Business law is mainly used among merchants: and a merchant may be a real person or a legal person. The legal person merchants are business associations or in other words the companies.

In addition to other unlawful acts, the advertisement and sale methods that are against the principle of honesty and especially misleading customers as to the real value of products using bundling practices is a major example of unfair competition.

A company is a business association formed by two or more parties who bring together their capital to achieve common purposes of making and sharing profit. The parties (shareholders/partners) establishing the company enter into a contract titled “Articles of Association (AoA)”. Every company is required to have an AoA which is legally binding on the company and all of its shareholders and which can be regarded as its internal rules, prepared by the shareholders. The AoA cannot contain rules that are against the law. AoA of a company must be in a written form and should bear the signatures of all the shareholders, authenticated by the notary public.

Customers have the standing to sue only where their economic interests are injured. For customers to have a cause of action, there must be actual damages. Prospective damages are not sufficient.

Applying the Principle of State Supervision requires supervision by the Capital Markets Board in case of public joint stock corporations; the Ministry’s authority regarding a legal action for dissolution, therefore the correct answer is E.

Unilateral legal transactions: These legal transactions are formed by the assent of a single person. In other words, in unilateral legal transactions, there is only one intention declared. The legal order binds effect only to this single declaration of intention. One example to that is recognition of a child.

Wholly Foreign-Owned Enterprise is not a type of company in Turkey, therefore the correct answer is C.

Regulation of different types of contracts is formed specific types of contracts part of Code of Obligations

Pursuant to Article 304 TCC, a commandite company is a company which is established to operate a commercial enterprise under a trade name, where the liability of one or more shareholders are not limited against the creditors and where the liability of others is limited with the capital subscribed. According to Article 211 TCC, a collective company is a type of company which can be established only by persons (individuals) for the purposes of operating a commercial enterprise under a commercial title. Shareholders’ liability is joint and unlimited with all their property and this principle is an obligatory rule which the parties cannot agree otherwise.

The last group in capacity to act involves the persons of full incapacity. They are the ones who do not have discretion, who are not able to make fair judgements. They should be either under parental authority or guardianship. Their statutory representative represents them in their legal transactions. These persons cannot create a legal effect by their actions. If they enter into a transaction, this transaction shall be completely null and void.

The Constitution does not define the supremacy of the President. Therefore the correct answer is B.

A person attains majority with the completion of age 8. In two exceptional situations, persons may acquire majority before completing 18 years of age. First of all, marriage confers majority. In Turkish law, the normal marriage age is the completion of 17 years of age with the consent of the parents; and the extraordinary marriage age is the completion of 16 years of age with the court decision. If a person gets married before the completion of 18 years of age in the above mentioned circumstances, this person would acquire majority. The second way is the court decision. A minor who has completed his/ her 15 years of age may, upon his/her application and with the consent of his/her parents, be declared by the court to be of full age. However, to grant this decision there should be a valid ground for this application. The correct answer is E.

The scope of business law can be as extensive as covering contract law, commercial law, company law, competition law, labor law, fiscal law. Therefore the correct answer is E.

Only one of the parties is under the burden of fulfilling a consideration while the other party does not owe any consideration.

Business law touches everyday lives through every contractual relation. 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.

Therefore, the correct option is E.

The parties (shareholders/partners) establishing the company enter into a contract titled “Articles of Association (AoA)”. Every company is required to have an AoA which is legally binding on the company and all of its shareholders and which can be regarded as its internal rules, prepared by the shareholders. The AoA cannot contain rules that are against the law. AoA of a company must be in a written form and should bear the signatures of all the shareholders, authenticated by the notary public.

negative consideration 

In the light of the above, the essential requirements for a joint stock company can be listed as follows:

• establishment with a separate legal personality,
• for any economic purpose,
• with a trade name,
• under a written Articles of Association,
• whose capital is certain and divided into shares,
• by at least one or more individual or legal entity partner(s),
• with a liability limited with the subscribed capital,
• whose liability is not limited towards thecreditors of the Company and
• at least one partner whose liability islimited with certain amount of capital
• capital cannot belessthan 50.000TL and 100.000TL in joint stock corporations
where shares are traded publicly (wherethe minimum capital requirement can
be increased by the Ministry of Customs and Industry

It constitutes a new obligation in the place of an old one. The preexisting obligation is discharged and a new obligation is created.

The Grand National Assembly is the place where the codes and statutes are enacted. Therefore the correct answer is A.