I don't think there is a right answer for this one.
I think its designed to make you argue your point in a constructive logical manner.
I f you answer in either way you are setting yourself up for a come back.
If you said yes. They would start hitting you with but it means you are breaking the law etc.
If you said no. they would come back and say but do you never speed etc.
Its a question to basically to wind you up to see if you can argue logically under stress.
They proberly don't care what the answer is and most companys i should suspect have unoffical SOP's for this occurance which are passed on after sacrificing a virgin trolley dolly after completing the LHS course.
As said above if your flying short sectors around europe, so what, your airline ID will do for a passport if required. Ramp check its a technical paper work cop which dosn't effect flight safety, big deal If the CAA did every AOC holder for every technical cockup in paperwork every inspection nobody would be operating. I should imagine its one of the things you do once and the whole hassel means that you never forget it again.
Now if they asked a question about what would you do if you discovered that the charts aboard where one day out of date.
Technically an easy question but i am sure some of the small twin taxi guys out there could tell you the pressure they would be under to fly it.
(BTW i wouldn't but i cheat and make sure i have my own set of current charts so the situation wouldn't occur.)
MJ