QUESTION: 73

T, a Sales Representative of E plc, made an appointment to see you in the hope of persuading you to place a substantial order with E plc. During your discussions, T suggested that you could qualify for a cash bonus in the event of an order being placed.

Which of the following is correct?

(i) Placing an order in these circumstances will place you in breach of your employment and professional obligations.

(ii) If the goods are what your company requires and are priced competitively, you are acting correctly in placing an order and qualifying for the cash bonus.

(iii) You have been placed in a conflict of interest situation and you should not proceed to place an order.

(i) only
(i) and (iii) only
(ii) only
(iii) only

Answer(s): B

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QUESTION: 74

Tom is a director of XYZ Ltd. The company is considering purchasing Tom's business for £200,000. Which of the following is incorrect?

Tom cannot contract with XYZ Ltd as he would be placing himself in a conflict of interest and duty situation.
Tom must formally disclose his interest in the contract to the board.
The shareholders may approve the arrangement by passing an ordinary resolution.
The purchase consideration may be in the form of cash or shares.

Answer(s): A

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QUESTION: 75

Which of the following is incorrect?

An Act of Parliament is a superior source of law to a decision of the Supreme Court.
A decision of the Supreme Court is a superior source of law to a decision of the High Court.
Where there is a conflict between equity and the common law, the common law prevails.
Where there is a conflict between English Law and European Law, European Law prevails.

Answer(s): C

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QUESTION: 76

You work for a manufacturing company and are told that one of the line managers made a genuine mistake that led to the discharge of waste material into a local river. Your managing director says that the company cannot afford a large fine and demands that no one reports the waste spillage or mentions it again. Is this an ethical issue and why?

Yes - but only if the waste causes damage to the local environment
Yes - the manager who created the spill has behaved unethically and should be disciplined
Yes - the company has a duty to report something that might breach environmental legislation and could cause environmental damage
No - the leak was a mistake, so this is not an ethical issue

Answer(s): C

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QUESTION: 73

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QUESTION: 76