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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) Protects the rights of workers of a business that is being sold.
C) Regulates matters involving ownership of a business.
D) Regulates trade names.

2. A buyer client is interested in purchasing a 30,000 sq. ft. industrial building in an industrial park. The buyer's salesperson drafts an agreement of purchase and sale that includes an environmental site assessment condition that must be met at the buyer's own expense, and to the buyer's satisfaction. Which of the following is NOT an accurate statement regarding the environmental site assessment condition?

A) The environmental site assessment condition makes the offer conditional upon the buyer determining that no limitations or restrictions affecting the continued use of the property exist.
B) The environmental site assessment condition makes the offer conditional upon the buyer determining that the property is free from hazardous conditions or substances.
C) The environmental site assessment condition makes the offer conditional upon the seller delivering documents, records, and reports relating to environmental matters to the buyer upon request.
D) The environmental site assessment condition makes the offer conditional upon all possible court actions regarding environmental matters being thought of and reported.

3. A buyer client is discussing zoning bylaws of the municipality in relation to an industrial development site with their salesperson. Which of the following is NOT a correct statement with respect to zoning bylaws?

A) Municipal zoning bylaws overrule all other laws with respect to land uses and issuance ofbuilding permits in Ontario.
B) Zoning bylaws specify the permitted land uses throughout a municipality.
C) Municipalities have zoning bylaws that divide the city into different land uses or zones.
D) New commercial construction and redevelopment must comply with zoning bylaws.

4. A salesperson is assisting both the tenant and the landlord in a commercial property rentaltransaction. Which of the following statements about calculating the remuneration for this transaction is correct?

A) Salespersons are prohibited from indicating directly that remuneration is fixed by any association but can indicate it indirectly.
B) Remuneration can be calculated based on the difference between the listing price and the actual rental price.
C) The tenant may be required to pay the deficiency between the contracted amount in the tenant representation agreement and the amount actually paid by the landlord.
D) Remuneration can be an agreed amount or a percentage of the rental price, but not a combination of both.

5. A salesperson is drafting an offer for a vacant industrial site prime for development on behalf of their buyer client. The salesperson has included all proper conditions to protect the buyer, along with sufficient time periods to undertake the due diligence. Which of the following would be an appropriate conditional time period based on the corresponding condition?

A) A conditional time period for obtaining an approval for a zoning change that is seven business days in length.
B) A conditional time period for verifying the existence of services such as sewage, water, and electricity that is 30 days in length.
C) A conditional time period for a property inspection that is 30 business days in length.
D) A conditional time period for verifying the soil condition or type that is five days in length.

Solutions: