Business Law 1 Assignment - Midterm Exam, Fall Semester

This document presents a comprehensive solution to a Business Law assignment, addressing multiple-choice, true/false, and short answer questions. The assignment covers key aspects of business law, including partnership formation, fiduciary duties, sole proprietorships, corporate structures, employer obligations, employee expectations, and the roles of directors. The short answer section delves into the roles and characteristics of employees, independent contractors, and agents. It also explores the differences between sole proprietorships, partnerships, and corporations, and suggests the most suitable business structure for a clothing line. Furthermore, the assignment examines key themes in business law, such as company law, employment law, and labor law, and their relevance to business operations. A bonus question explores the applicability of the Charter of Rights and Freedoms to corporations. The solution incorporates relevant legal concepts and provides detailed explanations for each question.

Running head- BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

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MCQ
1. Which of the following can lead to the formation of a partnership (identify all that apply)?
A) An express contract
B) Shared rental profits from a jointly owned property
C) An implied contract
D) Carrying on business activities with an intent to profit
E) Employee bonuses or commissions
2. Which of the following individuals would owe fiduciary duties in a workplace context
(highlight all that apply)
A) A director of a corporation
B) An agent
C) A retired employee
D) A sole proprietor
E) A professional such as an accountant
3. Which one of the following is not true of sole proprietorships
A) They have to pay a fee to register a business name if it is not the name of the owner
B) They cannot hire employees
C) For tax purposes an owner can claim business losses against their income
D) The owner is fully financially responsible for the liabilities of the business
E) There is considerably less regulation
4. An employer has an obligation to provide which of the following to employees (select all
that apply)
A) Tools required to complete one’s tasks
B) Every component of the company uniform
C) Health care benefits for all workers
D) Training and instruction on how to perform the job safely
E) Overtime and holiday pay
5. Which one of the following is not true of Canadian corporations

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A) They can be either public or private corporations
B) By-laws set out the ordinary operating structures of companies, such as the responsibilities
of directors and officers
C) They have rights and obligations independent of their directors, officers and shareholders
D) They are typically created through articles of incorporation
E) All corporations can carry on business in any province
6. Which of the following are reasonable expectations of an employee, absent contractual
terms or company policy to the contrary
A) Perform the work agreed to
B) Obscure all tattoos and other body art if required by company policy
C) Display a reasonable level of competency at their job
D) To insist upon negotiating their working hours on a day to day basis
E) To carry out outside hours on-going job training without compensation
7. Which one of the following is not true of directors of a corporation
A) They owe a fiduciary obligation to the corporation
B) They can also be a shareholder in the corporation
C) They are entitled to payment for their services to the corporation in their role as director
D) They must meet the duty and standard of care expected of a reasonable professional
E) They are elected by the shareholders
True or False (4% each)
8. All contracts of employment must be in writing T / F
9. A profitable corporation must pay dividends annually T / F
10. Partners do not receive salaries T / F

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Short Answers:
11. Under the Canada Labor Code, the employees are considered as one of the true assets of
a company. With fulfilling their assigned targets, they are the one who contributes to the
functioning of a company or an organization. The main role of the Independent contractor is
basically to provide service as per specified but the company as per the contract but not as an
employee of the firm or the company. The main role of the agent revolves around is to help
the customers or the other person or any group to sale, purchase or other cases that involves
the economic transactions (Eidlin, 2018). The characteristics of the employees are they shall
be responsible for the completion of the work assigned to them and fulfil all the duties as per
the employment terms and conditions between the employer and employee. The benefits of
employees are they are eligible to get a specific pay every month as stated and also additional
benefits such as extra work pay, leaves, health benefits, pensions etc. The drawbacks of being
an employee include little control in the decision making of the business as they are only
eligible for the assigned work, less job security, pressure and competition. The characteristic
of the independent contractor are they work for the company, but they do not work as an
employee of the company. The benefits of an independent contractor are that they are free
from the direction or control of another person. The drawbacks include the company do not
safeguard the interest of the independent contractors and provide them with the medical and
other benefits like the employee (Pearce, 2018). The agents regulate third party transactions
with the business. The benefits are that they enable the business efficiently by conducting the
traction at various places and the drawbacks are the company do not safeguard them against
any hazard in the workplace, and they work more like the independent contractors.
12. The Sole proprietorship business is the kind of business that usually have a single owner
and are not registered under the corporation. These generally work as small business and

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owned by a single person who is responsible for the debts of the company. This type of
businesses is a legal entity, registered as a corporation, and is run by two or more person
jointly. In these types of business, all the partners of the business share the profits and the
losses. Incorporation is referred to as the legal procedure that is followed in order to establish
the company. It is generally a legal establishment that is separate from the owners. In the
given case, the business set up of Yolanda, Navdeep and Chris shall be better established as a
partnership firm. Partnership firm shall be the best for them as it will enable them to be
established as a legal entity that shall be registered, and the partners will be equally liable and
profitable for all the transactions. In this scenario, they want to start a new business on the
clothing line. So this is the best setup to start the company as a partnership firm. This shall
enable then to enjoy the profits equally as well as make them liable for the debts of the
payments as an equal share.
13. Three themes for the business law under the course are Company Law, Employment Law
and the labour law. These themes or topics are beneficial for the business person in order to
understand the business pattern and regulate the functioning of the business. Company law
helps in the understanding of incorporating the business or in order to understand the
legalities of conducting and regulating the business or incorporating the business. The
employment law helps in the understanding of regulate g the employees and understand the
employer-employee relationships of a business or a firm. The labour law helps in the
understanding of the appointments and the termination of an employee and other workers in a
company (Drummond & Halliwell, 2016). Not only that it also helps them in the
understanding of the various rights and the duties possessed by the workers and the
employers of a corporation. Hence these three topics or themes are important and beneficial
for a business person in order to understand the legal rights and the responsibilities about the

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establishment of the business firms as well as regulating the employees and the other workers
in the company with the understanding of their rights and the duties in an elaborate way.
Bonus Question
The Charter does not apply to the corporations. Under Section 32, it is only applicable
over the government and the parliament sectors and not to any private interactions or the
private business dwellings (Kitchen, 2016). It is applicable over the actions of the
government that may be the provincial, state or the municipal government. It generally
functions to protect the basic freedom rights and democratic rights in Canada.

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Reference
Drummond, D., & Halliwell, C. (2016). Labour Market Information: An Essential Part of
Canada's Skills Agenda. Business Council of Canada.
Eidlin, B. (2018). Labor and the Class Idea in the United States and Canada. Cambridge
University Press.
Kitchen, H. M. (2016). Is ‘Charter-City Status’a Solution for Financing City Services in
Canada—or Is That a Myth?. SPP Research Paper, (9-2).
Pearce, J. A. (2018). The Future of Independent Contractors and Their Status as Non-
Employees: Moving on from a Common Law Standard. Hastings Bus. LJ, 14, 1.