Quiz
Principles of Commercial Law
Questions in this quiz (63)
1What is law?
- ARefers to a system of rules that apply in a community.
- Ban agreement which is concluded between two or more persons.
- Cany entity which can be the object of a legal subject’s claim to a right.
- Dany right that which a legal subject has regarding a specific legal object.
2What is a legal subject?
- ARights which a person has to property, such as a book or a pen.
- BA human being or entity subject to the law.
- CThe bearer of rights duties and capabilities.
- DTwo of the above
3What is a legal object?
- AA human being or entity subject to the law.
- BRights relating to the aspect of personality.
- CThe bearer of rights duties and capabilities.
- DAny entity who can be the object of a legal subject’s claim to a right.
- AA human being or entity subject to the law.
44. What are subjective rights?
- AAny right that which a legal subject has regarding a legal object and which is protected by the law.
- BRights to intellectual property
- CThe relation between a legal subject and a legal object
- DAn agreement between the creditor and the debtor
55. What are the types of subjective rights?
- A1. Real Right.
2. Personal Right.
3. Personality Right.
4. Relationship rights - B1. Real Right.
2. Health Rights
3. Personality Right.
4. Intellectual Property Right - C1. Real Right.
2. Personal Right.
3. Personality Right.
4. Intellectual Property Right - D1. Fake Right.
2. Personal Right.
3. Personality Right.
4. Intellectual Property Right
- A1. Real Right.
66. What are Real Rights?
- ARights which a person has to property, such as a book or a pen.
Real rights can be classified as.
Ownership, servitude and mortgage and pledge - BRights whereby some or other conduct referred to as a performance, may be demanded from a person. Performance may consist of giving something, doing something or refraining from doing something.
- CRights relating to the aspect of personality.
For example the physical integrity and reputation of a person - DRights to intellectual property.
For example an artist’s right to a work of art.
- ARights which a person has to property, such as a book or a pen.
7What are personal rights?
- ARights to intellectual property.
For example an artist’s right to a work of art. - BRights relating to the aspect of personality.
For example the physical integrity and reputation of a person - CRights which a person has to property, such as a book or a pen.
Real rights can be classified as.
Ownership, servitude and mortgage and pledge - DRights whereby some or other conduct referred to as a performance, may be demanded from a person. Performance may consist of giving something, doing something or refraining from doing something.
- ARights to intellectual property.
88. What are personality rights?
- ARights whereby some or other conduct referred to as a performance, may be demanded from a person. Performance may consist of giving something, doing something or refraining from doing something.
- BRights relating to the aspect of personality.
For example the physical integrity and reputation of a person - CRights which a person has to property, such as a book or a pen.
Real rights can be classified as.
Ownership, servitude and mortgage and pledge - DRights to intellectual property.
For example an artist’s right to a work of art.
99. What are intellectual property rights?
- ARights whereby some or other conduct referred to as a performance, may be demanded from a person. Performance may consist of giving something, doing something or refraining from doing something.
- BRights relating to the aspect of personality.
For example the physical integrity and reputation of a person - CRights to intellectual property.
For example an artist’s right to a work of art. - DRights which a person has to property, such as a book or a pen.
Real rights can be classified as.
Ownership, servitude and mortgage and pledge
1010. What is a right?
- AA human being or entity subject to the law.
The bearer of rights duties and capabilities. - BThe relation between a legal subject and a legal object as well as between a legal subject and another legal subject. All rights can in one way or the other be linked to a legal object.
- CAny right that which a legal subject has regarding a legal object and which is protected by the law.
- DAn agreement between parties by which contractual parties settle a dispute between
them about an actual of supposed obligation.
- AA human being or entity subject to the law.
1111. What is a delict?
- A An agreement between the creditor and the debtor in term of which the creditor
releases the debtor from his or her contractual obligations. - Ban agreement which is concluded between two or more persons with the serious intention of creating legally enforceable obligations.
- Cany right that which a legal subject has regarding a specific legal object and
which is protected by law - DAn unlawful culpable act whereby a person, (the wrongdoer), cause another person, (the person prejudiced), damage or injury to personality, and whereby the person prejudiced is granted a right to damage or compensation, depending on the circumstances.
- A An agreement between the creditor and the debtor in term of which the creditor
1212. What are the sources of law in SA?
- A1. Statue law & legislation.
2. Customary law.
3. Judgements of the courts.
4. Old authority.
5. Foreign Law.
6. Textbooks and law journals. - B1. Statue law & legislation.
2. Customary law.
3. Judgements of the courts.
4. Criminal Law
5. Foreign Law.
6. Textbooks and law journals. - C1. Statue law & legislation.
2. Corporate law
3. Judgements of the courts.
4. Old authority.
5. Foreign Law.
6. Textbooks and law journals. - D1. Statue law & legislation.
2. Customary law.
3. Judgements of the courts.
4. British law
5. Foreign Law.
6. Textbooks and law journals.
- A1. Statue law & legislation.
13What is a contract?
- Ais a specific form of novation where a change of debtors may take place.
- Ban agreement which is concluded between two or more persons with the serious
intention of creating legally enforceable obligations. - Ca declaration made by a person (the offeror) in which he or she indicates an
intention to be contractually bound by the mere acceptance of the offer, and in which the - Da declaration by the offeree (the person to whom the offer was addressed)
through which it is indicated that he or she agrees to the terms of the offer exactly as expounded in
the offer.
14What is Legislation?
- Aa human being or entity subject to the law OR bearer of rights, duties and
capacities - BA right to intellectual property.
- CLegislation is the making of law by a competent authority.
- Da new agreement between contracting parties to replace an old obligation
with a new one.
- Aa human being or entity subject to the law OR bearer of rights, duties and
15Mention the four requirements which must be met before the courts will enforce
customary law?- AIt must be reasonable
It must have existed for a long time
It must be recognised and observed by the community
The contents of the customary rule must be certain and clear - BIt must be reasonable
It must have existed for a long time
It must be recognised and observed by the community
The contents of the customary rule must be in french - CIt must be reliabe
It must have existed for a short time
It must be recognised and observed by the community
The contents of the customary rule must be certain and clear - DIt must be reasonable
It must have existed for a long time
It must be recognised and observed by the community
The contents of the customary rule must be uncertain
- AIt must be reasonable
16List five most important ethical issues that business must deal with.
- AThe offer must be complete.
The offer must be clear and certain.
The offer may be made in any manner (i.e. expressly or tacitly).
The offer must be addressed either to a particular person or persons or in general to an
Unknown person or persons.
The offer has to be communicated to the offeree. - BIt improves society
It maintains a moral course in turbulent times
It cultivates strong teamwork and productivity
It supports employee growth and meaning
It ensures that policies within the workplace are legal - C• Conflicts of interest
• Financial and accounting integrity
• Corruption and bribery
• Consumer and employee privacy
• Ethical advertising
• Bioethics - DFinancial,
equipment,
organisational,
security,
legal/compliance,
operational,
- AThe offer must be complete.
17Name two essential elements or essentialia of a contract of sale.
- AThe object of the sale (merx)
The purchase price - BThe Purchase price
The buyer - CThe Purchase price
The seller - DThe Purchase price
The contract
- AThe object of the sale (merx)
18What is Actio redhibitoria.
- AThis remedy is available where the defect is less material and as such does not render the
Merx completely useless.
The purchaser keeps the merx and claims reduction in the purchase price of the merx. - BThe seller is the manufacturer and is liable for damages, including damages for
consequential loss. - C
This remedy is available if the defect is so material that the thing cannot be used.
The purchaser cancels the contract and claims repayment of the purchase price and interest. - DThe consequences of the contract take immediate effect, but it may be cancelled
depending on the occurrence of a specified uncertain future event
- AThis remedy is available where the defect is less material and as such does not render the
19What is Actio quanti minoris.
- AThis remedy is available if the defect is so material that the thing cannot be used.
The purchaser cancels the contract and claims repayment of the purchase price and interest. - BThis remedy is available where the defect is less material and as such does not render the
Merx completely useless.
The purchaser keeps the merx and claims reduction in the purchase price of the merx. - CThe consequences of the contract take immediate effect, but it may be cancelled
depending on the occurrence of a specified uncertain future event - DThe seller is the manufacturer and is liable for damages, including damages for
consequential loss.
- AThis remedy is available if the defect is so material that the thing cannot be used.
20What is Actio empti.
- AThe seller is the manufacturer and is liable for damages, including damages for
consequential loss. - BThe consequences of the contract take immediate effect, but it may be cancelled
depending on the occurrence of a specified uncertain future event - CThis remedy is available where the defect is less material and as such does not render the
Merx completely useless.
The purchaser keeps the merx and claims reduction in the purchase price of the merx. - DThis remedy is available if the defect is so material that the thing cannot be used.
The purchaser cancels the contract and claims repayment of the purchase price and interest.
- AThe seller is the manufacturer and is liable for damages, including damages for
21What is a Resolutive condition.
- AThis remedy is available where the defect is less material and as such does not render the
Merx completely useless.
The purchaser keeps the merx and claims reduction in the purchase price of the merx. - BThis remedy is available if the defect is so material that the thing cannot be used.
The purchaser cancels the contract and claims repayment of the purchase price and interest. - CThe seller is the manufacturer and is liable for damages, including damages for
consequential loss. - DThe consequences of the contract take immediate effect, but it may be cancelled
depending on the occurrence of a specified uncertain future event
- AThis remedy is available where the defect is less material and as such does not render the
22Who is responsible for compiling the risk management statement?
- AThe risk manager compiles the risk statement in conjunction with senior accountants
- BThe risk manager compiles the risk statement in conjunction with senior management and
executive directors. - CExecutive directors and secretaries compile the risk management statement
- DThe risk manager compiles the risk statement in conjunction with senior management and
marketing department.
23What is Indemnity Insurance
- Athe insurer undertakes to pay the insured or the beneficiary a fixed sum of money if the event insured against takes place.
An example is life insurance. - BIt is a specific form of novation where a change of debtors may take place.
The old obligation of the debtor to perform is extinguished and a new obligation to perform by another party is created. - Cthe insurer undertakes to make good the damages which the insured may suffer through the occurrence of the event insured against. An
example is property insurance. - D An agreement between the creditor and the debtor in term of which the creditor
releases the debtor from his or her contractual obligations.
- Athe insurer undertakes to pay the insured or the beneficiary a fixed sum of money if the event insured against takes place.
24What is Non Indemnity Insurance
- Athe insurer undertakes to pay the insured or the
beneficiary a fixed sum of money if the event insured against takes place. - BThose terms which are essential for the classification of a contract as belonging
To a particular class or category of contract. - Cthe insurer undertakes to make good the damages which
the insured may suffer through the occurrence of the event insured against. An
example is property insurance. - DTerms which the law attaches to every contract of a particular class.
- Athe insurer undertakes to pay the insured or the
25What is essentialia of a contract?
- ATerms which the law attaches to every contract of a particular class.
- BThose terms which are essential for the classification of a contract as belonging
To a particular class or category of contract. - Ca term, which exists automatically as part of a contract, without either
party having expressly referred to it. - Da term based on the intention of the parties which is stated verbally or
set down in writing.
26What is naturalia of a contract
- AThose terms which are essential for the classification of a contract as belonging
To a particular class or category of contract. - BTerms which the law attaches to every contract of a particular class.
- Ca term, which exists automatically as part of a contract, without either
party having expressly referred to it. - Da term based on the intention of the parties which is stated verbally or
set down in writing.
- AThose terms which are essential for the classification of a contract as belonging
27What is an implied term
- AThose terms which are essential for the classification of a contract as belonging
To a particular class or category of contract. - Ba term based on the intention of the parties which is stated verbally or
set down in writing. - CTerms which the law attaches to every contract of a particular class.
- Da term, which exists automatically as part of a contract, without either
party having expressly referred to it.
- AThose terms which are essential for the classification of a contract as belonging
28What is an express term?
- ATerms which the law attaches to every contract of a particular class.
- Ba term based on the intention of the parties which is stated verbally or
set down in writing. - CThose terms which are essential for the classification of a contract as belonging
To a particular class or category of contract. - Da term, which exists automatically as part of a contract, without either
party having expressly referred to it.
29Explain what risk elimination is.
- Aentails taking alternative action to avoid a potential peril before exposure to the risk
- Ba proactive technique of risk management.
We react to an existing risk and proactively try to eliminate the risk by changing the
circumstances of the risk. - Cabout dealing with the risks identified and consists of various measures
And techniques to ensure that we can survive the risk. - Dthe process of reducing the frequency of risk.
- Aentails taking alternative action to avoid a potential peril before exposure to the risk
30Explain what risk avoidance is.
- Aentails taking alternative action to avoid a potential peril before exposure
To the risk - Bis a proactive technique of risk management.
- Centails taking alternative action to avoid a disaster before exposure
to the risk. - Dthe process of reducing the frequency of risk.
- Aentails taking alternative action to avoid a potential peril before exposure
31When does the parol evidence rule apply?
- AIn terms of this rule the document is the only source of the terms of the contract
- BWhere a written contract is being interpreted by the court, no evidence may be received
by the court that tends to contradict, alter, add to or vary the written terms - CTwo of the above are correct
- DIf a contract is in writing the parol evidence rule applies to the contract.
32What is meant by the parol evidence rule?
- AIn terms of this rule the document is the only source of the terms of the contract
- BWhere a written contract is being interpreted by the court, no evidence may be received
by the court that tends to contradict, alter, add to or vary the written terms - CIf a contract is in writing the parol evidence rule applies to the contract.
- DNone of the above
33Name the essential elements of an insurance contract.
- Ai) An undertaking by the insured to pay a deposit
ii) An undertaking by the insurer to pay a sum of money or its equivalent
iii) A particular certain future event upon which the insurer's obligation to pay depends
(the risk)
iv) An insurable interest. - Bi) An undertaking by the insured to pay a premium
ii) An undertaking by the insurer to pay a sum of money or its equivalent
iii) A particular uncertain future event upon which the insurer's obligation to pay depends
(the risk)
iv) An insurable interest. - Cnon of the above
- Dtwo of the above
- Ai) An undertaking by the insured to pay a deposit
34List the benefits of having a good corporate ethics programme in a business.
- ACommunicate and consult
Establish the context
Identify the risk
Analyse the risk
Evaluate the risk
Treat the risk
Monitor and review - BIt improves society
It maintains a moral course in turbulent times
It cultivates strong teamwork and productivity
It supports employee growth and meaning
It ensures that policies within the workplace are legal
It helps to avoid criminal acts and lower fines due to violations by organizations
It promotes a strong public image of an organisation
It is most importantly the right thing to do - CThere must be a misrepresentation.
The misrepresentation must be made by one party to another
The misrepresentation must be unlawful.
The misrepresentation must have induced the contract as it stands.
The misrepresentation can be made intentionally, negligently or innocently - Dnone of the above
- ACommunicate and consult
35
The risk management process consists of a series of steps that, when undertaken in
sequence, enable continual improvement in decision-making.
Name the 7 steps.- ADischarge
Cancellation
Rescission
Agreement
Merger
Set-off
Supervening impossibility of performance - BIt improves society
It maintains a moral course in turbulent times
It cultivates strong teamwork and productivity
It supports employee growth and meaning
It ensures that policies within the workplace are legal
It helps to avoid criminal acts and lower fines due to violations by organizations
It promotes a strong public image of an organisation
It is most importantly the right thing to do - C• Conflicts of interest
• Financial and accounting integrity
• Corruption and bribery
• Consumer and employee privacy
• Ethical advertising
• Bioethics - DCommunicate and consult
Establish the context
Identify the risk
Analyse the risk
Evaluate the risk
Treat the risk
Monitor and review
- ADischarge
36What are the 5 forms of breach of contract?
- A1. Default by the insurer
2. Default by the partnership
3. Positive malperformance
4. Repudiation
5. Prevention of performance - B1. Default by the debtor
2. Default by the creditor
3. Positive malperformance
4. Repudiation
5. Prevention of performance - C1. There must be a misrepresentation.
2. The misrepresentation must be made by one party to another
3. The misrepresentation must be unlawful.
4. The misrepresentation must have induced the contract as it stands.
5. There must be a misunderstanding by the debtor and creditor
The misrepresentation can be made intentionally, negligently or innocently - D1. Default by the debtor
2. Default by the creditor
3. Positive malperformance
4. Repudiation
5. Death of a partner
- A1. Default by the insurer
37What is Default by the debtor.
- AA debtor commits breach of contract in the form of default of the debtor or mora debitoris if he/she fails to perform at the agreed time and the delay is due to the debtors fault. It is then said the debtor is in default or in mora
- BDefault of the debtor occurs where the debtor causes the creditors performance to be delayed. Mora debitoris is a form of breach of contract which can occur only where discharge of the creditors obligation involves bilateral juristic act, that is, where the debtors co operation is required for the creditor to be able to render performance.
- CDefault of the debtor is that form of breach of contract which occurs when the debtor commits an act which is contrary to the terms of the contract. Performance can be that a person must do something or refrain from doing something For this reason 2 situations can be distinguished with regard to default of the debtor:
1. The debtor tenders defective or improper performance
2. The debtor does something that he/she may not do in terms of the agreement/ - DDefault by the debtor is any behaviour by a party to a contract indicating that he/she may not honour the obligations under the contract. A party can behave in this way with regard to all his/her obligations in terms of the contract. It is also possible for a party to default only some of his/her obligations or part of the contract. Default of the debtor constitutes breach of contract, entitling the innocent party to the usual remedies for breach of contract.
- AA debtor commits breach of contract in the form of default of the debtor or mora debitoris if he/she fails to perform at the agreed time and the delay is due to the debtors fault. It is then said the debtor is in default or in mora
38What is default by the Creditor?
- AA debtor commits breach of contract in the form of default of the creditor (mora crditoris) if he/she does not perform at the agreed time and the delay is due to the creditors fault. It is then said that the creditor is in default or in mora
- BDefault of the creditor is that form of breach of contract which occurs when the creditor commits an act which is contrary to the terms of the contract. Performance can be to do something or refrain from doing something. For this reason there are 2 situations which can be distinguished with regard to default of the creditor:
1. The creditor tenders defective of improper performance
2. the creditor does something he/she may not do in terms of the agreement - Cdefault of the creditor or mora creditoris occurs where the creditor causes the debtors performance to be delayed. Mora creditoris is a form of breach of contract which can occur only where the discharge of the debtors obligations involves a bilaterial juritic act, that is where the creditors co operation is required for the debtor to be able to render performance.
- DDefault by the creditor is any behaviour by a party to a contract indicating that he/she may not honour the obligations under the contract. A party can behave in this way with regard to all his/her obligations in terms of the contract. It is also possible for a party to default only some of his/her obligations or a part of the contract. Default of the creditor constitutes breach of contract, entitling the innocent party to the usual remedies for breach or contract.
39What is positive malperformance?
- APositive malperformance occurs where the creditor causes the debtors performance to be delayed. Positive malperformance is a form of breach of contract which can occur only where the discharge of the debtors obligation involves a bilateral jusritic act, that is, there the creditors co operation is required for the debtor to be able to render performance
- BPositive malperformance is that form of breach of contract which occurs when the debtor commits an act which is contrary to the terms of the contract. Performance can be that a person must do something or refrain from doing something For this reason 2 situations can be distinguished with regard to Positive malperformance:
1. The debtor tenders defective or improper performance
2. The debtor does something he/she may not do in terms of the agreement
2. The debtor does something that he/she may not do in terms of the agreement/ - CPositive malperformance is any behaviour by a party to a contract indicating that he/she may not honour the obligations under the contract. A party can behave in this way with regard to all his/her obligations in terms of the contract. It is also possible for a party to malperform only some of his/her obligations and part of the contract. Positive malperformance constitutes breach of contract entitling the innocent party to the usual remedies for breach of contract.
- DA person commits breach of contract in the form of positive malperformance if he/she does not perform at the agreed time and the delay is due to the debtors fault. It is then said that the debtor is in malperformance.
40What is repudiation
- ARepudiation is the form of breach of contract which occurs when the debtor commits an act contrary to the terms of the contract. Performance can be that a person must do something or refrain from doing something. For this reason 2 situations may be distinguished with regard to repudiation:
1. The debtor tenders defective or improper performance
2. the debtor does something that he/she may not do in terms of the agreement - BRepudiation occurs where the creditor caused the debtors performance to be delayed. Repudiation is a form of breach of contract which can occur only where discharge of the debtors obligation involves a bilateral juristic act, ie, the creditors cooperation is required for the debtor to be able to render performance
- CA debtor commits breach of contract in the form of repudiation when he/she fails to perform at the agreed time and the delay is due to the fault of the debtor. It is then said the debtor is in repudiation.
- DRepudiation is any behaviour by a party to a contract indicating that he/she may not honour the obligations under the contract. A party can behave in this way with regard to all his/her obligations in terms of the contract. It is also possible for a party to repudiate only some of his/her obligations and part of the contract. Repudiation constitutes breach of contract entitling the innocent party to the usual remedies for breach of contract.
- ARepudiation is the form of breach of contract which occurs when the debtor commits an act contrary to the terms of the contract. Performance can be that a person must do something or refrain from doing something. For this reason 2 situations may be distinguished with regard to repudiation:
41What is prevention of performance by the debtor?
- AThe debtor who culpably renders the creditors performance impossible commits breach of contract in the form of prevention of performance. In this case of prevention of performance by the debtor the creditor performance is made impossible and consequently can never be rendered. The creditor is still entitled to the debtor's performance, but the creditor must bring into account any expenses which have been saved by reason of the creditor no longer being obliged to perform
- BThe debtor commits breach of contract in the form of prevention of performance when he/she culpably renders his/her performance impossible. In this case the debtor is not released from the obligation to perform. Because the debtor can no longer perform as agreed, he/she will have to pay damages instead of performing
- Call of the above
- Dnone of the above
42What is prevention of performance by the creditor
- Anone of the above
- BThe creditor commits breach of contract in the form of prevention of performance where he/she culpably renders his/her own performance impossible. In this case the debtor is nor released from the obligation to perform. Because the debtor can no longer perform as agreed, he/she will have to pay damages instead of performing.
- CThe creditor who culpably renders the debtors performance impossible commits breach of contract in the form of prevention of performance. In this case of prevention of performance by the creditor, the debtors performance is made impossible and consequently can never be rendered. The debtor is still entitled to the creditor's performance, but the debtor must bring into account any expenses which have been saved by reason of the debtor no longer being obliged to perform
- Dall of the above
43What are the remedies for breach of contract
- A1. Cancellation of contract
2. Pause of contract
3. Agreement to cancel - B1. Agreement
2. Death
3. Legality - C1. Damages
2. Cancellation
3. Default - D1. Execution of the contract
2. Cancellation of the contract
3. Damages
- A1. Cancellation of contract
44What is execution of the contract?
- AThe parties can expressly agree in their contract that one or both of them will be entitled to execute the contract if the other party commits breach of contract. If a contract does not contain an execution clause, the innocent party will be entitled to execute the contract only if the brech of contract is material, that is of a serious nature.
- BExecution of the contract can comprise one of three possible orders:
1. An order for specific performance
2. An order for reduced performance
3. A prohibitory interdict
The remedy of execution of the contract is the obvious remedy for breach of contract, since it attempts to achieve the same result as was intended originally by the parties. - CIf a party is persuaded through undue influence to conclude a contract, his will is directed at the contents of the contract and a contract does indeed come into existence. However, the party’s assent to the contract has been obtained improperly so that his independent will was not exercised. Consequently the victim may elect to uphold or rescind the contract and/or claim damages based on his or her negative interest. Therefore the contract is voidable
- DThe contract is voidable where there is consensus, but the consensus has been obtained by improper means such as misrepresentation, duress or undue influence the contract is voidable.
45What is cancellation of contract?
- AThe parties can expressly agree in their contract that one or both of them will be entitled to cancel the contract if the other party commits breach of contract. If a contract does not contain a cancellation clause, the innocent party will be entitled to cancel the contract only if the breach of contract is material, that is of a serious nature.
- BCancellation of the contract can comprise one of three possible orders:
1. An order for specific performance
2. An order for reduced performance
3. A cancellation of performance.
The remedy of cancellation of the contract is the obvious remedy for breach of contract, since it attempts to achieve the same result as was intended originally by the parties. - CThe contract is voidable where there is consensus, but the consensus has been obtained by improper means such as misrepresentation, duress or undue influence the contract is voidable.
- DIf a party is persuaded through undue influence to conclude a contract, his will is directed at the contents of the contract and a contract does indeed come into existence. However, the party’s assent to the contract has been obtained improperly so that his independent will was not exercised. Consequently the victim may elect to uphold or rescind the contract and/or claim damages based on his or her negative interest. Therefore the contract is voidable.
46Describe the reduction of risk.
- AThe aim of risk reduction is to reduce the effects of a risk. Risk reduction concentrates on reducing losses to the lowest possible level. However, risk reduction acknowledges that we cannot totally eliminate risk, but may be able to restrict the damage
caused by the risk. - BRisk reduction is the process of reducing the frequency of risk. Reduction of risk starts at
Government level. For example, legislation regulates building standards and the
workplace environment. In practice, we introduce physical protection and good housekeeping to reduce the occurrence of risk. - CThe reduction of risk takes place because all risks cannot be avoided or eliminated and the
effect of minimisation cannot be guaranteed. For example, even if we install the best fire
prevention measures we still cannot guarantee that a fire will not occur and then spread
uncontrollably. Therefore, the risk can be transferred to third parties by either transferring
the rights to the assets at risk, or by transferring the risk to an insurer by paying a
premium. Note that when we refer to the reduction of risk, we are referring to the effect of
the risk and not the risk itself.
- AThe aim of risk reduction is to reduce the effects of a risk. Risk reduction concentrates on reducing losses to the lowest possible level. However, risk reduction acknowledges that we cannot totally eliminate risk, but may be able to restrict the damage
47Describe risk elimination
- AThe aim of risk minimisation is to reduce the effects of a risk. Risk minimisation
concentrates on reducing losses to the lowest possible level. However, risk minimisation
acknowledges that we cannot totally eliminate risk, but may be able to restrict the damage caused by the risk. - BThe elimination of risk takes place because all risks cannot be avoided or eliminated and the effect of minimisation cannot be guaranteed. For example, even if we install the best fire prevention measures we still cannot guarantee that a fire will not occur and then spread
uncontrollably. Therefore, the risk can be eliminated to third parties by transferring the risk - CNone of the above
- DRisk minimisation is the process of reducing the frequency of risk. Minimisation of risk starts at
Government level. For example, legislation regulates building standards and the
workplace environment. In practice, we introduce physical protection and good
housekeeping to minimise the occurrence of risk.
- AThe aim of risk minimisation is to reduce the effects of a risk. Risk minimisation
48Describe transfer of risk
- AThe aim of transfer of risk is to reduce the effects of a risk. Transfer of risk concentrates on reducing losses to the lowest possible level. However, Transfer of risk acknowledges that we cannot totally eliminate risk, but may be able to restrict the damage caused by the risk.
- BThe transfer of risk takes place because all risks cannot be avoided or eliminated and the
effect of minimisation cannot be guaranteed. For example, even if we install the best fire
prevention measures we still cannot guarantee that a fire will not occur and then spread
uncontrollably. Therefore, the risk can be transferred to third parties by either transferring
the rights to the assets at risk, or by transferring the risk to an insurer by paying a
premium. Note that when we refer to the transfer of risk, we are referring to the effect of
the risk and not the risk itself. - CAll of the above
- DTransfer of risk is the process of reducing the frequency of risk. Transfer of risk starts at Government level. For example, legislation regulates building standards and the workplace environment. In practice, we introduce physical protection and good
housekeeping to reduce the occurrence of risk.
- AThe aim of transfer of risk is to reduce the effects of a risk. Transfer of risk concentrates on reducing losses to the lowest possible level. However, Transfer of risk acknowledges that we cannot totally eliminate risk, but may be able to restrict the damage caused by the risk.
49Describe business ethics.
- ABusiness ethics is an invitation to do business. It does not constitute an offer.
When a person reacts to this invitation, he makes the dealer an offer to buy the advertised
Item If the advertiser accepts the offer, consensus is reached and a contract of sale arises. - BBusiness Ethics is a declaration by the offeree (the person to whom the offer was addressed)
through which it is indicated that he or she agrees to the terms of the offer exactly as expounded in
the offer. - CBusiness ethics can be defined as written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world, the organization’s culture sets standards for determining the difference between good and bad decision making and behaviour. In the most basic terms, a definition for business ethics boils down to knowing the difference between right and wrong and choosing to do what is right. The phrase 'business ethics' can be used to describe the actions of individuals within an organization, as well as the organization as a whole.
- DBusiness Ethics is a declaration made by a person (the offeror) in which he or she indicates an intention to be contractually bound by the mere acceptance of the offer, and in which the
person sets out the rights and duties he or she wishes to create
- ABusiness ethics is an invitation to do business. It does not constitute an offer.
50What is an offer
- AAn offer is a declaration by the offeree (the person to whom the offer was addressed) through which it is indicated that he or she agrees to the terms of the offer exactly as expounded in the offer.
- BAn offer is a declaration made by a person (the offeror) in which he or she indicates an
intention to be contractually bound by the mere acceptance of the offer, and in which the
person sets out the rights and duties he or she wishes to create - CAn offer is an invitation to do business. It does not constitute an advertisement.
When a person reacts to this invitation, he makes the dealer an offer to buy the offered
Item If the advertiser accepts the offer, consensus is reached and a contract of sale arises. - Dall of the above
- AAn offer is a declaration by the offeree (the person to whom the offer was addressed) through which it is indicated that he or she agrees to the terms of the offer exactly as expounded in the offer.
51What is an acceptance
- AAn acceptance is a declaration by the offeree (the person to whom the offer was addressed)
through which it is indicated that he or she agrees to the terms of the offer exactly as expounded in the offer. - BNone of the above
- CAn acceptance is an invitation to do business. It does not constitute an offer.
When a person reacts to this invitation, he makes the dealer an offer to buy the advertised
Item If the advertiser accepts the offer, consensus is reached and a contract of sale arises. - DAn acceptance is a declaration made by a person (the offeror) in which he or she indicates an
intention to be contractually bound by the mere acceptance of the offer, and in which the
person sets out the rights and duties he or she wishes to create
- AAn acceptance is a declaration by the offeree (the person to whom the offer was addressed)
52What is an advertisement
- AAn advertisement is a declaration made by a person (the offeror) in which he or she indicates an
intention to be contractually bound by the mere acceptance of the offer, and in which the
person sets out the rights and duties he or she wishes to create - BAn advertisement is a declaration by the offeree (the person to whom the offer was addressed)
through which it is indicated that he or she agrees to the terms of the offer exactly as expounded in
the offer. - CAdvertisement is an invitation to do business. It does not constitute an offer.
When a person reacts to this invitation, he makes the dealer an offer to buy the advertised
Item If the advertiser accepts the offer, consensus is reached and a contract of sale arises. - DAll of the above
- AAn advertisement is a declaration made by a person (the offeror) in which he or she indicates an
53Name the requirements to be satisfied before a misrepresentation will render the
contract voidable.- A● The misrepresentation must be similar in nature,
●The misrepresentation must be liquidated.
● The misrepresentation must be claimable.
● The misrepresentation must be between the same persons.
The misrepresentation must in fact be reciprocal, that is, They must exist between the same parties in the same capacities - BThere must be a misrepresentation.
The misrepresentation must be made by one party to another
The misrepresentation must be unlawful.
The misrepresentation must have induced the contract as it stands.
The misrepresentation can be made intentionally, negligently or innocently - CWhere the seller is aware of defects in the merx but does not disclose this to the purchaser
or if the seller induces the contract by making false representations about good qualities
of the merx, the purchaser may rely on the actio empti to claimdamages. - DWhere the seller is the manufacturer of the merx P or a specialist dealer who publicly
claims to have expertise regarding the merx, he can, if it is defective, be held liable for
damages, including consequential damages.
- A● The misrepresentation must be similar in nature,
54There are eight guidelines for managing ethics in the workplace.
Name 6 of these guidelines.- ARecognize that managing ethics is a process.
The bottom line of an ethics program is accomplishing preferred behaviours in the workplace
The best way to handle ethical dilemmas is to avoid their occurrence in the first place.
Make ethics decisions in groups, and make decisions public, as appropriate.
Integrate ethics management with other management practices.
Value forgiveness.
Note that trying to operate ethically and making a few mistakes is better than not trying at all. - B• strong, visible support from top management,
• ensuring that ethical values (e.g. honesty), and not only performance values (e.g.
innovation), figure prominently in mission statement and codes of conduct
• appointing ethics officers, creating innovative ethics training formats, and setting up
ethics help lines;
• carrying out ongoing evaluations/audits of ethical performance, with rewards and
sanctions; and
• creating board ethics and/or corporate responsibility committees.
•Employee benifits - CCommunicate and consult
Establish the context
Identify the risk
Analyse the risk
Evaluate the risk
Monitor and review - DEstablish organisational roles to manage ethics.
Schedule ongoing assessments of ethics requirements
Establish operating values and behaviours
Align organisational behaviours with operating values
Develop awareness and sensitivity to ethical issues
Integrate ethical guidelines and decision-making
- ARecognize that managing ethics is a process.
55Identify benefits in managing ethics as a programme
- ACommunicate and consult
Establish the context
Identify the risk
Analyse the risk
Evaluate the risk
Treat the risk
Monitor and review - B• strong, visible support from top management,
• ensuring that ethical values (e.g. honesty), and not only performance values (e.g.
innovation), figure prominently in mission statement and codes of conduct
• appointing ethics officers, creating innovative ethics training formats, and setting up
ethics help lines;
• carrying out ongoing evaluations/audits of ethical performance, with rewards and
sanctions; and
• creating board ethics and/or corporate responsibility committees. - CRecognize that managing ethics is a process.
The bottom line of an ethics program is accomplishing preferred behaviours in the workplace
The best way to handle ethical dilemmas is to avoid their occurrence in the first place.
Make ethics decisions in groups, and make decisions public, as appropriate.
Integrate ethics management with other management practices.
Use cross-functional teams when developing and implementing the ethics management
program.
Value forgiveness.
Note that trying to operate ethically and making a few mistakes is better than not trying at all. - DEstablish organisational roles to manage ethics.
Schedule ongoing assessments of ethics requirements
Establish operating values and behaviours
Align organisational behaviours with operating values
Develop awareness and sensitivity to ethical issues
Integrate ethical guidelines and decision-making
Structure mechanisms to resolving ethical dilemmas
Ensure ongoing evaluation and updates to the programmes
Help convince employees of the long-term benefits of attention to ethics
- ACommunicate and consult
564. Give strategies that can be used to create an ethical culture in a business.
- ARecognize that managing ethics is a process.
The bottom line of an ethics program is accomplishing preferred behaviours in the workplace
The best way to handle ethical dilemmas is to avoid their occurrence in the first place.
Make ethics decisions in groups, and make decisions public, as appropriate.
Integrate ethics management with other management practices.
Use cross-functional teams when developing and implementing the ethics management
program.
Value forgiveness.
Note that trying to operate ethically and making a few mistakes is better than not trying at all. - B• strong, visible support from top management,
• ensuring that ethical values (e.g. honesty), and not only performance values (e.g.
innovation), figure prominently in mission statement and codes of conduct
• appointing ethics officers, creating innovative ethics training formats, and setting up
ethics help lines;
• carrying out ongoing evaluations/audits of ethical performance, with rewards and
sanctions; and
• creating board ethics and/or corporate responsibility committees. - CCommunicate and consult
Establish the context
Identify the risk
Analyse the risk
Evaluate the risk
Treat the risk
Monitor and review - DEstablish organisational roles to manage ethics.
Schedule ongoing assessments of ethics requirements
Establish operating values and behaviours
Align organisational behaviours with operating values
Develop awareness and sensitivity to ethical issues
Integrate ethical guidelines and decision-making
Structure mechanisms to resolving ethical dilemmas
Ensure ongoing evaluation and updates to the programmes
Help convince employees of the long-term benefits of attention to ethics
- ARecognize that managing ethics is a process.
57How can a good corporate ethics programme help a business to be more successful?
- A• strong, visible support from top management,
• ensuring that ethical values (e.g. honesty), and not only performance values (e.g.
innovation), figure prominently in mission statement and codes of conduct
• appointing ethics officers, creating innovative ethics training formats, and setting up
ethics help lines;
• carrying out ongoing evaluations/audits of ethical performance, with rewards and
sanctions; and
• creating board ethics and/or corporate responsibility committees. - BCommunicate and consult
Establish the context
Identify the risk
Analyse the risk
Evaluate the risk
Treat the risk
Monitor and review - C• Avoid insolvency, fines, lawsuits and criminal charges
• Protect and strengthen sales, brand image, and reputation
• Protect the company, especially during times of stress and change
• Strengthen employee loyalty and commitment
• Avoid prescriptive government regulation
• Avoid loss of business
• Limit vulnerability to activist pressure and boycotts:
• Enjoy greater access to capital - DIt improves society
It maintains a moral course in turbulent times
It cultivates strong teamwork and productivity
It supports employee growth and meaning
It ensures that policies within the workplace are legal
It helps to avoid criminal acts and lower fines due to violations by organizations
It promotes a strong public image of an organisation
It is most importantly the right thing to do
- A• strong, visible support from top management,
58Explain Statue law & legislation.
- AThe making of law by a competent authority.
It can be found in statues enacted by PARLIAMENT AND PROVISIONAL LEGISLATIVE
and proclamations, regulations and bylaws enacted by subsidiary legislative bodies, such as,
the president, ministers and municipalities.
The most important source of law. - BDoes not consist of written rules.
Developed from the habits of the community.
Passed down from generation to generation.
For statue law to be recognised it must be:
Reasonable.
Existed for a long time.
The contents must be certain and clear. - CThere are numerous textbooks and law journals on SA law.
These works have no inherit authority on their own.
If they are methodical and convincing expositions of law
they may have a persuasive influence on the courts - DCan be divided into Superior and lower court.
Superior courts are Constitutional, Supreme court of appeal and high court.
The lower courts are lower in statue than the high court.
The lower court are required to keep records of all their proceedings.
- AThe making of law by a competent authority.
59Explain Customary Law.
- ACan be divided into Superior and lower court.
Superior courts are Constitutional, Supreme court of appeal and high court.
The lower courts are lower in statue than the high court.
The lower court are required to keep records of all their proceedings. - BDoes not consist of written rules.
Developed from the habits of the community.
Passed down from generation to generation. - Cif nothing can be found in any of the sources, the judge may turn to the law
of other modern countries for judgement
Not regarded as an authorative source of sa law.
Have persuasive authority only. - DOld juristics of Holland.
Authoritive in the courts.
The body of the law provided by the old authority is also known as the common law.
- ACan be divided into Superior and lower court.
60Explain Textbook Journals.
- ACan be divided into Superior and lower court.
Superior courts are Constitutional, Supreme court of appeal and high court.
The lower courts are lower in statue than the high court.
The lower court are required to keep records of all their proceedings. - BDoes not consist of written rules.
Developed from the habits of the community.
Passed down from generation to generation. - COld juristics of Holland.
Authoritive in the courts.
The body of the law provided by the old authority is also known as the common law.
- DThere are numerous textbooks and law journals on SA law.
These works have no inherit authority on their own.
If they are methodical and convincing expositions of law
they may have a persuasive influence on the courts
- ACan be divided into Superior and lower court.
61Explain Judgements of the Courts.
- ACan be divided into Superior and lower court.
Superior courts are Constitutional, Supreme court of appeal and high court.
The lower courts are lower in statue than the high court.
The lower court are required to keep records of all their proceedings. - Bif nothing can be found in any of the sources, the judge may turn to the law
of other modern countries for judgement
Not regarded as an authorative source of sa law.
Have persuasive authority only. - COld juristics of Holland.
Authoritive in the courts.
The body of the law provided by the old authority is also known as the common law. - DDoes not consist of written rules.
Developed from the habits of the community.
Passed down from generation to generation.
- ACan be divided into Superior and lower court.
62Explain foreign law
- Aif nothing can be found in any of the sources, the judge may turn to the law
of other modern countries for judgement
Not regarded as an authorative source of sa law.
Have persuasive authority only. - BCan be divided into Superior and lower court.
Superior courts are Constitutional, Supreme court of appeal and high court.
The lower courts are lower in statue than the high court.
The lower court are required to keep records of all their proceedings. - COld juristics of Holland.
Authoritive in the courts.
The body of the law provided by the old authority is also known as the common law. - DDoes not consist of written rules.
Developed from the habits of the community.
Passed down from generation to generation.
- Aif nothing can be found in any of the sources, the judge may turn to the law
63Explain Old Authority
- ACan be divided into Superior and lower court.
Superior courts are Constitutional, Supreme court of appeal and high court.
The lower courts are lower in statue than the high court.
The lower court are required to keep records of all their proceedings. - BOld juristics of Holland.
Authoritive in the courts.
The body of the law provided by the old authority is also known as the common law. - CDoes not consist of written rules.
Developed from the habits of the community.
Passed down from generation to generation. - Dif nothing can be found in any of the sources, the judge may turn to the law
of other modern countries for judgement
Not regarded as an authorative source of sa law.
Have persuasive authority only.
- ACan be divided into Superior and lower court.
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