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Cima C05 Exam Question No 58

Question No 58:

Which one of the following is an employer today always bound to do?

A. Give a testimonial to an employee who asks for one when he or she wishes to leave.
B. Insure himself against possible occupational safety liabilities to employees.
C. Pay wages to an employee during absence for illness.
D. Prohibit smoking indoors.

Answer: B

Cima C05 Exam Question No 57

Question No 57:

Which of the following statement is INCORRECT?

A. There is a general duty on every employer under the Health and Safety at Work Act 1974 to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees.
B. The Employers Liability Commission is responsible for the enforcement of the Health and Safety at Work Act and related legislation
C. In terms of the Management of Health and Safety at Work Regulations, employers are required to carry out a hazard analysis of their business operation.
D. Employers should check that potential employees are legally entitled to work and remain in the UK

Answer: B

Cima C05 Exam Question No 56

Question No 56:

An employer must provide an employee with a written statement of particulars of the employment:

A. Within one month of the employment commencing.
B. As soon after the commencement of employment as possible.
C. Within two months of the employment commencing.
D. Within a reasonable time of the employment commencing.

Answer: C

Cima C05 Exam Question No 55

Question No 55:

In relation to a claim for wrongful dismissal, which of the following statements is CORRECT?

i. Only employees below the normal retiring age may claim.
ii. There is frequently no limit on the amount of compensation that a tribunal can award.
iii. Claims must be made within 3 months of the dismissal.

A. i only.
B. ii only.
C. iii only.
D. None of them

Answer: D

Cima C05 Exam Question No 54

Question No 54:

Which of the following statements suggests that John is an independent contractor in relation to the work he carries out for Zed Ltd?
i. He is required to provide his own tools.
ii. He is required to carry out his work personally and is not free to send a substitute.
iii. He is paid in full without any deduction of income tax.

A. i and ii only.
B. ii and iii only.
C. i and iii only.
D. i, (ii) and iii.

Answer: C

Cima C05 Exam Question No 53

Question No 53:

Which of the following statements is/are correct?

i. An employer is vicariously liable for the torts of employees committed in the course of their employment.
ii. An employer is vicariously liable for the torts of independent contractors, if they were committed whilst carrying out work for the employer.

A. i only.
B. ii only.
C. Both i and ii.
D. Neither i nor ii.

Answer: 

Cima C05 Exam Question No 52

Question No 52:

Which ONE of the following is not an equitable remedy?

A. Damages
B. Specific performance
C. Rescission
D. Injunction

Answer: A

Cima C05 Exam Question No 51

Question No 51:

Tee Ltd has contracted to use Vee Ltd’s “Grand Hotel” for a business conference. Which of the following would be regarded as a valid reason for Vee Ltd for the unavailability of the hotel on the agreed date under the law of frustration?

• i. The hotel was closed due to flood damage.
• ii. The hotel was double booked.
• iii. The hotel manager had arranged to have the hotel redecorated. The decorators had failed to complete the work by the agreed date.

A. i only.
B. iii only.
C. ii and iii only.
D. i, ii and iii.

Answer: A

Cima C05 Exam Question No 50

Question No 50:

 In the event of a breach of contract, what is the purpose of damages?

i. To punish the contract breaker.
ii. To compensate the innocent party.
iii. To put the innocent party in the same position as if the contract had been carried out correctly.

A. i only.
B. ii and iii only.
C. iii only.
D. i, ii and iii.

Answer: B

Cima C05 Exam Question No 49

Question No 49:

Which ONE of the following does NOT discharge a contract?

A. Precise performance of all the contractual obligations.
B. A subsequent event causing the contract to be impossible to perform.
C. Breach of contractual term which is classified as a warranty
D. The agreement of the parties, contained in a deed, to the effect that the contract should be discharged.

Answer: C

Cima C05 Exam Question No 48

Question No 48:

Which ONE of the following remedies is NOT available for a breach of a contract to provide personal services?

A. Damages.
B. A decree of specific performance.
C. An injunction.
D. An action for the price.

Answer: B

Cima C05 Exam Question No 47

Question No 47:

Exe Ltd was under contract to deliver goods by road to London for Wye Ltd for £2,000. After part of the journey was completed, the delivery vehicle broke down and Wye Ltd was forced to arrange for Zed Ltd to complete the delivery. If there are no provisions in the contract to deal with this situation, which of the following is correct?

A. Exe Ltd is entitled to part of the delivery fee.
B. Exe Ltd is entitled to nothing.
C. Exe Ltd is entitled to a reasonable sum for the work done.
D. Exe Ltd is entitled to the full £2,000.

Answer: B

Cima C05 Exam Question No 46

Question No 46:

Which ONE of the following is correct?

A. A contract is frustrated when something happens after it has been entered into, which is not fault of either party and which renders the contract more difficult to perform.
B. A contract is frustrated when a party expressly agrees to manufacture and supply goods and then discovers that they will be far more expensive to produce than he thought at the time of the contract.
C. A contract is frustrated when something happens after it has been entered into, which is not fault of either party and which renders the contract impossible to perform.
D. A contract is frustrated if it is impossible to perform at the time that it is made through no fault of either party.

Answer: C

Cima C05 Exam Question No 45

Question No 45:

The vast majority of contracts are "simple". What is the meaning of the word "simple" in this context?

A. The terms of the contract are set out in writing.
B. The contract does not need to be in any particular form to be binding.
C. The contract contains fewer than ten provisions.
D. The contract is not supported by consideration.

Answer: B

Cima C05 Exam Question No 44

Question No 44:

Jack was induced to enter into a contract with Karl by Karl’s negligent misrepresentation.
Which of the following is CORRECT?

i. Jack has a remedy against Karl in the tort of negligence.
ii. Jack has a remedy against Karl under the Misrepresentation Act 1967.
iii. Jack has a remedy against Karl in the tort of deceit.

A. i only.
B. i and ii only.
C. ii and iii only.
D. i, ii and iii.

Answer: B

Cima C05 Exam Question No 43

Question No 43:

 Which of the following examples of performance amounts to good consideration?

• i. The performance of an existing duty under the general law.
• ii. The performance of an existing contract in return for a promise by a third party.
• iii. The performance of an act, followed by a promise to pay for that act.

A. i only.
B. ii only.
C. i and ii only.
D. iii only.

Answer: B

Cima C05 Exam Question No 42

Question No 42:

Which ONE of the following statements is incorrect?

A. Payment by the debtor of less than the full amount of the debt will satisfy the whole debt at common law, if paid early at the request of the debtor.
B. Payment by a third party of less than the full amount of the debt will discharge the whole debt at common law.
C. Payment of less than the full amount of the debt will discharge the whole debt at common law, if agreed to by the creditor.
D. Payment of less than the full amount of the debt will discharge the whole debt at common law, if extra consideration is provided by the debtor.

Answer: C

Cima C05 Exam Question No 41

Question No 41:

Which of the following statements is correct?

i. If an agreement is stated to be “binding in honour only”, the parties have decided that the agreement should not have contractual force.
ii. If an agreement is not in writing, the parties are presumed to have intended that it should not be legally enforceable.

A. i only.
B. ii only.
C. Neither i nor ii.
D. Both i and ii.

Answer: A

Cima C05 Exam Question No 40

Question No 40:

Which of the following is INCORRECT?

i. Legal title cannot pass on a contract induced by misrepresentation.
ii. Misrepresentation renders a contract voidable.
iii. A victim of negligent misrepresentation may seek rescission and damages.

A. i only.
B. ii only.
C. i and iii only.
D. ii and iii only.

Answer: A

Cima C05 Exam Question No 39

Question No 39:

Tee Ltd placed some computers in its shop window with a notice which read:
“Special offer. Internet-ready computers for sale at £400.” Which of the following is correct?

Which of the following is correct?

i. The notice amounts to an invitation to treat.
ii. When Anne called in to the shop and offered £350 for one of the computers, she had made a counter offer.
iii. Tee Ltd is obliged to sell a computer to anyone who can pay the price.

A. i and ii only.
B. i only.
C. i, ii and iii.
D. ii only.

Answer: B

Cima C05 Exam Question No 38

Question No 38:

Which of the following is correct?

i. A contract is entered into voluntarily whereas criminal offences are imposed by the state.
ii. A tort is entered into voluntarily whereas criminal offences are imposed by the state.
iii. A contract is entered into voluntarily whereas a tort is imposed by the state.

A. i only.
B. ii only.
C. i and iii only.
D. ii and iii only.

Answer: C

Cima C05 Exam Question No 37

Question No 37:

Which one of the following areas of law is not codified in France?

A. Contract Law
B. Employment Law
C. Company Law
D. Tort

Answer: D

Cima C05 Exam Question No 36

Question No 36:

Which of the following is an influence that has contributed to the development of the legal system in Denmark?

A. Roman Law
B. English constitutional theory
C. German jurisprudence
D. The Code Civile from France

Answer: C