You Have Been Hired by a Law Reform Commission to Examine

question 24

Multiple Choice

You have been hired by a law reform commission to examine ways in which tort law can be used to affect behaviour. As part of that project, you have been asked to consider the level of mental culpability that the plaintiff is required to prove before the defendant can be held liable by a court. Which of the following statements is TRUE with respect to tort law as it currently exists in Canada?

• A) An intentional torts occurs only if the defendant intended to cause the plaintiff to suffer a loss.
• B) Strict liability allows people to engage in unusually hazardous activities, but also requires them to pay for any damage that occurs, even if they took every reasonable precaution.
• C) Because of the need to discourage tortious behaviour, negligence forms the smallest category of tort.
• D) The concept of strict liability always applies if a person intentionally causes another person to suffer an injury.
• E) An intentional torts occurs only if the defendant intended to breach an obligation.

Describe the recognition of gains and losses on fair value through profit or loss (FVTPL) securities and their impact on net income.

Understand the treatment of realized gains from the sale of FVTOCI investments.

Comprehend different valuation and reporting methods for investments and their implications on financial statement analysis.

Know the prospective and retrospective handling of changes in ownership interests causing a switch between equity method and fair value accounting.

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Definitions:

Labor-Intensive

Describing a process or industry that requires a large amount of labor to produce goods or services compared to the amount of capital used.

Labor-Abundant

Referring to a country or region that has a large supply of labor relative to capital.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, leading to more efficient trade possibilities.

Labor-Intensive

Characterized by a high proportion of labor relative to capital in the production process.