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SCHOOL OF ARTS, SOCIAL SCIENCES AND MANAGEMENT
DIVISION OF BUSINESS, ENTERPRISE AND MANAGEMENT
LEVEL 2 DIET 1
9 JANUARY 2013
MODULE CODE: B2084
MODULE TITLE:Business Law
Section A
Multiple Choice Test Paper
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.
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I am a final year university student. I really need to improve my grades so I pay a fellow student £250 to complete one of my assessments for me. I tell them that it must achieve a mark above 60%. The essay is graded by the marker at 45%. Which of the following statements is correct?
a) There is no consensus in idem so the contract is void.
b) This type of contract is known as pacta illicita and will not be enforced by the courts
c) There is a clear breach of contract and I am entitled to my money back d) There is no breach of contract.
QUESTION 2
Hannah’s son Tom is back home from university. She buys him a microwave to take back to university with him. The first time he uses it when back at university it does not work. What is Tom legally entitled to?
a) Nothing
b) A full refund from the retailer c) A replacement from the retailer d) A repair from the manufacturer
QUESTION 3
Ivan has just enjoyed his 14th birthday and has £250 to spend. He purchases a mobile phone spending all his birthday money on it. His mother is most unhappy with this. Does Ivan have the legal capacity to purchase a £250 mobile phone?
a) Yes, because the age of legal capacity in Scotland is 14 b) No, because the age of legal capacity in Scotland is 16 c) No, because the age of legal capacity in Scotland is 18
Page 3 of 7 QUESTION 4
A bank promises a local money advice charity that it will donate £50,000 to be paid in monthly instalments over the next 2 years. 6 months later the bank decides that due to the current financial crisis that it is unable to continue to provide the funding. Which of the following statements is correct?
a) There is a contract between the bank and the charity and the bank must pay the remaining instalments
b) Only if the promise is in writing will the courts enforce the bank’s promise. c) Only if the promise is in writing or been followed by significant actings will
the court enforce the bank’s promise.
d) The bank has made a legally binding promise and the courts will enforce its promise whether or not it is in writing or followed by significant acting.
QUESTION 5
A retailer places an advert in the press stating the following “This weekend – all bottled lager half price!” Anne visits the store to purchase lager. However, when she gets there she discovers that a mistake has been made and only selected bottled lager is half price. Which of the following TWO statements are correct?
1. The advert is an invitation to treat by virtue of Partridge v Crittenden 2. The advert is an offer by virtue of Carlill v Carbolic Smoke Ball Company 3. The advert is a misrepresentation
4. The advert demonstrates an intention to be legally bound
Answer
a) 1 and 3 b) 2 and 4 c) 1 and 4 d) 2 and 3
Page 4 of 7 QUESTION 6
You are thinking about buying a car. You visit the car dealership at the weekend and the sales person tells you that the car is in “excellent condition”. You return a couple of days later and decide to purchase the car. ”. You subsequently discover that the car is in very poor mechanical shape. The statement that the car is in “excellent condition” is legally:
a) A term of the contract b) An invitations to treat c) A misrepresentation d) Advertisers puff
QUESTION 7
In which of the following contacts would the pursuer NOT be able to claim damages for mental distress if the contract was breached?
a) A contract to deliver groceries to your home b) A contract for a holiday
c) A contract for a jazz band to appear at a wedding d) A contract for cosmetic surgery
QUESTION 8
Donoghue v Stevenson was a landmark case for several reasons: 1. It formulated the ‘neighbourhood’ test
2. It classified victims of negligence as either primary or secondary
3. It created a duty of care between manufacturers and consumers of products 4. It allowed recovery of damages for personal injury for the first time
Answer: a) 1 and 3 b) 1 and 2 c) 2 and 4 d) 2 and 3
Page 5 of 7 QUESTION 9
Graeme goes swimming at the gym. At the entrance before Graeme pays is a
prominent notice stating “Customers use these facilities at their own risk”. None of the lockers is working properly. Graeme is unable to lock his mobile phone away and as a result it is stolen. Which of the following is correct?
a) The statement in the notice has not been incorporated into the contract between Graeme and the gym
b) The statement in the notice is a contractual term.
c) The statement in the notice is a fraudulent misrepresentation.
d) The statement in the notice is a contractual term but the term is void as it is unfair.
QUESTION 10
Which of the following are features of a Scottish partnership? 1. It must publish its accounts.
2. Partners have joint and several liability 3. It has separate legal personality
4. The partnership agreement must be in writing 5. There must be more than one partner
Answer: a) 1, 3 and 5 b) 2, 3 and 4 c) 2, 3 and 5 d) All except 4 e) All except 1
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The leading delict case of Caparo Industries v Dickman reformulated the test for establishing a duty of care in negligence cases. What factors did the court identify as relevant? 1. Proximity 2. Foreseeability of harm 3. Category of losses 4. Causation 5. Policy Answer: a) 1, 2 and 4 b) 2, 3 and 4 c) 1, 2 and 5 d) 2, 4 and 5 e) 3, 4 and 5 QUESTION 12
The ‘thin skull rule’ means that:
a) Sometimes it is the victim’s own fault b) You take your victim as you find him
c) You will only be liable for some of your victim’s injuries
d) A victim with a thin skull or other disability should take extra precautions
QUESTION 13
The principle of ‘vicarious liability’ means:
a) Employers are liable for the misdeeds of their employees committed on work premises only
b) Employers are liable for misdeeds of employees committed during working hours only
c) Employers are liable for misdeeds of employees committed in the course of their employment only
Page 7 of 7 QUESTION 14
Jim and Simon have six large alcoholic drinks in the pub. Simon then offers Jim a lift home, which Jim accepts. Jim forgets to put his seat belt on. Later in the journey Simon crashes the car, badly injuring Jim. Simon’s defences to Jim’s negligence claim could include:
1. Novus actus interveniens 2. Res ipsa loquitur
3. Contributory negligence 4. Volenti non fit injuria
Answer: a) 1, 2, 3 and 4 b) 1, 3 and 4 c) 1 and 2 only d) 3 and 4 only e) 3 only QUESTION 15
I was a first time investor, and I lost money on shares I bought in Royal Scotland Bank plc. I based my decision to invest on a generally available auditors’ statement of company accounts, which mistakenly said the Bank had no subprime mortgage liabilities, when in fact it did. My case against the negligent auditors failed. Why?
1. I am a secondary victim suffering pure economic loss 2. The auditors did not owe me a duty of care
3. Investment decisions are inherently risky, so volenti non fit injuria applies 4. Contributory negligence: I should have checked it out further before investing
END OF SECTION A