Business Law Flashcards
7 cards from real ACA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Law flashcards as text
Under the Sale of Goods Act 1979, which implied term requires that goods supplied in the course of a business must be of satisfactory quality?
Answer: Section 14(2)
Section 14(2) of the Sale of Goods Act 1979 implies that goods sold in the course of a business must be of satisfactory quality, considering fitness for purpose, appearance, and durability.
Which of the following is a characteristic of a public company (PLC) that distinguishes it from a private company under the Companies Act 2006?
Answer: A PLC can offer shares to the public
A public limited company (PLC) is permitted to offer its shares to the public and have them traded on a stock exchange, whereas private companies are prohibited from doing so.
Which Latin maxim describes the principle that an employer is vicariously liable for the wrongful acts of an employee committed in the course of employment?
Answer: Respondeat superior
Respondeat superior ('let the master answer') establishes that an employer is liable for torts committed by an employee acting within the scope of their employment.
Under the Insolvency Act 1986, which professional is appointed to manage a company's affairs with the primary objective of rescuing the company as a going concern?
Answer: Administrator
An administrator is appointed under the Insolvency Act 1986 with the primary objective of rescuing the company as a going concern, and has broad powers to manage the company's affairs.
In English contract law, misrepresentation is a false statement of which of the following?
Answer: Existing fact
Misrepresentation is a false statement of existing fact (not opinion, future intention, or law) that induces the other party to enter the contract.
Which of the following best describes the rule in Turquand's Case (1856)?
Answer: Third parties dealing with a company are entitled to assume internal procedures have been followed
The rule in Royal British Bank v Turquand (1856) protects third parties acting in good faith by entitling them to assume that internal management requirements of a company have been properly observed.
Under the UK Corporate Governance Code, which board committee is responsible for overseeing the integrity of the company's financial statements and the external audit process?
Answer: Audit committee
The audit committee, comprising independent non-executive directors, monitors the integrity of financial reporting and the effectiveness of the external and internal audit functions.