21 Which of the following is an English court NORMALLY bound to follow?

　　A、 An obiter statement of a higher court

　　B、 A ratio of a lower court

　　C、 A ratio of a court at the same level

　　D、 An obiter statement of the Supreme Court

　　22 Which of the following courts hear appeals from the magistrates’ court?

　　(1) County court

　　(2) Crown Court

　　(3) High Court

　　A、 (1) and (2) only

　　B、(2) and (3) only

　　C、 (1) and (3) only

　　D、 (1), (2) and (3)

　　23 Which of the following is NOT an automatic consequence of a compulsory winding up order against a publiclimited company?

　　A、 Transfers of shareholdings are suspended

　　B、 Liquidation is deemed to start on the date of the issuing of the order

　　C、 Directors cease to exercise any management power

　　D、 Employees are immediately dismissed

　　24 Which TWO of the following apply to shares of companies whose names end in ‘Ltd’?

　　(1) They may not be issued to non-members

　　(2) They may not be offered to the public

　　(3) They may not be transferred

　　(4) They may not be traded on the stock exchange

　　A、 (1) and (2)

　　B、 (2) and (3)

　　C、 (1) and (4)

　　D、 (2) and (4)

　　25 Which of the following statements regarding the age limits for serving as a director in a public limited company is true?

　　A、 Minimum age 16 years and no maximum age

　　B、 Minimum age 21 years and no maximum age

　　C、 Minimum age 21 years and maximum age 75 years

　　D、 Minimum age 16 years and maximum age 75 years

　　26 Which TWO of the following are private law actions?

　　(1) Those between individuals

　　(2) Those between business organisations

　　(3) Those between individuals and the state

　　A、 (1) and (2)

　　B、 (1) and (3)

　　C、 (2) and (3)

　　27 In which procedure does a liquidation committee operate?

　　(1) Compulsory liquidation

　　(2) A members’ voluntary liquidation

　　(3) A creditors’ voluntary liquidation

　　(4) Administration

　　A、 (1) and (2)

　　B、 (2) and (4)

　　C、 (1) and (3)

　　D、 (3) and (4)

　　28 The category of treasury shares comes into existence under which of the following circumstances?

　　A、 They are issued as such by a private company

　　B、 They are issued as such by a public company

　　C、 They are purchased as such by the exchequer

　　D、 They are purchased as such by a private or public company

　　29 Which of the following is NOT a source of English law?

　　A、 Custom

　　B、 Equity

　　C、 Public law

　　30 Which of the following are owed a duty of care by auditors when preparing a company’s audit report?

　　A、 A potential investor with no current holding

　　B、 An existing shareholder looking to increase their holding

　　C、 A company looking to make a takeover bid for the company

　　D、 The company and the existing shareholders in the company as a body

　　31 In a potential redundancy situation, an employee may lose the right to payment if they reject an offer of alternative employment within the business. Which of the following will allow the employee to reject the employment offered and claim redundancy?

　　A、 The alternative was suitable but the employee reasonably felt that it was not of the same status

　　B、 The alternative was suitable but the employee refused to consider it

　　C、 The alternative was suitable but the employee’s grounds for refusing to accept it were unreasonable

　　32 Which TWO of the following are reasons for dismissal which must be justified as FAIR?

　　(1) Capability or qualifications of the employee

　　(2) Legal prohibitions relating to the employee

　　(3) Refusal of the employee to join a trade union

　　(4) Taking part in unofficial industrial action

　　A、 (1) and (2)

　　B、 (1) and (3)

　　C、 (2) and (3)

　　D、 (2) and (4)

　　33 What type of contract does an employee have?

　　A、 A contract for service

　　B、 A contract of service

　　C、 A contract for services

　　D A contract of services

　　34 Which of the following describes a pre-contractual statement which does NOT form a term of a contract but induces the contract?

　　A、 A condition

　　B、 A warranty

　　C、 A representation

　　D、 An innominate term

　　35 Which of the following exists as a separate legal entity from its members?

　　A、 An ordinary partnership

　　B、 A limited partnership

　　C、 A limited liability partnership

　　36 Which of the following must a private company ALWAYS have?

　　A、 Shares

　　B、 Limited liability

　　C、 A company secretary

　　D、 A registration certificate

　　37 A breach of a contractual warranty enables the injured party to do which of the following?

　　A、 To sue for damages only

　　B、 To sue for damages or terminate the contract

　　C、 To sue for damages and terminate the contract

　　D、 To terminate the contract only

　　38 In relation to the tort of negligence, which TWO of the following criteria are required to establish the existence of a duty of care?

　　(1) The claimant suffered a financial loss

　　(2) The harm suffered was reasonably foreseeable

　　(3) A relationship of proximity existed between the parties

　　(4) The claimant did not consent to cause the injury suffered

　　A、 (1) and (2)

　　B、 (1) and (3)

　　C、 (2) and (3)

　　D、 (2) and (4)

　　39 In relation to defences to the tort of negligence, which of the following is the consequence of a finding of volenti non fit injuria?

　　A、 It removes the requirement to pay damages

　　B、 It reverses the burden of proof as to who can claim damages

　　C、 It increases the level of damages

　　D It decreases the level of damages

　　40 Which of the following actions is open to a party who has only partly performed work under a contract?

　　A、 Quantum meruit

　　B、 Action for the price

　　C、 Damages

　　D、 Restitution

　　41 Which of the following is an example of the purposive approach to statutory interpretation?

　　A、 The mischief rule

　　B、 The literal rule

　　C、 The golden rule

　　42 Which is the correct minimum period of notice an employee is entitled to after five years’ service?

　　A、 One calendar month

　　B、 Five weeks

　　C、 Ten weeks

　　D、 Five calendar months

　　43 In relation to agency law, ‘warranty of authority’ is provided by which of the following?

　　A、 The agent

　　B、 The principal

　　C、 The third party

　　44 Which of the following correctly applies to the burden of proof in a criminal case?

　　A It must be proved beyond reasonable doubt

　　B、 It must be proved on the balance of probabilities

　　C、 It lies with the prosecution

　　D、 It lies with the defence

　　45 Where a business includes a term in a contract which excludes liability for death and personal injuries throughnegligence, which of the following states the effect of the term?

　　A、 It is invalid

　　B、 It is invalid unless it is reasonable in the circumstances of the case

　　C、 It is valid only if specifically brought to the attention of the other party

　　D、 It is valid if it is clearly included in the contract terms