Acca mock 1

express authority

hey can make decisions for the person who gave them the authority and even sign contracts on their behalf

Implied authority

agent with the jurisdiction to perform acts that are reasonably necessary to accomplish the purpose of an organization

criminal offences is correct?

A summary offence is a minor criminal offence

criminal law

• It aims to punish wrongdoers

• The standard of proof is beyond reasonable doubt

Which of the following statements would NOT be binding on a later court?

One which was part of an obiter dictum

To be binding, the statement must be part of the ratio decidendi - the rationale behind the case, rather than the obiter dicta - statements made by the way.

For each of the following statements regarding human rights, indicate whether it is true or false.

The government can never enact new legislation which is incompatible with the European Convention on Human Rights - False

Existing legislation must be interpreted in a way which is compatible with the European Convention on Human Rights - True

Which TWO of the following statements regarding legislation are correct?

Those who draft statute cannot anticipate every case which may arise

 

The electoral system means that the statute-making process responds to public opinion

When interpreting statute, a judge may give words meanings which deviate from their ordinary, everyday meanings, in recognition of the problem the statute was written to address.

The mischief rule

THE LITERAL RULE

s where the courts simply look at the words of the statute and apply them as they are written giving them their ordinary and natural meaning.

THE GOLDEN RULE

Allows judges to depart from the literal meaning if it leads to an absurdity.

Joel and Kerry are the son and daughter of Marion. Marion has asked them to clean their rooms, ready for their grandparents’ visit. She said she would give them each £10 for doing so. Which TWO of the following statements are true?

oel, Kerry and Marion do not have the requisite intention to create legal relations

 

There is a lack of mutuality about this arrangement, which means that it will be unenforceable as a contract

In which of the following situations is it NOT possible for a third party to enforce an obligation?

Where the subject matter of the agreement is a gratuitous promise

Assignment of the benefit of a contract is possible, unless it is a personal or assignment is barred. Third parties can also enforce contractual obligations if it is clear from the terms of the contract that is intended. Gratuitous promises are unenforceable in any event, as they are unsupported by consideration

For each of the following statements regarding contractual terms, indicate whether it is true or false.

A representation is a statement which induces the formation of a contract but does not become a term of the contract - True

 

A term can be implied into a contract by the courts in order to make the contract work in practice - True

Rebecca bought a home computer for personal use from a sole trader, trading as Computers to Go. When she got the computer home she found that it didn't work. She returned the computer to the shop, but the retailer refused to refund her money and pointed to a sign placed above the door inside the shop, which she had not seen and which stated:  

‘All products must be inspected before any sale is concluded. In the event of any defect, no liability will be accepted and refunds will not be given.’

Rebecca is dealing as a consumer - True

 

The exclusion clause has been incorporated into the contract with Rebecca - False

 

The law relating to unfair contract terms will not apply to Computers to Go as it is a sole trader - False

 

The exclusion clause would need to be fair to be effective - True

Which of the following is NOT a duty owed by an employee?

To indemnify their employer

To indemnify the employee against expenses and losses - Common law

 

To provide work for apprentices - Common law

 

To pay a minimum wage - Statutory

To provide time off work to undertake trade union duties - Statutory

Statutory law consists of laws written and enacted by a legislative body

Common law is a term used to refer to law that is developed through decisions of the court,

Which of the following factors indicates self-employed status?

Arranging substitute labour to cover illness and holidays

Which of the following statements regarding summary dismissal is correct?

Without justification, it allows a claim for wrongful dismissal

Wrongful dismissal is dismissal in a manner which breaches the contract of employment, and an unjustified absence of notice would fall into this category.

Which of the following statements concerning the personal liability of an agent on contracts is correct?

An agent is liable on a contract if it is usual business practice for them to be liable

 

Jasper is the manager of a sports shop. Ravan, the shop owner, allows Jasper to order running equipment but has told him he must not order any other sports equipment. However, Jasper decides to place an order for cycling accessories. Ravan refuses to pay the cycling supplier.

Ravan is liable because Jasper acted within his implied authority as store manager

Which TWO of the following companies CANNOT lawfully be created?

A public limited company without share capital

 

A public company limited by guarantee

 

A public limited company must always have share capital and therefore one cannot be created without share capital. Companies limited by guarantee do not have

Which of the following documents is NOT required to be registered in order to form a company?

The details of the first auditor

Which TWO of the following statements about the share premium are true?

	It can be used for the expenses of previous share issues
	It can be used for an issue of bonus shares in the future

March 20X3, the board of Jaygee plc considers an allotment of more £2 ordinary shares. The shares will be partly-paid but carry a premium of £2.50.

What minimum payment for the shares will the purchasers have to make?

25% of the nominal value, plus the full premium

Malcolm wishes to offer a warehouse that he owns in return for a substantial number of the shares to be allotted.

Indicate whether the following statements about Malcolm’s offer are true or false.

The number of shares which could be purchased in return for the warehouse would be determined by an independent valuation of the building - True

 

Malcolm would need to give an undertaking to transfer the property by March 20X8 - True

It is possible for a non-cash consideration to be accepted in return for shares. In this situation, the consideration needs to be performed within five years and a valuation report based on an independent assessment will form the basis of the transaction.

Which TWO of the following statements concerning the distribution of a company’s dividends are true?

In all cases, the distribution must come from accumulated realised profits, less accumulated realised losses

 

No distribution may come from the capital redemption reserve

Apparent authority

ct on behalf of a principal, even though not expressly or impliedly granted. 

For each of the following statements regarding directors' powers, indicate whether it is true or false.

Directors' powers can be restricted by the company's articles of association - True

 

The directors must exercise their powers in the best interest of the members - False

According to the Companies Act 2006, which of the following is NOT allowed to act as an auditor of a company?

An employee of the company

Which types of company must hold an annual general meeting?

Public companies only

Which TWO of the following statements apply to a creditors’ voluntary liquidation?

A liquidation committee is formed

 

A meeting of members will be called

 

To rescue the company as a going concern - Administrator

 

To realise and distribute - Liquidator

With a court order - Unsecured creditors

 

Without a court order - Floating chargeholder

 

A company can be placed into administration without a court order by floating chargeholders, directors and the company itself. The unsecured creditors need to apply to the court for an administration order. This route is also open to the company, directors and magistrates' court for non-payment of a fine.