AAT L2 Introduction to Business and Company Law 4

Question 1

The Employment Rights Act 1996 provides employees with which of the following rights?

Accepted Answer

The right to a written statement of employment terms, protection from unfair dismissal, and redundancy pay entitlement

Answer

The Employment Rights Act 1996 provides key employee rights including a written statement of employment particulars within two months, protection from unfair dismissal (after qualifying service), statutory redundancy pay, and minimum notice periods.

Question 2

A company is incorporated by registering with:

Accepted Answer

Companies House

Answer

A company is legally created (incorporated) by registering with Companies House. The application must include the memorandum and articles of association, details of directors and the registered office, and a statement of capital. Companies House then issues a certificate of incorporation.

Question 3

Vicarious liability means:

Accepted Answer

An employer can be held liable for wrongful acts committed by employees in the course of their employment

Answer

Under the principle of vicarious liability, an employer can be held legally responsible for the wrongful acts (torts) of employees committed during the course of their employment. This includes negligence and other wrongful acts carried out while performing job duties.

Question 4

The difference between void and voidable contracts is:

Accepted Answer

A void contract has no legal effect from the start; a voidable contract is valid until one party chooses to set it aside

Answer

A void contract is treated as if it never existed — it has no legal force from the outset (e.g., a contract for an illegal purpose). A voidable contract is valid and binding unless and until one party (the innocent party) chooses to avoid it (e.g., due to misrepresentation or duress).

Question 5

Under UK law, an employer must provide employees with a written statement of employment particulars within:

Accepted Answer

The first day of employment (principal statement) with remaining details within two months

Answer

Since April 2020, employers must provide a principal statement of key employment terms on or before the employee's first day of work, with the remaining particulars provided within two months of the start date. This is a legal requirement under the Employment Rights Act 1996.

AAT Level 2 Practice Test

AAT Level 2 Practice Test

AAT L2 Introduction to Business and Company Law 4