Employment Law Obligations and Rights Quiz
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Questions and Answers

What is one of the obligations of an employer under employment law?

  • Allowing flexible hours
  • Offering bonuses for performance
  • Ensuring safe working conditions (correct)
  • Providing a retirement plan

Which of the following is a fiduciary obligation that may be required of an employee?

  • To act in the best interests of the employer (correct)
  • To maintain a casual work attitude
  • To compete against the employer in the same field
  • To disclose their salary to co-workers

What constitutes just cause for immediate dismissal?

  • Refusing an overtime request
  • Job performance issues such as incompetence (correct)
  • A minor disagreement with a co-worker
  • Taking a sick leave

When an employment contract is terminated, what is a form of compensation that may be provided in lieu of notice?

<p>Paying the employee for the notice period (C)</p> Signup and view all the answers

What factors do courts consider when determining reasonable notice for termination of employment?

<p>The type of job and age of employee (B)</p> Signup and view all the answers

Which of the following is NOT considered a valid reason for just cause dismissal?

<p>Expressing personal opinions (A)</p> Signup and view all the answers

Which condition must be met for restrictive covenants to be enforceable?

<p>The time period must be reasonable (A)</p> Signup and view all the answers

Which of the following actions is considered employee wrongdoing under just cause dismissal?

<p>Harassing another employee (C)</p> Signup and view all the answers

What happens to settlements transferring assets for nominal or no consideration within one year of bankruptcy?

<p>They are void if the debtor was insolvent or intended to defraud. (D)</p> Signup and view all the answers

What is one of the restrictions placed on a bankrupt individual?

<p>Must disclose bankruptcy status when borrowing over $1000. (B)</p> Signup and view all the answers

What is the effect of an absolute discharge for an individual in bankruptcy?

<p>It ends most debts but not all obligations. (A)</p> Signup and view all the answers

What can a corporation in bankruptcy possibly do to avoid bankruptcy?

<p>File a Division I Proposal under BIA. (C)</p> Signup and view all the answers

Which of the following debts survive an individual's absolute discharge in bankruptcy?

<p>Student loans. (D)</p> Signup and view all the answers

Which statement best describes the purpose of bankruptcy legislation?

<p>To ensure creditors realize as much as possible and rehabilitate the debtor. (B)</p> Signup and view all the answers

Which option is not a type of alternative to bankruptcy for debtors?

<p>Debt consolidation loans over $250,000. (C)</p> Signup and view all the answers

In the context of corporate bankruptcy, what separates receivership from bankruptcy?

<p>Receivership is triggered by the terms of a security agreement with a creditor. (D)</p> Signup and view all the answers

What type of injunction is designed to stop infringement before a trial occurs?

<p>Interlocutory injunction (A)</p> Signup and view all the answers

Which of the following is not considered patentable?

<p>An abstract theory (A)</p> Signup and view all the answers

What is the primary purpose of statutory damages in copyright law?

<p>To approximate financial losses without detailed proof (D)</p> Signup and view all the answers

Which body is responsible for handling disputes and arbitrating tariffs under the Copyright Act?

<p>Copyright Board (A)</p> Signup and view all the answers

What is the requirement for an invention to qualify for a patent?

<p>It must be useful and original (A)</p> Signup and view all the answers

Which one of the following is an example of a remedy when dealing with copyright infringement?

<p>Accounting (A)</p> Signup and view all the answers

Which of these is a characteristic of a valid patent?

<p>It must extend to the general idea behind an invention (D)</p> Signup and view all the answers

Which type of injunction prohibits the production or sale of a product permanently?

<p>Permanent injunction (C)</p> Signup and view all the answers

What happens to a shareholder's limited liability when they give personal guarantees for loans?

<p>Limited liability is lost. (C)</p> Signup and view all the answers

What is one tax advantage gained through incorporation?

<p>Shareholders can defer taxes by keeping funds in the corporation. (B)</p> Signup and view all the answers

Which of the following statements about the position of minority shareholders is true?

<p>Minority shareholders have a weak position in corporate governance. (C)</p> Signup and view all the answers

Which document is NOT part of the registration process for a company?

<p>Bylaws of incorporation (A)</p> Signup and view all the answers

What is a disadvantage of incorporating a business?

<p>Major changes require amendments to incorporation documents. (C)</p> Signup and view all the answers

In the context of corporate management, who typically appoints managers?

<p>Elected directors. (D)</p> Signup and view all the answers

What is an implication of a corporation continuing to exist after a shareholder's death?

<p>The corporation is unaffected by changes in ownership. (C)</p> Signup and view all the answers

Under what condition can a court 'lift the corporate veil'?

<p>When there are personal guarantees for loans by officers. (A)</p> Signup and view all the answers

What is one key duty of corporate directors towards the corporation?

<p>To exercise the care, diligence, and skill of a reasonably prudent person (A)</p> Signup and view all the answers

Which of the following are directors allowed to consider when acting in the best interests of the corporation?

<p>Long-term interests and environmental factors (C)</p> Signup and view all the answers

What can shareholders do in response to a director's misconduct?

<p>Bring a derivative action against the directors (C)</p> Signup and view all the answers

Which of the following liabilities may a director face personally?

<p>Unpaid taxes and environmental damages (B)</p> Signup and view all the answers

What standard of care do senior management and officers owe to the corporation?

<p>The same as that of the directors (A)</p> Signup and view all the answers

What is a promoter's primary responsibility in corporate governance?

<p>To assist with public share offerings (B)</p> Signup and view all the answers

When might directors NOT be able to use 'insider knowledge'?

<p>When making corporate decisions that affect the market (C)</p> Signup and view all the answers

What kind of duty do corporate directors owe primarily to the corporation?

<p>A fiduciary duty (A)</p> Signup and view all the answers

What is the condition under which an employer is vicariously liable for an employee's actions?

<p>The conduct is closely and materially connected to risks introduced by the employer. (D)</p> Signup and view all the answers

Which protection can an employer utilize to mitigate liability for employee actions?

<p>Liability insurance. (D)</p> Signup and view all the answers

What responsibility do employers have concerning the use of computers by employees?

<p>To be responsible for intentional or negligent violations of various rights. (C)</p> Signup and view all the answers

What must employers do regarding employee online activities?

<p>Advise employees that their online activities are being monitored. (C)</p> Signup and view all the answers

What do statutes designed to protect employees establish?

<p>Minimum standards for wages and working conditions. (C)</p> Signup and view all the answers

How do notice periods in employment contracts compare to statutory requirements?

<p>They can be less than common law but must meet statutory minimums. (B)</p> Signup and view all the answers

What can happen if an agreement waives protections available under employment legislation?

<p>It is declared void. (C)</p> Signup and view all the answers

What type of leaves have expanded protections in specific Canadian provinces?

<p>Compassionate care and personal leaves. (A)</p> Signup and view all the answers

What is typically required of a person claiming insanity in a transaction?

<p>They have the burden to prove their lack of understanding. (B)</p> Signup and view all the answers

Which of the following accurately describes the capacity of enemy aliens regarding contracts?

<p>All contracts are treated as void if detrimental to Canada during wartime. (C)</p> Signup and view all the answers

How are corporate contracting powers typically treated under the law?

<p>They can be limited based on jurisdictional regulations. (A)</p> Signup and view all the answers

Which statement about foreign governments and contracts is correct?

<p>They are subject to the same rules as private individuals for commercial activities. (C)</p> Signup and view all the answers

What limitation exists for Indigenous Persons regarding property under the Indian Act?

<p>Their capacity to acquire and seize property on reserves is restricted. (B)</p> Signup and view all the answers

What is one of the elements that must be proven for a negligence claim?

<p>Causation (D)</p> Signup and view all the answers

Which of the following best describes a situation that might lead to vicarious liability?

<p>An employee makes an accidental mistake while performing their duties (A)</p> Signup and view all the answers

Which circumstance could give rise to professional liability?

<p>A licensed professional gives incorrect advice (C)</p> Signup and view all the answers

What critical factor assesses whether a duty of care is owed in negligence cases?

<p>The relationship proximity of the parties (A)</p> Signup and view all the answers

What does a breach of duty in terms of negligence imply?

<p>The standard of care was not met (B)</p> Signup and view all the answers

Which type of liability often involves holding an employer responsible for the actions of an employee?

<p>Vicarious liability (C)</p> Signup and view all the answers

Under what condition might courts evaluate the reasonableness of the standard of care?

<p>Considering the actions of similar individuals in practice (B)</p> Signup and view all the answers

Which tort creates a legal basis for compensation for damages due to online harassment?

<p>Intentional tort (B)</p> Signup and view all the answers

What is the primary limitation of the Canadian Charter of Rights and Freedoms as outlined in Section 1?

<p>It allows interference with rights if justifiable. (B)</p> Signup and view all the answers

Which of the following is NOT a fundamental freedom guaranteed by the Charter?

<p>Freedom of economic activity (D)</p> Signup and view all the answers

What does Section 6 of the Charter guarantee regarding mobility rights?

<p>Citizens can live anywhere in Canada and work in any region. (B)</p> Signup and view all the answers

Which section of the Charter specifically addresses legal rights?

<p>Section 7 (A)</p> Signup and view all the answers

What must legislators do when passing acts that infringe on rights under Section 33 of the Charter?

<p>Review the legislation every five years. (C)</p> Signup and view all the answers

What is the role of judges in relation to the Charter of Rights and Freedoms?

<p>They interpret and enforce the rights enshrined in the Charter. (B)</p> Signup and view all the answers

Which of the following rights is specifically protected under Equality Rights in Section 15 of the Charter?

<p>The right to non-discrimination under the law (C)</p> Signup and view all the answers

Which official languages are recognized as having equal status in federal government activities?

<p>French and English (A)</p> Signup and view all the answers

What is the purpose of the affirmative action programs mentioned in the context of Equality Rights?

<p>To improve conditions for disadvantaged groups. (A)</p> Signup and view all the answers

Which element must a plaintiff prove in a case of injurious falsehood?

<p>The statement resulted in material loss. (C)</p> Signup and view all the answers

Which term describes the unlawful act of harming someone's business interests through intimidation?

<p>Intimidation (A)</p> Signup and view all the answers

What does 'passing off' involve in the context of tort law?

<p>Misrepresenting oneself to benefit from another's goodwill (D)</p> Signup and view all the answers

Which of the following best describes 'qualified privilege'?

<p>A conditional protection that depends on the context (A)</p> Signup and view all the answers

What is the primary legal concern regarding invasion of privacy in modern contexts?

<p>Statutory protection and the use of personal information (A)</p> Signup and view all the answers

Which of the following constitutes unlawful interference with economic relations?

<p>Breach of contract through bribery (B)</p> Signup and view all the answers

What is a recognized tort that addresses the deliberate spoiling of evidence?

<p>Spoliation (A)</p> Signup and view all the answers

What must be established for an action to be considered as 'intentional infliction of mental suffering'?

<p>Extreme and outrageous conduct intended to cause distress (D)</p> Signup and view all the answers

In terms of privacy statutes, which law regulates government collection of private information?

<p>Federal Privacy Act (C)</p> Signup and view all the answers

What aspect of online torts creates significant concerns regarding legal jurisdiction?

<p>Where the contract was created and applicable laws (A)</p> Signup and view all the answers

Which scenario does NOT allow for the revocation of an offer?

<p>Option agreement (A), Tendered bids (B)</p> Signup and view all the answers

Which statement accurately describes a key aspect of good faith in contract performance?

<p>A party should regard the legitimate interests of the other party. (D)</p> Signup and view all the answers

What constitutes a counteroffer during the acceptance process?

<p>Adding new terms to the acceptance. (B)</p> Signup and view all the answers

What is the implication of the Postbox Rule for mailed acceptances?

<p>Acceptance is effective when it is mailed. (C)</p> Signup and view all the answers

How is silence typically interpreted in contract acceptance?

<p>Silence can indicate acceptance in ongoing business relationships. (D)</p> Signup and view all the answers

When is acceptance of a unilateral contract considered complete?

<p>Once the offeree begins to fulfill the requested performance. (C)</p> Signup and view all the answers

What is NOT a condition that would nullify an offer?

<p>The offeree requests clarification about the offer. (B)</p> Signup and view all the answers

Which of the following is true regarding the communication of acceptance?

<p>Acceptance can also be communicated through actions. (A)</p> Signup and view all the answers

Which of the following best describes a standard form contract?

<p>A predetermined offer with terms set by one party. (A)</p> Signup and view all the answers

What distinguishes a tender from other offers?

<p>It forms a subsidiary contract once submitted. (A)</p> Signup and view all the answers

What is a valid reason for waiving the requirement of writing in a contract dealing with land?

<p>The contract has been partially performed (C)</p> Signup and view all the answers

What must be established for negligent misrepresentation to be proven?

<p>Duty of care, breach, causation, and damages (D)</p> Signup and view all the answers

Which type of misrepresentation leads to rescission OR damages for breach of contract if it is a term within the agreement?

<p>Misrepresentation as a contractual term (D)</p> Signup and view all the answers

What is the consequence if a party to a contract lacks the legal capacity to enter it?

<p>The contract is voidable and may be enforced under certain conditions (B)</p> Signup and view all the answers

In cases of innocent misrepresentation, what is the primary remedy available?

<p>Rescission of the contract (D)</p> Signup and view all the answers

What must a false statement of fact achieve to qualify as misrepresentation?

<p>It must induce someone into a contract (C)</p> Signup and view all the answers

Which of the following is NOT a required element for establishing negligent misrepresentation?

<p>Intent to deceive (C)</p> Signup and view all the answers

What is one of the main exceptions to the enforcement of contracts requiring written form?

<p>Contracts that have a record of partial performance (A)</p> Signup and view all the answers

In fraudulent misrepresentation, what must the false statement accomplish?

<p>Be made knowingly or recklessly (D)</p> Signup and view all the answers

What effect does silence have in the context of misrepresentation?

<p>Silence can be misrepresentation if there is a duty to disclose (D)</p> Signup and view all the answers

What factor must be present for a contract that is void due to illegality?

<p>The parties must have intended to perform illegally (B)</p> Signup and view all the answers

Which situation typically does NOT lead to a contract being voidable?

<p>Both parties are fully aware of the contract terms (D)</p> Signup and view all the answers

Which factor indicates that parties intended to create a binding contract?

<p>Written formalities (B)</p> Signup and view all the answers

What can render a contractual term unable to be enforced despite being written?

<p>The term is deemed illegal (C)</p> Signup and view all the answers

Flashcards

Limited Liability in Corporations

Shareholders are not personally responsible for corporate debts or obligations.

Losing Limited Liability

Limited liability can be lost if directors/officers give personal guarantees or courts intervene.

Tax Advantages of Incorporation

Corporations may offer tax benefits to shareholders allowing them to defer taxes through the corporation.

Corporate Succession

A corporation continues to exist even if a shareholder dies, enabling business continuity.

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Share Transferability

Corporate shares can usually be freely traded.

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Shareholder Duties

Shareholders generally have no legal duty to the company in most situations

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Company Registration Process

Incorporating a company involves filing a memorandum of association and articles of association with the government.

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Memorandum of Association

Legal document outlining the company's name, share capital, and purpose.

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Employer Obligations

Employers are legally required to pay wages, provide safe working conditions, and treat employees fairly.

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Employee Obligations

Employees are expected to be competent, honest, punctual, and prioritize the employer's best interests.

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Restrictive Covenants

Agreements limiting an employee's ability to work in a specific industry or location after leaving a job. These must be reasonable in terms of time and area.

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Termination of Employment

Employment can be ended by giving reasonable notice, paying in lieu of notice, or immediately with just cause.

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Reasonable Notice

Minimum notice period determined by law, considering factors like length of service, job type, and employee's age.

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Just Cause Dismissal

Immediate termination without notice due to employee misconduct or failure to perform job duties.

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Just Cause Examples

Examples include absenteeism, disobedience, incompetence, harassment, drunkenness, and immoral conduct.

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Employment Contracts

Can be verbal or written, with some implied terms. Must include all elements of a valid contract.

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Director's Duty of Care

Directors must act as a reasonably prudent person would, upholding the company's interests.

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Director's Fiduciary Duty

Directors have a responsibility to act in the best interests of the corporation, not shareholders.

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Director Considerations

Directors can consider various factors when serving corporation's best interest: environment, long-term growth, various stakeholder needs.

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Derivative Action

A legal action shareholders can initiate on behalf of the company against directors to address corporate wrong.

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Officer's Duties

Officers, like directors, have a duty of care, competence and fiduciary responsibility to the corporation.

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Officer's Role

Officers handle day-to-day corporate management, adhering to high standards of conduct and competence.

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Promoter's Responsibility

Promoters assisting the corporation with a public offering preparing prospectus under Securities Commission's approval hold a fiduciary duty to the corporation.

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Director Liability

Directors can face personal legal accountability for actions, like unpaid wages, environmental damage, or breaching laws.

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Vicarious Liability

An employer can be held liable for the wrongful acts of their employees, even if they didn't directly cause the harm, if those acts occurred within the scope of employment.

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Vicarious Liability Connection

Vicarious liability only applies when the employee's actions are closely and materially connected to the risks created or introduced by the employer.

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Employer Protection

Employers can protect themselves from vicarious liability through liability insurance and outsourcing.

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Employee Computer Misuse

Employers are responsible for misuse of computers by employees, even if the employer didn't directly cause the misuse.

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Employee Online Monitoring

Employers can generally monitor employees' online activities at work but need to inform employees of this.

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Privacy Laws in Employment

Privacy laws like PIPEDA require employers to obtain consent before collecting, using, or disclosing personal employee information.

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Employment Standards

Laws setting minimum standards for wages, hours of work, vacation time, and other employment terms to protect workers.

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Minimum Notice Period

Employment standards laws dictate the minimum notice period for termination, but longer 'reasonable notice' may be required.

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Voidable Settlements

Transfers of assets for minimal value within a year of bankruptcy that were made while insolvent or with intent to defraud creditors are prohibited.

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Preferential Payments

Payments made to specific creditors shortly before bankruptcy, favoring them over other creditors, may be deemed voidable.

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Bankrupt's Disclosure Obligations

Bankrupts must disclose all asset transactions within the past year and any settlements from the last five years.

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Bankrupt Restrictions

Bankrupts face limitations, including disclosing their status when borrowing over $1000, being prohibited from serving as directors, and restrictions on certain professions.

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Individual Discharge (Conditional/Unconditional)

An individual bankrupt can receive a conditional or unconditional discharge. Conditional discharge may involve paying surplus income to the estate.

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Debts that Survive Discharge

Some debts remain even after discharge, including student loans, apprentice loans, fines, alimony, and certain damages.

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Corporate Discharge

Corporations cannot be discharged from bankruptcy. They may use proposals or restructuring to potentially avoid bankruptcy.

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Alternatives to Bankruptcy

Individuals and companies may use negotiations, proposals under the Bankruptcy and Insolvency Act (BIA), or specific provincial programs to avoid bankruptcy.

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Interlocutory Injunction

A court order that stops infringement of a copyright before a trial is held.

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Anton Piller Order

A court order that allows the seizure of materials from a manufacturer or distributor suspected of infringing copyright.

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Permanent Injunction

A court order that prohibits the production, sale, or distribution of a copyrighted product permanently.

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Damages (Copyright Infringement)

Monetary compensation awarded to the copyright holder for losses suffered due to infringement.

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Statutory Damages

Predetermined amounts of money awarded for copyright infringement, regardless of actual losses.

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Copyright Board

An organization established to handle disputes involving copyright, set tariffs, and review fees.

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Patent

Exclusive right granted to an inventor to produce, sell, and profit from a specific invention.

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Patentable Invention

An invention must be new, original, unique, useful, and clearly described to qualify for a patent.

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Negligence

Careless conduct that unintentionally causes harm to another person or their property.

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Duty of Care

A legal obligation to act reasonably and avoid causing harm to others.

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Breach of Duty

Failing to meet the standard of care required in a specific situation.

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Causation

The link between the defendant's actions and the plaintiff's injuries or damages.

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Damages

The actual harm or loss suffered by the plaintiff as a result of the defendant's negligence.

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Tort of Online Harassment

A legal wrong that recognizes the harm caused by online harassment and bullying.

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Online Harm

Damage or injury caused to someone through online harassment, bullying, or other malicious behavior.

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Charter of Rights and Freedoms

A constitutional guarantee of basic rights and freedoms added to the Canadian Constitution in 1982, protecting individuals from government interference.

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Section 1: Reasonable Limits

Allows the government to restrict rights and freedoms if it's 'justifiable in a free and democratic society'.

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Section 33: Notwithstanding Clause

Allows Parliament or provincial legislatures to override certain Charter rights, but this power must be reviewed every five years.

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Fundamental Freedoms

Core rights protected by the Charter: freedom of conscience and religion, thought, belief, opinion and expression, and peaceful assembly and association.

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Democratic Rights

Include the right to vote and to qualify to be elected, ensuring participation in the political process.

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Mobility Rights

Guarantee Canadians the freedom to travel, live, and work anywhere in Canada, with some exceptions.

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Legal Rights

Protect individuals from unreasonable interference by the government, ensuring fair treatment and justice.

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Equality Rights

Prohibit discrimination in the application of the law and promote equal treatment for all Canadians.

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Language Rights

Guarantee the equal status of French and English, ensuring access to government services and education in both languages.

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Should Rights be Absolute?

A question of debate about whether rights and freedoms should be absolute or subject to limitations.

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Injurious Falsehood

A false statement that harms a person's business, products, or property, resulting in financial loss.

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Elements of Injurious Falsehood

To prove injurious falsehood, the plaintiff must show: 1. A false statement disparaging the plaintiff's business. 2. Publication to a third party. 3. Malicious intent without justification. 4. Special damages (financial loss).

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Inducing Breach of Contract

Interfering with someone's contract by persuading them to break it, often for personal gain.

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Unlawful Interference with Economic Relations

Using illegal tactics to damage a business's economic interests by targeting a third party.

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Intimidation

Threatening violence or illegal actions to force someone to act in a way that harms them.

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Intentional Infliction of Mental Suffering

Deliberately causing emotional distress to another person, often linked to intimidation.

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Deceit (Fraudulent Misrepresentation)

Intentionally misleading someone with false information to cause them harm.

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Conspiracy to Injure

Two or more people working together using unlawful means to harm a business.

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Passing Off

Misrepresenting a product or service as being from a well-known company to benefit from their reputation.

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Misuse of Confidential Information

Improper disclosure of information that was meant to be kept secret.

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Insanity in Contracts

A party may be deemed insane if they lack understanding of the contract's nature, and the other party knew or should have known about it. This can allow for repudiation when sane.

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Intoxication in Contracts

Intoxication is treated similar to insanity, meaning a contract made while intoxicated can be repudiated if the other party knew or should have known of the intoxication.

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Limited Corporation Capacity

Corporations have contracting powers, but their specific capacity may be limited in some jurisdictions. Parties are bound by these limitations only if they have notice of them.

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Enemy Alien Contracts

Contracts with enemy aliens are void or suspended during wartime if they harm Canada. This is a security measure.

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Indigenous Capacity in Contracts

The capacity of First Nations individuals is restricted by the Indian Act. Their property rights and access to loans can be limited.

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Revocation of Offer

An offer can be withdrawn before acceptance if the revocation is communicated to the offeree.

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Counteroffer

A response to an offer that changes the original terms, effectively rejecting the original offer and creating a new one.

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Option Agreement

A separate contract that keeps an offer open for a specific time period, supported by additional consideration.

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Tenders

Sealed bids submitted for a project or contract cannot be revoked once submitted, creating a subsidiary contract.

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Unilateral Offer

An offer accepted through performing a specific action, which cannot be revoked once performance begins.

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Standard Form Contract

An offer with fixed terms presented to customers for acceptance, often containing one-sided terms favoring the business.

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Exemption Clauses

Terms in a contract that limit the liability of a business.

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Duty of Good Faith

A common law requirement to act honestly in fulfilling contractual obligations and consider the other party's legitimate interests.

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Acceptance

The offeree's unconditional intention to agree to the offer's terms.

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Communication of Acceptance

Acceptance must be communicated to the offeror, usually through words or actions.

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What is a contract?

A legally binding agreement between two or more parties that creates mutual obligations.

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What are essential elements of a contract?

For a contract to be valid, there must be agreement, consideration, capacity, legality, intention to be bound, and sometimes, a written form.

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What is 'part performance'?

A legal concept where a contract for land may be enforced even without writing if significant action towards the contract has been taken.

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What is 'misrepresentation'?

A false statement of fact that induces someone to enter a contract, potentially making the contract voidable.

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What are the types of misrepresentation?

Misrepresentation can be innocent (unintentional), negligent (careless), or fraudulent (intentional).

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What are remedies for misrepresentation?

Depending on the type, remedies can include rescission (undoing the contract) and various forms of damages.

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What is 'duress'?

Forcing someone to enter a contract through threats, violence, or coercion.

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What is 'undue influence'?

Taking advantage of someone's weakness or vulnerability to gain an unfair advantage in a contract.

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What is 'unconscionability'?

A contract that is so unfair and one-sided that it shocks the conscience of the court, rendering it unenforceable.

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What is 'mistake'?

A misunderstanding or error that may affect the validity of a contract.

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What are types of mistake?

Mistakes can be unilateral (one party is mistaken), mutual (both parties are mistaken), or common (parties share the same mistake).

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What is 'privity of contract'?

A principle that only parties to a contract can sue or be sued under it.

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What are exceptions to privity of contract?

Exceptions include third-party beneficiary contracts, assignment of contracts, and certain statutory exceptions.

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What is a 'statute of frauds'?

A law requiring certain types of contracts to be in writing to be legally enforceable.

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What are exceptions to the statute of frauds?

Certain situations like part performance of a land contract or promissory estoppel can allow enforcement of oral agreements.

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Study Notes

Business Law in Canada - Chapter 15: Priority of Creditors

  • This chapter discusses methods of securing debt, the Personal Property Security Act (PPSA), bankruptcy, and alternatives to bankruptcy.
  • Securing debt using personal property involves obtaining a claim on a debtor's property to ensure creditor payment. Mortgages secure claims on real property, while pledges allow creditors to take possession of personal property upon default.
  • The PPSA provides a uniform approach for securing debt using personal property in all Canadian jurisdictions. It allows various forms of personal property (licenses, shares, bonds) as security, and registration of claims protects secured creditors.
  • Bankruptcy procedures, governed by the Bankruptcy and Insolvency Act, prioritize creditors. Priority is typically determined by registration, with the first to register having precedence. Priority is also determined by the relevant legislation.
  • Alternatives to bankruptcy, such as mediation or proposals, may allow debtors to avoid formal bankruptcy proceedings. These alternatives often involve negotiations between debtors and creditors.

Business Law in Canada - Chapter 12: Employment

  • Not all workers are employees; the control test distinguishes employees from independent contractors. This test assesses the degree of control exercised over the worker.
  • Employment relationships require the employer to pay wages or salaries and provide safe working conditions. The employee's obligations include competence, honesty, loyalty, punctuality, acting in the employer's best interests, and fiduciary obligations.
  • Employment contracts can be either written or verbal, with implied terms. Restrictive covenants, prohibiting employees from working in a specific area or industry for a set period, must be reasonable in scope and duration or they will be void for public policy reasons.
  • Employment can be terminated by either party providing reasonable notice. Immediate termination may be justified for just cause; this includes wrongdoing, failure to perform the job, or gross misconduct. Legislation sets minimum standards for notice periods, and courts typically consider factors like the length of service, job type, employee age, qualifications, availability of similar employment, and potentially bad-faith conduct.
  • Human rights legislation prohibits discrimination in hiring. Most employers provide some form of health and safety insurance, including disability insurance.
  • Layoffs can occur but typically require a period of notice or severance pay. Constructive dismissal occurs if working conditions become intolerable to the point where an employee reasonably feels they must leave.

Business Law in Canada - Chapter 13: Intellectual Property

  • Intellectual property is a subcategory of intangible personal property protecting ideas, information, and creative work.
  • Copyright, patents, trademarks, industrial designs, and confidential information are types of protected intellectual property. Legislation governs these rights, providing different levels of protection for different types of works.
  • Copyright automatically arises when a work is created. Registration gives the creator more global protection and establishes the date of creation.
  • Copyright protection lasts for a set time, typically 50 years after an author's death, and varies for different types of works.
  • Patents protect inventions, requiring novelty, originality, distinctiveness, usefulness, and potentially patentability in the U.S. They provide an exclusive right to manufacture and license an invention for many years (typically 20 years).
  • Trademarks protect names, logos, and brands, preventing confusion between competing products. Registration is required for protection.
  • Regulations concerning industrial designs protect distinctive aesthetic elements of a product.
  • Confidential information is protected through contractual agreements or through common law obligations by duty of confidentiality.

Business Law in Canada - Chapter 14: Real and Personal Property and Protection of the Environment

  • Real property includes land and fixed improvements; personal property is moveable. This chapter covers various interests in land, such as ownership (fee simple), partial rights (easements, licenses), and leasehold.
  • Different types of property ownership exist in land. The law governs the transfer and registration of interests in land, including contracts, certificates of title, and electronic registration systems. Landlords and tenants have specific rights and responsibilities under legislation and common law.
  • Provincial statutes often modify common law rules in residential tenancy, addressing issues like standard form leases, quality of facilities, notice of termination, security deposits, and more. Regulations concerning acceptable lease terms are also addressed.
  • The law of bailment covers the temporary possession of goods, including the concepts of gratuitous bailment, involuntary bailment, common carriers (having a higher standard of liability against loss imposed by statute), and the duty of care owed by bailees.
  • The Canadian Environmental Protection Act and provincial legislation protect the environment. This legislation is in place to enforce regulations concerning environmentally unsafe actions by regulating the sale or use of dangerous materials.

Business Law in Canada - Chapter 16: Sales and Consumer Protection

  • The chapter examines contracts involving the sale of goods. The Sale of Goods Act implies terms into contracts, filling in gaps and protecting consumers. Specific conditions and implied warranties associated with the contract are included.
  • Title and risk transfer may occur immediately, or at a specific point in time (e.g., delivery).
  • Sellers and buyers have specific rights and obligations. A breach of these obligations can lead to legal remedies; consumers have protections from misleading practices.
  • Other federal acts, such as the Competition Act, protect consumers. Provincial statutes also govern consumer protection areas; with special consideration to specific industries or transactions (e.g., door-to-door sales, payday loans).
  • Negotiable instruments, such as cheques, bills of exchange, and promissory notes, have special regulatory considerations and status as legal tools in business.
  • Laws relating to online sales and international transactions also apply. Online sales involve unique considerations.

Business Law in Canada - Chapter 11: Corporations

  • This chapter addresses the formation, operation, and termination of corporations.
  • Corporations have separate legal entity status, meaning they can own assets, enter contracts, and incur liabilities independent of their shareholders. This limited liability is a key advantage of the corporate structure.
  • Corporations raise capital by selling shares. Shareholders may elect directors, although restrictions on shareholder involvement in daily operations exist.
  • Several types of obligations, especially related to taxes, apply to corporations through provincial and federal statutes.
  • Different types of corporations are also distinguished, such as closely held and broadly held corporations.

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Related Documents

Business Law in Canada - Chapter 11-15 PDF
Business Law in Canada Textbook PDF

Description

Test your knowledge on key aspects of employment law, including employer obligations, employee rights, and conditions for termination. This quiz covers fiduciary duties, just cause for dismissal, and the implications of bankruptcy on employment contracts. Perfect for law students or HR professionals.

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