ACA Business Law 3

Question 1

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?

Accepted Answer

Section 14(2)

Answer

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.

Question 2

Which of the following is a characteristic of a public company (PLC) that distinguishes it from a private company under the Companies Act 2006?

Accepted Answer

A PLC can offer shares to the public

Answer

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.

Question 3

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?

Accepted Answer

Respondeat superior

Answer

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.

Question 4

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?

Accepted Answer

Administrator

Answer

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.

Question 5

In English contract law, misrepresentation is a false statement of which of the following?

Accepted Answer

Existing fact

Answer

Misrepresentation is a false statement of existing fact (not opinion, future intention, or law) that induces the other party to enter the contract.

ACA ICAEW Practice Test

ACA ICAEW Practice Test

ACA Business Law 3