Question 1

Why has provincial and federal legislation removed the requirement of mens rea for regulatory offences?

Accepted Answer

This burden is extremely difficult to me

Question 2

Use the fact situation in Q1 to answer the related question that follows.
Based on the Enron situation,if some form of liability should flow down to the accountants of such corporations,what about the lawyers for such corporations,who not only have a duty to advise against many of the acts committed by such corporations,but who also act for such corporations on transactions that deplete corporate assets when they cannot help but know that the corporation is insolvent or close to insolvency?

Accepted Answer

It is difficult to believe that lawyers

Question 3

In addition to the licensing and prospectus provisions,the legislation has introduced further controls on the securities industry.Give a couple of examples.

Accepted Answer

Examples might include: (1)the securitie

Question 4

Offences under the Criminal Code of Canada are both criminal and regulatory in nature.

Accepted Answer

A) True 
 B)False

Question 5

Use the fact situation in Q14 to answer the related question that follows. Assume that when Robert advises the board of directors and CEO of the problems,they instruct him to forget about the matter and try to find a way to cover the whole thing up.In this case,

Accepted Answer

A) the board of directors has committed an offence under the Act. 
B) the CEO has committed an offence under the Act. 
C) the due diligence defence will not help the board or the CEO. 
D) the company has committed an offence under the Act. 
E) all of the above 
A) the board of directors has committed an offence under the Act. 
B) the CEO has committed an offence under the Act. 
C) the due diligence defence will not help the board or the CEO. 
D) the company has committed an offence under the Act. 
E) all of the above

Question 6

A corporation that is not paying its creditors in a timely fashion is probably insolvent.

Accepted Answer

A) True 
 B)False

Question 7

Use this fact situation to answer the related questions that follow. Edward is employed by a large furniture manufacturing company to purchase supplies and regularly deals with the company's largest supplier.Yesterday,Edward entered into a contract with that supplier to sell it some of his company's furniture.
In this situation,

Accepted Answer

A) there is a contract between Edward,the supplier,and Edward's company. 
B) there is a contract between Edward and the supplier only. 
C) there is no contract between Edward,the supplier,and Edward's company. 
D) there is no contract between Edward's company and the supplier. 
E) there is a contract between Edward's company and the supplier. 
A) there is a contract between Edward,the supplier,and Edward's company. 
B) there is a contract between Edward and the supplier only. 
C) there is no contract between Edward,the supplier,and Edward's company. 
D) there is no contract between Edward's company and the supplier. 
E) there is a contract between Edward's company and the supplier.

Question 8

Secondary market liability occurs when someone who owns shares in a company sells them in circumstances where information released about the state of the company is false and not yet corrected.

Accepted Answer

A) True 
 B)False

Question 9

Use the fact situation in Q12 to answer the related question that follows. Assume that John went to a local newspaper and told it about the results of the tests on the company's new line of cars and the newspaper published the story.Also assume that the company finds out that John was the one who gave the story to the newspaper and summarily fires John.In this case the company has committed the offence of

Accepted Answer

A) criminal negligence causing bodily harm. 
B) whistle-blowing retaliation. 
C) distributing false statements. 
D) criminal fraud. 
E) all of the above 
A) criminal negligence causing bodily harm. 
B) whistle-blowing retaliation. 
C) distributing false statements. 
D) criminal fraud. 
E) all of the above

Question 10

The Criminal Code of Canada contains some offences that are applicable to corporate conduct.With respect to whistle-blower retaliation,it is an offence to

Accepted Answer

A) threaten a whistle-blower or potential whistle-blower. 
B) discipline a whistle-blower or potential whistle-blower. 
C) demote a whistle-blower or potential whistle-blower. 
D) request a statement from a whistle-blower or potential whistle-blower. 
E) fire a whistle-blower or potential whistle-blower. 
A) threaten a whistle-blower or potential whistle-blower. 
B) discipline a whistle-blower or potential whistle-blower. 
C) demote a whistle-blower or potential whistle-blower. 
D) request a statement from a whistle-blower or potential whistle-blower. 
E) fire a whistle-blower or potential whistle-blower.

Question 11

To escape personal liability,when a party enters into a pre-incorporation contract,it is enough for that party to simply state on the written contract that he or she is entering into the contract on behalf of a company to be incorporated.

Accepted Answer

A) True 
 B)False

Question 12

When it is unlawful to declare dividends because of a deficiency in the capital fund and yet the shareholders want a quick pay-out,then

Accepted Answer

A) Revenue Canada can issue "not withstanding" tax credits. 
B) the corporation needs to earn enough profits to restore the deficiency. 
C) shareholders can lend money to the corporation and receive interest payments in return. 
D) the corporation can re-capitalize at a lower amount. 
E) wages can be paid to officers instead of dividends. 
A) Revenue Canada can issue "not withstanding" tax credits. 
B) the corporation needs to earn enough profits to restore the deficiency. 
C) shareholders can lend money to the corporation and receive interest payments in return. 
D) the corporation can re-capitalize at a lower amount. 
E) wages can be paid to officers instead of dividends.

Question 13

There are a number of statutes that contain protections for the benefit of employees.Which of the following pieces of legislation does not contain any provisions with respect to protection of employees?

Accepted Answer

A) occupational health and safety legislation 
B) human rights legislation 
C) employment standards legislation 
D) sale of goods legislation 
E) workplace safety legislation 
A) occupational health and safety legislation 
B) human rights legislation 
C) employment standards legislation 
D) sale of goods legislation 
E) workplace safety legislation

Question 14

Under the regulatory offence of "strict liability," the standard that must be met for obtaining a conviction is

Accepted Answer

A) the same as under the regulatory offence of "absolute liability." 
B) to let the accused try to avoid liability by proving that she or he was completely unaware of the regulation. 
C) to satisfy the court that the breach is of the regulation rather than a statute. 
D) where the doing of the prohibited act raises a presumption that an offence has been committed-unless the accused can prove she or he took all reasonable care. 
E) to prove the existence of mens rea (a guilty mind). 
A) the same as under the regulatory offence of "absolute liability." 
B) to let the accused try to avoid liability by proving that she or he was completely unaware of the regulation. 
C) to satisfy the court that the breach is of the regulation rather than a statute. 
D) where the doing of the prohibited act raises a presumption that an offence has been committed-unless the accused can prove she or he took all reasonable care. 
E) to prove the existence of mens rea (a guilty mind).

Question 15

Use the fact situation in Q5 to answer the related question that follows. Now assume that the supplier delivered supplies to Edward's company totalling $50 000.00 and that the company is overdue in its payment for the supplies.In this situation,the supplier can sue

Accepted Answer

A) Edward only. 
B) the company only. 
C) Edward and the company. 
D) Edward,the company,and its president. 
E) all of the above 
A) Edward only. 
B) the company only. 
C) Edward and the company. 
D) Edward,the company,and its president. 
E) all of the above

Question 16

At present,and largely due to the Enron debacle and the events of the world-wide recession of 2008,there is a trend toward a greater consideration of ethics in corporate business.Will this continue?

Accepted Answer

Public awareness is heightened by such e

Question 17

In trying to protect corporate creditors,what is the solvency test?

Accepted Answer

The solvency test requires that the dire

Question 18

Mandy had her securities licence suspended by the securities commission,yet she continues to buy and sell stock as an investment dealer.Mandy certainly

Accepted Answer

A) has committed a criminal offence. 
B) will have all her stock trades cancelled and/or reversed. 
C) will be barred for life from working in the securities industry in Canada. 
D) must go up before the discipline committee of the securities commission. 
E) will face private discipline by the investment house where she is an agent. 
A) has committed a criminal offence. 
B) will have all her stock trades cancelled and/or reversed. 
C) will be barred for life from working in the securities industry in Canada. 
D) must go up before the discipline committee of the securities commission. 
E) will face private discipline by the investment house where she is an agent.

Question 19

Marian,Phillis,and Lauren are three directors at A Mart Supplies Ltd.The corporation has $150 000 in assets,including capital and $110 000 in debt.
(1)If the directors passed a resolution redeeming all the preferred shares of the corporation for $50 000,what remedy would unpaid creditors of the corporation have and against whom?
(2)If Phillis and Lauren voted in favour of a directors' resolution approving the corporation's purchase of artwork from an unknown artist for $60 000 for resale purposes and it turned out that the work was unsaleable and was ultimately disposed of for less than $10 000,what remedy would unpaid creditors have and against whom?

Accepted Answer

(1)The directors have breached the solve

Exam 27: Corporate Governance: External Responsibilities

Why has provincial and federal legislation removed the requirement of mens rea for regulatory offences?

In addition to the licensing and prospectus provisions,the legislation has introduced further controls on the securities industry.Give a couple of examples.

Offences under the Criminal Code of Canada are both criminal and regulatory in nature.

Use the fact situation in Q14 to answer the related question that follows. Assume that when Robert advises the board of directors and CEO of the problems,they instruct him to forget about the matter and try to find a way to cover the whole thing up.In this case,

A corporation that is not paying its creditors in a timely fashion is probably insolvent.

Secondary market liability occurs when someone who owns shares in a company sells them in circumstances where information released about the state of the company is false and not yet corrected.

The Criminal Code of Canada contains some offences that are applicable to corporate conduct.With respect to whistle-blower retaliation,it is an offence to

To escape personal liability,when a party enters into a pre-incorporation contract,it is enough for that party to simply state on the written contract that he or she is entering into the contract on behalf of a company to be incorporated.

When it is unlawful to declare dividends because of a deficiency in the capital fund and yet the shareholders want a quick pay-out,then

There are a number of statutes that contain protections for the benefit of employees.Which of the following pieces of legislation does not contain any provisions with respect to protection of employees?

Under the regulatory offence of "strict liability," the standard that must be met for obtaining a conviction is

Use the fact situation in Q5 to answer the related question that follows. Now assume that the supplier delivered supplies to Edward's company totalling $50 000.00 and that the company is overdue in its payment for the supplies.In this situation,the supplier can sue

At present,and largely due to the Enron debacle and the events of the world-wide recession of 2008,there is a trend toward a greater consideration of ethics in corporate business.Will this continue?

In trying to protect corporate creditors,what is the solvency test?

Mandy had her securities licence suspended by the securities commission,yet she continues to buy and sell stock as an investment dealer.Mandy certainly

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

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