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Humber College Exam 4: Invigilated Theory Sample Questions:

1. Finish the sentence: The Employment Standards Act:

A) Specifies the terms of a business partnership agreement.
B) Regulates matters involving ownership of a business.
C) Protects the rights of workers of a business that is being sold.
D) Regulates trade names.

2. A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

A) A clause to check the condition of the trucks and vans
B) A clause to test the quality of the underground water source
C) A clause to obtain the necessary mortgage amount
D) A clause to ensure the truck parking spaces and turning radius are sufficient

3. A buyer client has hired a commercial appraiser to assess the market value of a fully tenanted commercial complex. The complex is mixed-use with retail on the main level and offices on the second and third levels. It is an older property with unique characteristics. Which of the following is NOT a correct statement regarding how the appraiser will determine the value of the property?

A) The appraiser will assess how convenient it is to access the building and whether customers would be required to walk a significant distance within the mixed-use commercial complex to find a retailer.
B) The appraiser will research similar buildings, as commercial properties are usually bought and sold on a dollar value per square foot.
C) The appraiser will assess the layout of the complex, as it will directly establish the utility of the mixed- use building.
D) The appraiser will research the layout of other types of commercial buildings to establish the utility of the mixed-use building.

4. In a commercial transaction, which of the following is NOT a responsibility of the lawyer?

A) Remedy of title issues
B) Review of the Agreement of Purchase and Sale
C) Review of financial statements
D) Exchange of legal documents

5. Different clauses can be used for each transaction to address the unique needs of buyers and sellers. Which of the following may be used in an agreement of purchase and sale to buy a commercial property?

A) A clause for the buyer to have the right to negotiate for specialized restaurant equipment that is not included in the property purchase price
B) A clause for the seller to disclose all information verbally without providing supporting documents to verify that information; documents to be provided on closing
C) A clause to confirm the remuneration payable to the brokerages will be as stated in the seller representation agreement
D) A clause for the buyer to review the leases only after all conditions have been waived and accepted

Solutions:

Question # 1 Answer: C

Question # 2 Answer: D

Question # 3 Answer: D

Question # 4 Answer: C

Question # 5 Answer: A