MRL3701 EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026/2027 Q&A
Question 1
What is the legal term for the principle that all creditors of an insolvent
estate have equal rights to share in the proceeds of the estate assets?
A. Pari passu
B. Cession in securitatem debiti
C. Concursus creditorum
D. Solventia
C
RATIONALE: Concursus creditorum is the principle whereby all creditors
of an insolvent estate have equal rights to share in the proceeds of the
estate assets. This ensures that no creditor receives preferential
treatment over others.
Question 2
Under Section 8 of the Insolvency Act 24 of 1936, which act of
insolvency occurs when a debtor makes a disposition of property that
would have the effect of prejudicing creditors?
A. Section 8(a)
B. Section 8(b)
,C. Section 8(c)
D. Section 8(d)
B
RATIONALE: Section 8(b) provides that a debtor commits an act of
insolvency by making a disposition of property that would have the
effect of prejudicing creditors. This provision addresses fraudulent
conveyances.
Question 3
Who has the authority to appoint a trustee in an insolvent estate?
A. The Sheriff
B. The Master of the High Court
C. The creditors
D. The debtor
B
RATIONALE: The Master of the High Court is responsible for appointing
a trustee in an insolvent estate. The trustee must be properly qualified
and is subject to the supervision of the Master.
Question 4
What is the minimum period for which a debtor must be rehabilitated
to obtain a certificate of rehabilitation?
A. 1 year
B. 2 years
,C. 3 years
D. 4 years
D
RATIONALE: The Insolvency Act requires a minimum period of 4 years
from the date of sequestration before a debtor can apply for
rehabilitation, unless the debtor meets the requirements for early
rehabilitation.
Question 5
Which constitutional provision has been used to challenge the
Insolvency Act's provisions regarding the right of access to adequate
housing?
A. Section 26 of the Constitution
B. Section 27 of the Constitution
C. Section 9 of the Constitution
D. Section 10 of the Constitution
B
RATIONALE: Section 27 of the Constitution provides the right of access
to adequate housing. This provision has been used to challenge
Insolvency Act provisions that may result in the eviction of insolvent
debtors from their homes.
Question 6
In terms of labour law, what is the control test used to determine?
, A. Whether an employee is entitled to overtime pay
B. Whether a person is an employee or an independent contractor
C. Whether a dismissal was automatically unfair
D. Whether a strike is protected
B
RATIONALE: The control test is used to determine whether a person is
an employee or an independent contractor. The test examines the
degree of control the employer exercises over the person performing
the work.
Question 7
What is the time limit for referring an unfair dismissal dispute to the
CCMA?
A. 15 days
B. 30 days
C. 60 days
D. 90 days
B
RATIONALE: Section 191(1) of the Labour Relations Act requires that
unfair dismissal disputes must be referred to the CCMA within 30 days
of the date of dismissal. Failure to do so generally bars the claim unless
condonation is granted.
Question 8
(VERIFIED ANSWERS) PLUS RATIONALES 2026/2027 Q&A
Question 1
What is the legal term for the principle that all creditors of an insolvent
estate have equal rights to share in the proceeds of the estate assets?
A. Pari passu
B. Cession in securitatem debiti
C. Concursus creditorum
D. Solventia
C
RATIONALE: Concursus creditorum is the principle whereby all creditors
of an insolvent estate have equal rights to share in the proceeds of the
estate assets. This ensures that no creditor receives preferential
treatment over others.
Question 2
Under Section 8 of the Insolvency Act 24 of 1936, which act of
insolvency occurs when a debtor makes a disposition of property that
would have the effect of prejudicing creditors?
A. Section 8(a)
B. Section 8(b)
,C. Section 8(c)
D. Section 8(d)
B
RATIONALE: Section 8(b) provides that a debtor commits an act of
insolvency by making a disposition of property that would have the
effect of prejudicing creditors. This provision addresses fraudulent
conveyances.
Question 3
Who has the authority to appoint a trustee in an insolvent estate?
A. The Sheriff
B. The Master of the High Court
C. The creditors
D. The debtor
B
RATIONALE: The Master of the High Court is responsible for appointing
a trustee in an insolvent estate. The trustee must be properly qualified
and is subject to the supervision of the Master.
Question 4
What is the minimum period for which a debtor must be rehabilitated
to obtain a certificate of rehabilitation?
A. 1 year
B. 2 years
,C. 3 years
D. 4 years
D
RATIONALE: The Insolvency Act requires a minimum period of 4 years
from the date of sequestration before a debtor can apply for
rehabilitation, unless the debtor meets the requirements for early
rehabilitation.
Question 5
Which constitutional provision has been used to challenge the
Insolvency Act's provisions regarding the right of access to adequate
housing?
A. Section 26 of the Constitution
B. Section 27 of the Constitution
C. Section 9 of the Constitution
D. Section 10 of the Constitution
B
RATIONALE: Section 27 of the Constitution provides the right of access
to adequate housing. This provision has been used to challenge
Insolvency Act provisions that may result in the eviction of insolvent
debtors from their homes.
Question 6
In terms of labour law, what is the control test used to determine?
, A. Whether an employee is entitled to overtime pay
B. Whether a person is an employee or an independent contractor
C. Whether a dismissal was automatically unfair
D. Whether a strike is protected
B
RATIONALE: The control test is used to determine whether a person is
an employee or an independent contractor. The test examines the
degree of control the employer exercises over the person performing
the work.
Question 7
What is the time limit for referring an unfair dismissal dispute to the
CCMA?
A. 15 days
B. 30 days
C. 60 days
D. 90 days
B
RATIONALE: Section 191(1) of the Labour Relations Act requires that
unfair dismissal disputes must be referred to the CCMA within 30 days
of the date of dismissal. Failure to do so generally bars the claim unless
condonation is granted.
Question 8
