CPC Transport Managers Level 3 Exam
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Which of the following statements relating to the law of contract are correct?
1. Exemption clauses can be inserted up to seven days after the contract is made
2. Once made, an offer cannot be withdrawn
3. Acceptance of an offer must be communicated
4. All contracts must be in writing
5. Both parties to a contract must offer some consideration
A. 1 and 4 only
B. 3 and 5 only
C. 1, 2 and 5 only
D. 2, 3 and 4 only - CORRECT ANSWER B. 3 and 5 only
Mr and Mrs Jones are the only shareholders in Acme Transport Ltd which has a contract to provide
transport between Birmingham and London. Mr and Mrs Jones sell their shareholding to Mr and Mrs
Green. Insofar as the contract is concerned, Acme Transport Ltd
A. must continue to operate the contract
B. may only continue with the contract if the customer gives written agreement
C. cannot continue to operate the contract
D. may decide whether or not to operate the contract - CORRECT ANSWER A. must continue
to operate the contract
Which of the following would be an advantage to a road haulier if included in her conditions of
carriage?
1. A clause preventing trans-shipment
,2. A clause allowing sub contracting
3. A clause making the haulier liable for damage caused by the consignor
4. A clause limiting the haulier's liability for loss or damage to the goods
A. 4 only
B. 1 and 2 only
C. 2 and 4 only
D. 1, 2, 3 and 4 - CORRECT ANSWER C. 2 and 4 only
A UK operator is engaged on a hire and reward journey from the UK to Germany, carrying a full load
(25 tonnes) of electrical products with a total value of £200,000. On unloading at the delivery point,
the consignee discovers damage to half of the consignment and endorses the load documentation
accordingly. Under the CMR Convention, what is the maximum amount which the haulier might have
to pay in compensation for the damage? Assume the value of one SDR is £1.00.
A. £208,250
B. £200,000
C. £104,125
D. £100,000 - CORRECT ANSWER D. £100,00
The rights of various classes of shareholders in a limited company must be contained in its
A. Memorandum of Association
B. Certificate of Incorporation
C. Articles of Association
D. Certificate of Trading - CORRECT ANSWER C. Articles of Association
Three individuals wish to set up in business together. They want minimal formation formalities and
are each prepared to accept all of the responsibilities and liabilities that the business might incur.
Which of these business types is likely to be the most appropriate?
A. Sole trader
B. Partnership
, C. Private limited company
D. Public limited company - CORRECT ANSWER B. Partnership
Under company law, a private limited company cannot start a business before which of the following
have been achieved?
1. The Registrar of Companies has issued its Certificate of Incorporation
2. Public Liability Insurance cover has been taken out
3. Planning permission has been obtained from the Local Authority
4. A director has been appointed
A. 1, 2 and 4 only
B. 1, 3 and 4 only
C. 1 and 4 only
D. 2 and 3 only - CORRECT ANSWER C. 1 and 4 only
Every limited company must show on its letterhead
1. VAT registration number
2. UK country of registration
3. Company registration number
4. Address of the registered office
5. List of directors
A. 1 and 2 only
B. 2, 3 and 4 only
C. 1, 2, 3, 4 and 5
D. 3, 4 and 5 only - CORRECT ANSWER B. 2, 3 and 4 only
Employment tribunals will hear complaints arising from which of the following employment-related
issues?
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Which of the following statements relating to the law of contract are correct?
1. Exemption clauses can be inserted up to seven days after the contract is made
2. Once made, an offer cannot be withdrawn
3. Acceptance of an offer must be communicated
4. All contracts must be in writing
5. Both parties to a contract must offer some consideration
A. 1 and 4 only
B. 3 and 5 only
C. 1, 2 and 5 only
D. 2, 3 and 4 only - CORRECT ANSWER B. 3 and 5 only
Mr and Mrs Jones are the only shareholders in Acme Transport Ltd which has a contract to provide
transport between Birmingham and London. Mr and Mrs Jones sell their shareholding to Mr and Mrs
Green. Insofar as the contract is concerned, Acme Transport Ltd
A. must continue to operate the contract
B. may only continue with the contract if the customer gives written agreement
C. cannot continue to operate the contract
D. may decide whether or not to operate the contract - CORRECT ANSWER A. must continue
to operate the contract
Which of the following would be an advantage to a road haulier if included in her conditions of
carriage?
1. A clause preventing trans-shipment
,2. A clause allowing sub contracting
3. A clause making the haulier liable for damage caused by the consignor
4. A clause limiting the haulier's liability for loss or damage to the goods
A. 4 only
B. 1 and 2 only
C. 2 and 4 only
D. 1, 2, 3 and 4 - CORRECT ANSWER C. 2 and 4 only
A UK operator is engaged on a hire and reward journey from the UK to Germany, carrying a full load
(25 tonnes) of electrical products with a total value of £200,000. On unloading at the delivery point,
the consignee discovers damage to half of the consignment and endorses the load documentation
accordingly. Under the CMR Convention, what is the maximum amount which the haulier might have
to pay in compensation for the damage? Assume the value of one SDR is £1.00.
A. £208,250
B. £200,000
C. £104,125
D. £100,000 - CORRECT ANSWER D. £100,00
The rights of various classes of shareholders in a limited company must be contained in its
A. Memorandum of Association
B. Certificate of Incorporation
C. Articles of Association
D. Certificate of Trading - CORRECT ANSWER C. Articles of Association
Three individuals wish to set up in business together. They want minimal formation formalities and
are each prepared to accept all of the responsibilities and liabilities that the business might incur.
Which of these business types is likely to be the most appropriate?
A. Sole trader
B. Partnership
, C. Private limited company
D. Public limited company - CORRECT ANSWER B. Partnership
Under company law, a private limited company cannot start a business before which of the following
have been achieved?
1. The Registrar of Companies has issued its Certificate of Incorporation
2. Public Liability Insurance cover has been taken out
3. Planning permission has been obtained from the Local Authority
4. A director has been appointed
A. 1, 2 and 4 only
B. 1, 3 and 4 only
C. 1 and 4 only
D. 2 and 3 only - CORRECT ANSWER C. 1 and 4 only
Every limited company must show on its letterhead
1. VAT registration number
2. UK country of registration
3. Company registration number
4. Address of the registered office
5. List of directors
A. 1 and 2 only
B. 2, 3 and 4 only
C. 1, 2, 3, 4 and 5
D. 3, 4 and 5 only - CORRECT ANSWER B. 2, 3 and 4 only
Employment tribunals will hear complaints arising from which of the following employment-related
issues?
