BUSINESS LAW AND COMMERCIAL LAW
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BUSINESS LAW AND COMMERCIAL LAW
TEST 1: PRACTICE QUESTIONS AND PREPARATION ADVICE
1. PREPARING FOR TEST 1
Using practice questions is a great way to prepare for Test 1, in addition to revising your
course materials and your own study notes.
However, practice questions are best used for revision purposes under self-imposed test
conditions. You will get limited or no benefit from simply reading practice questions and
then reading over answer guides. Instead, find a quiet space, give yourself a time limit, work
on your own, type out fully explained answers (in relation to the practice problem questions),
and use the resources that you plan to have with you in the test itself (noting that your test is
open access).
You are welcome to discuss these questions, and your attempted responses, in consultation
times. However, we will not indicate a hypothetical mark that any particular response would
have received. Note too, in the case of the problem question issues guides, that these are not
model answers. They are intended to summarise the content we would expect to see (and to
pose specific questions we would expect to see answered) in a response, but they are not in
the form that you would need to use in your own responses.
In addition to using these questions, your course materials, and your study notes, you might
also like to refer to our (optional) practice multiple choice questions and Skills Assistance for
Business Law materials found with your consolidation activities each week on Moodle.
Relevantly for Test 1, your Skills Assistance for Business Law materials provide assistance in
relation to note-taking, and also in relation to answering an additional hypothetical legal
problem question.
Best of luck with your studies! Your practice questions begin on the next page.
2. PRACTICE MULTIPLE CHOICE QUESTIONS
The Australian legal system
1. The Commonwealth of Australia Constitution Act 1900 was important because it:
A. Ended all legal and political ties between Australia and England, and abolished appeals to
the English courts from State and Commonwealth courts.
B. Granted all law‐making powers to the Queen, with the vesting of absolute authority in the
Commonwealth Governor‐General and in the State Governors.
C. Created the Commonwealth of Australia, and left the States (formerly colonies) as self‐
governing political units with their own constitutions, parliaments, and courts.
D. Created freedom of trade between Australia and the British Commonwealth of nations.
2. Statutory law is a type of law made by:
A. The State and Territory Parliaments, and the Commonwealth Parliament, subject to limits
in their constitutions.
B. All State and Territory and Commonwealth courts.
C. The Prime Minister, and cabinet.
D. The Commonwealth, State, and Territory courts, together with the Commonwealth, State,
and Territory parliaments.
3. Most of the legislative powers of the Commonwealth Parliament are concurrent powers.
However, there are a limited number of exclusive powers. This means that in those limited
areas:
A. The Commonwealth Parliament only can legislate, rather than the State or Territory
parliaments.
B. The State and Territory parliaments only can legislate, to the exclusion of the
Commonwealth parliament.
C. The Commonwealth Parliament, and the State and Territory parliaments, can all make
laws at the same time (provided that they are not inconsistent).
D. The State and Territory parliaments can make laws in certain areas, but only after
obtaining the permission of the Commonwealth Parliament to do so.
4. The doctrine of precedent relates to the ratio decidendi of a case. This Latin phrase refers
to:
A. All of the evidence and facts presented during a court case, which have been recorded by a
court’s official.
B. Identification of whether the case involves civil law, or criminal law.
C. Comments and statements made by the judge or magistrate during the conduct of the case.
D. The reasons for the court’s decision.
5. The rule of law:
A. Is an important feature of Australia’s legal system, however it is of no relevance to the
conduct of business.
B. Is an important feature of Australia’s legal system, however is of limited relevance to the
business world.
C. Is important for the conduct of business, as it ensures that all people and companies are
subject to the law, creating the conditions necessary for business to flourish.
D. Is a key feature of all legal systems around the world.
6. Where an act is both a crime and a tort (civil wrong):
A. The offender may only be prosecuted for the crime.
B. The State may prosecute the offender for the crime, and the victim may bring a civil
action.