BMAN24042

RESIT
Original Duration - 1 Hour 30 Minutes

THE UNIVERSITY OF MANCHESTER

BUSINESS LAW 1: LAW, BUSINESS LIABILITIES & THE CONSUMER

August 2020

Answer BOTH questions

BOTH questions carry EQUAL marks

You have 24 hours to complete this examination, but it is expected that you
spend no more than three times the duration of the original examination
completing it.

This exam is to test your powers of analysis, not memory; suggested word limit for
the essay is therefore 750 words.

Electronic calculators may be used in accordance with the University regulations

© The University of Manchester, 2020.

PTO

Page 1 of 2
 BMAN24042
RESIT
ANSWER BOTH QUESTION 1 AND QUESTION 2

EACH QUESTION CARRIES EQUAL MARKS

QUESTION 1: CONTRACT QUESTION:

Warwick has just purchased a famous country restaurant from Ferdinand, on the
basis of past accounts, existing financial records and statements made by Ferdinand
that it has been ‘a little gem of a business’ and has an excellent and loyal customer
base.

After a week as the new owner, Warwick receives a letter from the Local Authority
inviting him to the opening ceremony of the new Government Infectious Diseases
Research Laboratory which is to be opened in the presence of Prince Charles and
the national Press. The laboratory is sited in the next village.

Almost immediately customers begin to cancel restaurant bookings, regular suppliers

cancel contracts (on the grounds of reputational damage) and the restaurant's
insurers increase the public liability premiums.

ADVISE Warwick as to his contractual rights as he feels he has been misled by

Ferdinand.

QUESTION 2: TORT QUESTION:

Why should accountants and auditors be able to use professional disclaimers to

avoid negligent misstatement claims? Use legal authorities to explain your answer.

END OF EXAMINATION PAPER

Page 2 of 2