ONE correct answer to be chosen from a) to d) for each question

1.Which part of the judgment establishes the precedent that is to be followed by lower courts?

a)The Ratio Decidendi

b)The Obiter Dicta

c)The section of the judgment entitled 'Precedent'

d)The facts that are identified as binding by the judge

2.Which of the following are sources of the constitution of the United Kingdom:

i)Treaties;

ii)Conventions and customs;

iii)Case law / common law;

iv)Prerogative powers.

a)i and iii

b)i, ii and iii

c)ii, iii, and iv

d)All of the above

3.Aruna gave police information about a jewel thief on Monday. On Tuesday she learned that the owner had offered a reward of 500 to anyone who gave information leading to the arrest and successful prosecution of the thief. Following the successful prosecution, is the owner contractually obliged to pay Aruna the reward?

a)No, because a party cannot accept an offer of which they have no knowledge

b)Yes as there was a unilateral contract

c)Yes as there was a bilateral contract

d)No, as a promise to pay reward money is seen as a gambling contract

4.Paul has a bakery and contracts with Sainsberrys Ltd for a regular supply of bread, pies and cakes. It was agreed that Paul would be liable to pay

1,000 in respect of every mistake or error on the order. Which of the following defines the contractual provision?

a)An unliquidated damages clause

b)A liquidated damages clause

c)An exclusion clause

d)A penalty clause

5.Rohan leads an expedition to the Arctic Circle, where his team get stuck. Fortunately, they stumble across another expedition, which agrees to tow them back to safety in return for the rest of their provisions. Halfway towards safety, the rescuers demand that Rohan's team also give up their fur jackets and other equipment once they are safe or else they will be abandoned immediately. Rohan reluctantly agrees, but then refuses to hand over the furs and equipment when safe. Are the rescuers contractually entitled to the furs and equipment?

a)Yes, because public policy dictates that rescuers should be able to negotiate for extra benefits from the people they rescue.

b)No, because they did not provide any consideration for Rohan' promise to give them furs and equipment.

c)Yes, because they provided a practical benefit to Rohan' team by taking them to safety.

d)No, because Rohan did not provide any consideration for his promise to give the furs and equipment.

6.Subsidiary Ltd entered into a contract to purchase goods from Parent plc. The contract contained a clause restricting the potential liability of Parent plc in the event of the goods supplied not being of satisfactory quality. Assuming Parent plc supplies unsatisfactory goods, can it rely on the exclusion clause?

a)Yes, if the clause restricting liability is reasonable applying the test set out in the Unfair Contract Terms Act (UCTA) 1977

b)No, because Subsidiary Ltd is the weaker party

c)No, because Parent plc is a public company and as such cannot rely on an exemption clause

d)Yes, even if the clause is unreasonable because the UCTA 1977 does not apply to business-to-business transactions

7.In torts law, what is meant by the 'Eggshell Skull' principle?

a)The injury or damage caused to the claimant must be reasonably foreseeable

b)If a claimant has a particular susceptibility or weakness and suffers a greater injury than a "normal" person, the defendant will be liable for injuries that the normal would have suffer

c)The defendant is not liable for any damage caused to the claimant because the claimant had a weak skull

d)If a claimant has a particular susceptibility or weakness and suffers a greater injury than a normal person would have, the defendant will be liable to the full extent of that claimant's injuries.

8.Marcus was a shareholder in Star plc. When he read the annual accounts, he sold his entire shareholding because the accounts revealed a loss and the projections were not favourable. It later became clear that the accounts had been prepared negligently and, in fact, the company was in an extremely healthy financial state. Marcus sued the firm of accountants that prepared the accounts, Diddy & Co. There was no disclaimer of liability in the accounts. Is Diddy & Co liable to Marcus in negligence?

a)Diddy & Co is liable because it owed a duty of care to all existing shareholders

b)Diddy & Co is liable because Marcus's losses were incurred as a direct result of reading the accounts

c)Diddy & Co is not liable because it did not owe a duty of care to existing shareholders considering their investments

d)Diddy & Co is not liable because investors in the stock market do so at their own risk

9.Which of the following does not belong?

To establish negligence, a claimant must prove that:

a)The defendant owed a duty of care to the claimant;

b)The defendant breached that duty of care by failing to conform to the required standard of conduct;

c)The defendant's conduct was reasonably foreseeable;

d)The defendant's breach of duty caused the harm, injury or damage to the claimant.

10.What is the difference between the Occupiers Liability Act 1984 and the 1957 Act?

a)The 1957 Act imposes a duty of care only towards lawful visitors; the 1984 Act extends this to trespassers

b)The 1957 Act imposes a duty of care only towards children; the 1984 Act extends this to adults

c)The 1957 Act imposes a duty of care only towards trespassers; the 1984 Act extends this to lawful visitors

d)The 1957 Act imposes a duty of care only towards adults; the 1984 Act extends this to children

11.Katherine and Benjamin set up in business together in order to design and manufacture memorabilia for a major sporting event. Katherine is the driving force behind the venture and so Benjamin agrees that she should receive 60% of the profits. In fact, they make a loss. They call their business Kath & Co. Is their business a partnership?

a)Yes, it is a partnership relationship

b)No, the name of the business denotes a company

c)No, the business is not profitable

d)No, the business is only for a single venture

12.Zac was a skilled worker in metal work and operated as a sole trader making bridles, saddles and other leather goods. He was advised by his solicitor to incorporate his business as a private limited company. He took this advice, buying 98 of the 100 shares in Metalogic Ltd. The company's liabilities quickly exceeded its assets and the company became insolvent, owing 87,000. Is Zac liable to indemnify Metalogic Ltd against its debts?

a)Yes, the veil of incorporation will be lifted to reveal the company as a sham

b)Yes, in practice there is no difference between Zac as sole trader of the business and Zac as 98% shareholder in the business

c)No, the debts belong to the company alone

d)No, the company's liability is limited and therefore the members' liability is also limited

13.Which of the following terms describes someone who acts as a director of a company but who has not been formally appointed as such?

a)An alternative director

b)A de facto director

c)A shadow director

d)A non-executive director

14.An organisation has: assets which belong to the organisation; it is empowered to issue floating charges over its assets; a change in membership does not alter its existence; finally, its members cannot transfer their interests to others. Which of the following organisational structures best describes it?

a)A private limited company

b)A limited liability partnership

c)A general partnership

d)A private limited partnership

15.Parkside Ltd proposes to offer shares to existing members in accordance with their statutory rights of pre-emption under the Companies Act 2006. What is the time period during which the offer of shares may be accepted?

a)7 days

b)14 days

c)21 days

d)28 days

16.Prince owns a boat yard and is appointed to sell Richard's yacht for him. In carrying out this task, Prince buys a half page of advertising in Yachts' Monthly at a cost of 400. Richard did not tell him to advertise in magazines and had rather expected that Prince would simply sell it to one of his regular customers, although the matter had never been discussed. Richard refuses to pay the bill for the advertisement when it is forwarded by Prince. Which of the following best describes the legal position?

a)Richard is liable to pay the bill because he gave Prince express authority to sell

b)Richard is liable to pay because Prince had implied incidental authority

c)Richard is not bound to pay because Prince did not have the authority through necessity

d)Richard is not bound to pay because such authority cannot be implied without further evidence

17.Louise is employed by Greg in his restaurant. Greg deducts tax and national insurance from her monthly salary. She is entitled to paid sick leave of up to 10 weeks per year. She is given at least 48 hours' notice of when she is required to work and Greg is required to ask Louise to work before offering the work to the other non-permanent staff. Louise wears a uniform provided by Greg, bearing the name of the restaurant.

Which of the following best describes the employment status of Louise?

a)She is an employee because she is paid after deductions for tax and national insurance

b)She is an independent contractor because she works for Greg on an as- and-when-required basis

c)She is an employee because she wears a uniform supplied by Greg and is entitled to sick leave

d)She is an independent contractor because she is free to work for other employers when she is not working for Greg

18.Which of the following best describes what is referred to as 'mutuality of obligations'?

a)It is the duty of trust and confidence owed by both the employer and the employee to each other

b)It is the obligation of the employer to provide work and the obligation on the employee to perform the work provided

c)It is the mutual obligations of both the employer and the employee to work to promote the success of the business

d)It is the obligation of the employee to obey reasonable instructions and the obligation of the employer to issue only instructions that are reasonable

19.Under the Employment Rights Act 1996, lack of capability on the part of the employee is a potentially fair reason for dismissal which can be put forward by an employer, subject to the requirement that the employer must have acted reasonably in the circumstances. Which of the following is not protected by the statutory provisions regulating unfair dismissal on the grounds of lack of capability?

a)A part-time employee who has worked for Tastyfood's Ltd for three years

b)A full-time employee who has worked for Hotfood's Ltd for six months and then Tastyfood's Ltd for eight months after Hotfood's business was transferred to Tastyfoods Ltd

c)A full-time employee whose contract of employment requires them to work for Tastyfood's Ltd's sister company in France

d)An employee who has worked for Tastyfood's Ltd for three years but during that time spent six months in the armed services

20.What is the annual turnover threshold for the Modern Slavery Act 2015 section 54 - to require a business to produce a modern slavery statement?

a)15 million

b)25 million

c)36 million

d)45 million