NCA Sample Practice Questions

Barrister

Civil Litigation

1. Hassan, a plaintiff, fails to set his action down for trial within the 5-year period required under Rule 48.14. As a result, the registrar administratively dismisses the action. Hassan states that he did not receive the Form 48D dismissal notice and brings a motion 3 months later under Rule 37.14 to set aside the dismissal and reinstate the action.

What must Hassan establish for the court to grant his motion?

A) That the claim has a reasonable prospect of success and that he was unaware of the dismissal.

B) That the registrar’s dismissal was made without proper notice and that reinstatement would not prejudice the defendant.

C) That the delay in setting the matter down for trial was adequately explained and that the defendant would not suffer substantial prejudice.

D) That the claim was not dismissed on its merits and that the failure to proceed was due to inadvertence.

2. Rachel is sued for negligence after a multi-vehicle accident. She defends the claim and issues a third party claim against Trevor, alleging he caused the initial collision. The main action is discontinued against Rachel two months later. Trevor brings a motion to dismiss the third party claim.

What is the correct result under the Rules?

A) The third party claim remains active because Rachel’s claim for contribution or indemnity stands independently.

B) Rachel is required to commence a new proceeding if she wishes to continue her indemnity claim against Trevor.

C) Trevor must deliver a statement of defence in the third party action to avoid being noted in default.

D) The third party claim is automatically deemed dismissed thirty days after the main action ends, unless a court orders otherwise.

3. In an affidavit of documents, a law firm lists documents obtained from a private investigator hired during litigation. The documents include unredacted surveillance logs and raw video footage containing unrelated individuals.

What should counsel do to comply with privacy obligations under PIPEDA?

A) Serve the full surveillance package without edits, as all surveillance is presumptively relevant and must be disclosed.

B) Disclose the materials with redactions made to remove unrelated personal data about third parties not involved.

C) Withhold the entire surveillance file on the basis that disclosure would breach privacy rights under PIPEDA.

D) Condition any disclosure of the video on the opposing party signing a formal confidentiality undertaking first.

4. A civil action begins under ordinary procedure. Paul attempts to schedule an examination for discovery before filing a discovery plan. The opposing party refuses, and Paul seeks court intervention.

What is the most likely legal outcome?

A) The court compels discovery, as oral discovery may precede a plan under Rule 31.

B) The court denies relief and costs because no discovery plan was in place.

C) The court imposes its own discovery plan before oral discovery can proceed.

D) The opposing party submits to discovery if pleadings are closed.

5. Marion represents a corporation in a construction dispute. She receives instructions from the VP of operations, who regularly gives directions in litigation. The opposing party challenges Marion’s authority to act, stating that there is no board resolution authorizing the litigation.

Which of the following is most accurate regarding Marion’s authority?

A) Counsel’s authority to act is contingent on formal approval from the board, regardless of whether the officer providing instructions has operational responsibility.

B) A corporate representative must obtain explicit authorization from the directors when initiating proceedings, particularly where no record of delegation is produced.

C) Instructions provided by an officer with apparent authority may be sufficient where the dispute arises within the scope of the corporation’s routine commercial activities.

D) Legal representation initiated without formal authorization may be challenged as irregular unless corporate approval procedures are clearly followed and documented.

Criminal Law

1. Amanda was convicted at trial of dangerous operation causing bodily harm under s. 320.13(2), following a single-vehicle collision in which the complainant was thrown from the passenger seat. The Crown’s case relied heavily on the complainant’s testimony that Amanda had been speeding and swerving erratically. After sentencing, Amanda learned that the complainant had privately told a third party that some of his trial testimony was exaggerated and that he had in fact encouraged Amanda to speed. Amanda’s appellate counsel obtains a sworn affidavit from this third party and a recording of the complainant admitting to exaggeration. She seeks to introduce this evidence as fresh evidence on appeal.

What must the Court of Appeal assess before admitting this new material?

A) Whether the evidence casts doubt on the complainant’s credibility and supports a more lenient sentence.

B) Whether the new information was known to trial counsel and whether it contradicts key findings of fact.

C) Whether it meets the four-part test requiring diligence, materiality, reliability, and potential impact on the verdict.

D) Whether the evidence would have been admissible at trial and whether it supports Amanda’s version of events.

2. Nadine, a 40-year-old woman with no criminal record, is convicted of arson under s. 434 for setting fire to a garbage dumpster behind her apartment building following a heated dispute with her landlord. The fire occurred at 2 a.m. and required intervention by the fire department, but no one was injured and the damage was contained. She immediately admitted responsibility, explaining that she was experiencing an unmanaged mental health crisis related to her bipolar disorder. Since her arrest, she has received regular psychiatric treatment and her condition is now stable. The Crown seeks an 18-month custodial sentence citing the inherent danger of fire and risk to public safety. Defence proposes a conditional sentence with strict mental health and curfew conditions.

What is the appropriate sentence?

A) Conditional sentence with community-based mental health supports and regular supervision.

B) Absolute discharge due to the psychiatric context and lack of harm or criminal history.

C) Suspended sentence with mandatory counselling and psychiatric follow-up conditions.

D) Custodial sentence with post-release probation addressing mental health and public safety.

3. The Crown seeks detention of Natasha, arguing that her release would undermine confidence in the administration of justice. Natasha has no criminal record and is charged with a serious offence involving a firearm. Her counsel challenges this ground as too vague and speculative.

How should the court approach the tertiary ground?

A) The court must consider this ground only where the offence relates to terrorism or involves a loss of life.

B) The court must assess whether legal professionals would view release as undermining the integrity of the justice system.

C) The court must evaluate whether the accused has a documented pattern of violent or high-risk conduct.

D) The court must balance the offence, strength of the Crown’s case, and broader circumstances.

4. Delia, a resident of Toronto, is accused of publishing defamatory libel online that was accessed by a complainant in Vancouver. Charges are laid in Ontario. Defence counsel argues the court lacks jurisdiction since the alleged harm occurred in another province.

Which of the following best describes how the Criminal Code addresses jurisdiction in cases involving online defamatory publication?

A) The Ontario court lacks jurisdiction to hear the case if the complainant did not suffer reputational harm within the province.

B) The charges must be transferred to the province where the defamatory content was viewed and experienced.

C) A prosecution for defamatory publication may proceed where the content was either created or accessed, depending on the circumstances.

D) Only a federal court may exercise jurisdiction where alleged defamatory content was transmitted across provincial borders.

5. Mei, a 27-year-old graduate student, is convicted of mischief under $5,000 for spray-painting political slogans on the front of a federal constituency office during a late-night protest over government environmental policy. She acted alone, caused no permanent damage, and cleaned the surface the next morning after seeing media coverage of the incident. She turned herself in the same day and admitted responsibility during her police interview. At sentencing, she presented letters of support from professors and her employer, and she expressed remorse while maintaining that her actions were misguided but rooted in political belief. The Crown seeks a suspended sentence with probation and community service. The defence seeks an absolute discharge, arguing that the offence was non-violent, symbolic, and that a conviction would irreparably harm Mei’s future career prospects.

What is the most appropriate sentence?

A) Custodial sentence based on the intentional targeting of government property and public messaging.

B) Conditional sentence with community supervision and restrictions on participation in political protests.

C) Absolute discharge in recognition of the minor harm, prompt remediation, and strong mitigating circumstances.

D) Suspended sentence with probation including limitations on expressive conduct and a public apology.

Family Law

1. Amara is the sole custodial parent of her 10-year-old daughter, with whom she has lived since separating from the child’s father, David. Their separation agreement does not mention name changes. Amara applies to the Registrar General to change her daughter’s last name to her own, without David’s knowledge. David receives notice of the application weeks later and wants to stop it. He contacts a lawyer, who confirms he cannot block the change through the Registrar General alone.

What is David’s most appropriate next step?

A) File a written objection with the Registrar General and request a discretionary review.

B) Apply for a publication delay while exploring possible legal remedies.

C) Commence a court application to prohibit the name change or vary the parenting terms.

D) Contact the Ministry of the Attorney General to request intervention based on parental rights.

2. Liam was recently awarded $30,000 in retroactive spousal support following a court decision in early 2023. The payments relate to support owing from 2019 to 2022. Liam receives the lump sum in March 2023 and is advised by his accountant that, unless action is taken, the entire amount will be included in his 2023 income. This would push him into a higher tax bracket and increase his total tax liability substantially.

What is Liam’s best option to reduce the tax consequences of receiving the lump sum in a single year?

A) Request that the CRA consider a reallocation of the amount across the prior tax years through a designated averaging form.

B) Submit documentation to the CRA seeking to categorize the payment as a family-related capital gain spread over time.

C) Apply to the CRA to have the amount offset against prior-year registered contribution room to mitigate the tax impact.

D) Request that the CRA allow the payment to be treated as a matrimonial entitlement for equalization rather than support.

3. Stephanie cohabited with Raj for three years. Their relationship ended in 2023. She now wishes to claim spousal support. Raj argues that because they were not married, Stephanie has no support entitlement.

Under what legal framework may Stephanie bring her claim?

A) Under the Divorce Act, as the federal legislation permits claims by unmarried cohabitants who shared a household and financial responsibilities.

B) Under Part III of the Family Law Act, because they cohabited for at least three years.

C) Under the Child Support Guidelines, if they had a child.

D) She cannot pursue support as a common law partner unless she demonstrates economic disadvantage directly caused by the relationship’s breakdown.

4. Terry, a respondent in a divorce application, originally filed an answer denying entitlement to spousal support and asserting that the parties had no children. After further consultation and discovering that his former spouse had a child during their relationship whom he had supported, he now wishes to amend his answer to seek joint decision-making and parenting time. The applicant has already filed a reply, and a case conference has been held. Terry prepares an amended answer and serves it on the other party without seeking permission.

What procedural error has Terry committed?

A) None; amendments may be served at any time before trial.

B) He must obtain written consent or leave of the court before amending pleadings at this stage.

C) He must serve a motion for summary judgment along with the amended answer.

D) He must wait until the matter is set down for trial to request an amendment.

5. Martin and Farah include an arbitration clause in their marriage contract stating that any future disputes about support or property will be resolved by binding arbitration. Five years later, they separate, and Martin refuses to arbitrate, saying he never understood the clause and never received legal advice when signing the contract.

What is the legal enforceability of the arbitration clause?

A) It is enforceable provided both parties voluntarily signed the contract and no fraud or misrepresentation is alleged.

B) It is enforceable only if the arbitration agreement was signed after the dispute arose and both parties had independent legal advice.

C) It is unenforceable unless it appears in a final separation agreement, not a marriage contract executed before the dispute.

D) It is enforceable if an accredited family arbitrator is willing to proceed and both parties attend the arbitration hearing.

Public Law

1. A provincial police agency adopts an internal policy prohibiting officers from posting any political opinions on social media, even when off-duty. Maya, an officer, is disciplined after writing a blog post supporting a municipal candidate. She challenges the disciplinary action under s. 2(b) of the Charter, claiming it violates her freedom of expression. The agency argues that the Charter does not apply to internal discipline policies and that the restriction is necessary to maintain public confidence in neutrality. The reviewing court must first determine whether the Charter even applies to the agency’s policy before addressing s. 1.

Which is the most accurate statement about the Charter's application?

A) The Charter applies to all employment contracts with public-sector employers.

B) The Charter does not apply to internal policies unless they are issued pursuant to legislative authority.

C) The Charter applies where the impugned policy reflects government action or a statutory mandate.

D) The Charter applies only when policies directly affect the administration of justice or prosecutorial discretion.

2. A tribunal member participates in a case involving a development dispute. It is later discovered that the same member had previously made public comments supporting the developer’s earlier project. The opposing party alleges a reasonable apprehension of bias and seeks to have the decision set aside.

What is the proper legal test to assess whether bias exists?

A) Whether the adjudicator disclosed any prior involvement or personal interest at the outset of the hearing and recused themselves if requested.

B) Whether a reasonable, informed person would believe the adjudicator might not decide the matter fairly.

C) Whether the final outcome appears justifiable and factually grounded, such that the adjudicator’s prior conduct is irrelevant.

D) Whether procedural fairness was respected through the hearing process, including equal opportunity for both parties to present their cases.

3. Jasmine is a paralegal who files an application for judicial review on behalf of a client after a tribunal denied their request for accommodation during a licensing examination. The tribunal dismissed the accommodation request with only a brief explanation, and Jasmine believes the panel failed to consider the medical evidence provided. She is told by the registrar’s office that judicial review is not available until the tribunal’s internal reconsideration process is used. Jasmine’s client is concerned that using that process will cause delay and prefers to go straight to court.

Which statement regarding the judicial review application in this context is correct?

A) The court has discretion to decline judicial review if the applicant fails to exhaust available remedies, but may still hear the case in exceptional circumstances.

B) The tribunal’s refusal creates a bar to all forms of review until the Attorney General consents.

C) Judicial review applications involving administrative accommodation denials must be deferred until all internal reconsideration procedures have been attempted and rejected twice under the tribunal’s procedural code.

D) Internal tribunal processes always supersede the right to seek judicial review.

Professional Responsibility

1. Janelle represents a client in a complex civil matter involving a former partner. The client sends Janelle an email asking whether certain facts could result in criminal charges. Janelle replies cautiously, explaining the risks and potential outcomes. Later, the former partner sues Janelle for defamation, alleging her reply constituted an accusation. Janelle considers submitting the email chain to defend herself.

Is she permitted to disclose this information?

A) No, because the communication is presumptively privileged and cannot be shared without the client’s express consent.

B) Yes, provided the disclosure is strictly necessary to respond to the allegations and does not exceed what is required.

C) No, unless a court determines the disclosure is essential and authorizes a limited exception to privilege.

D) Yes, but only if the client is notified in advance and does not object to the use of privileged information.

2. Alex, a civil litigation lawyer, has been acting for a plaintiff in a complex wrongful dismissal case for over a year. During the pre-trial stage, Alex advises the client to accept a settlement offer, but the client refuses and instead instructs Alex to commence a separate action against the mediator and opposing counsel for perceived bias and conspiracy. Alex explains that such an action would be frivolous and likely sanctionable, but the client insists and becomes aggressive when Alex declines to act. Communications deteriorate and the client stops responding to emails unless demands are met. Alex feels that continuing the relationship is no longer tenable and wishes to withdraw.

What must Alex do to properly withdraw?

A) File a formal complaint with the Law Society to document the client’s unreasonable conduct and request regulatory approval before withdrawing from the record in court.

B) Notify opposing counsel and the mediator of the client’s erratic behaviour and breakdown in communication to ensure transparency in the litigation process and protect the court’s integrity.

C) Provide reasonable written notice, protect the client’s interests, and comply with applicable court rules.

D) Inform the client orally during their next phone call and immediately cease working on the matter without further correspondence, since the breakdown in trust justifies abrupt termination of the retainer.

3. Sarah, a civil litigator, leaves a USB drive containing confidential documents in her briefcase, which she brings to a public café. While using the restroom, her bag is briefly unattended. Later, she realizes the drive is missing. She notifies her client but insists that no breach occurred since the files were password-protected. The client is furious and demands to know what protocols Sarah had in place to prevent such incidents.

Which duty did Sarah most clearly fail?

A) She breached solicitor-client privilege by exposing protected legal content to potential third-party access without express client authorization.

B) She failed to implement adequate safeguards to protect client confidentiality.

C) She improperly used unencrypted technology.

D) She failed to report the potential compromise to the court, thereby neglecting her duty to preserve the integrity of the evidentiary record in civil proceedings.

4. David is a litigator retained to respond to a lawsuit filed by an Indigenous government. He refers to the community as “Indians” in his pleadings, based on the language of s. 91(24) of the Constitution Act, 1867. The opposing party objects, asserting that the term is outdated and offensive. David insists that it is legally accurate and should be used throughout the proceeding.

What should David have done?

A) Used the term “Indian” exclusively throughout all written materials to reflect the constitutional language in s. 91(24) and to avoid ambiguity in identifying the legal framework governing the claim.

B) Recognized that professional sensitivity and respectful language should consider the use of “First Nation,” “Indigenous,” or community-preferred terminology.

C) Asked the court to issue a direction on whether “Indian” remains appropriate terminology under the Rules of Civil Procedure and await that guidance before amending any language.

D) Defaulted to the term “Aboriginal” in all materials to ensure broad statutory coverage and terminological consistency while remaining respectful.

ANSWERS

Civil Litigation

What must Hassan establish for the court to grant his motion?

A) That the claim has a reasonable prospect of success and that he was unaware of the dismissal.

B) That the registrar’s dismissal was made without proper notice and that reinstatement would not prejudice the defendant.

C) That the delay in setting the matter down for trial was adequately explained and that the defendant would not suffer substantial prejudice.

D) That the claim was not dismissed on its merits and that the failure to proceed was due to inadvertence.

Correct Answer: C

Explanation: Under Rule 37.14 and the court’s discretionary power to set aside a registrar’s dismissal, the moving party must show that the motion was brought promptly, that there is a reasonable explanation for the delay (i.e., that it was inadvertent or excusable), and that the reinstatement would not cause substantial prejudice to the opposing party. The merits of the claim or the presence of administrative error alone are insufficient.

What is the correct result under the Rules?

A) The third party claim remains active because Rachel’s claim for contribution or indemnity stands independently.

B) Rachel is required to commence a new proceeding if she wishes to continue her indemnity claim against Trevor.

C) Trevor must deliver a statement of defence in the third party action to avoid being noted in default.

D) The third party claim is automatically deemed dismissed thirty days after the main action ends, unless a court orders otherwise.

Correct Answer: D

Explanation: Under Rule 29.09, when the main action is discontinued or dismissed, the third party claim is deemed dismissed with costs after 30 days, unless the court orders otherwise. The claim must be converted to a separate action if the defendant wishes to preserve it.

What should counsel do to comply with privacy obligations under PIPEDA?

A) Serve the full surveillance package without edits, as all surveillance is presumptively relevant and must be disclosed.

B) Disclose the materials with redactions made to remove unrelated personal data about third parties not involved.

C) Withhold the entire surveillance file on the basis that disclosure would breach privacy rights under PIPEDA.

D) Condition any disclosure of the video on the opposing party signing a formal confidentiality undertaking first.

Correct Answer: B

Explanation: Lawyers must ensure that only as much personal information as necessary is disclosed. Irrelevant personal data, especially of unrelated third parties, should be redacted or de-identified in accordance with PIPEDA’s minimal disclosure principle.

What is the most likely legal outcome?

A) The court compels discovery, as oral discovery may precede a plan under Rule 31.

B) The court denies relief and costs because no discovery plan was in place.

C) The court imposes its own discovery plan before oral discovery can proceed.

D) The opposing party submits to discovery if pleadings are closed.

Correct Answer: B

Explanation: Rule 29.1.03 requires a written discovery plan before obtaining discovery. Under Rule 29.1.05, the court may deny relief or costs if discovery proceeds without a valid plan. Oral discovery is conditional on fulfilling these procedural prerequisites.

Which of the following is most accurate regarding Marion’s authority?

A) Counsel’s authority to act is contingent on formal approval from the board, regardless of whether the officer providing instructions has operational responsibility.

B) A corporate representative must obtain explicit authorization from the directors when initiating proceedings, particularly where no record of delegation is produced.

C) Instructions provided by an officer with apparent authority may be sufficient where the dispute arises within the scope of the corporation’s routine commercial activities.

D) Legal representation initiated without formal authorization may be challenged as irregular unless corporate approval procedures are clearly followed and documented.

Correct Answer: C

Explanation: Where litigation is in the ordinary course of the corporation’s business, a lawyer may accept instructions from an authorized officer or employee. A board resolution is not always required.

Criminal Law

What must the Court of Appeal assess before admitting this new material?

A) Whether the evidence casts doubt on the complainant’s credibility and supports a more lenient sentence.

B) Whether the new information was known to trial counsel and whether it contradicts key findings of fact.

C) Whether it meets the four-part test requiring diligence, materiality, reliability, and potential impact on the verdict.

D) Whether the evidence would have been admissible at trial and whether it supports Amanda’s version of events.

Correct Answer: C

Explanation: To admit fresh evidence on appeal, the moving party must meet the four-part test from R v Palmer: (1) the evidence could not have been obtained with due diligence before trial; (2) it is relevant to a material issue; (3) it is reasonably credible; and (4) it could reasonably be expected to have affected the result. The appellate court retains discretion and may exclude the evidence even if all criteria are technically met.

What is the appropriate sentence?

A) Conditional sentence with community-based mental health supports and regular supervision.

B) Absolute discharge due to the psychiatric context and lack of harm or criminal history.

C) Suspended sentence with mandatory counselling and psychiatric follow-up conditions.

D) Custodial sentence with post-release probation addressing mental health and public safety.

Correct Answer: D

Explanation: Arson is considered inherently dangerous due to the high risk to human life, even where harm does not result. Courts generally impose custodial sentences for arson to denounce the conduct and protect the public. Mitigating factors such as mental illness, lack of criminal record, and demonstrated recovery reduce the severity but do not eliminate the need for incarceration. Post-release probation with psychiatric oversight supports reintegration and risk management.

How should the court approach the tertiary ground?

A) The court must consider this ground only where the offence relates to terrorism or involves a loss of life.

B) The court must assess whether legal professionals would view release as undermining the integrity of the justice system.

C) The court must evaluate whether the accused has a documented pattern of violent or high-risk conduct.

D) The court must balance the offence, strength of the Crown’s case, and broader circumstances.

Correct Answer: D

Explanation: The tertiary ground under s. 515(10)(c) requires a contextual balancing of listed and other relevant factors, including gravity, circumstances, strength of the case, and sentencing. In R. v. St-Cloud, the SCC held the standard is that of a reasonable member of the public properly informed of the case and Charter values.

Which of the following best describes how the Criminal Code addresses jurisdiction in cases involving online defamatory publication?

A) The Ontario court lacks jurisdiction to hear the case if the complainant did not suffer reputational harm within the province.

B) The charges must be transferred to the province where the defamatory content was viewed and experienced.

C) A prosecution for defamatory publication may proceed where the content was either created or accessed, depending on the circumstances.

D) Only a federal court may exercise jurisdiction where alleged defamatory content was transmitted across provincial borders.

Correct Answer: C

Explanation: Under s. 478(2) of the Criminal Code, defamatory libel may be prosecuted in any territorial division where the material was published or distributed. Jurisdiction is flexible in such cases.

What is the most appropriate sentence?

A) Custodial sentence based on the intentional targeting of government property and public messaging.

B) Conditional sentence with community supervision and restrictions on participation in political protests.

C) Absolute discharge in recognition of the minor harm, prompt remediation, and strong mitigating circumstances.

D) Suspended sentence with probation including limitations on expressive conduct and a public apology.

Correct Answer: C

Explanation: In light of the limited damage, voluntary remediation, early admission of responsibility, and low risk of recidivism, an absolute discharge is warranted. The symbolic nature of the protest, while still unlawful, does not merit a criminal record in the absence of aggravating factors. A discharge allows the court to recognize the wrongfulness of the act without imposing lifelong consequences that would outweigh the seriousness of the offence.

Family Law

What is David’s most appropriate next step?

A) File a written objection with the Registrar General and request a discretionary review.

B) Apply for a publication delay while exploring possible legal remedies.

C) Commence a court application to prohibit the name change or vary the parenting terms.

D) Contact the Ministry of the Attorney General to request intervention based on parental rights.

Correct Answer: C

Explanation: Since David is a non-custodial parent, the Change of Name Act does not require his consent, but he is entitled to notice under s. 5(6). The Registrar General does not have discretion to deny the change solely on the basis of his objection without a court order. To prevent the name change, David must bring a court application to vary the parenting arrangement or to prohibit the change, potentially by injunction.

What is Liam’s best option to reduce the tax consequences of receiving the lump sum in a single year?

A) Request that the CRA consider a reallocation of the amount across the prior tax years through a designated averaging form.

B) Submit documentation to the CRA seeking to categorize the payment as a family-related capital gain spread over time.

C) Apply to the CRA to have the amount offset against prior-year registered contribution room to mitigate the tax impact.

D) Request that the CRA allow the payment to be treated as a matrimonial entitlement for equalization rather than support.

Correct Answer: A

Explanation: CRA permits recipients of lump-sum retroactive support payments to file Form T1198, allowing the agency to recalculate the tax payable as if the payments were received in the years to which they relate. This is known as income averaging and is designed to prevent unfairness where multiple years of support are paid at once. CRA is not required to accept the allocation, but where there is a clear timeline and retroactivity, the agency will often grant favourable tax treatment to preserve fairness in marginal tax rate application.

Under what legal framework may Stephanie bring her claim?

A) Under the Divorce Act, as the federal legislation permits claims by unmarried cohabitants who shared a household and financial responsibilities.

B) Under Part III of the Family Law Act, because they cohabited for at least three years.

C) Under the Child Support Guidelines, if they had a child.

D) She cannot pursue support as a common law partner unless she demonstrates economic disadvantage directly caused by the relationship’s breakdown.

Correct Answer: B

Explanation: Section 29 of the Family Law Act defines a “spouse” to include common-law partners who cohabited continuously for at least three years or were in a relationship of some permanence that resulted in a child. Stephanie meets the three-year threshold and may bring a support claim under Part III of the FLA.

What procedural error has Terry committed?

A) None; amendments may be served at any time before trial.

B) He must obtain written consent or leave of the court before amending pleadings at this stage.

C) He must serve a motion for summary judgment along with the amended answer.

D) He must wait until the matter is set down for trial to request an amendment.

Correct Answer: B

Explanation: Rule 11(2) requires a party to seek written consent from the other party or obtain the court’s permission to amend a document once a reply has been filed or a case conference has occurred. Unilateral amendment after pleadings close undermines procedural fairness. The court may strike the amendment if made without proper authorization.

What is the legal enforceability of the arbitration clause?

A) It is enforceable provided both parties voluntarily signed the contract and no fraud or misrepresentation is alleged.

B) It is enforceable only if the arbitration agreement was signed after the dispute arose and both parties had independent legal advice.

C) It is unenforceable unless it appears in a final separation agreement, not a marriage contract executed before the dispute.

D) It is enforceable if an accredited family arbitrator is willing to proceed and both parties attend the arbitration hearing.

Correct Answer: B

Explanation: Under s. 59.4 of the FLA, a family arbitration agreement is enforceable only if entered into after the dispute arises, and only if both parties received independent legal advice. Inclusion of an arbitration clause in a marriage contract is insufficient unless the parties confirm consent after the dispute materializes and meet all statutory conditions.

Public Law

Which is the most accurate statement about the Charter's application?

A) The Charter applies to all employment contracts with public-sector employers.

B) The Charter does not apply to internal policies unless they are issued pursuant to legislative authority.

C) The Charter applies where the impugned policy reflects government action or a statutory mandate.

D) The Charter applies only when policies directly affect the administration of justice or prosecutorial discretion.

Correct Answer: C

Explanation: The Charter applies to government actions, including those by entities carrying out statutory duties or implementing government policy. In Doucet-Boudreau and Eldridge, the courts held that administrative decisions and internal policies of public bodies can engage the Charter if they are made pursuant to statutory authority or fulfill a governmental objective. Internal policies of police agencies, when disciplining employees under statutory mandates, may fall within this scope.

What is the proper legal test to assess whether bias exists?

A) Whether the adjudicator disclosed any prior involvement or personal interest at the outset of the hearing and recused themselves if requested.

B) Whether a reasonable, informed person would believe the adjudicator might not decide the matter fairly.

C) Whether the final outcome appears justifiable and factually grounded, such that the adjudicator’s prior conduct is irrelevant.

D) Whether procedural fairness was respected through the hearing process, including equal opportunity for both parties to present their cases.

Correct Answer: B

Explanation: The test for reasonable apprehension of bias is whether an informed person, viewing the matter realistically and practically, would conclude that the decision maker may not decide the matter fairly (Committee for Justice and Liberty v. NEB). This standard focuses on appearance of fairness, not proof of actual bias. Prior public statements by the decision maker may undermine the presumption of impartiality if they suggest pre-judgment or advocacy.

Which statement regarding the judicial review application in this context is correct?

A) The court has discretion to decline judicial review if the applicant fails to exhaust available remedies, but may still hear the case in exceptional circumstances.

B) The tribunal’s refusal creates a bar to all forms of review until the Attorney General consents.

D) Internal tribunal processes always supersede the right to seek judicial review.

Correct Answer: A

Explanation: Judicial review is a discretionary remedy, and courts often consider whether the applicant has exhausted alternative remedies, such as internal appeals or reconsideration. However, failure to do so does not legally preclude review. If internal remedies are inadequate, unavailable, or would cause unfair delay, courts may still proceed. Here, Jasmine’s client may argue that the tribunal’s handling of a human rights accommodation request was so deficient that reconsideration would be futile or prejudicial. The exhaustion doctrine is flexible, not absolute.

Professional Responsibility

Is she permitted to disclose this information?

A) No, because the communication is presumptively privileged and cannot be shared without the client’s express consent.

B) Yes, provided the disclosure is strictly necessary to respond to the allegations and does not exceed what is required.

C) No, unless a court determines the disclosure is essential and authorizes a limited exception to privilege.

D) Yes, but only if the client is notified in advance and does not object to the use of privileged information.

Correct Answer: B

Explanation: Rule 3.3-4 of the Model Code allows a lawyer to disclose confidential or privileged information if reasonably necessary to respond to allegations of misconduct, including defamation. This is a limited exception to the duty of confidentiality. The lawyer must confine disclosure strictly to what is required to defend themselves, without overstepping the scope of the exception.

What must Alex do to properly withdraw?

A) File a formal complaint with the Law Society to document the client’s unreasonable conduct and request regulatory approval before withdrawing from the record in court.

B) Notify opposing counsel and the mediator of the client’s erratic behaviour and breakdown in communication to ensure transparency in the litigation process and protect the court’s integrity.

C) Provide reasonable written notice, protect the client’s interests, and comply with applicable court rules.

Correct Answer: C

Explanation: Under Rule 3.7-1 and the commentary, a lawyer must provide reasonable notice of withdrawal and protect the client’s interests during the transition. Even where good cause exists due to a serious breakdown in communication, the lawyer must act professionally and follow court procedures regarding withdrawal.

Which duty did Sarah most clearly fail?

A) She breached solicitor-client privilege by exposing protected legal content to potential third-party access without express client authorization.

B) She failed to implement adequate safeguards to protect client confidentiality.

C) She improperly used unencrypted technology.

D) She failed to report the potential compromise to the court, thereby neglecting her duty to preserve the integrity of the evidentiary record in civil proceedings.

Correct Answer: B

Explanation: Lawyers must take reasonable steps to protect all client information, including digital files. Leaving confidential documents in a public area without adequate safeguards, even if password-protected, may constitute a breach of the duty of confidentiality under Rule 3.3-1.

What should David have done?

B) Recognized that professional sensitivity and respectful language should consider the use of “First Nation,” “Indigenous,” or community-preferred terminology.

C) Asked the court to issue a direction on whether “Indian” remains appropriate terminology under the Rules of Civil Procedure and await that guidance before amending any language.

D) Defaulted to the term “Aboriginal” in all materials to ensure broad statutory coverage and terminological consistency while remaining respectful.

Correct Answer: B

Explanation: While “Indian” remains a term used in legislation, lawyers are advised to use language that is culturally appropriate and respectful. Using “First Nation,” “Métis,” “Inuit,” or community-specific terms is preferred unless quoting legal statutes verbatim.

Solicitor

Business Law

1. John serves as a director of a private corporation but decides to resign due to internal financial issues within the company. After submitting his resignation letter, he discovers that the corporation owes unpaid taxes to the CRA from before his resignation.

What are John’s obligations regarding these tax liabilities?

A) John may remain personally liable for corporate tax debts that arose during his directorship.

B) John is only liable if the CRA establishes that his resignation was not made in good faith.

C) John cannot be held liable for unpaid taxes unless he was directly involved in the corporation’s financial decisions.

D) John is automatically shielded from liability for prior tax debts once his resignation takes legal effect.

2. Jayden is investing in a startup that is relying on the minimum amount exemption. He plans to invest $160,000, which he will pay in full on closing. Jayden asks whether he can structure the purchase through his family trust, which holds other investments. The issuer is unsure whether the exemption applies to trusts or only to individuals.

Does the minimum amount exemption under securities law apply to Jayden’s proposed investment through his family trust?

A) The exemption is limited to individuals who invest $150,000 or more, and does not extend to entities like trusts or corporations.

B) It applies to non-individual investors purchasing $150,000 or more in securities as principal.

C) It applies only if the securities are listed on a stock exchange.

D) Any use of finder’s fees or commissions disqualifies the transaction from relying on the minimum amount exemption under NI 45-106.

3. Tarek is the CEO and sole director of a private corporation that failed to remit source deductions for employee payroll in 2021. The corporation has since been dissolved, and the CRA has assessed Tarek personally for the unpaid remittances. He argues that he was unaware of the failure and had relied on the corporation’s bookkeeper. Tarek ceased to act as a director in December 2022, and the CRA issued the assessment in March 2025. He is now disputing whether he can still be held personally liable for the corporation’s remittance failures.

Which of the following is most accurate regarding Tarek’s potential liability?

A) Tarek is personally liable unless the CRA can prove he was involved in fraud or gross negligence.

B) Tarek cannot be liable because he was not involved in the corporation's day-to-day operations, such as bookkeeping.

C) Tarek’s liability is capped by the corporation’s available assets at dissolution.

D) Tarek may avoid liability if more than two years have passed since he ceased to be a director.

What must be done to enable Jared's plan?

A) The new class must be approved by a unanimous shareholder resolution.

B) The class must be created by special resolution at an annual general meeting.

C) The articles must authorize the issuance of shares in series and their terms.

D) Each series must be registered with the Ontario Securities Commission.

5. Aaron, a registered Indian, receives investment income from a term deposit account held at a caisse populaire physically located on-reserve. The CRA audits Aaron and claims that the investment income is taxable because it arises from participation in the broader financial system. Aaron relies on the Supreme Court of Canada's decision in Bastien Estate v. Canada to support his exemption claim. The CRA maintains that all passive investment income is taxable. Aaron disputes this, pointing to the location and nature of the financial agreement.

Is Aaron’s investment income potentially exempt from tax under the Indian Act?

A) Investment income earned from a financial institution located on-reserve may be exempt from taxation if the connecting factors support exemption.

B) Investment income is presumed taxable under the Income Tax Act unless it is reinvested in a business with a physical presence on-reserve.

C) Only income arising from active employment or business activities may qualify for exemption under section 87 of the Indian Act.

D) Interest income can be exempt only if the financial institution is exclusively owned and operated by a First Nation or band council.

6. Andre, a director of a private OBCA corporation, recommends reducing the stated capital of the corporation's common shares to improve financial ratios. The board agrees, and a special resolution is proposed to reduce the capital. A class of preferred shareholders argues that the reduction affects them differently, as it alters their redemption rights. The board is unsure whether a separate class vote is required. The corporation seeks clarification on the voting procedure.

What voting procedure applies if a proposed capital reduction affects one class of shareholders differently than others?

A) A separate class vote is not required unless the affected class of shareholders also holds shares with voting rights attached under the articles.

B) Class voting is only triggered when a reduction of capital directly results in the issuance of a dividend that alters share value.

C) If a class is affected differently, a separate class vote is required for the stated capital reduction.

D) All reductions of stated capital must first be approved by court order before proceeding to shareholder approval.

Estate Planning

1. Emma, a single mother, names her brother, Jack, as the guardian of her minor daughter, Lily, in her will. Emma's will also specifies that Jack should manage Lily's inheritance until she reaches the age of 21. After Emma's unexpected death, Jack steps in as Lily's guardian.

Under the Children’s Law Reform Act (CLRA), what must Jack do to legally manage Lily’s inheritance?

A) Jack becomes the guardian of Lily’s property by virtue of being named in the will and taking on custody.

B) Jack must seek court authorization to act as property guardian, even though the will names him as such.

C) Jack is entitled to administer the property under the will without court involvement, unless contested.

D) Jack must notify the Office of the Children’s Lawyer and follow their recommendations before managing assets.

2. Jasper and Emily are married with two children. Each makes a separate will appointing different individuals to have decision-making responsibility for the children if both parents die. Jasper appoints his brother and Emily appoints her sister. Tragically, both parents die in a common car accident. A dispute arises between the appointed relatives about who should care for the children. The will clauses are uncoordinated and name different people. The court must now interpret the conflicting testamentary appointments under the CLRA.

Which of the following best describes how the court will resolve this?

A) The parent who executed their will most recently will prevail.

B) In the event of simultaneous death, only the common appointments in both wills are valid.

C) Both appointments will be accepted equally, and joint authority will be presumed.

D) Testamentary appointments are automatically void in cases of conflict.

3. Veronica names her best friend Lila in her will to assume decision-making responsibility for her minor child in the event of her death. Lila is flattered but unsure whether she wants the responsibility. After Veronica’s death, Lila receives notice of her appointment and is asked to assume care of the child immediately. She has not yet agreed and wants to consider her options. Veronica’s brother also steps forward, intending to make an application to the court for decision-making responsibility.

What is the correct legal result in this scenario?

A) The testamentary appointment automatically overrides any court application.

B) A testamentary appointment is only effective if the appointee consents.

C) The court will appoint the estate trustee as interim guardian.

D) The Office of the Children’s Lawyer will automatically assume care until resolved.

4. Dana dies intestate, leaving her spouse and two children. Her estate includes a registered investment portfolio and a valuable rental property. The executor proposes using a testamentary spousal trust to defer tax on the deemed disposition of the rental property. The surviving spouse will receive all income for life and no other party will receive any benefit during that time. The trust will vest indefeasibly within 24 months. However, the will contains a clause terminating the spouse’s interest if the spouse remarries.

Which of the following most accurately describes the tax treatment?

A) The rollover will apply as long as the spouse receives all trust income and the trust vests within 36 months.

B) The remarriage clause is irrelevant to the rollover because the spouse is entitled to income until remarriage.

C) The clause causes the trust to fail as a qualifying spousal trust, disqualifying the rollover under s. 70(6).

D) The clause renders the spouse’s interest defeasible, thereby invalidating the rollover despite all other conditions being met.

Real Estate

1. Mark is purchasing a residential property, and during the title search, his lawyer discovers a restrictive covenant registered against the property, prohibiting any construction that exceeds two stories. Mark plans to build a three-story home on the property.

What should Mark’s lawyer advise him to do?

A) Proceed with the transaction and apply to the court post-closing for a declaration that the covenant is unenforceable.

B) Negotiate with the vendor for a price reduction to offset the risk posed by the covenant.

C) Explain that the covenant is binding and may prevent construction unless it is lawfully removed or varied.

D) Rely on municipal approval processes, which override private land use restrictions like covenants.

2. Isabelle is acting for a seller who owns two adjacent properties on a concession lot, Part A and Part B. She learns that Part A was conveyed to the seller in 1980 and Part B was added by transfer in 1991. Now, the seller wishes to sell Part A and retain Part B. Isabelle advises that this transaction may contravene s. 50(3) unless an exception applies. The seller notes that both parts are described by reference plans and claims the lands are distinguishable for legal purposes.

Which of the following is the best legal advice?

A) Reference plans make the lands non-abutting, so no contravention exists.

B) The historical acquisition dates separate the properties for Planning Act purposes.

C) The merger of title occurred only for tax purposes and does not affect Planning Act compliance.

D) If abutting lands are held in common ownership, they are considered merged, and the seller must rely on a valid exception or obtain consent.

3. Evan is a solicitor acting for a mortgagee who wishes to exercise a power of sale after the borrower defaulted on monthly payments. The mortgage does not contain an express power of sale clause. Evan advises the lender to rely on Part II of the Mortgages Act, noting that more than three months have passed since the default. He prepares a notice of sale that provides 37 days’ notice, which is served on the mortgagor and all known subsequent encumbrancers. The mortgagor argues that the notice does not meet the minimum statutory requirement. Evan insists that the time provided exceeds the standard 35-day period and should suffice.

Which of the following is most accurate?

A) The notice is valid because more than 35 days was provided.

B) The statutory power of sale requires at least 45 days’ notice under Part II.

C) The mortgagee must seek judicial sale since no power of sale clause exists.

D) The notice is effective only if a quit claim deed is simultaneously tendered.

4. Zahra is the estate trustee for her late father’s estate. His professionally drafted trust will includes an express power of sale but also contains a specific gift of the family cottage to Zahra’s sister. The cottage is the estate’s most valuable asset and is needed to pay significant debts. Zahra wishes to sell the cottage despite the specific gift. Her sister refuses to consent, insisting that the gift is binding. Zahra believes the express power of sale overrides the gift and allows her to sell.

What is the correct legal result?

A) The power of sale allows Zahra to sell any property, including specifically gifted ones.

B) Zahra cannot sell the property unless the beneficiary consents or the debts justify it.

C) The specific gift nullifies the power of sale for that asset.

D) Zahra may sell the property but must pay compensation to her sister afterward.

5. On January 10, 2024, Stephanie agreed to purchase a commercial property in Ontario, financing the acquisition through a $900,000 loan from First Summit Bank. The parties entered into a commitment letter referencing standard charge terms (Filing No. 203310), and Stephanie’s solicitor registered a Form 2 charge under the Land Titles Act using Teraview. The loan provided for blended monthly payments with interest calculated monthly not in advance. However, the charge failed to include the equivalent annual interest rate. Six months later, Stephanie defaults and argues that the interest provision is unenforceable. The lender claims full recovery.

Which of the following is most accurate regarding the enforceability of the interest clause?

A) The interest clause is fully enforceable because it complied with the Interest Act’s general disclosure requirement.

B) The interest clause is void because it failed to state the interest rate in half-yearly or yearly terms.

C) The clause is enforceable because blended payments inherently imply an annual calculation.

D) The clause is void only if the borrower can prove they were unaware of the calculation method.

6. Alan is representing the estate trustee of a deceased person who died owning a matrimonial home in joint tenancy with his mother. The surviving spouse was not a joint tenant. The mother now claims sole ownership under the right of survivorship. The spouse, however, asserts a claim to the home. Alan is asked whether the property passed to the mother automatically upon death or whether the deceased's estate retained a share.

How should Alan advise the estate trustee regarding the legal effect of the joint tenancy under Ontario’s Family Law Act?

A) The mother is entitled to full ownership under survivorship because the title was registered in joint tenancy at the time of death.

B) The surviving spouse is automatically entitled to inherit the deceased’s entire share of the matrimonial home.

C) The joint tenancy is deemed severed by law, and the mother and estate now hold the property as tenants in common.

D) The estate trustee will need to bring an application for directions to resolve the competing claims.

Professional Responsibility

1. Emily, a real estate lawyer, is meeting with her client, Michael, to discuss the sale of a commercial property. Michael brings his business partner and his real estate agent to the meeting, asking them to stay and assist in decision-making.

How should Emily handle this situation?

A) Advise Michael that including third parties may affect solicitor-client privilege and proceed only with informed consent.

B) Proceed with the meeting, relying on Michael’s implicit waiver of confidentiality by inviting them.

C) Permit the business partner’s presence as a stakeholder, but exclude the agent to preserve privilege.

D) Decline to continue the meeting unless all non-clients are excluded to protect against future liability.

2. During a will-drafting meeting, Tina’s client says she would like to leave half her estate to “my daughter, who now identifies as my son.” Tina assumes this is a misstatement and proceeds to draft the will using the client’s old family information, identifying the child as "daughter." She does not seek clarification or make any reference to the child’s preferred name or pronouns in the will.

What professional responsibility has Tina most clearly failed to meet?

A) She failed to obtain relevant health information that may affect the client’s testamentary instructions or mental capacity.

B) She failed to demonstrate cultural competence by sensitively clarifying identity-based language in the drafting of a personal legal document.

C) She failed to verify the estimated estate value and potential tax liabilities with appropriate financial professionals.

D) She failed to comply with due diligence obligations under the anti-money laundering and client identification verification rules.

3. Martin is a solicitor retained to structure the purchase of shares in a family-owned business. He discovers an error in the share register that affects voting rights. He considers correcting it quietly but realizes the change will negatively affect one shareholder’s interests. Martin decides not to disclose the issue to his client, fearing it might delay closing.

What duty has Martin breached?

A) The duty to refer the client for tax advice.

B) The duty to notify the Law Society of improper resolutions.

C) The duty of honesty and candour in communicating material issues.

D) The duty to disclose the shareholder registry to the government.

4. Terence is a business lawyer who shares office space with a former licensee whose license was revoked following a misconduct finding. Terence allows the former licensee to answer phones and occasionally review corporate filing documents. He does not inform the Law Society of the arrangement and assumes the former licensee is “just helping out.”

What rule has Terence violated?

A) He failed to report a potential professional error to LAWPRO in accordance with the mandatory claim notification provisions.

B) He failed to register his business name under the Business Names Act, despite operating from shared premises with signage.

C) He failed to include the licensee on firm letterhead.

D) He employed a former licensee in a legal capacity without approval from the Law Society Tribunal.

5. Anna accepts a money retainer of $10,000 from a new estate planning client. She deposits the entire amount into her general account and begins drafting the will and trust structure. She reasons that the funds will eventually be earned and finds trust accounting too complex.

What fundamental rule did Anna violate?

A) She failed to notify the Canada Revenue Agency of the new client retainer for regulatory tracking purposes.

B) She deposited advance funds for legal services directly into her general account without treating them as unearned trust funds.

C) She billed and received payment for legal services exceeding the flat fee cap permitted under provincial estate planning guidelines.

D) She failed to register the client’s estate planning documents with the Office of the Public Guardian and Trustee before completion.

ANSWERS

Business Law

What are John’s obligations regarding these tax liabilities?

A) John may remain personally liable for corporate tax debts that arose during his directorship.

B) John is only liable if the CRA establishes that his resignation was not made in good faith.

C) John cannot be held liable for unpaid taxes unless he was directly involved in the corporation’s financial decisions.

D) John is automatically shielded from liability for prior tax debts once his resignation takes legal effect.

Correct Answer: A

Explanation: Under CBCA s. 227.1 and OBCA s. 121(1), directors can be held personally liable for certain corporate tax liabilities, such as unremitted source deductions or HST, if the debts arose during their tenure. Resignation does not retroactively remove this liability; it only prevents future exposure. The CRA must act within two years of the director’s resignation to enforce the liability.

Does the minimum amount exemption under securities law apply to Jayden’s proposed investment through his family trust?

A) The exemption is limited to individuals who invest $150,000 or more, and does not extend to entities like trusts or corporations.

B) It applies to non-individual investors purchasing $150,000 or more in securities as principal.

C) It applies only if the securities are listed on a stock exchange.

D) Any use of finder’s fees or commissions disqualifies the transaction from relying on the minimum amount exemption under NI 45-106.

Correct Answer: B

Explanation: The minimum amount exemption under s. 2.10 of NI 45-106 applies to purchases by non-individuals (e.g., corporations or trusts) where the acquisition cost is at least $150,000 paid in cash. It is based on the assumption that large investments by non-individuals imply a level of sophistication and ability to withstand risk.

Which of the following is most accurate regarding Tarek’s potential liability?

A) Tarek is personally liable unless the CRA can prove he was involved in fraud or gross negligence.

B) Tarek cannot be liable because he was not involved in the corporation's day-to-day operations, such as bookkeeping.

C) Tarek’s liability is capped by the corporation’s available assets at dissolution.

D) Tarek may avoid liability if more than two years have passed since he ceased to be a director.

Correct Answer: D

Explanation: Under s. 227.1(4) of the ITA, a director is not liable for unremitted source deductions if more than two years have passed since they ceased to be a director. If CRA issues an assessment beyond this two-year period, the director may assert this time bar as a complete defence, regardless of their prior involvement or knowledge.

4. Jared wishes to issue a new class of shares in his OBCA corporation that would be entitled to fixed dividends and redemption rights, but not voting rights. He wants to ensure he can create multiple series within this class and assign different dividend rates to each. His lawyer informs him that this is possible, but only under certain statutory conditions. Jared wants to ensure flexibility for future financing rounds.

What must be done to enable Jared's plan?

A) The new class must be approved by a unanimous shareholder resolution.

B) The class must be created by special resolution at an annual general meeting.

C) The articles must authorize the issuance of shares in series and their terms.

D) Each series must be registered with the Ontario Securities Commission.

Correct Answer: C

Explanation: Under s. 25 of the OBCA, a class of shares may be created with the ability to issue shares in series if the articles authorize this. The articles must specify either the terms of each series or grant the board authority to determine them later. This approach offers maximum flexibility in structuring share issuances over time.

Is Aaron’s investment income potentially exempt from tax under the Indian Act?

A) Investment income earned from a financial institution located on-reserve may be exempt from taxation if the connecting factors support exemption.

B) Investment income is presumed taxable under the Income Tax Act unless it is reinvested in a business with a physical presence on-reserve.

C) Only income arising from active employment or business activities may qualify for exemption under section 87 of the Indian Act.

D) Interest income can be exempt only if the financial institution is exclusively owned and operated by a First Nation or band council.

Correct Answer: A

Explanation: In Bastien Estate, the Supreme Court held that interest income may be exempt if the contractual relationship giving rise to the income was entered into on-reserve and the connecting factors weigh in favour of exemption. Participation in the commercial mainstream does not automatically negate the exemption.

What voting procedure applies if a proposed capital reduction affects one class of shareholders differently than others?

A) A separate class vote is not required unless the affected class of shareholders also holds shares with voting rights attached under the articles.

B) Class voting is only triggered when a reduction of capital directly results in the issuance of a dividend that alters share value.

C) If a class is affected differently, a separate class vote is required for the stated capital reduction.

D) All reductions of stated capital must first be approved by court order before proceeding to shareholder approval.

Correct Answer: C

Explanation: Under OBCA s. 34(2), if a proposed reduction in stated capital affects holders of one class or series of shares differently than other shareholders, then those holders are entitled to vote separately as a class or series. This ensures that rights are not altered without appropriate representation and approval by affected shareholders.

Estate Planning

Under the Children’s Law Reform Act (CLRA), what must Jack do to legally manage Lily’s inheritance?

A) Jack becomes the guardian of Lily’s property by virtue of being named in the will and taking on custody.

B) Jack must seek court authorization to act as property guardian, even though the will names him as such.

C) Jack is entitled to administer the property under the will without court involvement, unless contested.

D) Jack must notify the Office of the Children’s Lawyer and follow their recommendations before managing assets.

Correct Answer: B

Explanation: Under section 47 of the Children’s Law Reform Act, being named as a guardian of property in a will does not in itself confer legal authority. The named individual must still apply to the court to be formally appointed. Unless the will provides a trust structure with a trustee holding explicit authority, Jack cannot legally manage the inheritance without a court order.

Which of the following best describes how the court will resolve this?

A) The parent who executed their will most recently will prevail.

B) In the event of simultaneous death, only the common appointments in both wills are valid.

C) Both appointments will be accepted equally, and joint authority will be presumed.

D) Testamentary appointments are automatically void in cases of conflict.

Correct Answer: B

Explanation: Under s. 61(5) of the CLRA, when parents with joint decision-making responsibility die in a common disaster, only appointments that are common to both parents’ wills are effective. Conflicting appointments cancel each other out unless the same person (or persons) is appointed in both wills.

What is the correct legal result in this scenario?

A) The testamentary appointment automatically overrides any court application.

B) A testamentary appointment is only effective if the appointee consents.

C) The court will appoint the estate trustee as interim guardian.

D) The Office of the Children’s Lawyer will automatically assume care until resolved.

Correct Answer: B

Explanation: Under s. 61(6) of the CLRA, no testamentary appointment of decision-making responsibility is effective unless the person appointed consents. If Lila does not consent, the appointment fails, and another person (including Veronica’s brother) may apply to the court under s. 21 of the CLRA.

Which of the following most accurately describes the tax treatment?

A) The rollover will apply as long as the spouse receives all trust income and the trust vests within 36 months.

B) The remarriage clause is irrelevant to the rollover because the spouse is entitled to income until remarriage.

C) The clause causes the trust to fail as a qualifying spousal trust, disqualifying the rollover under s. 70(6).

D) The clause renders the spouse’s interest defeasible, thereby invalidating the rollover despite all other conditions being met.

Correct Answer: D

Explanation: For a trust to qualify as a testamentary spousal trust under s. 70(6), the spouse must have an indefeasible right to receive all income for life. A clause terminating income rights upon remarriage creates a defeasible interest, disqualifying the trust from rollover treatment.

Real Estate

What should Mark’s lawyer advise him to do?

A) Proceed with the transaction and apply to the court post-closing for a declaration that the covenant is unenforceable.

B) Negotiate with the vendor for a price reduction to offset the risk posed by the covenant.

C) Explain that the covenant is binding and may prevent construction unless it is lawfully removed or varied.

D) Rely on municipal approval processes, which override private land use restrictions like covenants.

Correct Answer: C

Explanation: Restrictive covenants are enforceable private land use restrictions that run with the land. Even if municipal zoning permits a three-story home, a registered covenant limiting construction to two stories is binding unless successfully challenged or varied under the Land Titles Act or through mutual agreement. The lawyer must inform Mark of this limitation and the risks of proceeding without addressing it.

Which of the following is the best legal advice?

A) Reference plans make the lands non-abutting, so no contravention exists.

B) The historical acquisition dates separate the properties for Planning Act purposes.

C) The merger of title occurred only for tax purposes and does not affect Planning Act compliance.

D) If abutting lands are held in common ownership, they are considered merged, and the seller must rely on a valid exception or obtain consent.

Correct Answer: D

Explanation: Under s. 50(3), abutting lands owned in common merge for the purpose of the Act, even if acquired at different times or described by separate reference plans. A sale of one part while retaining the other is prohibited unless an applicable exception or consent exists.

Which of the following is most accurate?

A) The notice is valid because more than 35 days was provided.

B) The statutory power of sale requires at least 45 days’ notice under Part II.

C) The mortgagee must seek judicial sale since no power of sale clause exists.

D) The notice is effective only if a quit claim deed is simultaneously tendered.

Correct Answer: B

Explanation: Where there is no contractual power of sale, the mortgagee must rely on Part II of the Mortgages Act, which requires a minimum of three months’ default and at least 45 days’ notice in writing before the sale (s. 24 and s. 26). Evan's 37-day notice is therefore insufficient.

What is the correct legal result?

A) The power of sale allows Zahra to sell any property, including specifically gifted ones.

B) Zahra cannot sell the property unless the beneficiary consents or the debts justify it.

C) The specific gift nullifies the power of sale for that asset.

D) Zahra may sell the property but must pay compensation to her sister afterward.

Correct Answer: B

Explanation: An estate trustee may not sell real property specifically gifted in a will unless there are insufficient assets to pay the estate’s debts or the beneficiary consents. An express power of sale does not override a specific devise unless the sale is necessary to satisfy liabilities.

Which of the following is most accurate regarding the enforceability of the interest clause?

A) The interest clause is fully enforceable because it complied with the Interest Act’s general disclosure requirement.

B) The interest clause is void because it failed to state the interest rate in half-yearly or yearly terms.

C) The clause is enforceable because blended payments inherently imply an annual calculation.

D) The clause is void only if the borrower can prove they were unaware of the calculation method.

Correct Answer: B

Explanation: Under s. 6 of the federal Interest Act, where a mortgage provides for blended payments and interest is calculated monthly, the equivalent interest rate calculated yearly or half-yearly must be stated. Failure to do so renders the interest clause unenforceable.

How should Alan advise the estate trustee regarding the legal effect of the joint tenancy under Ontario’s Family Law Act?

A) The mother is entitled to full ownership under survivorship because the title was registered in joint tenancy at the time of death.

B) The surviving spouse is automatically entitled to inherit the deceased’s entire share of the matrimonial home.

C) The joint tenancy is deemed severed by law, and the mother and estate now hold the property as tenants in common.

D) The estate trustee will need to bring an application for directions to resolve the competing claims.

Correct Answer: C

Explanation: Under s. 26(1) of the Family Law Act, a joint tenancy involving a matrimonial home between a deceased and a non-spouse is deemed severed upon death. The result is a tenancy in common, with the deceased’s share forming part of the estate and subject to the surviving spouse’s rights.

Professional Responsibility

How should Emily handle this situation?

A) Advise Michael that including third parties may affect solicitor-client privilege and proceed only with informed consent.

B) Proceed with the meeting, relying on Michael’s implicit waiver of confidentiality by inviting them.

C) Permit the business partner’s presence as a stakeholder, but exclude the agent to preserve privilege.

D) Decline to continue the meeting unless all non-clients are excluded to protect against future liability.

Correct Answer: A

Explanation: Rule 3.3-1 requires lawyers to maintain confidentiality and warn clients that the presence of third parties may undermine solicitor-client privilege. Emily should ensure Michael understands the implications and consents before proceeding. Privilege may be lost if a court later finds the communication was not confidential due to the presence of others.

What professional responsibility has Tina most clearly failed to meet?

A) She failed to obtain relevant health information that may affect the client’s testamentary instructions or mental capacity.

B) She failed to demonstrate cultural competence by sensitively clarifying identity-based language in the drafting of a personal legal document.

C) She failed to verify the estimated estate value and potential tax liabilities with appropriate financial professionals.

D) She failed to comply with due diligence obligations under the anti-money laundering and client identification verification rules.

Correct Answer: B

Explanation: Competence includes cultural awareness and the ability to adapt communication and drafting to reflect clients’ lived realities. Failing to respectfully clarify how the client wants their child described in such a personal legal document undermines the quality of legal service and the lawyer-client relationship.

What duty has Martin breached?

A) The duty to refer the client for tax advice.

B) The duty to notify the Law Society of improper resolutions.

C) The duty of honesty and candour in communicating material issues.

D) The duty to disclose the shareholder registry to the government.

Correct Answer: C

Explanation: Lawyers must inform their clients of facts they know that could materially affect the client’s decision-making. Withholding adverse information, even for expediency, violates the duty to act with honesty, loyalty, and in the client’s best interests.

What rule has Terence violated?

A) He failed to report a potential professional error to LAWPRO in accordance with the mandatory claim notification provisions.

B) He failed to register his business name under the Business Names Act, despite operating from shared premises with signage.

C) He failed to include the licensee on firm letterhead.

D) He employed a former licensee in a legal capacity without approval from the Law Society Tribunal.

Correct Answer: D

Explanation: Lawyers must not employ or associate with individuals whose license has been suspended or revoked in any legal capacity unless expressly approved by a panel of the Law Society Tribunal. Doing so exposes the public to unauthorized legal services and risks regulatory discipline.

What fundamental rule did Anna violate?

A) She failed to notify the Canada Revenue Agency of the new client retainer for regulatory tracking purposes.

B) She deposited advance funds for legal services directly into her general account without treating them as unearned trust funds.

C) She billed and received payment for legal services exceeding the flat fee cap permitted under provincial estate planning guidelines.

D) She failed to register the client’s estate planning documents with the Office of the Public Guardian and Trustee before completion.

Correct Answer: B

Explanation: All money retainers for future legal services must be deposited into a trust account. Lawyers may only transfer funds to general once they have issued a bill and the funds are considered earned. Depositing retainers into general prematurely is misappropriation of client funds.

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NCA Sample Practice Questions

Barrister

Solicitor

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