Ontario Barrister and Solicitor Practice Exam

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Study for the Ontario Barrister and Solicitor Exam. Quiz with flashcards and multiple choice questions, each with hints and explanations. Prepare for your legal career!

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What is a key difference between BIA and CCAA proposals concerning defaults?

  1. CCAA defaults result in higher fines

  2. BIA defaults are more lenient

  3. CCAA defaults do not result in automatic bankruptcy

  4. There is no difference between BIA and CCAA proposals

The correct answer is: CCAA defaults do not result in automatic bankruptcy

A key difference between BIA and CCAA proposals concerning defaults is that CCAA defaults do not result in automatic bankruptcy. This means that if a company fails to meet their obligations under a CCAA proposal, they will not automatically be forced into bankruptcy. On the other hand, if a company defaults on a BIA proposal, they will be required to file for bankruptcy. Option A and B are incorrect because they provide irrelevant information about the consequences of defaults, while option D is incorrect because it states there is no difference between the two proposals, which is not true.

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