1.A court will interpret a disclaimer in a contract between a business and a consumercontra proferentem. This means:

(a)Against the interests of the business seeking to rely upon it.

(b)In favour of the interests of the third party seeking to rely upon it.

(c)In a way that makes it more likely that the disclaimer will apply to the apparent breach.

(d)In a way that ensures that the business is protected in all circumstances.

2.In courts within a common law legal system, dispute resolution is carried out in accordance with:

(a)The inquisitorial system.

(b)The adversarial system.

(c)Trial by combat.

(d)Alternative dispute resolution.

3.Consideration for a promise will be sufficient to establish a binding agreement where:

(a)The price paid by the promisee is a vague promise to do something or refrain from doing something.

(b)The price paid for the promise was paid before the promise was made.

(c)The price paid has some legal value even if it is not a fair or adequate price.

(d)The price paid by the promisee was the fulfilment of a prior legal obligation, that is, the performance of something the promisee was already legally obliged to do.

4.Which of the following statements about companies isnotcorrect?

(a)A company is a separate legal entity from its owners.

(b)When a limited liability company is unable to pay its debts, the owners must pay them.

(c)A company can own property.

(d)A company is established by registration.

5.The authority for the proposition that a party is bound by exclusion clauses that they sign is:

(a)White v John Warwick

(b)De Lasalle v Guildford

(c)Olley v Marlborough Court

(d)L'Estrange v Graucob

6.Joanne wishes to form a partnership with her friend Paul. They intend to run a used computer shop together. Which of the following elements must be present in order to establish the partnership?

(a)They must both be good at repairing computers.

(b)They must both intend to make a profit.

(c)They must share the profits equally between them.

(d)They must register the partnership with ASIC.

7.The relevant contract inTaylor v Johnsonwas avoided for:

(a)Duress.

(b)Unconscionability.

(c)Misrepresentation.

(d)Mistake.

8.Which of the following isnota type of mistake that will make a contract unenforceable?

(a)Unilateral mistake by one party that the other party knows of and takes advantage of.

(b)Common mistake by both parties.

(c)Mutual mistake by both parties.

(d)A mistake as to the market value of the property that is the subject of the contract.

9.Which of the following isincorrect?

(a)Exclusion clauses are terms in an agreement that attempt to limit or negate the liability of one of the parties to the contract if they are in breach.

(b)An exclusion clause must be a warranty of the contract.

(c)If the exclusion clause is contained in asigneddocument, the plaintiff will be bound by the clause unless it can be proven that the contents of the document were misrepresented to the plaintiff or the document appeared to be non-contractual.

(d)If the exclusion clauses are contained inunsigneddocuments such as receipts and tickets the courts are likely to decide that the ticket or receipt is not a contractual document and therefore the terms it contains have no contractual effect.

10.Ben and May agree that if May paints Ben's house, Ben will give Jack (May's son) a car. Which of the following is correct?

(a)In general, Jack cannot sue Ben for the car.

(b)Jack cannot sue Ben unless May dies.

(c)There is no consideration for Ben's promise.

(d)Jack can enforce Ben's promise of a car.