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Credit management legislation

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Consideration need not to be adequate but must be:

a)

money

b)

sufficient

c)

accepted

d)

of equivalent value to goods

2.

Advert on facebook: Car for sale for £2,000 is

a)

an offer

b)

an acceptance

c)

an invitation to treat

d)

an agreement

3.

A void contract is a contract that:

a)

Cannot be enforced by the law

b)

Can be enforced by law

c)

Can be nullified

d)

is valid

4.

Which of the following is not a remedy for breach of contract?

a)

Damages

b)

Specific performance

c)

Action for the price

d)

A fine

5.

Jane shops at a supermarket. A contract is formed when:

a)

Jane pays for her shopping

b)

Jane puts her selection in the trolley

c)

The checkout assistant takes Jane's goods

d)

Jane picks up items from the shelves

6.

Data Protection Act applies to:

a)

All records held by the company

b)

Only manual records

c)

Only computer records

d)

Only records of opinions

7.

The Late Payment of Commercial Debts (Interest) Act allows:

a)

Customers to charge interest on overdue amounts owing

b)

Commercial banks to charge interest on loans

c)

Suppliers to charge interest on overdue amounts owing

d)

Suppliers to give discounts for early payments

8.

A contract made by a company must be in writing

a)

True

b)

False

9.

A peppercorn is sufficient to amount to good consideration

a)

True

b)

False

10.

The three essential elements of a contract are:

a)

Agreement, consideration and the intention to create legal relations

b)

Acceptance, consideration and the intention to create legal relations

c)

Legal agreement, consideration and acceptance

11.

An example of a void contract is:

a)

A contract to purchase a property when the buyer has no money

b)

A contract involving an illegal act such as an agreement to defraud a bank

c)

A contract to sell goods that are not available at the time of the offer

12.

Which of the following constitutes a valid acceptance of an offer in contract?

a)

‘I agree to buy this bike from you, but the tyres must be replaced first’

b)

‘I agree to lease this property from you, subject to contract’

c)

‘I agree to buy this computer from you and have ticked the box stating that I will abide by your terms and conditions’