Bus Law Final

Front 1

Define misrepresentation

Back 1

One party makes a false statement about fact that induced the buyer into a contract

Front 2

What are the 3 types of misrepresentations?

Back 2

Innocent, negligence and fraudulent

Front 3

Define innocent and what repercussions take place because of it

Back 3

One party believes what they are saying is true but it's not.

Repercussions: equitable remedies of recession meaning both parties are brought back to the pre-contact state.

Contract must be valid otherwise

Front 4

Define negligence and it's Repercussions

Back 4

One party made a false statement about the facts that they should have known better.

Repercussions: equitable remedies of rescission meaning both parties are brought back to their pre contract state and plaintiff receives damages in the tort of negligence

Front 5

Define fraudulence and it's repercussions

Back 5

One party made a statement they knew was false or they were reckless with the truth

Repercussions: equitable remedies of rescission meaning both parties are brought back to their precontract state and plaintiff receives damages in the tort of deceit

Front 6

Are contracts made under undue influence voidable?

Back 6

Yes

Front 7

What is duress

Back 7

When one person enters into a contract under a threat of harm either physical or economic

Front 8

Define and give examples of undue influence

Back 8

Pressure from a trusted dominant person over a trusting weaker person to do something that isn't in their best interest

Examples: lawyer and client, trustee and beneficiary, doctor and patient, adult children and elderly parents

Front 9

What is an unconscionable agreement?

Back 9

When one party has an economic disadvantage or demised capacity and the other party knowingly gives unfair consideration because of it.

Front 10

Define a breach of contract and list the two terms

Back 10

When one party fails to fill one or more of their obligations in the contract

Terms: warranty and condition

Front 11

Define a warranty

Back 11

A breach of a minor term in a contract. Innocent parties can sue for damages but are still legally bound by the contract.

Front 12

Define condition

Back 12

A breach of a major term in the contract. Innocent parties can sue for damages and treat the contract as discharged (they can ignore it).

Front 13

What is the purpose of the Sales of Goods Act?

Back 13

Implies missing terms into a contract for the sale of goods

Front 14

When does the sale of goods act apply?

Back 14

When there is a sale of a good (not service), there is money consideration (promise of payment) and the intention to transfer title

Front 15

What are the 2 ways to opt out of the sale of goods act?

Back 15

1. A term in a contract that outright states the intention to opt out

2. A term in a contract directly contradicts the sales of good act

Front 16

What is the difference between a title and possession?

Back 16

Title is physical ownership of the good and title owner bares risk of loss

Possession is having control of the good

Front 17

List and define the implied conditions and warranties of the sale of goods act

Back 17

Sellers title - seller must have title of good being sold (implied condition)

Encumbrance- must be free of any impediments that effect ownership (implied warranty)

Sell by description- good must match description (implied condition)

Sale by sample- bulk sample must be free of any hidden defects (implied condition)

Merchantable quality- goods must be of merchantable quality (implied condition)

Fitness for purpose- must be of reasonable condition to do intended purpose (implied condition)

Front 18

What is the purpose of the Canada consumer product safety act?

Back 18

To protect consumers in the context of non commercial transactions

Front 19

What is the purpose of the British Columbia business practices and consumer act?

Back 19

To prevent deceptive acts or practices

Front 20

What is the purpose of the competition act?

Back 20

To maintain and encourage competition in Canada in order to promote the economy

Front 21

What are the 3 consumer protection acts?

Back 21

Canada consumer product safety act,

British Columbia's business practices and consumer protection act

Competition act

Front 22

What is the purpose of consumer protection and can you opt out?

Back 22

To protect consumers from the inequality between consumers and businesses

No you cannot opt out

Front 23

Define and explain the set up for a sole proprietor

Back 23

One person who owns and operates a business with no legal separation between owner and business

Register a business license at municipal level and adhere to all local laws

Front 24

Explain the relationship between owner and business in sole proprietor

Back 24

Owner has unlimited personal liability if business is sued. Owner must enter contacts, buy property and file taxes on behalf of business

Front 25

Define partnerships and name the 3 types

Back 25

Two or more people that carry on business in common with a view to make profits

General partnership

Limited partnership

Limited liability partnership

Front 26

Explain the creation of a general partnership

Back 26

Two or more people set out to run an unincorporated business

A partnership agreement is made to set out the terms of the partnership

The business name must be registered under the partnership act if it's different from the owners names

Front 27

What is joint and several liability?

Back 27

A financial responsibility requiring all partners to contribute equally and makes all partners responsible for entire debt owed

Front 28

What is a limited partnership?

Back 28

One party manages the business and other parties contribute money, land or other resources. Silent partners cannot help run the business

Front 29

What are the legal characteristics of a limited partnership?

Back 29

Must be registered under the British Columbia partnership act. Certificate must include names and contact information for general and limited partners

Front 30

What is a limited liability partnership?

Back 30

A partnership of professionals such as doctors and lawyers who have the same liability as a general partnership but aren't liable for professional negligence of other partners

Front 31

What are the legal characteristics of a limited liability partnership?

Back 31

Must apply for registration and name must include the word limited liability partnership or LLP

Front 32

What is the difference between private and public corporations?

Back 32

Public corporations- shares are offered for sale to the public

Private corporation- shares are held by one person or small group and not sold to public

Front 33

List all the positions in a corporation

Back 33

Incorporator

Shareholder

Director

Officer

Front 34

Explain the incorporator role

Back 34

A person/ corporation that files documents and assembles initial capital to make a corporation come into existence

Front 35

What are the rights of a shareholder?

Back 35

to vote in elections for director

To share in profits of corporations through dividends

To sell some or all of their shares

To share in assets of corporation if it wound up

To be protected from offensive acts of directors and other shareholders

To vote on fundamental changes

To view corporations records

Front 36

Explain the duties of a director

Back 36

Makes major decisions regarding affairs of the corporation. Must put the needs of the corporation above personal financial interest. Voted in by shareholders

Front 37

What is the role of an officer?

Back 37

Responsible for day to day operations under the director supervision. Senior management such as the CEO who put the needs of the corporation above personal financial interest.

Front 38

What database must be searched if a corporation decides to name itself outside the assigned number it's given

Back 38

NUANS

Front 39

What must a corporation's name include?

Back 39

The words corporation, incorporated, or limited

Front 40

What is debt financing?

Back 40

Borrowing money from a lender. Must be paid back with interest

Front 41

What is an unsecured loan?

Back 41

Loan given without collateral only a promise to repay

Front 42

A lender may provide an unsecured loan if:

Back 42

There's an ongoing relationship between parties

A high degree of trust exists

The amount loaned is small

The repayment time is short

There's a high expectation that the loan will be repaid

Front 43

What is a secure loan?

Back 43

A loan where the borrower provides collateral the lender can sell if the loan is defaulted

Front 44

What is the most common type of loan?

Back 44

Secured loan

Front 45

What are the 2 types of shares

Back 45

Common shares

Preferred shares

Front 46

What are common shares?

Back 46

Shares that return on investment through dividends

Front 47

Other than dividends how can someone make money from a common share?

Back 47

They can sell their share for more than they originally paid for

Front 48

Who decides how and when dividends are paid out?

Back 48

The board of directors

Front 49

What is a preferred share?

Back 49

A share that must be paid out before common shares

Front 50

What share is More expensive common or preferred?

Back 50

Preferred

Front 51

What is a corporate bond?

Back 51

A written promise that a company will pay principal and interest to the buyer of the bond at specific intervals

Front 52

What are the 2 acts of bankruptcy?

Back 52

Inability to pay debts when they come due

Commiting fraudulent or evasive acts to avoid paying debt

Front 53

What is voluntary bankruptcy?

Back 53

A company assigns it's assets for the benefit of the creditors and files an assessment of bankruptcy with the official receivor

Front 54

What is involuntary bankruptcy?

Back 54

A creditor who is owed more than $1000 and can prove an act of bankruptcy in the last 6 months can petition for the owing company to go bankrupt

Front 55

If a petition succeeds for involuntarily bankruptcy what happens next?

Back 55

The receiving order appointments a trustee to sell assets

Front 56

What are the characteristics of an employee?

Back 56

Employer controls employees

Employer dictates employees hours

Employer dictates how and when work is done

Employer assumes risk of loss

Employer withholds tax, EI, CPP and other deductions

Employer provides tools

Employee is hired on an ongoing basis

Front 57

What are the characteristics of an independent contractor?

Back 57

Hired to complete a task for a set fee

Owns their tools

Controls their own hours and time of work

Controls how the work is done

Party providing work dose not have to withhold tax, EI, CPP and other deductions

Independent contractor pays their own expenses

Front 58

What is the purpose of the employment standards act?

Back 58

Set out the minimum terms and conditions of work required for employees in provincially regulated businesses

Front 59

What is the purpose of the human rights code?

Back 59

To prevent discrimination in the workplace and provide accommodations when needed

Front 60

What is a reasonable amount of notice?

Back 60

The period of time an employee should be given between notification of dismissal and end of employment

Front 61

What is payment in lieu of notice?

Back 61

Financial compensation provided instead of reasonable notice

Front 62

What is just cause?

Back 62

Justification for dismissal without notice based on the employees conduct

Front 63

What is constructive dismissal?

Back 63

A fundamental breach by the employer of the employment contract that allows the employee to consider themselves dismissed and sue the employer for wrongful termination

Front 64

Define property

Back 64

Anything subject to ownership?

Front 65

What is public and private property?

Back 65

Public property - things owned by the government for the benefit of society

Private property - things owned by people, businesses or organizations

Front 66

Explain real property

Back 66

Immovable property and land including buildings and attached structures

Front 67

What is personal property?

Back 67

Tangible and intangible property that is movable

Front 68

What is intellectual property,?

Back 68

Things created by the mind such as logos and inventions

Front 69

What is bailment?

Back 69

Personal property that you have the title of but give up temporary control

Front 70

What is the difference between title and possession?

Back 70

Title means ownership and possession means you control it

Front 71

Who owns title and who owns possession in a bailor, bailee relationship?

Back 71

Bailor owns title and bailee has possession

Front 72

What is gratuitous bailment?

Back 72

You lend someone something for free

Front 73

What is the standard of care when gratuitous bailment benefits Bailee?

Back 73

High standards it must be returned in the same condition it was received

Front 74

What is the standard of care when gratuitous bailment benefits Bailor?

Back 74

Low standard unless negligence

Front 75

What is constructive/ involuntary bailment and what are the bailor and baliees responsibility

Back 75

When you accidentally leave property behind.

Bailor must pick up item

Bailee must try to identify bailor and keep item reasonably safe

Front 76

What is a fee simple and the bundle it includes?

Back 76

Total ownership highest interest someone can have on land

Bundle: modify land, sell, gift, lease, occupy and exclude

Front 77

What is tenacity in common

Back 77

A type of fee simple that means partners can dispose of their interests though their wills. Business partners

Front 78

What is joint tenancy?

Back 78

A type of fee simple meaning if one partner dies the other receives 100% of the land. Married couples

Front 79

What is a life estate and what are the bundle of rights?

Back 79

A life tenant can live on a fee simple land for the rest of their life

Bund of rights: occupy and exclude

Front 80

Define leasehold estate and bundle of rights

Back 80

Rental property

Bundle of rights: modify within rules, sometimes subleasing, occupy and exclude

Front 81

What is easement and the bundle of rights?

Back 81

Allows someone to cross onto someone else's property to reach their own property

Bundle of rights: pass over land

Front 82

What is a copyright?

Back 82

The exclusive right to reproduce, sell or perform an original artists work

Front 83

How long do copyrights last?

Back 83

An authors life plus 50 years and then it becomes public domain

Corporation 50 years

Front 84

What do copyrights cover?

Back 84

The expression of ideas not the ideas themselves

Front 85

What is a patent?

Back 85

Exclusive right to manufacture a product

Front 86

How long does a patent last?

Back 86

20 years then it becomes public domain

Front 87

What does a patent cover?

Back 87

A useful invention and original or improvement on existing product

Front 88

What is a trademark?

Back 88

Words, symbol pictures associated with a business

Front 89

How long does a trademark last?

Back 89

Forever

Front 90

How often can a trademark be registered and dose it have to be registered?

Back 90

15 years and no

Front 91

What is an industrial design?

Back 91

Protection for a unique shape of something that already exists

Front 92

How long do industrial design last and do they need to be registered?

Back 92

10 years and yes