Free ATT and CIOT Computer Based Exam in Law Practice Questions

Sample Practice Questions

Try these 10 sample questions from the ATT and CIOT Computer Based Exam in Law practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1How is an Act of the UK Parliament classified as a source of law?

   1. A.Primary legislationCorrect answer: A
   2. B.Delegated legislation
   3. C.Judicial precedent
   4. D.Administrative guidance

   Explanation: UK Parliament states: "Acts of Parliament are known as primary legislation" An Act is primary legislation. Delegated rules, judicial decisions and guidance have different sources of authority.

   Reference: UK Parliament: What is an act of Parliament? — What is an act of Parliament?

2. 2Which relationship meets the statutory definition of partnership?

   1. A.Owning property jointly without carrying on business
   2. B.Sharing gross receipts without a common business
   3. C.Carrying on a business in common with a view of profitCorrect answer: C
   4. D.Working for a salary in another person's business

   Explanation: The Act states: "Partnership is the relation which subsists between persons carrying on a business in common with a view of profit." Common business and a profit objective are required. Ownership, receipts or employment alone do not establish that relationship.

   Reference: Partnership Act 1890 — section 1(1)

3. 3What does incorporation as a limited company mean for the relationship between the business and its owners?

   1. A.The company is legally separate from its ownersCorrect answer: A
   2. B.The company and each owner are the same legal person
   3. C.The company's assets automatically belong to its directors
   4. D.The company is merely an agent with no separate identity

   Explanation: The source states: "It is legally separate from the people who own it." Separate personality distinguishes the company from owners. Neither directorship nor ownership makes corporate assets personal assets.

   Reference: GOV.UK: Set up a private limited company — Limited companies

4. 4For a business transfer to receive TUPE protection as such, what must change?

   1. A.The employer's identityCorrect answer: A
   2. B.The trading name alone
   3. C.The payroll provider alone
   4. D.The ownership of shares in the employer alone

   Explanation: "The identity of the employer must change, to be protected under TUPE during a business transfer." A TUPE business transfer requires a change of employer. A name, payroll agent or shareholding change alone leaves the employer's legal identity unchanged.

   Reference: GOV.UK: Business transfers, takeovers and TUPE — 1. Overview, Business transfers

5. 5Which pair comprises the estates capable of existing at law under section 1(1) of the Law of Property Act 1925?

   1. A.A life interest and a reversionary trust interest
   2. B.A fee simple absolute in possession and a term of years absoluteCorrect answer: B
   3. C.A restrictive covenant and a beneficial share
   4. D.An equitable charge and a discretionary trust interest

   Explanation: "(a)An estate in fee simple absolute in possession; (b)A term of years absolute." Section 1(1) lists fee simple absolute in possession and term of years absolute; the alternatives mix equitable interests or rights with legal estates.

   Reference: Law of Property Act 1925 — section 1(1)

6. 6How does UK copyright normally arise for qualifying original work?

   1. A.Only after registration with the IPO
   2. B.Automatically, without an application feeCorrect answer: B
   3. C.Only after the first commercial sale
   4. D.Only after a patent is granted

   Explanation: The source states: "You get copyright protection automatically - you do not have to apply or pay a fee." Qualifying copyright arises automatically. Registration, commercial sale and patent grant are not prerequisites.

   Reference: IPO: Copyright — Overview

7. 7When identifying the parties to a trust, who is the settlor?

   1. A.The person who manages the trust's investments
   2. B.The person with a beneficial entitlement under the trust
   3. C.The person who puts assets into the trustCorrect answer: C
   4. D.The person appointed to oversee trustee decisions

   Explanation: "the ‘settlor’ - the person who puts assets into a trust" The settlor supplies trust assets. Investment management, beneficial entitlement and supervision identify different roles.

   Reference: GOV.UK: Trusts — Trusts involve

8. 8A bill has passed both Houses of Parliament. Which further approval normally makes it an Act?

   1. A.Approval by the Supreme Court
   2. B.Royal Assent by the monarchCorrect answer: B
   3. C.Publication by the Law Commission
   4. D.Consent of every local authority

   Explanation: UK Parliament states: "been given Royal Assent by the monarch." Royal Assent completes the stated process; courts, the Law Commission and local authorities do not give that assent.

   Reference: UK Parliament: What is an act of Parliament? — What is an act of Parliament?

9. 9Two people jointly own an investment asset. What does joint ownership alone establish about partnership?

   1. A.It automatically creates a partnership
   2. B.It does not of itself create a partnershipCorrect answer: B
   3. C.It creates a partnership only if values rise
   4. D.It creates a partnership only on disposal

   Explanation: The Act states: "Joint tenancy, tenancy in common, joint property, common property, or part ownership does not of itself create a partnership" Joint ownership alone is insufficient; automatic creation and creation on appreciation or disposal confuse ownership with carrying on a common business.

   Reference: Partnership Act 1890 — section 2(1)

10. 10A member holds shares with £300 unpaid. Ignoring separate guarantees or misconduct, what does limited liability by shares refer to?

    1. A.Liability for the whole company's debts
    2. B.Liability limited to the amount unpaid on their sharesCorrect answer: B
    3. C.Liability up to the shares' full nominal value
    4. D.Liability up to the shares' current market value

    Explanation: "If their liability is limited to the amount, if any, unpaid on the shares held by them, the company is “limited by shares”." The member's share liability is the unpaid amount, here £300, not every company debt, the already-paid nominal amount or market valuation.

    Reference: Companies Act 2006 — section 3(2)