FIRST ASSESSMENT 2023/2024 SESSION

Do not turn over the page until the invigilator has asked you to. Once you receive
your assessment paper, write your name legibly on the question paper and wait for
further instructions.
Ensure you sign the attendance sheet before you leave the room.
Answer all questions except otherwise stated
Use a blue or black pen only Duration: 60 minutes
NAME:

SUBJECT: COMMERCE YEAR 12

DATE: ----------------

INSTRUCTIONS: ANSWER ALL QUESTIONS IN THIS SECTION

SECTION A (OBJECTIVES)

1. What are the essential elements of a contract?

a. Offer and acceptance
b. Intention to create legal relations
c. Valuable consideration
d. Certainty of terms

2.Which element of a contract ensures that an offer can be accepted without

ambiguity?
A. Offer and acceptance
b. Intention to create legal relations
c. Valuable consideration
d. Certainty of terms
3.An offer must be communicated to the:
a. Offeror
b. Offeree
c. Both parties
d. Witnesses

4. An offer can be made to:

a. A specific person
b. A group of persons
c. The world at large
d. All of the above

5. How can an offer be terminated?

a. Lapse of offer
b. Withdrawal of the offer (revocation)
c. A refusal or counter offer
d. All of the above

6. When is an acceptance effective?

a. As soon as the offeree decides to accept
b. Once the offeror communicates acceptance
c. When the acceptance is communicated by the offeree and received by the offeror
d. After signing a contract

7. Which element ensures that both parties intend to create a legally binding contract?
A. Offer and acceptance
b. Intention to create legal relations
c. Valuable consideration
d. Certainty of terms

8. What is necessary for a contract to have valuable consideration?

a. Both parties promise to give something of value
b. Only the offeror gives something of value
c. Only the offeree gives something of value
d. No valuable consideration is required

9. What type of clauses can be found in a contract?

a. Express and implied terms
b. Open and hidden terms
c. Verbal and written terms
d. None of the above
10.In order for an offer to be valid, it must be:
a. Unconditionally acceptable
b. Revocable at any time
c. Open to negotiation
d. Hidden from the offeree

11.Which party is the offeree in a contract?

a. The party making the offer
b. The party accepting the offer
c. Both parties
d. Neither party

12. What is the main purpose of an offer in a contract?

a. To gather information
b. To seek advice
c. To create a binding agreement
d. To initiate negotiations

13. When can an offer be revoked by the offeror?

a. At any time, even after acceptance
b. Only if the offeree refuses the offer
c. After the offeree communicates acceptance
d. Never, once it is made

14. In the context of contract law, what is the term for a response to an offer that
introduces new terms?
A. Rejection
b. Acceptance
c. Counter offer
d. Lapse

15. Which party must communicate acceptance for it to be effective?

a. The offeror
b. The offeree
c. Witnesses
d. Lawyers

16. Acceptance is not effective if it is communicated in:

a. Ignorance of the offeror
b. The presence of witnesses
c. Writing
d. Publicly

17. What element ensures that the terms of a contract are clear and specific?
A. Offer and acceptance
b. Intention to create legal relations
c. Valuable consideration
d. Certainty of terms

18. The possibility of performance in a contract refers to:

a. The chance of the contract being terminated
b. The probability of a party withdrawing from the contract
c. The parties’ assurance that they can fulfill their obligations
d. The potential for legal disputes

19. What kind of clauses are explicitly stated in a contract?

a. Express terms
b. Implied terms
c. Hidden terms
d. Verbal terms

20. Which element of a contract ensures that no clause can exclude the court’s
jurisdiction?
A. Offer and acceptance
b. Intention to create legal relations
c. Valuable consideration
d. Possibility of performance

21. What does business law encompass?

a) Only state laws
b) Laws related to environmental protection
c) Laws related to forming and running a business
d) Laws pertaining to personal finances

22.n the realm of business law, what do state and federal laws govern?
a) Only federal regulations
b) Only state regulations
c) Both state and federal laws
d) Only local ordinances

23. When should a businessperson seek the advice of a licensed attorney regarding
business law?
A) Never
b) Only when starting a business
c) When faced with complex legal issues
d) Only during tax season

24. Which of the following is NOT an area included in business law?

a) Competition law (antitrust)
b) Intellectual property law
c) Tax law
d) Contract law

25. What is another term for antitrust law in business law?

a) Consumer protection
b) Corporate governance
c) Competition law
d) Copyright law

26. Which branch of business law deals with protecting consumers from fraudulent
business practices?
a) Contract law
b) Corporate law
c) Consumer protection
d) Environmental law

27. Which branch of business law relates to the rules governing the formation and
management of companies?
a) Labour law
b) Corporate governance
c) Competition law
d) Patent law

28.What does international trade law pertain to in business law?

a) Business ethics
b) Regulations on imports and exports
c) Environmental protection
d) Taxation laws

29. What type of law is concerned with protecting the rights of creators and their
creations?
A) Environmental law
b) Patent law
c) Copyright law
d) Corporate governance

30. What type of law is involved in the registration and protection of unique product
names and logos?
A) Environmental law
b) Patent law
c) Copyright law
d) Trademark law

31. Which area of business law deals with the legal aspects of labor and employment
relationships?
A) Consumer protection
b) International trade law
c) Corporate governance
d) Labour law

32. What is the main purpose of competition law (antitrust) in business law?
A) Protecting intellectual property
b) Promoting fair competition and preventing monopolies
c) Enforcing contract agreements
d) Regulating environmental standards

33. Which branch of business law deals with legal regulations regarding the
environment and sustainability?
A) Corporate law
b) Environmental law
c) Competition law
d) Patent law

34. What does corporate governance focus on in business law?

a) Protecting consumers
b) Regulation of business ethics
c) Management and control of corporations
d) Taxation of businesses

35. Which area of business law relates to the legal protection of inventions and
innovations?
A) Competition law
b) Consumer protection
c) Patent law
d) Corporate governance

36.What is the primary purpose of labor law in business law?

a) Protecting the environment
b) Regulating international trade
c) Governing labor and employment relationships
d) Enforcing copyright laws

37. What does contract law in business law primarily deal with?
a) Taxation agreements
b) Intellectual property disputes
c) Legal agreements and obligations
d) International trade regulations

38. In business law, what does trademark law focus on protecting?

a) Unique product names and logos
b) Employee rights
c) Corporate governance
d) Real estate transactions

39. What branch of business law is concerned with regulations related to the
management and operation of corporations?
A) Copyright law
b) Competition law
c) Labour law
d) Corporate law

40. Which of the following is NOT a branch of business law mentioned in the short
note?
A) Tax law
b) Consumer protection
c) Intellectual property law
d) Environmental law

SECTION B. ANSWER 4 QUESTIONS FROM THIS SECTION

1. Define business law
2. What is contract
3. Mention 2 types of contract .
4. Write 2 remedies for breach of contract
5. Identify two classification of contract
6. What is the meaning of higher purchase.