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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.Choose the right ending of the sentence
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 …
the 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.The 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
52.Companies limited by shares are usually set up for...
trading purposes
charitable purposes
educational purposes
53.Allowing water to escape from reservoirs is a tort affecting .
property
economic rights
general rights
54.In a bankruptcy the estate of an insolvent person passes...
into the control of the bankruptcy court
into the control of the creditors
into the control of a trustee
55.A subsidiary company is owned...
by a holding company
by a sole trader
by a partnership
56.When the land is owned by a company,...
there must be registration of both legal and equitable mortgages
there must be registration of the equitable mortgage
registration of a mortgage is not necessary
57.If a minority shareholder does not agree with the majority...
the majority must agree with him
the court will support him
he must accept the decision of the majority
58.A shareholder has the right...
to receive a proportion of the profits of the company
to sell the assets of the company
to give instructions to the directors of the company
59.Contracts for the sale of goods include ...
agreements to sell
contracts of bailment
contracts for hire of goods
60.Fiduciary duties of employees are implied into a contract of employment...
by the common law
by statute
are not implied
61.A statement of law is binding for future similar disputes if...
it forms the basis of the decision
is made by the way
it is based on a hypothesis
62.A person cannot be a partner if...
it is a limited company
he or she is an enemy alien
he or she is a minor
63.Carrying on an offensive trade, obstructing the highway is ...
private nuisance
public nuisance
trespass to land
64.The Register of the Company must be kept...
at the registered office
in the office of the CEO
in the residence of the majority shareholder
65.To take part in the management of a registered company, a bankrupt must get...
the creditors' consent
the trustee's consent
the court' consent
66.The East India Company was created...
under Companies Act
by Royal Charter
by special Act of Parliament