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LAWS7023 Practice Exam
For you as a student this means:
completing your assessment tasks, whether face-to-face or online, in an honest, fair and
trustworthy manner;
acting responsibly, based on your lecturer or tutor’s instructions, and not giving or receiving
any unauthorised assistance to others in completing assessment tasks;
commitment to act honestly and refusing to take any action that would break trust with your
peers and lecturer/tutor.
By undertaking this online assessment you will be deemed to have acknowledged UQ’s Academic
Integrity Pledge (above) and to have made the following declaration:
“I certify that my submitted answers are entirely my own work, that I have only used the permitted
resources detailed on the course site in completing this assessment item, and that I have neither
given nor received any unauthorised assistance on this assessment item”.
Instructions to Students
This is a timed open book online invigilated exam. You are not permitted to use any
electronic device other than the computer that you use to sit this exam. You must abide by
the requirements to sit an Inspera exam that are available on the course site on Blackboard.
Answer all questions.
Duration is 120 minutes plus 10 minutes planning time.
There is NO additional 15 minutes of upload time as the exam submits instantly when you
press ‘Submit now’ (on the last page of the exam).
At the end of the total exam duration, you must press ‘Submit now’ to submit your exam. If
you complete your exam before the end of the exam duration and submit, you cannot return
to your exam to update answers or make any amendments, even if you do so before the
end of the total exam duration. Submitting your exam is final.
If you are still working at the end of the total exam duration, you will be taken to the summary
page and prompted to ‘Submit now’. You will not be able to keep writing or modify your
answers once the time for the exam period has elapsed.
LAWS7023 2022 S1 Practice Exam
2/5
Please Note: The following is a suggested example for giving students
reflection and to assist them with their final exam preparation. It is not a
guarantee as to the format or size of any questions that will be in the final
exam, nor the actual questions that will be in the Final Exam nor as to any
areas of Corporations Law that will be examined in the Final Exam. All subject
matter relating to the Corporate Law part of the course, including lectures,
tutorials, lecture ppts etc from Teaching Weeks 7, 8, 9, 10 and 11, are potentially
examinable.
LAWS7023 - TW12 - PRACTICE SHORT ANSWER QUESTION
Olga, Tony and Henry are the three directors of Jones Pty Ltd (“Jones”) which
employs 200 people and manufactures car parts at a factory in Brisbane. Olga, Tony
and Henry are also shareholders in Jones and Olga is also an employee of Jones as
she is also the chief marketing officer. The directors have the power Under the IGR’s
to make decisions to manage the company business since it adopted s198A RR of
the CA. For the past three years the board has known that the factory is deteriorating
and could pose a health and safety risk to people who work there. In May 2022, the
board discusses whether or not Jones should spend $250,000 on upgrading the
factory to make it safer for people to work in and to reduce the chance of employees
being injured. The board decides that this cost is too expensive compared to the
company’s plans to spend money on growing the company business in 2022 and
decides to post-pone this expenditure and the upgrades until after 30 June 2023.
Three days later, Olga is walking through the factory and the floor collapses beneath
her, resulting in her suffering a sprained ankle. It is discovered that the floor was old
and needed replacing at least 1 year ago. Olga wants to sue Jones for her injury.
However, Tony and Henry refuse to pay Olga damages because they believe that as
Olga is a director of the company, she had the power to make decisions that could
have made the factory safer. They say” Its your own fault you got injured. Plus you
cannot sue the company anyway because companies don’t really exist”. Olga gets
angry and says “No way. I’m taking action against the company under the
constitution for infringement of my rights as a shareholder”.
LAWS7023 2022 S1 Practice Exam
3/5
1 LAWS7023 2022 S1 Practice Exam Question 1
The following task relate to scenario to the left.
Advise all parties as to any legal actions and/or defences they may have under Corporate
Law.
Provide Short Answer paragraphs to answer this question - Do not use ILAC to answer this
question.
Type your answer here
Format Σ
Words: 0
Maximum marks: 12.5
LAWS7023 2022 S1 Practice Exam
4/5
Please Note: The following is a suggested example for giving students
reflection and to assist them with their final exam preparation. It is not a
guarantee as to the format or size of any questions that will be in the final
exam, nor the actual questions that will be in the Final Exam nor as to any
areas of Corporations Law that will be examined in the Final Exam. All subject
matter relating to the Corporate Law part of the course, including lectures,
tutorials, lecture ppts etc from Teaching Weeks 7, 8, 9, 10 and 11, are potentially
examinable.
LAWS7023 - TW12 - PRACTICE ILAC QUESTION
HindMost Ltd (HM) is a public company which operates a residential and
commercial construction and building business in Brisbane. Its board of directors
consists of William, Henry, Edward and Charles. HM has around 4,000 shareholders
and each of the four directors also hold shares in HM.
Charles has also been appointed as the company’s chief financial director for the
past two years and has power in the IGR’s to make financial decisions on behalf of
HM for the financial benefit of the company. The following events occur:
Charles enters into enters into negotiations with a local newspaper called ‘The
Daily News’ for the company to purchase 12 months of advertising in the
newspaper. The advertisements will promote HM’s residential and commercial
building business to potential customers;
Charles discovers that price payable by HM to the Daily News will be twice as
high as the comparable market rate for such advertising in other newspapers.
The Daily News then tells Charles that if HM enters into this contract, the Daily
News would provide Charles and his family with a free all expenses paid
holiday in Sydney for two weeks;
Charles then signs a contract on behalf of HM for the purchase of 12 months
of advertising with the Daily News. Charles does not inform the board of
directors about this contract before signing it;
One month later, the company account prepares a report on HM’s current
financial position and gives it to Charles for his approval before Charles
submits it to the board. The report states that HM should not build any new
commercial buildings for the next three months because they will not be
profitable;
Charles then signs a contract on behalf of HM with the Queensland State
Government to build a new commercial office building in Brisbane. Charles
does not read the report, does not submit the report to the board and does not
inform the board of directors about this contract before signing the contract
with the State Government.