NPPE Topic 3: Law for professional practice Part 2

Question 1

What is a injunction

Answer 1

Judges can order injunctions to stop working in an area

Question 2

Different forms of buisinesses

Answer 2

Sole proprietorship, partnership, corporation

Question 3

Portions of a corporation business forms

Answer 3

Owners are shareholders and are represented by the directors, managed by officers, and the company can go independently bankrupt form the operators

Question 4

Partners (in businesses) have fiduciary duties to:

Answer 4

• act in the best interest of the partnership
• disclose conflicts of interest
• not take profits only for themselves
• not operate a competing business on the side

Question 5

What are the duties of the directors of a corporation:

Answer 5

1. Standard of care: act in the best interest of the corporation with care diligence and skill
2. Disclosure of conflict: disclose any conflict of interest

Question 6

What is “piercing the corporate veil”?

Answer 6

Courts will make the corporation be personally liable and criminally responsible if the corporation breaks the law or goes bankrupt due to fraud

Question 7

Contract terms can’t do the following:

Answer 7

• violate employment standards
• violate the competition act
• violate your charter rights
• violate perfectional acts

Question 8

What is dispute resolution?

Answer 8

If you have some disagreement when carrying out a contract, you can resolve it using dispute resolution

Question 9

Order of dispute resolution (less enforceable to more enforceable)

Answer 9

1. Negotiation (just talk it over)
2. Mediation (talk over with mediator that gives legal advice)
3. Project Neutral or Dispute resolution board (usually in contract terms for negotiating disputes - can be legally enforceable if taken to court)
4. Arbitration (private company holds a hearing and is legally enforceable - both parties must agree to doing this)
5. Litigation (one person sues and takes to court)

Question 10

Different forms of Intellectual Property in Canada?

Answer 10

Patent, Trade secret, industrial design, trademark, copyright

Question 11

What are the different types of bonds

Answer 11

Bid bond (tender deposit), performance bonds (contract bond), payment bond

Question 12

What is a bid bond (tender deposit)

Answer 12

Guarantee that you will sign the final contract if you’re selected as the winning bidder

Question 13

What is a performance bond (contract bond)

Answer 13

Guarantee by a bank or insurance company that you’ll perform your obligations in a contract

Question 14

What is a payment bond

Answer 14

guarantee by contractor that they will pay subcontractors and suppliers

Question 15

What are letters of credit

Answer 15

Generally, bonds are paid in the form of letters of credit - it is a guarantee from the bank that they will be paid directly by the bank if the person who the letter on behalf of will default on their obligations

Question 16

What is a lien?

Answer 16

A claim for partial ownership of land that you’ve improved if you weren’t paid for the work that you did (includes material costs and work like that done by trades persons and professionals).
To avoid liens, owners hold back some of the money they owe to the general contractors until the deadline for subcontractors to file liens has passed.

Question 17

Three rights according to the Occupational Health and Safety Act

Answer 17

1. Right to Know
2. Right to Participate
3. Right to refuse Unsafe Work

Question 18

If you’re injured on the job, you’re entitled to compensation through the _____________

Answer 18

Workers compensation board (WCB)

Question 19

Do you have an obligation to report any illegal actions of your employer (professionally)? Are you legally protected for reporting these to regulators?

Answer 19

Yes
Yes

Question 20

What is PIPEDA

Answer 20

Personal Information Protection and Electronics Document Act - a federal law on privacy that applies to federally/provincially regulated organizations that conduct business in Canada and governs how businesses handle personal information

Question 21

What is the Privacy Act?

Answer 21

Governs how governmental agencies cover personal data

Question 22

What is real property?

Answer 22

Land (that is registered)

Question 23

What is a fee-simple right to property?

Answer 23

Allows you to do most things to property associated with ownership (sell, lease, rent, build). Usually what it means to “own land/property”. Government owns right to all real property if they pay you a fair amount.

Question 24

What are chattels

Answer 24

Goods or personal property (non-land) such as car or watch

Question 25

What are securities?

Answer 25

Publicly traded stocks, bonds

Question 26

What does the Securities commission do?

Answer 26

Protects against insider trading and governs disclosing information relevant to a security trader’s decision to buy or sell