INTRODUCTION TO LAW AND ETHICS ACCOUNTING TECHNICIANS DIPLOMA (ATD) DECEMBER  2023 PAST PAPER

WEDNESDAY: 6 December 2023. Afternoon Paper. Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything on this paper.

1. Which of the following is NOT an intentional tort?

A. Assault
B. Defamation
C. Fraud
D. Strict liability (2 marks)

2. Which of the following is the primary source of Islamic Law?

A. The Quran
B. The Bible
C. The Talmud
D. The Vedas (2 marks)

3. Which of the following branch of law is concerned with regulating the behavior of individuals within a society and includes offenses against the state or society?

A. Criminal law
B. Contract law
C. Family law
D. Tort law (2 marks)

4. Which one of the following is considered a primary source of law?

A. Judicial decisions
B. Legal textbooks
C. Statutes enacted by the legislature
D. Legal commentaries (2 marks)

5. Which one of the following is the MAIN purpose of the doctrine of separation of powers in a democratic system?

A. To concentrate power in the hands of a single authority
B. To prevent any one branch of government from becoming too powerful
C. To abolish the judiciary
D. To prioritise the executive branch over the legislative branch (2 marks)

6. Which one of the following is a legal defense to contributory negligence?

A. Both parties are equally at fault
B. The defendant has a valid excuse for their actions
C. The plaintiff’s injuries were not caused by the defendant’s actions
D. The plaintiff’s own negligence contributed to their injury (2 marks)

7. In which one of the following circumstances is mediation a form of alternative dispute resolution (ADR)?

A. A neutral third party makes a binding decision on the dispute
B. The parties involved present their case to a judge in an informal setting
C. A neutral third party helps facilitate communication and negotiation between the parties
D. The dispute is resolved through a competitive negotiation process (2 marks)

8. According to virtue ethics, what is the primary focus when determining the morality of an action?

A. The individual’s intentions and character traits
B. The consequences of the action
C. The adherence to universal moral rules
D. The social contract (2 marks)

9. Which of the following is the primary purpose of a code of ethics in a profession or organisation?

A. To establish legal regulations and requirements
B. To promote competition among professionals
C. To provide guidance and standards for ethical behavior
D. To limit professional responsibilities (2 marks)

10. In relation to online commercial transactions, which of the following is an example of a digital good?

A. A smartphone
B. An e-book
C. A digital television set
D. A physical music CD (2 marks)

11. Which body is responsible for the establishment and administration of courts in Kenya?

A. Ministry of Interior and National Administration
B. Parliament of Kenya
C. Judicial Service Commission
D. Law Society of Kenya (2 marks)

12. What role do tribunals play in the Kenyan legal system?

A. They adjudicate on specialised matters within their jurisdiction
B. They assist in the drafting of legislation
C. They provide mediation as an alternative dispute resolution mechanism
D. They exclusively handle criminal cases (2 marks)

13. Which of the following is the primary basis of acquiring nationality?

A. Birthplace
B. Residence
C. Ancestry
D. Marital status (2 marks)

14. Which one of the following is TRUE about the legal status of a person who holds dual citizenship?

A. They are considered stateless
B. They have the rights and obligations of both citizenships
C. They can only exercise the rights of one citizenship
D. They are subject to deportation (2 marks)

15. Which one of the following best describes an unincorporated association?

A. A type of business entity with limited liability protection
B. A group of individuals or entities that come together for a common purpose without forming a separate legal entity
C. A nonprofit organisation registered with the government
D. A partnership with unlimited liability for all members (2 marks)

16. Which one of the following BEST describes the legal principle of “res ipsa loquitur” in tort law?

A. The burden of proof shifts to the defendant
B. The thing speaks for itself; the plaintiff need not prove negligence, as it is obvious
C. The plaintiff must prove causation beyond a reasonable doubt
D. The defendant is strictly liable regardless of fault (2 marks)

17. Which one of the following statements describes the main purpose of damages in the law tort?

A. To punish the defendant
B. To compensate the plaintiff for losses suffered
C. To deter others from similar behavior
D. To transfer property from the defendant to the plaintiff (2 marks)

18. Which one of the following vitiating elements of a contract occurs when one party is coerced into entering the contract?

A. Misrepresentation
B. Illegality
C. Mistake
D. Undue Influence (2 marks)

19. Which one of the following is the primary consideration in a contract for the sale of goods?

A. The specific performance of services
B. The transfer of ownership and the payment of a price
C. The fulfillment of a promise or obligation
D. The exchange of goods for services (2 marks)

20. When does ownership of an item typically transfer to the buyer in a hire purchase contract?

A. After the first payment is made
B. After the buyer returns the item
C. After the final payment is made
D. Ownership remains with the seller (2 marks)

21. Which one of the following is the term for an agency relationship that is created through actions and conduct of parties involved, rather than through explicit agreement?

A. Implied agency
B. Ostensible agency
C. Sub-agency
D. Formal agency (2 marks)

22. In a contract of indemnity, who bears the primary responsibility for the loss?

A. Indemnifier
B. Indemnified party
C. Third party
D. Government authority (2 marks)

23. What is the term used to refer to the act of transferring a negotiable instrument to another party?

A. Negotiation
B. Endorsement
C. Assignment
D. Conveyance (2 marks)

24. Which one of the following is a key characteristic of a limited partnership?

A. All partners have unlimited liability
B. There must be at least three partners
C. There must be a managing partner and passive partner
D. All partners have equal management authority (2 marks)

25. In a case where the subject matter of insurance is a ship, what is the name of the type of insurance?

A. Travel insurance
B. Voyage insurance
C. Marine insurance
D. Liability insurance (2 marks)

26. Which one of the following is NOT a form of ownership of land?

A. Sole ownership
B. Mutual ownership
C. Common ownership
D. Joint ownership (2 marks)

27. Which one of the following is a way of creation of an easement?

A. Express grant
B. Ratification
C. By estoppel
D. By choice (2 marks)

28. Caroline falsely accuses Jeff of stealing from their employer. The statement is defamatory only if?

A. A third party hears it
B. Nick suffers severe emotional distress as a result
C. The statement is the actual and proximate cause of his distress
D. The statement is not widely circulated in the local media and on Twitter (2 marks)

29. Which one of the following is a reason as to why independence of the judiciary is critical?

A. It promotes immunity from court action for actions taking place in the course of judicial proceedings
B. It promotes economic independence
C. It provides security of tenure for judicial officers
D. It promotes the rule of law (2 marks)

30. A situation in which a professional’s loyalty and obligations may be compromised because of personal interests is called _____________________.

A. Conceptual interest
B. Conflict of interest
C. Professional interest
D. Concern of interest (2 marks)

31. Stella and Martin are partners in a partnership firm. They made an agreement in writing to refer a dispute between them in business to an arbitrator. In spite of this agreement, Stella files a suit against Martin relating to the dispute in a court.

With regard to the above, which one of the following statements is correct.

A. The jurisdiction of court is ousted as a valid arbitration agreement exists
B. Court has jurisdiction over the matter and it overpowers arbitration agreement and such dispute cannot be referred to any other jurisdiction
C. Stella can file an appeal in court only against arbitral award
D. The court does not have jurisdiction to hear and determine the matter (2 marks)

32. Identify the correct sequence for the formation of a valid contract.

A. Agreement, offer, consideration, acceptance
B. Offer consideration, acceptance, agreement
C. Offer, acceptance, consideration, agreement
D. Offer, acceptance, agreement, consideration (2 marks)

33. Which one of the following is an implied condition as to title in sale of goods?

A. That the goods should be in merchantable condition
B. That the goods should match the sample
C. That the seller has the right to sell the goods
D. The goods should match the sample as well as the description (2 marks)

34. Where an agent takes secret profits or accepts bribes, the principal can exercise the following remedies, EXCEPT ___________________________.

A. He can recover the amount of secret profits or bribes
B. He can have the right to lien
C. He can sue both the third party and the agent
D. He can terminate the agency and refuse to pay any remuneration for work done by the agent (2 marks)

35. The Court of Appeal is bound by the decisions of which court(s)?

A. Decisions of the Supreme Court only
B. Decisions of the Supreme Court and generally its own decisions
C. Decisions of the Supreme Court and the Judicial tribunals only
D. The Court of Appeal is not bound by the decisions of any other courts (2 marks)

36. Which one of the following is NOT an ethical problem?

A. Privacy and confidentiality
B. Whistle blowing
C. Fraud and abuse
D. Compliance (2 marks)

37. Which one of the following defines nepotism?

A. Undermining the morale of workers
B. Hiring friends of relatives and showing favoritism at work
C. Hiring non-competent people
D. Receiving bribes at the work place (2 marks)

38. Which one of the following is a consequence of none registration of a hire purchase agreement?

A. The contract becomes illegal on the face of it
B. The contract will become unenforceable against the hirer or his guarantor
C. The contract becomes valid
D. The contract can be presented in court (2 marks)

39. What happens in a case where the articles of association of a company conflict with the memorandum of association?

A. The articles prevail
B. The memorandum prevails
C. The court solves the dispute
D. The company is wound up (2 marks)

40. Which one of the following is NOT required in order to create an agency?

A. The agent
B. The consideration
C. The third party
D. The principal (2 marks)

41. In relation to negotiable instruments, a bearer cheque is also known as _______________.

A. Crossed cheque
B. General cheque
C. Special cheque
D. Open cheque (2 marks)

42. What does the term “metaethics” refer to in the study of ethics?

A. The analysis of specific ethical dilemmas and situations
B. The study of the nature and foundations of ethical concepts and theories
C. The application of ethical principles to practical situations
D. The study of cultural variations in ethical norms (2 marks)

43. What is the purpose of an insurance policy?

A. To transfer risk from the insured to the insurer
B. To guarantee profits for the insured
C. To eliminate the need for financial planning
D. To provide investment opportunities for the insured (2 marks)

44. Which one of the following is considered a type of personal property?

A. Real estate
B. Chattel
C. Freehold estate
D. Easement (2 marks)

45. Which one of the following is a type of intellectual property that protects inventions, processes and certain discoveries?

A. Trademark
B. Copyright
C. Patent
D. Trade secret (2 marks)

46. What is the primary purpose of a copyright?

A. To protect the expression of ideas in tangible form
B. To protect new and useful processes, machines and manufactures
C. To protect confidential information used in business
D. To protect names, symbols or slogans used in business (2 marks)

47. Human life is subject to which kind of insurance?

A. Non-life insurance
B. Life assurance
C. Health insurance
D. Motor vehicle insurance (2 marks)

48. Which one of the following is NOT a characteristic of law?

A. It is a set of rules
B. It is enforceable by the state
C. It is always fair and just
D. It regulates society (2 marks)

49. Which one of the following dispute is most likely to be solved through Commercial Arbitration as an alternative to litigation?

A. Probate disputes
B. Contract negotiation
C. Child custody
D. Divorce (2 marks)

50. A promise made without the intention of performing it amounts to __________________.

A. Fraud
B. Misrepresentation
C. Negligence
D. Wrongful misrepresentation (2 marks)

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