These are ACCA F4 English (CL/LW) Corporate and Business Law MCQs for Part-B of the Syllabus “The law of obligations”.

These multiple-choice questions (MCQs) are designed to help ACCA F4 English students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

Students should not attempt these MCQs until they have studied the entire chapter.
All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F4 English (CL/LW) exam.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course:	ACCA – Association of Chartered Certified Accountants
Fundamental Level:	Applied Skills
Subject:	Corporate and Business Law
Paper:	F4 English – CL/LW
Chapter:	The law of torts and professional negligence
Chapter Number:	07 of the Practice and Exam Kit
Syllabus Area:	B – “The law of obligations”
Questions Type:	CBE MCQs
Exam Section:	Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part B of the Syllabus; “The law of obligations” of ACCA F4 English (CL/LW) Corporate and Business Law Module.

Time

These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate.

Result

Students will get their F4 English CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “( select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

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F4 (ENG) - Chapter 07 - Part B - MCQs

Course: ACCA - Association of Chartered Certified Accountants
Subject: F4 (LW/CL) (ENGLISH) - Corporate And Business Law
Syllabus Area: B - The law of obligations
Chapter in Kit: 07 - The law of torts and professional negligence
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 15

Which of the following statements concerning tort is correct?

Breach of contract is a tort

A tort is a civil wrong and the victim sues for compensation or an injunction

Torts are crimes

2 / 15

Which of the following describes the tort of 'passing-off'?

A consumer deliberately wearing a product that purports to be made by one brand but which is actually a fake

Misleading a consumer to take actions that are to their detriment

The use of a business name or trademark that misleads the consumer to believe that one business is that of another

3 / 15

In which of the following circumstances will a defendant be liable to pay compensation under the tort of negligence?

Their actions caused the claimant to suffer some loss, injury or damage

They breached a duty of care to the claimant and as a consequence the claimant suffered loss, injury or damage

They breached a duty of care to the claimant

4 / 15

In the tort of negligence, what is the legal effect of res ipsa loquitur?

The claimant must prove that the defendant was negligent

The defendant must prove that they were not negligent

5 / 15

In which of the following circumstances would an employer be vicariously liable for the acts of an employee?

Where the loss or damage was caused by the employee, but they were not on company business at the time of the incident

Where the employee has a valid defence to liability and the injured party has no other course of action available to them

Where the loss or damage was caused by the employee when performing the duties they were employed to do

6 / 15

In the tort of negligence, what is the effect of volenti non fit injuria?

The claimant accepted the risk of injury and the defendant is not liable for the claimant's losses

The defendant is liable for the claimant's injury unless proved otherwise

Neither the claimant nor the defendant is responsible for the claimant's injury

7 / 15

Which of the following statements describes whom a company's auditor owes a duty of care to?

The public at large who read the company accounts

The company only

The company's shareholders who read the company accounts and increase their stake in the business

8 / 15

Which of the following statements regarding tort is correct?

Actions in tort are heard in the criminal court system

No contractual relationship need exist between claimant and defendant for the defendant to be liable to the claimant in tort

In tort, the burden of proof is always on the defendant to prove that they were not negligent

The only remedy for a victim of a tort is damages

9 / 15

To establish a case of 'passing-off', what must the claimant prove?

The consumer purchased fake goods

The name of the defendant's business is similar enough to the claimant's to mislead the consumer

The defendant is using a similar business model to the claimant

10 / 15

Which TWO of the following are questions that are asked to establish whether the defendant owed the claimant a duty of care?

Was there a relationship of proximity between the parties?

Was the harm obvious to a reasonable person?

Did the claimant accept the risk of injury?

Is it fair, just and reasonable to impose a duty of care on the defendant?

11 / 15

When considering whether a defendant has breached their duty of care, a number of factors are considered.

Which of the following statements concerning breach of duty of care is correct?

A professional is expected to demonstrate the same level of care and skill as a reasonable person performing the same task

Defendants are not expected to ensure that all possible precautions against risk are taken if the cost of the precautions outweigh the risk

A social benefit to a defendant's actions is no excuse for breaching the level of care expected

Where there is a high probability of injury, the claimant should have taken extra care

12 / 15

In regards to professional negligence, which of the following statement is True?

13 / 15

Which of the following circumstances will prevent causality being established in a claim of negligence?

Multiple possible reasons for the injury with no one act being established as the cause

Foreseeable natural events

Acts of a third party that occur after the claimant's injury

An act of the claimant that is reasonable and within the normal course of things

14 / 15

In which of the following circumstances will an accountant owe a duty of care?

Where they prepare a statement for general public circulation where it is unknown who may rely on the information and for what purpose

Where they produce information for a particular person, in the knowledge that the person will rely on the information when making a decision about a transaction

15 / 15

Which TWO of the following parties does an auditor owe a duty of care to when auditing the accounts of a subsidiary company?

A rival company considering a takeover of the subsidiary company

The parent company

The subsidiary company

The shareholders of the parent company