Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.

　　1 Which of the following involves an offer which may only be accepted by performing an action?

　　A、A collateral contract

　　B、 A unilateral contract

　　C、A bilateral contract

　　2 An agency relationship which is made retrospectively is referred to by which of the following terms?

　　A、 Agency by estoppel

　　B、 Agency by ratification

　　C、Agency by necessity

　　3 In contract law, the ‘market price rule’ arises in relation to which of the following?

　　A、 Offer

　　B 、Consideration

　　C、 Remoteness

　　D、 Mitigation

　　4 In relation to a debenture, which of the following is NOT true?

　　A 、It may be issued at a discount

　　B、 Interest on it may be paid from capital

　　C、 It is paid after preference shares

　　D、It is freely transferable

　　5 Tan writes to Yun stating that he will sell his car to him for ￡10,000. At the same time, Yun writes to Tan stating that he will buy his car for ￡10,000. Which of the following statements applies to this situation?

　　A、There is a binding agreement due to the postal rule

　　B、There is a collateral contract

　　C、 There is neither an agreement nor a contract

　　6 Which of the following statements about contracts of employment is true?

　　A、They can be made either orally or in writing

　　B、 They must be made in writing

　　C、They must be evidenced in writing

　　7 Where directors make a false statement of solvency prior to a members’ voluntary liquidation, which of the following have they committed under the relevant legislation?

　　A、 A breach of criminal law with criminal penalties

　　B、A breach of civil law with criminal penalties

　　C、A breach of civil law with civil liability

　　D、 A breach of both civil and criminal law with liabilities under both

　　8 Which of the following is the consequence when a patient signs a medical consent form before an operation?

　　A、 The patient gives up any right of action for any injury suffered

　　B 、Any action for any injury suffered during the operation is limited to negligence

　　C 、The level of any potential payment for any injury suffered is reduced

　　9 Where a contract states the sum to be paid in the event of a breach of contract, the stated sum is known as which of the following?

　　A、Unliquidated damages

　　B、 Liquidated damages

　　C、Specific damages

　　D、 Nominal damages

　　10 Which of the following applies to the concept of enlightened shareholder value?

　　A、 It is the price shares can be expected to raise if they were to be sold

　　B、It is the yardstick for assessing the performance of directors’ duties

　　C、 It is the standard of behaviour expected of shareholders in general meetings

　　Answer:

　　1 、B

　　2 、B

　　3、 D

　　4 、C

　　5 、C

　　6、 A

　　7、 A

　　8 、B

　　9、 B

　　10 、B