Law

1. The person on whose behalf an agent acts is known as: [2 Mark’s] A Promoter
B Preparer

C Principal

D Person of Interest

2. Which of the following is NOT a condition to create a relation of agency by necessity: [2 Marks]

A An emergency arises making it necessary for the agent to act.

B Principal has stated in writing what to be done in case of emergency. C Property is entrusted to the agent.
D It is not possible to communicate with the Principal.

3. Universal agents have authority for: [2 Marks] A General actions within certain limits.

B Unlimited authority to act for the Principal. C Only for certain types of acts.
D Absolutely nothing.

4. Which one of the following statements is NOT true? [2 Marks]
A Both express and implied authority arise by virtue of an agreement between Principal and Agent.
B Apparent authority arises where the agent makes a representation to a third party and has the authority to act for the Principal.

C When a Principal effectively ratifies a contract, the contract takes effect from the time when the agent made it, not from the time of the ratification.

D Apparent authority can arise on account of a representation made after the agent has made the contract with the third party.
5. A valid agency relationship can be created by: [2 Marks] A Ratification
B Reasonableness

C Irrationality

D Measure

6. Which one of the following is NOT a Private Company? [2 Marks] A A Company Limited by Shares.
B A Company Limited by Guarantee. C A Partnership.
D A Private Unlimited Company

7. Which one of the following is a requirement for any public company? [2 Marks] A Minimum of five directors required.
B A Company Secretary is not required. C No shares are required.
D The company name must end with pie or public limited company.

8. Which one of the following is a type of share? [2 Marks] A Ordinary Share.
B Less Ordinary Share.

C Special Share.

D Crystal Share.

9. Which one of the following statements does NOT describe a Fixed Charge? [2 Marks] A It is attached to an identified asset.
B The asset is intended to be retained permanently by the company. C It relates to shareholders only.
D The Company cannot sell the asset.

10. What Act is important with regards to the incorporation of a Public and Private Company? [2 Marks]

A Corporate Personality Act 2015 B Companies Act 2006
C Freedom of Incorporation Act 2002 D Partnership Act 1925
11. Which one of the following is NOT a type of director? [2 Marks] A De Jure Director.
B De Facto Director.

C Petronas Director.

D Shadow Director.

12. Which one of the following is NOT a duty of a director? [2 Marks] A Duty to act within powers.
B Duty to promote the success of the company. C Duty to avoid conflicts of interest.
D Duty to accept benefits from third parties
13. The rule in Foss v Harbottle (1843) states that: [2 Marks]

A Where a company suffers an injury, it is for the company, acting through the majority of members, to take the appropriate remedial action.

B Where a company suffers an injury, it is for the company, acting through the minority of members, to take the appropriate remedial action.

C The company should ignore the wrong.

D The company should seek legal advice as a matter of urgency.

14. Which type of share carries the right to demand payment of a dividend? [2 Marks] A Ordinary Share only.
B Preference Share only.

C Both Ordinary Share and Preference Share. D Neither Ordinary Share or Preference Share.
15. How often is a private company (Limited) required to hold an Annual General Meeting? [2 Marks] A Annually
B Bi-Annually.

C When the company wants to. D Never.
16. Copyright lasts: [2 Marks]

A Until the death of the creator of the work. B For different periods for different works. C For 70 years.
D For as long as the Copyright Agency permits.

17. Before going into a meeting to negotiate a business deal in respect of a commercial idea that you have developed, which of the following would you want to have? [2 Marks]

A A filed patent application.

B The copyright symbol on your work.

C A confidentiality agreement signed by the business party.

D A confidentiality agreement ready to be signed by the other party.

18. The Nike ‘Swoosh’ is an example of: [2 Marks] A Copyright
B Design Right

C Trademark

D Patent

19. Which of the following might have been patented [2 Marks]
A Einstein’s Theory of Relativity.
B Wild Rice.

C The MacDonald’s Arches. D The electric light bulb.
20. Apple invents an App that encourages children to eat more spinach. Apple can therefore? [2 Marks]
A Prevent Amazon from publishing a book called ‘Spinach is Good’. B License the app to the British Vegetarian Society.
C Patent spinach.

D Register the trademark ‘Spinach’.

21. How many offences did the Computer Misuse Act 1990 introduce? [2 Marks]

A 1.
B 4.
C 3.
D 6.
22. The Advance-fee fraud is also known as: [2 Marks] A 419 Fraud
B 420 Fraud.

C 455 Fraud.

D 422 Fraud.

23. Using someone else’s broadband connection without permission… . [2 Marks]

A Is illegal under the Computer Misuse Act 1990. B Is illegal under the Communications Act 2003. C Is illegal under both of the above.
D It is not illegal

24. In OPP v Bignell (1997) married police officers P and V Bignell used the National Police Computer in order to check on a third party and were found guilty under section 11 CMA 1990. What
did they claim in their defence? [2 Marks]
A Authorised access for unauthorised purpose B Unauthorised access for authorised purpose. C Authorised access for authorised purpose.
D Unauthorised access for unauthorised purpose.

25. Which of the following can be a DoS attack? [2 Marks]
A A virtual sit-in by a protest group.

B Sending more emails than a recipient server can handle using a program such as AVALANCHE.

C Both of the above.

D None of the above.

Question 1 – Agency Law (25 Marks)

Harry and Tamara are friends and live in Salford. Harry runs a garage specialising in restoration. However, he also resells vintage cars. Harry has decided to ask Tamara to buy a very specific
1968 SX Jaguar car for him, as he knows she is very knowledgeable about Jaguars., He gave her a budget of
£40,000 to £60,000 depending on the condition of the car.
This is not the first time he has asked Tamara to act on his behalf. In the past Tamara had already bought two cars for Harry from Karim, a dealer, she knows well each time Harry was very pleased.
The money was then paid by Harry directly to Karim. Tamara also received a substantial fee for her work.

On this occasion Tamara visited several dealers. She decided to buy a car from Karim priced at £70,000. She noticed that this car was very special. Not only was it in a perfect condition, but she
thought it was a rare variant of the SX 1968 Jaguar Car, the SXE, thus twice as expensive. She therefore decided to buy the car even with the premium. She drove the car back to Salford. When Harry
saw the car and was told the price, he got angry. Tamara had made a mistake. On further inspection the car, Tamara had just bought on Harry’s behalf was not the SXE variant. The car was an
alteration of the SX, thus decreasing its value.

When Karim contacted Harry to collect the payment, Harry refused saying that she was not authorised to go beyond £60,000. Furthermore, he refused to give Tamara her usual fee for her work.

Answer all questions and explain whether:
(a) Karim could ask Harry for the payment of the £70,000? (10 Marks)
(b) If in the meantime, Karim managed to sell the car to another buyer for £60,000. Could he sue either Harry or Tamara for the remainder? (15 Marks)

Question 2 – Company Law (25 Marks)

Danny and Meena are the sole directors and shareholders in a company, UK Trekking Ltd, which operates a business which specialises in taking walking groups on a wide variety of treks throughout the
UK. The company has assets in the form of specialised climbing/trekking equipment, a warehouse for storage, five 4×4 vehicles to get them to remote areas and the usual office equipment such as
computers and furniture. There is also a healthy order book as customers are having to book at least eight months ahead for their treks. Customers are invoiced after they have taken part in the
treks so there are plenty of book debts.

Danny and Meena have now decided to expand the business by offering guided trekking holidays in Europe as well as the UK. In order to achieve this, the company will need to raise additional finance
to invest in new premises and equipment. A friend of Danny’s, Craig, would be prepared to invest in the company in return for receiving a 30% shareholding in the company. Alternatively, the
company’s bank, Pound Bank pie, have indicated that they would be prepared to lend the money to the company, but they would require some security in return.

Advise Danny and Meena and answer all of the following questions:

(a) What are the advantages and disadvantages for the company of each of the proposed methods of finance, namely giving Craig a 30% shareholding in return for his capital investment and
borrowing the money from Pound Bank pie? (10 Marks)

(b) If they decide to issue shares to Craig, what procedures would the company have to follow?
(5 Marks)
(c) If they decide to borrow the money from Pound Bank pie, what type of security is the bank likely to require? (10 Marks)

Question 3 – Intellectual Property Law (25 Marks)

‘The planning of the introduction of a new product to the market place entails careful evaluation of the intellectual property rights potentially involved, their relevance to the product and its
means of production’

Discuss the different types of intellectual property rights which may affect any product that is introduced to the market.

Question 4 – Cyber Crime (25 Marks)

Fatima is the owner of a marketing agency and has installed a secure computer network for herself and her employees. She comes to you asking if the following are illegal:

(a) Ian, one of the accountants, is accessing the agency’s network in order to search for accounts of clients not assigned to him. (6 Marks)

(b) Elena, the former personal assistant that got fired, used Fatima’s computer in order to install a code that impairs the operation of the network just to get revenge. (6 Marks)
(c) Alberto, the exchange trainee that does not speak English very well, replied to an email he received at his work email account alerting him of a potential security breach and asking him to
reveal his network username and password. (6 Marks)
(d) Finally, the “Green Rebels”, a hacktivist collective, has “hacked” the agency’s network as a form of protest against Fatima’s decision to represent an oil company. Every time somebody
visits Fatima’s agency’s website the “Green Rebels” logo pops up along with a short paragraph on clean energy. (7 Marks)