1.A court will interpret a disclaimer in a contract between a business and a consumer contra 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.

(1mark)

2.Which of the following statements about companies is not correct?

(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.

(1mark)

3.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

(1mark)

4.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.

(1 mark)