100+ Free ACCA LW Practice Questions

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Key Facts: ACCA LW Exam

50%

Pass Mark

ACCA Qualification

2 hours

Exam Duration

ACCA LW Syllabus and Study Guide

100

Total Marks

ACCA LW Exam Structure

On demand

CBE Availability

ACCA LW Exam Page

A-I

Syllabus Areas

ACCA LW-GLO Study Guide

Section B Scenario MTQs

ACCA LW Exam Structure

ACCA LW (Corporate and Business Law) is a 2-hour, on-demand computer-based exam at Applied Skills level. It is almost entirely objective: Section A contains objective test (OT) questions worth 1 or 2 marks each, and Section B contains five 6-mark multi-task scenario questions, for a total of 100 marks. The pass mark is 50%, the standard across the ACCA qualification. The syllabus spans areas A to I: the legal system, international business transactions and the CISG, transportation and payment, the law of obligations, employment law, company formation and constitution, capital and financing, management and regulation, and insolvency and corporate criminal behaviour. National variants exist, including the Global (LW-GLO) and English variants.

Sample ACCA LW Practice Questions

Try these sample questions to test your ACCA LW exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In the ACCA LW (Global) syllabus, which type of law is concerned with disputes between private individuals or organisations seeking a remedy such as damages, rather than punishment by the state?

A.Civil law

B.Criminal law

C.Constitutional law

D.Public international law

Explanation: Civil law governs disputes between private parties (for example contract or tort claims) where the claimant seeks a remedy such as damages or an injunction. Criminal law, by contrast, involves the state prosecuting an accused to impose punishment.

2Under the doctrine of judicial precedent in a common law system, what is the binding element of a judgment that lower courts must follow?

A.The ratio decidendi

B.The obiter dicta

C.The court's final order only

D.The dissenting judgment

Explanation: The ratio decidendi is the legal reasoning essential to the decision and is the binding part of a precedent under stare decisis. Obiter dicta are persuasive only, and dissenting judgments do not bind.

3Which of the following best describes 'delegated legislation'?

A.Law made directly by Parliament in an Act

B.Law made by judges through case decisions

C.Rules made by a body using powers conferred by an enabling Act of Parliament

D.Treaty obligations binding on the state

Explanation: Delegated (subordinate) legislation is made by a person or body, such as a minister or local authority, exercising law-making power granted by a parent or enabling Act. Statutory instruments are a common example.

4When interpreting a statute, which rule of statutory interpretation requires the court to give words their ordinary, plain, grammatical meaning even if the result appears harsh?

A.The golden rule

B.The mischief rule

C.The literal rule

D.The purposive approach

Explanation: The literal rule directs the court to apply the natural and ordinary meaning of statutory words. The golden rule modifies the literal rule only to avoid an absurd result, and the mischief rule looks at the defect the statute aimed to remedy.

5Which court in the English legal system primarily hears the most serious criminal cases on indictment, such as murder, before a judge and jury?

A.The Crown Court

B.The Magistrates' Court

C.The County Court

D.The Supreme Court

Explanation: The Crown Court tries indictable (serious) criminal offences with a judge and jury. The Magistrates' Court deals with summary and less serious matters, while the County Court handles civil claims.

6What is the standard of proof that the prosecution must satisfy to secure a conviction in a criminal case?

A.Beyond reasonable doubt

B.On the balance of probabilities

C.On the preponderance of evidence

D.To a reasonable suspicion

Explanation: In criminal cases the prosecution must prove guilt 'beyond reasonable doubt', a higher standard reflecting the serious consequences of conviction. Civil claims use the lower 'balance of probabilities' standard.

7In a court hierarchy applying stare decisis, a decision of a higher court is binding on which courts?

A.Courts lower in the same hierarchy

B.Only the court that made the decision

C.All courts in every jurisdiction worldwide

D.Only courts of equal standing

Explanation: Under stare decisis a higher court's ratio binds courts below it in the same hierarchy, promoting certainty and consistency. It does not bind courts in unrelated jurisdictions and generally does not bind the higher court's own future decisions absolutely.

8The UN Convention on Contracts for the International Sale of Goods (CISG) generally applies to contracts for the sale of goods between parties whose places of business are in different states. To which of the following sales does the CISG NOT apply?

A.Sale of goods bought for personal, family or household use

B.Sale of industrial machinery between two businesses

C.Sale of raw materials between traders

D.Sale of manufactured components between companies

Explanation: Article 2 of the CISG excludes sales of goods bought for personal, family or household use (consumer sales). It is designed for commercial international sales between businesses in different contracting states.

9Under the CISG, when does a contract for the international sale of goods generally come into existence?

A.When the acceptance reaches the offeror

B.When the offer is dispatched

C.When the goods are delivered

D.When payment is made

Explanation: Under the CISG an acceptance becomes effective, and the contract is concluded, at the moment the indication of assent reaches the offeror (the receipt rule). Dispatch alone does not conclude the contract.

10Under the CISG, what is a buyer's primary remedy if the seller delivers goods that are non-conforming but the breach is NOT fundamental?

A.Damages and/or repair or price reduction

B.Automatic avoidance of the contract

C.Specific performance only

D.No remedy is available

Explanation: For a non-fundamental breach the buyer cannot avoid (terminate) the contract but may claim damages, require repair, or reduce the price proportionately. Avoidance is reserved for fundamental breaches under the CISG.

About the ACCA LW Exam

ACCA Corporate and Business Law (LW) is an Applied Skills exam covering the general legal framework and specific legal areas relating to business, including contract, tort, employment, company formation and financing, management, insolvency, and corporate criminal behaviour. It is examined by a 2-hour, on-demand computer-based exam that is almost entirely objective in format.

Assessment

Question count not published by the exam provider

Time Limit

2 hours (computer-based exam)

Passing Score

50% (standard ACCA pass mark)

Exam Fee

ACCA Applied Skills exam entry fee for LW, set by ACCA and varying by entry window and region (Association of Chartered Certified Accountants (ACCA))

ACCA LW Exam Content Outline

Syllabus area A

Essential elements of the legal system

Court structure, sources of law, judicial precedent, statutory interpretation, and the distinction between civil and criminal law within a common law framework.

Syllabus area B

International business transactions and the CISG

Formation of international sales contracts and the scope, formation rules, obligations, and remedies under the UN Convention on Contracts for the International Sale of Goods.

Syllabus area C

Transportation and payment of international business

Bills of lading and documents of title, letters of credit and the autonomy principle, bills of exchange, Incoterms, and methods of securing international payment.

Syllabus area D

The law of obligations

Formation and content of contracts, breach and remedies, vitiating factors, agency, and the tort of negligence including duty, breach, causation, and defences.

Syllabus area E

Employment law

Employee versus independent contractor status, the contract of employment, wrongful and unfair dismissal, constructive dismissal, redundancy, and parties' duties.

Syllabus area F

Formation and constitution of business organisations

Partnerships and LLPs, company formation, separate legal personality, lifting the veil, the memorandum and articles, and public versus private companies.

Syllabus area G

Capital and the financing of companies

Classes of shares, loan capital and debentures, fixed and floating charges, registration of charges, capital maintenance, dividends, and share premium.

Syllabus area H

Management, administration and regulation of companies

Directors' appointment, removal and general duties, company secretary, meetings and resolutions, auditors, and minority protection including derivative claims.

Syllabus area I

Insolvency and corporate criminal behaviour

Administration, receivership and liquidation with priority of claims, plus fraudulent and wrongful trading, director disqualification, insider dealing, money laundering, and bribery.

How to Pass the ACCA LW Exam

What You Need to Know

Passing score: 50% (standard ACCA pass mark)
Assessment: Question count not published by the exam provider
Time limit: 2 hours (computer-based exam)
Exam fee: ACCA Applied Skills exam entry fee for LW, set by ACCA and varying by entry window and region

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

ACCA LW Study Tips from Top Performers

1Practise large volumes of objective test questions, since LW rewards precise recall of legal rules and definitions.

2Learn the leading cases (such as Salomon, Donoghue v Stevenson, Carlill, and Foss v Harbottle) and what principle each establishes.

3Map your revision to syllabus areas A to I so no area is neglected, as questions sample across the whole syllabus.

4Be precise on company law thresholds, such as the 75% majority for a special resolution and the 50% pass mark.

5Distinguish closely related concepts, for example wrongful versus fraudulent trading and conditions versus warranties.

6Confirm you are studying the correct variant (Global or national) because some legal rules differ between variants.

Frequently Asked Questions

What format is the ACCA LW exam?

ACCA LW is a 2-hour, on-demand computer-based exam. Section A contains objective test (OT) questions worth 1 or 2 marks, and Section B contains five 6-mark multi-task scenario questions, totalling 100 marks. It is almost entirely objective in style.

What is the pass mark for ACCA LW?

The pass mark for ACCA LW is 50%, the same standard pass mark used across the ACCA qualification. Candidates must achieve at least 50% of the available marks to pass.

How many syllabus areas does ACCA LW have?

The ACCA LW Global syllabus is divided into syllabus areas covering the legal system, international business transactions and the CISG, transportation and payment, the law of obligations, employment law, company formation and constitution, capital and financing, management and regulation, and insolvency and corporate criminal behaviour.

Are there different variants of the ACCA LW exam?

Yes. ACCA offers variant LW papers including the Global (LW-GLO) and English (LW-ENG) variants, as well as several national variants. Candidates should sit the variant appropriate to their jurisdiction.

Does ACCA LW cover the UN Convention on the International Sale of Goods?

Yes. The Global LW syllabus covers international business transactions, including the formation of international sales contracts and the obligations and remedies under the UN Convention on Contracts for the International Sale of Goods (CISG).

Is ACCA LW examined on demand?

Yes. ACCA LW is examined as an on-demand computer-based exam, so candidates can book and sit it when they are ready rather than waiting for a fixed quarterly session.

What is the difference between wrongful and fraudulent trading in LW?

Fraudulent trading requires dishonest intent to defraud creditors and carries civil and criminal liability. Wrongful trading does not require dishonesty; it arises where a director kept trading when they knew or ought to have known there was no reasonable prospect of avoiding insolvent liquidation.

How long should I study for ACCA LW?

Many candidates spend roughly 100 to 150 study hours on LW, often over 8 to 12 weeks part time. The amount depends on prior legal knowledge and how much objective-test practice is completed before the exam.

100+ Free ACCA LW Practice Questions

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