A) (BW F4 er

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
multi
question.
Section
A – task
ALL 45
questions are compulsory and MUST be
attempted
The
fullBexam
the
following:
Section
– ALL will
FIVE consist
questionsofare
compulsory
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
You
must
NOT write
in your answer booklet until instructed by the
All questions
are compulsory.
supervisor.
To
see
an example
of the
specimen
exam,
please refer
to
This
question
paper must
notfull
be removed
from
the examination
hall.
the F4 (GLO) Specimen Paper.
The Association of Chartered Certified Accountants
The Botswana Institute of Chartered Accountants
Paper F4 (BWA)
Fundamentals Level – Skills Module
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
(2 marks)
3
Which of the following constitutes a binding offer to sell a car?
A
B
C
D
Placing a poster in the window stating ‘For sale P250,000 Call 7773241’
Placing an advertisement in the Botswana Advertiser
Telling someone that you are willing to accept P20,000 for the vehicle
Placing it on display in a showroom with a price attached to it
(2 marks)
4
Which of the following is a circumstance in which a company may be wound up by the court?
A
B
C
D
Where
Where
Where
Where
the directors agree that the company should be wound up by the court
it is equitable and convenient to wind up the company
the company board persistently or seriously fails to comply with the companies legislation
the company delays paying its debts
(2 marks)
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
B
C
D
1, 2 and 3
1 and 2 only
2 and 3 only
1 and 3 only
(2 marks)
2
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.
(2 marks)
(b) Explain whether Paul is required to mitigate his losses.
(2 marks)
(c) State what Paul will be able to recover from Ngwedi Auto in damages for breach of contract.
(2 marks)
(6 marks)
3
Answers
Fundamentals Level – Skills Module, Paper F4 (BWA)
Corporate and Business Law (Botswana)
Specimen Answers
Section A
1
2
3
4
5
A
A
C
C
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)
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.
(c)
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
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)
1 mark for each relevant point made relating to the duty to mitigate losses, up to the maximum 2 marks.
(c)
1 mark for each relevant application up to the maximum 2 marks.
9