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April 2018

Coventry University London


216LON In-Class Test

Business Law for Hospitality and Tourism


Time allowed: 1 hour


Instructions to candidates

Answer all questions. Some questions allow you to select more than one

The paper consists of 30 questions which are worth a total of 40 marks

Grades will be awarded as a per centage of 100

Please write all your answers in the answer booklet provided.

This is a closed book test.

Calculators are not permitted.

Dictionaries are not permitted.

NOTE: You may NOT take this question paper away at the end of the
examination. Please leave it on the desk to be collected with your answer


Question 1 (1)
The English Legal System is stylised as a:
A. Civil Jurisdiction
B. Common Law System
C. Police State
D. Totalitarian Regime
o THE UK is a common law system built on a system of precedent and the doctrine of stare

Question 2 (1)
What is a statute?
A. An act of parliament
B. A delegated power
C. A Bill put before parliament
D. A private members bill
a. A statute is a bill that has been authorised by both houses of parliament and received Royal

Question 3 (1)
What does ‘stare decisis’ mean?
A. Decision is made based on legislation
B. Words said in passing
C. Decision is subject to approval
D. Let the decision stand
o Stare Decisis is a key stone of the UK constitution and underpins the notion of a precedential
system in which the law develops on a case-by-case basis

Question 4 (1)
What does ‘obiter dicta’ mean?
A. Stand by things decided
B. A decision made in a lower court which is not binding on the higher courts
C. Words said in passing
D. Legislation can still overturn earlier decisions
a. These are non-binding, yet persuasive, statements made by judges in a case


Question 5 (1)
Which of the following are the essential components of contract formation?
A. Offer, Acceptance, Invitation to Treat and Consideration
B. Invitation to Treat, Offer, Acceptance and Intention to create legal relations
C. Offer, Acceptance, Consideration and Intention to create legal relations
D. Intention to create legal relations, Invitation to treat, Acceptance and Consideration
o This includes the four legal necessary aspects of a binding contract. Whilst most contracts are
superseded with an invitation to treat this is not a legal requirement

Question 6 (1)
Which of the below statements best defines an offer?
A. A statement of one parties willingness to enter into negotiations with another party
B. An expression of one parties interests in contracting with another party on yet to be determined
C. A statement by one party of a willingness to enter into a contract on stated terms, provided that
these terms are, in turn, accepted by the party or parties to whom the offer is addressed
D. An intention to be bound to another party
a. C is the most relevant. Both A and B are missing the necessary terms of the contract to
describe an offer, and D relates only the intention

Question 7 (1)
Fisher v. Bell (1980) and Partridge v. Crittenden (1968) are leading cases in establishing which principle of
contract law?
A. Agreement
B. Past consideration
C. Invitation to treat
D. Intention to create legal relations
a. F v. B and P v. C have been discussed at length in class and lay out the clear differences
between a unilateral offer and an invitation to treat

Question 8 (1)
Which legal principles was adopted in the case of Adams v Lindsell (1818)?
A. The Ratio Rule
B. The Postal Rule
C. Counter-offers kill the original offer
D. That past consideration is not binding
o A v. L states that at the moment the letter is properly posted the agreement is complete as
per the postal rule


Question 9 (1)
Major terms of the contract which, ‘go to the root of the contract’ are defined as:
A. Conditions
B. Warranties
C. Representations
D. Mere Puff
o Conditions sit at the heart of the contract, whereas warranties are viewed as minor terms.
Representations sit outside of the contract and mere puff is unenforceable

Question 10 (1)
Often considered the birth of liability, in which case was the neighbour principle established?
A. Caparo v Dickman [1990]
B. Barnet v Chealsea & Kensington Hospital [1969]
C. Donoghue v Stevenson [1932]
D. Anns v Merton London Borough Council [1978]
a. Whilst the leading case in establishing liability in negligence is now Caparo, the birth of
liability outside of contract is still viewed as D v. S

Question 11 (1)
Which of the below cases established the requirements for a claim in psychiatric injury as a secondary
A. Donoghue v Stevenson (1932)
B. Paris v Stepney Borough Council (1951)
C. British Celanese v. A H Hunt Ltd (1969)
D. Alcock v. Chief Constable of South Yorkshire Police (1991)
a. This case followed the tragic events of Hillsborough and lays out the criteria for establishing
yourself as a secondary victim. D v. S is neighbourhood, P v. SBC refers to the severity of
damage and British Celanese relate to economic loss

Question 12 (1)
What is a ‘novus actus intervenien’?
A. An act which links together the chain of causation
B. An act which proves the damage would not have happened ‘but for’ the defendant’s actions
C. An intervening act which breaks the chain of causation
D. An intermittent duty of care
a. A simple Latin translation which shows when liability will be removed from one party and
onto another


Question 13 (1)
In order for an employer to be held Vicariously Liable for the actions of an employee the claimant must
prove what?
A. That the employee was not following their job description
B. That the employer was negligent
C. That the worker was employed, categorised as an employee and acting in the course of their
D. That the worker was in fact a self-employed sub-contractor and therefore responsible for their own
financial risk only
a. Anwer C encapsulates the two stage test required to establish VL usually found in RMC v.
MoP and the Salmond Test/L v. HH

Question 14 (1)
Which of the following is NOT a form of agency?
A. Actual
B. Superficial
C. Apparent
D. Watteau v. Fenwick
a. Actual agency is expressly created, apparent agency is formed through representations, and
W v. F relates to agency when the principle is unidentified. There is no such thing as
superficial agency

Question 15 (1)
In cases where the tortfeaser has a damaging effect on the claimants enjoyment of their land under which
cause of action would they bring a claim?
A. Negligence
B. Defamation
C. Private nuisance
D. Trespass
a. Negligence is not a land based tort and defamation refers to reputational damage. Tresspass
concerns physical interference with land, whereas Private nuisance concerns interference
with enjoyment

Question 16 (1)
In order to launch a successful claim in negligence, the victim needs to establish what?
A. That she was the victim of a careless act of the tortfeaser which left her with severe personal injuries
B. That he was owed a duty of care, which the tortfeaser breached. That there is a causal link
between the breach and the damage, and that the damage was foreseeable and not too remote
C. That she is his neighbour
D. That he was an unwilling participant in the tortfeasers actions and has suffered a loss due to those
o Answers A, C and D reflect the situation but miss out key legal aspects of the cause of action


Question 17 (2)
What remedies are available for a claim of either Fraudulent or Negligent misrepresentation? (You may
select more than one answer)
A. Rescission
B. Revenge
C. Damages under the tort of deceit
D. Indemnity
o Neither revenge of indemnity are forms of legal or equitable remedies. A and C are
contained in the Misrepresentation Act, 1967

Question 18 (3)
Which of the below are more commonly known as the Caparo Guidelines? (You may select more than one
A. That harm was reasonably foreseeable
B. That there was a relationship of proximity
C. That harm was caused between neighbours
D. That it is fair, just and reasonable to impose a duty of care
o C relates to the neighbourhood principle in D v. S and not the Caparo Test

Question 19 (3)
Which of the following will be taken into consideration when determining if a potential tortfeaser has fallen
below the expected standard of care? (You may select more than one answer)
A. The likelihood of harm
B. Subjective characteristics of the tortfeaser, such as incompetence
C. The seriousness of the injury
D. The importance of the activity
a. B is irrelevant as it relates to subjective characteristic and the law is always objective and

Question 20 (3)
Which of the following statements best describe the rationale for vicarious liability? (You may select more
than one answer)
A. Better chance for claimant to obtain compensation
B. Encourages good practice
C. Employers who profits should also bear loss
D. Employers are morally blameworthy
a. A, B and C are all considered as the rationale together. D is irrelevant as whilst employers may
be morally culpable we are looking at legal tests on this module


Question 21 (1)
In determining whether or not an individual should be considered as an employee the courts often rely on
the ‘Multiples Test’ as established in Ready Mixed Concrete v Ministry of Pensions (1968). Which of the
below statements are questions considered in the ‘Multiples Test’?
A. The employee agrees that for a wage he will provide own work & skills to perform services
B. The employee agrees that his performance will be subject to degree of control of employer
C. The provisions in the contract consistent with employer/employee relationship
D. All of the above
i. A, B and C in their entirety compose the Multiple Test

Question 22 (3)
Who of the following are typically involved in the tripartite relationship of agency? (You may select more
than one answer)
A. Agent
B. Principle
C. Solicitor
D. Third Party
a. Whilst a solicitor may act as an agent, they are not required to be in the relationship

Question 23 (1)
Colin places the following advert in the newspaper ‘FOR SALE: One Mini-Metro motor car, low mileage, one
owner from new, £500 or near offer. Contact: 07576885949933’. Mavis telephones Colin and tells him that
she is willing to pay £450 for the car.

Which of the following statements best describes the above scenario?

A. The advert placed by Colin is a unilateral offer to the world which Mavis has accepted orally
B. The advert placed by Colin is an invitation to treat and Mavis has made an offer
C. Mavis has responded to Colin’s offer with a counter-offer
D. Mavis and Colin are friends and therefore the courts will not recognise any agreements between
o The advert has to be considered an invitation to treat as it lacks specific details on the car
such as colour, level of specification and service history. The advert also specifically requests
offers, therefore even the price is not static enough to constitute an offer itself

Question 24 (1)
Colin places the following advert in the newspaper ‘FOR SALE: One Mini-Metro motor car, low mileage, one
owner from new, £500 or near offer. Contact: 07576885949933’ Terry contacts Colin and tells him that he
has been looking for a low-mileage Mini-Metro motor car for months. During the negotiations Colin tells
Terry that he, Colin, has been working in the motor industry for years and that he can guarantee that the car
has covered on 15,000 miles since new. Terry orally contracts to buy the car from Colin. Terry later discovers
that the car has in fact covered over 100,000 miles.


Which of the following statements best describes Terry’s legal claim against Colin?
A. Terry can sue Colin for breach of a term of the oral contract
B. Terry can sue Colin for a misrepresentation
C. Terry can sue Colin as he has breached a duty of care
D. Terry has no course of action due to the principle of ‘caveat emptor’
a. This would constitute a breach of a term. The statement is guaranteed and made by
somebody who has a superior knowledge

Question 25 (1)
The Fullerton Hotel has been planning a large summer party for the past six months and is expecting to
welcome a large number of guests and make a fabulous profit. The night before the party the hotel staff
stop working and set up an unattractive camp outside the hotel. When the hotel asks them to come back
inside and resume work they refuse to do so unless the hotel pays them £100 each. The hotels agrees and
the staff go back to work. After the party the hotel refuse to pay the staff. Which of the following statements
most accurately describes the legal position of the parties?
A. The staff can sue for breach of contract
B. The hotel can sack all of the staff
C. The hotel can refuse payment on the grounds of economic duress
D. The staff can sue for misrepresentation
a. The hotel were left with no freedom of choice in the situation and there was a clear
compulsion of will, therefore they can sue for duress

Question 26 (1)
Sinbad has been injured in a motorcycle accident caused by Token’s dangerous driving on a public road.
Token has admitted that he is responsible for causing the accident. Sinbad’s injuries are worse than they
would have been because he had not correctly fastened his crash helmet. Which of the following statements
most accurately reflects Sinbad’s claim against Token?
A. Sinbad can sue Token for the entirety of his injuries as he has fulfilled the Caparo Guidelines
B. Token does not owe Sinbad a duty of care as they are not contractually bound to each other
C. Sinbad can sue Token for damages, however they will be reduced under the principle of
contributory negligence
D. Sinbad should blackmail Token
a. Sinbad has contributed to his own downfall and therefore his claim will be reduced to reflect


Question 27 (2)
The Five Seasons Hotel in London employs several members of staff, many of whom have committed
tortious acts. Advise on which of the following cases the hotel may be held vicariously liable for: (You may
select more than once answer)
A. Amy, the barmaid, spills a drink all over a customer during her shift behind the bar
B. Marco, the bouncer, punches his brother in the face, during a family party at home
C. Spencer, who works at the kids club, sexually abuses one the hotel guests children at the kids
D. Wendy, the hotel accountant, steals £500 from the hotel safe
a. The question states that they are employed and therefore ‘course of employment’ needs to be considered.
Amy is clearly at work and Spencer’s job is so ‘closely connected’ that he also can be liable. The hotel is the
victim of Wendy’s act and therefore can’t sue itself and Marco is off on a ‘frolic of his own’

Question 28 (1)
Myra and Harold both work for ‘GO-West’, a children’s holiday club based in the North of England. Myra’s
role is to look after the children, whilst Harold is the maintenance man. Both are found to be abusing the
children. GO-West are found vicariously liable for Myra’s actions, whereas they are not for Harold. Why is
this the case?
A. Myra is a woman
B. Harold is a man and therefore has to take responsibility himself
C. Myra was under a contract ‘of’ service
D. Harold’s role is not ‘closely connected’ to the act
a. Under L v. HH Harold’s role is not closely connected enough to his act to impute liability. He
merely had opportunity

Question 29 (1)
In which of the following circumstances could the agency of necessity be claimed?
A. A finds a horse belonging to B. B cannot be found. A feeds B’s horse and then asks B for the money
for the food
B. A and B are friends. Whilst B is out of the room A sells all of B’s belongings to C
C. B sells all of A’s belongings because C says that she will kill him [B] unless he does so
D. A asks B to sell all of her belongings because she is moving to Austria
a. Answer A due to the real commercial emergency and the inability/ impossibility in finding the
horses owner (principle)

Question 30 (1)
The Royal Eastmoreland is a luxury resort hotel, renowned for its deluxe rooms, excellent service and
delightful food. Kirk has recently been dumped by the resort manageress and in revenge writes an article
stating that the food is terrible, the rooms are stuffy and the service is diabolical. If Kirk’s article is proven to
be untrue, which cause of action should the resort bring an action against him under?


o Libel
o Slander
o Character assassination
o Trespass to the person
o It is a claim for Libel as it has been written down and published, rather than just said

End of Paper.


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