ICAN 2021 Business Law | Mixed

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Question 1 View Details
Which of the following is not a written law?
A. Act
B. Decree
C. Bye-law
D. Edict
Correct E. Common law

Correct Answer: E

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Question 2 View Details
Which of the following is not an equitable remedy?
A. Injunction
B. Specific performance
Correct C. Damages
D. Rescission
E. Rectification

Correct Answer: C

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Question 3 View Details
The length of notice that a company must give to a member for an Extraordinary General Meeting is
A. 15 days
B. 17 days
C. 19 days
Correct D. 21 days
E. 25 days

Correct Answer: D

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Question 4 View Details
The power of a partner to bind the firm is revoked by
A. Amortisation
B. Merger
C. Restructuring
Correct D. Dissolution
E. Articulation

Correct Answer: D

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Question 5 View Details
Which of the following is an option for a company that is in financial distress in Nigeria?
Correct A. Receivership
B. Subrogation
C. Novation
D. Upsizing
E. Redemption

Correct Answer: A

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Question 6 View Details
Members of professional bodies are regulated by law and
Correct A. Ethical codes
B. Peer review
C. Morality
D. Clients
E. Conditional ties

Correct Answer: A

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Question 7 View Details
A person that procures property or credit by a cheque that is dishonoured could be charged with
A. Stealing by trick
B. False procurement
Correct C. Obtaining by false pretence
D. Contracting by fraud
E. Conversion

Correct Answer: C

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Question 8 View Details
In verifying a customer’s account, a bank shall require its body corporate customer to provide, among other things, valid official documents of a transaction by it of not more than
A. 3 months
B. 4 months
C. 5 months
Correct D. 6 months
E. 7 months

Correct Answer: D

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Question 9 View Details
The internal records of an Internet Service Provider (ISP) of a customer’s online activity is admissible in evidence as business records if
A. Implied
B. Implicated
Correct C. Authenticated
D. Ratified
E. Annexed

Correct Answer: C

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Question 10 View Details
An acceptance that is subject to contract indicates a
Correct A. Continuing negotiation
B. Void contract
C. Valid contract
D. Voidable contract
E. Closed negotiation

Correct Answer: A

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Question 11 View Details
An offer to receive an offer is known also as an
A. Intention to receive acceptance
Correct B. Invitation to treat
C. Inclusion of consideration
D. Implosion of offer
E. A considerate offer

Correct Answer: B

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Question 12 View Details
Which of the following is not a tort that affects economic interest?
A. Detinue
B. Conversion
C. Passing off
D. Deceit
Correct E. Bailment

Correct Answer: E

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Question 13 View Details
A hire purchase contract does not involve transfer of
A. Possession
Correct B. Title
C. Indemnity
D. Proposal
E. Inventory

Correct Answer: B

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Question 14 View Details
Which of the following is not a subject matter of a sale of goods contract?
A. Motor car
B. Ascertained goods
C. Unascertained goods
D. Specific goods
Correct E. Personality

Correct Answer: E

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Question 15 View Details
A contract by which the representative of a party is to receive a specific sum of money on the occurrence of an event that is bound to happen is a contract of
A. Insurance
B. Novation
C. Compensation
Correct D. Assurance
E. Quantum meruit

Correct Answer: D

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Question 16 View Details
The contract by which a person is subject to the control of his master is a contract of
A. Control
B. subjugation
C. Tortal involvement
Correct D. Service
E. Work

Correct Answer: D

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Question 17 View Details
Where there is no certainty of intention in a trust relationship, the grantee
Correct A. Returns the property to the public trustee
B. Gives the property to a charitable organisation
C. Approaches the donor’s counsel
D. Distributes the property to the donee’s next-of-kin
E. Takes the property absolutely

Correct Answer: A

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Question 18 View Details
The process by which parties to a dispute engage the assistance of a neutral third party to intervene in resolving the dispute is called
Correct A. Mediation
B. Conciliation
C. Arbitration
D. Facilitation
E. Fence building

Correct Answer: A

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Question 19 View Details
Who, of the following, is not a special agent?
A. Factor
B. Broker
C. Auctioneer
D. Del credere agent
Correct E. Vendor

Correct Answer: E

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Question 20 View Details
Under the Money Laundering (Prohibition) Act, except through a financial institution, a cash payment of not more than N 5,000,000 must not be made by a/an
A. Private company
B. Body corporate
C. Non-governmental organisation having incorporated trustees
Correct D. Individual
E. Government agency

Correct Answer: D

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Question 1 View Details
Requirements
(a)
The Constitution of the Federal Republic of Nigeria has a number of key features. Required: State FOUR characteristics of the Constitution of the Federal Republic of Nigeria.
(b)
Kokori and Jendor have a dispute arising from non-execution of a contract that Kokori awarded to Jendor about four years ago. Kokori intends to go to court on the matter, and he has been advised that the matter falls under one of the two broad divisions of law. Required: State FOUR characteristics of the broad division of law that applies to the dispute between Kokori and Jendor.
(c)
Oguche and Agoro have been friends for twenty-five years. They agreed to trade together by contributing money to buy textile materials from Aswani market in Lagos, Aba market in Abia State, and Sabongari market in Kano. The two friends have been buying the materials and sharing them for sale in towns and villages in Oyo State, Nigeria. Recently, Agoro bought textile materials from Kano when he visited his political associates in that city. Agoro resold the materials at a huge profit, and when Oguche became aware of that fact, he approached Agoro, demanding a share in the profit of the resale, basing his entitlement on the argument that they are partners. Agoro has refused to share the profit with Oguche, and the latter has approached you for an advice. Required: i. Advise Oguche on whether or not he is entitled to a share in the profit that Agoro made.
(ii)
Would you have advised Oguche differently if the two friends had a registered partnership under the name and style “Oguche and Agoro Ventures”?
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Question 2 View Details
Requirements
(a)
The lead regulatory agency for companies in Nigeria is the Corporate Affairs Commission, which is established by the Companies and Allied Matters Act. Required: State FOUR functions of the Corporate Affairs Commission.
(b)
Adigwe and his two sons caused Adigwe and Sons Limited to be incorporated and became the first directors of the company. The company traded profitably for five years after it was incorporated, but it is about to be wound up because it owes trade creditors a huge amount of money. Adigwe holds 95% of the issued shares of the company while each of his two sons holds 21/2%. The creditors of Adigwe and Sons Limited have discovered that the assets of the company are insufficient to satisfy their claims and have filed an action to recover the money from Adigwe who holds most of the shares of the company. Required: Explain to the creditors of Adigwe and Sons Limited their chance of succeeding in their claim against Adigwe.
(c)
Receivership is an alternative to company liquidation. Required: Explain receivership.
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Question 3 View Details
Requirements
(a)
The Companies and Allied Matters Act classifies companies broadly into ‘private company’ and ‘public company’. Required: State FOUR characteristics each of a private company and a public company respectively.
(b)
Okonto, an employee of a Federal Government Agency, had a parcel of land allocated to him in the proposed estate of the Agency in Abuja. To facilitate the building of a bungalow on the land pursuant to the Agency’s staff home ownership scheme, the Agency gave Okonto a housing loan. Okonto purchased an application form with the housing loan from one of the major political parties so as to contest for a senatorial seat in his home state on the platform of that party. Okonto planned to build the bungalow later from his income as a Senator. Required Explain to the Director-General of Okonto’s Agency the legal implication of Okonto’s action in criminal law.
(c)
Evidence generated by a Global System for Mobile communication (GSM) phone is admissible by the courts. Required: Explain the nature of GSM phone evidence and the duty of a person that seeks to tender it in court in proof of a financial transaction.
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Question 4 View Details
Requirements
(a)
Preliminaries of a contract may involve an offer or invitation to treat. Required: Distinguish an offer from an invitation to treat.
(b)
Luandem resides in Rayfield area of Jos and has many helpful neighbours. The closest of these neighbours is Dakkas, a specialist in landscaping. Luandem travelled to Maiduguri as a volunteer to assist the International Commission of the Red Cross in caring for Internally Displaced Persons (IDPs). The escalation of internal displacement made it impossible for Luandem to return to Jos on time to the extent that he spent six months of the rainy season there instead of a month that he planned to spend. Seeing that Luandem’s compound was overgrown with weeds, Dakkas took it upon himself to mow the lawns twice a month for four months. In addition, he planted roses as hedges to the compound. Luandem returned from Maiduguri last month and promised to pay Dakkas a sum of N100,000 for his labour of love in taking care of his compound in his absence. Dakkas has waited for two months in expectation of the payment. He is hard pressed for money presently because of his son’s demand for school fees. Therefore, he intends to sue Luandem for the money after repeated demands by him and failed promises by Luandem. Required: Explain the principle of the law of contract that applies to Dakkas’ plan and apply it in advising Dakkas.
(c)
Negligence is a tort that professional accountants must guard against in their relationship with their clients Required: Define negligence and state the THREE elements that a litigant must prove to succeed in an action for negligence.
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Question 5 View Details
Requirements
(a)
Thabita called Ijeda, a distributor of different brands of cement, and expressing her intention to buy 500 bags of a good cement. A notice board in front of Ijeda’s shop has a notice that reads, “Cement for sale at N1,500”. Thabita transferred the sum of N750,000 to Ijeda electronically and called at the latter’s store to collect 500 bags of “Dan” Cement, each of which sells for N2,000. Ijeda’s shop attendant asked Thabita’s assistants to take “Ele” Cement, that sells for N1,500, but Thabita insists that she had paid for 500 bags of “Dan” Cement which now belong to her. Required: i. Applying the Sale of Goods Law/Act, explain the classification of the subject matter of the transaction between Thabita and Ijeda.
(ii)
Explain the significance of the classification of the subject matter.
(b)
Kabir took possession of a Toyota Sienna bus from Auto Distributors Limited so as to add to his fleet of commercial mini vans. The price of the bus is N3.6 million payable in ten equal monthly instalments. Kabir intends to terminate the agreement that he has with Auto Distributors Limited after he has used the bus for two months and paid two instalments because his brother, Jamal, has just given him the same type of mini van. Required: State the nature of the agreement and FIVE ways of terminating it.
(c)
Materiality of facts is important in fixing the duties of the insured under a contract of insurance. Required: i. Explain the current law on material facts in insurance contract.
(ii)
Before the law, state a fact that would be material in a proposal for life assurance.
(d)
Arbitration is an Alternative Dispute Resolution (ADR) mechanism Required: How is an arbitral panel composed or constituted?
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