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 4Question 04
    Medium2 marksMultiple Choice
    Corporate and Business LawSection ASyllabus BObligations

    ACCA · Question 04 · Corporate and Business Law

    QuantumLeap Tech, a startup, displays a highly specialized server rack on its website with a price tag of £500. Due to a coding error, the price should have been £5,000. A customer, DataHost Ltd, places an order for the server rack at £500. Which of the following statements accurately describes the legal position?

    Answer options:

    A.

    The website display is a binding offer which DataHost Ltd has accepted, forming a contract.

    B.

    The website display is an invitation to treat; DataHost Ltd has made an offer which QuantumLeap Tech can reject.

    C.

    A contract is formed, but it is voidable due to unilateral mistake.

    D.

    The website display is a unilateral offer to the world, accepted by the act of ordering.

    How to approach this question

    Apply the legal distinction between an offer and an invitation to treat in the context of online retail.

    Full Answer

    B.The website display is an invitation to treat; DataHost Ltd has made an offer which QuantumLeap Tech can reject.✓ Correct
    In contract law, displaying goods on a website is generally considered an invitation to treat, not an offer. When the customer places an order, they are making the offer. The seller (QuantumLeap Tech) can choose whether to accept or reject this offer, protecting them from pricing errors.

    Common mistakes

    Assuming that a price tag or website listing constitutes a legally binding offer.
    Question 03All questionsQuestion 05

    Practice the full ACCA LW — Corporate and Business Law Practice Exam 4

    60 questions · hints · full answers · grading

    Sign up freeTake the exam

    More questions from this exam

    Q01AgriGrow Ltd, a large-scale agricultural technology firm, is pursuing a complex breach of contrac...MediumQ02In the context of judicial precedent, the Court of Appeal (Civil Division) is generally bound by ...MediumQ03Under the Human Rights Act 1998, what action must a UK court take if it finds that a piece of pri...MediumQ05A cross-border logistics company, TransGlobal Freight, urgently asks an independent consultant to...HardQ06EcoBuild Ltd contracts to construct a sustainable community center for a local NGO, with work to ...Medium
    View all 60 questions →