For IndividualsFor Educators
ExpertMinds LogoExpertMinds
ExpertMinds

Ace your certifications with Practice Exams and AI assistance.

  • Browse Exams
  • For Educators
  • Blog
  • Privacy Policy
  • Terms of Service
  • Cookie Policy
  • Support
  • AWS SAA Exam Prep
  • PMI PMP Exam Prep
  • CPA Exam Prep
  • GCP PCA Exam Prep

© 2026 TinyHive Labs. Company number 16262776.

    PracticeACCAACCA LW — Corporate and Business Law Practice Exam 2Question 48
    Easy2 marksMultiple Choice
    The law of obligationsSection BSyllabus BCorporate and Business Law

    ACCA · Question 48 · The law of obligations

    Scenario: 'AeroDyne Drone Logistics Ltd' negotiates with 'MediSupply Co' to provide vaccine delivery routes. AeroDyne emails: "We offer the Northern route for £50,000 per year." MediSupply replies: "Would you accept payment in 12 monthly installments?" AeroDyne ignores this reply and sells the route to a competitor. MediSupply claims AeroDyne breached the contract. Separately, AeroDyne's standard terms state: "AeroDyne accepts no liability for personal injury caused by drone malfunction, even if due to our negligence."

    Question: Under the Unfair Contract Terms Act (UCTA) 1977, what is the legal validity of AeroDyne's exclusion clause regarding personal injury?

    Answer options:

    A.

    It is valid if it passes the 'reasonableness' test.

    B.

    It is completely void and unenforceable.

    C.

    It is valid because it is a business-to-business (B2B) contract.

    D.

    It is valid if it was clearly brought to the attention of the other party.

    How to approach this question

    Recall the absolute prohibition in UCTA 1977 regarding death or personal injury caused by negligence.

    Full Answer

    B.It is completely void and unenforceable.✓ Correct
    Under section 2(1) of the Unfair Contract Terms Act (UCTA) 1977, a person cannot by reference to any contract term or to a notice given to persons generally or to particular persons exclude or restrict his liability for death or personal injury resulting from negligence. Such clauses are absolutely void.

    Common mistakes

    Applying the 'reasonableness test' to personal injury. The reasonableness test (s.2(2)) only applies to property damage or other loss caused by negligence.
    Question 47All questionsQuestion 49

    Practice the full ACCA LW — Corporate and Business Law Practice Exam 2

    60 questions · hints · full answers · grading

    Sign up freeTake the exam

    More questions from this exam

    Q01A dispute has arisen between 'AquaHarvest Ltd' and a supplier over a £150,000 contract for specia...MediumQ02A judge is interpreting a 19th-century statute regarding 'carriages on the highway' to determine ...MediumQ03Under the Human Rights Act 1998, certain rights can be claimed by corporate entities as well as n...MediumQ04'AeroDyne Drone Logistics Ltd' sends an automated email to a potential client stating: "We can pr...EasyQ05'EcoVertical Farms Ltd' leases a warehouse from a landlord. During a severe economic downturn, th...Hard
    View all 60 questions →