SCHOOL OF ARTS, SOCIAL SCIENCES AND MANAGEMENT DIVISION OF BUSINESS, ENTERPRISE AND MANAGEMENT LEVEL 2 DIET 2 MODULE CODE: B2084 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. Page 1 of 7
QUESTION 1 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? 1. Joan has a valid contract with Sarah to sell the guitar to her for 90 2. Joan has a valid contract with Adam to sell the guitar to him for 85 3. Joan s offer to sell the guitar to Sarah for 90 is a legal binding promise 4. 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 Page 2 of 7
QUESTION 4 What is the highest court that hears civil cases from Scotland? a) Inner House b) Supreme Court c) Outer House d) House of Lords QUESTION 5 Anna is the organizer of a music event featuring Hotplay. Tickets cost 60. Unfortunately the lead singer is unwell and she is forced to cancel the event. She offers a full refund to all those people who have booked tickets. Serge wants to claim from Anna the cost of his non refundable train ticket to get to the event. However Anna points to clause 1 in the terms and conditions on the back of the ticket which states that In the event of cancellation, liability is limited to the face value of the ticket Which of the following statements is incorrect? a) Clause 1 is a limitation clause b) Clause 1 is a term of the contract because notice was given of it before Serge entered the contract c) Clause 1 is a term of the contract because it appeared on a ticket d) Clause 1 is a term of the contract because such terms are commonly found in entertainment contracts and will be incorporated by virtue of custom and practice QUESTION 6 In relation to breach of contract which of the following sentences is correct a) Damages can be claimed for distress or disappointment in all contracts b) The innocent party is under a duty to mitigate their losses c) All breaches of contract are material d) A material breach of contract entitles the innocent party isto damages only Page 3 of 7
QUESTION 7 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? 1. The price ticket stating 25 is an offer 2. Kim makes an offer of 25 to buy the jacket 3. The shop must sell Kim the jacket for 25 as she saw the lower price ticket 4. 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? 1. False statement of opinion 2. False statement of fact 3. Reliance on the information given 4. 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 Page 4 of 7
QUESTION 10 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? 1) An agency contract always has to be in writing 2) An agent must always act in good faith 3) An agent in emergency situations is known as a jus quaesitum tertio 4) 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? 1) The Council was not held liable. 2) The Council was held vicariously liable 3) The plaintiff succeeded in her claim using res ipsa loquitur Page 5 of 7
4) The plaintiff s damages award was reduced due to contributory negligence ANSWER: a) 1 and 3 b) 2 and 4 c) 1 only d) 4 only QUESTION 14 If I am a primary victim of negligence suffering psychiatric injury, what do I need to prove? 1. A duty of care was owed, the duty was breached, and my loss resulted from the breach 2. Close ties of love and affection, proximity in space and time, and direct exposure to the incident 3. Vicarious liability of the defender 4. Clinical negligence ANSWER: a) 2 and 4 b) 3 and 1 c) 1 only d) 2 only QUESTION 15 In Kay s Tutor v Ayrshire & Arran Health Board a baby admitted with meningitis was incorrectly given penicillin. The case failed for which of the following reasons? 1. The hospital did not owe the baby a duty of care 2. The hospital did not breach its duty of care to the baby 3. The hospital was not vicariously liable for the negligent actions of the staff 4. The hospital s breach of its duty did not cause the babies injuries ANSWER: a) 1 only b) 2 and 4 c) 3 only d) 4 only Page 6 of 7
QUESTION 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 Page 7 of 7