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Q1: The term ‘wrongful interference with goods’ is a collective term for which two torts

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Answer: Trespass to goods and conversion.

Q2: Which ONE of the following is NOT an example of interference under the tort of trespass to goods

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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.

Q3: What is the tort of conversion

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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.

Q4: In relation to determining the liability of an occupier of premises, why is it important to distinguish between lawful and non-lawful visitors

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Answer: The duty of care owed to lawful visitors is different to that owed to non-lawful visitors.

Q5: In relation to the distinction between a private nuisance and a public nuisance, which ONE of the following statements is untrue

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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.

Q6: In relation to private nuisance, which ONE of the following statements is untrue

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Answer: The motive behind a person’s act of interference is irrelevant.

Q7: In relation to public nuisance, which ONE of the following statements is untrue

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Answer: The claimant must establish that he suffered the same harm as the class of persons concerned.

Q8: Regarding the difference between libel and slander, which ONE of the following statements is untrue

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Answer: Slander is only ever actionable if the slander causes damage.

Q9: What is vicarious liability

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Answer: Vicarious liability refers to a situation where liability is imposed on one person for the acts of another person.

Q10: Which ONE of the following is NOT required in order to impose vicarious liability on an employer

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Answer: The employee must have acted negligently.

Q11: Today, how do courts determine whether a person is an employee

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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.

Q12: What is the ratio of Lister v Hesley Hall Ltd

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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.

Q13: Vicarious liability can arise outside of the employer-employee relationship. Bearing this in mind, which ONE of the following statements is untrue

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Answer: An owner of a business can be vicariously liable for the acts of his independent contractors.

Q14: What is ‘subrogation?’

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Answer: The ability to take on the legal rights of others.

Q15: Statement “The defence of contributory negligence applies to all torts.”

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Answer: Incorrect

Q16: Which ONE of the following is NOT required to establish the defence of volenti

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Answer: The claimant must have voluntarily assumed the risk of injury.

Q17: With regard to the defence of statutory authority, which ONE of the following statements is NOT true

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Answer: The granting of planning permission amounts to statutory authority.

Q18: What is ex turpi causa non oritur actio

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Answer: The rejection of the claimant’s action on the ground that he was engaged in an illegal act when he sustained the loss.

Q19: Regarding the defence of contributory negligence, which ONE of the following statements is NOT true

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Answer: Under statute, contributory negligence can be pleaded in relation to all torts, except wrongful interference with goods.

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

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Answer: Where the claimant was intoxicated.

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

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Answer: Wrong – False

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

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Answer: Apr-2014

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

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Answer: Wrong – False

Q24: What are aggravated damages

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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.

Q25: Regarding sole proprietorships, which ONE of the following statements is NOT true

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Answer: Sole proprietors are not permitted to take on employees.

Q26: Identify which ONE of the following statements is NOT true

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Answer: A partnership only comes into existence once it starts trading.

Q27: There exists a special form of partnership called a limited partnership. Which ONE of the following statements concerning limited partnerships is NOT true

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Answer: Limited partners have limited liability while taking part in the management of the firm.

Q28: Which ONE of the following is NOT a term implied by the Partnership Act 1890

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Answer: All the partners are entitled to be fairly remunerated for their management of the firm.

Q29: Regarding ‘partnership property,’ which ONE of the following statements is NOT true

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Answer: Partnership property can be used for whatever lawful purposes a partners deems fit.

Q30: The term ‘body corporate’ is applicable to which two types of business form

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Answer: Companies and limited liability partnerships

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

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Answer: A company can be created by the Chancery Division of the High Court.

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

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Answer: Wrong – False

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

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Answer: A public company must have at least two members, whereas a private company need only have one member.

Q34: What is ‘limited liability?’

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Answer: Limited liability refers to the ability of a member to limit his liability.

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

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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.

Q36: Which ONE of the following is NOT a valid reason for ignoring a company’s separate personality

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Answer: The court considers it just and reasonable to ignore the company’s.

Q37: Under the Companies Act 2006, in which document would you find the objects of a company

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Answer: The articles of association.

Q38: Regarding the statutory set of model articles, which ONE of the following statements is NOT true

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Answer: Only companies incorporated under the Companies Act 2006 may be governed by the new model articles.

Q39: In relation to a company’s contractual capacity, the ultra vires doctrine has been abolished. True or False

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Answer: Wrong – False

Q40: Statement “A person can be a shareholder, but may not necessarily be a member.”

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Answer: Correct – True

Q41: What is an ‘ordinary resolution?’

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Answer: A resolution that is passed by a simple majority.

Q42: Regarding written resolutions, which ONE of the following statements is true

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Answer: The written resolution procedure cannot be used to remove an auditor before the expiry of his office.

Q43: What is the notice period for the annual general meeting of a public company

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Answer: Twenty-one days, unless the articles provide for a longer period

Q44: What is a ‘quorum?’

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Answer: The minimum number of ‘qualifying persons’ required in order to validly conduct business.

Q45: The general rule is that, at company meetings, each member has one vote per share. True or False

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Answer: Wrong – False

Q46: Are all companies required to hold an annual general meeting (AGM)

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Answer: Only public companies are required to hold an AGM.

Q47: There are restrictions on who can act as a director. Which ONE of the following is NOT a valid restriction

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Answer: An individual with a criminal record cannot act as a director.

Q48: Regarding the division of power between the board and the members, which ONE of the following statements is NOT true

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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.

Q49: Regarding the disqualification of directors, which ONE of the following statements is true

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Answer: A director who contravenes a disqualification order can be personally liable for the debts of the company during the duration of the contravention.

Q50: What is a share’s ‘nominal value?’

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Answer: A fixed amount that represents the notional value of the share’s worth.

Q51: What is a company’s ‘issued share capital?’

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Answer: The total nominal value of shares that have actually been allotted.

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

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Answer: £1.25 million

Q53: The allotment of shares refers to the process whereby shares are created and taken. True or False

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Answer: Wrong – False

Q54: Regarding the company’s power to allot shares, which ONE of the following statements is NOT true

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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.

Q55: Which ONE of the following statements regarding pre-emption rights is NOT true

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Answer: Any company can exclude pre-emption rights by placing a provision in its articles excluding any pre-emption rights.

Q56: In order to reduce capital, a public company must pass a special resolution and obtain court approval. True or False

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Answer: Correct – True

Q57: There are limitations on the issuing and redemption of redeemable shares. Which ONE of the following is NOT an actual limitation

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Answer: Private companies can only issue redeemable shares if authorised by their articles.

Q58: Regarding the distribution of profits, which ONE of the following statements is NOT true

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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.

Q59: Which ONE of the following is NOT a general duty

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Answer: To obtain shareholder approval for substantial property transactions.

Q60: The general duties of a director are only ever owed to the company. True or False

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Answer: Wrong – False

Q61: Which ONE of the following is not a possible effect of a director breaching the duty to act in accordance with the constitution

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Answer: If the transaction outside the constitution is entered into with a third party, then the company can set aside the transaction.

Q62: If the directors exercise their powers for several purposes, how will the courts determine if the proper purpose duty has been breached

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Answer: If the dominant purpose was improper, the duty will be breached.

Q63: Regarding the duty to promote the success of the company, which ONE of the following statements is true

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Answer: Where the interests of the company and its shareholders conflict, preference should be given to the interests of the company.

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)

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Answer: The company’s creditors.

Q65: Directors can never fetter their own discretion. True or False

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Answer: Wrong – False

Q66: Which ONE of the following most accurately describes the duty to exercise reasonable care, skill and diligence

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Answer: The objective element applies to all directors, whereas the subjective element only applies to directors who have some special skill or ability.

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

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Answer: Yes, providing that the articles allow the directors to authorize the transaction, and they do so prior to Scott entering into it.

Q68: Which ONE of the following is NOT a possible consequence of a director accepting an unauthorized third-party benefit

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Answer: The director commits an either-way offence.

Q69: What is the ‘proper claimant’ principle

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Answer: Only the company can commence proceedings for wrongs committed against it.

Q70: Which ONE of the following is the only true exception to the rule in Foss v Harbottle

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Answer: Where the act constitutes a fraud on the minority.

Q71: Which ONE of the following is outside the scope of the statutory derivative claim

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Answer: Where a majority shareholder commits an act of negligence against the company.

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

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Answer: No

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

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Answer: Wrong – False

Q74: Which ONE of the following is unlikely to constitute unfairly prejudicial conduct

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Answer: Mismanagement

Q75: Which ONE of the following is unlikely to result in the company being wound up on just and equitable grounds

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Answer: Where the directors engage in negligence.

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

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Answer: All the shares of the company will be owned by the company’s directors.

Q77: An administrator is appointed to realise a hierarchy of objectives. What is an administrator’s first and principal objective

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Answer: To rescue the company as a going concern.

Q78: An administrator can be appointed in one of several different ways. Which ONE of the following is not a valid method of appointment

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Answer: An administrator can be appointed by the company’s auditor.

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

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Answer: Correct – True

Q80: Regarding the proposal for a company voluntary arrangement, which ONE of the following statements is NOT true

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Answer: If the company is neither in administration or liquidation, the proposal can be made by the directors.

Q81: Regarding the appointment of a receiver, which ONE of the following statements is NOT true

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Answer: A receiver may be a natural person or a body corporate.

Q82: Which ONE of the following does NOT have the right to petition the court for a compulsory winding-up order

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Answer: The auditor of the company

Q83: Which ONE of the following statements describes the difference between a members’ voluntary winding up and a creditors’ voluntary winding up

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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.

Q84: In relation to employment tribunals, which ONE of the following statements in NOT true

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Answer: Decisions of employment tribunals bind the inferior courts.

Q85: Decisions of the Employment Appeal Tribunal can be appealed to the Court of Appeal. True or False

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Answer: Correct – True

Q86: Regarding the Employment Appeal Tribunal (EAT), which ONE of the following statements is true

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Answer: The EAT is entirely appellate and will never hear first-instance cases.

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

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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.

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

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Answer: No

Q89: Employers must provide an employee with a reference if the employee so requests. True or False

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Answer: Wrong – False

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

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Answer: Where the instructions require the employee to relocate.

Q91: Which ONE of the following types of worker would normally be entitled to the national minimum wage

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Answer: Agency workers

Q92: Regarding the national minimum wage, which ONE of the following statements is NOT true

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Answer: An employer who refuses, or wilfully neglects, to pay a worker the minimum wage will commit a summary offence.

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

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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.

Q94: What is the maximum period of maternity leave that an employee is entitled to

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Answer: Fifty-two weeks

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

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Answer: An employer is not liable if an employee sustains an injury due to the negligent actions of another employee.

Q96: Which ONE of the following statements concerning the Health and Safety at Work Act etc 1974 is NOT true

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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.

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

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Answer: Indirect discrimination

Q98: Does an employer need to intend to treat a woman less favourably in order to directly discriminate against her

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Answer: No

Q99: Which ONE of the following groups of persons will not come within the protected characteristic of religion or belief

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Answer: Rastafarians

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

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Answer: Correct – True