Legal person refers to a non-human entity that is treated as a person for limited legal purposes. Therefore the correct answer is E.

In unfair competition cases, the claimant must bring a cause of action within three years from the date of the existence of the right to take an action and one year from the date when he/she learns about the damages. In cases of criminal offences arising out of unfair competition, statute of limitations is five years.

Contractual relations, as the cornerstone of all commercial transactions, have resulted in the development of specific bodies of law within the scope of business law regulating:

(1) sale of goods-i.e., implied terms and conditions, the effects of performance, and breach of such contracts and remedies available to the parties;

(2) the carriage of goods, including both national and international rules governing insurance, bills of lading, charter parties, and arbitrations;

(3) consumer credit agreements; and

(4) labor relations determining contractual rights and obligations between employers and employees and the regulation of trade unions.

TCC is divided into six chapters:

• Book 1: (Articles 1 – 123) on Commercial Enterprise 

• Book 2:(Articles 124 – 644) onCommercial Companies

• Book 3: (Articles 645 – 849) on Valuable Papers (Negotiable Instruments)

• Book 4: (Articles 850 – 930) on Transport (Carriage) Operations 

• Book 5: (Articles 931 – 1400) on Maritime Law 

• Book 6:(Articles 1401 – 1520) on Insurance Law

The correct answer is C.

Contracts, Torts and Unjust Enrichment

Interest as to its Nature Capital interest is the interest payable to the creditor for being deprived of the amount of money that she/he lent to the debtor. Interest for delay is the interest payable where the debtor fails to pay debts back in time. Pursuant to Article 10 TCC, unless otherwise provided, interest for delay is to be charged starting from the due date of the debt, and if there is not a specific date for delay, then from the date of notification of the debtor (by the creditor). The correct answer is D.

TCC introduces single-member limited liability company as a new model of company. Therefore the correct answer is B.

For a custom to have legal validity and to be considered as a part of the customary law, certain requirements must be fulfilled.First of all, a custom must exist for a long period of time; it should have the characteristic of antiquity. Secondly, the custom should have the characteristic of continuity; it must be continuously observed. Thirdly, the members of the society should believe consciously or unconsciously in the rightness of the custom. Fourthly, a custom may not be applied if it is in conflict with the written laws. Lastly, there is a need for a state sanction. Until a court applies a custom and gives it the sanction of state authority, it shall not be considered as a part of the customary law.

Simple interest applies only for the capital and its is calculated for a certain period of time whereas compound interest is the interest calculated over the sum reached by the addition of a certain interest on the initial capital. Therefore, the correct option is E.

Capital interest is the interest payable to the creditor for being deprived of the amount of money that she/he lent to the debtor. Therefore, the correct option is C.

Business law regulates the sale of goods,  implied terms and conditions, the effects of performance, and breach of such contracts and remedies available to the parties, the carriage of goods, including both national and international rules governing insurance, bills of lading, charter parties, and arbitrations, consumer credit agreements and labor relations determining contractual rights and obligations between employers and employees and the regulation of trade unions. Answer C is not related to the question, therefore C is the correct answer.

There are two highly dominant legal systems in the World. One is the Continental Law system, having its origins in Roman law and the other one is the Anglo-Saxon Law system derived from the Common Law in England. Turkey is a Continental Law country.

If the  debtor is obliged to refrain from doing something, the consideration is a negative consideration. Restraint of trade is including of refrain from doingsomething. So it is a negative consideration.

In order to have full capacity there are three requirements. Firstly a person should attain majority; secondly, this person should be capable of making fair judgements; and lastly, he/she should not be interdicted.A person of limited capacity also has all of these three requirements, but his/her capacity is limited only for certain legal transactions. In other words, for the persons of limited capacity, capacity is the rule and incapacity is the exception that is only limited to specific transactions.

Rather than merely amending out-of-date provisions of the old Law (dating from 1950’s), the legislature decided to pass a completely new law for a modern and contemporary legal environment for the commercial business life in Turkey. Recent developments in Turkish economic laws such as candidacy and negotiation process with the EU; technological developments and the Internet; international markets and global trade; new economic laws affecting commercial business; developments in transportation; developments related to corporate compliance and other company matters and the reforms in the commercial codes in several European states. Therefore, the correct option is C.

According to article 49 of the Code of Obligations, any person who unlawfully causes
loss or damage to another, whether willfully or negligently, is obliged to provide compensation. This liability is named as tortuous liability .

Examples of acts which may constitute unfair competition:

• Advertisement and sales methods and other illegal acts, which violate the rule of good faith,

• Inducement breach or termination of contract,

• Unauthorized utilization of others’ business products.

• discrediting others or their merchandise, products, works, activities or business transactions by wrong, misleading, unnecessarily offending statements,’’

• Revealing production and business secrets unlawfully,

• Not complying with general business conditions,

• Using general business terms and conditions, which violate the rule of good faith,

• acts or statements aiming to distort a competitor’s commercial reputation,

• lodging an unjustified lawsuit only to offend,

• predatory exploitation of another’s services or achievements

The correct answer is B.

Mistake as to the identity of the subject-matter of the contract: If the mistaken party had in mind a subject-matter other than the subject-matter of the contract entered into, there is a material mistake as to the identity of the subject-matter.

The following are the legal consequences of acquisition of a commercial enterprise:

• The merchant who transfers his commercial enterprise leaves his commercial business and looses his status of being a Merchant.

• All the elements (assets) which are assigned to the commercial enterprise are considered to have transferred unless the parties agree otherwise.

• The acquisition of the commercial enterprise shall be subject to a sales agreement thus the agreement will be subject to the relevant provisions of TCO.

• The debts of the commercial enterprise subject to acquisition will be transferred to the acquiring party effective as of the date of announcement of the acquisition to the creditors or at the date of the announcement in the Trade Registry.

• Together with the acquiring party, the merchant who is transferring the commercial enterprise shall continue to be jointly liable from the debts for two years. 

Therefore, the correct option is A.

Accordingly, in the light of the definition of the law, the essential elements of a commercial enterprise can be listed as follows:

i. to generate an income that will be above the craftsman’s turnover to be announced: There should be a will/purpose of the enterprise to generate an income which shall be above a certain threshold to be announced by the Pesident. The criterion here is that the threshold would be above the level of the turnover of a craftsman’s enterprise. The threshold for a craftsman’s enterprise is announced by a presidential decree (Art.11/2).

ii. continuity: The commercial business should be continuous, not temporary.

iii. independence: This criterion qualifies a commercial enterprise from a “branch” which is not an independent unit. A branch or a commercial representative do not qualify as a commercial enterprise due to the lack of this criterion. Therefore, the criterion for independence is significant for defining a business unit as a commercial enterprise. Accordingly, a commercial enterprise has a legal capacity that is much broader than a branch which has a limited scope of activities.

The correct answer is C.