Mirchawala’s Hub of Accountancy:
F4:MOCK Exam 1:
Question#1:
Which of the following statements relating to the Crown Court is NOT true?
A. It has no civil jurisdiction
B. Appeals from the Crown Court go directly to the Supreme Court
C. It deals with indictable offences with a jury
Question#2:
Which of the following statements about a pre-incorporation contract is true?
A. Following incorporation, the company could enter into a new contract on identical terms via
novation
B. The company’s promoter is always immune from liability
C. The company may ratify the contract once its incorporation is complete
Question#3:
Which TWO of the following statements about criminal law are true?
A. It is a form of private law
B. The state normally initiates the action
C. The standard of proof is on the balance of probabilities
D. The burden of proof rests with the prosecution
Question#4:
Which of the following statements about revocation of an offer is true?
A. The postal rule applies to revocation of an offer
B. It can be revoked at any time before acceptance
C. Revocation must be communicated personally by the offeror
Question#5:
Pigeon Ltd is a UK registered company and has a wholly owned subsidiary, Duck Ltd, in the USA, which
specialises in disposal of nuclear waste. Duck Ltd is being sued by residents in the USA, for personal
injuries following exposure to nuclear waste from its disposal plants. As Pigeon Ltd is the holding
company and is highly profitable, the residents feel that it is Pigeon Ltd that is liable for the personal
injuries suffered.
Is Pigeon Ltd liable to pay damages for personal injuries on behalf of Duck Ltd, and for what reason?
A. Yes, because it is head of the group and English law treats groups of companies as single economic
units
B. No, because Duck Ltd is a separate legal entity with all the rights and liabilities which would normally
be attached to separate legal entity
C. Yes, because Duck Ltd is acting as an agent of Pigeon Ltd
D. No, because Pigeon Ltd has no direct presence in the USA
Question#6:
On which of the following dates does a partnership begin?
A. The date on which the partnership starts trading with the public
B. The date on which the partners agree to go into business together
C. The start date of the first accounting period
From the desk of Sir Owais Mirchawala: Page 1
, Mirchawala’s Hub of Accountancy:
Question#7:
Which TWO of the following statements about a company administration order are true
A. Once an administration order is granted, all of the company’s employees are automatically
dismissed
B. The administrator may state that the company cannot be rescued
C. Fixed charge holders are still able to repossess charged assets during administration
D. The administration will end after 12 months or when it has been successful
Question#8:
For a straightforward case involving a claim for £18,000, which of the following tracks would be
allocated under the Civil Procedure Rules?
A. Fast track
B. Multi-track
C. Small claims track
Question#9:
Which TWO of the following statements apply to contracts governed by the Unfair Contract Terms Act
1977?
A. The reasonableness test takes into consideration the relative bargaining strength of the parties to
the contract
B. In a non-consumer contract, any clause excluding liability for breach relating to the quality of the
goods is subject to the reasonableness test
C. Any clause excluding liability for personal injury due to one party’s negligence will only be upheld if
it is reasonable
D. The Act applies to exclusion clauses contained in contracts relating to the transfer of an interest in
land
Question#10:
Which of the following statements regarding contractual terms is correct?
A. A term can be implied into a contract by custom
B. An express term always overrides an implied term
C. An express term in a contract must always be in writing
Question#11:
In relation to the registration of a company, which of the following names will NEVER be permitted?
A. One which implies a connection with a professional body
B. One which implies a connection with the government
C. One which is the same as the name of a company already on the register
Question#12:
Which of the following statements about limited liability partnerships is true?
A. A written partnership agreement must be registered with the Registrar of Companies
B. A limited liability partnership is a corporate body which has a separate legal personality from its
members
C. At least one general partner must be appointed with unlimited liability for the debts of the firm
Question#13:
Which of the following is an offer?
From the desk of Sir Owais Mirchawala: Page 2
F4:MOCK Exam 1:
Question#1:
Which of the following statements relating to the Crown Court is NOT true?
A. It has no civil jurisdiction
B. Appeals from the Crown Court go directly to the Supreme Court
C. It deals with indictable offences with a jury
Question#2:
Which of the following statements about a pre-incorporation contract is true?
A. Following incorporation, the company could enter into a new contract on identical terms via
novation
B. The company’s promoter is always immune from liability
C. The company may ratify the contract once its incorporation is complete
Question#3:
Which TWO of the following statements about criminal law are true?
A. It is a form of private law
B. The state normally initiates the action
C. The standard of proof is on the balance of probabilities
D. The burden of proof rests with the prosecution
Question#4:
Which of the following statements about revocation of an offer is true?
A. The postal rule applies to revocation of an offer
B. It can be revoked at any time before acceptance
C. Revocation must be communicated personally by the offeror
Question#5:
Pigeon Ltd is a UK registered company and has a wholly owned subsidiary, Duck Ltd, in the USA, which
specialises in disposal of nuclear waste. Duck Ltd is being sued by residents in the USA, for personal
injuries following exposure to nuclear waste from its disposal plants. As Pigeon Ltd is the holding
company and is highly profitable, the residents feel that it is Pigeon Ltd that is liable for the personal
injuries suffered.
Is Pigeon Ltd liable to pay damages for personal injuries on behalf of Duck Ltd, and for what reason?
A. Yes, because it is head of the group and English law treats groups of companies as single economic
units
B. No, because Duck Ltd is a separate legal entity with all the rights and liabilities which would normally
be attached to separate legal entity
C. Yes, because Duck Ltd is acting as an agent of Pigeon Ltd
D. No, because Pigeon Ltd has no direct presence in the USA
Question#6:
On which of the following dates does a partnership begin?
A. The date on which the partnership starts trading with the public
B. The date on which the partners agree to go into business together
C. The start date of the first accounting period
From the desk of Sir Owais Mirchawala: Page 1
, Mirchawala’s Hub of Accountancy:
Question#7:
Which TWO of the following statements about a company administration order are true
A. Once an administration order is granted, all of the company’s employees are automatically
dismissed
B. The administrator may state that the company cannot be rescued
C. Fixed charge holders are still able to repossess charged assets during administration
D. The administration will end after 12 months or when it has been successful
Question#8:
For a straightforward case involving a claim for £18,000, which of the following tracks would be
allocated under the Civil Procedure Rules?
A. Fast track
B. Multi-track
C. Small claims track
Question#9:
Which TWO of the following statements apply to contracts governed by the Unfair Contract Terms Act
1977?
A. The reasonableness test takes into consideration the relative bargaining strength of the parties to
the contract
B. In a non-consumer contract, any clause excluding liability for breach relating to the quality of the
goods is subject to the reasonableness test
C. Any clause excluding liability for personal injury due to one party’s negligence will only be upheld if
it is reasonable
D. The Act applies to exclusion clauses contained in contracts relating to the transfer of an interest in
land
Question#10:
Which of the following statements regarding contractual terms is correct?
A. A term can be implied into a contract by custom
B. An express term always overrides an implied term
C. An express term in a contract must always be in writing
Question#11:
In relation to the registration of a company, which of the following names will NEVER be permitted?
A. One which implies a connection with a professional body
B. One which implies a connection with the government
C. One which is the same as the name of a company already on the register
Question#12:
Which of the following statements about limited liability partnerships is true?
A. A written partnership agreement must be registered with the Registrar of Companies
B. A limited liability partnership is a corporate body which has a separate legal personality from its
members
C. At least one general partner must be appointed with unlimited liability for the debts of the firm
Question#13:
Which of the following is an offer?
From the desk of Sir Owais Mirchawala: Page 2
