LAWS Test 2 - Chapters covered etc - F23

Units 5 to 10 85 questions - T/F and M/C Duplessis chapters covered : Chapter 5 – An introduction to contracts  What is a “contract”? A contract is a deliberate and complete agreement between two or more competent persons, not necessarily in writing, supported by mutual consideration, to do some act voluntarily, and which agreement is enforceable in a court of law.  What are the elements of a contract? Agreement between the parties Completed negotiations Deliberately made Voluntarily made Between two or more competent persons Supported by mutual consideration Not necessarily in writing  How many people do you need to form a contract? two or more people (called the parties).  What are the advantages of contracts? a. Contracts permit both parties to rely on the terms they have negotiated and plan their business affairs accordingly. b. They create binding promises that can be enforced in court. c. If a dispute arises between the two parties, there are various options for dispute resolution. d. They ensure that each party receives what they bargained for.  Must all contracts be in writing to be enforceable? No, Not necessarily in writing.  What are the purposes of contract law? Contracts permit parties to rely on the terms they have negotiated and plan their business affairs accordingly. Contracts ensure that each party gets what it bargains for—namely, performance of the promises made to it or monetary compensation in its place.  What are examples of business contracts? Leases Sales contracts Loan contracts Supply purchase contracts Employment contracts Confidentiality agreements Even a simple casual sale (a pack of gum) is a contract. ALL contracts are subject to the same legal rules.  Why is clear communication so important in contractual negotiations? it helps the parties understand each other's intentions. By communicating clearly, both parties can ensure that they are on the same page regarding the terms of the contract, which can prevent misunderstandings and disputes down the road.  How does the existence of a written contract assist in dispute resolution regarding the contract? A written record helps establish the terms of the agreement to which the parties committed. It helps to remove possible sources of contention or disagreement, especially as memories fade.  What is breach of contract? LAWS-3016 - TEST #2

A breach of contract occurs when one party in a binding agreement fails to deliver according to the terms of the agreement. A breach of contract can happen in both a written contract and an oral contract. The parties involved in a breach of contract may resolve the issue among themselves or in a court of law. Chapter 6 – Forming Contractual Relationships  What must an “offer” contain? -An offer is the starting point for all contracts. -A promise to enter into a contract on specified terms (the “offer”), as soon as it is accepted. -Certainty of Offer: All essential terms are set out. (some uncertainty can remain.)  What is an “invitation to treat”? Is an advertisement an “offer” or an “invitation to treat”? A communication expressing a wish to do business—no legal consequences. It is not considered an offer. It is only treated in law as an expression of willingness to do business. Most advertisements and displays of goods in stores are invitations to treat.  Are oral contracts enforceable? Although it can be difficult to prove the terms of an oral contract in the event of a breach, this type of contract is legally binding.  Why is it a good idea to get the contract in writing? A written record helps establish the terms of the agreement to which the parties committed. It helps to remove possible sources of contention or disagreement, especially as memories fade.  Does the acceptance of an offer have to be exactly what the offer is or can there be slight variations? Acceptance occurs when an offer made by one party is unconditionally and unequivocally accepted by the other party.  What is a counteroffer? Is it a rejection of the offer? -A counteroffer is a form of rejection that automatically terminates the original offer, because the offeree is turning down the offer and proposing a new one in its place. -A counteroffer refers to any change to a term or an offer—price, quantity, time of delivery, method of payment, etc.  When can an offeror withdraw or revoke an offer? Revocation: The withdrawal of an offer, anytime before acceptance.  What is acceptance of an offer? -An unqualified willingness to enter into a contract on the terms in the offer. -This occurs when an offer made by one party is unconditionally and unequivocally accepted by the other party. -A contract comes into existence at the moment of acceptance. -Acceptance must normally be communicated to the other party to be effective.  What is “consideration”? -Consideration: The price paid for a promise. Each party must give something of value for receiving something of value from the other. The buyer promises to pay the purchase price in exchange for the seller’s promise to provide. -Gratuitous promise: A promise for which no consideration/no contract is given. It has not been “purchased.”  Who are the parties to a contract? Offeror: The person who makes an offer LAWS-3016 - TEST #2

Terms that are not expressly included in a contract but that are necessary to give effect to the parties’ intention. A judge may imply terms in a contract to make the contract workable.  How do the courts deal with ambiguities in a contract? -Courts are required to enforce the contract as it is written and to rely primarily on the plain, ordinary meaning of the words that the parties have chosen. -The court assigns as reasonable a meaning as possible to vague or ambiguous terms. -If the contract has been drafted by one of the parties, any ambiguity in language will be construed against that party in favour of the other.  What are three ways that a party can control its exposure to liability for breach of contract? First, a party could insist on a conditional agreement should its ability to perform be contingent on financing or other approvals. Second, it could also seek a limitation of liability clause whereby its liability for breach is limited to something less than would otherwise be recoverable. Third, it could insist on an exemption clause that is a term that identifies events causing loss for which there is no liability. Finally, a party can insist on a liquidated damages clause—a term that specifies how much one party must pay the other in the event of breach.  What is “parole evidence”? -The parol evidence rule limits the outside evidence a party can introduce concerning the contents of a contract that has been put in writing. -The rule forbids outside evidence as to the terms of a contract when the language of the written contract is clear and the document is intended to be the sole source of contractual content. -Entire contract clause: A term in the contract in which the parties agree that their contract is complete as written. -It is used to ensure application of the parol evidence rule.  What is a “condition precedent”? What is a “condition subsequent”? Condition subsequent An event or circumstance that, when it occurs, brings an existing contract to an end. Condition precedent An event or circumstance that, until it occurs, suspends the parties’ obligations to perform their contractual obligations.  What are the different ways to manage risks in contractual dealings? Changed Circumstances Circumstances may arise that prevent a party from performing its contractual obligations. The law permits the use of contractual terms as a buffer against future uncertain events to limit liability. Purchasers of real estate may rely on the conditional agreement by making the contractual obligation to buy and sell subject to financing, rezoning, and subdivision approval.  What is “ quantum meruit ”? Contractual quantum meruit : Awarding one party a reasonable sum for the goods or services provided under a contract. Chapter 8 – Non-enforcement of contracts  What is a “void contract”? A contract involving a defect so substantial that it is of no force or effect. LAWS-3016 - TEST #2

 What is a “voidable contract”? A contract that, in certain circumstances, an aggrieved party can choose to keep in force or bring to an end.  What is “legal capacity”? The ability to make binding contracts. -The law assumes that individuals and organizations have the legal capacity to form contracts. -Consent, voluntariness -However, children and those with mental incapacities are given special legal protection. - If a person is mentally impaired through illness or intoxication such that he or she is unable to understand the consequences of their actions, that person can seek to void the contract if the other party had awareness of the mental impairment.  Who has the legal capacity to enter into contracts? Age of majority : The age at which a person becomes an adult for legal purposes. -Provincially set -Minors are not obligated to the contracts they make. -But they do have the option to fulfill contract obligations and/or enforce others. -Contracts with minors are voidable.  What is “undue influence”? Unfair manipulation that compromises someone’s free will or choice. The contract is voidable at the option of the victim. Example: A contract between an elderly person and his or her caregiver  What is “duress”? : The threat of physical or economic harm that results in a contract. The law assumes that the threatened party did not freely consent. Duress now includes economic duress. Economic duress: The threat of economic harm that coerces the will of the other party and results in a contract. When economic duress is established, the contract is voidable.  What is “misrepresentation”? A false statement of fact that causes someone to enter a contract. -Parties negotiating are not obligated to volunteer information. -Each party looks out for itself. -If information is wanted, they should ask for it. -There are times when lacking information is misrepresentation. -One party provides only partial information to the other side. -One party actively conceals the truth. -Rescission: The remedy that results in the parties being returned to their pre-contractual positions. To count as a misrepresentation, it must be proven that the statement -is false -is clear and unambiguous -is significant to the decision of whether or not to enter into the contract induces the aggrieved party to enter into the contract -is concerned with a fact and not an opinion LAWS-3016 - TEST #2

Novation: enter into a whole new contract  When is a contract “frustrated”? Frustration: Termination of a contract by an unexpected event or change that makes contractual performance functionally impossible or illegal. Neither side is liable to the other for breach. It deals with events that occur after the contract has been formed (different from “mistake”).  What is a “force majeure clause” deal with risks of unforeseen events, and allow parties to delay or terminate a contract Events might be floods, war, strike, currency devaluation, or rationing of raw materials.  What elements need to be established in a successful action for breach of contract? -The existence of a contract; -Performance by the plaintiff or some justification for nonperformance; -Failure to perform the contract by the defendant; and, -Resulting damages to the plaintiff.  What is a “warranty”? What is a “condition”? What is the difference between them? To determine what the remedy in a breach will be, the courts will first decide if the term breached is a condition or a warranty. Condition : An important term that, if breached, gives the innocent party the right to terminate the contract and claim damages. Warranty: A minor term that, if breached, gives the innocent party the right to claim damages only. Innominate term: A term that cannot easily be classified as either a condition or a warranty.  What is the purpose of awarding damages for breach of contract? The purpose of damages in contract law is generally to compensate a plaintiff.  What is “unjust enrichment”? Unjust enrichment occurs when Party A confers a benefit upon Party B without Party A receiving the proper restitution required by law. This typically occurs in a contractual agreement when Party A fulfills his/her part of the agreement and Party B does not fulfill his/her part of the agreement.  What is “specific performance”? This is an example of an equitable remedy. Instead of compensation, the party who breached is ordered to do exactly what the contract obligated her to do. This is only available when the item is unique, and cannot be replaced by money. The court can refuse to use it under certain circumstances.  What is “ quantum meruit ”? Contractual quantum meruit: Awarding one party a reasonable sum for the goods or services provided under a contract.  When can an innocent party treat the contract as at an end? Anticipatory breach: A breach that occurs before the date for performance. It is actionable, so the innocent party can sue immediately. The innocent party is entitled to damages. The innocent party is entitled to treat the contract as terminated.  Is the timing of the breach of contract important? Yes. LAWS-3016 - TEST #2

 Is it illegal to breach a contract? Breaching a contract is generally not considered a criminal offense unless it involves something like fraud.  What must a plaintiff demonstrate in a lawsuit for breach of contract? a valid contract, performance, breach, and damages.  Does a plaintiff who suffers a breach of contract by the other side have a duty to mitigate the damages? All who suffer a breach of contract are obligated to take reasonable steps to minimize the losses resulting from a breach of contract or other wrong. Reasonable costs associated with the mitigation are recoverable by the party in breach. Chapter 22 – Professional services  What is meant by the term professional? Someone engaged in an occupation, usually governed by a professional body, requiring the exercise of specialized knowledge, education, and skill. Professionals have ethical obligations that others do not have. Most are governed by the rules of professional conduct and codes of ethics of their professional bodies. The professional/client relationship is a special relationship of trust and loyalty. Professionals must avoid conflicts of interests, or deal with them quickly.  How does one become a professional? engaged in an occupation, usually governed by a professional body, requiring the exercise of specialized knowledge, education, and skill.  What are the responsibilities of a professional? (in tort and in contract) Contracts: Contractual terms are negotiated, and both professional and client must comply with the terms of the contract. Often terms are presented by the professional. Businesses should treat these contracts with the same care and detail as other contracts. Retainer: An advance payment requested by a professional from a client to fund services to be provided to the client and thereby minimize the professional’s exposure to risk. Tort: A professional’s duties in tort are similar to other service providers. Negligence is the most common cause of tort liability for professionals.  What is the Duty of Care of a professional? Professionals owe fiduciary responsibilities to their clients. Duties of loyalty, trust, and confidence Beyond contractual or tort responsibilities Professionals must: Avoid conflict of interest. Refrain from using the relationship for personal profit beyond reasonable fees. Disclose all relevant information to the client. Act honestly and in good faith. Maintain confidentiality of client information.. Professionals owe a duty of confidentiality to clients. They must not disclose any information provided by the client without the client’s consent. This is related to lawyer-client privilege , or the right of a client not to have communications between lawyer and client divulged to third parties. Privilege is only attached to legal advice—no other forms of advice. LAWS-3016 - TEST #2

• Industrial design: Visual features of shape, configuration, pattern, ornamentation, or any combination of these, applied to a finished article. -Common in toys, vehicles, furniture, wallpaper patterns, cell phones, and computer-generated icons. Requirements for Registration -Normally, a written description and a graphic depiction, photograph, or drawing is required. -The owner is entitled to make the application. -The basic principle is that the designer is the owner unless the design was ordered and paid for by another. Industrial design registration lasts for 15 years. -The owner gets the exclusive right to make, import, or sell any article in respect to which the design is registered. -Proper marking: Capital “D” with a circle around it, set next to the name of the proprietor. • Trademark: A word, symbol, design, or any combination of these used to distinguish the source of goods or services. It could be anything, but these are the most common examples: • A word, words, or slogan (Billabong) (Shake ‘n Bake) (“Just Do It”) • A design (McDonald’s golden arches, Disney’s cartoon characters) • A series of letters (BMW for a car) • Numbers (Lotto 6/49) • A symbol (Nike’s swoosh) • A distinguishing guise (Coca-Cola bottle) • Any combination of the above Trade name: The name under which a sole proprietorship, a partnership, or a corporation does business. -It is closely related to trademarks, and is also protected under trademark law. -It can overlap with trademarks, such as “Apple Inc.”; the company name is the same as its trademark. • Trademarks can be registered or unregistered. -Unregistered trademark: Often referred to as a common law trademark. • It comes into existence when a business simply adopts and uses it. • Infringement can be addressed through the tort of passing off. • It only has rights in the geographic area in which it has been used. -Registered trademark: Has more protection. • Protection is national. • It creates a presumption of ownership, validity. Domain name: An Internet address, consisting of: Second-level domain . first-level domain (Amazon . com, UBC . ca) -The domain name is controlled by organizations that act as registrars, such as ICANN (.com, .org, .net, .biz), CIRA (.ca). -It is sold as first-come, first-served. -A domain name clashes with trademarks when the domain name includes another’s trademark. -Disputes are settled through litigation using the general law on trademarks. In some cases, domain names are registered for illegitimate purposes: -Cyber-squatting: The bad-faith practice of registering trademarks or trade names of others as domain names for the purpose of selling the domain name to the rightful owner or preventing the rightful owner from obtaining the domain name. Requierments: Demonstrate title to the trademark. Show that the trademark is distinctive or could become distinctive. LAWS-3016 - TEST #2

Show that the trademark is registrable. Amendments to the Trade-marks Act -The definition of trademark is expanded to include a hologram, a moving image, a sound, a scent, a taste, and a texture. -The term of protection for new registrations is reduced from 15 to 10 years. (It can be renewed for further 10-year terms as long as the renewal fee is paid and the trademark continues in use.) -Applicants are no longer required to provide a declaration of use or date of proposed use. -Registration of the trademark alone creates an enforceable right. -A trademark can be attacked on the basis of non-use, but only three years after registration. • Copyright: The right to prevent others from copying or modifying certain works. -It is governed by the Copyright Act. -It provides a right of exploitation to authors of certain works. Copyright does not protect an author’s underlying ideas or facts. -It applies to every original literary, dramatic, musical, and artistic work. • Almost anything written, composed, drawn, or shaped. -The work must meet the requirements of originality and fixation . -Originality : The work must “originate” from the author, not copied from another. -Fixation : The work must be expressed in some fixed form, such as paper or diskette. -Copyright arises automatically on the creation of a work. -There is an optional registration process. -The owner may mark a work, but this is not mandatory. -The typical form of a copyright notes: © year of publication; name of owner. -An exception is when an employee creates the work as part of their job—the employee will own the copyright. -The copyright generally lasts for the life of the author or composer + 70 years. • Rights provided to the owner of the copyright can include (among many): Reproduction : The right to reproduce the work or a substantial part of it in any material form. Public performance: The right to perform the work or a substantial part of it. Publication Translation Adaptation : The right to convert works into other formats (e.g., a book to a movie). Mechanical reproduction: The right to make sound recordings or cinematographic recordings. Rental : The right to rent out sound recordings and computer programs. -Copyright is infringed when anyone does, without consent of the owner, anything only the owner can do. -This includes copying all or a substantial part of a work. • “Substantial” is tricky; it usually means a key or distinctive part. -Copyright is infringed when someone does something that only the copyright owner can do, such as make copies. -Enforcement is difficult. • The author of a work has moral rights: the author’s rights to have work properly attributed and not prejudicially modified or associated with products. -Moral rights exist independently of copyright. • -They give control over how authors’ works are used. -Moral rights include: • Paternity (can choose a pseudonym) • Integrity (object to uses of work if prejudicial to the author’s reputation) • Association (being used in association with another product, service, cause) -There are many specific exemptions, such as: For libraries, museums, archives, people with disabilities, and educational institutions For copying for private purposes, combining or creating a “mash-up,” making a backup LAWS-3016 - TEST #2

Delivery will be made within a reasonable time. In a breach, the innocent party can only sue for damages for breach of contract.  what are the "implied conditions" of the sale of goods act? The seller has the right to sell the goods. The goods will be reasonably fit for the intended purpose. The goods will be of merchantable quality. The goods will correspond to the sample. The goods are equivalent to their description. In a breach, the buyer can return the goods and obtain a return of the purchase price, or proceed with the contract and consider the breach of condition as a breach of warranty, and sue for damages.  what is an innocent party entitled to when a warranty is breached? what are innocent parties entitled to when a condition is breached? Condition- In a breach, the buyer can return the goods and obtain a return of the purchase price, or proceed with the contract and consider the breach of condition as a breach of warranty, and sue for damages. Warranty-In a breach, the innocent party can only sue for damages for breach of contract. Chapter 20 – The Employment Relationship  Define Employment Law and know things like the historical terms for e/er and e/ee The vast body of law that regulates employment. It is rooted in English common law, with an overlay of legislation (except Quebec). Federal and provincial governments can pass employment legislation. Federal: Laws that affect employees of the federal government, federally regulated industries (banking, airline, broadcasting, etc.). An estimated 10% of all employees are subject to federal regulation. Provincial: Laws that affect all other employees, including provincial.  What are the 3 types of employment relationships? Hint: Independent contractor v. etc. Employment relationship: A contractual relationship whereby an employer provides remuneration to an employee in exchange for work or services. Not all who work for another are employees. Independent contractor : An agent or person who is in a working relationship that does not meet the criteria of employment. (Doctors, lawyers) Dependent contractor: An independent contractor with economic dependency on the employer as a result of working exclusively or nearly exclusively for the employer for a long period.  Know how to differentiate between the different types of employment -The distinction between an employee and an independent/dependent contractor can be difficult for the courts to determine. -Various factors are considered, such as who is providing the equipment, how much control the worker has, and if the worker is hiring anyone to help. -The distinction between independent and dependent contractors is clearer: a contractor working exclusively or almost exclusively for an employer is a dependent contractor.  Why is it important to know the type of employment relationship? It's important because employment status directly affects a person's entitlement to employment insurance benefits under the Employment Insurance Act.  What is meant by the term Vicarious Liability? One person is responsible for the misconduct of another because of the relationship between them. This is most commonly seen in an employer/employee relationship. An employer is liable for the torts of an employee committed in the course of their employment. LAWS-3016 - TEST #2

Vicarious liability provides the opportunity for compensation and deterrence—the victim can recover damages, and there is an incentive for employees to exercise care with training employees.  What is meant by the term Prohibited Grounds of Discrimination? Human rights acts prohibit discrimination: the act of treating someone differently on the basis of a prohibited ground. o How many are there and provide 2 examples. Marital status, Race, Colour, Physical or mental disability, Religion or creed, Sex and sexual orientation, Age (7), Adverse effects discrimination : Discrimination as a result of a rule that appears neutral but in its effects is discriminatory. Requiring workers to wear hard hats and work every second Saturday may be to discriminate against those who wear a turban or don’t work on Saturdays. Systemic discrimination : Discrimination that results from the combined effects of many rules, practices, and policies. If a workforce is mostly male, there may be systemic discrimination within it.  What are the types of discrimination? Direct discrimination. Discrimination arising from disability. Indirect discrimination. Harassment. Victimisation. Failing to comply with duty to make reasonable adjustments.  What is meant by the term BFOR? Bona fide occupational requirement (BFOR): A defence that excuses discrimination on a prohibited ground when it is done in good faith and for a legitimate business reason. Ex. Requiring a valid driver’s licence is a BFOR for a job as a driver. Requiring a hard hat may be a BFOR for construction.  What is Duty to accommodate? The duty of an employer to modify work rules, practices, and requirements to meet the needs of individuals who would otherwise be subjected to unlawful discrimination.  What are the types of employment contracts? The employment relationship is contractual. The general principles of a contract apply.  What is the difference between fixed and implied terms and provide an example of each? Fixed- or definite-term contract: A contract for a specified period of time, which automatically ends on the expiry date. Indefinite-term contract: A contract for no fixed period, which can end on giving reasonable notice.  What is meant by the following terms? Workplace discrimination, harassment, pay equity. -Workplace harassment: Any unwanted physical or verbal conduct that offends or humiliates the victim and detrimentally affects the work environment or leads to adverse job-related consequences for the victim. o It can be threats, intimidation, abuse; jokes about race, sex, age; display of offensive pictures, or unnecessary physical contact. LAWS-3016 - TEST #2

>Severance Pay: An amount owed to a terminated employee under employment standards legislation. It can also include benefits, coverage, stock options, and career counseling. >If the Severance Pay package is accepted, the employee signs a release which helps the employer avoid a lawsuit.  Know what kinds of conduct provide an employer with grounds for termination. Aggravated or moral damage and Punitive damage  WSIB, material change in circumstances, etc. Workers Safety and Insurance Board is an independent agency that provide workplace safety insurance to workers and employers. Chapter 13 – The Agency Relationship (least questions)  What is an agency and who are the parties to an agency? Agency: A relationship that exists when one party (the agent) represents another party (the principal) in the formation of legal relations. Agent : A person who is authorized to act on behalf of another. Principal : A person who has permitted another to act on her or his behalf. Legal relationships are binding.  What laws govern agencies? Law of agency: The law governing the relationship where one party, the agent, acts on behalf of another, the principal. It addresses complications resulting from these relationships.  Provide 3 examples of agency? Touring, Hotel, public  What are the types of agencies (HINT: 4 types) Agency by agreement, agency by estoppel, Agency by ratification, Agency by necessity (when someone becomes incapacitated or emergency situation)  What is so special about real estate agents?  Unlike most other agents, usually a real estate agent has no authority to make a binding contract of sale on behalf of his or her principal. A principal could grant actual authority to a real estate agent to enter a contract on his or her behalf.  What are the duties of an agent? May be able to delegate responsibility. W/o express instructions, an agent's performance must meet the standard of the industry. If agents fail to perform duties imposed on them by an agency relationship, they are in breach of the contract. FIDUCIARY: a person who has a duty of good faith toward another because of their relationship. An agent owes fiduciary duty to the principal, not personally profit from it (“profit rule”), and not be in a conflict of interest (“conflict rule”). For Insurance: Insurance agents have a duty of care to the insurance company. They also have a duty of care to the customer.  What are the duties of the principal?  Duties of Principal: Pay the agent a specified fee or percentage for services rendered. Assist the agent in the manner described in the contract. Reimburse the agent for reasonable expenses associated with carrying out the agency duties. Indemnify against losses incurred in carrying out the agency business  What about the liability of an agent? Is personally liable for any yorts that he or she commits. The principal is vicariously liable for the agents actions so long as the agent is acting within express, implied, or apparently authority.  How does an agency agreement come to an end? The principal should give notice to the third parties. LAWS-3016 - TEST #2

Ceases by Operation of the law, occur due to death, dissolution, insanity, or bankruptcy of one of the parties. The parties agree to bring their relationship to an end. One party gives notice of termination to the other.  Actual v. apparent authority of agents Actual authority: The power of an agent that derives from either express or implied agreement. Express authority: Written or oral authority granted by a principal to an agent. Implied authority: An agent’s authority that is present by implication only. Apparent authority: The power that an agent appears to have to an outsider because of conduct or statements of the principal. Chapter 17 – Personal Property  What is Property and what are the types of property? Real property (Aboriginal title= unique form of title in certain lands in Canada belonging to indigenous people) & Personal property(tangible= personal property that is moveable, the value of which comes from its physical form, Intangible = goodwill, reputations).  How is property acquired? Land can be acquired through purchasing or leasing. Goods can be acquired by purchasing or manufacturing. Insurance coverage is bought by paying premiums. Intellectual property by creating it.  What are the rights associated with Property? The bundle of rights (exclude, possess & use, transfer or dispose)  What is meant by the term bailment and who are the parties to a bailment? Bailment: temporary transfer of possession of personal property from one person to another. (Lend a friend your car. Leave your car at a garage for repairs. Pay a storage company to store your car. Lend a lawn mower to your neighbour.) Bailor: the owner of property and transfer possession. Bailee: receives the possession.  Give an example of bailment? Lend a friend your car. Leave your car at a garage for repairs. Pay a storage company to store your car. Lend a lawn mower to your neighbour.  What is meant by terms Bailment for value and Gratuitous bailment? ● Bailment for value: commercial bailments are based on a contract requiring payment for the use of the property or as compensation for storage or another service Gratuitous bailment: no payment or compensation involves in the agreement  Provide two examples of specialized bailments? Transportation —> Carrier(Cover loss but at limited amount), Storage (need reasonable protection like fire alarm), Repairs (Right to retain possession until receive a payment). Lodging —> Inkeeper (hotel, guesthouse)  When bailment involves payment what is the standard of care and to whom does it belong? Pay to storage = High / Perform a test drive (no payment) = Low LAWS-3016 - TEST #2

Some sample questions : Once made, an offer can be revoked. a. True b. False Which type of misrepresentation entitles the wronged party to cancel the contract? a. fraudulent misrepresentation b. general misrepresentation c. innocent misrepresentation d. unknowing misrepresentation What is the legal definition of "mistake"? (You will be given options – choose the correct definition) - A n error made by one or both party that serious ly undermines a contract Joanna offered to pay Mitch $100 a day to show her cat in an upcoming three-day competition. Mitch accepted and showed Joanna’s cat, winning best of breed during each day's competition. Joanna paid Mitch $300. What is the present status of their contractual arrangement? a. The termination of the competition frustrated the contract. b. The contract terminated by agreement of the parties. c. The contract has been terminated by performance. d. The payment of the settlement ended the contract. Which term best describes a minor term in a contract for the sale of goods? a. implied term b. warranty c. condition d. innominate term

A patent gives the inventor the right to exclude others from making, selling, or using the invention to which the patent relates for a period of 20 years from the date of filing the application. a. True b. False An employer is vicariously liable for the torts committed by an independent contractor in the ordinary course of employment. a. True b. False Jenny has been employed as a "greeter" in a department store for several years. Recently, her employer recently advised her that she is being transferred to the shipping bay of the store where she will unload trucks. On what legal basis might Jenny challenge her employer's plan? a. Without her consent, the move will constitute constructive dismissal. b. The employer has breached employment standards legislation. c. Her employer has failed to prove that it has a genuine business reason for the transfer. The professional's fiduciary responsibilities include a. following the client's instructions b. acting honestly, in good faith, and with due care c. not to be in any conflict of interest regarding the client's affairs d. all of the above Pat sold his house and went travelling for two months. While he was away, he placed his furniture in storage with Matt's Storage Inc. In these circumstances, Pat is a bailee and Matt's Storage Inc. is the bailor. (Trick: Bailor is the Owner) . a. True b. False