CGA-CANADA BUSINESS LAW [LW1] EXAMINATION March 2012 EXAMINERS COMMENTS

General Comments
Overall performance on this examination was unsatisfactory. Student performance was excellent on questions from Module 6 (Special contracts: Sales). Student performance was satisfactory on questions from Modules 2 (Tort law and professional liability), 4 (Formation of the contractual relationship 2), 5 (Interpreting the contract and interpreting the contractual relationship), 7 (Special contracts: Insurance and employment), and 9 (Business organizations: Agency and partnership). Student performance was unsatisfactory on questions from Modules 1 (Canadian legal system), 3 (Formation of the contractual relationship 1), and 10 (Business organizations: Corporations). Student performance was poor on questions from Module 8 (Debtor and creditor relations).

Specific Comments
Module 1 The Canadian legal system Student performance on this module was unsatisfactory. Students had difficulty with questions relating to the Canadian Charter of Rights and Freedoms, using the court system, and the constitution of Canada and its purpose. Module 2 Tort law and professional liability Student performance on this module was satisfactory. Students had difficulty with questions relating to factors affecting an award of damages for negligence and the distinction between general negligence and professional negligence. Module 3 Formation of the contractual relationship 1 Student performance on this module was unsatisfactory. Students had difficulty with questions relating to the requirements for a valid offer and the definition of consideration. Module 4 Formation of the contractual relationship 2 Student performance on this module was satisfactory. Students had difficulty with the intention to create legal relations and the requirement of writing. Module 5 Interpreting the contract and interpreting the contractual relationship Student performance on this module was satisfactory. Students had difficulty with the doctrine of frustration, mistake, and remedies for breach of contract. Module 6 Special contracts: Sales Student performance on this module was excellent. Students had difficulty with a question relating to the rules for transfer of risk and title under the Sale of Goods Act. Module 7 Special contracts: Insurance and employment Student performance on this module was satisfactory. Students had difficulty with questions relating to remedies available to terminated employees, insurable interests, and the requirement of good faith in insurance contracts.

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LW1M12 CGA-Canada, 2012

Module 8 Debtor and creditor relations Student performance on this module was poor. Students had difficulty with question relating to the purpose of the Personal Property Security Acts and the requirements for gaining priority to goods subject to the Personal Property Security Acts, and the administration and settlement of a bankrupts affairs. Module 9 Business organizations: Agency and partnership Student performance on this module was satisfactory. Students had difficulty with questions relating to the formation of a partnership and the responsibilities of retiring partners. Module 10 Business organizations: Corporations Student performance on this module was unsatisfactory. Students had difficulty with the nature of the corporation, the contractual capacities of a corporation (including the indoor management rule), and the rights of shareholders and their remedies.

LW1M12

CGA-Canada, 2012