Business Law Interview Questions & Answers

Question 1. What Is Business Law?

Answer :

Commercial law, also known as business law or corporate law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales. It is often considered to be a branch of civil law and deals with issues of both private law and public law.

Question 2. What Is A Legal Contract In Business?

Answer :

A contract is an agreement between two or more parties to perform a service, provide a product or commit to an act, and is enforceable by law. There are several types of contracts, and each have specific terms and conditions. Business 103: Introductory Business Law / Business Courses.

Question 3. What Can You Do With A Degree In Business Law?

Answer :

Essential Information. A business lawyer is an attorney who specializes in working on business law or transaction issues. These lawyers need Juris Doctor (JD) degrees and may have additional postgraduate degrees in business law. Like all lawyers, business lawyers must pass their state's bar exam to become licensed.

Question 4. What Is The Meaning Of Mercantile Law?

Answer :

mercantile law. n. that broad area of the law (also called commercial law), statutes, cases and customs which deal with trade, sales, buying, selling, transportation, contracts and all forms of business transactions.

Question 5. State What Is Not True Regarding The Doctrine Of Stare Decisions?

Answer :

 A decision in one province is persuasive in other provinces but not binding, whereas a decision of the Supreme Court is binding in all jurisdictions.

Question 6. Which Type Of Statute Prohibits An Activity That Used To Be Permitted Or Permits An Activity That Used To Be Prohibited?

Answer :

Passive legislation either prohibits an activity that was formerly permitted or permits an activity that was formerly prohibited. Active legislation gives government the right to carry on various programs, which in turn gives rise to the need for subordinate legislation created by administrative agencies to exercise their regulatory powers. A bill is a proposed law that has not yet received Royal Assent.

Question 7. Which Is Not A Fundamental Freedom Under The Charter Of Rights And Freedoms?

Answer :

Mobility rights are protected rights under the Charter, but they are not fundamental freedoms as are freedom of religion, thought, and association.

Question 8. In Ontario, The Small Claims Court Hears:

Answer :

In Ontario, the Small Claims court hears civil claims up to $25,000. Less-serious criminal offences are heard by the Ontario Court of Justice (Ontario’s trial court). The Divisional Court of the Superior Court of Justice hears appeals of civil cases up to $50,000. Taxation disputes are heard by the Tax Court of Canada.

Question 9. What Is Requirement For A Class-action Suit Refers To One Or A Few People Having A Workable Plan For Pleading The Case On Behalf Of A Whole Class Of People?

Answer :

The representative plaintiff is the person or persons who are judged to have a workable plan for pleading the case on behalf of a whole class of people.

Question 10. State What Is Not True About Evidence At A Civil Litigation Trial?

Answer :

Ordinary witnesses may testify only about facts they know first-hand, while experts may provide opinions based on the evidence. The courts do not normally listen to hearsay evidence (information a witness heard from another person). 

Question 11. What Is The Remedy In Civil Litigation Is Designed To Make Amends To The Victim For Loss Suffered By The Victim?

Answer :

Compensatory damages are monetary damages designed to make amends to the victim for the loss suffered. 

Question 12. What Is The Remedy In Civil Litigation Is Designed To Make The Guilty Party Fulfill His Or Her Obligation Or Promise To The Injured Party?

Answer :

• Specific performance would require the defendant to fulfill his or her obligation. 
• Compensatory damages make amends to the victim for the loss suffered.

Question 13. What Type Of Alternative Dispute Resolution Method Is Sometimes Required By Law In Ontario;the Third Party Does Not Render A Decision But Only Clarifies Issues And Suggests Possible Solutions:

Answer :

Mediation uses a neutral third party who is acceptable to both sides to help the parties reach a settlement.

Question 14. What Is Not True About A Tort As Distinguished From A Crime?

Answer :

The usual remedy in tort is compensatory damages, whereas punishment is the usual remedy for a crime. For a crime, the relevant law is public law, under which the accused owes a duty of care to society and is prosecuted by the government.

Question 15. Using Fault Or Blameworthy Conduct To Assess Liability Under Tort Law:

Answer :

Circumstances can often make it hard to establish who was at fault, and it would be unfair to leave a victim uncompensated just because of this. Thus, while fault is one consideration in assigning liability, it is not the only basis. Fault is a less onerous standard than strict liability. Basing liability on fault would make people more careful since they would have to pay the consequences for being careless, but that would be a desirable result.

Question 16. In A Strict Liability Tort, It Is Necessary To Prove That:

Answer :

In a strict liability tort, the plaintiff need only prove that the specific act occurred (along with the fact that that act caused a loss). 

Question 17. This Intentional Tort Involves Reasonable Belief That Threat Of Offensive Bodily Contact Is Imminent:

Answer :

The formal distinction between assault and battery is that the former is the reasonable belief that threat offensive bodily contact is imminent while the latter is actual offensive bodily contact.

Question 18. The Defence Of Qualified Privilege In A Defamation Case Means That:

Answer :

Qualified privilege occurs when the statement was made in the course of duty with the belief that it was true, and was communicated only to those who needed to know. A is the defence of justification, B the defence of absolute privilege, and D the defence of fair comment.

Question 19. What Needs To Be Proved By A Customer Who Accuses A Business Of The Tort Of Deceit?

Answer :

To prove deceit, it is necessary to prove the defendant knew the statement was false or acted recklessly and without regard to the truth, that the defendant intended to mislead the plaintiff, and that the plaintiff suffered a loss as a result of reliance on that statement.

Question 20. In An Action For Negligence, There Must Be A Close And Direct Connection Between The Parties. What Is The Refers To?

Answer :

Proximity is a close and direct connection between the parties. The neighbour principle is the general test of whether a duty of care was owed. 

Question 21. You Insist That A Supplier Send A Rush Shipment Of Parts, Thereby Leaving The Supplier Out-of Stock And Unable To Send Parts To The Plaintiff With Whom It Had A Prior Agreement Of Sale. You Are:

Answer :

The behaviour constitutes interference with contractual relations since you persuaded a third party (the supplier) to break its contract with the plaintiff. Intimidation involves threat to  commit an unlawful act.

Question 22. Under Tort Law, A Reasonable Person Is Defined As:

Answer :

A reasonable person is someone of average intelligence who will prudently exercise reasonable care considering all of the circumstances. Thus, the standard considers the situation. The law does not require a person to take all possible precautions, only those that are affordable.

Question 23. Under Tort Law, A Loss May Be Held To Be Too Remote If:

Answer :

A loss may be too remote if it was not reasonably foreseeable that the action could cause the loss or if it does not pass the “but-for” causality test: but for the act, a loss would not have arisen. As well, too much time between the action and the injury might lead to a finding that the loss was too remote from the tortious act.

Question 24. Under The Thin Skull Theory, Plaintiffs Who Are Unusually Vulnerable Due To Physical Or Psychological Infirmities Would:

Answer :

Under the thin skull theory, plaintiffs who are unusually vulnerable are still entitled to damages for all their losses. However, if a normal person would not have suffered any damages, the plaintiff would not be entitled to damages.

Question 25. This Complete Defence To A Tort Action Asserts That The Plaintiff Freely Agreed To Accept The Risk Of Injury Or Loss:

Answer :

Voluntary assumption of risk—when the plaintiff freely agrees to assume the risk of injury or loss—is a complete defence that would lead to the defendant not being held liable. 

Question 26. In Terms Of Product Liability, There Is A Duty Of Care On A Canadian Manufacturer To Give Consumers Warning:

Answer :

Under Canadian product liability law, there is a duty of care to give consumers warning when, even though a product is not defective, dangers may arise when it is used. The duty to give proper warning is a continuing one so that notice is required whenever a company becomes aware of potential dangers in a product’s use.

Question 27. A Professional’s Duty Of Care May Arise From:

Answer :

A professional may owe a duty of care by contract, because of a fiduciary relationship, and/or under tort law.

Question 28. Professionals Are Liable For Negligent Misrepresentation When They Make An Incorrect Statement:

Answer :

Negligent misrepresentation is the making of an incorrect statement made without due care for its accuracy. The plaintiff must prove he or she relied on the statement. However, the professional’s duty of care has been limited by case law to a class of persons with whom the professional has a special relationship (i.e., who used the information as part of a contemplated transaction).

Question 29. What Are Dividends?

Answer :

Dividends are declared by directors at their discretion—they are not owed and shareholders may have no remedy if they are not made. They are repayments of capital, not interest. They are made out of after-tax profits and thus are not tax-deductible.

Question 30. Corporation A Was Issued A Loan By Bank B. Corporation A Is Now Claiming That Its Chief Financial Officer Did Not Have The Authority To Obtain The Loan And Therefore Is Refusing To Honour The Terms Of This Bank Loan. Based On The Indoor Management Rule:

Answer :

In the absence of notice of irregularity or suspicious circumstances, everything in the operation of a corporation that appears to be properly done (such as a CFO borrowing money) may be relied on by an outsider and will bind the company—unless a contracting third party knows about a particular restriction, in which case such restriction would be binding.