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CIMA BA4 Exam Syllabus Topics:

CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. Which of the following is correct in relation to Section 14 of the Sale of Goods Act 1979 which implies a term into contracts for the sale of goods that the goods supplied will be of "satisfactory quality." (i) A breach of Section 14 enables the innocent buyer to cancel the contract and claim damages.
(ii) The parties to a contract for the sale of goods can choose to exclude Section 14.
(iii) Section 14 applies to contracts for the sale of new goods only and does not apply to sales of second- hand goods

A) (i) only
B) (ii) and (iii) only
C) (i) and (ii) only
D) (ii) only

2. Which of the following statements is correct in relation to a misrepresentation?

A) A person selling goods may be hekJ liable in misrepresentation if he or she remains silent during the negotiations and fails to correct any misunderstandings on the part of the buyer
B) If one person attempts to persuade another to enter into a contract by misrepresenting the facts, the intended victim will have a remedy, unless the misrepresentation did not induce the intended victim to contract
C) If a person can show that he or she was induced to contract by a misrepresentation then a court must grant a remedy, irrespective of the time taken to commence the action against the misrepresents.
D) A misrepresentation is a false statement of fact or opinion made by one person to another before a contract is formed and which causes the contract to be automatically cancelled

3. Which of the following statements apply to multinational corporations? Select ALL that apply.

A) Financial statements will need to be prepared in different ways in different countries.
B) The company's investors will find it difficult to interpret and compare results.
C) Expanding into new markets will be more difficult due to potential bureaucracy.
D) Administrative burden and compliance costs will be reduced.
E) Assessment of other companies will be easier to do.

4. In relation to conditions and warranties, which of the following statements is correct?

A) A warranty may be implied into a contract on the basis of a trade custom.
B) A breach of a warranty entitles the party not in breach to cancel the contract
C) To be effective a condition must be expressed in the contract
D) A breach of a condition entitles the party not in breach to claim damages only

5. As a general rule, what period of continuous employment is required before a person can make a claim for unfair dismissal?

A) at least 2 years
B) at least 9 months
C) at least 3 years
D) at least 6 months

Solutions: