Q1: The term ‘wrongful interference with goods’ is a collective term for which two torts
Answer: Trespass to goods and conversion.Answer
Q2: Which ONE of the following is NOT an example of interference under the tort of trespass to goods
Answer: The defendant locks a room in which the claimant’s goods are located, and refuses to open the door to allow the claimant to obtain his goods.Answer
Q3: What is the tort of conversion
Answer: An intentional act of dealing with goods in a manner that is inconsistent with another’s possession, or in a way that serves to deny another’s right to immediate possession.Answer
Q4: In relation to determining the liability of an occupier of premises, why is it important to distinguish between lawful and non-lawful visitors
Answer: The duty of care owed to lawful visitors is different to that owed to non-lawful visitors.Answer
Q5: In relation to the distinction between a private nuisance and a public nuisance, which ONE of the following statements is untrue
Answer: Damages for loss of enjoyment can be recovered in the case of a private nuisance, but cannot be recovered in the case of a public nuisance.Answer
Q6: In relation to private nuisance, which ONE of the following statements is untrue
Answer: The motive behind a person’s act of interference is irrelevant.Answer
Q7: In relation to public nuisance, which ONE of the following statements is untrue
Answer: The claimant must establish that he suffered the same harm as the class of persons concerned.Answer
Q8: Regarding the difference between libel and slander, which ONE of the following statements is untrue
Answer: Slander is only ever actionable if the slander causes damage.Answer
Q9: What is vicarious liability
Answer: Vicarious liability refers to a situation where liability is imposed on one person for the acts of another person.Answer
Q10: Which ONE of the following is NOT required in order to impose vicarious liability on an employer
Answer: The employee must have acted negligently.Answer
Q11: Today, how do courts determine whether a person is an employee
Answer: The courts will take into account all the facts of the case in order to determine whether or not a person is an employee.Answer
Q12: What is the ratio of Lister v Hesley Hall Ltd
Answer: That whether the tort was committed in the course of the employee’s employment would be determined by how close the connection was between the tort and the employee’s employment.Answer
Q13: Vicarious liability can arise outside of the employer-employee relationship. Bearing this in mind, which ONE of the following statements is untrue
Answer: An owner of a business can be vicariously liable for the acts of his independent contractors.Answer
Q14: What is ‘subrogation?’
Answer: The ability to take on the legal rights of others.Answer
Q15: Statement “The defence of contributory negligence applies to all torts.”
Answer: IncorrectAnswer
Q16: Which ONE of the following is NOT required to establish the defence of volenti
Answer: The claimant must have voluntarily assumed the risk of injury.Answer
Q17: With regard to the defence of statutory authority, which ONE of the following statements is NOT true
Answer: The granting of planning permission amounts to statutory authority.Answer
Q18: What is ex turpi causa non oritur actio
Answer: The rejection of the claimant’s action on the ground that he was engaged in an illegal act when he sustained the loss.Answer
Q19: Regarding the defence of contributory negligence, which ONE of the following statements is NOT true
Answer: Under statute, contributory negligence can be pleaded in relation to all torts, except wrongful interference with goods.Answer
Q20: Regarding the defence of contributory negligence, the standard of care is normally determined objectively, but in certain situations, the courts allow subjective considerations into their deliberations. Which ONE of the following is not such a situation
Answer: Where the claimant was intoxicated.Answer
Q21: In order to establish the defence of contributory negligence, the defendant must show that the claimant’s conduct contributed to the incident that caused the damage he suffered. True or False
Answer: Wrong – FalseAnswer
Q22: In October 2009, Rebecca sustains injuries as a result of Lee’s negligence. In March 2011, she dies of her injuries. Her legal representatives hear of her death in April 2011. When will the limitation period expire regarding any claims in tort that may be made
Answer: Apr-2014Answer
Q23: Damages in tort aim to put the claimant in the position he would have been in had the tort not been committed. True or False
Answer: Wrong – FalseAnswer
Q24: What are aggravated damages
Answer: Damages designed to compensate the claimant for injured feelings or hurt pride, usually as a result of the defendant’s spiteful, malicious or oppressive conduct.Answer
Q25: Regarding sole proprietorships, which ONE of the following statements is NOT true
Answer: Sole proprietors are not permitted to take on employees.Answer
Q26: Identify which ONE of the following statements is NOT true
Answer: A partnership only comes into existence once it starts trading.Answer
Q27: There exists a special form of partnership called a limited partnership. Which ONE of the following statements concerning limited partnerships is NOT true
Answer: Limited partners have limited liability while taking part in the management of the firm.Answer
Q28: Which ONE of the following is NOT a term implied by the Partnership Act 1890
Answer: All the partners are entitled to be fairly remunerated for their management of the firm.Answer
Q29: Regarding ‘partnership property,’ which ONE of the following statements is NOT true
Answer: Partnership property can be used for whatever lawful purposes a partners deems fit.Answer
Q30: The term ‘body corporate’ is applicable to which two types of business form
Answer: Companies and limited liability partnershipsAnswer
Q31: A company can be created in one of three ways. Which ONE of the following is NOT a valid method of creating a company
Answer: A company can be created by the Chancery Division of the High Court.Answer
Q32: If a promoter enters into a contract on behalf of a purported company before that company has yet to be fully incorporated, the contract is void. True or False
Answer: Wrong – FalseAnswer
Q33: There are a number of differences between a public company and a private company. Which ONE of the following is NOT a valid difference
Answer: A public company must have at least two members, whereas a private company need only have one member.Answer
Q34: What is ‘limited liability?’
Answer: Limited liability refers to the ability of a member to limit his liability.Answer
Q35: The case of Salomon v A Salomon and Co Ltd established a number of principles. Which ONE of the following was not a principle established in Salomon
Answer: That a person who owns the vast majority of a company’s shares is to be regarded as the principal of the company or that the company is a trustee for his benefit.Answer
Q36: Which ONE of the following is NOT a valid reason for ignoring a company’s separate personality
Answer: The court considers it just and reasonable to ignore the company’s.Answer
Q37: Under the Companies Act 2006, in which document would you find the objects of a company
Answer: The articles of association.Answer
Q38: Regarding the statutory set of model articles, which ONE of the following statements is NOT true
Answer: Only companies incorporated under the Companies Act 2006 may be governed by the new model articles.Answer
Q39: In relation to a company’s contractual capacity, the ultra vires doctrine has been abolished. True or False
Answer: Wrong – FalseAnswer
Q40: Statement “A person can be a shareholder, but may not necessarily be a member.”
Answer: Correct – TrueAnswer
Q41: What is an ‘ordinary resolution?’
Answer: A resolution that is passed by a simple majority.Answer
Q42: Regarding written resolutions, which ONE of the following statements is true
Answer: The written resolution procedure cannot be used to remove an auditor before the expiry of his office.Answer
Q43: What is the notice period for the annual general meeting of a public company
Answer: Twenty-one days, unless the articles provide for a longer periodAnswer
Q44: What is a ‘quorum?’
Answer: The minimum number of ‘qualifying persons’ required in order to validly conduct business.Answer
Q45: The general rule is that, at company meetings, each member has one vote per share. True or False
Answer: Wrong – FalseAnswer
Q46: Are all companies required to hold an annual general meeting (AGM)
Answer: Only public companies are required to hold an AGM.Answer
Q47: There are restrictions on who can act as a director. Which ONE of the following is NOT a valid restriction
Answer: An individual with a criminal record cannot act as a director.Answer
Q48: Regarding the division of power between the board and the members, which ONE of the following statements is NOT true
Answer: Where the articles vest a general power to manage the company in the directors, the members can still pass an ordinary resolution instructing the directors to act in a certain way.Answer
Q49: Regarding the disqualification of directors, which ONE of the following statements is true
Answer: A director who contravenes a disqualification order can be personally liable for the debts of the company during the duration of the contravention.Answer
Q50: What is a share’s ‘nominal value?’
Answer: A fixed amount that represents the notional value of the share’s worth.Answer
Q51: What is a company’s ‘issued share capital?’
Answer: The total nominal value of shares that have actually been allotted.Answer
Q52: JME plc commences business and issues one million shares with a nominal value of £3 each. The company allows its allottees to pay £1.25 on allotment and the remainder at a later date. All the allottees chose to do this and all the shares are sold. What is JME plc’s paid-up share capital
Answer: £1.25 millionAnswer
Q53: The allotment of shares refers to the process whereby shares are created and taken. True or False
Answer: Wrong – FalseAnswer
Q54: Regarding the company’s power to allot shares, which ONE of the following statements is NOT true
Answer: As any authorization given to allot shares can effectively amount to an indirect changing of the articles, such authorization can only be revoked or varied by the passing of a special resolution.Answer
Q55: Which ONE of the following statements regarding pre-emption rights is NOT true
Answer: Any company can exclude pre-emption rights by placing a provision in its articles excluding any pre-emption rights.Answer
Q56: In order to reduce capital, a public company must pass a special resolution and obtain court approval. True or False
Answer: Correct – TrueAnswer
Q57: There are limitations on the issuing and redemption of redeemable shares. Which ONE of the following is NOT an actual limitation
Answer: Private companies can only issue redeemable shares if authorised by their articles.Answer
Q58: Regarding the distribution of profits, which ONE of the following statements is NOT true
Answer: If the shareholder disagrees with the dividend recommended by the directors, they can increase the dividend that is to be paid by passing an ordinary resolution.Answer
Q59: Which ONE of the following is NOT a general duty
Answer: To obtain shareholder approval for substantial property transactions.Answer
Q60: The general duties of a director are only ever owed to the company. True or False
Answer: Wrong – FalseAnswer
Q61: Which ONE of the following is not a possible effect of a director breaching the duty to act in accordance with the constitution
Answer: If the transaction outside the constitution is entered into with a third party, then the company can set aside the transaction.Answer
Q62: If the directors exercise their powers for several purposes, how will the courts determine if the proper purpose duty has been breached
Answer: If the dominant purpose was improper, the duty will be breached.Answer
Q63: Regarding the duty to promote the success of the company, which ONE of the following statements is true
Answer: Where the interests of the company and its shareholders conflict, preference should be given to the interests of the company.Answer
Q64: The duty to promote the success of the company for the benefit of its members requires the directors to have regard to a list of other factors. Which ONE of the following is NOT present on this list found in s 172(1)
Answer: The company’s creditors.Answer
Q65: Directors can never fetter their own discretion. True or False
Answer: Wrong – FalseAnswer
Q66: Which ONE of the following most accurately describes the duty to exercise reasonable care, skill and diligence
Answer: The objective element applies to all directors, whereas the subjective element only applies to directors who have some special skill or ability.Answer
Q67: Scott is a director of Hazell plc. While acting for the company, he becomes aware of a business opportunity that the company is unable to exploit. He takes advantage of this opportunity himself and makes a considerable profit. Can Scott keep the profit made
Answer: Yes, providing that the articles allow the directors to authorize the transaction, and they do so prior to Scott entering into it.Answer
Q68: Which ONE of the following is NOT a possible consequence of a director accepting an unauthorized third-party benefit
Answer: The director commits an either-way offence.Answer
Q69: What is the ‘proper claimant’ principle
Answer: Only the company can commence proceedings for wrongs committed against it.Answer
Q70: Which ONE of the following is the only true exception to the rule in Foss v Harbottle
Answer: Where the act constitutes a fraud on the minority.Answer
Q71: Which ONE of the following is outside the scope of the statutory derivative claim
Answer: Where a majority shareholder commits an act of negligence against the company.Answer
Q72: Owain is a member of TechnoCorp plc. The directors of TechnoCorp breach their general duty to act for a proper purpose and, as a result, the profits of TechnoCorp are drastically reduced. As a result, the dividend paid to the members is significantly reduced. Can Owain commence a derivative claim
Answer: NoAnswer
Q73: In order to obtain a remedy under s 994 of the Companies Act 2006, a member must show that the conduct complained of was unfair or prejudicial
Answer: Wrong – FalseAnswer
Q74: Which ONE of the following is unlikely to constitute unfairly prejudicial conduct
Answer: MismanagementAnswer
Q75: Which ONE of the following is unlikely to result in the company being wound up on just and equitable grounds
Answer: Where the directors engage in negligence.Answer
Q76: The courts have identified a number of characteristics to help identify whether or not a company is a quasi-partnership. Which ONE of the following is not such a characteristic
Answer: All the shares of the company will be owned by the company’s directors.Answer
Q77: An administrator is appointed to realise a hierarchy of objectives. What is an administrator’s first and principal objective
Answer: To rescue the company as a going concern.Answer
Q78: An administrator can be appointed in one of several different ways. Which ONE of the following is not a valid method of appointment
Answer: An administrator can be appointed by the company’s auditor.Answer
Q79: During the period of administration, unless permission has been obtained from the administrator or the court, no creditor can take steps to enforce his security over the company’s property
Answer: Correct – TrueAnswer
Q80: Regarding the proposal for a company voluntary arrangement, which ONE of the following statements is NOT true
Answer: If the company is neither in administration or liquidation, the proposal can be made by the directors.Answer
Q81: Regarding the appointment of a receiver, which ONE of the following statements is NOT true
Answer: A receiver may be a natural person or a body corporate.Answer
Q82: Which ONE of the following does NOT have the right to petition the court for a compulsory winding-up order
Answer: The auditor of the companyAnswer
Q83: Which ONE of the following statements describes the difference between a members’ voluntary winding up and a creditors’ voluntary winding up
Answer: If a majority of the directors make a declaration of solvency, the winding up will be a members’ voluntary winding up. If no such declaration is made, it will be a creditors’ voluntary winding up.Answer
Q84: In relation to employment tribunals, which ONE of the following statements in NOT true
Answer: Decisions of employment tribunals bind the inferior courts.Answer
Q85: Decisions of the Employment Appeal Tribunal can be appealed to the Court of Appeal. True or False
Answer: Correct – TrueAnswer
Q86: Regarding the Employment Appeal Tribunal (EAT), which ONE of the following statements is true
Answer: The EAT is entirely appellate and will never hear first-instance cases.Answer
Q87: For several reasons, it is important to be able to distinguish between employees and independent contractors. Which ONE of the following is NOT a valid distinction between the two
Answer: Employers do not owe a duty of care in tort to independent contractors, but they do owe a tortious duty of care to their employees.Answer
Q88: Jo enters into a contract with Conway Ltd, which provides that she is a subcontractor of the company and not an employee. Jo signs the contract, but later attempts to rely on a statute that only protects employees. Is the contract’s classification of her as a non-employee conclusive
Answer: NoAnswer
Q89: Employers must provide an employee with a reference if the employee so requests. True or False
Answer: Wrong – FalseAnswer
Q90: There are a number of situations where the employee’s duty of obedience will not apply. Which ONE of the following is NOT such a situation
Answer: Where the instructions require the employee to relocate.Answer
Q91: Which ONE of the following types of worker would normally be entitled to the national minimum wage
Answer: Agency workersAnswer
Q92: Regarding the national minimum wage, which ONE of the following statements is NOT true
Answer: An employer who refuses, or wilfully neglects, to pay a worker the minimum wage will commit a summary offence.Answer
Q93: MultiTech Ltd is taken over by TechnoSoft plc. James, an employee of MultiTech is told that, following the takeover, he will become an employee of TechnoSoft but his job will remain the same. James does not wish to work for TechnoSoft and informs them of this. What will be the likely outcome
Answer: James’ contract of employment will be terminated and he will not be regarded as dismissed, and so will have no legal redress either TechnoSoft or MultiTech.Answer
Q94: What is the maximum period of maternity leave that an employee is entitled to
Answer: Fifty-two weeksAnswer
Q95: Employers owe a tortious duty of care to take care of the health and safety of their employees. Which ONE of the following statements regarding this duty is NOT true
Answer: An employer is not liable if an employee sustains an injury due to the negligent actions of another employee.Answer
Q96: Which ONE of the following statements concerning the Health and Safety at Work Act etc 1974 is NOT true
Answer: Employers can be liable to persons who are not their employees, but only if the employer’s actions cause injury to such person’s health.Answer
Q97: Sharon wishes to apply for a promotion, but her employer tells her that the company is only accepting applications from full-time members of staff and, as Sharon is part-time, she is not eligible to apply. Which form of discrimination is this most likely to be
Answer: Indirect discriminationAnswer
Q98: Does an employer need to intend to treat a woman less favourably in order to directly discriminate against her
Answer: NoAnswer
Q99: Which ONE of the following groups of persons will not come within the protected characteristic of religion or belief
Answer: RastafariansAnswer
Q100: Direct discrimination can occur based not on the protected characteristic of the claimant, but on the protected characteristic of another person. True or False
Answer: Correct – TrueAnswer
