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CIMA BA4 Exam Syllabus Topics:

CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. Section 14 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the goods supplied will be of "satisfactory quality." Exe inspected and purchased a new car. After travelling only 25 miles the engine seized up due to a latent defect. The manufacturer offered to repair the car in accordance with the guarantee but Exe has demanded a full refund.
Which of the following is correct?

A) Exe has used the car to travel 25 miles and cannot therefore obtain a full refund of the purchase price
B) As Exe has a manufacturers guarantee he is obliged to comply with his contract and have the car repaired
C) Exe is entitled to a full refund of the purchase price
D) As Exe had the opportunity to inspect the car he cannot rely on Section 14 of the Sale of Goods Act
1979 and is not entitled to a full refund

2. A is about to register a new company limited by shares, "A Ltd", in order to carry on a retail business. A has ordered a quantity of goods from a supplier "for and on behalf of A Ltd". Which of the following is correct?

A) The contract is void.
B) A is personally liable for the order.
C) A Ltd is liable to pay for the order as soon as it is registered.
D) A Ltd can ratify the contract following registration.

3. Which of the following most accurately describes the ratio decidendi?

A) It is a statement of law by a court which is not binding on lower courts which are called upon to decide a similar case.
B) It is a statement of law by a court which is binding on all lower courts which are called upon to decide a similar case.
C) It is a statement of law by a court which is binding on all higher courts which are called upon to decide a similar case.
D) It is a statement of law by a court which is binding on all future courts which are called upon to decide a similar case.

4. Which of the following is NOT a personal quality expected of professional accountants by CIMA?

A) Responsibility
B) Relativity
C) Reliability
D) Respect

5. You work for a clothing retailer. Which of the following corporate issues is NOT related to ethics or social responsibility?

A) Whether your clothes appeal to your target markets
B) The use of natural or organic material in your clothes
C) Knowingly selling fake versions of this season's high profile designer clothes
D) Sweatshop labor

Solutions: