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Paper F4(ENG)
Progress Tests
For exams from 1 September 2015 – 31 August 2016
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F4(ENG): PROGRESS TEST 1
Progress Test 1
1 The Queen's Bench Division of the High Court deals with which of the following types of
case?
A Trusts
B Bankruptcy
C Company matters
D Contract and tort (2 marks)
2 Civil cases are allocated to one of three tracks when being dealt with by the court system. A
case with a value of less than £10,000 will be allocated to which track?
A Fast
B Small claims
C Multi
D Tribunal (2 marks)
3 District judges are found at which type of court?
A High Court
B County Court
C Crown Court
D Privy Council (2 marks)
4 The Supreme Court is not bound by any other court.
A True
B False (2 marks)
5 The Human Rights Act 1998 binds which of the following and means they should protect an
individual's Convention rights?
A Private individuals
B Companies
C Public authorities
D Charitable organisations (2 marks)
6 Which of the following contracts must be made by deed?
A Transfer of shares
B Bill of exchange
C Consumer credit
D Conveyance of land (2 marks)
7 The postal rule states that acceptance made by post is effective when the letter reaches the
offeror.
A True
B False (2 marks)
8 Can £1 paid for a car worth £100,000 be valid as consideration in contract?
A Yes
B No (2 marks)
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F4(ENG): PROGRESS TEST 1
9 Jack owes Joe £100 and repayment is due on 30th June 20X1. Jack offers to repay £80 on
1st April 20X1 if Joe agrees to write off the rest of the debt.
Joe agrees to this but on 30th June 20X1 he requests that Jack pays him the balance. Does
Jack have to make the payment?
A Yes
B No (2 marks)
10 Jodie signed a contract but did not read any of the small print and the other party knows she
did not read the small print. Is Jodie bound by the terms of the contract?
A Yes
B No (2 marks)
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F4(ENG): PROGRESS TEST 1
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F4(ENG): PROGRESS TEST 1
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F4(ENG): PROGRESS TEST 2
Progress Test 2
1 Under the Unfair Contract Terms Act 1977 (UCTA) certain exemption clauses are void or
subject to a reasonableness test depending on whether they relate to consumer or
non-consumer transactions.
Exemption clauses relating to which of the following terms would be void in a consumer
contract under UCTA 1977? (You may select more than one option.)
A Title
B Description
C Quality
D Sample (2 marks)
2 Damages are a common law remedy for breach of contract. Which of the following is
another common law remedy?
A Specific performance
B Action for the price
C Injunction
D Recission (2 marks)
3 In a negligence case, where res ipsa loquitur is established, it is up to the defendant to
prove that they were not negligent.
A True
B False (2 marks)
4 To whom do company auditors owe a duty of care in respect of financial statements that
they have audited?
A The company's debentureholders
B Individual shareholders who decide to buy more shares as a result of the financial
statements
C New shareholders who invested in the company as a result of the financial statements
D The shareholders as a whole (2 marks)
5 An act which has already been performed before an act or promise is given in return is not
usually sufficient as consideration. But it will be where:
A A person performs a service at another's request and is later promised payment.
B A person spends money on his own initiative and another party later agrees in writing
to repay it.
C A debt has become statute-barred but the debtor verbally acknowledges its existence.
D A promissory note is given in settlement of an existing debt. (2 marks)
6 An employee has preferential rights as a creditor for outstanding payments, such as salary
and redundancy pay, in the event of their employer being liquidated.
A True
B False (2 marks)
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F4(ENG): PROGRESS TEST 2
7 An employee owes a number of common law duties to their employer. Which of the
following are such duties?
(i) Reasonable competence
(ii) Obedience to all instructions
(iii) Account for all money and property received during the course of employment
(iv) Reasonable care and skill
A (i) and (ii) only
B (ii) and (iv) only
C (iii) and (iv) only
D (i), (iii) and (iv) only (2 marks)
8 Sian was employed by Ryan for five years when her employment contract was amended.
She did not verbally agree to the change, nor did she sign a new contract or a statement of
the new terms and conditions. However she did work under the new conditions.
Has Sian consented to the variation in her contract?
A Yes
B No (2 marks)
9 How much notice is an employee entitled to if they have been employed for 15 months?
A One week
B Two weeks
C Fifteen days
D Four weeks (2 marks)
10 How many years continuous service must an employee have before they are entitled to
statutory redundancy pay?
A One
B Two
C Three
D Four (2 marks)
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F4(ENG): PROGRESS TEST 2
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F4(ENG): PROGRESS TEST 2
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F4(ENG): PROGRESS TEST 3
Progress Test 3
1 Sophie acted as agent for Greg for a number of years in relation to Greg's commercial
activities with Alice.
On 1st April 20X1 Greg revokes Sophie's authority but does not notify Alice of this.
On 30th May 20X1 Sophie enters into a contract with Alice who believes that Greg is the
principal.
Is Greg liable on the contract?
A Yes
B No (2 marks)
2 In the event of a partnership being terminated, its assets are realised and then distributed in
a particular order.
What is the first use the realised assets are put to?
A Repaying any partners' loans
B Repaying the partners' capital contribution
C Paying partners any past profits they have not been paid
D Repaying any external debts (2 marks)
3 Which of the following documents are NOT required to be submitted when applying to
register a company?
A Memorandum of association
B Articles of association
C Statement of proposed officers
D Statement of compliance (2 marks)
4 In relation to a company's articles of association, which of the following is incorrect?
A The articles of association set down the internal regulations of a company.
B Promoters may or may not submit their own form of articles when submitting the
forms necessary to form a company limited by shares.
C The articles of association form a contract between the members and the company
and the members amongst themselves.
D Any article of association may be changed by special resolution, subject to the right of
the holders of 15% of the company's shares or debentures to object to the court.
(2 marks)
5 A public company limited by shares must have:
A At least two directors, and one shareholder
B At least one director, one company secretary and two shareholders
C At least two directors, one company secretary and two shareholders
D At least two directors, one company secretary and one shareholder (2 marks)
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F4(ENG): PROGRESS TEST 3
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F4(ENG): PROGRESS TEST 3
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F4(ENG): PROGRESS TEST 3
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F4(ENG): PROGRESS TEST 4
Progress Test 4
1 Is a company liable on a contract signed by the entire board of directors where that contract
is expressly prohibited by the articles of association?
A Yes
B No (2 marks)
2 Directors of private companies must always seek authority from the members whenever
they allot new shares.
A True
B False (2 marks)
3 Which type of charge is required where the debentureholder wishes to take security over
inventory?
A Fixed
B Floating
C Either fixed or floating
D Neither fixed nor floating as debts may not be secured on inventory (2 marks)
4 Assuming the allotment is not part of a takeover bid, which of the following is permitted
consideration for the allotment of shares by a public company?
A A motor vehicle that has been independently valued
B An undertaking to perform services for the company
C Shares in a private company
D A business property which will be transferred to the company six years following the
allotment (2 marks)
5 At a public company's first AGM, how many of the directors are required to retire according
to the Companies Act 2006?
A Half
B A third
C A quarter
D All (2 marks)
6 Except for single member companies, and unless otherwise changed by the articles, how
many people constitute a quorum for company meetings?
A Two
B Three
C Four
D Five (2 marks)
7 Which of the following may apply to put a company into administration without a court order?
A An individual member
B A fixed chargeholder
C A floating chargeholder
D An unsecured creditor (2 marks)
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F4(ENG): PROGRESS TEST 4
8 Not expecting to make a profit or avoid a loss is a valid defence to a charge of insider
dealing.
A True
B False (2 marks)
9 With which of the following offences would a person be charged if they interfered with the
usual process of share prices moving up and down in accordance with supply and demand?
A Insider dealing
B Wrongful trading
C Market abuse
D Money laundering (2 marks)
10 Fraudulent trading is classified as:
A A criminal offence only
B A criminal and a civil offence
C A civil offence only
D A tort (2 marks)
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F4(ENG): PROGRESS TEST 4
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F4(ENG): PROGRESS TEST 4
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