13823758
| Frage | Antworten |
| Which of the following statements in relation to criminal offences is correct? The county court has jurisdiction in relation to criminal offences A summary offence is a minor criminal offence A criminal matter is dealt with under the multi-track procedure | A summary offence is a minor criminal offence A summary offence is a minor criminal offence: an indictable offence is a serious criminal offence. |
| Which TWO of the following courts can hear an appeal directly from a criminal case heard in the magistrates’ court? Divisional Court of the Queen’s Bench Court of Appeal Crown Court Court of Justice of the European Union | Crown Court Divisional Court of the Queen's Bench The Crown Court is both a court of first instance for indictable offences, as well as an appeal court for the magistrates' court. The Divisional Court of the Queen's Bench will hear 'case-stated' appeals from the magistrates. These appeals are for mistakes made by the magistrates, and as such tend to be on point of law. |
| Which of the following is NOT a feature of criminal law? The burden of proof lies with the claimant The standard of proof is beyond reasonable doubt It aims to punish wrongdoers Correct Answer | The burden of proof lies with the claimant The burden of proof lies with the claimant |
| Which of the following statements would NOT be binding on a later court? One which was part of an obiter dictum One made by a previous court with superior status One based on a proposition of law rather than a question of fact | One which was part of an obiter dictum To be binding, the statement must be part of the ratio decidendi - the rationale behind the case, rather than the obiter dicta - statements made by the way. |
| For each of the following statements regarding human rights, indicate whether it is true or false. . True False Existing legislation must be interpreted in a way which is compatible with the European Convention on Human Rights The government can never enact new legislation which is incompatible with the European Convention on Human Rights | Correct Answer The government can never enact new legislation which is incompatible with the European Convention on Human Rights - False Existing legislation must be interpreted in a way which is compatible with the European Convention on Human Rights - True If a bill is incompatible with the European Convention on Human Rights, a statement to that effect can be made should the government wish to continue the bill anyway. The UK courts must interpret UK law in a way compatible with the European Convention on Human Rights as far as possible. |
| When interpreting statute, a judge may give words meanings which deviate from their ordinary, everyday meanings, in recognition of the problem the statute was written to address. Which rule of statutory interpretation does this statement describe? The golden rule The mischief rule The contextual rule | The mischief rule The mischief rule allows the judge to consider what mischief the Act was intended to prevent, and interpret to achieve this. |
| Which TWO of the following statements regarding legislation are correct? Courts may strike out any legislation which is contrary to the European Convention on Human Rights The electoral system means that the statute-making process responds to public opinion Those who draft statute cannot anticipate every case which may arise An Act always comes into operation immediately after it receives Royal Assent | Correct Answer Those who draft statute cannot anticipate every case which may arise The electoral system means that the statute-making process responds to public opinion Statue law can only be a statement of general rules - a disadvantage is therefore that setters cannot anticipate every conceivable case. The fact that the House of Commons is re-elected after no more than five years should mean the process is responsive to public opinion |
| In contract law, if acceptance is made by means of a letter sent through the post, when is it effective? When the letter is read When the letter is posted When the letter arrives Correct Answer | Correct Answer When the letter is posted The postal rule is an exception to the general principle that acceptance needs to be communicated. The acceptance is effective at the point at which the letter enters the postal system, even if it never arrives, as in Adams v Lindsell (1818). |
| Which of the following statements about consideration is true? It can be performance of a public duty It must be adequate It must be sufficient It must be performance of an existing contractual duty | Correct Answer It must be sufficient Consideration must be sufficient, that is, something which the law recognises as amounting to consideration. |
| For each of the following, indicate whether it is an offer or an invitation to treat. . Offer Invitation to treat Goods taken to the cash desk at a self-service shop Goods displayed in a shop window | Correct Answer Goods displayed in a shop window - Invitation to treat Goods taken to the cash desk at a self-service shop - Offer An offer is a promise to be bound on particular terms, which must be capable of acceptance. Goods in a window are inviting offers to be made, as are goods displayed on a shelf in a self-service shop. The offer is made by the customer when they take the goods and offer to pay. |
| Fred has contracted with Burt for an extension to be built to his house. Once the work commenced, Fred and his wife found that they were expecting a baby, so it was essential for the work to be completed on time. Fred offered Burt an extra £2,000 as an incentive to do so. Which of the following statements is true? Fred and Burt cannot re-negotiate terms once performance has begun Burt cannot claim the extra £2,000 because he has provided no additional consideration The original contract has come to an end and a new one exists in its place As Fred benefited from the work being completed on time, Burt will be able to claim the extra £2,000 | As Fred benefited from the work being completed on time, Burt will be able to claim the extra £2,000 Fred's circumstances have changed and he has approached Burt with the incentive to complete the work on time, owing to the real practical benefit of that happening. This sort of situation reflects commercial practice, where contracts are frequently renegotiated once performance has begun. This does not amount to repudiation of contract but is understood to be a variation of terms. |
| Joel and Kerry are the son and daughter of Marion. Marion has asked them to clean their rooms, ready for their grandparents’ visit. She said she would give them each £10 for doing so. Which TWO of the following statements are true? There is a lack of mutuality about this arrangement, which means that it will be unenforceable as a contract This arrangement cannot amount to a contractual agreement because it is not made in a commercial context Joel, Kerry and Marion do not have the requisite intention to create legal relations Domestic or family arrangements are usually informal and so the court will be willing to overlook the usual requirements for the formation of a contract | Joel, Kerry and Marion do not have the requisite intention to create legal relations There is a lack of mutuality about this arrangement, which means that it will be unenforceable as a contract Agreements between family members are difficult to understand as contractually binding, owing to the motive behind the actions undertaken or promise made. This looks very much like a standard family understanding that when grandparents visit, Marion likes the house to be tidy. |
| In which of the following situations is it NOT possible for a third party to enforce an obligation? Where there has been an assignment of the benefit of the contract Where the contract expressly confers the right for a third party to gain enforcement rights Where the subject matter of the agreement is a gratuitous promise | Where the subject matter of the agreement is a gratuitous promise Assignment of the benefit of a contract is possible, unless it is a personal or assignment is barred. Third parties can also enforce contractual obligations if it is clear from the terms of the contract that is intended. Gratuitous promises are unenforceable in any event, as they are unsupported by consideration. |
| For each of the following statements regarding contractual terms, indicate whether it is true or false. . True False A representation is a statement which induces the formation of a contract but does not become a term of the contract A term can be implied into a contract by the courts in order to make the contract work in practice | A representation is a statement which induces the formation of a contract but does not become a term of the contract - True A term can be implied into a contract by the courts in order to make the contract work in practice - True A representation may be made during the contractual negotiations but does not become a term in the contract. Terms can be implied into a contract in a number of ways, including by the courts to give the contract efficacy, as in the case of The Moorcock (1889). |
| Which of the following is NOT a type of term? Warranty Representation Condition | Representation |
| Which of the following describes a vital term in a contract? Guarantee Condition Warranty | Condition |
| Rebecca bought a home computer for personal use from a sole trader, trading as Computers to Go. When she got the computer home she found that it didn't work. She returned the computer to the shop, but the retailer refused to refund her money and pointed to a sign placed above the door inside the shop, which she had not seen and which stated: ‘All products must be inspected before any sale is concluded. In the event of any defect, no liability will be accepted and refunds will not be given.’ | ok |
| For each of the following statements, identify whether it is true or false. The exclusion clause would need to be fair to be effective The law relating to unfair contract terms will not apply Computers to Go as it is a sole trader Rebecca is dealing as a consumer The exclusion clause has been incorporated into the contract with Rebecca | Rebecca is dealing as a consumer - True The exclusion clause has been incorporated into the contract with Rebecca - False The law relating to unfair contract terms will not apply Computers to Go as it is a sole trader - False The exclusion clause would need to be fair to be effective - True Rebecca is understood to be dealing as a consumer, because she is not acting in the course of a business and the other party is doing so. The sign above the door would not easily be noticed prior to a sale being concluded and so it would not be possible for the retailer to argue that the clause had been incorporated as a term of the contract. Even if the clause were incorporated, it would be subject to the test of reasonableness, because Rebecca is dealing as a consumer. The Consumer Rights Act 2015 will apply. |
| Assuming that the exclusion clause is invalid, which of the following actions can Rebecca take? Treat the contract as discharged, owing to the anticipatory breach Terminate the contract and claim damages Sue for specific performance of the contract only Sue for specific performance of the contract and claim damages | Correct Answer Terminate the contract and claim damages Which particular remedy for breach of contract is awarded depends on different things. As the breach has already occurred, there is nothing to pre-empt. The breach is fundamental, given that the computer has completely stopped working, which means that it goes to the root of the contract and gives rise to the right to repudiate. Rebecca can therefore treat the contract as repudiated and reclaim her money. |
| Which TWO of the following statements regarding contractual terms are correct? The breach of a warranty entitles the injured party to treat the contract as discharged only The breach of a warranty entitles the injured party to claim damages only The breach of a condition entitles the injured party to claim damages only The breach of a condition entitles the injured party to treat the contract as discharged, and to claim damages | Correct Answer The breach of a condition entitles the injured party to treat the contract as discharged, and to claim damages The breach of a warranty entitles the injured party to claim damages only The significance of the distinction between a condition and a warranty is the remedy which results from breach of the term. The breach of a warranty entitles the injured party to claim damages only. However the breach of a condition entitles the injured party to claim damages and treat the contract as discharged. |
| Which of the following is NOT an indicator of self-employed status? Provision of own tools Integration with co-workers Use of substitute labour | Correct Answer Integration with co-workers Where a worker controls themself, but is unable to work without their co-workers, was deemed to be an indicator of employee status in Cassidy v Ministry of Health (1951). |
| Which of the following is NOT a duty owed by an employee? To indemnify their employer To exercise reasonable skill and care To account for all money and property received | Correct Answer To indemnify their employer There is a duty on the employer to indemnify the employee; there is no duty on behalf of the employee to indemnify the employer. |
| For each of the following duties of an employer, indicate whether it is a statutory or a common law duty. . Common law Statutory To pay a minimum wage To provide work for apprentices To indemnify the employee against expenses and losses To provide time off work to undertake trade union duties | To indemnify the employee against expenses and losses - Common law To provide time off work to undertake trade union duties - Statutory To provide work for apprentices - Common law To pay a minimum wage - Statutory Trade union activities are covered by legislation and provide for time off to undertake such activities. Employers have duties in relation to the Health and Safety at Work Act 1974. The other duties exist at common law. Duty to indemnify the employee against expenses and losses and the duty to provide work for apprentices are common law duties. |
| Which of the following statements regarding redundancy pay is correct? An employee aged 40 will receive one week’s pay for each year of service The length of service used in the calculation is subject to a maximum of 25 years To be entitled to a redundancy payment, an employee must have had continuous employment for one year | An employee aged 40 will receive one week’s pay for each year of service The award is the same as the basic award for unfair dismissal - those aged 22-40 years receive one weeks pay per year. |
| Which of the following correctly describes constructive dismissal? Breach of contract by the employee, causing the employer to dismiss them without notice Dismissal due to the employer's inability to continue with the employment Breach of contract by the employer, which causes the employee to resign Dismissal that cannot be justified by the employer | Correct Answer Breach of contract by the employer, which causes the employee to resign Constructive dismissal occurs when the employer is willing to continue the employment, but has repudiated an essential term of the contract, and the employee resigns as a result. |
| Which of the following statements regarding summary dismissal is correct? It is permissible whenever an employee has breached their contract It means termination of employment with the statutory minimum notice Without justification, it allows a claim for wrongful dismissal | Correct Answer Without justification, it allows a claim for wrongful dismissal Wrongful dismissal is dismissal in a manner which breaches the contract of employment, and an unjustified absence of notice would fall into this category. |
| Which of the following statements concerning the personal liability of an agent on contracts is correct? An agent who acts on their own behalf but purports to be acting for their principal will not be liable on a contract An agent is liable on a contract if it is usual business practice for them to be liable An agent will not be liable even if they intend to take personal liability | Correct Answer An agent is liable on a contract if it is usual business practice for them to be liable An agent is liable on a contract involving their principal if it is usual business practice for them to be liable. |
| In relation to the Limited Partnerships Act 1907, which of the following statements about a limited partnership is true? The partners must enter into a written partnership agreement There must be at least one general partner with unlimited liability The partners all have limited liability for the debts of the partnership | Correct Answer There must be at least one general partner with unlimited liability A limited partnership is governed by the Limited Partnerships Act 1907 and it is a requirement of registration as a limited partnership that at least one general partner is appointed with unlimited liability for the debts of the limited partnership. |
| Which of the following statements regarding a partner’s authority is correct? They can bind the firm if a third party genuinely believes they have authority to do so They can only bind the firm within the limits of the partnership agreement They can only bind the firm if they have been given express authority to do so | Correct Answer They can bind the firm if a third party genuinely believes they have authority to do so The authority of a partner in any partnership is based on the laws of agency. Where a third party genuinely believes that a partner has authority to bind the firm, even if the partner has no such authority, the third party may rely on their genuine belief that the partner did have authority and bind the firm to a contract. This is known as ostensible authority. |
| Which TWO of the following companies CANNOT lawfully be created? A public limited company with just one member A public company limited by guarantee A private limited company without share capital A public limited company without share capital Correct Answer | A public limited company without share capital A public company limited by guarantee A public limited company must always have share capital and therefore one cannot be created without share capital. Companies limited by guarantee do not have share capital and therefore a public company cannot be limited by guarantee. |
| Which of the following documents is NOT required to be registered in order to form a company? Memorandum of association The details of the first auditor Statement of capital and initial shareholdings | The details of the first auditor |
| The board of directors of ACF Ltd are concerned about a small group of shareholders who are carrying on a business in competition with ACF Ltd. The directors have asked the members to pass a resolution to alter the articles of association. The alteration would give the directors the power to compulsorily purchase the shares of any shareholder who competes with ACF Ltd. | ok |
| Which TWO of the following statements regarding the alteration to ACF Ltd’s articles of association are correct? ACF Ltd can alter its articles by passing a written resolution A resolution to alter ACF Ltd’s articles of association requires a simple majority vote ACF Ltd must submit a copy of its amended articles to the Registrar ACF Ltd must hold a general meeting to alter its articles | ACF Ltd can alter its articles by passing a written resolution ACF Ltd must submit a copy of its amended articles to the Registrar As ACF Ltd is a private company, it may alter its articles of association by way of a written resolution. It is a requirement of company law that when a company alters its articles, a copy of the amended articles must be submitted to the Registrar within 15 days of the resolution making the change |
| The members passed the resolution, giving the directors the power requested. Which of the following statements about the validity of the alteration made to ACF Ltd’s articles is correct, and for what reason? It is not valid because it forces a shareholder to sell his shares back to ACF Ltd It is valid as it is bona fide in the interests of the company as a whole It is not valid as it is unjustified discrimination against the minority It is valid because it benefits the majority of ACF’s shareholders | Correct Answer It is valid as it is bona fide in the interests of the company as a whole The alteration is valid as it satisfies the bona fide test per Sidebottom v Kershaw Leese (1920) and would, therefore, be upheld. The alteration had been made to protect the interests of the company as a whole. |
| For each of the following alterations to a company's articles of association, identify whether it is true or false. A company's articles can be amended to compel an existing member to subscribe for additional shares in the company Directors whose contract of employment are contained in the articles can obtain an injunction against the company from altering the articles to remove them from office | Correct Answer Directors whose contract of employment are contained in the articles can obtain an injunction against the company from altering the articles to remove them from office - False A company's articles can be amended to compel an existing member to subscribe for additional shares in the company - False A court would not grant an injunction to a director in these circumstances as a company is free to alter its articles and remove a director from office. However, such an alteration may be a breach of a director’s service contract and he could sue the company for damages for breach of contract. Company law places certain restrictions on the alterations which can be made to the articles. Once a person becomes a member of the company, they cannot subsequently be required to pay more for their shares than what was agreed at the outset, or be required to subscribe for additional shares in the company. |
| In March 20X2, Jaygee plc is seeking to raise capital and therefore allots 100,000 ordinary shares, each with a nominal value of £2, for £4.50 each in cash, giving rise to the share premium of £250,000. | ok |
| Which TWO of the following statements about the share premium are true? It can be used for a dividend payment in the following year It can be used for a dividend payment in the same year It can be used for an issue of bonus shares in the future It can be used for the expenses of previous share issues | It can be used for an issue of bonus shares in the future It can be used for the expenses of previous share issues The share premium account may be used for an issue of bonus shares or for the expenses and the commission incurred with a new share issue – s.610 Companies Act 2006. |
| In March 20X3, the board of Jaygee plc considers an allotment of more £2 ordinary shares. The shares will be partly-paid but carry a premium of £2.50. What minimum payment for the shares will the purchasers have to make? 50% of the nominal value, plus 50% of the premium 25% of the nominal value, plus the full premium 50% of the nominal value, plus the full premium 25% of the nominal value, plus 25% of the premium | 25% of the nominal value, plus the full premium Where shares carrying a premium are issued as partly-paid, purchasers must pay a minimum of 25% of the nominal value plus the full premium. |
| Malcolm wishes to offer a warehouse that he owns in return for a substantial number of the shares to be allotted. Indicate whether the following statements about Malcolm’s offer are true or false. . True False The number of shares which could be purchased in return for the warehouse would be determined by an independent valuation of the building Malcolm would need to give an undertaking to transfer the property by March 20X8 | The number of shares which could be purchased in return for the warehouse would be determined by an independent valuation of the building - True Malcolm would need to give an undertaking to transfer the property by March 20X8 - True It is possible for a non-cash consideration to be accepted in return for shares. In this situation, the consideration needs to be performed within five years and a valuation report based on an independent assessment will form the basis of the transaction. |
| Nico owns 18% of the preference shares in Velvet Ltd. In a recent class meeting of the preference shareholders, 78% voted in favour of varying the rights attached to those shares. Nico strongly disagrees with the proposed alteration to preference shares rights. Which of the following statements relating to the alteration of class rights is correct? The decision of the meeting cannot be contested as more than 75% voted in favour The decision of the meeting cannot be contested as more than 50% voted in favour Nico can petition the court to set aside the variation in class rights as she holds more than 15% of the preference shares The class rights cannot be varied, as more than 15% of the preference shareholders did not vote in favour of the resolution | Correct Answer Nico can petition the court to set aside the variation in class rights as she holds more than 15% of the preference shares Nico owns 18% of the preference shares and therefore has more than the 15% threshold required to petition the court to set aside the variation in class rights. |
| Which TWO of the following statements concerning the distribution of a company’s dividends are true? In all cases, the net assets must be no less than the aggregate of its called-up share capital and distributable reserves at the time of the distribution Even after a dividend is declared and due for payment, there is no obligation for the company to make the distribution In all cases, the distribution must come from accumulated realised profits, less accumulated realised losses No distribution may come from the capital redemption reserve | Correct Answer In all cases, the distribution must come from accumulated realised profits, less accumulated realised losses No distribution may come from the capital redemption reserve Dividends can only be paid by profits available for distribution. Which include accumulated realised profits less accumulated realised losses. The capital redemption is a distributable reserve and therefore cannot be used to pay a dividend. |
| Sophia works for TM Ltd. The board of the company treat her as a director, and hold her out as such to the outside world, even though she has never been properly appointed. Which of the following describes Sophia's position as a director? De facto director De jure director Shadow director Alternate director | Correct Answer De facto director Sophia is a de facto director as she has been held out to be a director to the outside world but has never been properly appointed. |
| ACB Ltd is a building maintenance company. Its board of directors comprises three directors, Fred, Paul and Jason. Fred and Paul are in poor health and leave the running of the company's business to Jason. They know that Jason acts as ACB Ltd's managing director although he has never actually been appointed to that position. Jason decides that it is time for the company to expand. On behalf of the company, Jason instructs a surveyor to report on the suitability of a plot of land for the construction of an apartment block. Fred and Paul are unhappy about this and refuse to pay the surveyor's fees. | OK |
| ACB Ltd is liable for the surveyor's fees as the board of directors allowed Jason to act as its managing director Which of the following statements regarding liability for the surveyor's fees is correct? Jason is personally liable to pay the surveyor's fees because he instructed the report Jason and his fellow directors are jointly and severally liable for the surveyor's fees Jason and ACB Ltd, are jointly and severally liable for the surveyor's fees | ACB Ltd is liable for the surveyor's fees as the board of directors allowed Jason to act as its managing director ACB Ltd would be liable to pay the surveyor's fees since this was a normal commercial transaction which this type of company could be expected to enter in the ordinary course of its business, and which a managing director would normally have the authority to undertake. |
| What type of authority was Jason exercising when he entered into the contract with the surveyor? Actual Express Apparent Implied | aPPARANT Jason was acting as if he was the company's managing director without ever having been appointed to that position. However, his fellow directors allowed him control over the running of the business, so a third party acting in good faith with no reason to doubt Jason's authority is entitled to rely on the position he presented. In this scenario, the surveyor has no reason to believe that Jason did not have authority to instruct a report from him on behalf of the company. He would therefore be able to rely on Jason's apparent authority to hold the company to account for his fees. |
| Background ACB Ltd is a building maintenance company. Its board of directors comprises three directors, Fred, Paul and Jason. Fred and Paul are in poor health and leave the running of the company's business to Jason. They know that Jason acts as ACB Ltd's managing director although he has never actually been appointed to that position. Jason decides that it is time for the company to expand. On behalf of the company, Jason instructs a surveyor to report on the suitability of a plot of land for the construction of an apartment block. Fred and Paul are unhappy about this and refuse to pay the surveyor's fees. Task 1 2 of 2 marks Which of the following statements regarding liability for the surveyor's fees is correct? ACB Ltd is liable for the surveyor's fees as the board of directors allowed Jason to act as its managing director Jason is personally liable to pay the surveyor's fees because he instructed the report Jason and his fellow directors are jointly and severally liable for the surveyor's fees Jason and ACB Ltd, are jointly and severally liable for the surveyor's f | Directors' powers can be restricted by the company's articles of association - True The directors must exercise their powers in the best interest of the members - False Restrictions can be imposed on the powers of directors per articles of association. This is one of the ways in which members of the company can control the actions of the directors. The directors have a duty to act in the best interests of the company as a whole, not the best interests of the members. The directors are not agents of the members but of the company. |
| According to the Companies Act 2006, which of the following is NOT allowed to act as an auditor of a company? A creditor of the company A shareholder in the company An employee of the company | An employee of the company |
| Which types of company must hold an annual general meeting? Private companies only Public companies only Both private and public companies | Public companies only |
| Badtimes Ltd is experiencing cashflow problems, and the directors believe that unless radical action is taken, insolvency may be unavoidable. The company has been contacted by a floating chargeholder concerned that the company may default on its forthcoming interest payments. The directors have also been contacted by other unsecured creditors to discuss the possibility of putting the company into administration. For each of Badtimes Ltd’s creditors, indicate whether or not they need a court order to place the company into administration. . Floating chargeholder Unsecured creditors Without a court order With a court order | With a court order - Unsecured creditors Without a court order - Floating chargeholder A company can be placed into administration without a court order by floating chargeholders, directors and the company itself. The unsecured creditors need to apply to the court for an administration order. This route is also open to the company, directors and magistrates' court for non-payment of a fine. |
| For each of the following roles of officers involved in financially distressed companies, indicate whether it is carried out by an administrator or a liquidator. . Administrator Liquidator To rescue the company as a going concern To realise and distribute | Correct Answer To rescue the company as a going concern - Administrator To realise and distribute - Liquidator The role of the administrator is to rescue the company as a going concern, whereas the role of the liquidator is to get in, realise and distribute the assets according to the required order of payment. |
| Which TWO of the following statements apply to a creditors’ voluntary liquidation? The members’ choice of liquidator will prevail A liquidation committee is formed A meeting of members will be called The company will be solvent Correct Answer | Correct Answer A liquidation committee is formed A meeting of members will be called The liquidation committee will consist of between three and five creditors and members. The members' meeting will be called to resolve to wind up the company, nominate a liquidator and up to five members to join the liquidation committee. |
| Janine is a cashier at a bank branch. A customer is angry with her as she has delayed making a transaction, because in Janine's opinion it is an unusual transaction for this customer to make. Janine has called her manager, but he is busy with another client. As the customer begins to shout and become aggressive, Janine tells him that she has to make proper checks because the law requires her to validate unusual transactions. What offence has Janine potentially committed under the Proceeds of Crime Act 2002? Disclosure Failure to report her suspicion Money laundering Tipping off | Tipping off Janine has not concealed or disguised funds, and probably has not yet had time to report her suspicions. By alerting the customer to additional checks, she may be guilty of tipping off, which is bringing her suspicions to the attention of the customer. |
| EXL Ltd is a company which sources designer bathroom products from both UK-based and overseas suppliers. Most of EXL Ltd’s overseas business is carried out by local agents on its behalf. Adam, the managing director of EXL Ltd, wants to be sure that the company is complying with the requirements of the Bribery Act 2010. The following matters have come to his attention and he has asked for your advice: 1) Ravi, a director of EXL Ltd was recently invited to an event hosted by a potential supplier, PNK plc. EXL Ltd is in the process of considering proposals from PNK plc and two other companies and will award a lucrative contract to one of them. During the event, it was announced that Ravi had won a new car in a free prize draw. An employee of PNK plc joked with Ravi that winning the car should help PNK plc win the EXL Ltd contract. At the board meeting which followed, Ravi cast his vote in favour of PNK plc being awarded the contract. 2) One of the company’s agents overseas is making payments to government officials in order to expedite export licences for goods sent to the UK. | OK |
| Which of the following statements regarding the car won by Ravi is correct? Neither PNK plc nor Ravi have committed a bribery offence Both PNK plc and Ravi have committed a bribery offence Only Ravi has committed a bribery offence Only PNK plc has committed a bribery offence | Both PNK plc and Ravi have committed a bribery offence Given the circumstances in this scenario, ie that PNK plc are trying to secure a lucrative contract from EXL Ltd and that Ravi is a director of EXL Ltd who wins a free prize draw, both PNK plc and Ravi are committing bribery offences. PNK plc is committing the offence of bribing another person by providing Ravi with the car, and Ravi is committing the offence of being bribed by accepting the car. |
| Which of the following statements regarding the actions of EXL Ltd’s agent overseas is correct? No offence has been committed by EXL Ltd, since its contact overseas is an agent and not an employee No offence has been committed by EXL Ltd, since the events occurred overseas and not in the UK EXL Ltd has potentially committed the offence of failure to prevent bribery EXL Ltd has potentially committed the offence of bribing a foreign public official | EXL Ltd has potentially committed the offence of failure to prevent bribery EXL Ltd has potentially committed the offence of failure to prevent bribery. This offence occurs where an organisation, which includes a company like EXL Ltd, fails to prevent a bribery offence (here the bribing of the foreign official) by a person who performs services for it in any capacity, including as an agent. |
| For each of the following statements regarding bribery, indicate whether it is true or false. . True False A partnership cannot be guilty of the offence of corporate failure to prevent bribery The directors of a company found guilty of bribery can be sued for compensation for failing to maintain adequate procedures | A partnership cannot be guilty of the offence of corporate failure to prevent bribery - False The directors of a company found guilty of bribery can be sued for compensation for failing to maintain adequate procedures - True The offence of corporate failure to prevent bribery is committed by an organisation that fails to prevent bribery offences. An organisation includes companies and partnerships based in the UK or doing business in the UK. Although bribery is a criminal offence, there are also civil consequences to directors of a company. |
| Andrew is an investment fund manager. He has invested substantially in Greenbat plc, whose shares are not doing very well. He logs onto an investment website under another name and posts false information about Greenbat plc being subject to a takeover. The share price increases dramatically. Jane is also a fund manager. She buys a large amount of Greenbat plc shares at the end of the trading day in order to increase the share price. The following day, other investors follow this behaviour and Jane sells her shares at a large profit. Whose behaviour amounts to the offence of market abuse? Both Andrew’s and Jane’s Andrew’s only Jane’s only Neither Andrew’s nor Jane’s | Correct Answer Both Andrew’s and Jane’s Both actions will potentially give a misleading impression to other investors and are therefore in contravention of s.118 Financial Services and Markets Act 2000. |
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