Contract Law, Employment Law, and Company Law - Review Questions

This assignment presents a series of solved multiple-choice questions covering various aspects of contract law, employment law, and company law. The questions address topics such as statutory minimum notice periods for employment termination, breaches of contract terms, remedies for contract breaches, enforceability of promises, judicial precedent, statutory interpretation, employment status, the role of a liquidator, constructive dismissal, directors' duties, negligent misstatement, director age limits, creditors' voluntary liquidation, court jurisdiction, standards of proof in criminal cases, rights under the Working Time Regulations, unfair dismissal, vicarious liability, bribery, company structures, limited partnerships, types of directors, contract termination, investment security, and the elements of a binding offer. Additionally, the assignment includes a scenario involving a faulty product and discusses potential legal claims against the retailer and manufacturer, focusing on negligence and the requirements for proving such a claim. Desklib is a valuable resource for students seeking past papers and solved assignments to aid their studies.

Lisa has been employed continuously by M Ltd for 12 years and seven months. What is the statutory
minimum notice period M Ltd must give Lisa to terminate her contract of employment?
Select one:
a. 4 weeks
b. 12 weeks
c. 13 weeks.
B 12 weeks
Ana bought a pair of high heeled shoes from a high street shop. After several days, one of the heels
snapped (during normal use) and Ana suffered a badly sprained ankle as a result. What type of contract
term is likely to have been broken by the shop in this instance?
Select one:
a. Express – written
b. Express – oral
c. Statutory implied
C Statutory implied
If Ana were to sue the shop for damages, on what basis would she be able to claim compensation?
Select one:
a. A sum of money to place her in the position she would have been in if the contract had been properly
performed
b. A sum of money to restore Ana to her pre-contract position
c. A sum of money to punish the shop for breaking the contract
A a. A sum of money to place her in the position she would have been in if the contract had been
properly performed
B Ltd entered into a contract to construct an extension on Charles’ house for £50,000, the work to be
completed by 1st August 2021. B Ltd under-priced the contract and, having started the work, got into
financial difficulties. B Ltd’s Managing Director told Charles that B Ltd would not complete the work
unless Charles paid an extra £25,000. Charles reluctantly agreed to pay the extra money. Which of the
following is accurate in relation to Charles’ promise to pay extra?

Select one:
a. It is enforceable as there was both offer and acceptance
b. It is enforceable as B Ltd provided sufficient consideration by promising to complete the work
c. It is enforceable as Charles received consideration under the ‘practical benefits’ principle: he avoided
the problem of having to locate alternative contractors to complete the work
d. It is probably not enforceable because B Ltd applied unfair financial pressure/economic duress to
Charles.
D It is probably not enforceable because B Ltd applied unfair financial pressure/economic duress to
Charles.
In the context of judicial precedent, a decision made by which of the following courts is most
authoritative?
Select one:
a. Supreme Court
b. Privy Council
c. Court of Appeal
d. Hight Court.
A Supreme Court
In the context of statutory interpretation, which of the following requires judges to consider the plain,
ordinary meaning of the words used in legislation?
Select one:
a. The literal rule
b. The golden rule
c. The mischief rule
d. The purposive approach.
A The literal rule
Inga works as plumber. She occasionally undertakes work for Charterhouse Plumbers Ltd (CP Ltd). CP Ltd
are under no contractual obligation to offer Inga work, and if they do, Inga is under no obligation to
accept it. Inga is only paid for the work she does. When she accepts work, she must provide her personal
services and submit to CP Ltd’s directions. Inga is most likely to be:
Select one:

a. An employee
b. A 'limb (b) Worker' under section 230(3)(b) Employment Rights Act 1996
c. An independent contractor.
c. An independent contractor.
The purpose of a liquidator is to
Select one:
a. Attempt to save a viable company where possible
b. Attempt to save the company and if not viable to do so, wind-up the company and dispose of its
assets in the best interest of the creditors.
c. Wind-up the company and dispose of its assets in the best interest of the creditors.
d. Arbitrate disputes over value of company assets between Directors and creditors, winding-up and
then dispose of assets.
c. Wind-up the company and dispose of its assets in the best interest of the creditors.
Kennet's contract of employment states that he is employed in Newcastle. When his employer tells him
that he has to work in London, some 250 miles away, Kennet immediately resigns. Which of the
following may this be considered an example of?
Select one:
a. Unfair dismissal
b. Summary dismissal
c. Constructive dismissal.
c. Constructive dismissal.
To which of the following does a director owe his/her statutory duties?
Select one:
a. The members personally
b. The company as a whole
c. The board of directors.

B The company as a whole
Edward, an accountant, is hired by C Ltd to prepare a report on the financial strength of C Ltd. Edward is
informed that the purpose of the report is to persuade H Ltd to buy all C Ltd’s shares. Edward prepares
the report but carelessly fails to identify that C Ltd is not profitable. Which of the following is accurate
concerning Edward’s potential liability for negligent misstatement:
Select one:
a. Edward will not be liable to H Ltd because there was no contract between him and H Ltd
b. Edward will not be liable because his advice was prepared for C Ltd, not H Ltd
c. Edward will be liable because the advice was prepared specifically for the purpose of persuading H Ltd
to acquire shares in C Ltd, and it was reasonable for H Ltd to rely on Edward's advice.
d. Edward will not be liable because it was not reasonable for H Ltd to rely on his advice.
B Edward will not be liable because his advice was prepared for C Ltd, not H Ltd
What are the minimum and maximum ages of a company director?
Select one:
a. Minimum 18, no maximum
b. Minimum 16, maximum 70
c. Minimum16, no maximum.
a. Minimum 18, no maximum
What is a creditors' voluntary liquidation?
Select one:
a. When shareholders pass a special resolution to wind up the company and the company is able to
meet its debts in full.
b. When shareholders pass a special resolution to wind up the company and the company is insolvent
i.e. it cannot pay its debts.
c. When the company is subject to a court order requiring it to be wound up, usually because it is unable
to pay its debts

a. When shareholders pass a special resolution to wind up the company and the company is able to
meet its debts in full.
Which court would be likely to try a case involving the recovery of a business debt worth £3,000?
Select one:
a. Magistrates' court
b. High Court
c. Crown Court
d. County court
d. County court
Which of the following described the standard of proof in a criminal case?
Select one:
a. On the balance of probability
b. More likely than not
c. Beyond reasonable doubt.
a. On the balance of probability
Which of the following have rights under the Working Time Regulations 1998?
Select one:
a. Employees only
b. Workers only
c. Employees and workers
d. Employees, workers and independent contractors.
c. Employees and workers
Which of the following have the right not to be unfairly dismissed??
Select one:

a. Employees
b. Employees, workers and independent contractors
c. Independent contractors.
a. Employees
Which of the following is NOT a requirement for an employer to be vicariously liable?
Select one:
a. A tort must have been committed
b. The tort was committed during the course of employment
c. The tort was committed by an employee or someone in an analogous relationship
d. The tort was committed by an independent contractor.
d. The tort was committed by an independent contractor.
Which of the following is NOT bribery under the Bribery Act 2010?
Select one:
a. An individual who accepts payment to perform a public duty
b. A company that offers a client reasonable hospitality
c. An employee of a company who offers a non-financial reward to a public official to perform a public
duty.
b. A company that offers a client reasonable hospitality
Which of the following is true concerning organisations that use the abbreviation 'Ltd' after their
business name?
Select one:
a. The organisation must have an allotted share capital of at least £50,000
b. Members can only pass resolutions at company meetings
c. The organisation may choose to have a single director.
a. The organisation must have an allotted share capital of at least £50,000

Which of the following statements is correct in relation to limited partners?
Select one:
a. Their liability is limited to the capital they have agreed to invest in the partnership
b. They have no liability for partnership debts
c. They have full liability for partnership debts.
a. Their liability is limited to the capital they have agreed to invest in the partnership
Which of the following types of director is expressly appointed as such?
Select one:
a. De jure
b. De facto
c. Shadow
a. De jure
Which of the following will allow the 'innocent party' to terminate a contract?
Select one:
a. Late delivery where the contract states that 'time is to be in every respect the essence of the contract'
b. Late payment
c. Late delivery.
a. Late delivery where the contract states that 'time is to be in every respect the essence of the
contract'
Which of the following would be the most secure form of investment?
Select one:

a. Ordinary shares
b. Preferential shares
c. Debentures secured by a floating charge
d. Debentures secured by a fixed charge.
b. Preferential shares
Which of the following, in the context of entering into a contract, constitutes a binding offer to sell a
unique item of furniture?
Select one:
a. Placing it on display inside a shop with a price attached
b. Placing an advert in the newspaper with a price attached
c. Telling someone the price you may be willing to accept for it
d. Telling someone you will reduce the marked price on it by 10%
c. Telling someone the price you may be willing to accept for it
T plc are a UK manufacturer of consumer electronics. Vic recently bought a fridge-freezer,
manufactured by T plc, for £350 from a local retail outlet, X Ltd. The fridge-freezer was delivered to
Vic’s home address. After one month of use, it caught fire causing extensive damage to Vic’s kitchen,
and both the fridge-freezer and its contents were destroyed. Upon expert investigation, it was
discovered that the accident resulted from a faulty component in the fridge-freezer, which caused the
compressor to overheat.
In order to claim legally Vic might opt for damages against the retailer x limited for the faulty
fridge freezer as it has suffered heavy loss due to the fire which caused extensive damage to its
kitchen.
damages are referred to as that claim which can be opted by the consumer when it has suffered
any loss and the specific performance of the consumer contract is not possible. hence damages
can help it to recover the losses which it has suffered due to the damage caused by the fault of X
limited.

Identify the legal claim that Vic might have against the retailer, X Ltd, in relation to the faulty fridge-
freezer, and explain what Vic would need to prove in order succeed in this claim. (4 marks)
Now assume that the retailer, X Ltd, has recently gone into liquidation, making a claim against it
unlikely to succeed. Explain what Vic would need to prove in order to succeed in bringing a claim
against T plc, the manufacturer of the fridge-freezer, in the tort of negligence. (2 marks)
Negligence is the breach of the legal duty that has been arrived with individual in the
non-performance of act or to do such act which is caused damage to any other person. In order to
bring the claim against T plc Vic Will have to show that because of the negligent act of the
company as they were well aware about the machineries and the products and they are not
checked properly their components and their machines which has caused a loss and the damages
and also fire is being cost which has made the extensive damage in the kitchen appliances and
the fridge freezer was also being destroyed. So for claiming the damages he can tear pie show all
die loss that has been suffered by him due to the negligent act of the Company and all the
accident that has been happen due to die breach of duty to take care of the company and
providing them the faulty components.
Identify the alternative statutory claim Vic may have against T plc, what he would need to prove, and
explain why this claim will be an easier for him to establish rather than an action in the tort of
negligence. (3 marks)
The alternative statutory claim team that can be applied against T plc Is that they can go
for the breach of contract that is being made between the parties as he has got the product with
default and he has a right to sue and to claim for damages for all the faulty components that is
being given without the disclosure of the facts which is being made available as an important
right. In this Vic Can claim for damages as an adequate compensation for contract law the loss
that is been occurred to him because of the act of the company in delivering the faulty fridge
which is being overheated with the compressor. He can go to the court and ask for the damages
and the money that has been given by him and which is adequate sufficient relief that can be
provided to him.
Identify three major differences between public companies and private companies. (3 marks)

The three important differences between the public company and private company are as
follows:
 Minimum members Required: Public company should at least have seven members in
their corporation or organisations for maintaining the business. Whereas private company
should have at least two minimum members for their work in
 Maximum members: Public company have no restriction regarding to the maximum
members that are being involved for their organisation of working procedures whereas, in
the private company it is being restricted to only allow 50 members as the maximum
count for working operation.
 Transferability of shares: In all the private companies there is issue regarding to the
complete restrictions on transfer ability of their shares as it can be made With the article
of association so no transfer of shares is being implemented whereas, public company has
no restrictions regarding to their transfer ability in the shares.
Identify at least three documents a promoter must send to the Registrar of Companies in order to
form a company. (3 marks)
The three most important documents that are being required by the promoter in order to
register the company or memorandum of association, articles of association and prospectus
which will provide the details about the director.
 Memorandum of association will provide all the corporate documents and the jury
diction which is been required by the company and also being referred as a principle
document that helps out to know the analysis and impact of the company.
 Article of Association is generally a document which specifies the operations and the
methods in which a company is going to be regulated. It also defined the purpose for
which the companies being registered and is opened. All such documents will provide out
the task which we are going to accomplish in their organisation. As it also provides the
appointing directors and all the details with the financial records that are being needed for
the company and their work in process.
 Prospectus provides all the information regarding to the investors and shareholders of the
company and also provide the risk of investing in the company in accordance with all the
details and their further issues.