Legal Aspects of Business
Commerce · 50 practice questions
Meaning and validity of a simple contract; Agency, the Sale of Goods Act and Hire Purchase Act; contract of employment; government regulation of business (registration, patents, trademarks, copyrights); consumer protection (government legislation, Standards Organization, Trade Descriptions Act, Consumer Protection Council, NAFDAC, NDLEA, Customs and Excise) and regulatory agencies.
- Analyse the elements and validity of a simple contract.
- Examine Agency, the Sale of Goods Act and Hire Purchase Act.
- Assess the rights and obligations of employers and employees.
- Distinguish between patents, trademarks and copyrights.
- Assess the relevance of regulatory agencies in providing safe goods and drugs.
Try a few questions
- Practice question 1
A 'non-disclosure agreement' (NDA) is a legal contract in which a party agrees to
- A.Avoid entering into any further business agreements
- B.Keep specified confidential information private and not disclose it to unauthorized third parties
- C.Publicly disclose all of a business's trade secrets
- D.Freely share confidential information with any third party
Show the answer
B. Keep specified confidential information private and not disclose it to unauthorized third parties
An NDA is a contract requiring a party to keep specified confidential information private, not disclosing it to others.
- Practice question 2
Under the Hire Purchase Act, a key protection typically given to the buyer (hirer) is that they generally cannot be required to
- A.Make any instalment payments at all
- B.Choose the goods they wish to purchase
- C.Ever take possession of the goods
- D.Pay more than the total hire purchase price stated, and are usually entitled to certain rights if they wish to terminate the agreement early
Show the answer
D. Pay more than the total hire purchase price stated, and are usually entitled to certain rights if they wish to terminate the agreement early
The Hire Purchase Act typically protects buyers from being charged more than the stated price and gives termination rights.
- Practice question 3
Under the Sale of Goods Act, a seller generally has an implied duty to ensure that goods sold are
- A.Of satisfactory quality and reasonably fit for their intended purpose
- B.Free of charge to the buyer
- C.Of unspecified quality with no legal standard
- D.Manufactured only outside Nigeria
Show the answer
A. Of satisfactory quality and reasonably fit for their intended purpose
The Sale of Goods Act implies a duty that goods be of satisfactory quality and fit for their intended purpose.
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