QCF Specimen Question Papers

Please note that ABE will not be able to accept any queries about the individual questions in the papers. The specimen question papers are provided for information purposes only; they are intended to give candidates an indication of the types of paper that will be used to assess the QCF units and to provide a flavour of the sort of questions that might be asked. There may be minor differences between the style of the specimen question paper and that of the actual examination paper. It is essential that you look at the specimen question paper for each unit that you are taking. This is because there are various types of question paper under QCF.

Key points for all QCF question papers: All the Learning Outcomes will be assessedunder NQF only a selection of Learning Outcomes was assessed. Make sure that you read and understand the instructionsthe paper may be divided into sections; in some sections all questions will be compulsory; in others you will be offered a choice between questions. Allocate your time carefullyyou may be required to answer more questions than you would have answered under NQF. Make sure that you take account of the number of marks available for each question when deciding how to allocate your time.

Level 5 Diploma Principles of Business Law QCF Specimen Question Paper

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Time allowed: 3 hours. The number of questions you have to answer is marked clearly at the top of each section. Read the instructions at the top of each section carefully. Do not answer more questions than instructed. If you are offered a choice between two questions in a section you must NOT answer both questions. The number of marks per question may vary. Marks for subdivisions of questions and the total marks for each question are shown in brackets after the question. No books, dictionaries, notes or any other written materials are allowed in this examination. Calculators, including scientific calculators, are allowed providing they are not programmable and cannot store or recall information. Electronic dictionaries and personal organisers are NOT allowed. Candidates who break ABE regulations, or commit any misconduct, will be disqualified from the examinations. Question papers must not be removed from the Examination Hall.

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ABE 2011

SECTION A
You must answer ALL SIX questions in Section A. The questions in this section do not carry equal marks. Section A carries a total of 90 marks.

Q1 Identify and explain three key elements required to form a legally binding contract. (9 marks)

Q2 Identify and describe the three key tests that the courts apply to decide whether an individual is an employee of a company or self-employed. (9 marks)

Q3 (a) (b) Identify and explain five key differences between criminal and civil liability. (10 marks) Briefly explain ratio decidendi and how it is used in either a civil or criminal case. (6 marks) (Total 16 marks)

Q4 (a) (b) Outline three rights and three duties of an agent. Explain one way in which an agency relationship can arise. (12 marks) (4 marks) (Total 16 marks)

Q5 Ash, Bhuna and Clive are directors of a small company, Acme Ltd. Originally, the company operated as a partnership but since 2006, it has been a limited company. Following the companys incorporation, the three directors have held equal proportions of issued share capital. In September 2008, Clive criticised Ash and Bhunas decision to form another company, Banjo Ltd since its objectives were very similar to Acme Ltd. Due to Clives criticism, Ash and Bhuna passed an ordinary resolution to remove Clive as a director of Acme Ltd. Ash and Bhuna have also raised additional capital in the company by issuing shares to Ashs wife, Dal. Consequently, Ash, Bhuna and Clive have been left with a shareholding interest of 24% each. In March 2010, Acme Ltd held its general meeting where the directors stated that they would no longer be declaring a shareholder dividend. However, the directors approved an 85% increase in the level of directors remuneration. Advise Clive on: (a) (b) (c) His removal as a director; The new issue and share allotment; and The directors duties to the company. (5 marks) (5 marks) (10 marks) (Total 20 marks)

Q6 Sanjay wishes to purchase a nearly new hybrid car (a car with an electric motor and a conventional engine). He finds the one he likes at the Buenavista car dealership. The car is advertised for the price of 10,000. However, Sanjay knows little about these types of cars so employs the services of Car Experts Ltd, a company that surveys the road worthiness of motor vehicles for potential buyers. Sanjay informs Car Experts Ltd that it is vital that the hybrid car is in excellent condition. Car Experts Ltd examine the car and inform Sanjay that it is in perfect condition and is worth the amount advertised. Sanjay purchases the car on the advice given by Car Experts Ltd for 10,000. However, after owning the car for less than a week, the engine blows up due to the car having a simple engine fault that could have easily been spotted by someone with expert knowledge. Sanjay then enters into a contract with Rip Off Merchants Ltd, a company that specialises in the repair of hybrid cars. The cost to rebuild the engine is 10,000. Rip Off Merchants Ltd are unable to replace the broken engine with another original one as these are no longer available. However, a cheaper and inferior one can be sourced. This engine is known to be very noisy and unreliable. A few days later, Sanjay picks up the car believing it to have a new original engine replacement. He drives to his parents house but halfway there the engine makes a lot of noise and then blows up again causing damage to the cars bodywork in the process. It is estimated that to repair the car again would cost 15,000. Advise Sanjay on: (a) Any claims he may have against Buenavista car dealership and Car Experts Ltd for breach of contract. (10 marks) Any claim he may have against Rip Off Merchants Ltd for breach of contract (5 marks) The extent of damages that may be claimed in each case if both claims were successful. (5 marks) (Total 20 marks)

(b) (c)

SECTION B
You must answer ONE question from Section B. DO NOT answer BOTH questions from this section. Both questions carry 10 marks.

EITHER: Q7 Careys Clothing Store employs Bana, an 18 year old student. Bana works part-time at Careys on Friday afternoon and Saturday morning. However, she only receives 2 per hour while part-time male workers receive 5 per hour. Explain what claims Careys Clothing Store will face if Bana complains about her wages, and outline what difference, if any, Banas status as a part-time worker will make to her claim. (10 marks)

OR: Q8 Diamonds and Pearls Jewellery Store (DAP) employs Manuel as head of deluxe watch sales. Manuel has worked in this industry for many years but only joined the company three months ago. Manuels employment terms state that he is entitled to a company car, private gym membership and a two month dismissal notice. Manuel has upset a large number of DAP employees with his attitude towards female and younger employees and the owners of DAP wish to dismiss him as quickly as possible. Advise DAP on the contractual claim which Manuel may make if he is dismissed with less notice than that provided in his contract, and briefly outline what form of compensation he may expect. (10 marks)

END OF EXAMINATION PAPER