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100+ Free ICAEW ACA Business Law Practice Questions

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A commercial organisation can defend the corporate offence of failing to prevent bribery under the Bribery Act 2010 if it can show that it had in place:

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Key Facts: ICAEW ACA Business Law Exam

50

Questions (2 marks each)

ICAEW Business Law Exam Resources

1.5 hrs

Exam Duration

ICAEW Business Law Exam Resources

55%

Pass Mark

ICAEW Business Law Exam Resources

5

Syllabus Areas

Next Generation ACA Syllabus Handbook

English law

Jurisdiction

ICAEW Syllabus

ICAEW ACA Business Law is a 1.5-hour computer-based objective test with 50 questions worth two marks each (multiple choice, multi-part multiple choice and multiple response) and a 55% pass mark, so about 28 correct answers pass. The English-law syllabus weights are: the legal system and impact of civil/criminal law about 10%; contract, agency and obligations about 30%; company and insolvency law about 30%; employment, tort and business ownership about 20%; and professional, ethical and legal responsibilities including bribery, money laundering and fraud about 10%. The module is renamed Business Law under the Next Generation ACA.

Sample ICAEW ACA Business Law Practice Questions

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

1Under the English legal system, which source of law takes precedence where a statute and an earlier conflicting common law rule both apply?
A.The statute, because Acts of Parliament prevail over inconsistent common law
B.The common law rule, because it is older and established by judges
C.Whichever rule the parties agree should apply
D.The European Convention on Human Rights in all cases
Explanation: Parliamentary supremacy means an Act of Parliament (statute) overrides any conflicting common law (judge-made) rule. Courts must apply the statute even where established case law previously governed the point.
2In the English court hierarchy, a decision of which court is binding on the High Court but can itself be overruled only by the Supreme Court?
A.The County Court
B.The Court of Appeal
C.The Magistrates' Court
D.The Crown Court
Explanation: Under the doctrine of judicial precedent, Court of Appeal decisions bind the High Court and lower courts. Only the Supreme Court (or, in limited cases, the Court of Appeal departing from its own earlier decision) can overrule the Court of Appeal.
3Which statement best distinguishes criminal law from civil law in an English business context?
A.Criminal cases are brought by the claimant to obtain damages
B.Civil law imposes punishment such as imprisonment on offenders
C.Criminal law concerns wrongs against society prosecuted by the state, while civil law resolves disputes between parties
D.There is no difference in the standard of proof between them
Explanation: Criminal law addresses conduct deemed harmful to society and is prosecuted by the state, with the aim of punishment. Civil law governs disputes between private parties (such as breach of contract) and aims to compensate the injured party.
4What is the standard of proof a claimant must satisfy to succeed in a civil claim in England?
A.Beyond reasonable doubt
B.To absolute certainty
C.Beyond any possible doubt
D.On the balance of probabilities
Explanation: In civil litigation the claimant must prove their case 'on the balance of probabilities' — that is, more likely than not (over 50%). This is a lower threshold than the criminal standard.
5Human rights are given effect in domestic UK law primarily through which statute?
A.The Human Rights Act 1998
B.The Companies Act 2006
C.The Bribery Act 2010
D.The Equality Act 2010
Explanation: The Human Rights Act 1998 incorporates the rights in the European Convention on Human Rights into UK domestic law, requiring courts to interpret legislation compatibly with Convention rights where possible.
6Which of the following is an example of delegated (secondary) legislation in English law?
A.An Act of Parliament
B.A statutory instrument made by a minister under powers in an Act
C.A judgment of the Supreme Court
D.A clause in a private commercial contract
Explanation: Delegated legislation is law made by a body other than Parliament under authority conferred by an enabling Act. Statutory instruments made by ministers are the most common form.
7In statutory interpretation, which rule requires the court to give words their ordinary, plain meaning even if the result seems harsh?
A.The mischief rule
B.The golden rule
C.The literal rule
D.The purposive approach
Explanation: The literal rule requires the court to apply the ordinary, natural meaning of statutory words. The golden rule modifies this only to avoid an absurd result, and the mischief rule looks at the defect the statute aimed to remedy.
8Which civil court generally hears higher-value and more complex commercial claims at first instance in England and Wales?
A.The County Court
B.The Magistrates' Court
C.The Supreme Court
D.The High Court
Explanation: The High Court hears higher-value and more complex civil claims at first instance, with divisions including the King's Bench, Chancery and Family. The County Court deals with lower-value civil matters.
9What does the Latin term 'ratio decidendi' refer to in the doctrine of precedent?
A.The binding legal reason for a court's decision
B.A comment made in passing that is not binding
C.The dissenting judge's opinion
D.The amount of damages awarded
Explanation: The ratio decidendi is the legal principle on which a decision is based; it forms the binding part of the precedent. Other remarks (obiter dicta) are persuasive but not binding.
10Alternative dispute resolution (ADR) is often preferred to litigation in business disputes mainly because it is generally:
A.Always legally binding regardless of method
B.Cheaper, quicker and more confidential
C.Conducted exclusively in open court
D.Only available for criminal matters
Explanation: ADR methods such as mediation and arbitration are typically faster, less costly and more private than court litigation, which helps preserve commercial relationships. Only some forms (e.g. arbitration) produce a binding outcome.

About the ICAEW ACA Business Law Exam

ICAEW ACA Certificate Level Business Law (the Law module, renamed under the Next Generation ACA) tests English law for business: the legal system, contract and agency, company and insolvency law, employment and tort, and the professional, ethical and criminal-law responsibilities around bribery, money laundering and fraud.

Questions

50 scored questions

Time Limit

1.5 hours (90 minutes)

Passing Score

55%

Exam Fee

Set by ICAEW per-module and annual registration fees; confirm in the current ICAEW fee schedule (Institute of Chartered Accountants in England and Wales (ICAEW))

ICAEW ACA Business Law Exam Content Outline

10%

The English legal system and impact of civil and criminal law

Sources of law, court hierarchy, judicial precedent, statutory interpretation, civil versus criminal law, standard of proof, human rights and alternative dispute resolution.

30%

Contract, agency and the law of obligations

Offer, acceptance, consideration, intention, terms, exclusion clauses, misrepresentation, breach, remedies, discharge, frustration, and agency and authority.

30%

Company and insolvency law

Separate legal personality, formation, share capital, directors' duties, resolutions, capital maintenance, charges, administration, liquidation and wrongful trading.

20%

Employment, tort and the legal implications of business ownership

Employment status and rights, dismissal, discrimination, negligence, duty of care, vicarious liability, and sole trader, partnership, LLP and company structures.

10%

Professional, ethical and legal responsibilities

ICAEW Code of Ethics, threats and safeguards, confidentiality, data protection, and the criminal law on bribery, money laundering and fraud.

How to Pass the ICAEW ACA Business Law Exam

What You Need to Know

  • Passing score: 55%
  • Exam length: 50 questions
  • Time limit: 1.5 hours (90 minutes)
  • Exam fee: Set by ICAEW per-module and annual registration fees; confirm in the current ICAEW fee schedule

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

ICAEW ACA Business Law Study Tips from Top Performers

1Allocate study time to the weightings: contract and company law are about 30% each, so prioritise them.
2Learn the key statutes and leading cases (for example Salomon, Donoghue v Stevenson, Caparo and Hadley v Baxendale) by the rule they establish.
3Practise applying rules to short scenarios, since many questions give facts and ask for the correct legal outcome.
4Memorise statutory thresholds and procedures, such as the 75% special resolution and the 21-day charge registration period.
5Drill the ethics, bribery, money laundering and fraud rules, which carry about 10% but are quick marks if learned precisely.
6Sit full 50-question timed mocks to rehearse the 1.5-minute-per-question pace and aim comfortably above 55%.

Frequently Asked Questions

How many questions are on the ICAEW ACA Business Law exam?

The Business Law exam has 50 questions worth two marks each, presented as multiple choice, multi-part multiple choice or multiple response. The exam lasts 1.5 hours, so candidates have about 1.5 minutes per question.

What is the ICAEW ACA Law pass mark?

The pass mark for the Business Law module is 55%. Because the exam is marked out of 100 (50 questions worth two marks each), candidates need the equivalent of about 28 questions correct to pass.

What does the ICAEW Business Law syllabus cover?

It covers the English legal system, contract and agency, company and insolvency law, employment and tort, and professional and ethical responsibilities including bribery, money laundering and fraud. The questions are based on English law.

Has the ICAEW Law module changed under the Next Generation ACA?

Yes. Under the Next Generation ACA the Certificate Level Law module is renamed Business Law. The format remains a 1.5-hour computer-based objective test of 50 questions worth two marks each with a 55% pass mark.

How long should I study for ICAEW Business Law?

Most students spend roughly 70 to 90 hours across tuition, question practice and revision. There are no calculations, so success depends on learning the legal rules and applying them to short scenarios.

Is the ICAEW Business Law exam based on English law?

Yes. The module is based on the law of England and Wales, covering the English legal system, English contract and company law, and UK statutes such as the Bribery Act 2010, Companies Act 2006 and Proceeds of Crime Act 2002.