Buss 212:Business Law Question Paper
Buss 212:Business Law
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2010
FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE (compulsory) and any Other TWO Questions
Question 1
a) List and briefly explain various sources of law in Kenya and discuss the extent to which African customary law is a source of law in Kenya? (10marks)
b) Describe and explain the “judicial precedent” as a source of law in Kenya and explain what is meant by “ratio decidendi” and “obiter dictum”? (10marks)
c) What is delegated legislation? What are its advantages and disadvantages as a source of Kenyan Law? (10marks)
Question 2
a) How may a contract that has being validly concluded be otherwise declared unenforceable? (5marks)
b) A agreed with B that B would buy from A ten tones of sugar. The sugar was described to be stored in a go-down in Nyeri. Subsequent to the agreement, the following facts have come to light:
i) That when the agreement was been concluded, B held a gun in his hands and A could see the gun:
ii) That the goods were in fact at a go-down in Nakuru;
iii) Finally that the sugar was destroyed by a fire two days after the agreement
Discuss the rights of A and B respectively in all the above scenarios. (15marks)
Question 3
a) When if ever, is an agent personally liable upon the contracts made by him on behalf of his principal? (10marks)
b) P appointed A, his agent, to sell radios on his behalf. A sold the radios to X without disclosing that he was negotiating the contract as an agent. X paid the agreed price but the radios were not delivered to him, so he wishes to sue for the recovery if the purchase price.
In the meantime A sold the radios to Y,who offered him the gift of a cooker in arranging for the deal.
What are the respective rights of X and P in these circumstances? (10marks)
Question 4
a) What must a plaintiff prove in order to succeed in an action for negligence? (5marks)
b) Wamalwa had bad eye sight. While walking along the pavement he fell and tripped over a rail guarding a hole made by the Nairobi City Council and broke his leg. His proposal to settle the dispute out of court has been rejected by the Council who say that they are not liable for Wamalwa`s injuries because:
• They took all reasonable precautions for the safety of city residents passing near the hole, and
• If Wamalwa`s eyesight had been normal he would not like other normal city residents, have fallen the way he did.
Advice Wamalwa (15marks)
Question 5
a) Explain the remedies which are available under the Kenya Sale of Goods Act to an upaid seller of goods (10marks)
b) What defames may be available for a person who has been sued for defamation? Defences (10marks)
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