SQE1 FLK1 Practice Paper 7

A director of a private limited company enters into a contract on behalf of the company to purchase office equipment from a supplier who is also a director of the company. The director did not declare their interest in the transaction to the board. What is the legal consequence? A) The contract is automatically void B) The director has breached their duty to declare an interest in a proposed transaction under s 177 Companies Act 2006 C) The contract is voidable at the option of the supplier D) The director is personally liable for all company debts

A claimant wishes to bring a claim for personal injury arising from a road traffic accident. The accident occurred 4 years ago. The claimant only discovered the full extent of their injuries 18 months ago. What is the limitation position? A) The claim is time-barred as the 3-year limitation period from the date of the accident has expired B) The claim is within time as the 3-year period runs from the date of knowledge of the injury C) The claim is time-barred as the 6-year limitation period applies to personal injury claims D) The claim is within time as there is no limitation period for personal injury claims

A buyer and seller enter into a contract for the sale of a specific painting. Before delivery, the painting is destroyed by a fire at the seller's gallery through no fault of either party. Who bears the risk of loss? A) The buyer, because risk passes when the contract is made for specific goods B) The seller, because risk does not pass until delivery C) Both parties equally, under the doctrine of frustration D) The buyer, because the painting was ascertained goods

A hospital trust owes a duty of care to its patients. A surgeon employed by the trust negligently performs an operation, causing injury to a patient. On what basis is the trust liable? A) The trust is liable under the non-delegable duty of care doctrine B) The trust is liable in its own right for direct negligence only C) The trust is vicariously liable for the surgeon's negligence as the surgeon is an employee acting in the course of employment D) The trust is not liable because the surgeon is an independent professional

Which of the following correctly describes the doctrine of Parliamentary sovereignty? A) Parliament can make or unmake any law, and no body can override or set aside legislation B) Parliament can make any law but the courts can declare Acts of Parliament unconstitutional C) Parliament shares legislative sovereignty with the devolved assemblies D) Parliament's sovereignty is limited by international treaty obligations

A company is in financial difficulty and enters administration. Which of the following best describes the primary objective of administration? A) To wind up the company and distribute assets to creditors B) To rescue the company as a going concern, or achieve a better result for creditors than winding up C) To protect the interests of shareholders above all other stakeholders D) To allow the directors to continue trading without restriction

A claimant brings a claim in the County Court for breach of contract. The claim is valued at £8,000. To which track will the case most likely be allocated? A) The small claims track B) The fast track C) The multi-track D) The intermediate track

A manufacturer produces a defective product that injures a consumer. The consumer has no contractual relationship with the manufacturer. Under the Consumer Protection Act 1987, who is strictly liable for the defect? A) The retailer who sold the product to the consumer B) The manufacturer of the product C) The consumer, as there is no contractual relationship D) No one, as liability requires proof of negligence

An offer is made by email on Monday. On Tuesday, the offeror posts a letter revoking the offer. On Wednesday, before receiving the revocation letter, the offeree posts a letter of acceptance. When is the contract formed? A) On Tuesday, when the revocation was posted B) On Wednesday, when the acceptance was posted C) When the offeror receives the acceptance letter D) No contract is formed because the revocation was sent before the acceptance

Under the Occupiers' Liability Act 1984, what duty does an occupier owe to trespassers? A) The same duty of care as owed to lawful visitors under the 1957 Act B) A duty to take such care as is reasonable in all the circumstances to see that the trespasser is not injured by any danger on the premises C) No duty of care whatsoever D) A duty only to refrain from deliberately injuring the trespasser

Which of the following is a requirement for a valid trust to be created? A) The trust must be registered with the Charity Commission B) There must be certainty of intention, certainty of subject matter, and certainty of objects C) The trust must be created by deed D) The beneficiaries must provide consideration

A public body refuses to grant a licence to an applicant. The applicant had a legitimate expectation of being consulted before the decision was made, based on a clear representation by the public body. What remedy might the court grant on judicial review? A) The court will order the public body to grant the licence B) The court may quash the decision and order the public body to reconsider after proper consultation C) The court will award damages for breach of legitimate expectation D) The court has no jurisdiction to review decisions about licences

A company has issued 1,000 ordinary shares. Shareholder A holds 510 shares and Shareholder B holds 490 shares. The board proposes to allot new shares. Which of the following correctly states the statutory pre-emption rights position? A) Existing shareholders have no right to be offered new shares before they are allotted to third parties B) Existing shareholders must be offered new shares in proportion to their existing holdings before allotment to others C) Only Shareholder A has pre-emption rights as a majority shareholder D) Pre-emption rights only apply to public companies

Under EU retained law, what is the effect of a directly effective EU Directive provision where the state has failed to implement it correctly? A) The Directive can be enforced horizontally against private individuals B) The Directive can only be enforced vertically against the state or an emanation of the state C) The Directive has no legal effect until implemented by national legislation D) The Directive automatically becomes part of national law without implementation

A party to litigation wishes to appeal a decision of a District Judge sitting in the County Court. To which court does the appeal lie? A) The Court of Appeal B) A Circuit Judge in the County Court C) The High Court D) The Supreme Court