Choose the Correct Answer

Question 1

Formal contracts have the following characteristics:

a requirement of consideration;

less time than simple contracts to begin legal action;

a doctrine which prevents a party to the deed challenging the correctness of the facts in the formal contract;

a standard form available from the post office.

Question 2

Which of the following is the most likely example of an agreement effected by unconscionable conduct?

Ravi said to Farouk 'Buy my car or I will burn down your house'.

Farouk agrees to buy the car.Ravi needs a loan. He approaches Big Bank Pty Ltd. The bank gives a loan to Ravi even though the bank knows that he does not fully understand the agreement because of his age and literacy deficiencies.

Ravi is a doctor. Farouk is a patient. Ravi said to Farouk 'My car is for sale. I'll sell it to you cheaply because you are my patient. Give me $5000 for it'. Farouk agrees

None of these answers are examples of unconscionable conduct.

Question 3

A contract can be discharged when:

one party is feeling frustrated with the contract;

there is a non-material alteration to the contract;

all parties to the contract have fulfilled their obligations;

all of these

Question 4

In which of the following situations would an agency arrangement NOT exist:

John regularly attends car auctions. This weekend he cannot attend. He says to his neighbour 'I can't make it this weekend. Could you go to the auction this weekend for me and bid on any cars you think I would like'.

John regularly attends car auctions. This weekend he cannot attend. He says to his neighbour 'I can't make it this weekend. Could you go to the auction this weekend for me and bid on any cars you think I would like'. The two then write down their agreement.

John regularly attends car auctions. This weekend he cannot attend. He says to his neighbour 'I can't make it this weekend. Could you go to the auction this weekend for me and bid on a 1987 Holden Commodore that will be auctioned as Lot number 46'.

John regularly attends car auctions. This weekend he cannot attend. He says to his neighbour 'You should go to the auction this weekend. I expect there to be some amazing bargains'.

Question 5

Which of the following is NOT an essential element in determining whether a partnership relationship exists?

The members formally record their intentions in writing;

The members are engaged in business;

The members are engaged in common activities;

The members have a view to making a profit.

Question 6

What does separation of powers mean in Australia?

The powers in the Australian Constitution that refer to the fact that some powers in the Australian Constitution are exclusively given to the Commonwealth by s52.

The division of power refers to power divided between the central (Commonwealth or Federal) and local (State and Territory) bodies in a federal system.

The manner in which control is divided between the legislature, executive and judiciary.

Most Acts of Parliament delegate legislative power to various officers of the executive via subordinate legislation.

Question 7

Thainan runs a high-end leather goods manufacturing business. Noah is a wholesaler. Noah sells a consignment of leather goods to To. In every shipment of their leather goods, Thainan's company includes a note that stipulates the retail prices of the leather goods. To sells the leather goods below those nominated prices. Thainan brings an action against To for selling the leather goods below the nominated prices.

Which of the following is the most likely description of a stranger's liability under a contract?

Liability cannot be imposed on a stranger to a contract (with some exceptions).

Rights and liabilities can be imposed on some strangers.

Liability can only be imposed on a stranger when the stranger is a family member.

The terms of the contract will limit a stranger's liability under a contract.

Question 8

Negligence requires the following feature:

a contractual relationship between the parties;

evidence of fraud;

a duty of care;

statutory permission.

Question 9

Section 18 of the Australian Consumer Law prohibits:

misleading or deceptive conduct by a person in trade or commerce;

misleading or deceptive conduct by a corporation in trade or commerce;

misleading or deceptive conduct, or conduct that is likely to mislead or deceive, by a person in trade or commerce;

misleading or deceptive conduct, or conduct that is likely to mislead or deceive, by a corporation in trade or commerce.

Question 10

Torts covers such matters as:

all of these

personal injury;

attacks on a person's reputation;

property damage.