Question 5 The court stated that the advertisement in Carlill v Carbolic Smoke Ball Co....

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Accounting

Question 5

The court stated that the advertisement in Carlill v Carbolic Smoke Ball Co. was which of the following?

A

An invitation to treat

B

An offer

C

A statement of intention

D

Of no legal effect whatsoever

Question 6

Dai texts Pip offering to sell his car to her for 2,000. Pip replies offering to buy the car for 1,500. Dai texts back 'no way'. Pip replies by text stating she will accept the car for 2,000.

Which of the following statements is correct?

A

An offer has been made by Dai and acceptance by Pip

B

An offer has been made by Pip and acceptance by Dai

C

Dai first statement is an invitation to treat

D

Pip's second statement is an offer to buy the car for 2,000

Question 7

Which of the following does not amount to acceptance of an offer?

A

When the acceptance is put in the post by the offeree

B

When the acceptance is received by the offeror

C

When a third party informs the offeror that the offeree is accepting the offer

Questions 8-12: Law of Tort

Question 8

Which of the following interests is not protected by the law of tort?

A

Loss of commercial profit due to competition

B

Reputation

C

Physical safety

D

Peaceful enjoyment of one's land

Question 9

The Caparo test for duty of care provides that three factors must be taken into account. Which of the following is not included?

A

Fair, just and reasonable

B

Proximity

C

Morality

D

Foreseeability

Question 10

Why did the claimant in Donoghue v Stevenson bring her action in tort instead of contract?

A

Because the claimant had not actually purchased the ginger beer herself

B

Because the purchaser of the ginger beer was indirectly injured

C

Because the seller of the ginger beer was not responsible for the snail in the bottle

D

Because the presence of the snail was a defect in quality rather than a danger

Question 11

You have just passed your driving test and you drive into a pedestrian negligently.

Which of the following standards will the court use to judge you?

A

Objective standard of a newly qualified driver; lack of experience will be taken into account

B

Objective standard of a competent driver; lack of experience will not be taken into account

C

Subjective standard of actual ability

Question 12

Who do auditors owe a duty of care?

A

A potential investor with no current holding

B

An existing shareholder looking to increase their holding

C

A company looking to make a takeover bid for the company

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