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WorksheetsLegal Aspects for Business
Total questions: 62
Worksheet time: 5hrs 10mins
1. A criminal case is known as a:
Claim
Prosecution
Charge
Which court would be likely to try a case involving the recovery of a debt worth £5,000?
Magistrates’ court
High Court
Crown Court
County court
In the context of case law, which of the following applies to an obiter dictum?
It is not binding on any courts
It is not binding outside the court it was issued in
It is binding on all future courts
It is binding on all lower courts.
In the context of the English legal system, which of the following defines the ratio decidendi of a judgment?
The future application of the case
The decision in a previous case
The legal reason for deciding the case
The facts of the case
It is 3 weeks before B Ltd manage to supply Adriana with a replacement chest freezer. Adriana estimates that each freezer should enable her to make an extra profit of £500 per week. What sum will Adriana be able to claim by way of damages for breach of contract?
£500
£1,000
£1,500
£3,000
Which is the lowest civil court structure under the English Legal System?
Magistrates Court
Crown Court
County Court
High Court
Which court would be likely to try a case involving a breach of contract where damages for £7,000 loss of profits is claimed?
Magistrates’ court
High Court
Crown Court
County court
Which of the following is not a fair reason for dismissal?
Capability or qualifications
Conduct
Redundancy
Trade Union activism
Which parties are potentially bound by the terms of the tender when one party submits a tender?
The person requesting the tender
The person submitting the tender
Both parties
Neither party
The minimum share capital of a public limited company is:
£5,000
£150,000
£50,000
£12,000
What is the difference between negligent misrepresentation and negligent mis-statement?
Both are considered as providing untruth statement without intention and therefore, the damages / monetary compensation is liquidated in nature
Negligent mis-statement is a liability under the area of tort and negligent misrepresentation is an action under the law of contract
Negligent misrepresentation occurs when there is an intent to commit fraud whereas negligent mis-statement occurs when one innocently provided incorrect information to the other party
There are no differences between these two legal concepts
A Ltd entered into a contract to build bigger premises for B Ltd at a cost of £1,000,000 to allow B Ltd to expand. The work was due to be completed by 1st December 2020. A Ltd got into financial difficulties. To encourage A Ltd to finish the work on time, B Ltd agreed to pay a completion bonus of £200,000. Which of the following is accurate:
B Ltd’s promise to pay the bonus is probably enforceable as it received consideration under the ‘practical benefits’ principle.
B Ltd’s promise to pay the bonus is unenforceable as there was no mutual intention to enter into a legally binding variation
B Ltd’s promise to pay the bonus is unenforceable as A Ltd did not provide sufficient consideration in return
B Ltd’s promise to pay the bonus is unenforceable as there was no offer and acceptance
A criminal case is known as a:
Claim
Prosecution
Charge
Contributory negligence is…
A partial defence
A full defence
Not a defence and the defendant will be liable for additional breach
A provisional defence
Which of the following is an example of the monarch’s prerogative power?
None of the above
Preside over cases in the Queen’s Bench Division of the High Court
The pardoning of offenders for offences committed
Sentencing criminals to death by hanging for waging war against the monarch and her realms and territories
What is compulsory liquidation?
When the company directors and members agree by special resolution to wind up the company
When the company is subject to a court order requiring it to be wound up, usually because it is unable to pay its debts.
When shareholders pass a special resolution to wind up the company and the company is insolvent i.e. it cannot pay its debts
When shareholders pass a special resolution to wind up the company and the company is able to meet its debts in full
Which court would be likely to try a case involving the recovery of a debt worth £5,000?
County court
Crown Court
High Court
Magistrates’ court
What is the burden of proof for a criminal case?
Beyond twilight zone
Beyond any doubts
Beyond reasonable doubts
An employer will usually not be vicariously liable for torts committed by:
Employees
‘Zero-hour’ workers
Independent contractors
Limb (b) workers
Which of the following resolutions is required to change the name of a company?
Special resolution with notice.
Special resolution
Ordinary resolution with notice
Ordinary resolution
What is meant by constructive dismissal?
Where an employee is dismissed for an unfair reason
If an employer dismisses the employee without giving him the notice agreed in his contract
Where an employee is guilty of gross misconduct and the employer dismisses him immediately
Where there is a serious breach of contract by the employer which entitles the employee to treat the contract of employment as terminated
Ali went into Morrisingh’s supermarket with the intention of purchasing some vegetables. He came across a statement on the shelf which states, ‘Buy a packet of spinach and get another free’. Unfortunately, there was only one remaining packet on the shelf. Applying the law of contract, what would be the most suitable advice for him?
The spinach displayed on the supermarket shelf is only an invitation to treat and therefore, has no legal value in the eyes of the law.
The supermarket has made an offer to Ali by displaying the spinach on the shelf and must honour their commitment to Ali
The spinach displayed on the supermarket shelf is an offer and Ali is therefore only liable to pay half price for the spinach
Ali can bring a criminal proceeding instead against Morrisingh supermarket based on fraudulent misrepresentation
James, a finance and investment manager, recommended to George that he should invest in cryptocurrency as the two were discussing about diversifying George’s financial portfolio. As a result, George invested his life savings in superdupercoin, cryptocurrency. A few days later, superdupercoin lost all its value after the trading system it supported was revealed as a fraudulent scam. Which of the following best describes James’ liability for negligent misstatement:
James will be liable as the case is similar to that of Donoghue v Stevenson.
James will not be liable because it is unfair for George to rely on his advice
James will be liable because he directed his advice to George, and George relied upon the advice for the same purpose as it was given by James
James will not be liable because there was no contract between James and George
Which is the lowest criminal court structure under the English Legal System?
High Court
County Court
Magistrates Court
Crown Court
Which of the following may imply terms into a contract?
Act of Parliament and Common Law
Legislation
Statute and Civil Law
The parties to the contract as they deemed appropriate
Which of the following is a fiduciary duty of an agent?
All of the above
Duty to account to the principal
Duty to avoid conflicts of interests
Duty not to make secret profits
Which is the following is correct concerning organisations that use the abbreviations ‘plc’ after their business name?
The company need not have a company secretary
The organisation must hold an Annual General meeting each calendar year
Members and directors can pass written resolutions
The organisation must have at least 5 members
Which of the following business forms does the use of abbreviation ‘LP’ after the name of a business indicate?
A lesser partnership
A modern private limited company which is created post Limited Liability Partnership Act 2000
A limited partnership for the purposes of Partnership Act 1907
A limited liability partnership
Please choose a correct statement from the following:
There are no differences between the status of an employee and a worker
The employees can commence action under unfair dismissal if the employer fails to demonstrate it fall under the 5 permitted reasons for dismissal
All employees are workers, and this includes agency workers
All workers are employees for the purposes of Employment Rights Act 1996
Cases heard in Criminal Courts are determined…
all of the above
on beyond reasonable doubt
on the balance of probabilities
according to the desire of the judge
The auditor of a company should be …
Acting as the company director and sectary as well
Sharing financial information with third parties for investment purposes
Independent and impartial
An individual who goes all out to protect the financial interests of the company, even though it might result in potential wrongdoing
The directors owe fiduciary duties to the company and as such, are bound under some specific Sections under Sections 171-177 of Companies Act. Which specific section relate to not making secret profit?
Section 171
Section 177
Section 174
Section 176
Magda has been employed continuously by M Ltd for 36 months. What is the statutory minimum notice period M Ltd must give Lisa to terminate her contract of employment?
30 days
4 weeks
3 weeks
1 week
If a party makes a unilateral offer, the acceptance
Need not be communicated and the other party would need to act on the requirement as stated in the offer
Is not necessary to conclude the potentially legally binding agreement
Must be communicated and the other party can list out additional terms and conditions for the contract to be valid
Must be communicated
In the context of judicial precedent, a decision made by which of the following courts is most authoritative?
Privy Court
Crown Court
County Court
Court of appeal
Which of the following defines the literal rule under the rules of interpretation?
c) The legal reason for deciding the case
d) The judges will incorporate or provide a correct interpretation of the word within the legislation
b) The judges will apply an Oxford English dictionary meaning to the word within the legislation
a) The judges will examine the intention of the Parliament
Private nuisance happens where….
there is disturbance on the land and property
partners argued and it affected their personal relationships
someone within the same household contracted a disease
a person’s life and limb are in danger
Which of the following is a fiduciary duty of an agent?
d) All of the above
c) Duty to account to the principal
b) Duty to avoid conflicts of interests
a) Duty not to make secret profits
Which of the following business forms does the use of the abbreviation ‘Ltd’ after the name of a business indicate?
A public limited company
A limited partnership
A limited liability partnership
A private limited company
In relation to a person investing in a company, which of the following investments is most secure?
Ordinary
Debentures secured by a fixed charge
Preference
Debentures secured by a floating charge
If a party makes a unilateral offer, the acceptance…
Must be communicated and the other party can list out additional terms and conditions for the contract to be valid
Is not necessary to conclude the potentially legally binding agreement
Need not be communicated and the other party would need to act on the requirement as stated in the offer
Must be communicated
In the context of statutory interpretation, which of the following requires judges to consider the intention of the parliament?
The golden rule
The literal rule
The misdemeanour rule
The mischief rule
Which is the lowest civil court structure under the English Legal System?
Magistrates Court
County Court
High Court
Crown Court
Tom purchased a new car from a local garage, and after a few days, the brake failed to work properly resulting in Tom suffering from minor injuries when his car went into the ditch. What type of contract term is likely to have been broken by the local garage?
Statutory implied
Express – written
Local garage will not be liable as they have already transfer the risk and ownership of the property to Tom
Express – oral
If Tom were to sue the local garage for damages, on what basis would he be able to claim compensation?
The sum would be up to the discretion of the judges
Sum of money to restore Tom to his pre-contractual position
Sum of money to place him in the position he would have been in if the contract had been property performed
Tom will not be able to claim compensation, instead, the garage owner will be sentence to prison for the injuries inflicted on him
Please choose a correct statement from the following:
d. There are no differences between the status of an employee and a worker
c. The employees can commence action under unfair dismissal if the employer fails to demonstrate it fall under the 5 permitted reasons for dismissal
b. All employees are workers, and this includes agency workers
a. All workers are employees for the purposes of Employment Rights Act 1996
Employment law is a mixture of common law and statutory provisions. Which of the following is purely based on statute law?
a. Summary dismissal
b. Wrongful dismissal
c. Unfair dismissal
d. All of the above
Lisa has been employed continuously by M Ltd for 13 months. What is the statutory minimum notice period M Ltd must give Lisa to terminate her contract of employment?
1 week
2 weeks
4 weeks
30 days
Which of the following sentences is incorrect?
Everyone employed on a zero hours contract is entitled to statutory employment rights – there are no exceptions
Individuals on a zero hours contract will have the employment status of a ’worker’ but not an ‘employee’
Any individual on a zero hours contract who is a ‘worker’ will be entitled to at least the National Minimum Wage, paid annual leave, rest breaks and protection from discrimination
The employer offers the individual work when it arises, and the individualcan either accept the work offered, or decide not to take up the offer of work on that occasion
Edward, an accountant, is hired by C Ltd to prepare a report on the financial strength of C Ltd. Edward is informed that the purpose of the report is to persuade H Ltd to buy all C Ltd’s shares. Edward prepares the report but carelessly fails to identify that C Ltd is not profitable. Which of the following is accurate concerning Edward’s potential liability for negligent misstatement:
Edward will not be liable to H Ltd because there was no contract between him and H Ltd
Edward will not be liable because his advice was prepared for C Ltd, not H Ltd
Edward will be liable because the advice was prepared specifically for the purpose of persuading H Ltd to acquire shares in C Ltd, and it was reasonable for H Ltd to rely on Edward’s advice
Edward will not be liable because it was not reasonable for H Ltd to rely on his advice.
Inga works as plumber. She occasionally undertakes work for Charterhouse Plumbers Ltd (CP Ltd). CP Ltd are under no contractual obligation to offer Inga work, and if they do, Inga is under no obligation to accept it. Inga is only paid for the work she does. When she accepts work, she must provide her personal services and submit to CP Ltd’s directions. Inga is most likely to be:
An employee
A ‘limb (b) Worker’ under section 230(3)(b) Employment Rights Act 1996
A semi employee
A semi-retired employee
A tort is a form of wrongdoing. The concept of negligence under tort requires the injured parties to:
Establish a moral duty of care, breach and resulting injuries
Establish a legal duty of care to convict the defendant
Establish a legal duty of care, breach of that duty and resulting injuries
Establish a breach of obligation, similar to that of a contract
The directors owe fiduciary duties to the company and as such, are bound under some specific Sections under Sections 171-177 of Companies Act. Which specific section relate to not making secret profit?
Section 171
Section 177
Section 174
Section 176
Which of the following best describe the company’s Articles of Association?
A legally binding contract between company and its members only
Contract between a company and the third party
Contract between a company and the members and amongst themselves
Articles which only prescribed the code of conduct for entering contract with third parties
In order to pass a special resolution, the shareholders needed to …
Exercise duty of care, diligence and skills so not to breach their duties
Invest additional £750,000 into the company to pass the resolution
Obtain no less than 75% of the vote
Obtain 100% approval during the Board meeting
To become a company director, the individual must be …
Minimum of 16, and maximum of 75
Minimum of 18 with no maximum
Minimum of 18, and maximum of 67
There are no minimum and maximum age
Under criminal law, which of the following is not bribery under the Bribery Act 2010
An individual who accepts payment to perform a public duty
A company that offers a client reasonable hospitality
An employee of a company who offers a non-financial reward to a public official to perform a public duty
A company offers a non-financial reward to a foreign official
The primary duty of a liquidator is to …
Liquidate the company’s assets and disseminate it to the shareholders
Attempt to save a company where possible
Liquidate the company and dispose its assets to the creditors
Mediate the financial issues between the shareholders and the directors of a company
Which of the following statements is correct in relation to limited partners?
They have no liability for partnership debts
They have full liability for partnership debts
Their liability is limited to the capital they have agreed to invest in the partnership
They have joint and several liability for partnership debts
Directors of a company owe their statutory duties to …
Individuals who appoint them to the position
The company as a whole
The majority of the shareholders
Employees and customers of the company.
An offer which has been accepted with relevant consideration and agreement to terms and conditions cannot be retracted.Analyse the accuracy of the statement.
(a)
(Coming on exam 100%)!! During a weekend party, Charles who is an accountant, recommended that his friend Davidus should buy shares in E Plc. Charles told Davidus that E Plc’s shares are currently undervalued and that it is about to declare large profits. As a result, Davidus invested all his £50,000 savings in E Plc. A few months later, E Plc went into liquidation and Davidus lost all his money. Which of the following best describes Charles’s liability for negligent misstatement:
Charles will not be liable because there was no contract between Charles and Davidus
Charles will be liable because Davidus relied directly upon Charles’s advice for the purposes of investment
Charles will be liable because he ought reasonably to have foreseen that Davidus would rely on his advice
Charles will not be liable because it was unreasonable for Davidus to rely on advice given in a social setting from someone who is not, apparently, a specialist in providing investment advice.
