1. Which of the following statements relating to the law of contract are correct?

1. Exemption clauses can be inserted up to seven days after the contract is made
2. Once made, an offer cannot be withdrawn
3. Acceptance of an offer must be communicated
4. All contracts must be in writing
5. Both parties to a contract must offer some consideration

2. Mr and Mrs Jones are the only shareholders in Acme Transport Ltd which has a contract to provide transport between Birmingham and London. Mr and Mrs Jones sell their shareholding to Mr and Mrs Green. Insofar as the contract is concerned, Acme Transport Ltd

3. Which of the following would be an advantage to a road haulier if included in her conditions of carriage?

1. A clause preventing trans-shipment
2. A clause allowing sub contracting
3. A clause making the haulier liable for damage caused by the consignor
4. A clause limiting the haulier’s liability for loss or damage to the goods

4. A UK operator is engaged on a hire and reward journey from the UK to Germany, carrying a full load (25 tonnes) of electrical products with a total value of £200,000. On unloading at the delivery point, the consignee discovers damage to half of the consignment and endorses the load documentation accordingly. Under the CMR Convention, what is the maximum amount which the haulier might have to pay in compensation for the damage? Assume the value of one SDR is £1.00.

5. The rights of various classes of shareholders in a limited company must be contained in its

6. Three individuals wish to set up in business together. They want minimal formation formalities and are each prepared to accept all of the responsibilities and liabilities that the business might incur. Which of these business types is likely to be the most appropriate?

7. Under company law, a private limited company cannot start a business before which of the following have been achieved?

1. The Registrar of Companies has issued its Certificate of Incorporation
2. Public Liability Insurance cover has been taken out
3. Planning permission has been obtained from the Local Authority
4. A director has been appointed

8. Every limited company must show on its letterhead

1. VAT registration number
2. UK country of registration
3. Company registration number
4. Address of the registered office
5. List of directors

9. Employment tribunals will hear complaints arising from which of the following employment related issues?

1. Appeals against the issue of improvement notices
2. Discrimination against disabled people
3. Night out allowance tax relief for drivers employed in the industry
4. Equal pay
5. Workers claiming the company’s recognised trade union is not independent
6. Racial discrimination

10. A driver is a school governor and has to attend committee meetings from time to time during normal working hours. Under Employment Protection Legislation

11. An employer wishes to dismiss a number of employees. Which of the following statements relating to statutory periods of notice are correct?

1. One week’s notice is required regardless of the amount of time employed
2. One week’s notice must be given when an employee has worked more than one month but less than one year
3. Four weeks’ notice would have to be given to an employee who has been employed for four years
4. Fifteen weeks’ notice would have to be given to an employee who has been employed for fifteen years

12. Which of the following bodies has the right to appoint safety representatives within a company that has a unionised workforce?

13. Which of the following must be paid to HMRC by a self employed worker in the transport industry, earning approximately £30,000 per year?

1. PAYE
2. Class 1 National Insurance contributions
3. Class 2 National Insurance contributions
4. Class 4 National Insurance contributions
5. Income tax

14. A driver is on an international journey from the Midlands to the Republic of Ireland, using the Liverpool-Dublin ferry. On Day One, the driver makes a number of collections in the UK and arrives at the Liverpool ferry terminal at 13.00. The driver takes 30 minutes to embark the ferry and then commences a daily rest. At 21.00 the driver leaves his cabin to disembark the vehicle. This will take until 21.30. After disembarkation the driver will resume his daily rest in the vehicle. What is the earliest time at which he can recommence driving on Day Two?

15. Which of the following statements relating to Regulation EC 561/2006 are correct as they apply to a goods vehicle driver on a single-manned journey from Dundee to Southern France, using the Channel Tunnel?

1. 1. After 4½ hours continuous driving, a minimum break of 30 minutes must be taken
2. 2. The driver is permitted to take a daily rest in two separate periods
3. 3. Daily driving periods of 10 hours each could be completed on two days of the week
4. 4. An uninterrupted daily rest period may be reduced to 8 hours provided that compensation is made before the end of the following week

16. In respect of digital tachographs, for which of the following purposes can company digital cards be used?

17. Under the provisions of the Road Transport (Working Time) Regulations 2005, which of the following limits applies?

1. 65 hours’ working time in any one week
2. 48 hours’ working time per week averaged over the reference period
3. No more than 6 hours’ work without a break
4. No more than 4.5 hours’ work without a break
5. 60 hours’ working time in any one week

18. A UK road transport operator is registered for VAT. During a quarter’s trading, the following figures (all excluding VAT) are recorded: How much VAT must the operator remit to HM Revenue and Customs for this quarter’s trading?

1. Sales £800,000
2. Fuel purchases £200,000
3. Drivers’ wages £180,000
4. Outside maintenance contractor (VAT registered) £ 70,000

19. Which of the following would be legitimate uses of a trade licence, used in connection with a new, untaxed goods vehicle?

1. To demonstrate the vehicle to a potential customer
2. To deliver goods to a customer following a breakdown of the original vehicle scheduled
3. To deliver the vehicle to a purchaser
4. To check the vehicle’s unladen weight

20. Which European country has an electronic road charging system known as the LKW Maut?

21. Which of the following items are shown on a company’s trading account?

22. Which of the following statements relating to Corporation Tax are correct?

1. Corporation Tax is levied on gross profits
2. All partnerships, private limited companies and public limited companies are liable to pay Corporation Tax
3. Corporation Tax is payable to HM Revenue and Customs
4. Any Corporation Tax due must generally be paid within nine months of the end of the business’ financial year

23. The document which a supplier of goods or services sends to a customer, summarising the accumulated amount the customer owes to the supplier at a particular date, is called

24. Which of the following would be considered to be short term sources of finance for a limited company?

1. Two year bank loan
2. Taxation provision
3. Creditors
4. Debtors

25. When analysing a balance sheet, which of the following are classed as liquid assets?

1. Cash
2. Debtors
3. Creditors
4. Plant and equipment
5. Parts stocks

26. A transport company’s Profit and Loss Account records

27. To calculate a company’s gross profit, which of the following items of information would be required?

1. The direct costs
2. The total turnover
3. The indirect costs
4. The current assets

28. A company has the following information in its balance sheet:

1. Machinery, Plant & Equipment £100,000
2. Current Assets £140,000
3. Current Liabilities £ 90,000
4. Vehicles £200,000

29. The following financial information relating to a company is available: current assets, current liabilities and the value of the stock. Which of the financial indicators listed below could be calculated from this information?

1. Current Ratio (Working Capital Ratio)
2. Acid Test Ratio (Quick Asset Ratio)
3. Total Capital Employed
4. Return on Capital Employed

30. A transport company is preparing a marketing plan. Which of the following statements are correct?

1. Advertising is just one part of marketing
2. A marketing plan must always cover at least five years
3. The results of market research are likely to be used in producing a marketing plan
4. A marketing plan should be regularly monitored and reviewed

31. Third party motor insurance must provide cover for

32. What is the purpose of the EHIC?

33. Which of the following technologies would assist a road transport operator in the parcels sector to track individual consignments?

1. ANPR
2. RFID
3. Barcodes
4. CANbus

34. A UK transport and shipping company is contracted to arrange the export of machinery from the UK to a destination in Norway. The customer in Norway wants the seller in the UK to remain responsible for all aspects of the journey until the goods arrive at the specified Norwegian port. The most appropriate Incoterm for this transaction would be

35. In respect of organisations providing ancilliary services to the road haulage industry, which of the following statements are true?

1. A clearing house provides financial payment services
2. A groupage operator brings together the goods of several consignors to make up a full load
3. A clearing house may offer a back-loading service
4. A freight forwarder acts on behalf of consignors by arranging transport and other services
5. A sub-contracted carrier is normally directly responsible to the sender of the goods for delays in delivery of the goods
6. Most freight forwarders operate a ‘hub and spoke’ distribution system

36. A company holds a restricted Operator Licence. This permits it to

37. On 4 October, an Operator Licence applicant advertised the application for a Standard National Operator Licence in the local newspaper. The Traffic Commissioner received representations from: All were on environmental grounds and all lived in the vicinity of the applicant’s operating centre. The Traffic Commissioner MUST take into account those from

1. Resident ‘A’ on 19 October
2. Resident ‘B’ on 28 October
3. Resident ‘C’ on 29 October
4. Resident ‘D’ on 30 October

38. Which of the following items form part of the standard undertakings which a transport company must make when submitting an application for a new Operator Licence?

1. The company will meet the environmental standards ISO 14001
2. The company’s vehicles will operate within the speed limits
3. Maintenance records will be kept for at least 12 months
4. The rules concerning drivers’ hours and records will be obeyed
5. There will be a system for reporting and rectifying defects

39. A person makes a representation in respect of an application for an Operator Licence. Identify which of the following statements are true.

1. A representor may appeal in his own right against the Traffic Commissioner’s decision
2. Representations must be made within 21 days of the application appearing in Applications and Decisions
3. A representor must send a copy of his representations to the applicant
4. A representor must own or occupy property in the vicinity of the proposed operating centre

40. OCR Haulage Limited has a Standard National Operator Licence permitting it to operate 12 rigid goods vehicles from its operating centre in Cardiff. After two years of operating from this centre, a nearby resident writes to the Traffic Commissioner complaining of noise caused by vehicle movements. What action is likely to be taken by the Traffic Commissioner?

41. An operator has Operator Licences in both the Scottish and North Eastern Traffic Areas. The operator wishes to transfer an authorised vehicle from Scotland to an operating centre in the North East. What is the maximum amount of time that the vehicle may remain in the North East before the Traffic Commissioner is informed and a formal transfer requested?

42. A UK operator has a Standard International Operator Licence. It authorises the operation of 35 vehicles on the road currently plus a margin of a further five vehicles. How many Community Licence documents will be issued to the operator?

43. What is the main purpose of an ECMT multilateral haulage permit and for how long is one valid?

44. In the UK, an operator could obtain TIR carnets from which of the following organisations?

45. A UK driver would need a visa in order to enter which of the following countries?

46. An operator has agreed to carry a long load for a customer which will project beyond the rear of the vehicle. Under Construction and Use Regulations, what is the maximum projection possible before the operator needs to fit a rear marker board to the load?

47. Currently, the height limit in Germany for a goods vehicle is

48. When drawing up the specification for the future purchase of a new 44 tonne GVW vehicle, which of the following features would assist in improving likely fuel economy?

1. Bio-diesel fuel system
2. Air management system
3. Aluminium wheels
4. Additional axles

49. A vehicle which has failed its annual test may be re-submitted to the same test station. Normally only the defective items will be re-examined, provided the vehicle is re-tested within a maximum period of

50. A driver is examining her vehicle’s tyres as part of her daily walkround checks. Which tyre conditions from the following list would render a tyre intended for use on a vehicle of 18,000kg GVW illegal for use on the road?

1. Tread depth of 1.3mm across the full breadth of the tyre
2. Incorrectly inflated
3. A cut of 15mm which represents 8% of the tyre width
4. A bulge caused by separation of the tyre structure
5. A part of a tyre cord being exposed

51. The Code of Practice on the Safe Loading of Vehicles states that to prevent movement of the payload in a sideways direction, a load restraint device should be capable of withstanding a force equal to

52. A 44 tonne GVW articulated road tanker is scheduled to carry a full load of a single corrosive substance from Runcorn in the UK to Ghent in Belgium, crossing the Channel using the Dover-Calais ferry. With regard to vehicle marking, which requirements will have to be met for each leg of the journey (Runcorn to Dover, Dover to Calais and Calais to Ghent)?

1. UK tanker marking requirements must be met for all three legs of the journey
2. UK tanker marking requirements must be met for the journey from Runcorn to Dover only
3. ADR tanker marking requirements must be met for all road journey legs, in both the UK and abroad
4. IMDG tanker marking requirements must be met for the ferry crossing
5. ADR tanker marking requirements must be met for the road journey between Calais and Ghent only
6. IMDG tanker marking requirements must be met for the whole journey, both road and sea legs

53. Which of the following statements relating to the UK carriage of foodstuffs for human consumption are correct?

1. Chilled goods must be carried at a maximum of + 8°C
2. Quick frozen goods must be carried at a maximum of - 8°C
3. Tankers must be marked ‘For Foodstuffs Only’
4. Records from temperature recording equipment must be kept for at least 15 months

54. An operator is planning a journey carrying perishable foodstuffs in a refrigerated vehicle from Newcastle upon Tyne to Lisbon in Portugal, using the Plymouth to Santander ferry crossing. Which parts of the journey will be subject to the ATP Agreement?

1. The UK road journey from Newcastle to Plymouth (550km)
2. The ferry journey from Plymouth to Santander (800km)
3. The Spanish road journey from Santander to the Portuguese border (500km)
4. The Portuguese road journey from the Spanish border to Lisbon (200km)

55. Provided that they are offered water at appropriate intervals during the journey, pigs may be transported for a maximum of

56. If a UK driver needed an International Driving Permit, from which of the following organisations could one be obtained?

1. DVLA, Swansea
2. VOSA Central Licensing Office, Leeds
3. AA
4. Any UK insurance company
5. Green Flag

57. A person holding a Category C vocational entitlement but not Category E may drive a vehicle towing a trailer with a maximum authorised mass not exceeding a threshold of

58. Which yellow line markings would indicate to drivers a total prohibition on loading and unloading in that area?

59. Which of the following countries impose blanket prohibitions on the movement of large goods vehicles for periods of time over weekends and public holidays?

1. Germany
2. Spain
3. Netherlands
4. Belgium
5. Italy

60. The Road Traffic Act 1988 requires drivers involved in accidents to provide certain items of information at the scene. In the case of a minor accident where no personal injury is involved, which of the following must be produced at the scene in order to preclude the need for any reporting to the police?

1. The driver’s name and address
2. The driver’s licence
3. The certificate of insurance
4. The vehicle owner’s name and address
5. The registration number of the vehicle