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1) Choses capable of negotiation are classified as negotiable instruments and include …
bills of exchange
postal orders
bills of lading

2) A bankrupt must disclose his status if he wants to obtain…
a credit of 250 pounds or more
a credit of more than 50 pounds sterling
a credit

3) If a partner secretly carries on a competing business, he…
will be expelled
must sell that business
must pay to the firm all profits made by him in that business

4) The rights of inheritance are unrestricted in case of …
fee tail estate
life estate
fee simple estate

5) The secretary of a private company…
must have work experience as a company secretary
need not have any personal qualifications
must be qualified as a chartered secretary, an accountant or a lawyer

6) Sole trader…
is liable for all his debts
shares losses with the people he employs
has limited liability

7) A mortgage can be set aside …
if the presumption of undue influence has been rebutted in the Court
can never be set aside
if it has been obtained by undue influence

8) Employees are entitled to notice which could be a month …
for senior clerical workers
for senior managers
for other managers

9) The mortgagor may create …
second and subsequent mortgages over the same property
not more than two mortgages over the same property
only one mortgage over the same property

10) Agency of necessity can arise on condition that …
there is some emergency
there are no pre-existing contracts giving the agent responsibility for the property of another
the person charged with responsibility can get instructions from the owner of the property

11) If the principal refuses to ratify the transaction, …
the principal will be liable for damages
no one will be liable for damages
the agent will be liable for damages

12) Preference shareholders have the right…
to receive a fixed dividend prior to ordinary shareholders
to receive an unlimited dividend
to receive surplus assets

13) In case of trespass to land the duty is owed …
to the possessor if he is the owner
to the possessor even if he is not the owner
to the owner

14) The bankruptcy petition can be presented by…
the trustee
a creditor
a magistrate

15) Trading in a name similar to that of another similar business affects …
reputation
economic rights
general rights

16) Public limited companies can have…
two directors
no directors
one director

17) The capital clause of the Memorandum states…
the capital assets
the authorized capital
the actual capital raised

18) The employer must provide written statement of the following terms …
provision of safe tools and equipment
pension rights
maternity rights

19) General agents have …
unlimited authority
authority to act within certain limits
authority for a specific purpose

20) A separate legal person is created in setting up business as…
a partnership
a registered company
a sole trader

21) The transfer of property to the buyer is the main purpose …
of the contract for the sale of goods +
of the contract for labor and materials
of the contract for service

22) Fiduciary duties are owed …
by employees to their employers
by sales clerks to the customers
by buyers to sellers

23) A director of a public company can be disqualified…
by the court
by the annual meeting of shareholder
by a majority shareholder

24) The following products are excluded from liability under the Consumer Protection Act:
unprocessed game
vapours
electricity

25) Partnership can be set up between persons carrying on a business…
only for receiving profits
for any purpose
for charitable purpose

26) Negligence is an actionable wrong affecting …
person
general rights
property

27) A company which develops a new product, protects this invention …
by a patent
by a share certificate
by an insurance policy

28) Leasehold estate which incudes the renewable yearly lease is …
the “term of years”
the “estate at will”
the “estate by sufferance”

29) Legal rights attach to…
natural and artificial persons
natural persons only
corporations only

30) To control rogue dealers, the DG may bring proceedings…
in the Restrictive Practices Court
in the Crown Court
in the High Court

31) Contracts for the sale of goods include …
agreements to sell
contracts for hire of goods
contracts of bailment

32) Dismissal of an employee is considered fair if the reason is …
that the employee is a member of an independent trade union
redundancy
pregnancy

33) Private limited companies cannot raise money…
by selling shares
by inviting other members
by making loans

34) The power to order that a merger shall not go ahead lies with…
the Secretary of State
the Director General of Fair Trading
the Monopolies and Mergers Commission

35) The term “goods” includes all “chattels personal” that are …
tangible
immovable
intangible

36) The highest court of appeal in Britain is…
House of Lords
Civil Court of Appeal
Criminal Court of Appeal

37) Supervising trading practices is one of the main duties of…
the Monopolies and Mergers Commission
the Director General of Fair Trading
the Consumer Protection Advisory Committee

38) The major source of the English law which takes precedence over the others is…
legislation
European Community law
case law

39) A mortgage is void against a subsequent purchaser …
if it is legal without title deed
if it is not registered in the Land Charges Registry
if it is not legal

40) A consent of the principal …
must be given in written form
can be verbal, in writing or by deed
is to be given by deed

41) An employer must make a redundancy payment to an employee who has been employed …
for two years
for a month
for a year

42) The Monopolies and Mergers Commission consists of…
three members
not less than 10 members
not more than 30 members

43) The loan agreement provides for repayment of loan plus interest …
at any time subject to no restrictions
at any time subject to reasonable restrictions
exactly by the legal date of redemption

44) he bankruptcy order is published in…
the Financial Times
the London Gazette
the Business Week

45) Things which are capable of physical possession are included into …
incorporeal property
tangible property
intangible property

46) Ratification of the contract can be possible if …
it concerns a part of the contract
the contract is not void or a forgery
it takes place after the time fixed for the performance of the contract

47) The Department of Trade and Industry may appoint inspectors…
on the application of 100 shareholders
on the application of 1 shareholder
on the application of members holding not less than one tenth of the shares.

48) A holder of bearer shares becomes a member of the company…
if Articles of the company allow that
automatically
according to the decision of the directors of the company

49) According to the contract, the goods must be transferred …
for other goods
for securities
for money

50) Directors of a public company can be appointed…
at any age
at the age under 70
at the age under 60

51) The employer must provide written statement of the following terms …
maternity rights
provision of safe tools and equipment
pension rights
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