Business Law: Trusts and ADR Overview

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Questions and Answers

Which type of trust is primarily established for the benefit of specific individuals rather than the public?

Custodian Trust

Private Trust (correct)

Public Trust

Judicial Trust

What is the primary responsibility of a trustee in managing a trust?

To promote personal interests

To communicate only with beneficiaries

To eliminate all risks associated with trust management

To manage the trust assets in the best interest of beneficiaries (correct)

Which of the following is NOT a recognized type of Alternative Dispute Resolution (ADR)?

Arbitration

Negotiation

Litigation (correct)

Mediation

Which of the following best describes the benefit of using Alternative Dispute Resolution (ADR) over traditional litigation?

ADR processes are often quicker and less expensive Signup and view all the answers

What is the likely outcome when a trust is terminated?

The trust obligations cease, and the assets revert to the grantor or beneficiaries Signup and view all the answers

Which of the following rights do beneficiaries NOT have under a trust?

Right to alter the terms of the trust Signup and view all the answers

Which type of trust operates primarily for charitable purposes and benefits the public at large?

Public Trust Signup and view all the answers

Which legal mechanism offers flexibility in resolving disputes without resorting to litigation?

Mediation Signup and view all the answers

Which organizations are acknowledged for their financial commitment and release of staff for the programme?

Institute of Chartered Accountants of Nigeria, Liberia Institute of Certified Public Accountants Signup and view all the answers

What is the primary purpose for which the organizations granted permission for the use of intellectual properties?

For educational and training materials in the Study Texts Signup and view all the answers

Who chaired the ATSWA Examinations Committee according to the content provided?

Chief Mrs. Hilda Ozoh Signup and view all the answers

What significant change was made to the ATSWA Examinations as of September 2022?

Approval of a new syllabus Signup and view all the answers

Which body was responsible for approving the new syllabus for the ATSWA Examinations?

ABWA Council Signup and view all the answers

Which individual was mentioned as a writer and reviewer in the study text?

Professor O.O.Oladele Signup and view all the answers

What publication or materials does the International Federation of Accountants contribute to?

Various publications related to accounting standards Signup and view all the answers

What type of jurisdiction does the High Court have?

Unlimited original jurisdiction in both civil and criminal matters Signup and view all the answers

Which of the following is a requirement for a legal practitioner to become a judge of the High Court?

Must have at least ten years of experience at the Bar Signup and view all the answers

What role did the Editorial Board members assume in relation to the Study Texts?

They supervised a comprehensive review of the Study Texts Signup and view all the answers

What jurisdiction does the Sharia Court of Appeal exercise?

Appellate and supervisory jurisdiction in civil proceedings related to Islamic personal law Signup and view all the answers

What is the composition of the National Industrial Court according to the Constitution?

The President and four ordinary members Signup and view all the answers

Which court is responsible for issues related to bankruptcy and insolvency?

High Court Signup and view all the answers

What type of matters does the High Court handle with respect to inferior courts?

Appellate jurisdiction on decisions from inferior courts Signup and view all the answers

Which of the following is NOT an essential element of a valid contract?

Profit-sharing arrangement Signup and view all the answers

What distinguishes a void contract from an illegal contract?

Void contracts exist but have no legal effect, illegal contracts are unlawful. Signup and view all the answers

Which of the following matters does NOT fall under the jurisdiction of the High Court?

Local government election disputes Signup and view all the answers

Under what condition can a State establish a Sharia Court of Appeal?

If it desires to address matters related to Islamic law Signup and view all the answers

In the context of agency, which statement about the authority of agents is FALSE?

Agents' actions always bind the principal in all situations. Signup and view all the answers

Which of the following factors can vitiate a contract?

Mutual mistake Signup and view all the answers

What is a primary characteristic of torts?

They result in civil liability. Signup and view all the answers

Which of the following best describes privity of contract?

Only parties directly involved can enforce or be bound by a contract. Signup and view all the answers

Which remedy is NOT typically available for breach of contract?

Criminal penalties Signup and view all the answers

Which source of law primarily governs common law jurisdictions?

Judicial precedent Signup and view all the answers

What distinguishes the purpose of civil law from criminal law?

Civil law aims at compensating an injured person while criminal law focuses on punishing wrongdoing. Signup and view all the answers

What is the primary difference in the standard of proof between criminal and civil law?

Criminal law requires proof beyond reasonable doubt while civil law uses preponderance of evidence. Signup and view all the answers

Which statement is true regarding the limitation periods for legal actions in civil and criminal law?

Civil cases must be brought within the limitation period that ranges from six to twelve years. Signup and view all the answers

Who prosecutes criminal cases, and how does this differ from civil cases?

Criminal cases are prosecuted by the State, whereas civil cases can be initiated by any individual with a grievance. Signup and view all the answers

What is a key characteristic of a tort?

A tort results in civil penalties for an injured party without involving the State. Signup and view all the answers

Study Notes

Uses of Trusts

Trusts are legal arrangements used to manage assets for the benefit of beneficiaries.
Types of trusts include private, public, judicial, trust corporations, and custodian trusts.

Duties and Powers of Trustees

Trustees have fiduciary responsibilities to manage trust property prudently.
They must act in the best interest of beneficiaries and comply with the terms of the trust.

Rights of Beneficiaries

Beneficiaries have rights to trust information, distributions, and to hold trustees accountable.

Termination of Trusts

Trusts can be terminated based on conditions specified in the trust deed or by agreement among beneficiaries.

Alternative Dispute Resolution (ADR)

ADR includes mechanisms like mediation and arbitration aimed at resolving disputes without litigation.
It is generally more cost-effective and faster than traditional court proceedings.

Syllabus and Examination Structure

The Business Law syllabus includes understanding the legal environment for organizations and accounting law.
Exam consists of a three-hour paper divided into compulsory multiple-choice and short-answer questions, along with a choice of longer-form questions.

Legal System Overview

Understanding sources of law, including constitutions, statutes, and judicial precedents.
Distinctions between civil and criminal liability, and the types of torts, including negligence.

Law of Contract

Essential elements of contracts: offer, acceptance, consideration, intention to create legal relations, capacity, and consent.
Distinction between various forms of contracts, including illegal and void contracts.

Special Contracts

Agency contracts involve creation methods and the authority of agents.
Key issues include rights and duties under agency agreements.

Court Systems

Hierarchical structure of courts includes the High Court, Sharia Courts, Customary Courts, and the National Industrial Court.
Each court has specific jurisdiction and functions defined by the Constitution.

Professional Ethics

Understanding tort law is critical; it reflects breaches of personal duties without criminal consequences.
Tort actions primarily result in damages or equitable orders to compensate an aggrieved party.

Examinations and Professional Recognition

Partnerships with various accountancy institutes enhance curriculum quality and relevance.
Acknowledgment of contributions from professionals and bodies involved in syllabus development and examination.

Advantages of ADR

Flexibility in process and scheduling tailored to disputing parties.
Confidentiality of proceedings keeps sensitive information private, unlike court cases which are public.

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Description

This quiz covers essential concepts related to trusts, including their types, the duties of trustees, the rights of beneficiaries, and the process of terminating trusts. Additionally, it explores Alternative Dispute Resolution (ADR) methods, highlighting their benefits in legal proceedings. Test your understanding of these foundational elements in business law.