MRL3701 EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026/2027
Q&A | INSTANT DOWNLOAD PDF
Core Domains
• Insolvency Law: Sequestration, Voluntary Surrender, and Compulsory
Sequestration
• Acts of Insolvency under Section 8 of the Insolvency Act 24 of 1936
• The Role and Functions of the Master of the High Court
• Trustees: Appointment, Powers, and Duties
• Creditors' Rights: Proof of Claims, Ranking, and Distribution of Assets
• The Concursus Creditorum and its Legal Implications
• Rehabilitation of Insolvent Debtors
• Constitutional Challenges to Insolvency Legislation (Section 27 and
Section 9(3))
• Labour Law: Employment Contracts, Essentialia, Naturalia, and
Incidentalia
• Unfair Dismissal, CCMA Jurisdiction, and Time Limits
• The Definition of "Employee" and the Control Test
• Winding-Up of Companies and Close Corporations
• Business Rescue and Compromise under the Companies Act 2008
,Introduction
This comprehensive assessment is designed to prepare students for the
MRL3701 (Insolvency Law and Mercantile Law) examination at the University
of South Africa (UNISA). It evaluates knowledge of South African insolvency
law, including sequestration procedures, acts of insolvency, the role of the
Master and trustees, creditors' rights, and rehabilitation. The exam also covers
key aspects of labour law, including employment contracts, unfair dismissal,
and the definition of "employee." The exam employs multiple-choice, fill-in-the-
blank, and scenario-based questions that test both theoretical understanding
and practical application of legal principles. Emphasis is placed on statutory
interpretation, case law analysis, and constitutional compliance to ensure
students are prepared for both academic success and professional legal
practice.
SECTION ONE: QUESTIONS 1–100
Question 1
When a debtor is sequestrated, which official is appointed to administer the
estate and in terms of which legislation?
A. The Sheriff, appointed in terms of the Magistrates' Court Act
B. The Master, appointed in terms of the Administration of Estates Act 66 of
1965
C. The Trustee, appointed in terms of the Insolvency Act 24 of 1936
D. The Liquidator, appointed in terms of the Companies Act
B
RATIONALE: The Master is appointed in terms of the Administration of
Estates Act 66 of 1965 to oversee the administration of insolvent estates. The
Master ensures compliance with the Insolvency Act, appoints trustees,
convenes meetings, and supervises the proper distribution of assets.
,Question 2
Which of the following is the most accurate description of the legal nature of
the employment contract, as defined by the common law?
A. A contract of mandate where the employee represents the employer
B. A contract of partnership where the employee shares in the profits and
losses
C. A reciprocal contract where the employee places their personal services at
the disposal of the employer in exchange for remuneration
D. A contract of suretyship where the employee guarantees the employer's
debts
C
RATIONALE: The common law defines an employment contract as a
reciprocal agreement where the employee renders personal services to the
employer, who in turn is obligated to pay remuneration. This creates a
master-servant relationship.
Question 3
What is the statutory time limit for a dismissed employee to refer an unfair
dismissal dispute to the CCMA?
A. 30 days from the date of the dismissal
B. 60 days from the date of the dismissal
C. 90 days from the date of the dismissal
D. 180 days from the date of the dismissal
A
RATIONALE: Section 191(1)(b)(i) of the Labour Relations Act (LRA)
stipulates that a dismissed employee must refer a dispute to the CCMA within
, 30 days of the date of dismissal. Failure to do so generally bars the claim
unless condonation is granted.
Question 4
What is the main objective of a sequestration order?
A. To punish the debtor for non-payment of debts
B. To secure the orderly and equitable distribution of assets among all
creditors when the debtor is insolvent
C. To discharge the debtor from all debts immediately
D. To transfer all assets to the debtor's spouse
B
RATIONALE: The main objective of a sequestration order is to secure the
orderly and equitable distribution of assets among all creditors when the
debtor is insolvent. It aims to prevent favouritism towards specific creditors.
Question 5
Which act of insolvency is committed if a debtor leaves the Republic with the
intent to evade or delay payment of debts?
A. Section 8(a) of the Insolvency Act
B. Section 8(b) of the Insolvency Act
C. Section 8(c) of the Insolvency Act
D. Section 8(d) of the Insolvency Act
A
RATIONALE: In terms of Section 8(a) of the Insolvency Act, if a debtor
leaves the Republic with the intent to evade or delay payment of debts, it
constitutes an act of insolvency.
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026/2027
Q&A | INSTANT DOWNLOAD PDF
Core Domains
• Insolvency Law: Sequestration, Voluntary Surrender, and Compulsory
Sequestration
• Acts of Insolvency under Section 8 of the Insolvency Act 24 of 1936
• The Role and Functions of the Master of the High Court
• Trustees: Appointment, Powers, and Duties
• Creditors' Rights: Proof of Claims, Ranking, and Distribution of Assets
• The Concursus Creditorum and its Legal Implications
• Rehabilitation of Insolvent Debtors
• Constitutional Challenges to Insolvency Legislation (Section 27 and
Section 9(3))
• Labour Law: Employment Contracts, Essentialia, Naturalia, and
Incidentalia
• Unfair Dismissal, CCMA Jurisdiction, and Time Limits
• The Definition of "Employee" and the Control Test
• Winding-Up of Companies and Close Corporations
• Business Rescue and Compromise under the Companies Act 2008
,Introduction
This comprehensive assessment is designed to prepare students for the
MRL3701 (Insolvency Law and Mercantile Law) examination at the University
of South Africa (UNISA). It evaluates knowledge of South African insolvency
law, including sequestration procedures, acts of insolvency, the role of the
Master and trustees, creditors' rights, and rehabilitation. The exam also covers
key aspects of labour law, including employment contracts, unfair dismissal,
and the definition of "employee." The exam employs multiple-choice, fill-in-the-
blank, and scenario-based questions that test both theoretical understanding
and practical application of legal principles. Emphasis is placed on statutory
interpretation, case law analysis, and constitutional compliance to ensure
students are prepared for both academic success and professional legal
practice.
SECTION ONE: QUESTIONS 1–100
Question 1
When a debtor is sequestrated, which official is appointed to administer the
estate and in terms of which legislation?
A. The Sheriff, appointed in terms of the Magistrates' Court Act
B. The Master, appointed in terms of the Administration of Estates Act 66 of
1965
C. The Trustee, appointed in terms of the Insolvency Act 24 of 1936
D. The Liquidator, appointed in terms of the Companies Act
B
RATIONALE: The Master is appointed in terms of the Administration of
Estates Act 66 of 1965 to oversee the administration of insolvent estates. The
Master ensures compliance with the Insolvency Act, appoints trustees,
convenes meetings, and supervises the proper distribution of assets.
,Question 2
Which of the following is the most accurate description of the legal nature of
the employment contract, as defined by the common law?
A. A contract of mandate where the employee represents the employer
B. A contract of partnership where the employee shares in the profits and
losses
C. A reciprocal contract where the employee places their personal services at
the disposal of the employer in exchange for remuneration
D. A contract of suretyship where the employee guarantees the employer's
debts
C
RATIONALE: The common law defines an employment contract as a
reciprocal agreement where the employee renders personal services to the
employer, who in turn is obligated to pay remuneration. This creates a
master-servant relationship.
Question 3
What is the statutory time limit for a dismissed employee to refer an unfair
dismissal dispute to the CCMA?
A. 30 days from the date of the dismissal
B. 60 days from the date of the dismissal
C. 90 days from the date of the dismissal
D. 180 days from the date of the dismissal
A
RATIONALE: Section 191(1)(b)(i) of the Labour Relations Act (LRA)
stipulates that a dismissed employee must refer a dispute to the CCMA within
, 30 days of the date of dismissal. Failure to do so generally bars the claim
unless condonation is granted.
Question 4
What is the main objective of a sequestration order?
A. To punish the debtor for non-payment of debts
B. To secure the orderly and equitable distribution of assets among all
creditors when the debtor is insolvent
C. To discharge the debtor from all debts immediately
D. To transfer all assets to the debtor's spouse
B
RATIONALE: The main objective of a sequestration order is to secure the
orderly and equitable distribution of assets among all creditors when the
debtor is insolvent. It aims to prevent favouritism towards specific creditors.
Question 5
Which act of insolvency is committed if a debtor leaves the Republic with the
intent to evade or delay payment of debts?
A. Section 8(a) of the Insolvency Act
B. Section 8(b) of the Insolvency Act
C. Section 8(c) of the Insolvency Act
D. Section 8(d) of the Insolvency Act
A
RATIONALE: In terms of Section 8(a) of the Insolvency Act, if a debtor
leaves the Republic with the intent to evade or delay payment of debts, it
constitutes an act of insolvency.
