Business Law Judicial Precedent Advantage

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					PRIFYSGOL ABERTAWE : SWANSEA UNIVERSITY


DEGREE EXAMINATIONS: MAY/JUNE 2009


FACULTIES OF ARTS & HUMANITIES;                    BUSINESS,      ECONOMICS        &   LAW;
ENGINEERING AND SCIENCE


SCHOOL OF BUSINESS AND ECONOMICS


EBL 121: INTRODUCTION TO LAW

Time allowed: 2 hours

Answer all questions

There are 100 questions in this test. Each correct answer counts for 1% of your
mark.
1. Use a blue or black biro.
2. Fill in your surname, initials, and other details in the box on the upper left hand corner
    of the machine-readable grid.
3. IMPORTANT: fill-in your student number in the upper right corner of the answer form
    and remember to place a cross in the appropriate boxes so that the computer can
    identify you. Please note that box numbers start from 0.
4. For each question that you answer, locate the corresponding question number. Then
    find the letter (A, B, C, or D) that matches your answer.
5. Place a cross in the chosen machine-readable box (remember that the machine is not
    able to read very light marks).
6. If you need to change your answer, you must cancel out your initial choice by
    completely filling in the associated box using your pen. The new answer must then be
    clearly marked with a cross. If there is any ambiguity about the chosen answer, it will
    be awarded a zero mark.

Answers are scored as follows: correct answer = +1, incorrect answer = -0.25,
no answer = 0

Dictionaries: Candidates may only refer to the English and Welsh language dictionaries
available at the examination venue.
Calculators: Calculators may not be used

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                                             1
1.   Which one of the following statements is correct?

     (a)    The function of criminal law is to regulate the actions of society
     (b)    Contract law is a branch of public law and regulates business activity
     (c)    Constitutional law is an example of private law
     (d)    Private law is concerned with all areas of law other than criminal law



2.    Which one of the following is correct?

     (a)    An action in the criminal courts must be proven on a balance of probabilities
     (b)    One of the aims of criminal law is to punish the offender
     (c)    The case of Woolmington v DPP (1935) confirmed that it is the duty of the
            accused to produce evidence to establish his innocence
     (d)    In a criminal case the action is commenced by the claimant



3.   Which one of the following statements is incorrect?

     (a)    The procedure in common law is based on the inquisitional system
     (b)    Common law evolved from rules of custom
     (c)    Common law is also known as judge made law
     (d)    Many countries have adopted the common law system including the USA,
            Canada and Australia



4.    Which one of the following statements is incorrect?

     (a)    The aim of the criminal law is to punish the offender and deter others from
            committing offences
     (b)    A person who wishes to take action against another for compensation under
            the civil law will take prosecution proceedings
     (c)    Parties to a civil action are known as the claimant (or plaintiff) and the
            defendant
     (d)    Compensation is the most common remedy in a civil action.



5.   Which one of the following statements is incorrect?

     (a)    An equitable remedy is awarded at the discretion of the court
     (b)    Specific performance and injunction are examples of equitable remedies
     (c)    If there is a conflict between common law and equity then common law must
            prevail
     (d)    Damages are a common law remedy




                                            2
6.    Which one of the following statements is incorrect?

      (a)    Criminal law involves offences against individuals but the action is taken in
             the name of the State
      (b)    The standard of proof in a criminal action is “beyond reasonable doubt”
      (c)    The parties to a criminal case are called the claimant and defendant
      (d)    The Crown Court is an example of a criminal court



7.    Which one of the following statements is correct?

      (a)    Equity is a branch of law developed in the Scottish courts
      (b)    “He who comes to equity must come with clean hands” is an example of an
             equitable maxim
      (c)    Equitable remedies only apply to cases involving property disputes
      (d)    Common law and equity have separate courts



8.    Which one of the following statements is incorrect?

      (a)    The Human Rights Act was passed in 1998
      (b)    The European Convention of Human Rights was passed in 1950
      (c)    If there is a conflict between the Human Rights convention and UK domestic
             law then the courts can follow the convention
      (d)    The convention of Human Rights includes a right to life, but not a right to die



9.    Which one of the following statements is incorrect?

      (a)    The Magistrates Court can be staffed by legally and non-legally qualified
             personnel
      (b)    All criminal cases start off in the Magistrates Court
      (c)    The Magistrates Courts jurisdiction is limited to criminal cases
      (d)    The Magistrates Court is the lowest court in the criminal court hierarchy



10.   Which one of the following statements is correct?

      (a)    All indictable offences must be tried in the Crown Court
      (b)    Summary offences can only be heard in the Magistrates Court
      (c)    Committal proceedings are held in the Crown Court
      (d)    The Magistrates have unlimited powers of sentencing




                                             3
11.   Which one of the following statements is correct?

      (a)    Magistrates sit as a panel of at least five members
      (b)    The Legal Adviser advises Magistrates on the value of the evidence
      (c)    Magistrates get limited training
      (d)    Magistrates must be over 50 years of age



12.   Which one of the following statements is correct?

      (a)    Appeals from the Magistrates must go directly to the Court of Appeal
      (b)    The Crown Court hears some appeals from the Magistrates Court
      (c)    An appeal from the Magistrates Court on the grounds that the sentence is too
             harsh goes to the Divisional Court of Queens Bench Division of the High
             Court
      (d)    An appeal from the Magistrates Court must go directly to the High Court



13.   Which one of the following statements is incorrect?

      (a)    Once the defendant has given his evidence he can be cross
             examined by the prosecution
      (b)    A plea of no case to answer can be submitted by the defendant after the
             prosecution have presented their case
      (c)    At the end of the prosecution case the defendant presents his evidence
      (d)    A plea of mitigation is given on behalf of the defendant before the Magistrates
             give their verdict



14.   Which one of the following statements is incorrect?

      (a)    The “leapfrog procedure” is where an appeal goes from the High Court to the
             Court of Appeal
      (b)    The House of Lords is the final Court of Appeal
      (c)    The House of Lords hears criminal and civil cases
      (d)    The Court of Appeal has a civil and criminal division



15.   Which one of the following statements is correct?

      The Lay Magistrates are: -
      (a)    Legally qualified, full-time and receive a salary
      (b)    Not legally qualified, part-time and paid expenses but no salary
      (c)    Not legally qualified, full-time and received a salary
      (d)    Legally qualified, part-time and receive expenses



                                             4
16.   Which one of the following offences is not a summary offence?

      (a)    Drunk and disorderly
      (b)    Assault of a police officer
      (c)    Driving without due care and attention
      (d)    Burglary



17.   Which one of the following statements is correct?

      A Magistrates function is to:
      (a)    Hear the case and if they find the defendant guilty, refer him to the Crown
             Court for sentencing
      (b)    Hear the case and if they find the defendant guilty, refer it to the Legal
             Adviser to pass sentence
      (c)    Hear the case if they find the defendant guilty, sentence him
      (d)    Hear the case and if they find the defendant guilty, refer him to the
             Divisional Court of the Queens Bench Division of the High Court sentence



18.   Which one of the following statements is correct?

      The function of a jury in a criminal case is to:
      (a)    Hear the evidence, decide on the guilt or innocence and then sentence
             the defendant
      (b)    Hear the evidence but leave it to the judge to decide on the guilt or
             innocence and sentencing of the defendant
      (c)    Hear the evidence, decide on the guilt or innocence but leave it to the
             Judge to sentence the defendant if he is found guilty
      (d)    Hear the evidence, decide on the guilt or innocence and then refer it to
             a panel of appeal judges to sentence the defendant if he is found guilty



19.    Which one of the following statements is incorrect?

      (a)    In certain circumstances a defendant can choose to have his case tried in
             either the Magistrates or Crown Court
      (b)    The advantage of having a case heard in the Crown Court is that the jury are
             less case hardened than Magistrates
      (c)    The penalties that can be awarded in the Crown Court are higher
      (d)    Cases are heard much quicker in the Crown Court




                                             5
20.    Which one of the following statements is incorrect?

      If issuing proceedings against a defendant in the Civil Courts a business should:
      (a)      Ensure that they have sufficient evidence to support their claim
      (b)      Check whether there are any other civil claims pending against the
               defendant
      (c)      Check whether the defendant has sufficient funds to make him worth
               suing
      (d)      Consider whether the defendant has any viable defence



21.    Which one of the following statements is incorrect?

      (a)     Before the Civil Procedure Act of 1997 the Civil Courts were criticised as
              being very slow, complicated and expensive
      (b)     Lord Denning, an eminent judge, was appointed to prepare a report on ways
              to improve the Court procedure
      (c)     One of the aims of the reforms was to make litigation the last resort
      (d)     Alternative Dispute Resolution was to be encouraged under the new rules



22.    Which one of the following statements is incorrect?

      (a)     The new rules under the Civil Procedure Act 1997 allowed each party to
              manage its own case to speed up the process
      (b)     Small, Fast & Multi Track routes for cases were introduced
      (c)     Legal language was simplified
      (d)     Strict time tables were introduced so that cases proceeded without delay



23.    Which one of the following statements is incorrect?

      (a)     An action brought under the small claims track is cheap, informal and if you
              fail to win your case you will not have to pay the other parties costs
      (b)     The small claims track does not allow legal representation by solicitors
              or barristers because there are no orders for costs against the losing
              party
      (c)     A claim before the small claims track must not exceed the value of £5,000
      (d)     Types of cases dealt with by the Small Claims Track include claims for unpaid
              debts and landlord and tenant disputes




                                             6
24.    Which one of the following statements is incorrect?

      Once a claimant has obtained judgment against the defendant he may have to take
      further action if the defendant fails to pay the money he owes under the judgment
      debt. Possible options are:
      (a)     Issue application for a charging order
      (b)     Apply for an attachment of earnings order
      (c)     Apply for a presentation order where his assets are seized and sold to pay
              the judgment debt
      (d)     Issue third party proceedings



25.    Which one of the following statements is incorrect?

      (a)    The High Court is made up of three divisions
      (b)    The Administrative Court and the Admiralty Court are found in the Chancery
             Division
      (c)    The Queens Bench Division work includes dealing with contract and tort
             cases
      (d)    Each division has a divisional court



26.    Which one of the following statements is incorrect?

      (a)    Judicial review decides on the legality of actions of public bodies
      (b)    An important function of the Queens Bench Division is to hear applications for
             judicial review
      (c)    Remedies under judicial review are discretionary
      (d)    Applications for judicial review have decreased over recent years



27.    Which one of the following statements is incorrect?

      (a)    Judicial review remedies can be awarded when public bodies exceed their
             powers
      (b)    Judicial review cannot be applied for in cases of asylum or immigration
      (c)    Judicial review looks at the way a decision was reached not at the verdict
      (d)    Remedies available under judicial review include quashing orders, mandatory
             orders, injunctions and damages




                                            7
28.    Which one of the following is incorrect?

      (a)    Orders made by the court hearing a judicial review are called prerogative
             orders
      (b)    An order called Certiorari is an order prohibiting a court or body doing
             something beyond their powers
      (c)    An order called Prohibition is an order prohibiting the court or body doing
             something beyond their powers
      (d)    An order called mandamus is an order to force a body to do something it has
             a legal duty to do


29.    Which one of the following statements is correct?

      (a)    The House of Lords only hears appeals from England & Wales
      (b)    The House of Lords is the final Court of Appeal for England & Wales,
             Scotland & Northern Ireland
      (c)    The House of Lords can overrule European Law that conflicts with the UK law
      (d)    The House of Lords hears appeals and cases of first instance


30.    Which one of the following statement is incorrect?

      (a)    The case of Donoghue v Stevenson originated in Scotland
      (b)    The case of Donoghue v Stevenson was heard in the House of Lords
      (c)    The case of Donoghue v Stevenson is a leading case on the tort of
             negligence
      (d)    The case of Donoghue v Stevenson illustrates the importance of the Court of
             Appeal (Civil Division)



31.    Which one of the following statement is incorrect?

      (a)    Tribunals are quasi courts having the same and additional powers to the
             courts
      (b)    Tribunals specialise in a particular area of law
      (c)    An appeal from any tribunal must go the County Court
      (d)    A claimant can represent himself at a tribunal



32.    Which one of the following statement is incorrect?

      (a)    The employment tribunal hears applications such as unfair dismissal
      (b)    The employment tribunal can order the employer to re-instate the applicant
      (c)    The employment tribunal is informal and prohibits the parties having legal
             representation
      (d)    The panel hearing a case in an employment tribunal usually have a legally
             qualified chair person


                                            8
33.    Which one of the following is incorrect?

      (a)    Businesses are sometimes reluctant to take court proceedings because they
             fear the mounting costs of such action
      (b)    In some areas of law such as divorce, the court has a duty to encourage the
             parties to an action to try to settle their dispute out of court
      (c)    Court proceedings are open to the public and many businesses would prefer
             to keep the details of their disputes private
      (d)    Businesses always prefer to take court proceedings rather than settling their
             dispute privately because they want other clients to know that they will not
             tolerate bad debts



34.    Which one of the following statement is incorrect?

      (a)    The Parliamentary Commissioner for Administration is an example of an
             ombudsman
      (b)    The ombudsman scheme is a procedure for redress of complaints about the
             way in which a decision has been taken
      (c)    The ombudsman scheme investigates complaints of maladministration
      (d)    The ombudsman can decide whether an error was made in the actual
             decision



35.    Which one of the following statement is correct?

      (a)    ADR stands for Added Dispute Resolution
      (b)    ADR stands for Additional Dispute Redress
      (c)    ADR stands for Alternative Dispute Resolution
      (d)    ADR stands for Alternative Decision Redress



36.    Which one of the following statement is incorrect?

      (a)    Conciliation is the method favoured in industrial disputes
      (b)    Mediation brings the parties of a dispute together and having heard both
             sides makes a binding ruling
      (c)    Expert determination is used to resolve disputes which are technical in nature
      (d)    Arbitration clauses are often incorporated into business contracts




                                            9
37.    Which one of the following statements is incorrect?

      (a)    Legislation cannot be introduced to change judge made law that was decided
             in the highest courts
      (b)    Legislation can be used to consolidate various pieces of legislation into one
             Act of Parliament
      (c)    The Sale of Goods Act 1979 is an example of a codification of statute law and
             case law
      (d)    Acts of Parliament are used to implement government policy and European
             law



38.    Which one of the following statements is incorrect?

      (a)    The principle of parliamentary supremacy means that no court can override
             legislation
      (b)    Parliament has the power to pass legislation to overrule a decision in any
             court
      (c)    A court is able to overrule delegated legislation
      (d)    Examples of delegated legislation include orders in Council and statutory
             instruments



39.    Which one of the following statement is incorrect?

      (a)    A disadvantage of delegated legislation is that parliamentary control is
             reduced
      (b)    Legislation is a speedy method of providing new laws
      (c)    If there is a dispute between legislation and case law legislation must prevail
      (d)    Statutory instruments and orders in council are examples of delegated
             legislation



40.    Which one of the following statements is incorrect?

      (a)    Judicial precedent needs a hierarchical structure of courts and a law reporting
             system to work effectively
      (b)    Judicial precedent is a source of law that is often called “case law” or “judge
             made law”
      (c)    For judicial precedent to work effectively there must be a strong legislation
             and a defined system of courts
      (d)    Judicial precedent is a system adopted by countries such as America and
             Australia




                                            10
41.    Which one of the following is correct?

      (a)    The ratio decidendi includes the judgment and the sentence in a case
      (b)    The ratio decidendi is the verdict in a case
      (c)    The ratio decidendi is the statement of law in a case
      (d)    The ratio decidendi is not binding but judges have a discretion to follow it



42.    Which one of the following statements is incorrect?

      (a)    An example of obiter dicta is decisions of other countries that have a similar
             legal system as ours
      (b)    A dissenting judgment can be a source of obiter dicta
      (c)    Where the judges decide that there are two possible answers to a legal
             problem then each will be called obiter dicta
      (d)    Obiter dicta is an example of persuasive precedent



43.    Which one of the following statements is correct?

      (a)    As far as judicial precedent is concerned the High Courts legal decisions bind
             the Court of Appeal
      (b)    The Court of Appeal is made up of two divisions, criminal and civil and they
             are bound by each others decisions
      (c)    The House of Lords binds all the courts below it and is bound by its own
             decisions
      (d)    The House of Lords issued a practice statement in 1966 stating that it would
             depart from its previous decisions if it felt it was right to do so



44.    Which one of the following statements is correct?

      (a)    The ratio decidendi of Wings V Ellis stated that a tour operator owes a duty of
             care to the purchaser of a holiday
      (b)    Wings v Ellis is a leading case on the defence available under the Trade
             Descriptions Act 1968
      (c)    The ratio decidendi of Wings v Ellis is that a statement is made in a brochure
             when it is issued and every time it is read
      (d)    The case of Wings v Ellis was a leading case on consumer contracts




                                             11
45.    Which one of the following statements is incorrect?

      (a)    The case of Herrington v British Rail is a case in which the House of Lords
             departed from its previous decision
      (b)    The case of Herrington v British Rail concerned a young boy who was injured
             on a railway line
      (c)    In the case of Herrington v British Rail it was held that an occupier owed no
             duty of care to a trespasser
      (d)    The case of Herrington v British Rail paved the way to the passing of the
             Occupiers Liability Act 1984



46.    Which one of the following statements is incorrect?

      (a)    Judicial precedent can be avoided by overruling or reversing a decision
      (b)    A judge can avoid following precedent by distinguishing a case
      (c)    A judge can avoid judicial precedent by dismissing the case
      (d)    Judicial precedent includes binding and persuasive precedent



47.    Which one of the following statements is correct?

      (a)    A dissenting judgment is an unpopular judgment
      (b)    The majority judgment is also known as a dissenting judgment
      (c)    A judges formal disagreement with a decision is known as a dissenting
             judgment
      (d)    A dissenting judgment is a form of binding precedent



48.    Which one of the following statements is correct?

      (a)    A sole trader can take other employees into the business as partners
      (b)    A sole trader cannot employ other workers and only has to pay debts from his
             business assets
      (c)    A sole trader is a one man business which can employ other people to help
             him in the business but he alone is personally liable for all debts
      (d)    A sole trader also acts as an agent for his employees



49.    Which one of the following statements is correct?

      (a)    A sole trader can call himself any name he wants to in any circumstances
      (b)    A sole trader is not subject to the requirements under the Companies Act
             2006 with regard to a business name
      (c)    A sole trader has total control of the business and retains all the profits
      (d)    A sole trader keeps all profits and has limited liability regarding his debts


                                            12
50.    Which one of the following statements is incorrect?

      (a)    If a business contravenes the provisions of the Companies Act 2006
             regarding its business name, the business will be banned from trading by the
             service of an injunction
      (b)    Failure to conform to the requirements as to a business name under the
             Companies Act 2006 can result in prosecution and the imposition of a fine
      (c)    The Companies Act 2006 applies to all forms of business organisations
      (d)    Under the Companies Act 2006 if the sole trader uses a name other than his
             own he must provide details of his true name on all business documentation
             and prominently displays it at all business premises



51.    Which one of the following statements is correct?

      (a)    Under the Companies Act 2006 a business name cannot be used by a sole
             trader if it implies that it is concerned with local or central government
      (b)    A business name must always be the name of the owner
      (c)    The use of the word “Royal” can be used by a sole trader
      (d)    A business name can be used without disclosing the users real name if it is
             for charitable purposes



52.    Which one of the following statements is correct?

      A partnership is defined as:
      (a)    An agreement between two or more persons to form a business
      (b)    A relationship that exists between persons carrying on a business in common
             with a view of profit
      (c)    A legally binding contract to share the profits of a business in equal shares
      (d)    A relationship between two or more persons working in a professional
             capacity



53.    Which one of the following statements is incorrect?

      (a)    A partnership is made up of at least two people
      (b)    Partners are in a contractual relationship with each other
      (c)    In the absence of agreement the rules governing a partnership are decided by
             the Partnership Act 1890
      (d)    A partnership cannot exist without a written partnership agreement




                                            13
54.    Which one of the following statements is incorrect?

      (a)    The partnership and all partners will be liable for the authorised acts of all its
             partners
      (b)    The transaction does not have to be connected to the partnership to make the
             partnership liable for unauthorised transactions by a partner
      (c)    A partner acts as an agent for the firm and for his fellow partners
      (d)    The partnership will also be liable for unauthorised acts of partners if the
             partner has “apparent” authority



55.    Which one of the following statements is correct?

      (a)    A debtor can proceed against an individual partner and his personal assets
      (b)    A partner will not be liable for the business debts incurred by fellow partners
      (c)    The partners liability with regard to debts incurred is limited to the assets of
             the partnership
      (d)    A debtor who wishes to sue a partnership for monies owed can only sue in
             the name of the firm



56.    Which one of the following statements is correct?

      (a)    Any increase in the value of partnership property belongs to the partner who
             originally owned it
      (b)    A debtor cannot claim against partnership property
      (c)    All property brought into a partnership by an individual partner remains his
             property when the partnership is dissolved
      (d)    The case of Miles v Clark was a case about partnership property



57.    Which one of the following statements is incorrect?

      (a)    The authority of a partner when acting as an agent for his firm can be express
             or implied
      (b)    Actual authority includes express and implied authority
      (c)    The authority of the agent must be in writing
      (d)    In the case of Mercantile Credit Co v Garrod [1962] the court held that the
             partner had apparent authority




                                             14
58.    Which one of the following statements is incorrect?

      (a)    A partner has a duty under Section 28-30 of the Partnership Act 1890 to “act
             in good faith”
      (b)    Partners must render true accounts and full information in relation to all things
             affecting the partnership
      (c)    A partner can compete with the partnership business without the consent of
             other partners
      (d)    Partners must account for any benefits obtained without consent from any
             transaction concerning the partnership



59.    Which one of the following statements is incorrect?

      (a)    A limited liability partnership under the 2000 Act is a legal person with an
             existence separate from its members
      (b)    A limited liability partnership under the 2000 Act creates a partnership with
             limited liability for its members
      (c)    A limited partnership must include in its name “LLP”
      (d)    A limited partnership does not need to file its audited accounts



60.    Which one of the following statements is incorrect?

      (a)    A sleeping partner is a person who invests capital in a partnership but cannot
             take part in its deciding management
      (b)    Partners are not entitled to a salary
      (c)    New partners can be brought into the partnership on the agreement of one of
             the partners
      (d)    Agreement to changes does not require the consent of a retiring partner



61.    Which one of the following statements is incorrect?

      (a)    A partnership will be dissolved when the period of the partnership or the
             purpose for which it was set up is achieved
      (b)    A partnership agreement can provide that a partnership is not dissolved on
             the death of a partner
      (c)    Dissolution does not occur just because one of the partners have been
             declared bankrupt
      (d)    Application can be made to the court for the dissolution of a partnership
             because one of the partners is mentally or physically incapable of continuing
             in the partnership




                                             15
62.    Which one of the following statements is correct?

      (a)    On retirement a partner is automatically relieved of all liabilities and debts of
             the partnership
      (b)    If a partner retires and his name is left on the firms letterheads, he may be
             liable for the firms debts after retirement
      (c)    A notice published in the London Gazette stating he has retired is not
             evidence of a partnerships retirement as far as the firms debtors are
             concerned
      (d)    A retired partner can still draw profits from the partnership



63.    Which one of the following is correct?

      The term “passing off” refers to:
      (a)    Using a business logo improperly
      (b)    Using a business name that is the same as another business and is likely to
             confuse the public
      (c)    Using the name of another business to promote your own
      (d)    Using the premises of another business as your own



64.    Which one of the following statements is incorrect?

      (a)    The case of Plumer V Gregory (1874) was concerned with the theft of client’s
             money by two of the partners of a solicitors practice. After the two partners
             died the client, whose money had been stolen, sued the innocent remaining
             partner for the money.
      (b)    The case of Watteau v Fenwick (1893) concerned the question of whether the
             hotel owner’s were liable for a contract made between their manager and a
             third party for the purchase of cigars even though they had expressly
             forbidden him from making such purchases.
      (c)    The case of Plumer v Gregory (1874) established that as the innocent partner
             had no knowledge of the theft and wrongdoing of the dead partners he was
             not liable
      (d)    In the case of Watteau v Fenwick (1893) the court held that the hotel owner’s
             were bound by the contract made between the manager and the third party as
             it fell within his usual authority



65.    Which one of the following statements is incorrect?

      (a)    The case of Croft v Day (1843) was concerned with an action for “passing off”
      (b)    The remedy in an action for “passing off” includes damages and an injunction
      (c)    The case of Ewing v Buttercup Margarine Co Ltd (1912) was a case
             concerning the issue of “passing off”
      (d)    “Passing off” is an example of an equitable remedy under the law of contract


                                             16
66.    Which one of the following statements is incorrect?

      (a)    A corporation can be formed by Royal Charter, by statute or by registration
      (b)    The liability of the members of a registered company is always limited by
             shares
      (c)    A private company can be limited or unlimited
      (d)    A public limited company is limited by shares and its shares are offered for
             sale to the general public




67.    Which one of the following statements is incorrect?

      (a)    A registered company limited by shares is a corporate body
      (b)    A registered company limited by shares is an artificial person recognised by
             law
      (c)    A registered company limited by shares can enter into contracts in its name
             but cannot hold land in its name
      (d)    A registered company limited by shares can be sued




68.    Which one of the following is incorrect?

      (a)    Shareholders are personally liable for the debts of the company
      (b)    Shareholders in a limited liability registered company are members of the
             company but are not involved in the every day running of the company
      (c)    Management of the limited liability registered company are accountable to the
             members in the general meeting
      (d)    If a company cannot pay its debts it will be wound up




69.    Which one of the following statements is incorrect?

      The case of Solomon v Solomon:
      (a)    Was about the limited liability of a shareholders
      (b)    Stated that a company is separate from its members
      (c)    Concerned an owner of a boot and shoe business
      (d)    Stated that Mr Solomon was a secured creditor and entitled to repayment
             before ordinary creditors




                                            17
70.    Which one of the following statements is incorrect?

      (a)    Members of a limited liability company who have acted fraudulently cannot
             escape liability by hiding behind a company
      (b)    Removing the protection of limited liability is called “lifting the veil of
             incorporation”
      (c)    Where a company was a “sham” formed to avoid enforcement of rights which
             have accrued to another company, there is no remedy against the members
      (d)    A case to illustrate a sham company is the case of Gilford Motor Co Ltd v
             Horne (1933)



71.    Which one of the following statements is correct?

      (a)    The Articles of Association of a company form a contract between the
             shareholders and the company
      (b)    Articles of Association contain details of the shareholders
      (c)    It is not always necessary for a company to have an Article of Association
      (d)    The Articles of Association of a company limited by shares contains the
             internal regulations of the company



72.    Which one of the following statements is incorrect?

      (a)    A company can trade for up to 4 weeks before a certificate of incorporation is
             issued
      (b)    A company has no legal identity until it is issued with a certificate of
             incorporation
      (c)    The Memorandum of Association is a document that must be filed with an
             application for incorporation
      (d)    Matters that are important to the outside world such as the capital of liability of
             the company are contained in the Memorandum of Association



73.    Which one of the following statements is incorrect?

      (a)    An advantage of being a sole trader is that you have total control of the
             business and reap all the profits
      (b)    An advantage of a private limited company is that the liability of the
             shareholder is limited to the paid up value of their shares
      (c)    An advantage of a partnership is that partners are only liable for loses if he or
             she has caused the loss
      (d)    An advantage of a public limited company is that it can offer its shares to the
             public


                                              18
74.    Which one of the following statements is incorrect?

      (a)    Issues of sexual discrimination are not relevant to workers rights under
             European law
      (b)    The “Social Chapter” is concerned with social rights for workers
      (c)    The ideas of a European Union was resurrected at a meeting of foreign
             Ministers in 1955 at Messina
      (d)    One of the aims of the Treaty of Rome was to create a single internal market




75.    Which one of the following statements is incorrect?

      (a)    The European Community was originally founded by the Treaty of Rome in
             1958
      (b)    The UK signed the Treaty of Accession to join the European Community in
             1972
      (c)    The Single European Act of 1986 was concerned with introducing new
             member states to join the European Community
      (d)    In 1992, the Maastricht Treaty established the European Union which
             envisaged full economic and monetary union



76.    Which one of the following statements is incorrect?

      (a)    Treaties are a primary source of European Union Law
      (b)    Secondary sources of European law include directives, regulations and
             decisions
      (c)    Secondary source of European law are never binding on member states
      (d)    The European Court of Justice’s function includes the interpretation of
             European law



77.    Which one of the following statements is incorrect?

      (a)    A regulation has general application but only binds those member states who
             wish to implement it
      (b)    A regulation has general application and is binding in its entirety and is
             directly applicable to all member states
      (c)    Regulations create rights applicable to every member state
      (d)    A regulation is incorporated automatically into the law of each member state




                                           19
78.    Which one of the following is incorrect?

      (a)    The aim of a directive is to achieve an approximation of European law
      (b)    The member state must adopt the exact wording of the directive when
             implementing it into its own law
      (c)    A directive is binding as to the results to be achieved, upon each member
             state to which it is addressed
      (d)    A member state has a period of time (usually 2 years) in which to implement
             the directive



79.    Which one of the following is incorrect?

      (a)    A member states domestic court can refer a question on the interpretation of
             European law to the European Court of Justice
      (b)    The procedure by which a member state can refer a question of interpretation
             to the European Court of Justice is called a preliminary ruling under Article
             234
      (c)    The European Court of Justice on giving its ruling will give its interpretation of
             the law and the verdict of the case referred
      (d)    The aim of the Article 234 procedure is to achieve a uniform interpretation of
             European law by all member states


80.    Which one of the following statements is incorrect?

      (a)    If there is a conflict between European law and a member state on domestic
             law then European law must prevail
      (b)    The Factortame case illustrated the supremacy of European law before
             domestic courts
      (c)    The Factortame case involved an alleged conflict between a European Treaty
             provision and a later Italian statute nationalising the electricity company
      (d)    The Factortame case resulted in the member states having to change
             domestic law so that it did not conflict with European law


81.    Which one of the following statement is incorrect?

      Marshall v Southampton & South West Hampshire Area Health Authority (1993) was:
      (a)    A case concerning a dietician who alleged that the Sex Discrimination Act
             1975 contravened the European Directive on Equal Treatment of Men and
             Women in Employment
      (b)    A case in which the UK courts referred the issue to the European Court of
             Justice under Article 234 procedure
      (c)    A case that concerned the unequal treatment of men and women concerning
             mandatory hours of work
      (d)    A case which illustrates a conflict between the domestic laws of the member
             state with European law


                                             20
82.    Which one of the following is incorrect?

      (a)    The Council of Ministers is made up of a ministerial representative of each
             member state
      (b)    The function of the Council of Ministers is to ensure the objects of the Treaty
             are attained
      (c)    The purpose of the Council of Ministers is to represent the interests of
             member states
      (d)    The Council of Ministers main role is to represent the interests of the
             European Union



83.    Which one of the following statement is incorrect?

      (a)    The Commission is analogous to our Civil Service
      (b)    The Commission is also known as the “Guardian or Watchdog of the Treaties”
      (c)    The Commissioners are selected by the European Court of Justice
      (d)    The Commissioners functions include initiating legislative proposals and
             supervising the implementation of European law



84.    Which one of the following statement is incorrect?

      (a)    The purpose of the European Parliament is to represent the interests of the
             people of Europe
      (b)    The European Parliament has supervisory and advisory functions
      (c)    The European Parliament is the only European institution with legislative
             powers
      (d)    The European Court of Justice sits in Luxembourg and interprets European
             law



85.    Which one of the following is incorrect?

      (a)    The Law Society governs the rules of professional behaviour of barristers
      (b)    The Bar Council is the barristers’ elected representative governing body
             which sets the standards and ethics of professional conduct
      (c)    The Council of Legal Education is responsible for educational needs of
             prospective barristers
      (d)    The Senate of the Inns of Court and The Bar is the professionals’ overall
             governing and policy making body




                                            21
86.    Which one of the following statements is incorrect?

      (a)    A complaint against a solicitor is first made through the complaints procedure
             of his business
      (b)    Complaints against solicitors are made to the Inns of Court
      (c)    The Legal Complaints Service deals with complaints against solicitors
      (d)    The Legal Services Ombudsman looks at training and complaints against
             both solicitors and barristers



87.    Which one of the following statements is incorrect?

      (a)    A solicitor can work in a private practice, industry, local government and the
             Civil Service
      (b)    A solicitor cannot set up on his own as a sole trader
      (c)    Solicitors must participate in continuing education throughout their careers
      (d)    Solicitors have a limited right to advertise


88.    Which one of the following statements is correct?

      (a)    A barrister’s rights of audience in the courts are the same as those of a
             solicitor
      (b)    A barrister has unlimited rights of audience to all courts
      (c)    A barrister has unlimited rights of audience to all courts once he has been
             made a senior barrister known as a Queens Counsel
      (d)    A barrister’s rights of audience are limited to the lower courts until he has five
             years post qualification experience


89.    Which one of the following statements is incorrect?

      (a)    A barrister can operate as a sole trader and can enter into partnership
      (b)    A barrister operates under a system called the “cab rank rule”
      (c)    Certain professions now have direct access to a barrister
      (d)    A barrister is also known as Counsel



90.    Which one of the following is incorrect?

      (a)    The barrister is immune from being sued for negligence for work outside the
             court such as preparation and giving legal opinion
      (b)    In the case of Rondel v Worsley it was held that a barrister was immune from
             being sued in respect of negligent conduct in court
      (c)    Under the landmark case of Arthur J S Hall & Co v Simons a barrister can be
             sued for negligent conduct of a case in court
      (d)    Barristers are not allowed to advertise their services and the fees they charge


                                             22
91.    Which one of the following is incorrect?

      (a)    All barristers must be members of one of the four Inns of Court
      (b)    The Inns of Court are called Inner Temple, Lincolns Inn, Grays Inn and Middle
             Temple
      (c)    The Inns of Court provide law libraries and common rooms for barristers and
             students, lunches and dinners and scholarships and bursaries
      (d)    The Inns of Court are situated in most large towns and cities




92.    Which one of the following statements is correct?

      (a)    A solicitor has rights of audience in all courts
      (b)    A solicitor has rights of audience in the magistrates court only
      (c)    A solicitor can in certain circumstances have rights of audience in the Crown
             Court and High Court
      (d)    A solicitor’s rights of audience is limited to the magistrates and county courts




93.    Which one of the following is incorrect?

      (a)    A barrister who is not a Queens Counsel is called a junior
      (b)    Becoming a Queens Counsel is also known as “taking silk” because they
             wear gowns of silk
      (c)    A Queens Counsel is a highly successful barrister who is chosen from a
             number of applicants
      (d)    Most barristers become Queens Counsel when they have won at least ten
             cases in the civil courts




94.    Which one of the following is correct?

      (a)    The Sale of Goods Act 1979 is concerned with contracts for the sale of goods
             and services
      (b)    The Sale of Goods Act automatically implies that conditions concerning title,
             description and quality are part of each contract
      (c)    The Sale of Goods Act also covers sales of loans and sales of land
      (d)    The Sale of Goods Act only applies to contracts between businesses




                                            23
95.    Which one of the following statements is incorrect?

      (a)    The implied conditions in the Sale of Goods Act can be excluded by a
             business
      (b)    Under Section 12 of the Sale of Goods Act there is an implied condition that
             the seller has the right to sell the goods
      (c)    The leading case to illustrate Section 12 is called Rowland v Divall
      (d)    The case of Rowland v Divall concerned the sale of a stolen car




96.    Which one is incorrect?

      (a)    Section 13 of the Sale of Goods Act states that goods must correspond with
             the description given to them
      (b)    The buyer must have relied on the description for Section 13 to apply
      (c)    In the case of Arcos v Ronaasen – the supply of wooden staves, that were
             only slightly too wide but were still suitable for the job, did not contravene
             Section 13
      (d)    The implied term as to description applies to packaging as well as to the
             goods




97.    Which one of the following statements is incorrect?

      (a)    Section 14 states that goods must be of satisfactory quality and applies to all
             contracts
      (b)    Section 14 also applies to the sale of second-hand goods
      (c)    Section 14(3) states that goods must be fit for any special purpose made
             known by the buyer to the seller
      (d)    For Section 14(3) to apply the buyer must have relied on the sellers expertise




98.    Which one of the following statements is correct?

      (a)    Under the Sale of Goods Act the buyer has the right to a refund at any time
      (b)    If the buyer has accepted the goods he is not entitled to a full refund
      (c)    A buyer cannot claim for any out of pocket expenses resulting from the
             breach of an implied contract
      (d)    A buyer can always insist on a replacement or free repair if the seller is in
             breach of an implied term




                                            24
99.     Which one of the following statements is incorrect?

       (a)    In the case of Griffiths v Peter Conway (1939) the buyer purchased a fur coat.
              When she wore it, she suffered an allergic reaction
       (b)    The case of Priest v Last (1903) concerned the purchase of a defective hot
              water bottle
       (c)    In the case of Griffiths v Peter Conway (1839) the courts held that the seller
              breached Section 13 of the Sale of Goods Act 1979
       (d)    In the case of Priest v Last the courts held that the seller breached Section
              14(2) and 14(3) of the Sale of Goods Act 1979



100.    Which one of the following statements is incorrect?

       (a)    The Sale and Supply of Goods to Consumer Regulations 2002 provide
              additional remedies for breach of contract for the supply of goods
       (b)    These additional remedies include a free repair, replacement or a refund less
              the value representing the use the consumer has had of the goods
       (c)    The Sale and Supply of Goods to Consumer Regulations 2002 apply to
              consumers and businesses
       (d)    The Sale and Supply of Goods to Consumer Regulations 2002 came into
              force as a result of the UK’s membership of the European Union




                                                                   END OF EXAMINATION




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