Business Law : Aaron, 13, lives with his parents Which

Subject: Law    / Business Law


1. Aaron, 13, lives with his parents. Which one of the following statements is false?

a. If Aaron is an agent for his parents, then the parents must pay.

b. The parents are responsible for contracts of necessaries that Aaron entered into.

c. Aaron is responsible for beneficial contracts.

d. If the contract was beneficial for Aaron, then only the parents would have to pay.

e. If one or both parents guaranteed a debt contracted by Aaron, the parent(s) making the guarantee would have to pay if Aaron did not, even if the debt were for non-necessaries.

10 points


1. Gus went drinking with friends and became quite drunk. He did not show his intoxication, and he appeared to be perfectly sober. He wandered into a tattoo parlour and had the “weekend special” applied. The tattoo artist could smell alcohol on Gus’ breath. When Gus regained sobriety the next day he realized his mistake but decided that he would only seek reimbursement of the tattoo parlour fee once his girlfriend gave her opinion when she returned from a business trip in one week’s time. Gus will be able to repudiate his contract with the tattoo parlour.

a. True

b. False

10 points


1. Crown Corporations are often established by legislation. If Mabel did not read the relevant legislation, what is her best course of action to enforce a contract with a Crown Corporation?

a. If Mabel failed to review the legislation, then ignorance of the law will prevent her any remedy.

b. Mabel can check to see if the Crown Corporation passed a directors’ resolution amending the legislation.

c. Sue the federal government because of the federal government’s constitutional paramountcy power.

d. Review the legislation to see if the Crown Corporation is bound by the type of contract that Mabel has.

e. Mabel could sue the shareholder(s) of the Crown Corporation.

10 points


1. Pat and Mike are having marital difficulties. Pat’s parents pay her $10 000 to help Pat get a divorce. They seek an agreement that if Pat and Mike do not divorce, then the $10 000 would have to be repaid. If Pat and Mike later reconcile, Pat’s agreement with her parents is:

a. Unenforceable

b. Voidable

c. Void

d. Legal

e. Valid

10 points


1. Bob worked as a consultant for the military. As a result, he learned valuable knowledge about missile defence systems. If Bob works for another client, which one of the following is the best or most correct statement?

a. Bob is free to work for any person because he is a consultant.

b. Information gained in his military contract may be injurious to the state if released.

c. Military secrets may have been given to Bob.

d. Bob owes a duty of confidentiality to persons who have entrusted him with sensitive information.

e. All of the above

10 points


1. Serge, a major league hockey player, wishes to give $1 million to a charity over 10 years. The charity helps disadvantaged children and Serge supports very strongly the idea of giving children help, since he was disadvantaged himself earlier in his life. He is encouraged to complete the gift when he learns that his mother-in-law landed a job with the charity. Now the money will stay, at least in part, “within the family.” Based on the preceding, choose the correct legal position of the parties.

a. Serge made a gratuitous promise, did not intend to make a binding contract and can therefore change his mind, but still has to give the money.

b. If the satisfaction that Serge feels in supporting this charity is consideration and the court finds that the promise satisfies the criterion of intention, then Serge has to follow through.

c. If the charity relied on the promised gift and arranged its finances accordingly, then Serge must pay.

d. If the job given to Serge’s mother-in-law was consideration for the promise, then Serge must pay.

e. B, C & D

10 points


1. The following are considered evidence in writing in most jurisdictions where writing is required.

a. A cash register receipt

b. A pre-printed form contract that is not signed by anyone

c. A contract that is sealed and signed

d. An executed land transfer

e. A, C & D

10 points


1. Which one of the following would be part performance?

a. Payment to a landowner in settlement of a nuisance claim

b. A payment to a house builder

c. A home buyer attending a realtor’s open house

d. Payment for installation of a satellite dish on a house roof

e. Payment of a deposit for the purchase of a house in Vancouver

10 points


1. If the Statute of Frauds is in force, choose the correct answer where writing is required.

a. A contract to rent an house on a month to month lease

b. None of the above need be in writing.

c. An agreement to provide lawn and garden services for a condo project

d. A contract for a plumber to install a new sewer line in a new land development

e. An agreement to add an additional owner to a piece of land

10 points


1. Sally’s husband Harry is a kleptomaniac. Harry steals minor articles from merchants compulsively. When Harry was caught for the fifth time at his local supermarket by store security, the store manager promised Sally that he would not prosecute Harry, provided Sally pay the store $100 for additional security costs caused by Harry’s illegal activities and an additional $50 every time Harry is caught by store security. What are Sally’s rights?

a. The store should have sued Harry for the tort of nuisance and therefore Sally is not bound.

b. Sally has to forfeit the $100 for Harry’s past transgressions and has to pay the $50 for each future event.

c. Neither party can enforce the agreement.

d. If Harry is caught again Sally does not have to pay $50 and she can get her initial $100 back.

e. If Harry is caught by the same store security officer, Sally will have to pay the $50.