Artur Nowak-Far
(d) a liability transaction.
Warsaw School of Economics
Business Law (Early exam)
Please put X on the answer you consider
correct or most accurate. There is only
one correct/most accurate answer to
each question. You can change your
mind indefinitely – however, please
make sure that you have indicated your
final answer in any comprehensible way.
During the exam, you are allowed to use
language dictionaries (yet no legal or
law dictionaries)
You have 40 minutes.
EXAMINATION TEST
Name and Surname:
1. Allocation function of law is
about:
(a) informing people what their rights
and obligations are;
(b) allocation of rights between sellers
and buyers;
(c) endorsement of negotiable
instruments;
(d) liability of insurers.
2. Merchandability is an aspect of:
(a) negotiable instruments;
(b) liability for defective products;
(c) liability in delicts/torts;
(d) warranty in the context of sales of
goods.
3. A person who purchases goods in
a grocery store and requires an
invoice instead of a regular
receipt concludes a:
(a) a consumer transaction;
(b) a bad faith transaction;
(c) a business transaction;
4. Misrepresentation involves:
(a) improper representation of
somebody’s interests giving rise to
indemnifications;
(b) improper representation of
somebody’s interests which can be
corrected/confirmed by that person;
(c) unserious promise made in public
which then has been confirmed;
(d) untruthful assertion by one of the
parties to a contract about a
material fact.
5. Whenever someone bears strict
liability, it means that:
(a) her/his liability is limited to an
amount of money specified in
applicable statutory law,
(b) she/he cannot be relieved of her/his
liability by providing evidence of
lack of fault
(c) her/his liability is unlimited as to
the amount of damage payable to
those for whom he/she is liable, but
limited to only those who suffered
directly because of her/his fault
(d) her/his liability is strictly specified
by applicable statutory law so that
no customs or other non-statutory
rules could intervene.
6. In order to be suitable for a
copyright, a product of human
intellect should:
(a) be genuine, commonly considered
to be an artwork and have fixed
form
(b) have fixed form, be original and
creative,
(c) be original, have a literary character
and have at least one readable
version
(d) be patentable
7. Purchasing a complex enough
fixed asset or a set of fixed assets
fit to create a basis for a viable
business activity is likely to give
rise to the same effects as:
(a) creating a limited liability company
(b) purchasing an enterprise/making an
en bloc purchase of an enterprise
(c) creating a de facto partnership with
the vendor of these assets
(d) a trust.
8. Whenever two or more debtors
bear joint and several liability,
this means that:
a. creditor(s) can require
settlement of a total amount of
debt from either debtor or from
all of them and that paying off
the debt by one of them relieves
all other debtors of their debt
with respect to the creditor(s)
b. creditor(s) must require
settlement of a total amount of
debt from all debtors together
(in equal parts)
c. the amount of the debt
attributable to each debtor can
be treated (e. g. accounted for in
creditor’s books) jointly despite
of the fact that there are many
different situations which gave
rise to their respective debts
d. they owned stock in one joint
stock company
9. In most of European jurisdictions
as well as in the Vienna
Convention on International
Sales, whenever an offer is –
generally speaking – accepted,
yet with a small reservation
concerning e. g. quality of goods:
a. this offer is considered
conditionally accepted
b. this offer is considered
accepted,
c. this reservation constitutes a
counter-offer
d. this reservation is considered,
so called, remainder, i. e. a
clause which would have to be
resolved by a court (having
jurisdiction over the issue) on
any reasonable date after the
conclusion of the contract.
10. Buyer will waive both implied
and expressed warranties, if
she/he:
a. fails to properly protect the
goods during their
shipment;
b. fails to examine goods for
which express warranty was
created or fails to comply
with the sellers request to
inspect goods;
c. fails to pay the price for the
goods sold in due time and
to properly unpackage the
goods;
d. fails to pay the price for the
goods sold in due time;
11. In the case of a limited liability
company, the company is liable
to the limit of:
a. the net market value of its
assets and liabilities
b. the net value of the capital
initially contributed to this
company
c. the net value of its
shareholders’ shares at a
given moment
d. the net market value of its
subscribed capital
12. In merger law, appraisal right
means:
a. the right to have the value of
companies partaking in the
merger properly appraised by
chartered accountants
b. the right to have the value of the
company created as a result of
the merger properly appraised
 by chartered accountants (to
make it possible to execute the
so called “fine-tuning”
monetary settlement between
the companies partaking in the
mergers)
c. the obligation to properly
appraise the difference between
the market and book value of all
assets and liabilities of the
merging companies
d. the right of a shareholder
dissenting the merger to have
her/his shares appraised and to
receive monetary compensation
from the corporation for their
value
13. Automatic stay in bankruptcy
proceedings means that:
a. a company filing for bankruptcy
must not assume any new
liabilities
b. a company filing for bankruptcy
must immediately stop its most
debt-producing business
activities
c. the management of a company
filing for bankruptcy is to stop
its operations and turn the
company over to the receiver
d. all creditor litigation against a
company filing for bankruptcy
must stop
14. An arbitration award will not be
recognized by a court on the grounds
of its inconsistency with:
a. public order
b. the court’s policy in
adjudicating similar cases
c. the court’s understanding of its
merits
d. frustration of the contract
doctrine
15. In law of sales, warranty given to the
buyer is extended:
a. indefinitely as to the content but
definitely as to its time-span
b. onto her/his household
members
c. onto any future second-hand
buyer of the object having been
originally sold to that buyer
d. only if the buyer dies as a result
of the transaction
16. Piercing-through-the-corporate-veil
doctrine allows debtors to:
a. seek repayment of their debt
regardless of any corporate
structure used to make such a
relief impossible
b. sue all the shareholders of a
company regardless of whether
they were active or passive
investors
c. receive any information about
the company to which they have
lend money
d. receive shareholding in the
debtor company if this company
is in serious default.
17. In continental law, the equivalent of
piercing-through-the-corporate-veil
doctrine is:
a. Claudial action;;
b. Paulian action:
c. desuetudo;
d. joint and several liability.
18. In a discriminatory case, where a 30
years old man was rejected a job in a
theatre – which was role of Ophelia
(i. e. main teenager female role) in
Shakespeare’s “Hamlet”:
a. plaintiff must provide evidence
that the decision had a
legitimate business reason, and
the defendant must demonstrate
a prima facie discrimination;
b. the burden of proof of all
material circumstances on
which the case is based is with
the plaintiff;
c. quid pro quo test should be
made;
 d. the plaintiff must demonstrate a
prima facie discrimination and
the defendant must provide
evidence for a legitimate reason
for the decision.

19. In unjust enrichment:

a. enriched person should give
back all unjustly received
assets;
b. enriched person can keep all
unjustly received assets;
c. enriched person should give
back all unjustly received assets
unless they have been
consumed in any way;
d. enriched person can keep all
unjustly received assets
provided that she/he has used
them in any substantial way.

20. Under most of continental

jurisdiction (such as e. g. Polish one)
donation is:
a. a unilateral legal action;
b. a contract;
c. a bilateral legal action;
d. a multilateral legal action.

21. In the European Union, door step

selling to a certain customer makes:

a. a definite sale, provided that

there are no grounds for
exercising warranty rights;
b. non-definite sale as the contract
can be revoked at any
reasonable time by the
customer;
c. non-definite sale, as the contract
can be revoked at any
reasonable time by the seller;
d. temporarily non-definite sale, as
the contract can be revoked by
the customer within a certain
time limit.