Applied Business Law

Question 1

What is the primary purpose of business law principles in South Africa?

Answer 1

Creating a fair, transparent, and stable business environment

Business law principles are fundamental to the smooth and ethical operation of any business.

Question 2

List three key aspects that business law governs in business activities.

Answer 2

• Rights and responsibilities of parties involved
• Business transactions
• Ethical conduct in the marketplace

Question 3

True or False: Business law promotes exploitation and unfair competition.

Answer 3

False

Business law promotes fairness in business dealings.

Question 4

What does business law provide mechanisms for?

Answer 4

Resolving disputes through negotiation, mediation, or litigation

This helps to minimize disruptions and maintain business relationships.

Question 5

Fill in the blank: Business law safeguards the rights of all stakeholders, including _______.

Answer 5

[consumers, employees, businesses]

Question 6

What are the protections afforded to consumers under business law?

Answer 6

Protection from unfair or deceptive practices

This ensures that consumers are treated fairly in the marketplace.

Question 7

What must a credit provider assess under the statutory framework for reckless lending?

Answer 7

• Consumer’s general understanding of risks and costs
• Debt repayment history
• Existing financial means

Question 8

The Act allows credit providers to determine what regarding their assessment obligations?

Answer 8

Their own evaluative mechanisms or models and procedures

These must be fair, objective, and not in conflict with affordability assessment regulations.

Question 9

According to business law, how does it protect businesses?

Answer 9

By safeguarding their intellectual property, contracts, and other assets

This encourages investment and innovation by reducing uncertainty and risk.

Question 10

What is the significance of ethical standards in business law?

Answer 10

Fostering trust and integrity in the marketplace

Ethical standards are essential for maintaining fairness in business dealings.

Question 11

True or False: The Prevention and Combating of Corrupt Activities Act is one of the statutes that override the duty of secrecy.

Answer 11

True

Question 12

Name one act that contains provisions overriding the duty of secrecy.

Answer 12

The Attorneys Act

Other examples include the FiCA and the Bill of Exchange Act.