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ACCA Corporate and Business Law (LW) 2023 past questions and answers

This 2023 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 2023 set with instant marking.

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Sample ACCA Corporate and Business Law (LW) 2023 questions

1. In England, a defendant is convicted and sentenced by a magistrates' court and wishes to appeal against both conviction and sentence. Which court ordinarily hears this appeal?
  1. The County Court
  2. The High Court
  3. The Crown Court
  4. The Court of Appeal (Civil Division)

Answer: C. The Crown Court

An appeal from a magistrates' court to challenge conviction or sentence is ordinarily heard by the Crown Court. The County Court and Court of Appeal (Civil Division) do not hear this ordinary criminal appeal.

2. A High Court judge is deciding a case in England. Two earlier, directly relevant decisions conflict: one was given by the Supreme Court and the other by the Court of Appeal. Which decision is binding on the High Court judge?
  1. The Supreme Court decision
  2. The Court of Appeal decision because it is more recent
  3. Neither decision, because the High Court may choose freely
  4. The decision of whichever court heard the case first

Answer: A. The Supreme Court decision

The Supreme Court is above the Court of Appeal in the court hierarchy, and its ratio decidendi binds the High Court. A lower-court decision cannot override a conflicting Supreme Court decision merely because it is newer.

3. A shop displays a camera with a price label in its window. A customer asks to buy it at that price. Which statement best describes the usual contract-law position in England?
  1. The display is an offer which the customer accepts by asking to buy
  2. A contract was formed as soon as the customer saw the display
  3. The display is an offer, but the shop may withdraw it after the customer accepts
  4. The display is usually an invitation to treat; the customer's offer can be accepted or rejected by the shop

Answer: D. The display is usually an invitation to treat; the customer's offer can be accepted or rejected by the shop

A shop-window display is generally an invitation to treat, not an offer. The customer makes an offer to buy, which the shop may accept or reject; the display alone does not form the contract.

4. At 3 pm on a working day, an acceptance email reaches the offeror's designated inbox. The offeror does not read it until 5 pm. Under the usual rule for near-instantaneous communications, when is the acceptance ordinarily effective?
  1. When the offeree decided to accept
  2. When the email is received in the offeror's inbox during normal business hours
  3. Only when the offeror actually reads the email
  4. When the offeror sends a separate acknowledgement

Answer: B. When the email is received in the offeror's inbox during normal business hours

Acceptance by a near-instantaneous communication is ordinarily effective on receipt, provided it arrives at the appropriate place and time. The offeror cannot usually postpone effectiveness simply by choosing to read the message later.

5. A builder has a contract to complete a shop renovation by 1 June. The client promises an extra £2,000 if the builder finishes on time. The client will avoid substantial disruption and a contractual delay claim, and there is no duress. What is the strongest basis for treating the promise of extra payment as supported by consideration?
  1. The builder's existing duty automatically counts as fresh consideration in every variation
  2. The promise is enforceable because promises to pay money never need consideration
  3. The client receives a practical benefit from timely completion, which may support the variation
  4. The builder's past work is past consideration and therefore supports the promise

Answer: C. The client receives a practical benefit from timely completion, which may support the variation

Under the practical-benefit approach in Williams v Roffey Bros, a benefit such as avoiding delay and disruption can provide consideration for a promise to pay more, where there is no economic duress. Past work would not itself be fresh consideration.

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