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ACCA Corporate and Business Law (LW) 2022 past questions and answers

This 2022 ACCA Corporate and Business Law (LW) set has 20 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2022 set with instant marking.

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Sample ACCA Corporate and Business Law (LW) 2022 questions

1. A supplier in England is pursuing a straightforward unpaid invoice claim against a customer. The dispute raises no unusually complex legal issue and no specialist jurisdiction applies. Which court would normally hear the claim at first instance?
  1. The County Court
  2. The Crown Court
  3. The Court of Appeal
  4. The Supreme Court

Answer: A. The County Court

The County Court hears most ordinary civil claims, including straightforward debt disputes. The Crown Court deals principally with criminal cases, while the appellate courts do not ordinarily hear such a claim first.

2. A High Court judge is deciding a dispute with facts materially indistinguishable from an earlier Court of Appeal case. The earlier case's relevant legal principle was part of its ratio decidendi. What should the High Court judge normally do?
  1. Ignore the earlier decision because only Supreme Court decisions bind the High Court
  2. Apply the Court of Appeal's principle unless a valid distinction or higher authority applies
  3. Treat the earlier decision as binding only if the same parties are involved
  4. Apply the principle only if the earlier judgment was unanimous

Answer: B. Apply the Court of Appeal's principle unless a valid distinction or higher authority applies

The High Court is bound by the ratio decidendi of the Court of Appeal, subject to a relevant distinction or a conflicting decision of a higher court. The parties and unanimity of the earlier decision do not determine whether its ratio binds.

3. Mira offers by letter to sell a used printer to Joel and expressly asks him to accept by post. Joel posts an unconditional acceptance on Tuesday. Mira's attempted revocation reaches Joel on Wednesday, and the acceptance letter reaches Mira on Thursday. When was the contract formed?
  1. When Mira received the acceptance on Thursday
  2. When Joel read the offer
  3. When Joel posted the acceptance on Tuesday
  4. When Mira's revocation reached Joel on Wednesday

Answer: C. When Joel posted the acceptance on Tuesday

Where the postal rule applies, acceptance is effective when properly posted, so the contract formed on Tuesday. Mira's revocation arrived after acceptance had already taken effect.

4. A designer completes a one-off logo for a café without being asked to do so. After seeing it, the café owner promises to pay the designer £300 for the completed work. No deed or other exception applies. Which statement best describes the promise?
  1. It is enforceable because any promise to pay money is binding
  2. It is enforceable because the café received a benefit, even though the work was already complete
  3. It is enforceable because the designer's past work is automatically fresh consideration
  4. It is generally not enforceable as a simple contract because the consideration is past

Answer: D. It is generally not enforceable as a simple contract because the consideration is past

The designer completed the work before the owner's promise, so the act is past consideration and will not normally support the later promise in a simple contract. The benefit received does not by itself make the prior act fresh consideration.

5. A customer agrees to buy a machine at a sales counter. Only after the agreement is complete does the seller hand over a receipt containing a previously unseen clause excluding liability for damage caused by the seller's negligence. The customer did not otherwise know of the clause. Which is the best conclusion?
  1. The clause is unlikely to be incorporated because notice was given only after the contract was made
  2. The clause is automatically incorporated whenever it is printed on a receipt
  3. The clause is incorporated because the customer accepted delivery of the receipt
  4. The clause is incorporated unless the customer proves the seller acted dishonestly

Answer: A. The clause is unlikely to be incorporated because notice was given only after the contract was made

A term on a document must generally be brought to the other party's attention before or at the time the contract is made. A term first presented on a receipt after formation is normally too late to be incorporated.

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