Business Law
Mock Exam
Course Introduction
Business Law examines the legal principles and frameworks that govern commercial transactions and the operation of businesses. The course covers key topics such as contract law, torts, agency, partnership, corporations, employment law, and the regulatory environment in which businesses operate. Students will analyze case studies and real-world scenarios to understand the legal obligations and rights of individuals and organizations, enabling them to navigate legal risks and ensure compliance with laws and regulations that impact business activities.
Recommended Textbook
Business Law 9th Edition by Andy Gibson
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Chapter 1: Legal Foundations
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Q1) Since Federation, Australia has ratified a large number of international treaties and conventions including which of the following?
A) The Asia Pacific Economic Cooperation (APEC).
B) The Vienna Sales Convention (CISG).
C) The General Agreement on Tariffs and Trade (GATT).
D) All of the above.
Answer: D
Q2) When describing a nation's legal system, the term: 'Common law' can be distinguished from which of the following terms?
A) Equity law.
B) Civil law.
C) Canon law.
D) Statute law.
Answer: B
Q3) Roman law, Canon law and Merchant law are major sources of English law.
A)True
B)False
Answer: False
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Chapter 2: Origins of Australian Law
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Q1) Which High Court case held that Criminal Laws do not apply to Aboriginal people?
A) The Wik People v The State of Queensland and Others (1996) 187 CLR 1.
B) Mabo v Queensland (No 2) (1992) 175 CLR 1.
C) Walker v New South Wales (1994) 182 CLR 45.
D) None of the above.
Answer: D
Q2) Native title is a grant or right created by government.
A)True
B)False
Answer: False
Q3) Separation of powers is a reference to the division of powers between the Commonwealth and the states.
A)True
B)False
Answer: False
Q4) The <i>Statute of Westminster</i> (1931) (Imp) made Australia a federation.
A)True
B)False
Answer: False
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Chapter 3: Legal Systems
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Q1) Which of the following is NOT one of the advantages of ADR (Alternative Dispute Resolution) over formal litigation?
A) ADR is less intimidating than formal litigation.
B) ADR is less expensive than formal litigation.
C) ADR is more likely to be heard quickly than formal litigation.
D) ADR is more authoritative than formal litigation.
Answer: D
Q2) What is the meaning of the term 'court hierarchy'?
A) A tiered court system within each particular jurisdiction.
B) The horizontal arrangement of courts within Australia.
C) A vertical system of appellate courts.
D) The supreme courts of the various states and territories.
Answer: A
Q3) Which of the following matters fall within the original jurisdiction of the Federal Court?
A) State matters.
B) Commonwealth matters.
C) The Australian Constitution.
D) Disputes between states.
Answer: B
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Chapter 4: How Law Is Made: Precedentstatute Law
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Q1) An Act of parliament does not become law until it has received Royal Assent.
A)True
B)False
Q2) A persuasive precedent is one which the lower courts in a court hierarchy must follow.
A)True
B)False
Q3) Which rule would a court be most likely to use to determine whether a public lane would be included in the phrase, 'any house, office, room or place'?
A) Ejusdem generis.
B) Stare decisis.
C) Noscitur a sociis.
D) Obiter dicta.
Q4) The decisions of higher courts in a different hierarchy are binding on lower courts in another hierarchy.
A)True
B)False
Q5) Explain fully the importance of the doctrine of <i>ratio decidendi</i> and <i>obiter dicta.</i>
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Chapter 5: Civil Liability: The Law of Torts and Negligence
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Q1) Much of the law of torts is concerned with accidental injury to the person or property. Do you think that it is appropriate for a person to be made liable for an <i>accidental</i> act?
Q2) The question of whether a duty of care is owed is a question of fact.
A)True
B)False
Q3) A person cannot claim for injury as a result of something which was an obvious risk. A)True
B)False
Q4) The common law rules relating to contributory negligence no longer apply.
A)True
B)False
Q5) The recent statutory reforms to the law of negligence provide that, in the event of contributory negligence on the part of the plaintiff, the court can reduce the defendant's liability by 100%, thereby defeating the plaintiff's claim. Can you think of a situation where it would be appropriate to relieve a negligent defendant from liability entirely?
Q6) Describe what a Plaintiff must do in order to succeed in an action for negligence.
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Page 7
Chapter 6: Applications of Negligence to Business
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Q1) Under the civil liability acts, a 'Good Samaritan' will still be liable for an act done:
A) In assisting a person who has not been injured but who is at risk of being injured.
B) While the Good Samaritan is intoxicated.
C) In giving advice about the assistance of a person who has not been injured but who is at risk of being injured.
D) Honestly and without recklessness.
Q2) A prosecution for criminal negligence means a civil action cannot be taken.
A)True
B)False
Q3) In which case did the House of Lords first suggest that a negligent misstatement could give rise to an action for financial loss?
A) Donoghue v Stevenson [1932] AC 562.
B) L Shaddock & Associates v Parramatta City Council (No 1) (1981) 150 CLR 225.
C) Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465.
D) Esanda Finance Corporation v Peat Marwick Hungerfords (1997) 71 ALJR 448.
Q4) What is a non-delegable duty of care?
Q5) What is meant by the term 'vicarious liability'?
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Page 8
Chapter 7: Introduction to Contracts
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Q1) In the context of contract law, which of the following best describes the element of 'agreement'?
A) Something of value passing from one party to another in return for a promise to do something.
B) An offer by one party and an acceptance by the other.
C) The parties must intend that their promises create legally enforceable obligations.
D) All of the above.
Q2) Which of the following statements does NOT describe a 'simple contract'?
A) A contract created by written or oral words.
B) A contract created by conduct or the actions of parties.
C) A contract that requires a special form or method of creation.
D) A contract that does not require a special form but must have consideration present.
Q3) The Australia Consumer Law has replaced the English common law as a source of law in Australia.
A)True
B)False
Q4) What are the elements that are necessary for the creation of a valid simple contract?
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Page 9
Chapter 8: Agreement Between the Parties
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Q1) In relation to contract law an invitation to treat is best described as:
A) An offer to accept an offer.
B) An offer.
C) An offer to offer an offer.
D) An offer to consider offers.
Q2) List the ways in which an offer may be terminated.
Q3) If an offer is made by facsimile and no method of acceptance is specified by the offeror, which of the following methods of acceptance would NOT be effective?
A) Email.
B) Telephone.
C) Facsimile.
D) Post.
Q4) An offer is NOT terminated by:
A) A counter-offer by the offeree.
B) A request for more information by the offeree.
C) A rejection of that offer by the offeree.
D) A qualified acceptance by the offeree.
Q5) When you purchase goods at an online auction, who makes the offer, who accepts the offer, and when and where is the contract formed?
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Chapter 9: Intention to Create Legal Relations
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Q1) A volunteer intends to create legal relations.
A)True
B)False
Q2) A volunteer worker may not be covered for workers compensation because:
A) They are not an employee.
B) They are unlikely to work on a regular basis.
C) They are working under a domestic agreement.
D) They only work for non-profit organisations.
Q3) Which of the following would best describe the decision in the case of Kleinwort Benson Ltd v Malaysian Mining Corporation [1988] 1 WLR 799?
A) The letter was a 'comfort letter.'
B) The letter written by the holding company was not contractually binding.
C) The letter was not a guarantee.
D) All of the above.
Q4) In relation to the question of whether the parties could be objectively seen to intend to create legal relations, the courts take into account a number of factors. What are those factors?
Q5) What is a letter of comfort?
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Chapter 10: Consideration
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Q1) The promisee is the person undertaking the promise.
A)True
B)False
Q2) Which case is authority for the principle that a promise made after an act is not supported by consideration?
A) Lampleigh v Braithwait (1615) Hob 105; 80 ER 255.
B) Anderson v Glass [1869] 5 WW&A'B(L) 152.
C) Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] AC 847.
D) Roscorla v Thomas [1842] 3 QB 234.
Q3) In which case did the court decide that performance of an existing contractual duty by a group of sailors was not good consideration for the captain's promise to pay extra wages?
A) Glasbrook Bros Ltd v Glamorgan County Council [1925] AC 270.
B) Stilk v Myrick [1809] 2 Camp 317.
C) Roscorla v Thomas [1842] 3 QB 234.
D) Hartley v Ponsonby (1871) 119 ER 1471.
Q4) Estoppel is based on an assumption of fact or law.
A)True
B)False
Q5) Is it possible for past consideration to be good consideration?
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Chapter 11: Capacity of the Parties
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Q1) The beneficiaries in O'Connor v Hart [1985] 1 NZLR 159 were unable to have the contract set aside because:
A) The beneficiaries were not mentally unsound.
B) The beneficiaries were not aware that the farmer was mentally unsound.
C) The beneficiaries could not establish that Hart was mentally unsound and that the other party was aware or should have been aware of this.
D) None of the above.
Q2) If a person becomes mentally ill after entering into a contract, that contract will be voidable.
A)True
B)False
Q3) A corporation has limited contractual capacity.
A)True
B)False
Q4) A contract entered into by a corporation is enforceable:
A) Against the corporation as an artificial person.
B) Against the shareholders of the corporation.
C) Only if the contract is consistent with the corporation's constitution.
D) Against the directors of the corporation.
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Chapter 12: Genuine Consent
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Q1) Where mutual mistake is pleaded, the courts apply an objective standard of the reasonable person.
A)True
B)False
Q2) Which of the following situations appears to involve 'Undue Influence'?
A) A woman gave all of her property to the religious order of which she was a member.
B) The directors of a company issued a prospectus which contained information that was incorrect.
C) A man induced another to sign a contract by telling him that if he did not, he would report his son to the police for committing a criminal offence.
D) An elderly Italian couple sign a mortgage in favour of a Bank guaranteeing their son's debts; the Bank manager knows the couple are unaware of the son's financial difficulties.
Q3) How and why has the common law of misrepresentation been largely superseded by consumer protection legislation such as the Competition & Consumer Act (2010) (Cth)?
Q4) Explain the difference between duress and undue influence.
Q5) Explain the difference between innocent and fraudulent misrepresentation.
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Page 14
Chapter 13: Is the Contract Legal
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Q1) Contracts that are binding in honour only but attempt to oust the jurisdiction of the Courts are valid.
A)True
B)False
Q2) Why was the plaintiff in the case of Re Mahmoud v Ispahani [1921] 2 KB 716 unsuccessful despite the fact that they were innocent of any illegality?
A) The contract was illegal as formed.
B) The statute prohibited the making of the contract.
C) The prohibition was in the public interest.
D) All of the above.
Q3) Restraint of trade clauses are generally void at common law because they:
A) Discourage industry and enterprise and reduce competition.
B) Injure one of the parties by reducing their means of earning a livelihood.
C) Deprive the public of the services of one of the parties.
D) All of the above.
Q4) What are some of the factors that are used to determine whether a restraint of trade is reasonable?
Q5) The courts adopt a different approach depending upon the circumstances in which a restraint may be imposed. Discuss.
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Chapter 14: Terms of the Contract
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Q1) Why did the court imply a term into the contract in The Moorcock (1889) 14 PD 64?
A) Because the practice was so well known it was understood to be included in every contract.
B) To sever a meaningless term and save the rest of the contract.
C) Because of prior dealings between the parties.
D) To overcome an omission and give effect to the intention of the parties.
Q2) If a document containing an exclusion clause is not signed, the clause will not apply. A)True B)False
Q3) What is the court's rationale for distinguishing between 'representations' and 'terms'? Do you agree with this rationale?
Q4) In order for a party to rely on an exclusion clause in a contract, what must they show?
Q5) Courts traditionally interpreted exclusion clauses contra proferentem, or against the interests of the person seeking to rely on it. Why did the courts take this approach, and to what extent has it been displaced by alternative approaches?
Q6) Explain how the courts decide between a mere representation and a term.
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Page 16
Chapter 15: Rights and Liabilities of the Parties, Discharge and Remedies
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Q1) The benefit of frustration is available in which of the following cases?
A) Where one of the parties is subject to financial hardship which makes completion of the contract difficult.
B) Where the cost of completing the contract becomes too high.
C) Where it is inconvenient to complete the contract.
D) Where an unforseen event outside the control of the parties significantly changes their obligations and neither party was at fault.
Q2) Which of the following involves the discharge of a contract by agreement?
A) One of the parties becomes bankrupt.
B) Each party discharges the obligation of the other to perform the contract.
C) One of the parties fails to carry out their obligation completely, and the other party accepts this.
D) Performance of the contract becomes impossible due to the occurrence of an unforeseen event.
Q3) In the case of discharge by performance, the parties are discharged from any obligations provided that performance corresponds exactly with the terms of the contract.
A)True
B)False
Page 17
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Chapter 16: Remedies in Contract
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Q1) Nominal damages are the usual remedy in contract law.
A)True
B)False
Q2) Why did the court refuse to make an order of specific performance in J.C. Williamson Ltd v Lukey & Mulholland [1931] HCA 15?
A) The agreement was not in writing.
B) The Court would have had to supervise the order to ensure compliance.
C) Damages were an adequate remedy.
D) The agreement was not in accordance with the Statute of Frauds.
Q3) Which of the following statements is the best description of 'unliquidated' damages?
A) An amount awarded where the innocent party's rights have been infringed but they have suffered no actual loss.
B) An amount awarded to punish the party in breach of the contract.
C) An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract.
D) An amount not fixed in the contract and left for the court to determine.
Q4) What is a penalty?
Q5) What is meant by the term 'damages'?
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Chapter 17: Statutory Consumer Guarantees and the Australian Consumer Law
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Q1) In some cases the liability of a manufacturer for breach of the consumer guarantees extends beyond the original consumer.
A)True
B)False
Q2) In relation to the consumer guarantee of acceptable quality, which of the following statements is NOT true?
A) The guarantee imposes strict liability on the supplier.
B) Goods must remain acceptable for a reasonable time after sale.
C) 'Acceptable' means they must be reasonable for the purpose described.
D) The test of acceptability is subjective based on the consumer's description.
Q3) Under the Australian Consumer Law goods supplied to a consumer in trade or commerce must be:
A) Correspond with any description or sample.
B) Of acceptable quality.
C) Fit for any disclosed purpose.
D) All of the above.
Q4) Under the Australian Consumer Law, who is a consumer?
Q5) Do you consider that the remedies now available to consumers under the Australian Consumer Law are adequate?
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Chapter 18: General and Specific Consumer Protections
Under the Acl
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Q1) Which of the following is NOT covered by the Australian Consumer Law?
A) Unfair practices in relation to the provision of goods and services to small businesses.
B) Unfair practices in relation to the provision of financial services to consumers.
C) Unfair practices in relation to land transactions.
D) Unfair practices in relation to the provision of goods and services to consumers.
Q2) In relation to 'conduct' under s 18 of the ACL, Accounting Systems 2000 v CCH Australia Ltd (1993) 42 FCR 470 is authority for the principle that:
A) Pre-contractual representations can constitute misleading and deceptive conduct. B) Silence can constitute misleading and deceptive conduct where there is a duty to disclose relevant facts.
C) The act of making a contract containing a false warranty is sufficient to constitute misleading and deceptive conduct.
D) An advertisement which compared a competitor's products unfavourably with the advertiser's products can constitute misleading and deceptive conduct.
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Chapter 19: Agency
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Q1) Authority that is inferred from the conduct of the parties is an example of:
A) Implied actual authority.
B) Express actual authority.
C) Retrospective actual authority.
D) Apparent or ostensible authority.
Q2) What constitutes a 'secret commission' received by an agent? Outline any remedies available to the principal as a consequence of receiving a secret commission.
Q3) The notion of 'apparent authority' means that a principal may be liable for the acts of an agent who behaves contrary to the explicit instructions of the principal. Is this fair? Explain your answer.
Q4) In which of the following cases did the court decide that the agent had breached their duty to act in the principal's interests?
A) Lunghi v Sinclair [1966] WAR 172.
B) Hewson v Sydney Stock Exchange (1967) 87 WN (NSW) 422.
C) Panorama Developments (Guildford) Ltd v Fidelis Furnishings Fabrics [1971] 3 WLR 440.
D) John McCann & Co. v Pow [1973] 1 All ER 129.
Q5) Describe how an agency relationship can be terminated.
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Page 21
Chapter 20: Introduction to Companies and Incorporated Associations
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Q1) Which of the following is NOT one of the options for dealing with a company in financial difficulties?
A) Bankruptcy.
B) Administration.
C) Liquidation.
D) Receivership.
Q2) The decision in ASIC v Gallagher (1993) 11 ACLC 286 was that non-executive directors of a company:
A) May rely on other directors providing them with important information.
B) Have a duty to inform themselves so that they can make independent judgments.
C) Must investigate all matters requiring their approval when they have been put upon enquiry.
D) All of the above.
Q3) In what circumstances will a director be personally liable for the debts of the company?
Q4) An incorporated association will cease to exist if members do not renew their membership.
A)True
B)False
Q5) What is meant by the term 'share capital'?
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Chapter 21: Partnerships
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Q1) If two parties enter into a share farm agreement in which one provides the land and the other provides the labour, this is most likely to be a:
A) Partnership.
B) Employment relationship.
C) Joint venture.
D) Tenancy in common.
Q2) Which of the following statements is NOT correct?
A) A limited partnership must be registered.
B) A limited partner has only a limited role in management of the partnership business.
C) A general partner has unlimited liability for partnership debts.
D) A limited partnership must have at least one general partner.
Q3) A person who obtains credit for a partnership may make themselves liable to the supplier by 'holding out.'
A)True
B)False
Q4) A limited liability partnership can have a maximum of 20 general partners.
A)True
B)False
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Chapter 22: Choosing a Business Entity
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Q1) Explain how and why a sole trader might adopt a discretionary trust as their business structure.
Q2) Which of the following is an accurate description of an implied trust?
A) The trustee has the power to choose the beneficiaries and the amounts to be paid to them.
B) The parties clearly intended to create a trust, but did not express that intention.
C) Each beneficiary is identified in the trust deed and has an equal share in the trust.
D) A person has become the legal owner of property as the result of a breach of fiduciary duty.
Q3) What is a trust?
Q4) What is the purpose of registering a business name?
Q5) Which of the following statements about a partnership is NOT true?
A) Partners must keep their capital separate for tax purposes.
B) It can be difficult to sell a share in a partnership.
C) Partners are unable to contract with the firm.
D) Partnerships can be cheap and quick to establish.
Q6) What is a sole trader?
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Page 24
Chapter 23: Other Business-Related Torts
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Q1) For the tort of passing off to apply, the parties must both be in the same business.
A)True
B)False
Q2) The case of Lumley v Wagner (1852) 42 ER 687 is an example of the tort of:
A) Defamation.
B) Nuisance.
C) Interference with contractual relations.
D) Intimidation.
Q3) Breach of statutory duty is a tort of strict liability.
A)True
B)False
Q4) An apology by the defendant will have no effect on an action for defamation.
A)True
B)False
Q5) Where a statement is made in Parliament, absolute privilege provides a complete defence to a defamation action.
A)True
B)False
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Chapter 24: Insurance
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Q1) In the context of an insurance policy, 'market value' means the cost of the item when purchased new in the market.
A)True
B)False
Q2) In order to claim on a policy, an insured must be able to show that:
A) They have suffered a loss because of the damage to or destruction of the property insured.
B) They have an insurable interest in the property insured.
C) They have either a legal or an equitable interest in the property insured.
D) They are the owner of the property insured.
Q3) Contracts of insurance are contracts of utmost good faith.
A)True
B)False
Q4) Sophie over-insures her car, worth $10,000, for $12,000. If the car is written off, how much would she receive under an indemnity policy?
A) $10,000.
B) $12,000.
C) $2,000.
D) $0.
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Chapter 25: Sale of Goods
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Q1) Which of the following would be classified as 'goods' within the meaning of the Sale of Goods Act?
A) The repair of a watch.
B) A house.
C) A cheque.
D) Apples picked from an apple tree.
Q2) The general rule under sale of goods legislation is that any damage or loss to the goods before property passes to the buyer is carried by the seller.
A)True
B)False
Q3) A Romalpa clause is designed to:
A) Permit the seller to retake possession of the goods if the buyer defaults or goes into receivership or liquidation.
B) Protect the buyer of goods from delivery of unmerchantable or unacceptable goods.
C) Protect the seller of goods from failure of the buyer to pay for the goods.
D) Permit the buyer of goods to retain them against a claim by the holder of security over the goods.
Q4) Define the term 'goods.'
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Chapter 26: Electronic commerce
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Q1) In the context of the Electronic Transactions Act 1999 (Cth), which of the following statements is NOT correct?
A) A contract entered into by electronic means is to be treated in the same way as an equivalent contract entered into by more traditional means.
B) Once an electronic communication has been received it is deemed to have been read and understood.
C) A legal requirement to provide information in writing can be satisfied if the person gives the information by means of an electronic communication.
D) A transaction is not invalid because it took place wholly or partly electronically.
Q2) Which of the following is NOT a remedy for a person who suffers loss or damage as a result of a breach of the Spam Act 2003 (Cth)?
A) Civil penalties.
B) Compensation.
C) Injunction.
D) Recovery of financial benefits.
Q3) What is an electronic communication?
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Chapter 27: Property and mortgages
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Q1) An agreement for lease must contain which of the following terms?
A) Details of the consideration to be paid.
B) The date of commencement and term of the lease.
C) A description of the parties and the property being leased.
D) All of the above.
Q2) Which of the following are entitled to exclusive possession of land?
A) The lessee.
B) The holder of a life estate.
C) The owner in fee simple.
D) All of the above.
Q3) Which of the following statements about common law title is NOT correct?
A) A system of deed registration provides protection of the owner's rights.
B) Any break in the chain of documents can deprive the owner of a good title.
C) Common law title is established by a series of deeds.
D) A mortgage of common law title involves transfer of the title to the lender.
Q4) To place a restriction on the use of land by future owners, it is necessary to:
A) Record an easement on the title.
B) Execute a memorial as part of the chain of title.
C) Record a restrictive covenant as an encumbrance on the title.
D) Register a caveat against the title.
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Chapter 28: Intellectual propert
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Q1) When confidential information is made public, the usual remedy will be:
A) Damages or an account of profits.
B) An order for delivery or destruction of the subject material.
C) An injunction.
D) Any of the above.
Q2) Which of the following situations will constitute an infringement of copyright?
A) The recording of a television broadcast for educational purposes.
B) Copying by a library for research and study by library users.
C) A public reading of the whole of a published literary work.
D) A photograph of a public sculpture.
Q3) Protection under the Copyright Act 1968 (Cth) does not extend to include computer programs.
A)True
B)False
Q4) In the context of copyright law, the term: 'original' means that:
A) The work is the result of the author's own efforts.
B) The work is the expression of a unique idea.
C) The work has literary or artistic merit.
D) The work has not been reproduced.
Q5) What constitutes fair dealing?
Page 30
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Chapter 29: Ethics and business practice
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Q1) What was the ethical issue raised by the McCabe case?
A) Smokers make an informed decision to smoke so are responsible for their own decision.
B) The plaintiff died before the defendant could appeal.
C) The destruction of the documents was legal at the time but made a fair trial impossible.
D) A trial needs to be fair to both parties.
Q2) What are some of the adverse effects of a lapse or not complying with ethical considerations by business?
Q3) The idea that the end does not justify the means is an example of which theory of ethics?
A) Deontological ethics.
B) Utilitarianism.
C) Consequentialism.
D) Moral relativism.
Q4) An organisational integrity program should comprise:
A) A code of conduct.
B) Systems for reporting breaches and auditing compliance.
C) Training to ensure compliance with the corporation's legal obligations.
D) All of the above.
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Chapter 30: Criminal law in a business context
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Q1) Which of the following is the correct definition of embezzlement?
A) Taking a commission from a third party, by a person, without disclosing it to their principal.
B) Falsification of records to hide the misappropriation, by a person, of property entrusted to them.
C) The use, by a person, of price-sensitive information which is not publicly available.
D) Giving another person something of value in return for some advantage or preferential treatment.
Q2) A crime is defined as an offence against the state.
A)True
B)False
Q3) What is the difference between embezzlement and theft/robbery?
Q4) Insider trading is not a criminal offence because no one is harmed by its consequences.
A)True
B)False
Q5) A person charged with a crime is presumed innocent until proved to be guilty.
A)True
B)False
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Chapter 31: Restrictive trade practices
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Q1) Which of the following is NOT a remedy for breach of the provisions of a voluntary industry Code of Conduct?
A) Damages.
B) A corrective advertising order.
C) The granting of an injunction.
D) A fine.
Q2) 'Horizontal price fixing' is an agreement to fix, control or maintain price, made between:
A) Competing businesses at the same level of business activity.
B) Supplier and retailer.
C) Manufacturer and customer.
D) Seller and buyer.
Q3) A supplier who supplies goods to a retailer is allowed to recommend a selling price for those goods.
A)True
B)False
Q4) Increasing the price of petrol during school holidays is often described as predatory pricing.
A)True
B)False
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Chapter 32: Negotiable instruments
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Q1) A bill of exchange is signed by Adam, addressed to Peter and made payable to Paul, who indorses and delivers it to David. In this situation Paul is referred to as:
A) The drawee and the acceptor.
B) The acceptor and the indorsee.
C) The payee and the indorser.
D) The drawer and the payee.
Q2) A bill of exchange is signed by Adam, addressed to Peter and made payable to Paul, who indorses and delivers it to David. In this situation David is referred to as:
A) The drawer and the indorsee.
B) The payee, the indorsee and the holder.
C) The acceptor and the holder.
D) The drawee and the payee.
Q3) A person who has taken a cheque after value has been given but who did not themselves give value is a holder for value.
A)True
B)False
Q4) What is the difference between a cheque crossed as 'Not Negotiable' and a cheque with a general crossing?
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Chapter 33: Insolvency and Debt Recovery
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Q1) In what way is a Part IX arrangement a preferable course of action for a person facing bankruptcy?
Q2) Which of the following persons is entitled to lodge an objection to the automatic discharge of the bankrupt?
A) The trustee in bankruptcy.
B) The bankrupt's unsecured creditors.
C) The bankrupt.
D) The bankrupt's secured creditors.
Q3) Which of the following is NOT an option for a debtor who has been served with a statement of claim?
A) Apply for an instalment order.
B) File a debtor's petition for voluntary bankruptcy.
C) File a defence.
D) Apply for a garnishee order.
Q4) Which of the following is NOT a step to commence bankruptcy proceedings?
A) Creditor serves a bankruptcy notice.
B) Meeting of creditors.
C) Creditor files a petition with court.
D) Debtor commits an act of bankruptcy.
Q5) What are the three main aims of the Bankruptcy Act 1966 (Cth)?
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Chapter 34: The Work Environment and the Employment Relationship
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Q1) When a business is sold, all existing contracts of employment carry forward to the new employer.
A)True
B)False
Q2) Which of the following is NOT a ground for exemption from the workplace discrimination laws?
A) Employment in a small private household.
B) Impairment.
C) Genuine occupational requirement.
D) All of the above.
Q3) The Workplace Health and Safety Act 2011 imposes a duty on customers and visitors to a workplace to take reasonable care for their own safety and that of others.
A)True
B)False
Q4) The term 'managerial prerogative' refers to the right of management to make decisions concerning all aspects of the operation of their business.
A)True
B)False
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Chapter 35: Consumer Credit and Privacy
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Q1) When a borrower makes an application for credit by filling in a form online, this is known as a 'low-doc loan.'
A)True
B)False
Q2) In the context of credit information, which of the following statements about the Privacy Act 1988 (Cth) is NOT correct?
A) The Act is supported by a Credit Reporting Code which is a mandatory industry code.
B) The Australian Information Commissioner deals with complaints by individuals about credit providers and credit reporting agencies.
C) The aim of the Act is to restrict credit information to credit applications and other credit-related activities.
D) The Act prohibits credit providers from accessing information about a borrower's previous history of consumer credit payments.
Q3) The National Credit Code only applies if the debtor is a natural person.
A)True
B)False
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Chapter 36: Ethics and Regulations in Marketing and Advertising
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Q1) Marketing techniques are regulated by:
A) The common law.
B) Restrictive Trade Practices legislation.
C) The Australian Consumer Law.
D) All of the above.
Q2) Management social responsibility practices could be seen as a response to the rise of ethical consumerism.
A)True
B)False
Q3) The distinction between the letter and the spirit of the law is largely a legal problem.
A)True B)False
Q4) The rise of ambush marketing reflects the increasing value of sponsorship of major events.
A)True B)False
Q5) Registration of a design provides protection for up to 70 years.
A)True B)False
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