by the owner?
a. in the absence of default by a subcontractor, they create the only possible excuse
for a contractor who has not paid a subcontractor
b. they are never enforced by the courts
c. the triggering event for a pay-if-paid clause is a breach of contract between the
contractor and the subcontractor
d. none of the above
Answer: a
Comment: A pay-if-paid clause may justify a contractor not paying a subcontractor even
though that subcontractor completely performed the subcontract. Such clauses have been
enforced by some courts, but generally courts avoid enforcing them if they can.
Page: 78
18
Difficulty: Difficult
Skill: Applied
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40. Terms from which contract are typically incorporated by reference into subcontracts?
a.
b.
c.
d.
a similar subcontract between the main contractor and another subcontractor
the contract between the owner and the main contractor
a contract between the main contractor and a supplier
none of the above
Answer: b
Comment: Incorporation by reference is a way for the main contractor to assign to a
subcontractor the responsibilities he has to the owner. Therefore, reference is made to the
contract between the owner and the main contractor.
Page: 79
Difficulty: Moderate
Skill: Applied
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19
Chapter 10
Getting to a Contract
TRUE FALSE
41. A request for quotation may be used as a preliminary step when negotiation is
anticipated.
Answer: True
Page: 92
Difficulty: Moderate
Skill: Applied
42. Standing offers are typically open for a short period.
Answer: False
Page: 93
Difficulty: Moderate
Skill: Recall
Comment: Standing offers are used when the owner wants the option to call for specified
services at an agreed price during a medium- to long-term time period.
SHORT ANSWER
43. What consequences result from tender documents that place risks on parties not well
positioned to deal with those risks?
Answer: The prices submitted by tenderers will be disproportionately high compared to the
risk they are required to bear. Potential bidders will be discouraged from submitting bids.
Page: 91
Difficulty: Difficult
Skill: Applied
44. If an owner wants to negotiate with bidders after bids have been submitted, what
steps should be taken?
Answer: The owner should clearly explain in the call for tenders that she intends to
negotiate after the bids are submitted.
Page: 101
20
Difficulty: Moderate
Skill: Applied
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MULTIPLE CHOICE
45. In which of the following project delivery models is the contractor most involved
throughout the entire life of the project?
a.
b.
c.
d.
design-bid-build
design-build
design-build-operate-finance
construction management
Answer: c
Comment: In the design-build-operate-finance project delivery model, the contractor is
involved in all stages except conceptualization.
Page: 112
Difficulty: Easy
Skill: Applied
46. An owner urgently wants to select a contractor. However, the project details have not
been finalized. Therefore, the owner wants to have a few contractors give rough price
estimates, and then enter into negotiations with one or more of them. What type of
delivery system is most appropriate for this situation?
a.
b.
c.
d.
request for qualifications
invitation to tender
request for quotation
request for standing offer
Answer: c
Comment: A request for quotation is appropriate when the procurement requirements are
somewhat defined but not accurately known, and when further negotiation is anticipated.
Page: 92
Difficulty: Easy
Skill: Applied
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21
47. A large private developer anticipates a complicated multi-stage residential
development to be implemented over a six-year period. It is important that a good
working relationship exist between the owner and the contractor because the owner
wishes to have a single contractor for all stages. What type of delivery system is most
appropriate for this situation?
a.
b.
c.
d.
request for qualifications
invitation to tender
request for quotation
request for standing offer
Answer: a
Comment: A request for qualifications will allow the owner to obtain a general
impression from the applicants and then enter into negotiations.
Page: 92
Difficulty: Moderate
Skill: Applied
48. Which of the following is good practice for an owner awarding a contract?
a. seeking clarity from a bidder regarding an ambiguity in a bid before awarding the
contract
b. awarding the contract based on criteria not stated in the invitation for tenders
c. accepting a bid that does not comply with all the mandatory criteria stated in the
invitation for tenders
d. refusing to negotiate with any bidders
Answer: d
Comment: Negotiating with bidders is bad practice and exposes the owner to potential
lawsuits by other bidders.
Page: 101
Difficulty: Easy
Skill: Applied
49. Which of the following models for project delivery would be inappropriate for a
single residence project?
a.
b.
c.
d.
design-bid-build
design-build
design-build-operate
construction management
Answer: c
Comment: There is no significant operation phase for a single residence project.
Page: 112
22
Difficulty: Easy
Skill: Applied
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ESSAY
50. If a call for tenders specifically requires that certain work be subcontracted out, and
that the names of subcontractors that the contractor intends to use be given in the tender,
why might a contractor intentionally omit the name of the subcontractor? What are the
risks of doing this?
Answer: A contractor may obtain quotes from the various subcontractors and then enter in
a price for that item which is a bit lower than any of the quotes he has received from any
of the subcontractors. This will increase the likelihood of the contractor winning the job.
Then, having obtained the job, the contractor is not bound to a particular subcontractor and
can negotiate with the trades and get one of the subcontractors to meet the price he stated
in the tender. The risk of doing this is that the contractor’s bid may be rejected by the
owner as non-compliant. But if the owner uses a broad privilege clause, and is otherwise
impressed by the contractor’s low price and overall bid, the omission may be viewed as a
technical deficiency not amounting to non-compliance. However, if the owner awards the
contract to the bid-shopping contractor, the owner runs the risk of being sued by other
bidders who consider the owner to have accepted a non-compliant bid.
Pages: 106-107
Difficulty: Difficult
Skill: Applied
51. An owner wants to implement a project which requires synergy between many
different mechanical systems. How suitable is the construction management model of
project implementation for this situation?
Answer: Under the construction management model, the owner enters into separate
contracts with the various trade contractors. Unlike with the design-bid-build model,
where there is a single contractor who is ultimately responsible for all work done on site,
in the construction management model, each trade contractor is independently
responsible to the owner. In a project requiring synergy between different aspects of the
project, it may be difficult to determine which trade contractor is responsible if the
system fails to perform. Certainly, where more than one trade contractor is at fault (which
is usually the case), they will point fingers at each other and the owner will be caught in
the middle of the blame game that results. Unlike with the design-bid-build model, the
owner will not be able to turn to a single contractor and say: “You are responsible, fix it!”
Therefore, the construction management model should not be used on innovative projects
where operational synergies are required.
Pages: 112-113
Difficulty: Difficult
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
23
Chapter 11
Specific Contracts and Clauses
TRUE FALSE
52. Owners can increase price certainty in fixed-cost contracts by requiring the
contractor to bear more risk.
Answer: True
Page: 118
Difficulty: Moderate
Skill: Applied
Comment: However, the contractor will charge a premium for bearing the additional risk,
and the owner may be required to pay a large premium in comparison to the risk.
SHORT ANSWER
53. Why is the name of fixed-price contracts somewhat misleading?
Answer: Under a fixed-price contract, the owner rarely pays just the fixed price.
Typically, design changes or contractor claims result in price increases.
Page: 119
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
54. The public-private partnership model is most similar to which other model?
a.
b.
c.
d.
cost-plus
alliance
design-bid-build
construction management
Answer: b
Comment: Alliances and public-private partnerships both involve a team effort to
implement a successful project, and the parties share in the success or failure.
Page: 124
24
Difficulty: Easy
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
55. Which of the following is false regarding the issue of time under a contract?
a. typically, time is of the essence for both parties
b. since the contractor will be liable for late completion, only he need be concerned
with the feasibility of the construction schedule
c. when scheduling, minor tasks should be given as much consideration as major
tasks
d. all of the above
Answer: b
Comment: The owner will be affected by late completion, and therefore also has an
interest in ensuring a feasible construction schedule.
Page: 127
Difficulty: Difficult
Skill: Applied
56. Which is the typical sequence in which dispute resolution options are tried?
a.
b.
c.
d.
negotiation, mediation, arbitration
mediation, negotiation, arbitration
negotiation, arbitration, mediation
arbitration, negotiation, mediation
Answer: a
Comment: Parties normally try to resolve the dispute themselves, then ask someone to
help them resolve it themselves, and finally have someone else resolve it for them.
Page: 132
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
25
Chapter 12
Torts
TRUE FALSE
57. A contractor who builds a house and then sells it to the first owner will generally not
be contractually liable to the second owner of the property for defective construction.
Answer: True
Page: 136
Difficulty: Moderate
Skill: Applied
SHORT ANSWER
58. What is the key difference between obligations imposed under tort law compared to
those imposed under contract law?
Answer: One cannot escape tort obligations, as they are imposed on all members of
society. Contractual obligations, on the other hand, are entirely voluntary.
Pages: 139-140
Difficulty: Difficult
Skill: Applied
MULTIPLE CHOICE
59. Between which of the following parties is there clearly a duty of care for negligence?
a. an architect and a contractor
b. a geoscientist and an investor who inadvertently obtains a copy of the
geoscientist's report
c. a car manufacturer and the owner of the car
d. none of the above
Answer: c
Page: 136
26
Difficulty: Difficult
Skill: Applied
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60. To establish causation, the plaintiff must show that:
a. the defendant owed a duty to the plaintiff and breached that duty
b. but for the breach of duty by the defendant, the loss would not have occurred, and
that the defendant’s breach was the proximate cause of the loss
c. the plaintiff took all reasonable steps to prevent the loss after the defendant
breached his duty to the plaintiff, and that the defendant’s breach was the
proximate cause of the loss
d. none of the above
Answer: b
Comment: The “but for” test must be satisfied and the cause must be proximate.
Page: 142
Difficulty: Moderate
Skill: Applied
61. Which of the following is a strict liability tort?
a.
b.
c.
d.
breach of confidence
nuisance
negligence
negligent misrepresentation
Answer: b
Page: 148
Difficulty: Moderate
Skill: Applied
ESSAY
62. “A” mistakenly builds his farm boundary fence 5 cm beyond his property boundary
such that it is on his neighbour’s property. His neighbour, “B”, sues for trespass. Will B’s
claim succeed? What remedy will the court likely grant to B? (Hint: consider public
policy)
Answer: Because A built the fence over the property boundary, his fence trespasses on
B’s property. Trespass occurs whenever a person places their personal property on the
land of another person. The traditional remedy for trespass is a court order stating that
the party committing the trespass (A) must cease doing so by a stated time. However,
public policy requires that courts should not make orders that will be expensive to
implement, but which result in little benefit. In this case, B owns a farm which is likely
large in size. Ordering A to move his fence 5 cm will be of little benefit to B. Although
mistake is not a defence to trespass, the court will consider it when deciding on what
remedy to order. In this case, the court would likely order A to pay B some nominal
amount for the encroachment on B’s land.
Page: 146
Difficulty: Difficult
Skill: Applied
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27
Chapter 13
Common Issues in Contract and Tort
TRUE FALSE
63. An employment contract could contain an exclusion clause that prevents the
employer from recovering from the employee damages the employer has to pay under the
doctrine of vicarious liability.
Answer: True
Page: 157
Difficulty: Difficult
Skill: Applied
SHORT ANSWER
64. What is the name of the limitation period that will bar a claim for a latent defect
found 80 years after a building was constructed?
Answer: The ultimate limitation period.
Page: 155
Difficulty: Easy
Skill: Recall
MULTIPLE CHOICE
65. A patent defect is one which:
a. would only be obvious to an expert
b. could not be discovered until after the structure containing the defect had failed, at
which point it would be obvious that there was a defect
c. is an obvious defect that can be discovered upon a reasonable inspection
d. none of the above
Answer: c
Page: 154
28
Difficulty: Difficult
Skill: Recall
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66. In which of the following relationships is there vicarious liability?
a.
b.
c.
d.
employer–employee
owner–contractor
owner–architect
all of the above
Answer: a
Comment: Owners do not have control over the work methods of their contractors and
architects, and so there is no vicarious liability.
Page: 157
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
29
Chapter 14
Dispute Resolution and Expert Evidence
TRUE FALSE
67. Upon being issued a demand for documents, a party must produce all relevant
documents.
Answer: False
Page: 164
Difficulty: Difficult
Skill: Applied
Comment: Privileged documents need not be produced.
SHORT ANSWER
68. What is the purpose of the pleadings in a lawsuit?
Answer: The pleadings define the issues to be decided by the court.
Page: 162
Difficulty: Difficult
Skill: Applied
MULTIPLE CHOICE
69. What name is given to the process whereby the parties agree to arbitrate after the
dispute has arisen, and agree that the arbitrator will make a final decision?
a.
b.
c.
d.
mandatory binding arbitration
voluntary binding arbitration
mandatory non-binding arbitration
voluntary non-binding arbitration
Answer: b
Page: 166
30
Difficulty: Easy
Skill: Recall
Copyright © 2016 Pearson Canada Inc.
70. Which of the following is not true regarding experts?
a.
b.
c.
d.
experts must remain neutral at all times
experts cannot agree to payment contingent on the outcome of the litigation
experts should insist that there is only one answer to every technical problem
experts should decline to testify if they cannot honestly offer an opinion that
supports the case of the party who hired them
Answer: c
Comment: Experts must remain open minded, and agree to reasonable alternative
explanations if presented with them.
Page: 169
Difficulty: Moderate
Skill: Applied
ESSAY
71. Explain the potential conflict of interest experts face when testifying at trial. What
mechanisms are implemented to mitigate this conflict and ensure objective expert
testimony?
Answer: When experts testify at trial, they are paid to do so by one of the parties. In other
words, a litigant will present an expert because the litigant believes that the expert’s
opinion will further the party’s case. The conflict of interest arises because the expert is
ethically obliged to give a neutral opinion, but knows that they will not be paid to give an
opinion at all unless it supports the case of the party who hired them. Thus, experts may
be inclined to tailor an opinion to suit a particular viewpoint. In an attempt to control this
conflict, expert witness compensation is not allowed to be contingent on the outcome of
the case. However, there is no bar against agreeing to pay expert witnesses a substantial
fee. In any case, if an expert does not give objective and reasonable evidence, this will be
revealed through cross-examination and by conflicting expert testimony.
Page: 169
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
31
Chapter 15
Risk, Responsibility, and Dispute Avoidance
TRUE FALSE
72. Supervision connotes a greater degree of involvement during the construction
process than inspection.
Answer: True
Page: 178
Difficulty: Moderate
Skill: Recall
SHORT ANSWER
73. In what circumstances might a professional be liable because her design is not
perfect?
Answer: When the professional represented to the owner that her design would be
perfect.
Page: 175
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
74. Which of the following is the most common cause of client dissatisfaction?
a. projects being completed behind schedule
b. technical challenges
c. failure to establish realistic client expectations by effective and continuous
communication
d. unforeseen difficulties
Answer: c
Comment: Clients who do not perceive themselves as part of the team are more likely to
be dissatisfied when problems occurred. Keeping clients informed and ensuring they
understand the challenges of the project is the key to satisfaction.
Pages: 176-177
32
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
Chapter 16
Insurance
TRUE FALSE
75. Operating though a corporation will not protect a professional against claims for
personal negligence.
Answer: True
Page: 184
Difficulty: Moderate
Skill: Applied
76. All insurance policies impose on the insurer the duty to defend and the duty to
indemnify when the claim is within coverage.
Answer: False
Page: 185
Difficulty: Moderate
Skill: Applied
Comment: Some insurance policies are designed to simply cover the costs of defending
claims.
SHORT ANSWER
77. What is an insurance deductible?
Answer: The deductible is the minimum portion of the cost of the claim that the insured
must pay before the insurer will cover the rest of the claim.
Page: 183
Difficulty: Easy
Skill: Applied
78. For what tactical reason may a professional choose to not have insurance?
Answer: If it is known that the professional is not insured, there is less chance that they
will be sued.
Page: 184
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
33
MULTIPLE CHOICE
79. On a shopping mall construction project, which of the following best describes the
extent of the subcontractor’s insurable interest?
a. the subcontractor’s tools and other equipment
b. the work performed by the subcontractor
c. the work performed by the subcontractor and the contractor who employed the
subcontractor
d. the physical property of the entire site (i.e. the work done by all of the contractors
and subcontractors)
Answer: d
Comment: The subcontractor has an insurable interest in the work of all of those who
have joined in the common goal of completing the construction project.
Page: 186
Difficulty: Moderate
Skill: Applied
80. Which of the following is true regarding insurance contracts?
a.
b.
c.
d.
the scope of coverage clause defines what claims are covered by the policy
exclusion clauses reduce the scope of coverage
exception clauses reduce the scope of exclusion clauses
all of the above
Answer: d
Comment: See Figure 16-1 on page 192.
Page: 192
34
Difficulty: Moderate
Skill: Applied
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ESSAY
81. In what sense are both the insured and the insurer under a duty of good faith in
insurance contracts?
Answer: When the insurance contract is being entered into, the insured is under a duty of
good faith to disclose all material information. This duty of good faith is imposed partly
because the insured is in a position of power relative to the insurer (i.e. the insured has all
the information and the insurer is the one who has to decide whether to provide coverage,
and if so, at what premium). When a claim is made, the insurer is under a duty of good
faith to defend the claim and compensate if the claim is within coverage. At this stage the
insurer has a large amount of power because he understands better than the insured what
the likelihood of success for the claim is. Furthermore, the insured is vulnerable because
he likely has insufficient capital to cover the claim, and reputation is at stake if the claim
is not paid.
Pages: 189-191
Difficulty: Difficult
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
35
Chapter 17
Bonds
TRUE FALSE
82. Like labour and material payment bonds, lien bonds are put in place at the start of the
contract.
Answer: False
Page: 206
Difficulty: Moderate
Skill: Recall
Comment: Lien bonds are only put in place after a lien is filed.
SHORT ANSWER
83. What steps should the obligee under a surety bond take regarding the safekeeping of
documentation?
Answer: The obligee should ensure that she retains the original copy of the surety
document. The bond will be unenforceable unless the obligee has the original bond
document.
Page: 200
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
84. Which of the following is a course of action a surety under a performance bond could
take upon being notified by the owner of a default by the contractor?
a. complete the construction contract himself
b. pay the owner the face value of the performance bond
c. do nothing, and wait to see if the owner sues the contractor to prove that the
contractor was actually in default
d. all of the above
Answer: d
Comment: These are three of the six options open to the surety in the event of default by
the contractor.
Page: 203
36
Difficulty: Moderate
Skill: Applied
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85. Which of the following may be a defence available to a surety who does not want to
pay out under a performance bond?
a. the surety did not review the obligations on the contractor under the construction
contract
b. the owner did not perform all the obligations under the construction contract
c. the contractor made a misrepresentation to the surety before the surety agreed to
provide the performance bond
d. all of the above
Answer: b
Page: 205
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
37
Chapter 18
Construction Liens
TRUE FALSE
86. If the contractor is financially strong, and files a letter of credit with the owner
stating that she will have no difficulty in paying subcontractors, she need not comply
with the lien legislation trust provisions.
Answer: False
Page: 215
Difficulty: Difficult
Skill: Applied
Comment: All contractors must comply with the trust provisions regardless of their
financial strength.
SHORT ANSWER
87. Why can it be said that contractors are in the business of granting credit?
Answer: The payment scheme used in construction contracts is generally that the
contractor does the work, the work is certified, and then payment is made. Thus, the
contractor provides the goods and services before being paid and is therefore effectively
granting the owner credit.
Page: 210
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
88. How does one perfect a lien?
a.
b.
c.
d.
file a notice of lien in the land registry office
file a certificate of pending litigation in the land registry office
commence a legal action and prove the lien
provide the owner with notice of the lien within the time set by the applicable lien
legislation
Answer: c
Comment: To perfect the lien, claimants must show that they were not paid for work
done or material supplied, as they should have been.
Pages: 212
38
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
89. Contractor A employed two subcontractors, B and C. The total holdback retained by
A is $100. B and C file liens for $60 and $240 respectively. Assuming there are no other
liens on the project, the holdback amount is correct and the liens are proven, how much
will C recover from the holdback?
a.
b.
c.
d.
$80
$100
$240
none of the above
Answer: a
Comment: The liens total $300, which is three times the holdback amount. Therefore,
since each claimant will get 1/3 of his claim, B gets $20 and C gets $80.
Pages: 217-219
Difficulty: Difficult
Skill: Applied
ESSAY
90. Why might a multiple holdback system result in practice even if the legislation only
requires a single holdback system?
Answer: Under a single holdback system only the owner is required by statute to hold
back money from the prime contractor. Under a multiple holdback system all contractors
and subcontractors are required to hold back money from those below them on the
construction chain. Under a single holdback system, if the prime contractor did not hold
back money from the subcontractor after being paid by the owner, the prime contractor
may have to pay out more than was received from the owner to that point. Consider a
$100 prime contract where all the work is subcontracted out for a total subcontracts value
of $92 (i.e. $8 profit for the prime contractor). If the holdback is 10% ($10), and a single
holdback system is used, then the contractor would be required to pay out $92 after
having only received $90 from the owner (i.e. the contractor would have to wait for the
remaining $10 until the end of the holdback period). Because the contractor does not
want to “finance” the project in this way, in practice the contractor will require her
subcontractors to agree to a holdback system. For similar reasons, holdbacks will be
agreed upon down the construction chain, and the result will be a multiple holdback
system.
Page: 218
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
39
Chapter 19
Delay and Impact Claims
TRUE FALSE
91. The measured mile approach is suitable for analyzing jobs involving many short
tasks all quite different in nature.
Answer: False
Page: 232
Difficulty: Difficult
Skill: Applied
Comment: With such a project it is difficult to use productivity on one task to predict
productivity for another. The measured mile approach is better for jobs involving few
tasks, which each extend for a long period of time.
SHORT ANSWER
92. How are critical path activities defined?
Answer: Critical path activities are those for which any delay will cause an equal delay to
the project completion.
Page: 225
Difficulty: Difficult
Skill: Recall
MULTIPLE CHOICE
93. What is the common feature of all activities on the critical path?
a.
b.
c.
d.
they are all dependent on each other
they cannot be performed at the same time
they have no float
all of the above
Answer: c
Comment: The first activity on the critical path is not dependent on any other. Two
critical path activities can take place at the same time, but at least part of the earlier one
must be finished before any part of the later one can be started.
Page: 225
40
Difficulty: Easy
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
94. Which head of damage is generally most difficult to prove?
a.
b.
c.
d.
labour costs
head office overhead
loss of interest on holdback
travel expenses
Answer: b
Comment: Because contractors have one head office which oversees many jobs, it is hard
to determine the portion of head office overhead to ascribe to a particular job.
Page: 230
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
41
Chapter 20
Labour Law
TRUE FALSE
95. Labour law is consistent throughout Canada.
Answer: False
Page: 235
Difficulty: Moderate
Skill: Applied
Comment: Since labour law is within provincial jurisdiction, it varies between provinces.
SHORT ANSWER
96. What feature of the relationship between employers and employees led to the
development of unions?
Answer: The inequality of bargaining power that makes a single employee unable to
bargain effectively against a large employer.
Page: 236
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
97. In what context will it likely be most difficult to effectively organize workers
into a union?
a.
b.
c.
d.
schools (teaching)
construction industry
production-line-oriented assembly plant
lumber mill work
Answer: b
Comment: Because employees in the construction industry are typically hired on a
project-by-project basis, there is seldom sufficient time to organize a union before the
project is over.
Page: 238
42
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
98. Which of the following will release the purchaser of a business from the obligations
under the existing collective bargaining agreement?
a.
b.
c.
d.
the previous owner was bankrupt at the time of the sale
the business has moved to a new location
the new owner closes down the business after a few weeks
none of the above
Answer: d
Comment: None of A to C alone will be determinative of whether the new owner is
bound by the existing agreement. All of the circumstances must be considered.
Page: 242
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
43
Chapter 21
Employment Law
TRUE FALSE
99. Generally employers have the right to sue employees for the mistakes they make that
result in the employer having to pay damages to a third party.
Answer: True
Page: 251
Difficulty: Moderate
Skill: Applied
Comment: Although this right is seldom exercised.
SHORT ANSWER
100. What test do courts apply to determine whether information is confidential?
Answer: If the information would be valuable to a competitor business, then it will likely
be confidential. However, the mutual understanding of the parties when exchanging that
information is also relevant.
Page: 248
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
101. Which of the following will likely constitute just cause warranting dismissal?
a. the employee is late for work twice in one week
b. the employee arrives at work hungover and leaves to go home early; this is the
first alcohol-related absence for the employee
c. the employer’s business is struggling because of an economic downturn
d. none of the above
Answer: d
Comment: Each of A to C are either unrelated to the employee, or too minor to constitute
just cause.
Pages: 251-252
44
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
102. What aspect of the employment standards dispute process is most different to
litigating in court?
a.
b.
c.
d.
filing the claim
notifying the defendant of the claim
proving the claim
recovering of a judgment
Answer: d
Comment: The employment standards branch of the provincial government typically
pursues the employer to recover judgment. This is different from the court system where
the plaintiff must pursue the defendant to recover judgment.
Page: 254
Difficulty: Moderate
Skill: Applied
ESSAY
103. An employee was clearly wrongfully terminated by an employer, and then tried in
vain for over a year to find a new job. Discuss the factors relevant to the employee’s
decision of whether to sue in court or to make a claim under the employment standards
legislation.
Answer: The first issue is limitation periods. Employment standards legislation typically
sets short notice periods, and if the employee waited a year to make the claim, she may
well have missed the limitation period. The limitation period to bring a court action will
be longer (e.g. 6 years for an action for breach of contract in British Columbia). The
second issue is quantum of damages. The damages the court would order under the
common law will likely be more generous than the amount that would be payable under
the employment standards legislation. The third issue is jurisdiction. The employment
contract, or the legislation, may require the dispute to be resolved by the employment
standards branch, and not in court. The fourth issue is recoverability. The government
assists with recovery of claims under the employment standards legislation, but not with
recovery of court judgments.
Page: 256
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
45
Chapter 22
Health and Safety Law
TRUE FALSE
104. Compliance with the general provincial occupational health and safety legislation is
always enough to avoid contract and tort liability.
Answer: False
Page: 262
Difficulty: Moderate
Skill: Recall
Comment: Contracts may require stricter standards. Furthermore, in unusually dangerous
circumstances, tort duties may require more than mere compliance with the minimum
standards set by the occupational health and safety legislation that is of general
application. Engineers, architects, or contractors who fail to meet the stricter standards
may be liable to the owner if accidents occur and cause damage to property.
SHORT ANSWER
105. What workers’ rights are given up in exchange for the benefit of compensation
under workers’ compensation legislation?
Answer: Workers must give up the right to sue their employer (in tort or contract) for
causing their injuries.
Page: 259
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
106. What actions may be appropriate for a professional engineer to take if an owner
requests the engineer to certify work which the owner and the engineer agree does not
comply with the building code?
a. refuse to certify the work
b. explain to the owner that the engineer has a duty to report code breaches to the
regulatory authority
c. report the incident to the regulatory authority if the owner refuses to rectify it
d. all of the above
Answer: d
Comment: But, if after doing B, the owner promptly arranges for the work to be rectified
and there is no immediate safety concern, the engineer probably need not report the
incident to the regulatory authority.
Page: 265
46
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
Chapter 23
Environmental Law
TRUE FALSE
107. Where federal and provincial statutes both deal with the same issue, the federal
legislation will always apply and the provincial one will not.
Answer: False
Page: 272
Difficulty: Difficult
Skill: Applied
Comment: Unless the provisions have a direct operational conflict, they will both apply.
If they do conflict, the federal legislation will prevail.
SHORT ANSWER
108. What is the difference between an environmental site assessment and an
environmental audit?
Answer: Environmental site assessments investigate and deal with pollution on a site,
while environmental audits review a company's performance to determine compliance
with environmental regulations.
Page: 269
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
109. Who may pass laws relating to acceptable standards of land contamination?
a.
b.
c.
d.
federal government
provincial government
municipalities
all of the above
Answer: d
Comment: The federal government can set standards for federal land. The provincial
government can set standards for provincial land, or delegate the authority to
municipalities to do so.
Pages: 272-273
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
47
110. What type of environmental assessment would likely be required for a pipeline
project that will cut through First Nations land and will disrupt the migratory path of
three species of nearly extinct animals?
a.
b.
c.
d.
screening
comprehensive study
mediation
panel review
Answer: d
Comment: Panel review is the most intense form of environmental assessment, and
would be the likely option for such a sensitive project.
Page: 274
48
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
Chapter 24
Aboriginal Law
TRUE FALSE
111. It is prudent, but not mandatory, for private parties to consult with aboriginal people
affected by a project before commencing the project.
Answer: True
Page: 278
Difficulty: Moderate
Skill: Applied
SHORT ANSWER
112. If an owner wants to contract with an aboriginal contractor, but the contractor
cannot get bonded, what precaution might the owner take to reduce the harm associated
with default by that contractor?
Answer: The owner could insist on an increased holdback.
Page: 278
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
49
Chapter 25
Securities Law
TRUE FALSE
113. Because the securities guidelines issued by the Canadian Securities Administrators
(CSA) do not create a cause of action for inadequate reporting, they are not relevant when
claims of misrepresentation are made.
Answer: False
Page: 282
Difficulty: Moderate
Skill: Applied
Comment: They are relevant, but not determinative, when deciding on the standard of
care.
SHORT ANSWER
114. In the context of securities regulation, what is the purpose of a prospectus?
Answer: The prospectus provides financial information to investors so they can make an
informed decision on whether or not to invest.
Page: 281
50
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
Chapter 26
Privacy Law
TRUE FALSE
115. An organization will not likely be liable for disclosure of personal information if
that information is already publicly available.
Answer: True
Page: 285
Difficulty: Moderate
Skill: Applied
SHORT ANSWER
116. Why is privacy legislation important for protecting citizens from misuse of their
private information?
Answer: Because there is little protection against the misuse of private information at
common law.
Page: 284
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
117. What must an organization do before collecting personal information?
a.
b.
c.
d.
ensure that persons can easily access their personal information
limit the use of the information to the purpose for which it was collected
identify the purpose for which personal information is collected
all of the above
Answer: c
Comment: The duties set out in A and B are important, but are only done after the
information has been collected. It is important that the purpose for collecting the
information be identified at the outset (i.e. the organization cannot collect a large amount
of information and then look for justifications later).
Page: 284
Difficulty: Moderate
Skill: Applied
Copyright © 2016 Pearson Canada Inc.
51
Chapter 27
Internet Law
TRUE FALSE
118. Clicking "I agree" when making a purchase on an e-commerce website normally
leads to formation of a legally enforceable contract.
Answer: True
Page: 290
Difficulty: Moderate
Skill: Applied
SHORT ANSWER
119. Why are jurisdictional issues particularly relevant in Internet law?
Answer: Because the Internet spans provincial and international boundaries.
Pages: 287-288
Difficulty: Moderate
Skill: Applied
MULTIPLE CHOICE
120. Which legal right might cyber-squatting infringe?
a.
b.
c.
d.
copyright
trademark
right to privacy
freedom of contract
Answer: b
Comment: If a company other than ABC Insurance uses www.ABCinsurance.com to sell
insurance, consumers would likely be misled as to whom they are dealing with. A
trademark gives the holder the exclusive right to use the mark in marketing the goods or
services covered by the mark.
Page: 289
52
Difficulty: Moderate
Skill: Applied
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