FREE SRA SQE Business Law and Legal Services Questions and Answers

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A private limited company was incorporated with the Companies (Model Articles) Regulations 2008 (‘the Model Articles’) as its articles of association, but following further investment from some new shareholders has recently adopted amended articles of association. The amended articles of association (‘the New Articles’) are based on the Model Articles but also include some special articles.

What must be filed with the Registrar of Companies following the adoption of the New Articles?

Correct! Wrong!

Explanation:
When a private limited company adopts amended articles of association, the shareholders' resolution approving the adoption of the new articles is a crucial document to be filed with the Registrar of Companies. Additionally, the new articles themselves must be submitted to the Registrar. Therefore, option D is correct as it includes both the shareholders' resolution and the new articles, which are essential documents for filing with the Registrar.

The owner of a Greek restaurant orders wall tiles that include a border design showing the Greek flag. After the tiles have been fitted, the owner notices that the tiles are decorated with the flag of Uruguay. The owner wants the tiles to be replaced.

In a claim for breach of contract which of the following measure of damages is the court most likely to award?

Correct! Wrong!

Explanation:
In a claim for breach of contract, the measure of damages most likely to be awarded by the court is the cost of cure. This refers to the amount required to rectify or remedy the breach of contract, such as replacing the incorrectly designed tiles with the correct ones depicting the Greek flag. The cost of cure aims to put the innocent party in the position they would have been in had the contract been performed correctly. Therefore, in this scenario, the court is likely to award damages equivalent to the cost of replacing the tiles with the correct design.

A political party decides to hold a meeting in the central square of a provincial city. One of its leaders is expected to make a speech that will annoy many members of the local population.

Which of the following statements best describes the powers of the police in this situation?

Correct! Wrong!

Explanation:
In situations where there is a risk of serious disorder, the Chief Constable has the authority to impose conditions on public gatherings or meetings to maintain public order and safety. These conditions may include restrictions on the time, location, or conduct of the meeting. Therefore, option A best describes the powers of the police in this situation, as it acknowledges the Chief Constable's authority to impose conditions to prevent serious disorder.

A man is using his new mountain bike which is a state-of-the-art product. It has a specially developed metal frame which enhances the bike’s performance over rough terrain. However, due to metal corrosion in some of the screws, which was unforeseeable, the handlebar snaps in two when the man is using it. He breaks both wrists.

Which of the following best explains whether the man can recover damages for his injuries under the Consumer Protection Act 1987?

Correct! Wrong!

Explanation:
Under the Consumer Protection Act 1987, a product is considered defective if it does not provide the level of safety that persons are generally entitled to expect. In this scenario, the mountain bike's handlebar snapped due to metal corrosion in some screws, resulting in the man breaking both wrists. This indicates a defect in the product's design or manufacture, as it failed to meet the safety expectations of users. Therefore, the man can potentially recover damages for his injuries under the Consumer Protection Act 1987 because the bike is defective.

A decision is made by the Court of Appeal (Civil Division) in favour of the claimant. The defendant wishes to obtain permission to appeal.

Which of the following courts have the power to grant permission to appeal?

Correct! Wrong!

Explanation:
Both the Court of Appeal and the Supreme Court have the power to grant permission to appeal. In the Court of Appeal, permission to appeal may be granted by the court itself or by a single judge. In the Supreme Court, permission to appeal is typically granted by the court itself, although in some cases it may be granted by a single justice. The House of Lords is no longer the highest court in the UK; it was replaced by the Supreme Court in 2009. Therefore, options C and E are incorrect.

A man runs a very popular farmers market on a small farm on the edge of a village every Thursday. This results in the village becoming very busy on Thursdays when many of its roads are blocked by parked cars. Because of this, on Thursdays, a woman who runs a business in the village is unable to deliver her goods and she loses trade as a result.

Which cause of action should the woman pursue in tort?

Correct! Wrong!

Explanation:
A public nuisance is a tort that involves unlawful interference with the rights of the public. In this scenario, the man's operation of the farmers market on his small farm results in the village becoming very busy on Thursdays, obstructing roads and affecting the businesses in the village, including the woman's business. This interference with the rights of the public constitutes a public nuisance. Therefore, the woman should pursue a cause of action in tort for public nuisance against the man running the farmers market.

A claimant is bringing a claim against a defendant, seeking damages for breach of contract. The claimant alleges that the parties agreed to an oral amendment to the contract. The defendant denies that the parties had any such agreement. The only evidence on this issue, which will determine the outcome of the claim, is the conflicting oral evidence of the claimant and the defendant.

Which of the following best describes the burden of proof, if any, which the court will apply in deciding the issue?

Correct! Wrong!

Explanation:
In civil cases, such as a claim for breach of contract, the burden of proof typically rests with the party making the allegation. In this scenario, the claimant alleges that there was an oral amendment to the contract. Therefore, it is the claimant's responsibility to prove this allegation to the satisfaction of the court. The standard of proof required is on the balance of probabilities, meaning the claimant must establish that it is more likely than not that the oral amendment occurred.

In the course of a trial, various arguments are put to the judge as to the exact meaning of a particular section of a relevant statute. When deciding the case, the judge first looks at the natural ordinary meaning of the words used. However, such an interpretation of those words results in an absurd meaning being given to the section. The judge therefore, in coming to his decision, interprets the words in a different way which does not result in an absurd meaning.

What method of statutory interpretation has the judge used?

Correct! Wrong!

Explanation:
The golden rule is a method of statutory interpretation used when applying the literal rule would result in an absurd outcome. Under the golden rule, the judge interprets the words of the statute in a manner that avoids absurdity while still adhering as closely as possible to the ordinary meaning of the words. Therefore, in this scenario, the judge has applied the golden rule by interpreting the statute in a way that does not lead to an absurd outcome.

A man is given a bicycle as a gift. He later agrees to sell the bicycle for £25 to a woman but no payment has yet been made. He subsequently discovers that the bicycle is worth £390. He informs the woman that he no longer wishes to sell the bicycle because he was mistaken about its value.

What advice should the woman be given?

Correct! Wrong!

Explanation:
In this case, the woman promised to pay £25 in exchange for the bicycle. Consideration is an essential element of a contract, and it involves something of value exchanged between parties. Here, the promise to pay £25 constitutes sufficient consideration, which is necessary for the formation of a contract. Even though payment has not been made yet, the promise of consideration is enough to create a binding contract between the man and the woman.

A woman in the UK asserts that her rights under Article 8 of the European Convention on Human Rights (ECHR) have been infringed by a public authority. Although she wishes to protest, she is unwilling to bring court proceedings under the Human Rights Act 1998 (HRA) against the public authority, because of the publicity she might receive, and because of the possible cost. The woman’s wealthy cousin is not affected by the alleged infringement but says she would be willing to bring proceedings on behalf of the woman.

Can the cousin bring legal proceedings as the woman’s representative under the HRA?

Correct! Wrong!

Explanation:
Under the Human Rights Act 1998 (HRA), legal proceedings can typically only be brought by individuals who are directly affected or victimized by an alleged infringement of their human rights. In this case, the cousin, who is not personally affected by the infringement, cannot bring legal proceedings on behalf of the woman. The principle of locus standi requires that the individual bringing the action has a personal stake in the matter. Therefore, the cousin does not have standing to bring legal proceedings under the HRA on behalf of the woman.

Three clients decide to go into business together. They each invest equal amounts of capital in the business and agree to share the profits equally. After two years, the business has made a loss and the clients no longer believe the business is viable.

Have the three clients been working in partnership together?

Correct! Wrong!

Explanation:
In the absence of a formal written partnership agreement or registration as a partnership, individuals can still be considered partners if they are working together in a business venture with the intention of making a profit. In this scenario, the three clients invested equal amounts of capital in the business and agreed to share profits equally, indicating their intent to operate as partners. Therefore, despite incurring losses, they are still considered to be working in partnership together.

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