Practice Exam 2017, questions and answers PDF

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On admission to the examination room, you should acquaint yourself with the instructions below. You must listen carefully to all instructions given by the invigilators. You may read the question paper, but must not write anything until the invigilator informs you that you may start the examination. You will be given five minutes at the end of the examination to complete the front of any answer books used. DO NOT REMOVE THIS QUESTION PAPER FROM THE EXAM ROOM. Attach it to your Answer Book and Sheet at the end of the exam.

REVISION 2017

LW1A05 2016/17 A 001 LW1EL 2017 A 001

Multiple Choice Answer Sheet 1 Answer Book 1 Treasury Tag Dictionaries permitted UNIVERSITY OF READING PRACTICE PAPER GENERAL INTRODUCTION TO LAW (LW1A05) or ESSENTIALS OF LAW (LW1EL) PLEASE NOTE: IN THE REAL EXAM THERE WILL ONLY BE 20 MCQs AND YOU WILL ONLY BE REQUIRED TO ANSWER FIVE ESSAY QUESTIONS. ADDITIONTAL QUESTIONS HAVE BEEN ADDED TO THIS PRACTICE PAPER.

SECTION A: Answer ALL the multiple choice questions in Section A on the ANSWER SHEET provided, by crossing through one of (a) or (b) or (c) or (d). [50% of mark] SECTION B: Answer FIVE questions. Only short answers (of no more than a few brief paragraphs) are required. [50% of mark]

Page 2 SECTION A 1.1. What is the name used for a person who commences a civil action? a) Claimant b) Defendant c) Respondent d) Applicant

1.2. Which of the following statements is correct? a) All criminal trials are held before a judge and jury. b) All criminal trials are heard in the Magistrates' Court. c) In a criminal trial a defendant must prove he is innocent. d) In a criminal trial the prosecution must prove the defendant is guilty beyond reasonable doubt.

1.3. What does the doctrine of precedent mean? a) Judges are bound by statute. b) Judges must decide the case on the facts. c) Judges must apply the law set out in relevant decision of previous superior courts and sometimes courts of the same standing. d) Judges may apply the law set out in relevant decision of previous superior courts and sometimes courts of the same standing.

LW1A05 / LW1EL PRACTICE EXAM 2017

Page 3 1.4. In which court may a trial for an indictable offence be heard? a) The Magistrates' Court. b) The High Court. c) The Crown Court. d) Either the Crown Court or the Magistrates' Court. 1.5. Which of the following statements in incorrect? a) Arbitration is the procedure by which parties refer their dispute to an Arbitrator. b) It is common practice for commercial contracts to contain express clauses referring disputes to arbitration. c) Any award given in arbitration is enforceable through the court system. d) The parties must have agreed to use the arbitration procedure before a contract is signed. 1.6. Which of the following relationships would not typically give rise to a duty of care? a) b) c) d)

Manufacturer & consumer Driver & bystander Lawyer & client Employer & employee

1.7. In which case did Lord Bridge propose a 3 stage test for determining duty of care? a) b) c) d)

Donoghue v Stevenson Hill v Chief Constable of West Yorkshire Home Office v Dorset Yacht Caparo v Dickman

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1.8. Which of the following factors would not be taken into account when establishing the standard of care? a) b) c) d)

Age Mental characteristics Special skills Physical disabilities

1.9. Which case sets out the relevant factors to take account of when considering breach of duty? a) b) c) d)

Miller v Jackson Bolton v Stone Bolam v Friern HMC Wilsher v Essex AHA

1.10. In which case did Lord Atkin set out the “Neighbour Principle”? a) b) c) d)

Caparo v Dickman Bolam v Friern HMC Donoghue v Stevenson Nettleship v Weston

1.11. Under the principle res ipsa loquitur, what does the Defendant have to prove? a) b) c) d)

That the Claimant was negligent That there was no accident That he didn’t breach the duty of care That the Claimant contributed to the accident

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Page 5 1.12. Which of the following situations would suggest someone was an employee rather than an independent contractor? a) b) c) d)

The worker cannot substitute someone else to do her work The worker provides her own equipment The worker works from home The worker chooses how to perform her job

1.13. What is the test for factual causation sometimes called? a) b) c) d)

Res ipsa loquitur Volenti non fit injuria Novus actus interveniens The “but for” test

1.14. Which of the following characteristics does not come from The Wagon Mound case, when considering legal causation? a) b) c) d)

Kind or type of damage Manner of infliction of damage Extent of damage Egg-shell skull rule

1.15. Which of the following is a partial defence to negligence? a) b) c) d)

Limitation Act 1980 Contributory Negligence Consent (Volenti Non Fit Injuria) Illegality (Ex Turpi Causa Non Oritur Actio)

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Page 6 1.16. Which of the following relationships is not an example of the typical Hedley Byrne “special relationship”? a) b) c) d)

Customer & shopkeeper Lawyer & client Financial adviser & client Valuer & homeowner

1.17. Which of the following class of Claimants are unlikely to be successful in a claim for psychiatric injury? a) b) c) d)

Primary victims Parent who is at the scene of an accident involving their child Bystander with no connection to a primary victim Rescuer who puts themselves at risk in helping at an accident

1-18 Which of the following losses comes under the heading of pure economic loss following a road traffic accident? a) b) c) d)

Damage to C’s car Damages for personal injuries suffered C’s loss of earnings for a week after the accident Loss of profit on work that C would have done later that week if he hadn’t been in an accident

1-19 In order to establish a duty of care in negligence for financial losses caused by D’s careless statement (negligent misstatement) the test is: a) b) c) d)

Caparo v Dickman 3 stage test Caparo 3 stage test + Hedley Byrne Special Relationship Donoghue v Stevenson Neighbour Principle Hedley Byrne v Heller Special Relationship test

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Page 7 1-20. A Claimant who is stood on the opposite side of the road and watches her boyfriend’s car get hit by the Defendant’s car, and as a result suffers a psychiatric injury, is classified as a: a) Primary victim b) Secondary victim c) Bystander 1-21. The court stated that the advertisement in Carlill v Carbolic Smoke Ball Co. was which of the following? a) An invitation to treat. b) An offer. c) A statement of intention. d) Of no legal effect whatsoever. 1-22. In Pharmaceutical Society of G.B. v Boots Cash Chemist Ltd. It was decided that: a) Past consideration is no consideration. b) Goods on display in a self service store are an invitation to treat. c) The postal rules are effective for UK letters. d) Silence cannot be acceptance.

1-23. Gita gave police information about a jewel thief on Monday. On Tuesday she learns that the owner has offered a reward of £200 for giving information on the thief. Is the owner contractually obliged to pay Gita the reward monies? a) No, because a party cannot accept an offer of which he has no knowledge.

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Page 8 b) Yes there is a unilateral contract. c) Yes there is a bilateral contract. d) No, a person is never contractually obliged to pay reward monies.

1-24. The following statements relate to the postal rules, which one is incorrect? a) The postal rules are no longer good law. b) The postal rules can be excluded from a contract. c) Under the postal rules a letter of acceptance properly addressed and stamped is effective from the moment of posting even if it never arrives. d) The postal rules only apply to acceptance of an offer.

1-25. What is meant by executory consideration? a) Consideration which is in the past. b) Where there is a promise to do something in the future . c) Where consideration has already been completed. d) The exchange of consideration.

1-26. Which of the following statements is correct? a) Consideration must be of adequate value. b) Performance of a duty imposed by law is good consideration. c) Consideration must always be greater than £1. d) Consideration must be sufficient. It must have some measurable and material value.

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1-27. In which case did the court decide that the performance of existing contractual duties can sometimes amount to consideration where the promisor gains some benefit? a) Williams v Roffey Bros & Nicholls (Contractors) Ltd. b) Stilk v Myrick c) Foakes v Beer d) Chappell v Nestle Co Ltd. 1-28. Daniel owes Ace Builders £5000. On discovering that Ace Builders are in financial difficulty Daniel offers to pay them £3,000 in full settlement of the debt. Ace Builders agree to accept the £3,000 but a week later, claim the remaining £2,000. Will Ace Builders succeed in their claim? a) Yes, a promise to accept payment of a smaller sum of money than owed is not enforceable in the above scenario. b) Yes, but only if Ace Builders agree to carry out further work for the £2,000 c) No, because Daniel’s payment is in full settlement of the debt. d) No, because the doctrine of promissory estoppel would apply 1-29. A term may be implied into a contract by: (a) The courts (b) Statute (c) Trade custom (d) A term can never be implied, it must always be expressed by the parties a) (a) and (b) only

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Page 10 b) (a) (b) and (c) only c) (d) d) (b)

1-30. Where a person acting in the course of a business includes a term in a contract which excludes liability for death and personal injuries through negligence, the term is: a) Binding on the parties provided they are not dealing as consumers. b) Invalid. c) Invalid unless it is reasonable. d) Only valid if it is brought to the attention of the other party. 1-31 Misrepresentation in a contract makes the contract: a) Void. b) Illegal. c) Voidable. d) Unenforceable. 1-32 An operative mistake in a contact makes the contract: a) Void. b) Illegal. c) Voidable. d) Unenforceable.

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1-33. Which one of the following statements is incorrect? a) Misrepresentations cover false statements and half truths. b) A statement which is true when it is made but becomes false before the contract is completed may amount to a misrepresentation. c) To be actionable the misrepresentation must be the only reason that persuaded the other party to enter into the contract. d) In English law there is no duty to disclose information before a contract unless the contract is one of the utmost good faith or a special relationship of trust exists between the parties. 1-34. Which of following statements about bilateral discharge of a contract by agreement is INCORRECT? a) Neither party has completed all their obligations under the contract. b) Both parties agree to release each other from completing the contract. c) Consideration consists of each party’s promise not to insist on the other party’s performance of the outstanding obligations. d) The agreement is called an ‘accord and satisfaction.’ 1-35. Which Act covers situations where a contract has been frustrated and the parties have not made their own provisions in the contract for the consequences of such an event? a) b) c) d)

The Law Reform (Frustrated Contracts) Act 1943 The Consequences of Frustrating Events Act 1978 The Companies Act 2006 The Consumer Rights Act 2015

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SECTION B 2.

“The factor which distinguishes contractual from other legal obligations is that they are based on the agreement of the contracting parties.” (Treitel, The Law of Contract, 13th Edition) Discuss this statement with reference to ‘offer’ and ‘acceptance’. Use appropriate examples from case law to illustrate your answer. A contract is an agreement between two or more persons which is legally binding. The agreement consists of an ‘offer’ and an ‘acceptance’. An offer is a clear statement of the terms on which the offeror is prepared to do business with the offeree. To be legally binding, an offer must be: (i)

Clear: a statement which is too vague will not be a valid offer (Guthing v Lynn);

(ii)

Communicated: the communication of an offer may be written, spoken or by conduct, but a person cannot accept an offer of which he is not aware (Bloom v American Swiss Watch Co.);

(iii)

Distinguished from other types of statement: a. A mere statement of intent cannot form the basis of an offer, even if the other party acts on it (Re Fickus); b. A party which is merely responding to a request for information is not making a binding offer: (Harvey v Facey); c. An invitation to treat is not an offer. It is an invitation to negotiate or a pre-offer whereby party A is asking party B if

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Page 13 they would like to make an offer. (Gibson v Manchester City Council). Examples of invitations to treat include displays of goods in shop windows and on self-service shelves, tenders and auctions. Acceptance is a final and unqualified expression of assent to the terms of the offer. Acceptance must be:

3.

(i)

A mirror image of the offer: any introduction of new terms will be construed as a counter offer.

(ii)

Unconditional; and

(iii)

Communicated: Silence cannot amount to acceptance (Felthouse v Bindley), but acceptance must be communicated by the offeree, or by authorized person (Powell v Lee). There are two exceptions to this rule: unilateral contracts and contracts where the postal rules apply.

Can the performance of an existing contractual duty amount to good consideration? Discuss how the law has developed in this area. Consideration can be defined as ‘the price of the other party’s act or promise.’ Consideration is an essential part of a binding contract. English law does not enforce gratuitous promises, unless made under a deed. In respect of existing contractual duties, if a party to a contract takes on additional obligations that are beyond those in his original contract, then that is good consideration for a new promise with the same party (Hartley v Ponsonby).

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Page 14 Traditionally, it was held that a promise to perform an existing contractual duty was not good consideration (Stilk v Myrick), however, this rule has been modified by Williams v Roffey Bros. Where there has been an agreement to pay additional sums for an originally agreed amount of work, the courts may allow a practical benefit gained to be consideration for the promise to pay extra money. In Williams v Roffey Bros, the defendant, Roffey, was a building company who had a contract to refurbish a building for a housing association. The contract contained a delay clause under which Roffey was required to pay money if the work was not completed on time. Roffey subcontracted carpentry work to Williams, who later ran into financial difficulties and told Roffey that he would be unable to continue. Roffey promised him extra money to complete the contract on time. Roffey then refused to honour the promise, claiming that Williams was only doing what he was contractually obliged to do. The Court of Appeal in Williams found Roffey’s promise of additional payment to be binding. The ratio of the decision was that Roffey had gained had gained a practical benefit because they were able to avoid the late completion payments on the other contract, and they did not have to meet the expense of engaging other contractors. Also, there had been no economic duress or fraud by Williams.

4.

What are the factors to be considered in distinguishing whether a statement is a term of the contract or a representation? The terms of a contract are the contents of the contract, and state the parties’ legal duties and obligations to each other. When parties are negotiating a contract, not all the statements made will necessarily be terms of the contract. Some statements

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Page 15 may be representations, i.e. pre-contractual statements inducing a party to enter a contract. There are a number of factors to be considered in assessing whether a statement is a term or a representation: (i)

The importance of the statement to the parties. If the statement is of major importance to either party and that party would not have entered the agreement without it, that statement will be a term (Bannerman v White).

(ii)

The time between that the statement and the contract. If there is a lengthy time gap between that statement and contract, the statement is usually a representation (Routledge v Mckay).

(iii)

Oral statements and written contracts. The general rule is that an oral statement is usually a representation if the contract is written.

(iv)

The knowledge and skill of the party making the statement. A statement made by one party who has specialist skills or knowledge, to a party who is relying on those specialist skills is more likely to be treated as a term of the contract (Dick Bentley Productions Ltd v Harold Smith). Conversely, if a statement is made by one party without any specialist knowledge, the statement is less likely to be construed as a term of the contract, particularly if it is made to a person with expertise (Oscar Chess v Williams).

5.

Niall visits Harry, a clothing manufacturer, at his office to discuss a contract to purchase ‘glow in the dark’ T-shirts for a music festival that Niall is promoting. Harry and Niall believe that the T-shirts are safely stored in Harry’s warehouse a few miles away. Just after the

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Page 16 contract is signed, the warehouse burns down due to the actions of an arsonist. What is the effect, if any, on the contract? Would your answer differ if the warehouse had burnt down moments before the contract was concluded? In the first scenario, the subject matter of the contract was destroyed after the contract had been made, but before it had been performed. Accordingly, it is likely that the contract has been discharged by ‘frustration’. Discharge of a contract means that the obligations of the contract come to an end, and all the duties which arose under the contract are terminated. A contract may be discharged by frustration if, between formation and performance of the contract, events outside that parties’ control render further performance impossible, illegal, or radically different from what the parties had agreed. The origin of the doctrine of frustration can be found in Taylor v Caldwell. Caldwell agreed to rent a music hall from Taylor. After the contract was agreed, but before the concerts had taken place, the music hall was destroyed by an arsonist, and the contract was therefore frustrated. The Law Reform (Frustrated Contracts) Act 1943 covers situations where a contract has been frustrated and the parties have not made their own provisions in the contract for such an event. For example, under s1(2) Niall could recover any money that he had paid in advance for the t-shirts. In the alternative scenario, the t-shirts are destroyed prior to the contract being formed. If at the time of making the contract the subject matter did not exist, then the contract is l...