THE ASSOCIATION OF BUSINESS EXECUTIVES DIPLOMA

PBL

Principles of Business Law

SPECIMEN QUESTION PAPER

1 2 3 4 5 6 7

Time allowed: 3 hours. Answer any FOUR questions. All questions carry 25 marks. Marks for subdivisions of questions are shown in brackets. No books, dictionaries, notes or any other written materials are allowed in this examination. Calculators are allowed providing they are not programmable and cannot store or recall information. Electronic dictionaries and personal organisers are NOT allowed. Candidates who break ABE regulations, or commit any misconduct, will be disqualified from the examinations. Question papers must not be removed from the Examination Hall.

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Answer any FOUR questions Q1 (a) What are the remedies for breach of contract? (b) Able has entered into a contract to supply goods to the Government of Leligoland. Recently there has been a change in the finances of the Government and they no longer wish to be bound by the contract. The government has given notice to Able that they intend to cancel the contract. Able wants to know on what grounds, if any, he can sue the Government. (c) If a war had been declared on this government how, if at all, would your answer be different? (10 marks) (12 marks)

(3 marks) (Total 25 marks)

Q2 (a) What is consideration in respect of the formation of a contract? (b) Bits of Bosses plc had their offices renewed by Useless Contractors plc at a cost of $500,000. The contractors work was supervised by Bits of Bosses works director the whole time they were working on site. The work was completed and the invoice for $500,000 was submitted but not paid. Bits of Bosses were not satisfied with the work and asked the contractors regularly to return to complete the work to their satisfaction. After several months they were still not satisfied with the work and offered to pay $300,000 and the rest when they were satisfied with the job. The contractors accepted the cheque and they were asked to sign a document stating that they would not seek any further payment. They signed the document and are now seeking the outstanding amount. Advise Useless Contractors plc.

(12 marks)

(13 marks) (Total 25 marks)

Q3 (a) Explain the relationship between a principal, an agent and a third party. (b) Explain the rights and duties between a principal and an agent.

(13 marks) (12 marks) (Total 25 marks)

Q4 Write brief notes on the following: (a) Constructive dismissal (b) Redundancy (c) Notice to terminate an employment contract (d) Disability at work (6 marks) (6 marks) (6 marks) (7 marks) (Total 25 marks)

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Q5 (a) What is a Bill of Exchange and how may it be used? (b) How is a Bill of Exchange discharged? (c) What are the consequences of a Bill of Exchange being dishonoured?

(12 marks) (7 marks) (6 marks) (Total 25 marks)

Q6 (a) Give a full account of the system of civil courts in the English legal system. (b) It is now very expensive in terms of time and money to follow the legal process through the courts. Today there are other ways of settling disputes. Explain in detail other forms of dispute resolution.

(13 marks)

(12 marks) (Total 25 marks)

Q7 Describe the different types of business organisations. Give your reasons as to the advantages and disadvantages of each type of business organisation.

(25 marks)

Q8 (a) Classify the different types of regulated agreements under the Consumer Credit Act 1974. (b) Explain how debtors are protected under this Act.

(12 marks) (13 marks) (Total 25 marks)

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