ICAEW ACA Certificate Level – Law Practice Test

These questions are part of the practice quiz. Start practicing

• What happens to an individual once a bankruptcy order is passed?
• What allows a company to freely sell its assets before crystallization under a floating charge?
• Which principle applies if an agent performs their existing statutory duty?
• What defines an unenforceable contract?
• Which of the following describes a penalty clause?
• Which of the following is a type of void contract?
• What is the required notice period for a general meeting unless 90% of members agree to less?
• What initiates the process of bankruptcy proceedings?
• If granted, how long does trademark protection last?
• What is true about redeemable shares in terms of funding?
• Which of the following is an example of automatically unfair dismissal?
• What must public companies do if there is a 'serious loss of capital'?
• How must subscribers pay for shares in a public company?
• What constitutes involvement in money laundering?
• What distinguishes receivership from liquidation?
• What type of consideration can be used for shares payment in a public company?
• What does the defense of contributory negligence imply?
• What type of shares may private companies have?
• What is an invitation to treat?
• What is one implication of being employed as opposed to being self-employed?
• What type of dismissal does not require the employee to have two years of service?
• What occurs if a partner is expelled by majority decision in a partnership?
• What must the claimant prove in a negligence case?
• What is an important feature of a partnership agreement?
• For the subdivision or consolidation of shares, which resolution is required?
• Who is considered a de facto director?
• What is the primary aim of an administration process?
• What initiates a Compulsory Liquidation?
• What does failure to comply with MLR essentially result in?
• What is the maximum period of disqualification for a director convicted of a serious offence?
• What is a void contract?
• When does an individual typically declare bankruptcy?
• What characterizes a floating charge?
• Who is liable for contracts made on behalf of a company before its registration?
• A shadow director is not considered as such if:
• How can directors be appointed to a company?
• What is a fixed charge related to loan capital?
• What is the minimum percentage of shareholders required to object to a variation of class rights?
• What must a private company obtain to reduce its share capital?
• What type of companies are limited by shares according to the given information?
• What triggers the need for a general meeting to be held?
• Which statement regarding debentures is true?
• Fraud by failing to disclose information requires what condition?
• Which type of interest assesses what the claimant lost due to reliance on contract performance?
• Under general company law, who can bring an action for negligence against a director?
• What is a common financial implication for employees as compared to self-employed individuals?
• Which of the following describes equitable remedies?
• Which right ensures an agent is reimbursed for expenses incurred while performing their duties?
• What is the priority order of charges when comparing a fixed and floating charge?
• What characterizes a summary dismissal?
• Which of the following is a requirement for quoted companies?
• What type of consideration involves a promise to perform an act in the future?
• What must PLCs obtain before commencing trade?
• What is a receivership?
• What does a webcam manager do?
• When valuing unliquidated damages, what does remoteness refer to?
• What is the legal effect of articles of association?
• What level of consent is typically necessary for significant corporate changes like reimbursement decisions?
• What characterizes a general partnership?
• How can gaps in express terms of a contract be filled?
• A director may be disqualified for up to how many years for persistent breach of the Companies Act 2006?
• Which of the following indicates a lack of free will in a contract?
• What type of agreement may a retiring partner enter into with remaining partners?
• What initial duration does a short moratorium last for when proposing a CVA?
• Which of the following is not a case law example for lifting the veil of incorporation?
• What type of intellectual property automatically lasts for 70 years once created?
• How is the minimum legal notice period adjusted for each additional complete year of service until reaching 12 years of continuous employment?
• What might a trustee require from creditors in a bankruptcy scenario?
• What must be demonstrated to show that a loss is not too remote for a claim?
• What is the primary condition for granting a re-engagement remedy?
• Which best describes a shadow director?
• What is required for an offer to be accepted?
• When comparing fixed and floating charges, which must be registered first to maintain priority?
• What is a characteristic of liquidated damages?
• Which resolution type is typically needed for matters requiring member consensus without special provisions?
• Under which circumstances may a lower level of care be accepted?
• What is keylogging used to track?
• What type of statement must a private company file when reducing share capital?
• Which statement about the Computer Misuse Act is correct?
• Who can make an offer?
• What type of resolution is generally needed for changes affecting the rights of shareholders?
• What is a potential outcome of unauthorized access to computer material?
• What does the principle of data minimization refer to?
• To defeat a special resolution, which percentage of members is required?
• What is considered a qualifying disclosure in the context of whistleblowing?
• Which of the following is NOT an essential element of a contract?
• What three criteria must be satisfied for a duty of care to exist?
• What can minority members holding 15% or more of shares apply for?
• What is one of the exceptions to the principle of privity of contract?
• What is the minimum notice period required for an AGM unless all members agree to a shorter notice?
• What is required for directors to issue or allot shares?
• What rights do data subjects have regarding automated decision-making?
• How can articles of association be changed?
• What is the primary responsibility of a data processor?
• What denotes a Creditors Voluntary Liquidation?
• What is the resolution required to initiate voluntary liquidation?
• What is a class meeting primarily concerned with?
• In what situation must a company that has an NV below £50,000 re-register?
• What captures fraud by abuse of position?
• Which factor does NOT qualify an employee for redundancy payment?
• What standard is used to judge breach of duty in negligence cases?
• What can lead to ostensible authority of a director?
• What is the remedy of reinstatement in the context of unfair dismissal?
• What determines a shareholder's voting rights?
• What type of rights does a shareholder hold depending on the class of shares?
• What is loan capital primarily represented by?
• What must happen after creditors review a proposal in an IVA?
• What type of director is expected to work full time in management?
• What is the consequence of an employee being guilty of misconduct in relation to redundancy?
• What does "class rights" refer to?
• What do unliquidated damages refer to in a legal context?
• Who is owed a duty of care according to negligence principles?
• When can acceptance be inferred from conduct?
• Changing the class rights of shares requires what proportion of that class's approval?
• What is the definition of acceptance in contract law?
• What is meant by issued share capital?
• What must a member prove to bring a derivative action on behalf of a company?
• What is the minimum notice period required for employees with over 12 years of continuous employment?
• When can a person be liable for criminal property concealment?
• What is required for non-cash consideration for shares?
• What defines a de jure director?
• What is the role of a company secretary in a public limited company (PLC)?
• What type of trading can lead to disqualification of a director in public interest?
• What does the phrase "act in good faith for the benefit of members as a whole" imply about a director's duties?
• What document is affiliated with a solvent company regarding its financial status?
• What happens if shares are issued at a discount on nominal value?
• What qualifies as insider information?
• What kind of resolutions can shareholders use to appoint directors?
• What is the primary goal of bankruptcy?
• What outcome occurs if a company issues shares below nominal value?
• What must a petitioner prove when applying to the courts regarding class rights variation?
• Who has the authority to bind all partners in a contract within a partnership?
• Which of the following is an implied term in the employment relationship related to the employee's conduct?
• Which resolution is required for the appointment of a director?
• What type of resolution is required to utilize a permissible capital payment?
• What type of resolution is commonly used in corporate governance for various director-related decisions?
• Which of the following can be a defense for insider trading?
• What is the time frame in which a company must notify the Registrar of new director appointments or changes?
• In a Members Voluntary Liquidation, what do shareholders decide to do?
• What constitutes a special resolution?
• Under which type of contract does an employee typically operate?
• What is the purpose of a class meeting?
• Which of the following is NOT part of the strategic report in record keeping?
• What is a bonus issue of shares?
• What occurs if a whistleblowing disclosure is not made in good faith?
• What must exclusion clauses pass to limit or exclude liability?
• Which of the following is a characteristic of self-employed individuals?
• What responsibility does a retiring partner have regarding their liability?
• What type of resolution is necessary for voluntary liquidation if specified in the articles?
• Which of the following is NOT one of the three elements that make up a compensation remedy?
• What type of liability does an undisclosed principal face?
• When is a higher level of care typically required?
• What is one of the rights concerning data subjects’ control over their personal data?
• What does file hijacking entail?
• Under what circumstance can courts lift the veil of incorporation?
• What type of resolution is required for voluntary liquidation if not provided for in the articles?
• What is phishing primarily used for?
• What happens at an AGM regarding board positions?
• What type of resolution is necessary for a new issue of shares?
• For an employee with 2 years of continuous employment, what is the minimum legal notice period?
• Under what condition will a court grant an action for just and equitable winding up?
• Which of the following best describes wrongful trading?
• What does it mean when a right is referred to as "entrenched"?
• Which of the following is considered not good consideration?
• Which resolution is required to apply for the appointment of an administrator?
• What does a moratorium in administration imply?
• What type of resolution is required for the approval of a Company Voluntary Arrangement (CVA) by members?
• Which of the following is NOT an implied term from common law regarding an employer's duties?
• Which of the following is NOT a method for terminating an offer?
• What liability do disqualified directors hold in relation to the veil of incorporation?
• How can a court respond to a breach of directors' duties?
• A data processor is responsible for which of the following tasks?
• When can creditors' proposals be considered accepted in the deemed consent process?
• What is an example of vicarious liability?
• What happens to a floating charge when certain events occur?
• What is the voting status of a debenture holder in a company?
• Which entity is appointed to manage a Compulsory Liquidation?
• What is required for a consideration to be deemed good?
• What is the definition of shares issued at a premium?
• What financing source is required for a private company's redemption of its own shares?
• What is the primary focus of accountability in data protection principles?
• What must parties do regarding their losses according to contractual obligations?
• What does unpaid capital refer to?
• Which tests determine if a party owes a duty of care?
• Who can appoint an administrator?
• Which type of breach occurs before the time performance is due?
• What type of contract grants rights like redundancy pay and statutory protection?
• What type of resolution is necessary for the reduction of share capital?
• What does discharge of contract by performance entail?
• In what scenario can a claimant recover purely financial losses?
• What is a statutory example that might lead the veil of incorporation to be lifted?
• Which of the following statements is true regarding implied terms from legislation for employers?
• Approval for an ordinary resolution requires what level of agreement?
• How should profits be divided in a partnership if no agreement exists?
• What is the main purpose of damages in negligence claims?
• What is a requirement for implied terms in an employment contract related to the employee's duties?
• What does a failure of condition refer to in contract termination?
• What is a Company Voluntary Arrangement (CVA)?
• Which of the following is a power granted to company members regarding service contracts?
• What constitutes a substantial property transaction under company law?
• A member with minority protection rights can do which of the following?
• What does the offence of bribery include?
• Dividends must be paid out of which type of profits?
• What is a characteristic feature of copyright protection?
• What is required for a limited company to re-register as an unlimited company?
• Which of the following is NOT a characteristic of automatically unfair dismissal?
• What is required for a public company to reduce its share capital?
• What is a key characteristic of an Approved CVA?
• What characterizes a debenture as a form of loan capital?
• Which of the following is NOT considered a bribery offence?
• Lawfulness, fairness, and transparency are part of which data protection component?
• What are ordinary shares known for?
• In liquidation, when do shareholders receive their repayments?
• What role do exclusion clauses play in a contract?
• What happens when an offer lapses?
• What is the notice requirement for a class meeting?
• What is the duration of protection for design rights?
• What does called up capital refer to in a company?
• Who approves a proposed Company Voluntary Arrangement (CVA)?
• Under what condition is a disclosed principal liable for acts committed by the agent?
• What test do courts typically apply to determine causation in negligence cases?
• What is a qualifying floating charge holder (QFCH)?
• What allows a promoter to avoid issuance of certain contracts?
• What does the principle of volenti non fit injuria signify?
• What is the significance of the earliest register for equal charges?
• Which situation applies when a company enters administration?
• What does 'sufficient proximity' refer to in determining duty of care?
• What is a key aspect of ordinary shares compared to preference shares?
• What happens to all liabilities in an IVA upon successful completion?
• What happens if a special resolution to change class rights is deemed "unfairly prejudicial"?
• What defines an insider in insider dealing?
• What does a debenture provide?
• How is the liability of a new partner in a partnership defined?
• When is a special resolution required in the re-registration of a company from unlimited to limited?
• What is the first step in the process of an Individual Voluntary Arrangement?
• What is the primary role of a receiver?
• What does the notice for a general meeting require if it is not adhered to by 90% of the members?
• Which of the following rights allows individuals to gain access to their personal data held by organizations?
• How are dividends typically paid to shareholders?
• In a sole trader business structure, who is responsible for the business debts?
• Who typically ensures meeting procedures are followed?
• What type of authority is given to directors through articles or meetings?
• What distinguishes an executive director from others?
• What does public policy influence in terms of duty of care?
• What is necessary for a company to provide financial assistance for the purchase of its own shares?
• Which of the following describes preference shares?
• How long is the protection of patents if granted?
• What does the term 'veil of incorporation' refer to?
• What is the maximum punishment for someone found guilty of bribery?
• How is fraud defined in a legal context?
• What is the primary purpose of fraudulent trading?
• Who determines the business to be conducted at a general meeting?
• Which type of capital refers to the creditor's right to receive interest?
• What type of resolution is needed to change a company's name?
• What constitutes an offence under the category of other offences of fraud?
• What is the primary purpose of the Computer Misuse Act 1990?
• How long does trademark protection last if granted?
• Which doctrine allows negligence to be inferred simply because an event occurred?
• What are pre-emption rights concerning shares?
• What is the role of an alternate director?
• What is a characteristic of contracts of employment during administration?
• Which type of intellectual property protection lasts for 25 years when granted?
• Which of the following is NOT a reason for the removal of a director?
• What is the required minimum paid-up nominal value for shares in a public company?
• Which of the following is a consequence of being in administration?
• What is the primary responsibility of a managing director (MD)?
• What are the types of injunctions known as?
• What must an employer prove to avoid a finding of unfair dismissal?
• What is a requirement for admitting new partners to a partnership without a formal agreement?
• In the event of liquidation, shareholders have what kind of claim?
• According to MLR 2017, when must a relevant person carry out Customer Due Diligence (CDD) measures?
• Dividends to shareholders are dependent on what factor?
• What does a screenshot manager do?
• What year was the Computer Misuse Act enacted?
• What is a rights issue of shares?
• What is defined as paid-up capital?
• What is the primary feature of redeemable shares?
• Which of the following indicates wrongdoing in a fraud context?
• Who has the authority to appoint a receiver?
• Insider dealing primarily involves what illegal activity?
• Removing a director requires which type of resolution with special notice?
• What does 'freedom to delegate' indicate about self-employment?
• Under what condition can an employee be entitled to redundancy payment?
• What is an essential feature of a share regarding its obligations?
• What constitutes insider dealing?
• Which right allows individuals to be informed about the processing of their personal data?
• What resolution is needed for the redemption of redeemable shares?
• What is the consequence of failing to report money laundering?
• What right do members of a company have regarding annual accounts?
• Which feature commonly indicates a voidable contract?
• What role does a data controller fulfill?
• What type of agent has explicitly given authority in a written or oral agreement?
• Fraud by false representation involves:
• What is a consequence of the veil of incorporation?
• What kind of succession applies to a company under the veil of incorporation?
• Which party usually has the burden of proof to show breach in a negligence case?
• What is unique about a written resolution?
• What is the liability status of all partners in a partnership regarding debts?
• What is a key factor in determining the fairness of a dismissal?
• What is the minimum legal notice period required for an employee with 1 month of continuous employment?
• What does a share represent in a company?
• What action can a court take in cases of unfairly prejudicial conduct?
• An ad clicker directs a user's computer to do what?
• What is one reason a court might refuse to grant a just and equitable winding up?
• Under what condition must acceptance be communicated to the offeror?
• What is a necessary document for private companies when reducing share capital?
• What must a member prove in order to bring a claim for unfairly prejudicial conduct?
• Who can be held liable under vicarious liability?
• What is a characteristic of board meetings led by a chairman?
• When is an ordinary resolution required?
• What does a promoter owe to the company when making pre-incorporation agreements?
• What consequence may a director face for breaching their duties?
• Which of the following factors would NOT contribute to a fair dismissal?
• What is one requirement for directors when proposing actions under insolvency law?
• Which statement is true about criminal liability in fraudulent trading?
• Which of the following is an offence outlined in the Computer Misuse Act?
• Which of the following is a fair reason for dismissal proposed by the employer?
• What must directors avoid to ensure compliance with their duties?
• What is a significant factor in assessing wrongful trading?
• Which document is NOT required during the formation of a company?
• What does it mean for a contract to be in “privity”?
• Which document is necessary for a public company when reducing share capital?
• What is the requirement for passing a written resolution in a private company?
• In the deemed consent process, what is the threshold for creditors to object to the proposals?
• During liquidation, what is the repayment priority of a debenture?
• What is an Individual Voluntary Arrangement (IVA) primarily used for?
• Which of the following is considered normal business at an AGM?
• Which of the following actions is a breach of a director's duty?
• In an unfair dismissal claim, what must the employee demonstrate regarding their service?
• Which type of resolution is needed for the change of articles of association unless entrenched?
• What must companies report regarding their engagement with stakeholders?
• Which of the following is a vital aspect of the employee-employer relationship according to contract terms?
• Which of the following is a defense against insider dealing?
• What does the right to erasure entail for data subjects?
• What does the expectation interest measure in unliquidated damages?
• In which type of relationship is there a presumption of no intention to create legal relations?
• Which of the following is NOT one of the data protection principles?
• What is one of the primary duties of an agent?
• Which power allows members to appoint a proxy?
• In the case of share redemption, which resolution is typically required?
• What is meant by the term 'moratorium' in this context?
• What is one of the rights of an employee when claiming wrongful dismissal?
• What records must a company keep according to the provided text?
• What should a student do if potential criminal activity is suggested?
• What does a voidable contract allow?
• What protections do workers have when making a whistleblowing disclosure?
• What can occur if an employer does not act reasonably in the dismissal procedure?
• What document must Limited Liability Partnerships (LLPs) submit to be formally recognized?
• Which right allows individuals to request to limit the processing of their personal data?
• What type of resolution is needed to appoint an auditor?
• Which term describes a person's entitlement to written particulars within two months of starting employment?
• To ratify a breach of duty by directors, what type of resolution is required?
• What is needed for changing a company's articles of association if there are entrenched provisions?
• What describes a non-executive director (NED)?
• What could be an implication of lifting the veil of incorporation regarding fraudulent trading?
• Can debentures be issued at a discount?
• Which element of data protection principles emphasizes responsible handling of personal data?
• What feature distinguishes a limited liability company regarding property ownership?
• What does implied authority of directors refer to?
• According to the Companies Act 2006, what is one of the duties of directors?
• What could help a company avoid liability for bribery?
• What is a key feature of an unenforceable contract?
• If a company suffers harm, who is generally responsible for bringing action?
• What is the main characteristic of loan capital?
• Which term is used to describe contractual terms that are specifically agreed upon?
• What type of resolution is needed for the removal of an auditor?
• Which of the following is a feature of a Limited Liability Partnership (LLP)?
• Which of the following is true about cumulative dividends for preference shares?
• In the event that a company fails to prevent bribery, what is its liability?
• What is an example of discharge of contract by frustration?
• What might some articles state regarding the appointment of an alternate director?
• Which of the following is NOT a basis for the creation of agency?
• What action should relevant persons take if they suspect money laundering?
• What does the term “forbearance” in contract law refer to?
• Which aspect applies to a PLC's requirement for a company secretary?
• For the disapplication of statutory pre-emption rights, what type of resolution is needed?
• What is one condition for a claim of breach of duty to be valid?
• What is typically the first document issued after the registrar checks the formation documents?
• Which of the following can a member with at least 5% of a company's shares do?
• How often must public companies hold an Annual General Meeting (AGM)?
• What is one of the main components of the right to data portability?
• Who is a data subject?
• How long does a charge have to be registered to maintain priority if rival charges exist?
• What does an offer represent in a contract?
• What is the usual remedy for wrongful dismissal?
• Which authority is defined as being given to directors based on their recognized capacity within the company?
• Which right allows individuals to request the correction of their personal data?
• What is the role of the trustee in a bankruptcy?
• What does money laundering involve?