MCQ MOODLE
exceptions to silence not constituting misrepresentation?
- material change in circumstances - if remaining silent would make a statement misleading - if the parties had a fiduciary relationship - cases where the contract is one of good faith - these situations can allow for actionable misrepresentation
which remedies are provided to the claimant under CRA 2015?
- short term right to reject (s20 and s22) - right to repair or replacement (s23) - the right to a price reduction or final right to reject (s20 and s24)
what must be present to identify a misrepresentation?
- statement of material fact (not opinion) that induces another party into contract - representation that was false - innocent party believed the statement to be true - representation induced the party into the contract
according to Bristol Aeroplane, the Court of Appeal is generally bound by its previous decisions subject to three exceptions, what are they?
- the court is entitled and bound to decide which of two conflicting decisions of its own it will follow - the court is bound to refuse to follow a decision on its own which, though not expressly overruled, cannot, in its opinion, stand with a decision of the house of lords - the court is not bound to follow a decision of its own if it is satisfied that the decision was given per incuriam (through lack of care)
Section 22 of the Consumer Rights Act 2015 provides the (qualifying) claimant with the 'short-term right to reject'. Which of following identifies the period of time in which the right to reject must be exercised? (Assume all the necessary requirements have been followed). Select one: a. 30 days b. 7 working days c. 100 days d. 60 days
30 days
Which of the following is the most accurate description of civil law?
Civil law is a form of private law and involves the relationship between individuals
Femi took his suit to KwikiKlean plc for dry cleaning. When he handed over his suit he signed a document without reading it. Which of the following is incorrect? a. By signing the document Femi is deemed to have read its contents. b. If the terms of the document are in small print they may be regarded as unfair. c. Femi cannot be bound as he has not read the contents of the document. d. Femi is bound by the terms of the document unless they are invalid by the application of common law or statutory rules.
Femi cannot be bound as he has not read the contents of the document
Which one of the following is not a possible effect/outcome when a director is found to have breached the duty to act in accordance with the constitution of the company? If the transaction outside the constitution is entered into with a third party, then the company can set aside the transaction. If the transaction outside the constitution is entered into with the company, then the company can set aside the transaction. The director will be required to account for any gains made. The director will be required to indemnify the company for any losses sustained as a result of the transaction.
If the transaction outside the constitution is entered into with a third party, then the company can set aside the transaction.
Which of the following is true about the assessment of 'fairness' in an unfair dismissal case? Select one: a. It is an objective assessment of the fairness of the employer's dismissal decision. b. Much like medical malpractice cases, it is based on evidence and testimony of the local industry standard for fairness in dismissal decisions. c. It is based on the tribunal imagining the range of reasonable employers, and then imagining what different reasonable responses those employers might make to the circumstances at issue, and then deciding whether the actual decision at issue was worse than the worst of those decisions it imagined might be made by those reasonable employers it imagined. d. It is based exclusively on the substantive reasons for the dismissal, not the procedure for arriving at the decision.
It is based on the tribunal imagining the range of reasonable employers, and then imagining what different reasonable responses those employers might make to the circumstances at issue, and then deciding whether the actual decision at issue was worse than the worst of those decisions it imagined might be made by those reasonable employers it imagined.
What would NOT constitute a valid acceptance by Peter of an offer made by Jane?
Jane telephones Peter, offering to buy his valuable Persian rug, Peter says he will think about it. Later that day, Peter telephones Jane and tells her that he will be happy to sell her the rug and the price is £500. those that do constitute a valid acceptance by Peter of an offer made by Jane - On Monday morning, Jane sends a letter to Peter offering to sell her Vauxhall Astra car to him for £1500. Peter receives the letter on Tuesday morning, and immediately writes back, telling Jane that he will buy the car for that price. - Jane sends a fax message to Peter, offering to sell him her antique dining table and six chairs for £2,000, and asking him to reply by fax by 5 pm the same day. Later that day, Peter sends Jane a fax message at 4.50 pm, saying that he is prepared to buy the furniture at that price. - Jane telephones Peter asking if he would like to purchase her car for £1000. Peter agrees to the purchase for a sum of £1000.
What is the difference between private law and public law?
Private law refers to the relationship between individual citizens. Public law refers to the relationship individual citizens and the state.
Which of the following is not recommended by the ACAS code for discipline and grievance procedures? Select one: a. Procedures should identify what levels of management have the authority to take disciplinary action. b. Procedures should provide that management ensure a speedy process by avoiding investigations until after disciplinary decisions have been made. c. Procedures should provide that no employee is dismissed for a first breach of discipline, except in cases of gross misconduct. d. Procedures should be set out in writing.
Procedures should provide that management ensure a speedy process by avoiding investigations until after disciplinary decisions have been made.
Anton is learning to drive with his father, when he mistakenly goes into reverse gear instead of first gear and hits a pedestrian on the road behind him. Although he is moving very slowly, the elderly and frail pedestrian suffers bruising, but also a heart attack induced by the shock. She dies within minutes. Which of the following best describes the legal position? A The standard of care owed by Anton is that of a reasonable learner driver and the fact that she is especially vulnerable is irrelevant B The standard of care owed is that of a reasonable driver and it is irrelevant that she was especially vulnerable C The standard of care owed is that of a reasonable learner driver but the fact that she was especially vulnerable means that a higher standard will be applied D The standard of care owed is that of a reasonable driver but the fact that she was especially vulnerable means that a higher standard will be applied
The standard of care owed is that of a reasonable driver and it is irrelevant that she was especially vulnerable
Which of the following statements is incorrect in relation to the Unfair Contract Terms Act 1977? Select one: a. It regulates the use of all contractual terms in business to business contracts b. It is primarily concerned with business liability in contract and tort c. It regulates the use of non-contractual notices attempting to restrict liability for negligence d. It ensures that certain exclusion clauses are removed or held invalid in consumer contracts
UCTA 1977 regulates the use of exclusion clauses not any/all clauses in the contract therefore correct answer: it regulates the use of all contractual terms in business to business contracts
What kind of system does England and Wales operate under?
a common law system
Which one of the following statements relating to debentures is incorrect? Select one: a. Debenture stock is transferable. b. A company may not purchase its own debentures. c. A debenture holder is a creditor of the company. d. A debenture is the written document issued by a company setting out the terms of a loan.
a company may not purchase its own debentures
what is a void contract?
a contract that has been rescinded and returns the parties to their pre-contractual position
what is the doctrine of stare decisis?
a doctrine of precedent
what is a shadow director?
a person who is not appointed as a director but whose directions or instructions the company follow
what is not actionable in the case of misrepresentation?
a statement of opinion without fact
An advert is placed in a shop window offering a reward for anyone who will find and return a lost cat. This is an example of?
a unilateral contract - where a party promises to perform some action in return for a specific act, although other party is not promising to take any action
Which of the following are types of partner: i) A 'typical' partner under the Partnership Act 1890. ii) A silent partner iii) A salaried partner iv) A partner by estoppel.
all
To identify a misrepresentation there must be: i) A statement of material fact (not opinion) that induces the other party into the contract; ii) A representation that was false; iii) The innocent party believed the statement to be true; and iv) The representation induced the party into the contract
all of these characteristics
Where a term of a contract is worded broadly to cover a number of potential breaches and it is not possible to decide whether breach of the term would have important or trivial consequences that term is described as: Select one: a. A representation b. A condition c. An innominate term d. A warranty
an innominate terms
a display in a shop window will generally be held to constitute what?
an invitation to treat
A is interested in buying B's house. During the pre-contractual negotiations, B refuses to answer any of A's questions. Subsequently, B is informed that the house is infested with deathwatch beetle but fails to tell A of that fact. A thereupon buys the house but is told that it will need to be demolished within six months. Which one of the following statements most accurately summarises the position between the parties? Select one: a. A is entitled to sue B for misrepresentation as a result of B's refusal to answer any questions. b. A is entitled to sue B for misrepresentation because B's active concealment of the defect constitutes an untrue statement of fact. c. A is entitled to sue B for misrepresentation because B failed to pass on the information that he had subsequently acquired. d. A is entitled to sue B for misrepresentation because B has greater knowledge than A of the condition of his property.
as general rule there is no duty to disclose facts that if known may affect the party's decision to enter the contract and hence silence does not amount to a statement (caveat emptor - let the buyer beware) failure to pass on information of the facts is an exception - A is entitled to sue B for misrepresentation because B failed to pass on the information that he subsequently acquired
why did the claimant in donoghue v stevenson bring her action in tort instead of contract?
as the claimant had actually purchased the beer, therefore no contractual claim available to her
Where a company limited by shares transfers these at a higher value than the nominal value, what must happen to this income? Select one: a. Be transferred into a share premium account. b. Be used to write off expenses such as when debentures are issued c. Be kept by the directors for an annual distributable bonus d. Be distributed to the members as dividends
be transferred into a share premium account
What is common law?
case law made by judges
which case establishes the doctrine of promissory estoppel?
central london property trust v high trees house ltd
Which of the following is not a qualifying condition for Unfair dismissal protection? Select one: a. The claimant must have been continuously employed for at least two years. b. The claimant must have been provided with a letter stating the reason for the dismissal. c. The claimant must have been dismissed. d. The claimant must be an 'employee' according to the common law definition.
claimant must have been provided with a letter stating the reason for dismissal
An accountant has given incorrect tax advice to one of their clients. The error on the part of the accountant constituted negligence. Do they face potential liability in: A contract only? B tort only? C contract and tort? D neither contract nor tort, but in misrepresentation?
contract and tort contractual liability may arise where he gives advice in performance of a contact tortious liability may arise, even where there is no contractual or fiduciary relationship
Tony enters into a contract with Christopher to kill a rival mafia boss, Johnny. When Christopher decides not to complete his obligations under the contract, Tony wishes to enforce the contract through the courts. How will the court hold?
contract is illegal in nature and so void
when A enters a contact under the influence of alcohol and the other party is aware of this, and A subsequently wishes to avoid the contract, what is the situation with regard to state on contract?
contract is voidable as A was so intoxicated that he did not realise to what he was agreeing and the other party was aware of this
when a contract has been agreed on the basis of fraudulent misrepresentation, which remedies are available?
damages and rescission
what is mutual mistake?
defintion example: where both parties are at cross purposes as to the nature of the contract or its subject matter
what statement best describes the judicial act of distinguishing a case?
distinguishing occurs when a court indicates that the material facts of a previous case and those of the instant case are different
how is duress distinct from undue influence?
duress requires issuance of a threat
When does an Act of Parliament enter into force?
either on the commencement date stated in the statute, or where the statute is silent, upon Royal Assent
Which of the following is NOT an example of a business organisation? Select one: a. A limited company b. A sole trader. c. A limited liability partnership d. An employee.
employee
what is an example of good consideration?
exceeding an existing duty
what would cause a contact to be bought to an end?
failure of consideration not - revocation - breach of warranty - counter offer
A debenture is a document whereby the lender is promised a return of the loan under a guarantee, but the lender remains an unsecured creditor. Select one: a. False b. True
false
Acceptance by means of the post will always be valid on posting, not when it is received by the offeror.
false
As a general rule, where the offeror has not provided for any specific form that acceptance must take, silence may be a valid form of acceptance.
false
Partners are held individually responsible for debts of the business based on their share/ownership. They cannot be held responsible for the debts of other partners in an unlimited partnership.
false
Where the offeror has identified to the offeree that an offer will remain open for seven days, the offeror may not revoke the offer before this time has passed.
false
a silent partner is a person who takes an active role in the management of the business, but who remains silent at board/partners meetings?
false
partners in an unlimited partnership must adhere to the formalities as required under the limited liability partnership act 2000 before they may commence trading
false
where A offers a house for sale to B for £1000 and B accepts and informs A that he will pay £950, A may refuse. If B then provides A with the £1000, a valid acceptance has taken place which establishes an enforceable contract
false
the general duties of a director are only ever owed to the company
false - some circumstances where they may owe duty to shareholders for example
Unless provision is made expressly to the contrary, and assuming the charges listed have been correctly registered, which of the following ranks highest in priority when a company is wound-up? Select one: a.Preferential Creditors b. Unsecured creditors c. Fixed charge holder d. Floating Charge holder
fixed charge holder
Which of the following is NOT a stage in the passage of primary legislation?
fourth reading
In the Consumer Rights Act, s 11 provides: Select one: a. That goods sold by description, and where the description is relied upon by the buyer, must correspond to that description b. That the goods are fit for their intended purpose c. That the goods must be of satisfactory quality (in relation to safety, durability etc) d. That the seller possesses good title to the goods which may be passed on to the buyer
goods sold by description, and where the description is relied upon by the buyer, must correspond to that description
In relation to a private limited company and a public limited company, which of the following are correct: i) Only one shareholder is necessary and no secretary is required for a private limited company. ii) The public limited company must have an allotted share capital of £50,000. iii) The public limited company must hold an Annual General Meeting each calendar year. iv) Only the private limited company may offer its shares to the public.
i, ii, iii
If the directors exercise their powers for several different purposes at once, how will the courts determine if the proper purpose duty has been breached? If any of the purposes are improper, the duty will be breached. If the majority of purposes are improper, the duty will be breached. If the directors were aware that their exercise of the power was improper, the duty will be breached. If the dominant purpose was improper, the duty will be breached
if the dominant purpose was improper, the duty will be breached
Under the Partnership Act 1890, which of the following events may lead to a partnership being brought to an end: i) When a partner suffers some permanent form of incapacity. ii) Where a partner wilfully or persistently breaches the partnership agreement. iii) Where it is just and equitable to end the partnership. iv) Where a partner enters into competition with the partnership (with the other partners' consent).
ii, iii, iii NOT WHERE PARTNER ENTERS INTO COMPETITION WITH THE PARTNERSHIP (WITH THE OTHER PARTIES CONSENT)
In relation to the 'veil of incorporation' that is a feature of a limited company's separate legal personality, in which of the following circumstances will a court NOT lift the veil to identify the true nature of the relationship: i) Where the company has been established to commit a fraud. ii) Where the company has been established to circumvent contractual agreements. iii) In the interests of justice. iv) Where two separate legal entities are run as one economic undertaking.
iii and iv COURTS UNWILLING TO LIFT VEIL TO ASSIST IN INTERESTS OF JUSTICE AND THE FACT THAT SEPARATE LEGAL ENTITIES WERE RUN AS ONE DID NOT LIFT THE VEIL
Which of the following is NOT a feature of a limited company? Select one: a. The separate legal personality of the company. b. The limited liability of the shareholders. c. The perpetual succession of the business d. The immunity from criminal prosecutions of the directors of a company
immunity from criminal prosecutions of the directors of a company
Which of the following is not a consideration taken into account in deciding whether a product is defective under the Consumer Protection Act 1987? A. The time which the product was supplied B. What might reasonably have been expected to have been done with the product C. The manner of the marketing D. The intention of the claimant in using the product.
intention of the claimant in using the product CPA deals with strict liability so the intent of how use of product was occurring is not relevant
Which of the following is true of constructive dismissal? Select one: a. It is a product of the implied term of trust and respect (or confidence), and essentially turns breaches of that term into dismissals. b. It establishes not only a dismissal, but that the dismissal is presumptively unfair. c. It is established only by a fundamental breach of contract by the employer. d. It is established by unreasonable conduct by the employer that would make a reasonable employee decide to leave.
it is established only by a fundamental breach of contract by the employer
Which of the following is true about the status of the ACAS code? Select one: a. It sets out what employers are expected to do, and tribunals will expect employers to act accordingly unless it is reasonable to depart from the recommendations of the Code in the circumstances. b. It supports the statutory standard procedures, which set out the bare minimum requirements of procedure. c. It sets out the default procedural requirements in any employment setting, and can be varied from only by an agreement between the parties set out in the employment contract. d. It offers general guidance that is of use to employers, but has little bearing on the decisions made in tribunals, which must be based on the facts of each case.
it sets out what employers are expected to do, and tribunals will expect employers to act accordingly unless it is reasonable to depart from the recommendations of the Code in the circumstances
Which of the following statements about conduct dismissals is false? Select one: a. If the employee denies committing the misconduct, the employer must reasonably believe in the employee's guilt, based on reasonable evidence gathered through a reasonable investigation. b. An employer may dismiss two employees for an offence committed by only one person, so long as both (and no others) could have done it and the employer cannot determine which one did. c. It can be fair to dismiss a person for conduct outside the workplace, even if the conduct does not relate to work. d. It would never be reasonable to dismiss an employee for drinking too much at a party given by the employer to celebrate the employee's long service
it would never be reasonable to dismiss an employe for drinking too much at a party given by the employer to celebrate the employee's long service
what is the rule in Pepper v Hart?
judges can refer to Hansard when interpreting statutes
Who makes legislation?
legislature
A warranty may be classified as: Select one: a. Not a term but a representation b. A term that may only be identified following consideration of the consequences of the breach c. A lesser term of the contract d. The most important term of the contract
lesser term of the contract
John drives in a careless fashion down a narrow street with cars parked on each side of the road, actually knocking the wing mirrors off two of the cars. While Naomi is watching him, she trips on some tools that have been left out by council workmen laying new kerbstones and breaks her ankle. Which of the following best describes the legal position? A John is liable because his negligent driving causes her to trip B Naomi is liable because she does not look where she is going C The local authority is liable because its workers are negligent in leaving tools on the pavement D John and the local authority are both liable because they both caused her injury
local authority liable because workers negligent in leaving tools on the pavement
Natasha holds all relevant qualifications in horse and stable management. She runs a stable yard and has a team of college students to help at the yard, including transferring horses from the stables to the field and vice versa. One day, Becky, a student, went to collect a horse and was kicked in the head. She suffered serious injury. Shortly after this incident, a similar incident happened at the yard of a top showjumper. Reacting to this later incident, the Horse Society issued a direction that all yard owners should ensure that their grooms and helpers always wear suitable headgear when turning out or catching horses. After reading this, Becky's parents decide to sue Natasha for negligence. In the context of negligence: Is the Horse Society guidance relevant to the standard of care owed by Natasha? A Yes B No
no test will depend on knowledge and practice at the time of the incident the horse society additional guidance was issued post Becky's injury
in an action for negligence, does there need to be some kind of pre-existing relationship between the claimant at the time of the act complained of, although not necessarily a contractual relationship?
no, there does not need to be any relationship at all
in respect to a successful action in the tort of negligence, is it true that the claimant must have suffered personal injury?
no, there may be damage to property for example
intention to create legal relations is commonly presumed in which relationships?
not a relation between husband and wife but parties to a commercial contract husband and wife who are separated friends who are part of a lottery syndicate are all deemed as relationships which intend to create legal relations
Which of the following is not an accurate statement about the date of termination for unfair dismissal purposes? Select one: a. Where the contract is terminated by notice (whether given by the employer or employee)-the termination date is the date that the notice expires (provided the notice was of proper length; if not, termination date is the date on which the notice should have expired). b. Where the contract is terminated without notice-the termination date is the date on which the termination takes effect. c. Where a fixed-term or other limited-term contract expires without renewal-the termination date is the date on which the termination takes effect. d. Where the employee under notice gives counter-notice to terminate the employment sooner-the termination date is the date of expiry of the counter-notice.
not accurate: 'where the contract is terminated by notice (whether given by the employer or employee) - the termination date is the date that the notice expires (provided the notice was of proper length, if not, termination is the date on which the notice should have expired) - this should say whether or not the notice was of proper length!
what are the essential features of a valid simple contact?
offer, acceptance, consideration, intention to create legal relations and certainty of terms
The standard of proof in civil proceedings is:
on the balance of probabilities
fiduciary relationship?
one party places trust and confidence in the other party
Shares issued without any special rights attached to them are known as: Select one: a. Capital shares b. Ordinary shares c. Treasury shares d. Preference shares
ordinary shares
Which of the following is NOT a feature of a simple partnership? Select one: a. Joint and several liability b. Unlimited liability of the partners. c. Partnerships may only involve up to 20 persons. d. The right to participate in the management of the firm
partnerships may only involve up to 20 persons
what is rescission?
revocation, cancellation, repeal of law order or agreement
which of the following is not an external aide to statutory interpretation?
schedules
What are redeemable shares? Select one: a. Shares that carry rights in preference to other shares b. Shares kept by a company to be sold at a later date c. Shares that cannot be transferred on the stock market d. Shares which when issued carry a right by the company to buy them back.
shares which when issued carry a right by the company to buy them back
Which one of the following is NOT an accurate statement about misrepresentation? a. A misrepresentation must induce the recipient to enter into the contract. b. A misrepresentation must be about a statement of fact, not opinion. c. A misrepresentation need not be the only factor which induces the recipient to enter into the contract. d. A misrepresentation can never be constituted by silence alone.
silence cannot amount to misrepresentation, even if disclosure of the information would probably dissuade the party from entering the contract
which types of relations are presumed to intend to be legally binding and which are not?
social and domestic: not intending to be legally binding business and commercial: intention to be legally binding
in case of misrepresentation which would not be actionable? - non-disclosure of material changes between the time of agreement and the subsequent contract - a statement of opinion without fact - an answer to a question designed to mislead the other party - non-disclosure of relevant facts in a contract of good faith
statement of opinion without fact
what must consideration be?
sufficient, but not adequate
All of the following options, except one, must be shown by a claimant in order to succeed in an action for negligence. Which is the exception? A That the defendant owed them a duty of care B That the defendant was in breach of a duty of care C That the claimant suffered injury, damage or loss as a result of a breach of a duty of care D That the damage was not too remote
that the damage was not too remote whether damage was too remote is for the court to decide in assessing damages once negligence has been shown, i.e. once the claimant has proven the other three options satisfactorily
Which of the following is not a category of prima facie or potentially fair reasons for dismissal under the unfair dismissal statute? Select one: a. Some other substantial reason of a kind such as to justify the dismissal. b. That the employee has worse qualifications or capability than another employee available to do the job. c. Misconduct by the employee d. That the employee could not continue to work in that position without contravention of a legislative provision.
that the employee has worse qualifications or capability than another employee available to do the job
what may consideration be identified as?
the 'bargain' element of a contract
The duty to promote the success of the company for the benefit of its members requires the directors to have regard to a list of other factors. Which one of the following is NOT present on this list found in s 172(1)? The company's employees. The likely consequences of any decision in the long-term. The need to foster the company's business relationships with suppliers, customers and others. The company's creditors. The impact of the company's operation on the community and the environment. The need to act fairly as between members of the company.
the company's creditors
to whom can an offer be made?
the entire world
Which of the following is not a central factor in the statutory 'unfair dismissal' cause of action? Select one: a. Whether there was a prima facie or potentially fair reason. b. Whether there was a dismissal. c. The reasonableness of the employer's decision. d. The fairness of the dismissal to the employee.
the fairness of the dismissal to the employee
Which one of the following most accurately describes the duty to exercise reasonable care, skill and diligence? The duty is entirely objective. The subjective element of the duty applies to all directors. The objective element applies to all directors, whereas the subjective element only applies to directors who have some special skill or ability. The duty is entirely subjective. The subjective element of the duty serves to lower the standard expected of the director.
the objective element applies to all directors, whereas the subjective element only applies to directors who have some special skill or ability
In relation to acceptance through instantaneous forms of communication, in which of the following locations have the courts held the contract as being formed?
the place where the acceptance is received
what is the ratio decidendi of a case?
the reasons for the decision
In the event of breach of s 10 of the Consumer Rights Act 2015, which of the following remedies is NOT provided to the claimant ? Select one: a. The right to an order of specific performance b. The right to repair or replacement c. The short-term right to reject d. The right to a price reduction or the final right to reject
the right to an order of specific performance
Which one of the following statements is incorrect? The statutory minimum age of a director is 18. There is no statutory maximum age for directors. A public limited company must have at least two directors. There are no legal qualifications necessary for being a director.
the statutory minimum age of a director is 18 it is 16
what is the best description of the operation of precedent on the Supreme Court?
the supreme court is generally bound by its own previous decisions, but may depart from its previous decisions where it appears right to do so
What is NOT a recognised possible solution to problems posed by the so-called 'battle of the forms', when two contracting business organisations each claim that their terms apply?
there is no contract at all, because the parties are not in agreement, and there is no matching offer or acceptance
Michelle contacts Hannah and asks her if she would be interested in purchasing her car for £2000. Hannah immediately takes £2000 to Michelle and says she wants to buy the car. Michelle subsequently does not wish to proceed. What is the consequence of the above scenario?
there is no contract, Michelle only requested information and did not make an offer to sell
All of the following statements, except one, were established by, or relevant to, the landmark case of Donoghue v Stevenson, which involved an allegation that there had been a decomposing snail in a bottle of ginger beer? Which is the exception? A No contractual relationship is necessary to found an action for negligence B There must be a sufficient degree of proximity or neighbourhood between the parties C A manufacturer could owe a duty of care to a person who did not actually buy its goods D There should be a special relationship of some sort between the parties
there should be a special relationship of some sort between the parties
Which one of the following is NOT incompetent to contract owing to lack of capacity? Select one: a. Those over 75 b. Minors under the age of 18 (except for 'necessaries'). c. Those who are too drunk to understand the nature of the transaction. d. Those who are under a mental disability rendering them unable to appreciate the nature of the transaction.
those over 75
what is not a method of implying terms into a contract?
through contradicting an express term
Which one of the following is not a right of a shareholder? Select one: a. To receive a dividend declared by the company b. To attend and vote a meetings c. To receive the company's accounts d. To manage company affairs
to manage companies affairs
Which one of the following is NOT a general duty? To act to promote the success of the company for the benefit of its members. To obtain shareholder approval for substantial property transactions. To avoid conflicts of interest. To act in accordance with the company's constitution. To exercise reasonable care, skill and diligence. To exercise independent judgment. To not accept bribes from third parties. To declare interest in proposed transactions or arrangements.
to obtain shareholder approval for substantial property transactions
A preference shareholder's main benefit over ordinary shares is in the right to a fixed dividend ahead of any dividend payment made to any other class of shares. Select one: True False
true
A public limited company is entitled to offer its shares and debentures for sale to the public and it may be listed on the London Stock Market (although due to the rules in which companies may be listed this is only applicable to the largest organizations). A private company is prohibited from offering its shares to the public.
true
Partners are considered agents of the organization under s. 5 of the Partnership Act 1890 for the purpose of the partnership's business.
true
The 'limited' status of a limited liability company refers to the restricted liability (contributions to be made) of the members of the company for its debts. The company itself has unlimited liability.
true
The company's directors recommend a dividend and the amount is contained in the directors' report. It is declared at a general meeting (for a public company). Only public companies have to hold a meeting to declare a dividend. Select one: a. False b. True
true
The names of the partners must be shown on the letterheads (and when a business name is used which is different from the true surnames of the partners). This is a requirement identified in the Companies Act 2006.
true
When using instantaneous forms of communication, acceptance is effective when received, not when sent.
true
a void contract has no legal effect and does not place obligations on the parties to the agreement
true
case of Butler v Ex-Cell-O identified the first/last shot approach adopted by the courts in determining the operative contract where both parties have used their own standard form contracts in the negotiation?
true
the veil of incorporation separating the company from its members may be lifted by the courts where the company's formation was, for example, to evade a contractual restriction
true
what is duress?
violence, threats, constraints or other action that is used to coerce someone into doing something against their will or better judgement
Where the post is a valid means of acceptance, at what point will the offeree have been held to have accepted the offer?
when the letter of acceptance has been correctly addressed, its postage paid, and posted
when is revocation of an offer effective?
when: it is posted it is the intention of the offeror to revoke
Which of the following situations does not amount to a dismissal for unfair dismissal purposes? Select one: a. Where a limited-term contract expires or otherwise terminates without being renewed. b. Where the contract specifies that commission of a certain kind of misconduct will constitute a self-dismissal, and the employee commits that misconduct. c. Where the employee terminates the contract, with or without notice, in circumstances such that he or she is entitled to terminate it without notice by reason of the employer's conduct. d. Where the contract is terminated by the employer either with or without notice
where the contract specifies that commission of a certain kind of misconduct will constitute a self dismissal, and the employee commits that misconduct - self-dismissals are ineffective and in any event are not one of three forms of dismissal listed in statute
Bristol aeroplane specific, not an exception to the rule?
where the defendant's liability is at stake
Regarding the duty to promote the success of the company: Which one of the following statements is true? The directors are required to give equal weight to the interests of the company, its shareholders, its employees and any other relevant interests. Where the interests of the company and its shareholders conflict, preference should be given to the interests of the company. The interests of the company are always the same as the interests of its shareholders. The duty to promote the success of the company is objective, meaning that what the directors actually believed is irrelevant.
where the interests of the company and its shareholders conflict, preference should be given to the interests of the company
Which of the following is irrelevant in determining whether a duty of care exists? A Whether it is fair that the law should impose a duty on the defendant B Whether the defendant intended to cause injury to the claimant C Whether it was reasonably foreseeable that the claimant might suffer damage as a result of the defendant's actions D Whether there is sufficient proximity between the parties
whether the defendant intended to cause injury to the claimant
Under the Unfair Contract Terms Act 1977, the reasonableness of an exclusion clause is NOT assessed by: Select one: a. The party's reasonable knowledge of the existence of the exclusion clause b. Whether the term was a bad bargain for the party c. Whether the party has received an inducement to contract d. The strength of the bargaining position of the parties
whether the term was a bad bargain for the party
When a charge is applied to a company's asset, within which time period must this charge be registered with the Registrar of Companies? Select one: a. Within 2 months of its creation b. Within 14 days of its creation. c. Within 21 days of its creation d. Within 28 days of its creation.
within 21 says of its creation
which of the following is the best description of the 'golden rule' in statutory interpretation?
words must be given their plain, ordinary meaning unless to do so would produce an absurd result
does the court need to be satisfied that public policy would allow a duty of care to exist?
yes question of public policy is one of several tests applied, but if public policy dictates that no duty should exist then none shall exist
Usman is in Nottingham for the first time and decides to leave his bag containing his £300 camera at Train Ltd's left luggage lockers for the day. He places his bag in the locker and after inserting the £10 fee, the door locks and a ticket is issued. The ticket states that Train Ltd are not liable for any loss, damage or theft to items valued over £100 left in lockers. Usman's locker is broken into by Max and his camera is stolen. Can Usman claim £300 from Train Ltd? Select one: a. No, because his camera has been stolen by someone other than Train Ltd. b. Yes, because the exemption clause was dispensed after the contract was made. c. No, because the exemption clause states the limit is £100 d. Yes, because the exemption clauses are only valid if they are signed.
yes, because exemption clause dispenses after the contract was made
Ashley is a director of Horizon plc. While acting for the company, he becomes aware of a business opportunity that the company is unable to exploit. He takes advantage of this opportunity himself and makes a considerable profit. Can Ashley keep the profit made? Yes, providing that the articles allow the directors to authorize the transaction, and they do so prior to Ashley entering into it. No. Directors are never allowed to keep profits made from such transactions. Yes, providing that the other directors gave prior authorization to Ashley entering into the transaction. Yes, providing that Ashley obtains the consent of the company in general meeting.
yes, providing the articles allow the directors to authorise the transaction, and they do so prior to Ashley entering into it