Class Actions Have Become More Common in Canada in Recent

question 45

Multiple Choice

Class actions have become more common in Canada in recent years.This increase in popularity can be explained, at least in part, by the fact that

• A)lawyers are able to aggregate many small claims of similar factual circumstances and undertake the aggregated class claims on an economical contingency fee basis as the single claims, because they are so small would be uneconomic to litigate separately on a contingency fee basis.
• B)the rules governing class actions are now contained in statutes in every province.
• C)lawyers conducting class actions must work on a contingency fee basis, with the result that their clients are liable for their expenses only if the case is won.
• D)the Supreme Court of Canada recently said that, in contrast to the past, class actions can now be certified even if success for one claimant does not necessarily mean that all of the other claimants will also enjoy success.
• E)liability in a class action can never be appealed.

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Definitions:

Variable Cost

Expenses that change in proportion to the volume of goods or services produced by a business.

Activity

An event that causes the consumption of overhead resources in an organization.

Cost Driver

A factor that causes a change in the cost of an activity, such as machine-hours or labor hours, used in determining pricing and profitability.

Flexible Budgets

Budgets that adjust or flex with changes in the volume or level of activity.