Business Law Flashcards
7 cards from real ACA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business Law flashcards as text
Which of the following accurately describes a general partnership under the Partnership Act 1890?
Answer: Partners are jointly and severally liable for all firm debts
Under the Partnership Act 1890, partners in a general partnership are jointly and severally liable for all the debts and obligations of the firm.
A contract term that excludes liability for negligence will be subject to which statutory test under UCTA 1977?
Answer: The reasonableness test
Under the Unfair Contract Terms Act 1977, clauses excluding liability for negligence (other than death or personal injury) must satisfy the reasonableness test to be enforceable.
Under the Companies Act 2006, which document sets out the internal rules governing how a company is managed?
Answer: Articles of association
The articles of association govern the internal management of a company, covering matters such as directors' powers, share rights, and decision-making procedures.
In employment law, which test is primarily used to determine whether a worker is an employee rather than self-employed?
Answer: A multi-factor test including control, integration, and economic reality
Courts apply a multi-factor approach considering control, integration into the business, economic reality, and mutuality of obligation to determine employment status.
Which remedy allows a court to set aside a contract as if it had never existed, restoring the parties to their pre-contractual position?
Answer: Rescission
Rescission sets aside a voidable contract and restores both parties to their original positions, and is available for misrepresentation, undue influence, or duress.
Under the Fraud Act 2006, which of the following is NOT a recognised way of committing fraud?
Answer: Fraud by negligent misstatement
The Fraud Act 2006 creates three offences: false representation, failure to disclose information, and abuse of position — negligent misstatement is a civil tort, not a Fraud Act offence.
A floating charge crystallises and becomes a fixed charge when which of the following events occurs?
Answer: The company goes into administration or liquidation
A floating charge crystallises — converting into a fixed charge over the assets held at that moment — on events such as the appointment of a receiver, administration, or liquidation.