

Introduction to Law Practice Exam
Course Introduction
Introduction to Law offers students a comprehensive overview of the legal system, its fundamental principles, and the key institutions that shape the rule of law. The course explores the historical development of law, the structure of courts, and the roles of legal professionals. Students will examine the main branches of law, such as civil, criminal, constitutional, and administrative law, and consider how laws are created, interpreted, and enforced. Through case studies and real-world examples, the course emphasizes legal reasoning, the significance of legal rights and responsibilities, and the impact of law on society and individuals.
Recommended Textbook
Business Law 10th Australian Edition by Andy Gibson
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31 Chapters
1386 Verified Questions
1386 Flashcards
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Page 2
Chapter 1: Legal Foundations
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59 Verified Questions
59 Flashcards
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Sample Questions
Q1) Which of the following statements is correct?
A)The Commonwealth of Australia has exclusive powers in respect of some aspects of government.
B)The Commonwealth of Australia has all those powers with regard to government in Australia which are not exercised by the States.
C)The Commonwealth of Australia has overriding powers in all aspects of Australian government.
D)The Commonwealth of Australia has reserve powers which override all aspects of Australian government.
Answer: A
Q2) Which of the following statements is true?
A)The law of Equity applies to all civil disputes.
B)The law of Equity only applies to criminal matters.
C)The law of Equity does not apply to all criminal matters.
D)The law of Equity does not apply to all civil disputes.
Answer: D
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3

Chapter 2: Legal Systems
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Sample Questions
Q1) What is a class action?
A)An action taken by more than one litigant.
B)An action taken by multiple persons with similar claims against another party.
C)An action taken by one person against multiple persons.
D)An action taken against more than one litigant.
Answer: B
Q2) Which of the following is NOT one of the purposes of having a hierarchical court structure?
A)A hierarchy of courts is instrumental in establishing precedent.
B)A hierarchy of courts provides a system of appeals through which dissatisfied litigants may appeal from a decision of a lower court to a high court to have the matter reconsidered.
C)A hierarchy of courts ensures that the decision of any court is final and cannot later be reviewed or overturned.
D)It allows litigants the quickest legal remedy.
Answer: C
Q3) Police are community guardians of the peace.
A)True
B)False
Answer: True
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Chapter 3: How Law Is Made: Precedentstatute Law
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Sample Questions
Q1) Which of the following is NOT 'extrinsic material' within the meaning of s 15AB of the Acts Interpretation Act 1901 (Cth)?
A)Relevant media commentary.
B)Relevant reports of law reform commissions and parliamentary debates.
C)International treaties.
D)The Second Reading speech.
Answer: A
Q2) A medium neutral citation indicates that a judgement is available online.
A)True
B)False
Answer: True
Q3) To be valid,regulations need to be approved by Parliament.
A)True
B)False
Answer: False
Q4) Obiter dictum can never be a binding precedent.
A)True
B)False Answer: True
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Chapter 4: Civil Liability: the Law of Torts and Negligence
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Sample Questions
Q1) The function of the law of tort is to determine when a remedy will be available to a plaintiff.
A)True
B)False
Q2) In the law of tort what is the required standard of proof and who must prove it?
A)The plaintiff must prove its case beyond reasonable doubt.
B)The Crown must prove its case on the balance of probabilities.
C)The plaintiff must prove its case on the balance of probabilities.
D)The Crown must prove its case beyond reasonable doubt.
Q3) Define a tort.
Q4) In a negligence case,the harm suffered by the plaintiff must be:
A)the foreseeable consequence of an action.
B)the result of a careless act.
C)a serious physical injury.
D)all of the above.
Q5) The question of whether a duty of care is owed is a question of fact.
A)True
B)False
Q6) Describe the difference between tort law and contract law.
Page 6
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Chapter 5: Applications of Negligence to Business
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Sample Questions
Q1) A prosecution for criminal negligence means a civil action cannot be taken.
A)True
B)False
Q2) An action for harm caused by a defective product under the Australian Consumer Law requires proof of fault.
A)True
B)False
Q3) It is easier to take action against a manufacturer of a defective product under consumer protection legislation than under the common law because:
A)it is quicker and cheaper.
B)there is no need to prove fault.
C)statute law takes precedence over the common law.
D)the manufacturer is strictly liable.
Q4) In Grant v Australian Knitting Mills [1936] AC 85,the manufacturer:
A)was liable to the customer based on criminal law.
B)was not liable to the customer for breach of an implied term in the contract.
C)was not liable because the customer had the opportunity to inspect the product.
D)was liable for breach of duty of care owed to the customer.
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Chapter 6: Introduction to Contracts
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Sample Questions
Q1) Catching a taxi is an example of this type of contract.
A)A Quasi-contract.
B)An executed contract.
C)An implied contract.
D)An express contract.
Q2) Which of the following is the best description of an 'illegal' contract?
A)The contract remains valid and binding unless and until it is repudiated by the injured party.
B)There are no legal rights or obligations from the outset,and the contract cannot be enforced by either party.
C)While the contract is valid on its face,no legal action can be brought on it.
D)The purpose of the contract contravenes a statute or the common law.
Q3) A simple contract requires which of the following elements?
A)Genuine consent.
B)Consideration.
C)Legality of purpose and form.
D)Legal capacity.
Q4) List and explain five things about your life which would be drastically different if the law of contract could not be used to enforce promises.
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Chapter 7: Agreement Between the Parties
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Sample Questions
Q1) In Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256,the advertisement placed by the company was:
A)an offer.
B)a statement of intention.
C)an invitation to treat.
D)none of the above.
Q2) The decision in the case of Pharmaceutical Society of Great Britain v Boots Cash Chemist (Southern)Limited [1953] 1 QB 401 means that when a customer shops at a supermarket,the offer is accepted and the contract is formed:
A)as soon as the customer enters the supermarket.
B)at the checkout,when the customer accepts the supermarket's offer to sell the goods.
C)when the customer accepts the goods on offer on the shelves by placing them in their basket.
D)at the checkout,when the supermarket accepts the customer's offer to buy the goods.
Q3) As a general rule,an offer may be directed to the world at large.
A)True
B)False
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Chapter 8: Intention to Create Legal Relations
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Sample Questions
Q1) The existence or an intention to create a legally binding agreement is a question of law.
A)True
B)False
Q2) A subjective test is used to determine the state of minds of the parties.
A)True
B)False
Q3) Why was a letter of comfort held to be contractually binding in the case of Banque Brussels Lambert SA v Australian National Industries Ltd (1989)21 NSWLR 502?
A)The letter was vaguely written.
B)The wording of the letter lacked a guarantee.
C)The wording of the letter did not establish intent.
D)The wording of the letter was promissory and intended to create a legally binding obligation.
Q4) It is assumed that a contract of employment is intended between volunteers and charitable organisations.
A)True
B)False
Q5) Describe the purpose of a letter of comfort.
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Chapter 9: Consideration
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Sample Questions
Q1) In which case did the court decide that,while performance of an existing legal duty by police officers was not good consideration for a mine owner's promise to pay,performance beyond what they were legally required to do was good consideration?
A)Anderson v Glass [1869] 5 WW&AB(L)152.
B)Glasbrook Bros Ltd v Glamorgan County Council [1925] AC 270.
C)Stilk v Myrick [1809] 2 Camp 317.
D)Hartley v Ponsonby (1871)119 ER 1471.
Q2) 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.
Q3) All simple contracts require consideration to be present.
A)True
B)False
Q4) Why is consideration important in respect to contracts? In your answer compare the types of consideration supported by relevant cases.
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Chapter 10: Capacity of the Parties
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Sample Questions
Q1) Which of the following types of contract will NOT be enforceable against a minor?
A)Trading contracts.
B)Where the minor pays cash for goods or services.
C)Contracts for necessaries.
D)Beneficial contracts of service.
Q2) A contract becomes voidable if a contracting party becomes mentally ill after entering into the contract.
A)True
B)False
Q3) Contracting with an infant renders the contract void in all circumstances.
A)True
B)False
Q4) Which case is authority for the principle that a trading contract will not be enforceable against a minor,even if the terms of the contract are beneficial?
A)Steinberg v Scala (Leeds)Ltd [1923] 2 Ch 452.
B)Mercantile Union Guarantee Corp Ltd v Ball [1973] 2 KB 498.
C)Bojczuk v Gregorcewicz [1961] SASR 128.
D)Scarborough v Sturzaker (1905)1 Tas LR 117.
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Page 12

Chapter 11: Genuine Consent
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Sample Questions
Q1) Which of the following statements is the best description of an 'innocent' misrepresentation?
A)Silence or non-disclosure about a fact which creates a false impression.
B)A false statement of fact made knowingly,which the other person relies upon and suffers loss.
C)A false statement of fact made with the belief that it is true,which the other person relies upon and suffers loss.
D)A false statement of fact made carelessly,which the other person relies upon and suffers loss.
Q2) Which of the following statements is the best description of 'unconscionability'?
A)The improper use of fraudulent information.
B)The improper use of violence or of threats of violence to induce a contract.
C)The improper use of a position of influence or power to induce a contract.
D)The improper use of a superior bargaining position to induce a contract.
Q3) If there is no special relationship,a claim of undue influence will fail.
A)True
B)False
Q4) Explain the difference between innocent and fraudulent misrepresentation.
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Page 13

Chapter 12: Is the Contract Legal
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Sample Questions
Q1) In which of the following cases did the court decide that the contract was valid but illegal as performed?
A)St John Shipping Corporation v Joseph Rank Ltd [1957] 1 QB 267.
B)Pham v.Doan [2005] NSWSC 201.
C)Anderson Ltd v Daniel [1924] 1 KB 138.
D)Yango Pastoral Company Pty Ltd v First Chicago Australia Ltd [1978] HCA 42.
Q2) The primary distinction made between a 'void' contract and an 'illegal' contract is that:
A)money paid or property transferred under a void contract may be irrecoverable.
B)money paid or property transferred under an illegal contract may be irrecoverable.
C)illegal contracts carry penalties for violation.
D)a void contract will not be enforced by the courts.
Q3) It is important to understand the differences between illegal and void contracts because:
A)they may have different statutory and common law consequences.
B)they form legal contracts.
C)they belong to identical contract categories.
D)all of the above.
Q4) Discuss the factors that determine whether a restraint of trade is reasonable.
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Chapter 13: Terms of the Contract
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Sample Questions
Q1) In which of the following cases did the court decide that the term which had been breached was a condition and not a warranty?
A)Poussard v Spiers & Bond [1876] 1 QBD 410.
B)Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26.
C)Bettini v Gye [1876] 1 QBD 183.
D)Associated Newspapers Ltd v Bancks (1951)83 CLR 322.
Q2) Why was the dry cleaning company held to be liable in Curtis v Chemical Cleaning & Dyeing Co [1951] 1 KB 805?
A)Because the contract so provided.
B)Because the exemption clause in the contract was illegal.
C)Because exemption clauses are not enforceable.
D)Because the purpose of the exemption clause in the contract was misrepresented by the shop assistant.
Q3) The Australian Consumer Law creates guarantees that change depending on the type of manufacturer warranty.
A)True
B)False
Q4) Explain how the courts decide between a mere representation and a term.
Q5) Define a condition and a warranty,and identify their differences.
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Chapter 14: Rights and Liabilities of the Parties,discharge and Remedies
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Sample Questions
Q1) According to the case of Trident General Insurance Co Ltd v.McNiece Bros Pty Ltd [1988] HCA 44,indemnity is not available to a party who is not part of the actual insurance policy.
A)True
B)False
Q2) Why did the court find that the contract was frustrated in the case of: Horlock v Beal [1916] AC 486?
A)Due to the fundamental and radical change in the circumstances of the contract.
B)Due to the declaration of war and the consequent impossibility of performing the contract.
C)Due to the complete destruction of the subject matter of the contract.
D)Due to the non-occurrence of an event essential to achieve the substantial purpose of the contract.
Q3) If there has been substantial performance of the contract,the doctrine of substantial performance may permit the defaulting party to still obtain the contract price.
A)True
B)False
Q4) Explain the meaning of novation and what does it create.
Page 16
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Chapter 15: Remedies in Contract
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Sample Questions
Q1) Which of the following statements is the best description of the remedy of 'injunction'?
A)The injured party is entitled to set aside the contract and be restored to their pre-contractual position.
B)The party at fault is restrained from breaching the contract or from committing a wrongful act.
C)The party at fault is directed to carry out their obligations under the contract.
D)The party at fault has unjustly obtained a benefit at the injured party's expense and is ordered to restore it to the injured party.
Q2) Which of the following statements is the best description of 'liquidated' damages?
A)An amount not fixed in the contract and left for the court to determine.
B)An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract.
C)An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract.
D)An amount awarded to punish the party in breach of the contract.
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Chapter 16: Statutory Consumer Guarantees and the Australian Consumer Law
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Sample Questions
Q1) In the context of a sale by sample the buyer will not be considered to have accepted the goods until they have had the opportunity to examine them.
A)True
B)False
Q2) If a seller does not have title to the goods at the time of transfer,then there is a total failure of consideration.
A)True
B)False
Q3) Why was claim for damages caused by contaminated mink food unsuccessful in the case of: Ashington Piggeries Ltd v Christopher Hill Ltd [1972] AC 441?
A)The food had been made to the plaintiff's specifications.
B)The food still conformed to its description in spite of the contamination.
C)The defendant's were not responsible for the contamination.
D)None of the above.
Q4) Do you consider that the remedies now available to consumers under the Australian Consumer Law are adequate?
Q5) How does a sale by sample differ from a sale by description?
Page 18
Q6) Under the Australian Consumer Law,who is a consumer?
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Chapter 17: General and Specific Consumer Protections
Under the Acl
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Sample Questions
Q1) Why was the conduct found to be misleading and deceptive in Pacific Dunlop v Hogan (1989)23 FCR 553?
A)The use of the name might cause confusion in the minds of some consumers.
B)The conduct created the false impression that a commercial relationship existed between the parties.
C)The conduct was not found to be misleading and deceptive.
D)The misconception was caused by use of an existing name which already had a well-established reputation.
Q2) Which of the following does NOT need to be established in order for a manufacturer to be liable for defective goods?
A)A person is injured.
B)The goods have a safety defect.
C)The injury was foreseeable.
D)The manufacturer supplies goods in trade or commerce.
Q3) Advertising a product at special prices only to tell the consumer the product is no longer available or is available but at a higher price is known as bait advertising.
A)True
B)False
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Chapter 19: Introduction to Companies and Incorporated
Associations
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Sample Questions
Q1) Which of the following types of company are able to invite the public to invest in shares?
A)Large proprietary companies.
B)Unlisted and listed public companies.
C)Small proprietary companies.
D)All of the above.
Q2) In what circumstances will a director be personally liable for the debts of the company?
Q3) With regards to its shareholders and employees,a company is a separate legal entity.
A)True
B)False
Q4) Which of the following is NOT one of the statutory duties of a director under the Corporations Act 2001 (Cth)?
A)Act in good faith.
B)Avoid insolvent trading.
C)Disclose personal interests.
D)None of the above.
Q5) What is a prospectus?
Q6) What are the duties of company directors? Page 20
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Page 21

Chapter 18: Agency
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Sample Questions
Q1) An agent who can only make a particular type of contract or carry out a particular transaction on behalf of the principal is known as:
A)a 'special' or 'limited' agent.
B)a 'universal' agent.
C)an 'independent' agent.
D)a 'general' agent.
Q2) A del credere agent is a general agent who buys and sells without having possession or control of the goods or their documents.
A)True
B)False
Q3) 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.
Q4) In the event of an agent's breach,rescission is a possible remedy for the principal.
A)True
B)False
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22

Chapter 20: Partnerships
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Sample Questions
Q1) The existence of a partnership is to be determined from what the parties do rather than what the parties call themselves.
A)True
B)False
Q2) In the context of a partnership,'joint and several liability' means that:
A)the partners can only be sued separately if action against the firm fails.
B)the partners can be sued collectively in the name of the firm or individually in their own name.
C)any legal action must name the firm and each partner individually.
D)all of the above.
Q3) Is it necessary for a partnership to advise customers when a partner retires?
Q4) Which of the following situations is most likely to be a partnership?
A)Adam and Bruce have agreed to stage a play together and to share gross returns but not liability.
B)Adam and Bruce carry on a restaurant business together.
C)Adam and Bruce own land together;Adam owns two-thirds and Bruce owns one-third.
D)Adam and Bruce own land together as joint tenants.
Q5) Define a joint venture and discuss how it differs from a partnership.
Q6) Identify the three circumstances required as proof of a partnership.
Page 23
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Chapter 21: Choosing a Business Entity
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Sample Questions
Q1) The purpose of business name registration is to prevent consumers being confused.
A)True
B)False
Q2) In choosing a business entity which of the following is NOT a factor in making the decision?
A)Tax implications.
B)Limiting potential liability.
C)Government approval.
D)Opportunity to raise capital.
Q3) Under an express trust,the beneficiary is able to exercise discretion as to who should benefit and how much they should get.
A)True
B)False
Q4) Discuss the trust concept.
Q5) A franchise is a specialised business entity.
A)True
B)False
Q6) Define a sole trader and discuss its advantages and disadvantages.
Q7) What is the purpose of registering a business name?
Page 24
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Chapter 22: Other Business-Related Torts
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Sample Questions
Q1) Which of the following statements is the best description of 'Conversion'?
A)A direct physical interference with another person's lawful possession of land.
B)A direct and intentional act of interference with goods in another person's possession.
C)An intentional denial of another person's right to immediate possession of goods.
D)An unreasonable refusal to return another person's goods to them.
Q2) Which of the following is an example of an economic tort?
A)Intimidation.
B)Misrepresentation.
C)Conspiracy.
D)All of the above.
Q3) Where a statement is made in Parliament,absolute privilege provides a complete defence to a defamation action.
A)True
B)False
Q4) The tort of nuisance is concerned with the use and enjoyment of land.
A)True
B)False
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25

Chapter 23: Insurance
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Sample Questions
Q1) Carla insures her residence for $300,000 when it is in fact worth $500,000.If the contract contains a 'subject to average' clause and a fire causes $100,000 worth of damage,how much is the insurer obliged to pay?
A)$75,000.
B)$60,000.
C)$100,000.
D)$80,000.
Q2) Which of the following statements about fire insurance is correct?
A)A fire policy is a contract of assurance.
B)A fire policy is a contract of contingency.
C)A fire policy is a contract of indemnity.
D)A fire policy is a contract of property insurance.
Q3) Payment of an insurance premium to an insurance broker or agent discharges the liability of the insured to the insurer.
A)True
B)False
Q4) Insurance aims to protect parties by spreading risk.
A)True
B)False
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Chapter 24: Sale of Goodsbusiness to Business
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Sample Questions
Q1) What does 'sale of goods' entail under the Sale of Goods Act?
A)An exchange of goods.
B)An agreement to sell goods.
C)A barter agreement in relation to goods.
D)A lease of goods.
Q2) Which of the following is the best description of 'specific' or 'existing' goods?
A)Goods that are defined by description only,such as 'A bag of apples.'
B)Goods identified and agreed upon at the time of sale,such as 'This apple.'
C)Goods to be manufactured or acquired by the seller after the time of sale,such as 'Your next crop of apples.'
D)Goods which were previously unascertained but have now been identified and agreed upon by the parties,such as 'I accept your selection of apples in this bag.'
Q3) Now that the Competition and Consumer Act 2010 (Cth)contains the major consumer protection provisions,what do you perceive to be the major benefits in a contract for the sale of goods of the various state Sale of Goods acts?
Q4) What are unascertained goods?
Q5) Explain the meaning of the nemo dat rule.
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Chapter 25: Property and Mortgages
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Sample Questions
Q1) The Torrens system of title has a number of advantages over the old common law system of title.What are they?
Q2) A strata title is evidence of ownership of a lot on a horizontal subdivision of land and/or airspace.
A)True
B)False
Q3) Which of the following information is NOT contained in the Torrens title register?
A)The name of the proprietor(s).
B)The nature and extent of all encumbrances.
C)The nature and type of all improvements to the land.
D)Boundaries of the land.
Q4) What is the meaning of the term 'survivorship' in respect to interests in land?
Q5) Describe the three main types of property.
Q6) 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.
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Chapter 26: Intellectual Property
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Sample Questions
Q1) Contrast an infringement of a registered trademark with an action in passing off.
Q2) Which of the following can NOT be protected as a trade mark?
A)A colour.
B)A scent.
C)A shape.
D)None of the above.
Q3) Which of the following statement about design is NOT correct?
A)Designs are used for an industrial purpose.
B)A design must have a visual feature that serves a functional purpose.
C)A 'product' is a thing that is manufactured or hand made.
D)'Design' refers to the overall appearance of a product.
Q4) In order to be enforced,an innovation patent must first be examined and certified by the Australian Patent Office.
A)True
B)False
Q5) The remedy for infringement of a trade mark is an injunction and either damages or an account of profits.
A)True
B)False
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Chapter 27: Ethics and Business Practice
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Sample Questions
Q1) Morals are concerned with the distinction between right and wrong.
A)True
B)False
Q2) ACME Inc.manufactures high-in-demand electronic components.As part of its sales contracts with customers,ACME Inc.requires that customers agree not to hold ACME Inc.liable for more than fair market value for defective components and that customers mediate any dispute they may have with ACME Inc.Is ACME Inc.'s contract unconscionable?
A)Yes,ACME Inc.'s contract is unconscionable,if it is marginally unfair to customers and against good conscience.
B)Yes,ACME Inc.'s contract is unconscionable because its terms are one-sided and grossly unfair to customers.
C)No,ACME Inc.'s contract is not unconscionable because it is transparent about the exact terms.
D)No,ACME Inc.'s contract is not unconscionable because customers still have rights under the contract.
Q3) A business can invest in both a socially responsible as well as socially irresponsible manner.Describe and provide examples of both types of investing.
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Chapter 28: Criminal Law in a Business Context
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Sample Questions
Q1) In the context of criminal law,what is the meaning of the term: actus reus?
A)The guilty mind.
B)The guilty act.
C)The wrongful mind.
D)The wrongful act.
Q2) Which of the following is NOT prohibited by the restrictive trade practices provisions of the Competition and Consumer Act 2010 (Cth)?
A)Resale price maintenance and price fixing.
B)Agreements to restrict competition.
C)Sending commercial electronic messages without the recipient's consent.
D)Boycotts and abuse of monopoly power.
Q3) A breach of the restrictive trade practices provisions of the Competition and Consumer Act 2010 (Cth)will result in:
A)a fine of $10 million.
B)a fine of 5 per cent of the turnover of the preceding 12 months.
C)a fine of five times the illegal benefit obtained.
D)a fine of $100 000 for individuals.
Q4) In respect of a criminal prosecution,who has the burden of proof and what is the standard of proof?
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Chapter 29: Competition Law
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Sample Questions
Q1) How can the restrictive trade practices provisions of the Competition and Consumer Act 2010 (Cth)be reconciled with the liberal notion of a free market?
Q2) Which of the following statements accurately describes the function of the Australian Competition Tribunal?
A)Hearing appeals from decisions to grant or revoke authorisations.
B)Administering and enforcing the Competition and Consumer Act 2010 (Cth).
C)Educating the public and the business community by providing consumer guidance.
D)Authorising otherwise prohibited restrictive trade practices.
Q3) The ACCC may authorise a merger on the condition that:
A)the conduct will result in a benefit to the public.
B)the public benefit outweighs the reduction in competition.
C)the public benefit is outweighed by the reduction in competition.
D)the conduct will not result in a benefit to the public.
Q4) An authorisation is a determination that the conduct is not contrary to the Act.
A)True
B)False
Q5) Describe how the concepts of market and competition are linked and important in respect to trade in Australia.
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Chapter 30: Insolvency and Debt Recovery
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Sample Questions
Q1) The entry of a Part IX debt agreement in the National Personal Insolvency Index:
A)prevents secured creditors from dealing with their security.
B)releases the debtor from all provable debts as if they had been discharged from bankruptcy.
C)releases all guarantors of the debtor's debts from liability.
D)releases persons who owe debts jointly with the debtor from liability.
Q2) A recovery action cannot be undertaken until a court judgment has been obtained.
A)True
B)False
Q3) If a company experiences severe financial difficulties,an administrator:
A)May force it into bankruptcy.
B)May terminate the business.
C)Cannot dispose of part of the company's property.
D)Cannot perform the duties of a corporate officer.
Q4) A bankrupt who fraudulently conceals property with the intent to defraud creditors may be imprisoned for up to three years.
A)True
B)False
Q5) What are the ways in which a person can become bankrupt?
Q6) What are the three main aims of the Bankruptcy Act 1966 (Cth)?
Page 33
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Chapter 31: The Work Environment and the Employment Relationship
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Sample Questions
Q1) Which of the following duties of an employee continue after the employment has ceased?
A)The duty to account for all money or property received in the course of their employment.
B)The duty to hand over inventions made during the course of their employment.
C)The duty to disclose information relevant to the employer.
D)The duty to obey the employer's lawful,reasonable and safe commands.
Q2) The terms 'unlawful termination' and 'unfair dismissal' have the same meaning.
A)True
B)False
Q3) Briefly explain how equal opportunity in the workplace is an alternative to discrimination and its relationship with the principle of affirmative action.
Q4) The use of 'outsourcing' and independent contractors is a manifestation of the practice of business 'downsizing' in order to reduce their workforce.
A)True
B)False
Q5) What are the aims of Occupational Health and Safety Legislation?
Page 34
Q6) Outline the duties of the employer and employee.
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