The main function of the Australian Parliament is to: Enact laws according to the Australian Constitution.

Determine State government policies. Protect the rights of the citizens. Inform the citizens of their rights. Laws made by parliaments are called statute law. TRUE - False Which of the following statements best reflects the doctrine of precedent? All previous decisions must be similar. Cases with different facts should be decided in a similar manner. Cases with similar facts should be decided in a similar manner. All previous decisions must be followed. What is the meaning of the term "court hierarchy"? The horizontal arrangement of courts within Australia. A vertical system of appellate courts. The supreme courts of the various states and territories. A tiered court system within each particular jurisdiction. Business law is primarily about civil disputes which result in remedies for the successful party and liabilities for the losing party. Which of the following are examples of aspects of civil law relevant to business? Business entities law. Tort law. Contract law. All of the options. Is the High Court a State court, that is located within the State court hierarchy, or is it a Federal court, that is located within the Federal court hierarchy? The High Court is both a state court and a federal court. The High Court is a federal court located within the federal court hierarchy. The High Court is neither a state court nor a federal court. The High Court is a state court.

Which of the following is a purpose of a hierarchical court structure? All of the options. A hierarchy of courts provides a system of appeals through which dissatisfied litigants may appeal from a decision of a lower court to a high court to have the matter reconsidered. A hierarchy of courts is instrumental in the building up of precedent. A hierarchy of courts allows different forms of hearing according to the gravity of the case. (Which of the following is NOT one of the purposes of having a Hierarchical Court structure?) Which of the following is NOT one of the advantages of ADR (Alternative Dispute Resolution) over formal litigation? ADR is less expensive than formal litigation. ADR is less intimidating than formal litigation. ADR is more authoritative than formal litigation. ADR is more likely to be heard quickly than formal litigation. Which of the following statements is the best definition of the concept of 'Justice'? A branch of English law which developed hundreds of years ago when litigants would go to the King and complain of harsh or inflexible rules of common law. A rule of conduct made by the state and backed by the threat of coercive sanctions. Fairness. Conduct or action is both fair and right, given the circumstances. A case which establishes legal principles to a certain set of facts, coming to a certain conclusion, and which is to be followed from that point on when similar or identical facts are before a court. The Australian Constitution is a very important piece of legislation that is: The law that regulates how Australia is governed. The law which regulates commercial transactions. A set of citizen rights. The story of the Australian legal system. Which of the following matters fall within the original jurisdiction of the High Court? Appeals from State Supreme Courts. Disputes between individuals over land within one State. Disputes relating to the constitutions of individual States. Disputes between States. The rules of equity: Complement the common law. All of the options. Provide a wider range of remedies than the common law. Are based upon the concept of fairness.

In Australia, the common law system is the system of law. False - True. Which of the following is an objective of the High Court? To hear cases involving indictable offences against the laws of the Commonwealth. To guard and interpret the Australian Constitution. All of the options. To serve as a final court of appeal within the Australian legal system.
In Australia the law is derived from several sources. Which of the following are the two main sources of the law in Australia? Common law and Statute law International law and Treaties. Private and Public law. All of the options. Business law is primarily about civil disputes which result in remedies for the successful party and liabilities for the losing party. Which of the following are examples of aspects of civil law relevant to business? Tort law. Business entities law. All of the options. Contract law. Which of the following matters fall within the original jurisdiction of the High Court? Disputes relating to the constitutions of individual States. Disputes between individuals over land within one State. Disputes between States. Appeals from State Supreme Courts. Civil Law is best defined as which of the following types of Law? Laws based on the Bible. Codified laws. Laws made by sovereigns. Laws based on the Koran.

A promise to keep an offer open for a specified period: Is not enforceable unless supported by the offeror's consideration Is not enforceable unless made in writing is not enforceable unless supported by the offeree's consideration is not enforceable A court will enforce an agreement: if a reasonable person would believe that an agreement had been reached based on the conduct of the parties only if both parties intended to reach an agreement by ascertaining the actual subjective state of mind of each party only if there has been an actual 'meeting of the minds' Which of the following statements in respect to determining when an agreement is a contract is NOT

sometimes the law implies the existence of a valid contract the courts are not concerned the intention of the parties is a private matter the parties are in an agreement do not always intend to create legal relations. it is generally not necessary that a contract be in writing to be enforceable Which of the following is NOT one of the three essential requirements of a contract? a. an agreement in writing and signed by the parties b. the intention that the agreement be legally enforceable c. consideration d. an agreement between two or more persons Which of the following situations is likely to be seen as an offer rather than an invitation to treat? a. a catalogue containing a description of "Business Law" and the statement "special offer! Only $79.99" b. a copy of 'Business Law' in the window of a book shop with a price tag attached to it c. a poster advertising 'Business Law' at a reduced price d. an email containing the question 'Can I buy your copy of 'Business Law' for $20.00?' Which of the following statements is correct in respect to the nature of a contract? a. not all contracts are agreements b. the terms 'contract' and 'agreement' mean the same thing c. a contract is a type of agreement d. an agreement is a legally enforceable contract

Which of the following is NOT one of the legal consequences of affective acceptance of an offer? a. the offer cannot be revoked b. the parties intend the agreement to be legally enforceable c. the parties have reached agreement d. The offer cannot be rejected A unilateral contract is one where: a. a person is obliged to pay a reward for a voluntary act carried out by the other person b. one person becomes obligated to carry out a promise if the other person performs a required act c. there is only one person bound by the contract d. only one person has any obligations In relation to contract law an invitation to treat is best described as: a. an offer to accept an offer b. an offer to offer an offer c. an offer to consider offers d. and offer In which of the following cases involving business or commercial agreements did the court decide that the wording of an advertisement may indicate an intention of the advertiser to create legal relations? a. Jones v Vernon Pools Ltd b. Rose and Frank Co. v Crompton and Bros Ltd c. Carlill v Carbolic Smoke Ball Co. d. Edwards v Skywards Ltd An offer is not terminated by: a rejection of that offer by the offeree a request for more information by the offeree a counter-offer by the offeree a qualified acceptance by the offeree When a merchant advertises their products, the courts generally presume that the merchant intended any contract with a purchaser to be legally binding the merchant intended their statements to be legally binding the merchant did not intend to immediately create legal relations with viewers of the advertisement the merchant did not intend to enter into contracts with purchasers of their products

The sources of contract law in Australia include: Australian statute law principles of equity All of the options Australian court decisions English case law adopted by Australian courts In Carlill v Carbolic Smoke Ball, the advertisement placed by the company was: a statement of intention none of the options an invitation to treat an offer

Which of the following is NOT an example of a contract? the hiring of an employee the lease of a house the payment of tax the purchase of food from a takeaway

Which of the following is the best description of consideration in the context of contract law> all of the options something of value passing from one party to another in return for a promise to do something an offer by one party is an acceptance by the other the parties must intend that their promises create legally enforceable obligations Which of the following statements is the best description of a 'voidable' contract? the purpose of the contract contravenes a statute or the common law the contract remains valid and binding unless and until it is repudiated by the injured party there are no legal rights or obligations from the outset, and the contract cannot be enforced by either party the contract is valid on its face, no legal action can be brought on it Which of the following statements is the best description of an 'illegal' contract? while the contract is valid on its face, no legal action can be brought on it the purpose of the contract contravenes a statute or the common law the contract remains valid and binding unless and until it is repudiated by the injured party there are no legal rights or obligations from the outset, and the contract cannot be enforced by either party.

Parties to a commercial agreement who do not with the agreement to be legally binding: need not do anything can expressly declare that they do not intend to create legal relations are unable to prevent the agreement from becoming legally enforceable can expressly exclude the jurisdiction of the courts Which of the following is the best description of 'intention' in the context of contract law something of value passing from one party to another in return for a promise to do something all of the options the parties must intend that their promises create legally enforceable obligations an offer by one party is an acceptance by the other Which if the following actions or conduct is NOT a requirement of a valid offer? the offer must be more than a request for information the offer must be made to a specific offeree the offer must be kept open if supported by consideration all terms must be brought to the notice of the offeree and followed exactly Which if the following is the best description of 'agreement' in context of contract law? the parties must intent that their promises create legally enforceable obligations something of a value passing from one party to another in return for a promise to do something all of the options an offer by one party and an acceptance by the other In order to be contractually binding on the parties, an agreement must be expressed in writing but need not be signed in all cases may arise by implication as a result of the conduct of the parties must be either expressed in writing or expressed verbally must be expressed in writing Which of the following statements are capable of being representations (and hence misrepresentations) statements of opinion statements of fact statements of law statements as to future conduct or intention

Which of the following statements is the best description of 'common mistake'? a. one of the parties is mistaken about a material fact regarding the subject matter of the contract b. both of the parties are mistaken about a material fact that is important to the subject matter of the contract c. both parties have made a mistake about the existence or identity of the subject matter of the contract d. one of the parties is mistaken as to the nature of document they have signed Consideration is sufficient if it is: a. the performance of an existing contractual duty owed to a third party b. all of the options c. the performance of an existing contractual duty owed to the promisor d. the performance of an existing legal duty

Which of the following statements is the best description of 'negligent misrepresentation'? a. a false statement of fact made knowingly, which the other person relies upon and suffers loss b. a false statement of fact made carelessly, which the other person relies upon and suffers loss c. all of the options d. a false statement of fact made with the belief that it is true, which the other person relies upon and suffers loss

Which of the following statements is the best description of 'mutual mistake'? a. one of the parties is mistaken about a material fact regarding the subject matter of the contract, and the other party takes advantage of this mistake b. both parties have made the same mistake about the existence or the identity of the subject matter of the contract c. one of the parties is mistaken as to the nature of the document they have signed d. both parties are mistaken about a material fact regarding the subject matter of the contract

Which of the following types of contract will not be enforceable against a minor a. trading contracts b. contracts for necessaries c. where the minor pays cash for goods or services d. beneficial contracts of service

In Dunlop Pneumatic Tyres Co Ltd v Selfridge & Co Ltd the court decided that: a. Dunlop could not enforce the promise made by Selfridge because Dunlop had given Selfridge no consideration b. Dunlop could not enforce the promise because there was no privity of contract between Dunlop and Selfridge c. Dunlop could not enforce the promise made by Selfridge because that promise had been made to Dew & Co d. all of the options Consideration must be: a. valuable and either adequate or sufficient b. valuable and adequate, but need not be sufficient c. valuable, adequate and sufficient d. valuable and sufficient, but not adequate Which of the following classes of persons are NOT presumed to have limited contractual capacity? a. intoxicated people b. very old people c. very young people d. mentally ill people Unless evidence to the contrary is shown: a. all contracts are presumed to be legal b. all contracts are legal c. all contracts are illegal d. all contracts are presumed to be illegal A contract with a minor which is enforceable and binding on both parties is called: a. a valid contract b. a void contract c. a voidable contract d. a good contract A contract entered into by a corporation is enforceable: against the shareholders of the corporation against the corporation as an artificial person which has the legal capacity of an individual only if the contract is consistent with the corporation's constitution against the directors of the corporation

In the context of contract law, 'consideration' is defined as: a sum paid by one party for the other party's offer the act of considering the terms of a contract before agreeing to them the price paid by each party for the other party's promise or performance the monetary value of a contract Which of the following statements is the best description of 'fraudulent misrepresentation'? a false statement of fact made with the belief that it is true, which the other person relies upon and suffers loss a false statement of fact made knowingly, which the other person relies upon and suffers loss all of the options a false statement of fact made carelessly, which the other person relies upon and suffers loss

In Blomeley v Ryan: the court granted an order for specific performance against the farmer the court held that the farmer was so drunk that his judgment was seriously affected and this was known to Blomley, so that as a result he was not in a position to make a binding contract the court held that the farmer although drunk, still understood what he was doing and that as a result the contract was valid the court held that it would be unfair to enforce the contract against the farmer

Restraint of trade clauses are generally void at common law because they: discourage industry and enterprise and reduce competition deprive the public of the services of one of the parties injure one of the parties by reducing their means of earning a livelihood all of the options Which of the following is NOT one of the elements of promissory estoppel? it would be unconscionable to allow the promisor to go back on the promise the promise sought to be enforced is supported by consideration the promisee has relied on the promise the promisee has acted to their detriment on the basis of the promise

Contracts between which of the following parties will NOT be presumed to involve undue influence? between doctor and patient between parent and child between husband and wife between religious advisor and devotee In what circumstances will a person be able to repudiate a contract entered onto while intoxicated? where the person was so intoxicated that they were incapable of understanding the nature of the contract all of the options where the contract is not one for necessaries where the other party knew or should have known that the person was so intoxicated that they were incapable of understanding the nature of the contract Which of the following is the best description of 'unilateral mistake'? one of the parties is mistaken as to the nature of the document they have signed one of the parties is mistaken about a material fact regarding the subject matter of the contract, and the other party takes advantage of this mistake both parties have made the same mistake about the existence or the identity of the subject matter of the contract both parties are mistaken about a material fact regarding the subject matter of the contract In determining whether the parties to an agreement intended to form a contract, why do the courts so often rely upon legal presumptions? a. because the parties frequently lie about their intention b. because parties rarely express their intention c. because it is rare for both parties to have the same intention d. because that is the law Which of the following terms is also used to describe the common law? a. Case law. b. Precedent law. c. All of the options. d. Judge-made law.

Which of the following is NOT a requirement of a valid acceptance to an offer? the acceptance must be absolute and unqualified the acceptance must be strictly in accordance with the terms of the offer the acceptance must be expressed verbally or in writing the acceptance must be made in reliance on the offer For a contract to exist, the agreement must all of the options contain a commitment to undertaking to abide by the agreement contains promises made between two or more parties with the intent of creating enforceable legal rights and obligations contain a promise which is exchanged for something of value
The doctrine of promissory estoppel: a. all of the options b. can be used to commence a civil action and/or as a defence to a civil action c. can be used as a defence to a civil action, but not to commence a civil action d. can be used to commence a civil action but not as a defence to a civil action Which of the following is NOT a requirement of a valid consideration? a. The consideration must be possible b. the consideration must have some value c. the consideration must be adequate d. the consideration must be legal

If a term in a contract is rendered void by statute: a. the validity or otherwise of the remainder of the contract and of subsequent transactions depends upon the intent of the statute b. only the term in question is void, and the remainder of the contract is valid c. subsequent transactions directly related to the void term are themselves rendered void d. the whole contract is void

Which of the following statements is the best description of 'non est factum'? a. both parties have made the same mistake about the existence or identity of the subject matter of the contract b. both parties are mistaken about a material fact that is important to the subject matter of the contract c. one of the parties' to a contract is mistaken as to the nature of the document which they have signed d. one of the parties is mistaken about a material fact regarding the subject matter of the contract, and the other party takes advantage of this mistake Which of the following statements is the best description of a 'condition'? a. a term in a contract which must be satisfied before a contract can come into existence b. a term in a contract which provides that the contract will terminate on the happening of a particular event c. a term in a contract, the consequence of breach of which cannot be determined until after the breach has occurred and the seriousness of the effects of the breach cab be ascertained d. a term in a contract, non-performance of which may result in a rescission of the contract and/or damages to the plaintiff Which of the following statements is the best description of a 'warranty'?

a. a term in a contract which provides that the contract will terminate on the happening of a particular event b. a term which must be satisfied before a contract can come into existence c. a term in a contract not essential to the main purpose of the contract, non-performance of which will not entitle the plaintiff to rescind the contract d. a term in a contract, non-performance of which may result in a rescission of the contract and/or damages to the plaintiff

The most significant difference between a 'void' contract and an 'illegal' contract is that: a. money paid or property transferred under a void contract may be irrecoverable b. illegal contracts carry penalties for violation c. money paid or property transferred under an illegal contract may be irrecoverable d. a void contract will not be enforced by courts

When is a particular statement more likely to be a term of the contract than a mere representation? a. the statement was made with the intention of preventing the other party from finding any defects b. both parties placed considerable importance on the statement c. the other party was asked to check over and verify the statement d. a long time has passed between the making of the statement and the final agreement

Which of the following restraint of trade would NOT be likely to be valid? a. a restraint upon a solicitor from carrying on a business in the same city for one year after the sale of the practice b. a restraint upon a vendor of a business from carrying on a similar business within the same district in the next 3 years c. a restraint upon a vendor of a business from carrying on a similar business anywhere for the rest of his life d. a restraint upon an employee from divulging trade secrets

Which of the following statements is the best description of an 'innocent' misrepresentation? a. a false statement of fact made carelessly, which the other person relies upon and suffers loss b. all of the options c. a false statement of fact made with the belief that it is true, which the other person relies upon and suffers loss d. a false statement of fact made knowingly, which the other person relies upon and suffers loss

Which of the following statements is the best description of 'undue influence'?

a. the improper use of a position of influence or power to induce a contract b. the improper use of violence to induce a contract c. all of the options d. the improper use of superior bargaining position to induce a contract

Which of the following statements is the best description of 'unconscionability'? a. the improper use of position of influence or power to induce a contract b. the improper use of a superior bargaining position to induce a contract c. the improper use of violence and threats of violence to induce a contract d. all of the options

In which of the following cases did the court decide that provided a restraint of trade clause is reasonable it will not be void and unenforceable? a. Anderson Ltd v Daniel b. Public Service Employees Credit Union Cooperative Ltd v Champion c. Parkinson v College of Ambulance Ltd d. Nordenfelt v Maxim Nordenfelt Guns and Ammunition Company Ltd

Which of the following situations appear to involve 'undue influence'? a. a woman gave all of her property to the religious order of which she was a member b. an elderly Italian couple sign a mortgage in favour of a bank guaranteeing their son's debt, the bank manager knows the couple are unaware of the son's financial difficulties c. all of the options d. a man induces another to sign a contract by telling him that if he did not, he would report his son to the police for committing a criminal offence

A clause in a contract which provides that in the event of a dispute neither party may use the court system to resolve the dispute is: illegal at common law referred to as a 'restraint of trade' clause void at common law by its very nature incapable of being enforced by the courts In Commercial Bank of Australia v Amadio which of the following was NOT a reason why the bank was considered to have acted unconsionably? the bank was in a superior bargaining position and hence the Amadios were in a weaker bargaining position the bank exercised economic duress the bank took advantage of the Amadios' special disabilities the bank did not explain the real financial position of the son whom his parents were trying to help

A restraint of trade contract will be void if: the geographical extend of the restraint is too wide any of the options the time for which the restraint is to apply is too long the restraint does not apply to a proprietary interest of the person applying the restraint In which of the following situations is the plaintiff least likely to succeed in claiming unconscionability on the part of the defendant?

the plaintiff was elderly the plaintiff was illiterate the plaintiff sought independent legal advice the language of the transaction was complex