BUSINESS LAW
Unit short code : BUSLAW
REFERRAL CW2 , JULY 2012
Answer ALL questions in Section A and section B
Section A
Answer ALL questions in this section
There is NO penalty for guessing
Question 1
From the list below identify which three terms accurately describe
the Companies Act 2006?
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
It is an Act of Parliament
It is a Bill
It is primary legislation
It is secondary legislation
It is a case
It is a statute
It is a bye-law
It is delegated legislation
(6 marks)
Question 2 Byrne v Van Tienhoven (1880) creates the legal principle that
effective revocation of an offer occurs when it is ……..
A
B
C
D
Posted by the offeror
Received by the offeree
Delivered by the postman
None of the above, offers cannot be revoked
(2 Marks)
Question 3 What is the effect of contributory negligence by the claimant
on his claim for damages for his loss or injury? Choose one
answer
a)
b)
c)
d)
It terminates the defendant’s liability.
It terminates the defendant’s liability unless the claimant’s
action was foreseeable by the defendant.
It shifts the burden of proving negligence from the claimant to the
defendant.
It has no effect on liability for negligence but it reduces the
amount of damages awarded to the claimant.
(2 Marks)
Question 4 S.6(2) Unfair Contract Terms Act 1977 provides that no contract
term in a consumer contract for the sale of goods can exclude
liability for a breach of S.13 & S.14 of the Sale of Goods Act 1979
A
B
True
False
(2 Marks)
Question 5 Terms of a contract can be classified as:A
B
C
D
warranties, representations and exclusion clauses
warranties, conditions and innominate terms
conditions, representations and innominate terms
Innominate terms, warranties and representations
(2 Marks)
Question 6 From the list below identify which term accurately describes what
type of steps a claimant who has suffered injury on account of the
tort of negligence must take to mitigate their loss
A
B
C
D
possible
reasonable
expected
contemplatable
(2 Marks)
Question 7 The law of unfair dismissal is set out in
A
B
C
The Rights of Employment Act 1995
The Employment Act 1996
The Employment Rights Act 1996
(2 Marks)
Question 8 The procedure by which a company is registered is also known as
A
B
C
D
Birth
Instigation
Incorporation
Creation
(2 Marks)
Question 9 Company names may need to be approved by whom?
A
B
C
The Prime Minister
Head of the Stock Exchange
Secretary of State
(2 Marks)
Question 10 The doctrine by which a company has its own legal status is
known as…….
A
B
C
Corporate personality
Trading status
Limited liability
(2 Marks)
Question 11 A partnership must have a written partnership agreement before it
can commence business
A
B
True
False
(2 Marks)
Question 12 What type of resolution is required to remove a director from
office?
A
Extraordinary resolution
B
Ordinary resolution
C
Special resolution
D
Normal resolution
(2 Marks)
Question 13 Ordinary and preference are two types of shares. Usually
ordinary shareholders are entitled to receive a dividend from the
company’s profits ……………. any preference shareholder has
received their dividend
A
B
Before
After
(2 Marks)
Section B
Answer ALL questions in this section
Question 14 Explain what are the 3 essential elements a claimant needs to
prove in order to be successful in an action for negligence?
(6 Marks)
Question 15 Charles sees Ann struggling to change a tyre on her car. He
offers to complete the task for her. When he has finished Ann
says ‘I don’t have any cash on me at the moment but leave me
your details and I’ll send you £50 for your trouble’. A month has
past and Charles still has not received the £50.
Is there a contract between Charles and Ann? Advise Charles
what rights, if any, he may have in contract law.
(6 Marks)
Question 16 Mary Porter is the promoter of Hollywood Fashions Limited.
Before the company is incorporated she enters into a contract
with a jeans manufacturer to supply her company with 1000 pairs
of jeans. The contract states Mary’s personal liability is excluded
and is signed by Mary ‘for and on behalf of Hollywood Fashions
Limited’.
Sometime later after the certificate of incorporation is issued the
jeans are delivered but when they are unpacked Mary
discovers they all have broken zips.
(i)
(ii)
The manufacturer does not receive payment for the jeans,
who can he sue for payment?
Who can sue the manufacturer for these faulty jeans?
(10 Marks)
Question 17. In relation to a limited company explain what is meant by
each of the following phrases:
(i)
(ii)
(iii)
(iv)
Limited liability
Perpetual succession
Veil of incorporation
Floating charge
(16 Marks)
Question 18 The partnership deed of a firm of builders says that goods can
only be bought for the firm if all of the partners agree. Dave,
one of the partners, orders a new bulldozer without the knowledge
or agreement of his fellow partners, telling the supplier it is for the
firm.
Advise the other partners as to whether or not they will be bound
by the contract to purchase the bulldozer
(10 Marks)
Question 19 Outline the 7 general duties a director owes to the
company.
(14 Marks)
Question 20 What needs to be provided to the Registrar of Companies to
register a new private limited company under the Companies Act
2006
(8 Marks)