ACCA

ACCA LW — Corporate and Business Law Practice Exam 2

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A complete mock exam replication for ACCA LW, mirroring live computer-based testing parameters. Features 60 questions covering the full syllabus (A-H) with unique, diverse corporate scenarios.

60
Questions
Mixed
Difficulty
50%
Pass mark

Difficulty breakdown

Easy(28)
Medium(24)
Hard(8)

Sample questions

Q01Medium2 marks

A dispute has arisen between 'AquaHarvest Ltd' and a supplier over a £150,000 contract for specialized algae harvesting equipment. The supplier claims breach of contract.

In the English civil court system, which track and court of first instance will most likely handle this claim?

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Q02Medium2 marks

A judge is interpreting a 19th-century statute regarding 'carriages on the highway' to determine if it applies to modern electric hoverboards. The judge looks at the original problem Parliament intended to solve (preventing pedestrian injuries) and applies the statute to hoverboards to solve that same problem.

Which rule of statutory interpretation is the judge applying?

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Q03Medium2 marks

Under the Human Rights Act 1998, certain rights can be claimed by corporate entities as well as natural persons.

Which TWO of the following rights can be claimed by a registered company?

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Q04Easy2 marks

'AeroDyne Drone Logistics Ltd' sends an automated email to a potential client stating: "We can provide daily drone delivery services for your medical supplies at £500 per week. Please reply to discuss terms."

In contract law, what is the legal status of this email?

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Q05Hard2 marks

'EcoVertical Farms Ltd' leases a warehouse from a landlord. During a severe economic downturn, the landlord promises to halve the rent for a year. EcoVertical relies on this and invests its remaining cash into new LED lighting. When the economy improves six months later, the landlord demands the full arrears for the past six months.

Under the equitable doctrine of promissory estoppel, what is the likely outcome?

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All questions (60)

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Q01A dispute has arisen between 'AquaHarvest Ltd' and a supplier over a £150,000 contract for specialized algae harvesti...MediumQ02A judge is interpreting a 19th-century statute regarding 'carriages on the highway' to determine if it applies to mod...MediumQ03Under the Human Rights Act 1998, certain rights can be claimed by corporate entities as well as natural persons. Whi...MediumQ04'AeroDyne Drone Logistics Ltd' sends an automated email to a potential client stating: "We can provide daily drone de...EasyQ05'EcoVertical Farms Ltd' leases a warehouse from a landlord. During a severe economic downturn, the landlord promises ...HardQ06A software developer creates an AI diagnostic tool for hospitals. Due to a negligent coding error, the AI misdiagnose...MediumQ07'QuickCharge Scooters Ltd' hires mechanics to repair its e-scooters. The mechanics use their own tools, choose their ...MediumQ08A marine biologist at 'DeepBlue Aquaculture' is dismissed immediately without notice after being five minutes late to...MediumQ09'ThreadWorks Ltd', a textile manufacturer, decides to fully automate its weaving process. As a result, the company no...EasyQ10A freelance data annotator works for a machine learning firm. They are required to perform the work personally, canno...MediumQ11A group of architects wishes to form a business. They want the flexibility of a traditional partnership regarding int...EasyQ12The director of 'ToxicDisposal Ltd' deliberately creates a new company, 'CleanEarth Ltd', solely to transfer assets a...HardQ13Before 'AstroTourism Ltd' is officially incorporated, its founder, James, signs a contract with a marketing agency to...MediumQ14'BioGenetics PLC' issues 10,000 shares with a nominal value of £1 each. Because the company is highly successful, inv...MediumQ15A renewable energy company wants to vary the rights attached to its class of preference shares. Under the Companies...HardQ16'AgriBotics Ltd' secures a bank loan using its fleet of autonomous tractors as collateral. The company is allowed to ...MediumQ17In a family-owned brewery, the retired founder, Arthur, is not officially on the board of directors. However, the off...MediumQ18The board of directors of a mining company is deciding whether to open a new mine. It will be highly profitable for s...MediumQ19A public limited company (PLC) wishes to change its name, which requires a special resolution at a general meeting. ...MediumQ20In a fintech startup, the majority shareholders (who are also the directors) vote to pay themselves massive salaries ...HardQ21A struggling retail chain is placed into administration. Under the Insolvency Act 1986, what is the primary hierarc...EasyQ22A creditor wishes to force a company into compulsory liquidation because the company cannot pay its debts. The credit...EasyQ23Six months before 'BuildRight Ltd' goes into insolvent liquidation, the directors sell a company-owned excavator wort...MediumQ24Under the Bribery Act 2010, a commercial organization can be guilty of the strict liability offence of 'failure to pr...HardQ25An accountant suspects that a client is using their business to launder money. The accountant files a Suspicious Acti...EasyQ26In the English civil court system, what is the normal financial limit for a standard breach of contract claim to be a...EasyQ27Which of the following best describes 'delegated legislation'?EasyQ28Under the postal rule in contract law, when is an acceptance sent by post generally considered to be legally effective?EasyQ29What is the standard of proof required in a civil tort case?EasyQ30The rule in Hadley v Baxendale relates to which legal concept in contract law?EasyQ31Under the Employment Rights Act 1996, what is the minimum statutory notice period an employer must give to an employe...EasyQ32What is the standard time limit for an employee to present a claim for unfair dismissal to an Employment Tribunal?EasyQ33What is the minimum number of members (shareholders) required to form a public limited company (PLC) under the Compan...MediumQ34Which type of company must obtain a trading certificate from the Registrar of Companies before it can commence busine...EasyQ35If a newly formed private limited company does not register its own bespoke Articles of Association, what happens?EasyQ36What is the minimum allotted share capital required for a public limited company (PLC) under the Companies Act 2006?EasyQ37In company law, which of the following best defines a 'debenture'?EasyQ38Within how many days must a company register a new charge (such as a mortgage) with Companies House to ensure it is v...EasyQ39What is the minimum legal age for a person to be appointed as a director of a UK company?EasyQ40What voting threshold is required to pass an 'ordinary resolution' at a company's general meeting?EasyQ41Which of the following statements regarding the appointment of a company secretary is correct under the Companies Act...EasyQ42In a corporate liquidation, which of the following debts is paid first out of the realized assets (after the expenses...MediumQ43What is the legal term for the event where a floating charge converts into a fixed charge, attaching to the specific ...EasyQ44Under the Criminal Justice Act 1993, what is the maximum prison sentence for the offence of insider dealing?MediumQ45Money laundering is typically described as occurring in three distinct stages. Which TWO of the following are recogn...EasyQ46**Scenario:** 'AeroDyne Drone Logistics Ltd' negotiates with 'MediSupply Co' to provide vaccine delivery routes. Aero...MediumQ47**Scenario:** 'AeroDyne Drone Logistics Ltd' negotiates with 'MediSupply Co' to provide vaccine delivery routes. Aero...MediumQ48**Scenario:** 'AeroDyne Drone Logistics Ltd' negotiates with 'MediSupply Co' to provide vaccine delivery routes. Aero...EasyQ49**Scenario:** 'DeepBlue Aquaculture' employs Marcus as a technician. Marcus has worked there for 3 years. He is dismi...EasyQ50**Scenario:** 'DeepBlue Aquaculture' employs Marcus as a technician. Marcus has worked there for 3 years. He is dismi...EasyQ51**Scenario:** 'DeepBlue Aquaculture' employs Marcus as a technician. Marcus has worked there for 3 years. He is dismi...EasyQ52**Scenario:** 'Urban Canopy Initiatives', a community group, wants to form a corporate entity to buy land for rooftop...EasyQ53**Scenario:** 'Urban Canopy Initiatives', a community group, wants to form a corporate entity to buy land for rooftop...MediumQ54**Scenario:** 'Urban Canopy Initiatives', a community group, wants to form a corporate entity to buy land for rooftop...HardQ55**Scenario:** 'Quantum Lithography PLC' manufactures microchips. The CEO, David, secretly sets up a rival consulting ...MediumQ56**Scenario:** 'Quantum Lithography PLC' manufactures microchips. The CEO, David, secretly sets up a rival consulting ...MediumQ57**Scenario:** 'Quantum Lithography PLC' manufactures microchips. The CEO, David, secretly sets up a rival consulting ...HardQ58**Scenario:** 'GeoThermal Grid Ltd' is facing severe financial difficulties. The directors realize the company cannot...MediumQ59**Scenario:** 'GeoThermal Grid Ltd' is facing severe financial difficulties. The directors realize the company cannot...MediumQ60**Scenario:** 'GeoThermal Grid Ltd' is facing severe financial difficulties. The directors realize the company cannot...Hard