Test Bank all Chapters

Business Law in Canada, 12th Canadian Edition, 12e Richard Yates, Teresa Bereznicki-Korol, Trevor Clarke

(Test Bank all Chapters)

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1 © 2020 Pearson Canada Inc.Business Law in Canada, 12e (Yates/Bereznicki-Korol/Clarke) Chapter 1 Managing Your Legal Affairs

1) In the context of a sophisticated client, "sophisticated" can best be defined as

• complicated, self-reliant, and cosmopolitan.
• refined and cultured.
• simple and naïve.
• confident, knowledgeable, and up to date.
• aggressive, dynamic, and forceful.

Answer: D

Diff: 1 Type: MC Page Ref: 2

Topic: Ch. 1 - Becoming a Sophisticated Client

Skill: Recall

Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."

Bloom's Taxonomy: Knowledge

2) Which of the following best describes the likelihood of a student becoming involved in a situation necessitating legal advice?

• A student, or someone close to a student, sometimes becomes involved in such a situation.
• A student, or someone close to the student, will always become involved in such a situation.
• Because students are not business people, they never become involved in such situations.
• Because students cannot be sophisticated, they will often become involved in such situations.
• Legal advice is not available to students.

Answer: A

Diff: 1 Type: MC Page Ref: 3

Topic: Ch. 1 - "I Think I Need Legal Advice..."

Skill: Applied

Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."

Bloom's Taxonomy: Knowledge

3) Becoming a sophisticated client will

• ensure that a business person never needs a lawyer.
• help a business person manage her legal affairs more efficiently and effectively.
• result in a business person developing a bias against lawyers.
• relieve a business person from having to conduct legal research.
• protect a business person from needing legal advice.

Answer: B

Diff: 2 Type: MC Page Ref: 3

Topic: Ch. 1 - "I Think I Need Legal Advice..."

Skill: Applied

Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."

Bloom's Taxonomy: Knowledge

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2 © 2020 Pearson Canada Inc.4) Having a good lawyer on your team is

• usually too expensive to be worthwhile.
• only necessary for large companies.
• a good alternative to becoming a sophisticated client.
• a legal requirement prior to incorporating a business.
• a critical component of being a sophisticated client.

Answer: E

Diff: 3 Type: MC Page Ref: 4

Topic: Ch. 1 - Becoming a Sophisticated Client

Skill: Applied

Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."

Bloom's Taxonomy: Knowledge

5) Which of the following best describes the role of the lawyer?

• The lawyer makes the legal decisions for the client.
• The lawyer is simply one of the experts the businessperson consults.
• The client must follow the lawyer's instructions, as long as they are lawful.
• The client makes decisions regarding civil matters; the lawyer makes decisions regarding

criminal matters.

• The lawyer makes decisions regarding civil matters; the client makes decisions regarding

criminal matters.

Answer: B

Diff: 2 Type: MC Page Ref: 4

Topic: Ch. 1 - The Role of the Lawyer

Skill: Recall

Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

6) One reason for a lack of respect for lawyers is that

• many people do not understand the role of the lawyer in the solicitor-client relationship.
• lawyers are not bound by a code of professional conduct.
• lawyers who breach their duties are generally not subject to any punishment.
• lawyers are rarely able to provide information or advice relevant to business matters.
• the cost of legal advice generally outweighs its benefit.

Answer: A

Diff: 2 Type: MC Page Ref: 3

Topic: Ch. 1 - The Role of the Lawyer

Skill: Recall

Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

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3 © 2020 Pearson Canada Inc.7) The role of the lawyer is to

• provide legal advice relevant to the client's situation, which the client is free to ignore.
• provide legal advice relevant to the client's situation, which the client has no choice but to

follow.

• tell clients what they must do.
• tell clients what they must not do.
• delay the client's decision-making process.

Answer: A

Diff: 2 Type: MC Page Ref: 4

Topic: Ch. 1 - The Role of the Lawyer

Skill: Recall

Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

8) Which of the following statements best describes solicitor-client privilege?

• The lawyer makes the legal decisions for the client.
• The lawyer is the only expert a client should consult.
• The lawyer must follow the client's instructions, even if they are illegal in nature.
• It is the duty of the lawyer to keep the information provided by the client confidential.
• The lawyer makes decisions regarding civil matters; the client makes decisions regarding

criminal matters.

Answer: D

Diff: 2 Type: MC Page Ref: 4

Topic: Ch. 1 - The Role of the Lawyer

Skill: Recall

Objective: Chapter 1: 2. Examine the role of the lawyer.

Bloom's Taxonomy: Knowledge

9) Sophisticated clients

• do not require the services of a lawyer.
• understand the importance of the solicitor-client relationship.
• distrust and deride lawyers.
• is someone with formal legal training.
• should represent themselves, rather than paying for legal services.

Answer: B

Diff: 2 Type: MC Page Ref: 4

Topic: Ch. 1 - When to Hire a Lawyer

Skill: Recall

Objective: Chapter 1: 1. Explain the meaning of "sophisticated client."

Bloom's Taxonomy: Knowledge

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