MIDDLESEX UNIVERSITY

EXAMINATION PAPER
Academic Year 2019 – 2020
May 2020
MODULE NUMBER: LAW 2130
MODULE TITLE: BUSINESS LAW
MODULE TUTOR’S NAME: Dr Hamiisi Junior Nsubuga
____________________________________________________________________

Time allowed: 3 hours

Total number of questions: 25 Multiple Choice in Section One and 3 essay questions out of 6
in Section 2

Instructions to candidates:
Answer ALL questions from SECTION ONE
AND any 3 questions from SECTION TWO
Each question in section A account for 1 mark.
Each question in section B is worth a maximum of 25 marks. The total (out of 75) will be
converted to a percentage after marking

Materials provided: Answer Booklets

Equipment permitted: None
Total number of pages: 7 (including front cover)

______________________________________________________________________________________________________________________________________________________________________________________________________________

No books, paper or electronic devices are permitted to be brought into the

examination room other than those specified above.

Candidates are warned that credit cannot be given for work that is illegible.

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 SECTION ONE

MULTIPLE CHOICE QUESTIONS – PLEASE ANSWER ALL QUESTIONS

CIRCLING THE CORRECT ANSWER ON THE EXAMINATION PAPER. Each
question carries 1 mark [Total 25%]

1) The Parliament of the United Kingdom consists of:

a) Queen, House of Commons and House of Lords

b) House of Commons, House of Lords and Supreme Court
c) House of Commons and House of Lords
d) House of Commons, House of Lords, Queen and Supreme Court

2) The doctrine of Implied Repeal is used when:

a) Two pieces of legislation conflict

b) Parliament runs out of time to repeal an Act
c) When the House of Lords disagree with the House of Commons
d) When Parliament is prorogued

3) The Magna Carta was issued in:

a) 1214
b) 1215
c) 1216
d) 1217

4) In the UK Court system, what do the initials ‘QC’ stand for?

a) Queens Counsal
b) Queens Counsel
c) Queens Council
d) Queens Counsil

5) The Court at the head of the UK Court hierarchy is:

a) The High Court

b) The Crown Court
c) The Supreme Court

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d) The House of Lords

6) The Golden Rule uses the ordinary meaning of the words of the statute unless there is:

a) Absurdity.
b) Verbosity.
c) Insanity.
d) Illogicality.

7) Which of these cases is not concerned with the communication of a contract

acceptance?

a) Felthouse v Bindley [1862] EWHC CP J35

b) Dick Bentley Productions Ltd v Harold Smith (Motors) Ltd [1965] EWCA Civ 2
c) Dickinson v Dodds 2 Ch D 463
d) Holwell Securities Ltd v Hughes [1974] 1 WLR 155

8) Which case concerns a warranty in a contract?

a) L'Estrange v F Graucob Ltd [1934] 2 KB 394

b) Poussard v Spiers [1876] 1 QBD 410
c) Bettini v Gye [1876] 1 QBD 183
d) Hollier v Rambler Motors (AMC) Ltd [1971] EWCA Civ 12

9) Pinnel v Cole [1602] concerned:

a) Performance of an existing public duty.

b) Performance of an existing duty.
c) Part payment of debt.
d) Past consideration.

10) S.13 Sale of Goods Act 1979:

a) implies into every contract for the sale of goods that the seller has the right to sell the
goods and that they are free from encumbrances

b) implies into every contract for the sale of goods that where goods are sold by
description, the goods will correspond to the description given

c) implies into every contract for the sale of goods in the course of business that the
goods are of satisfactory quality and fit for purpose-unless the defects are brought to the
attention of the buyer

d) implies into every contract for the sale of goods in the course of business that the
goods are

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legally imported and not subject to any regulation or statute to the contrary- unless this has
been brought to the attention of the buyer.

11) Which of the following statements is correct?

a) The Consumer Rights Act deals with Business to Business and Business to Consumer.
b) The Unfair Contract Terms Act deals with Business to Business and Business to
Consumer.
c) The Consumer Rights Act deals with Business to Business and Consumer to
Consumer.
d) The Unfair Contract Terms Act deals with Business to Business and Consumer to
Consumer.
12) Which of the following is not a qualifying condition for Unfair Dismissal protection?

a) The claimant must be an 'employee' according to the common law definition.

b) The claimant must have been continuously employed for at least two years.
c) The claimant must have been provided with a letter stating the reason for the
dismissal.
d) The claimant must have been dismissed.

13) Which of these is not a test for employment:

a) Control test.
b) Integration test.
c) Economic reality test.
d) Obligation test.

14) Which of the following is required for a Negligence action?

a) A breach of the duty of care.

b) A britch of a duty of care.
c) A breech of the duty of care.
d) A beach of the duty of care.

15) Which of the following is not a case concerning Agency?

a) Hely-Hutchinson v Brayhead Ltd [1968] 1 QB 549

b) Freeman and Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480
c) Watteau v Fenwick [1893] 1 QB 346
d) O'Kelly v Trusthouse Forte plc [1983] ICR 728

16) Which of the following statements on Apparent Authority is incorrect?

a) Someone allows another person to appear as if he were his/her agent.

b) Someone allows his/her agent to give the impression that they have more authority
than they have actually got.
c) Someone allows his agent to continue to appear as their agent when the person was an
agent, but is no longer acting in that capacity.

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d) Someone does not gives explicit directions, but it is deemed that the agent has the
necessary authority.

17) Which of the following is correct?

a) The Partnership Act 1887

b) The Partnership Act 1888
c) The Partnership Act 1889
d) The Partnership Act 1890

18) Which of the following is correct?

a) Limited Partnerships Act 1907, Limited Liability Act 2001.

b) Limited Liability Act 2000, Limited Partnerships Act 1909.
c) Limited Partnership Act 1907, Limited Liability Act 2000.
d) Limited Liability Act 2000, Limited Partnerships Act 1907.

19) A debenture holder is:

a) A secured creditor.
b) An unsecured creditor.
c) A secure creditor.
d) An insecure creditor.

20) Re: Yorkshire Woolcombers Association Ltd ([1903] 2 Ch 295 defined the characteristics
of:

a) A Fixed Charge.
b) A Constant Charge.
c) An Alternating Charge.
d) A Floating Charge.

21) The initials CDDA stand for:

a) The Company Directors Disentitlement Act 1986

b) The Company Directors Disqualification Act 1986
c) The Company Directors Disablement Act 1986
d) The Company Directors Dismissal Act 1986

22) The Companies Act 2006 s.175 concerns:

a) The duty to exercise reasonable care, skill and diligence.

b) The duty to exercise independent judgement.
c) The duty to promote the success of the Company.
d) The duty to avoid conflicts of interest.

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23) The Insolvency Act s.213 concerns:

a) Wrongful trading.
b) Wilful trading.
c) Fraudulent trading.
d) Fanciful trading.

24) The Insolvency Act s.214 concerns:

a) Wrongful trading.
b) Wilful trading.
c) Fraudulent trading.
d) Fanciful trading.

25) A Derivative Action is said to be properly brought by:

a) The Company itself.

b) A Shareholder.
c) A Director.
d) All Shareholders.

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 Section 2

1. Directors owe their duties to the company and may be held liable for breaching such
duties. Explain the operation these duties with reference to relevant statutes and common law.

2. In order to distinguish an employee from an independent contractor or an agency worker,

the law uses several tests. Explain these tests with reference to case law.

3. Exclusion Clauses may be used to limit or exclude liability in contracts. Explain how such
clauses may be controlled by common law and statutes.

4. Compare and contrast the main defences to the tort of Negligence using relevant case law.

5. Distinguish between fixed charges and floating charges and explain the stages taken to
register these charges.

6. What is the tort of negligence? Explain the elements which a claimant must satisfy for a
successful claim under the tort of Negligence.

END OF PAPER