Chapter 6
This type of Business has one owner who owns all business assets, is entitled to all profits and is responsible for all debts
This type of business is an artificial “person” created by the state which, like a person, has the power to carry on business, own property and provide services
If an employer may be vulnerable to suffering a loss as a consequence of confidential information which employees may reveal to the public or to subsequent employers, they may be required to sign a?
Confidentiality Clause or agreement
What does "CAVEAT EMPTOR" mean?
Let the buyer beware is a concept that assumes that, in business, when a purchaser has the opportunity to examine goods, he or she has the ability to discern whether they are fit for the intended purpose
A ______ is a special type of bill of exchange, payable on demand, in which the drawee is always a bank
A cheque
This is a person or business who acts on behalf of a principal, usually according to the terms of a contract for service
Trading based on information undisclosed to the general public about a security is called?
Trading based on information undisclosed to the general public about a security is called insider trading, and is illegal in Canada
To distinguish between an employee and independent contractor, a four part test asks
1. What degree of control is exercised over the employee by the employer
2. Whose tools does the employee use
3. Who has the best chance to profit
4. Who takes the risk of loss
A ________ is someone making a purchase for personal use and not for resale to a customer
A consumer
What Act governs the negotiability of cheques, bills of exchange and promissory notes ?
The Bills of Exchange Act
This type of Business is a relationship between two or more persons who carry on business together with a view to a profit
A Partnership
An attempt to acquire a controlling interest in the voting shares of a corporation is known as?
An attempt to acquire a controlling interest in the voting shares of a corporation is known as a take over bid
This test helps distinguish between employee and independent contractor by asking is the person an integral part of the employer’s business?
The organization test
________ __________ legislation has, among other goals, the goal of promoting fair competition among merchants
Consumer protection legislation
The buyer of goods on installment may spread the cost of expensive purchases over a?
period of time
This type of business is an utmost good faith relationship arising by contract when two or more businesses undertake a special project together
A Joint Venture
Who has the right to elect directors at the AGM and to approve important corporate changes, the right to a report on the business activity of the corporation and the right to view auditors’ financial statements ?
Shareholders
The responsibilities of an employer are higher for its employees in the following ways
1. Vicarious liability for actions of employees
2. Responsibility for payroll taxes and remittances
3. Necessity for supervision of employees
4. Notice requirement for most dismissals
A consumer’s ______ ______ will impact the willingness of lenders to offer credit
credit rating
This is an unconditional promise in writing, signed by the maker, to pay a certain sum of money to the person named or to the bearer at a fixed or determinable future time, or on demand
A promissory note
A partner is an agent of each of the other partners; a co-owner is not an agent of other co-owners
The last word in a corporate name must identify it as a corporation by the use of?
Limited, Incorporated, Corporation or their common abbreviations
Employees owe both specified contractual duties and implied employment duties to their employers
Ordinary employees must obey reasonable instructions, and perform at expected standards and skills
________ conditions under the Sale of Goods Act include essential terms such as the seller having title to the goods, the time for delivery, goods corresponding to the description or to the sample, and goods being free of any defects
Implied conditions
An _______ and ________ are, generally, the equivalents of an assignor and assignee of contractual rights
An endorser and endorsee