QUESTION AND ANSWER
FOR
MARCH 2020
CHARTERED ACCOUNTANT ZAMBIA PROGRAMME
PAPERS
, CA ZAMBIA PROGRAMME EXAMINATIONS
___________________
KNOWLEDGE LEVEL
___________________
CA 1.4: COMMERCIAL AND CORPORATE LAW
___________________
FRIDAY 20 MARCH 2020
___________________
TOTAL MARKS – 100; TIME ALLOWED: THREE (3) HOURS
__________________
INSTRUCTIONS TO CANDIDATES
1. You have fifteen (15) minutes reading time. Use it to study the examination paper
carefully so that you understand what to do in each question.
2. This paper is divided into TWO sections:
Section A: Ten (10) compulsory multiple choice questions.
Section B: One (1) compulsory scenario question.
Plus Four (4) scenario questions. Attempt any Three (3) questions.
3. Enter your student number and your National Registration Card number on the front
of the answer booklet. Your name must NOT appear anywhere on your answer
booklet.
4. Do NOT write in pencil (except for graphs and diagrams).
5. Cell Phones are NOT allowed in the Examination Room.
6. The marks shown against the requirement(s) for each question should be taken as
an indication of the expected length and depth of the answer.
7. All workings must be done in the answer booklet.
8. Present legible and tidy work.
9. Graph paper (if required) is provided at the end of the answer booklet.
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO BY THE
INVIGILATOR.
2
,Section A – (COMPULSORY)
Attempt all Ten (10) multiple choice questions.
QUESTION ONE
Each of the following questions has only one correct answer. Write the letter of the correct
answer you have chosen in your answer booklet. Marks allocated are indicated against each
question.
1.1 Which one of the following cases stated that International law can only be applicable
in Zambia if it is domesticated through legislative enactment”?
A. Zambia Sugar Plc v Fellow Nanzaluka (2001)
B. Continental Restaurant And Casino Limited V Arida Mercy Chulu (2000)
C. Fisher v Bell (1961)
D. Sata v Zambia Bottlers Limited (2003) Z.R. 1.
(2 marks)
1.2 Which branch of government is involved in enforcing the law?
A. The Legislature
B. The Executive
C. The Court System
D. The Judiciary
(2 marks)
1.3 Which one of the following best describes a valid example of an offer?
A. A display of goods for sale
B. An internet shop that advertises products for sale
C. A newspaper advert that includes a specific statement, made to the world at
large, offering a reward for the return of a particular item
D. An invitation for potential suppliers to tender for the provision of services .
(2 marks)
1.4 One of the following is not a rule of consideration. Identify it.
A. Consideration must pass from the promisee
B. Consideration must be adequate
C. Past consideration is bad consideration
D. Executory consideration is money given in a contract
(2 marks)
3
, 1.5 Which one of the following is true about an exclusion clause?
A. Exclusion clauses can be incorporated into a contract after the contract is formed
B. Exclusion clauses are interpreted by the parties
C. Exclusion clauses are valid if agreed before entering into a contract
D. None of the above
(2 marks)
1.6 Identify one tort which falls under the tort of trespass to parson.
A. Nuisance
B. False imprisonment
C. Defamation
D. Contributory Negligence
(2 marks)
1.7 Agency of necessity involves…
A. No instruction from principal, ratification within a reasonable time, best interest
of principal.
B. Best interest of the principal, emergency existed and unable to get instructions
from principal
C. Unable to get instruction, ratification within a reasonable time, best interest of
the principal
D. No instruction from principal, principal has capacity and best interest of principal
(2 marks)
1.8 Partnership deed has the following except:
A. Names of the business
B. Arbitration Clause
C. Death of Partners
D. Articles of Association
(2 marks)
1.9 Which one of the following is not a type of share capital?
A. Authorised share capital
4
FOR
MARCH 2020
CHARTERED ACCOUNTANT ZAMBIA PROGRAMME
PAPERS
, CA ZAMBIA PROGRAMME EXAMINATIONS
___________________
KNOWLEDGE LEVEL
___________________
CA 1.4: COMMERCIAL AND CORPORATE LAW
___________________
FRIDAY 20 MARCH 2020
___________________
TOTAL MARKS – 100; TIME ALLOWED: THREE (3) HOURS
__________________
INSTRUCTIONS TO CANDIDATES
1. You have fifteen (15) minutes reading time. Use it to study the examination paper
carefully so that you understand what to do in each question.
2. This paper is divided into TWO sections:
Section A: Ten (10) compulsory multiple choice questions.
Section B: One (1) compulsory scenario question.
Plus Four (4) scenario questions. Attempt any Three (3) questions.
3. Enter your student number and your National Registration Card number on the front
of the answer booklet. Your name must NOT appear anywhere on your answer
booklet.
4. Do NOT write in pencil (except for graphs and diagrams).
5. Cell Phones are NOT allowed in the Examination Room.
6. The marks shown against the requirement(s) for each question should be taken as
an indication of the expected length and depth of the answer.
7. All workings must be done in the answer booklet.
8. Present legible and tidy work.
9. Graph paper (if required) is provided at the end of the answer booklet.
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO BY THE
INVIGILATOR.
2
,Section A – (COMPULSORY)
Attempt all Ten (10) multiple choice questions.
QUESTION ONE
Each of the following questions has only one correct answer. Write the letter of the correct
answer you have chosen in your answer booklet. Marks allocated are indicated against each
question.
1.1 Which one of the following cases stated that International law can only be applicable
in Zambia if it is domesticated through legislative enactment”?
A. Zambia Sugar Plc v Fellow Nanzaluka (2001)
B. Continental Restaurant And Casino Limited V Arida Mercy Chulu (2000)
C. Fisher v Bell (1961)
D. Sata v Zambia Bottlers Limited (2003) Z.R. 1.
(2 marks)
1.2 Which branch of government is involved in enforcing the law?
A. The Legislature
B. The Executive
C. The Court System
D. The Judiciary
(2 marks)
1.3 Which one of the following best describes a valid example of an offer?
A. A display of goods for sale
B. An internet shop that advertises products for sale
C. A newspaper advert that includes a specific statement, made to the world at
large, offering a reward for the return of a particular item
D. An invitation for potential suppliers to tender for the provision of services .
(2 marks)
1.4 One of the following is not a rule of consideration. Identify it.
A. Consideration must pass from the promisee
B. Consideration must be adequate
C. Past consideration is bad consideration
D. Executory consideration is money given in a contract
(2 marks)
3
, 1.5 Which one of the following is true about an exclusion clause?
A. Exclusion clauses can be incorporated into a contract after the contract is formed
B. Exclusion clauses are interpreted by the parties
C. Exclusion clauses are valid if agreed before entering into a contract
D. None of the above
(2 marks)
1.6 Identify one tort which falls under the tort of trespass to parson.
A. Nuisance
B. False imprisonment
C. Defamation
D. Contributory Negligence
(2 marks)
1.7 Agency of necessity involves…
A. No instruction from principal, ratification within a reasonable time, best interest
of principal.
B. Best interest of the principal, emergency existed and unable to get instructions
from principal
C. Unable to get instruction, ratification within a reasonable time, best interest of
the principal
D. No instruction from principal, principal has capacity and best interest of principal
(2 marks)
1.8 Partnership deed has the following except:
A. Names of the business
B. Arbitration Clause
C. Death of Partners
D. Articles of Association
(2 marks)
1.9 Which one of the following is not a type of share capital?
A. Authorised share capital
4
