1. technology and computing
2. computer certification

Corporate and
Business Law
(Hong Kong)
Specimen questions applicable from
December 2014
Time allowed: 2 hours
This is not a full specimen paper, it is a selection of
specimen
questions to give an indication of the style of the
This paper is divided into two sections:
questions. It includes five multiple choice questions and
one
multi
question.
Section
A – task
ALL 45
questions are compulsory and MUST be
attempted
The
fullBexam
the
following:
Section
– ALL will
FIVE consist
questionsofare
compulsory
and MUST be
Section A –attempted
45 multiple choice questions – 25 for 2 marks
each, and 20 for 1 mark each
Do NOT open this paper until instructed by the supervisor.
Section
B – Five 6 mark questions
You
must
NOT write
in your answer booklet until instructed by the
All questions
are compulsory.
supervisor.
To
see
an example
of the
specimen
exam,
please refer
to
This
question
paper must
notfull
be removed
from
the examination
hall.
the F4 (GLO) Specimen Paper.
The Association of Chartered Certified Accountants
Paper F4 (HKG)
Fundamentals Level – Skills Module
Section A – ALL 45 questions are compulsory and MUST be attempted
Note: Only five specimen questions provided. For full specimen exam, see F4 (GLO) Specimen paper
Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to
each multiple-choice question.
1
Which of the following is NOT a test in distinguishing a contract of service from a contract for services?
A
B
C
The integration test
The economic reality test
The reasonable man test
(1 mark)
2
In which court will a plaintiff commence an action for breach of contract for the sum of HK$60,000?
A
B
C
D
The
The
The
The
Magistrates’ Court
District Court
Court of First Instance of the High Court
Court of Appeal
(2 marks)
3
Beauty is a debtor of a limited company. The company has not been successful and a winding-up order has been
made against the company. Beauty now wants to repay the debt. However, she is not sure to whom the repayment
should be made.
To whom should a debtor of a limited liability company make repayment of the debt if the company is in the
process of liquidation?
A
B
C
D
The
The
The
The
creditors
directors
company
liquidator
(2 marks)
4
Lina and Kim are employees of Development Ltd and attend a party given by Contractor Ltd, a major contractor of
Development Ltd which has recently submitted a bid for a major contract. At the party, Lina is served with a meal
and Kim is given a mobile phone.
Which of the employees has/have committed the offence of bribery?
A
B
C
D
Both Lina and Kim
Lina only
Kim only
Neither Lina nor Kim
(2 marks)
2
5
Which of the following statements relating to a limited partnership is NOT correct?
A
B
C
D
They
They
They
They
are limited to a maximum of 20 members
must have a minimum of two members
must have at least one unlimited member
have a separate legal personality
(2 marks)
3
[P.T.O.
Section B – ALL FIVE questions are compulsory and MUST be attempted
Note: Only one specimen question provided. For full specimen exam, see F4 (GLO) Specimen paper.
Please write your answers to all parts of these questions on the lined pages within the Candidate Answer Booklet.
1
Last Monday, Brian, a computer shop owner, offered to sell his computer to Christina, a student, for HK$5,000.
Brian further promised Christina that he would wait for Christina’s reply until Sunday. On the same occasion,
considering Brian’s promise to wait for her reply, Christina told Brian that she would buy Brian a drink next week.
Without waiting for the reply from Christina, Brian sold the computer to another customer.
Required:
In relation to contract law:
(a) Explain whether there was a contract between Brian and Christina.
(4 marks)
(b) Assuming that there was a contract between Brian and Christina, explain the legal effect of Brian selling the
computer to another customer.
(2 marks)
(6 marks)
4
Answers
Fundamentals Level – Skills Module, Paper F4 (HKG)
Corporate and Business Law (Hong Kong)
Specimen Answers
Section A
1
2
3
4
5
C
B
D
C
D
Section B
1
(a)
For the formation of a contract, there must be an offer, acceptance, intention to create a legal relationship and an exchange
of consideration between the parties.
Two offers were made by Brian: one is the offer to sell the computer, which has not been accepted by Christina; and the other
is the promise to wait for Christina, which has been accepted by Christina.
There was an exchange of consideration between them, i.e., Brian’s promise to wait and Christina’s promise to buy Brian a
drink.
Hence, there was a contract between them under which Brian could not sell the computer to others before Sunday.
(b)
The legal effect of the sale is that it amounts to a breach of the contract by Brian. In such a case, Christina may claim against
Brian for any damages she suffers.
7
Fundamentals Level – Skills Module, Paper F4 (HKG)
Corporate and Business Law (Hong Kong)
Specimen Marking Scheme
Section A
1–5
One or two marks per question
Section B
1
(a)
3–4 marks for a complete explanation of why there was a contract.
1–2 marks for some understanding but lacking either application or explanation.
0 marks for no understanding of the substance of the question.
(b)
1 mark for stating that there is a breach and 1 mark for stating Christina’s right to claim for damages.
9