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SCHOOL OF ARTS, SOCIAL SCIENCES AND MANAGEMENT
DIVISION OF BUSINESS, ENTERPRISE AND MANAGEMENT
LEVEL 2 DIET 2
MODULE CODE: B
MODULE TITLE:Business Law
Section A
Multiple Choice Test Paper 2014
MATRICULATION NUMBER:………………………..............
DEGREE PROGRAMME:………………………………………
YEAR ……………
Instructions – please read before commencing your answers
Please make sure you have filled out your matriculation number above. You should attempt all questions. Select only one answer per question. Indicate your answer by circling in ink only the number of the choice you believe to be correct. Where you have indicated an answer but wish to change it, you must clearly cross out your first choice and circle your preferred choice. Where more than one answer is circled without crossing out, a zero mark will be given for that question. Question papers must not be removed from the examination hall. Removing your question paper from the exam hall will result in an automatic zero mark. Each question is worth 1 mark – total for Section A is 15 marks. You must also complete 3 questions from Section B in the answer booklet provided. Each question in Section B is worth 15 marks. Total for Section B is 45 marks.
Which of the following is not required in all legally binding contracts?
a) Capacity to enter a contract b) Consensus in idem c) Contract to be in writing d) Intention to be legally bound
QUESTION 2
Which one of the following statements is false?
a) Gambling contracts are enforceable by the courts b) A limited company has legal capacity to enter a contract c) Acceptance of a contract can be communicated by one of the parties’ actions d) A legally enforceable contract can never be made via the internet
QUESTION 3
Joan advertises “Guitar for sale £100 or near offer”. Sarah emails Joan and says she will pay her £80. Joan emails back saying she would be willing to accept £90. 24 hours later Joan has not heard back from Sarah so she agrees to sell the guitar to Adam for £85. An hour later she receives a message from Sarah saying she would buy the guitar for £90. Which of the following statements are correct?
- Joan has a valid contract with Sarah to sell the guitar to her for £
- Joan has a valid contract with Adam to sell the guitar to him for £
- Joan’s offer to sell the guitar to Sarah for £90 is a legal binding promise
- Joan’s offer to sell the guitar to Sarah for £90 is a counteroffer
Answer a) 1 and 4 b) 2 and 3 c) 2 and 4 d) 3 and 4
A clothes shop has priced a jacket at £25. The price ticket is incorrect and should be £35. Kim takes the jacket to the till and when the price is scanned the price comes up at £35. The shop refuses to sell the jacket for £25 and insist that she pays £35. Which of the following statements is correct?
- The price ticket stating £25 is an offer
- Kim makes an offer of £25 to buy the jacket
- The shop must sell Kim the jacket for £25 as she saw the lower price ticket
- The shop makes a counteroffer of £35.
Answer a) 1 and 3 b) 2 and 4 c) 2 only d) 3 only
QUESTION 8
Which of the following is required to establish a legal claim for fraudulent misrepresentation?
- False statement of opinion
- False statement of fact
- Reliance on the information given
- The person making the statement knows that the statement is false or is reckless when making the statement
Answer a) All of them b) 1, 3 and 4 c) 2, 3 and 4 d) 2 and 3
QUESTION 9
A contract which is so fundamentally flawed that it is not binding on either party is known as which of the following
a) Void contract b) Voidable contract c) Unenforceable contract d) A breach of contract
The name of a business can tell you its legal status. The accountancy firm of ‘Brennan, Blair and Gill’ is:
a) A public limited company b) A private limited company c) A sole trader d) A partnership
QUESTION 11
Agency: Which of the following statements are true?
- An agency contract always has to be in writing
- An agent must always act in good faith 3) An agent in emergency situations is known as a jus quaesitum tertio
- An agency contract will set out the agent’s ostensible authority
QUESTION 12
You pay for you and your friend to go to the theatre. Your friend is injured due to the fact that part of the ceiling collapses whilst they are watching the play. Which one of the following statements is incorrect?
a) Your friend is a primary victim b) The theatre has a duty of care to your friend c) The principle of res ipsa loquitur probably applies d) Your friend can sue the theatre in contract law
QUESTION 13
In Sayers v Harlow Urban District Council a woman found herself trapped inside a toilet cubicle that had no door handle. Which of the following statements are true relating to this case?
- The Council was not held liable.
- The Council was held vicariously liable
- The plaintiff succeeded in her claim using res ipsa loquitur
SPARE IF WANT TO SWAP ANY
Which one of the following statements is true?
a) The courts do not allow claims for psychiatric injury b) Liability in contract is strict whilst liability in the law of negligence is based on fault c) Vicarious liability means that an employer is liable for all acts of their employees d) Causation is not relevant in deciding whether a party is liable in negligence
END OF SECTION A
YOU MUST ALSO COMPLETE THREE QUESTIONS IN SECTION B
