ACA Business Law 2

Question 1

Which of the following accurately describes a general partnership under the Partnership Act 1890?

Accepted Answer

Partners are jointly and severally liable for all firm debts

Answer

Under the Partnership Act 1890, partners in a general partnership are jointly and severally liable for all the debts and obligations of the firm.

Question 2

A contract term that excludes liability for negligence will be subject to which statutory test under UCTA 1977?

Accepted Answer

The reasonableness test

Answer

Under the Unfair Contract Terms Act 1977, clauses excluding liability for negligence (other than death or personal injury) must satisfy the reasonableness test to be enforceable.

Question 3

Under the Companies Act 2006, which document sets out the internal rules governing how a company is managed?

Accepted Answer

Articles of association

Answer

The articles of association govern the internal management of a company, covering matters such as directors' powers, share rights, and decision-making procedures.

Question 4

In employment law, which test is primarily used to determine whether a worker is an employee rather than self-employed?

Accepted Answer

A multi-factor test including control, integration, and economic reality

Answer

Courts apply a multi-factor approach considering control, integration into the business, economic reality, and mutuality of obligation to determine employment status.

Question 5

Which remedy allows a court to set aside a contract as if it had never existed, restoring the parties to their pre-contractual position?

Accepted Answer

Rescission

Answer

Rescission sets aside a voidable contract and restores both parties to their original positions, and is available for misrepresentation, undue influence, or duress.

ACA ICAEW Practice Test

ACA ICAEW Practice Test

ACA Business Law 2