Paper F4 (BWA) Corporate and Business Law (Botswana) Specimen questions applicable from December Fundamentals Level Skills Module
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1 Fundamentals Level Skills Module Corporate and Business Law (Botswana) 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 Section multi A task ALL 45 question. questions are compulsory and MUST be attempted The Section full B exam ALL will FIVE consist questions of are the compulsory following: 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 All You questions must NOT write are compulsory. in your answer booklet until instructed by the supervisor. To This see question an example paper must of the not full be removed specimen from exam, the examination please refer hall. to the F4 (GLO) Specimen Paper. Paper F4 (BWA) The Association of Chartered Certified Accountants The Botswana Institute of Chartered Accountants
2 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 a potential remedy for unfair dismissal? A B C Reinstatement Re-engagement Redeployment (1 mark) 2 In the context of the Botswana legal system, which of the following is NOT a source of law? A B C D Morals, conventions and social norms Acts of parliament Customs Decisions of higher courts 3 Which of the following constitutes a binding offer to sell a car? A Placing a poster in the window stating For sale P250,000 Call B Placing an advertisement in the Botswana Advertiser C Telling someone that you are willing to accept P20,000 for the vehicle D Placing it on display in a showroom with a price attached to it 4 Which of the following is a circumstance in which a company may be wound up by the court? A B C D Where the directors agree that the company should be wound up by the court Where it is equitable and convenient to wind up the company Where the company board persistently or seriously fails to comply with the companies legislation Where the company delays paying its debts 5 The offence of insider trading has several elements. Which of the following are elements of the offence of insider trading in terms of s.324 Companies Act 2003? (1) Making a secret profit by virtue of dealing in a security (2) Obtaining price sensitive information (3) Knowingly dealing in a security based on unpublished price sensitive information A 1, 2 and 3 B 1 and 2 only C 2 and 3 only D 1 and 3 only 2
3 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 The window of Paul s vehicle has not been winding up properly. He enters into an agreement with Ngwedi Auto for repairs. Ngwedi Auto removes the window motor from the vehicle and requests a deposit of P500, which Paul pays. Ngwedi Auto informs Paul that they shall complete the repairs in a month. After two months, the repairs are still incomplete. After a further six weeks and making several demands for completion, Paul purchases a new motor and installs it in his vehicle. Paul has instituted action against Ngwedi Auto for breach of contract. Required: (a) State the purpose of a claim for damages. (b) Explain whether Paul is required to mitigate his losses. (c) State what Paul will be able to recover from Ngwedi Auto in damages for breach of contract. (6 marks) 3
4 Answers
5 Fundamentals Level Skills Module, Paper F4 (BWA) Corporate and Business Law (Botswana) Specimen Answers Section A 1 A 2 A 3 C 4 C 5 C Section B 1 (a) The aim of an award of damages for breach of contract is to fully compensate the victim for their loss caused by the breach. Breach of contract gives rise to a duty to pay damages as compensation for the patrimonial loss suffered by the claimant. Damages are awarded with a view to restoring to the claimant the value of their patrimony lost as a result of the breach of contract to the hypothetical value of their patrimony had the contract been properly carried out. (b) (c) The law will not permit the claimant to recover any loss which they allowed to accumulate as a result of their own failure to take reasonable steps to prevent such losses. Paul must therefore take reasonable steps to mitigate his loss. Paul should be able to recover the costs of purchasing a new motor for the window from Ngwedi Auto and his deposit of P500. This is the amount which was necessary to restore him to the position he would have been in had the contract been carried out properly. 7
6 Fundamentals Level Skills Module, Paper F4 (BWA) Corporate and Business Law (Botswana) Specimen Marking Scheme Section A 1 5 One or two marks per question Section B 1 (a) 1 mark for each relevant point made relating to damages up to the maximum 2 marks. (b) (c) 1 mark for each relevant point made relating to the duty to mitigate losses, up to the maximum 2 marks. 1 mark for each relevant application up to the maximum 2 marks. 9
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