ACCA Business and Corporate Law 5

Question 1

Under the UCC, what is the 'battle of the forms' and how is it typically resolved?

Accepted Answer

Additional or different terms in an acceptance that conflict with the offer, resolved by UCC Section 2-207

Answer

UCC Section 2-207 addresses contracts formed when acceptance contains different or additional terms, generally allowing contracts to form while treating conflicting terms as knocked out.

Question 2

What is the primary legal obligation imposed by the Sarbanes-Oxley Act (SOX) on public company executives?

Accepted Answer

CEOs and CFOs must personally certify the accuracy of financial statements

Answer

SOX Section 302 requires CEOs and CFOs to personally certify that financial statements are accurate and complete, creating personal liability for false certifications.

Question 3

In corporate law, what is a 'poison pill' defense?

Accepted Answer

A shareholder rights plan allowing existing shareholders to buy shares at a discount to dilute a hostile acquirer

Answer

A poison pill is a shareholder rights plan that allows existing shareholders to purchase additional shares at a discounted price if a hostile bidder acquires a trigger percentage, diluting the acquirer.

Question 4

Which legal doctrine holds employers liable for tortious acts committed by employees acting within the scope of their employment?

Accepted Answer

Respondeat superior

Answer

Respondeat superior ('let the master answer') imposes liability on employers for employee torts committed within the scope of employment.

Question 5

Under contract law, what is the effect of the 'parol evidence rule'?

Accepted Answer

Extrinsic evidence cannot be used to contradict a final written contract

Answer

The parol evidence rule bars the introduction of prior or contemporaneous oral agreements to contradict or vary the terms of a final written contract.

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA Business and Corporate Law 5