Bmgt 510: Business Law And Ethics Question Paper
Bmgt 510: Business Law And Ethics
Course:Mba
Institution: Kabarak University question papers
Exam Year:2010
COURSE CODE: BMGT 510
COURSE TITLE: BUSINESS LAW & ETHICS
STREAM: MBA – S1 & S2
INSTRUCTIONS:
Candidates are required to answer ANY THREE (3) Questions.
PLEASE TURNOVER
Page 2 of 3
1. Question One
Kenyan law requires that certain contracts must be in writing in order to be
enforceable.
With reference to the Law of Contracts Act, Chapter 23 of the Laws of Kenya,
identify the types of contracts which must be in writing in order to be
enforceable and the exceptions to the general rule (if any) (20 marks)
2. Question Two
It is important to recognize that most organizations are
simply legal fictions which serve as a nexus for a set of
contracting relationships among individuals. This includes
firms, non-profit institutions such as Universities,
hospitals, and foundations, mutual organizations such as
mutual savings banks and insurance companies and cooperatives,
some private clubs, and even governmental
bodies such as cities, states, and the federal government.”
Michael C. Jensen & Wiliam H. Meckling, in “Theory of the
Firm; Managerial Behaviour, Agency Costs and Ownership
Structure.”
With reference to the above statement and Kenyan Law, discuss
the fundamental characteristics of the following: -
(i) Companies (10 marks)
(ii) Partnerships (10 marks)
3. Question Three
Nothing more foolish can be uttered or conceived than the
notion that, because man is free by nature, he is therefore
exempt from law. Were this the case, it would follow that to
become free we must be deprived of reason; whereas the
truth is that we are bound to submit to law precisely
because we are free by our very nature. For, law is the guide
of man’s actions; it turns him toward good by its rewards,
and deters him from evil by its punishments.”
Pope Leo XIII
Encyclical Letter Libertas
Taking the above view into account, discuss the statement: “Ethics is bigger
than rules, regulations and the Law in constraining bad business
behaviour” (20 marks)
Page 3 of 3
4. Question Four
In the recent past, Uchumi Supermarkets Kenya Ltd has stood out as a
company that withstood the vagaries of unethical conduct to re-emerge into
profitability.
Using your knowledge of Company Law, particularly the duties of Directors,
discuss how the (mis)conduct of directors may lead to collapse of a business
enterprise. (20 marks)
5. Question Five
Write short notes on the following methods of dispute resolution: -
(i) The Law of Agency. (5 marks)
(ii) The Law of Torts. (5 marks)
(iii) Criminal Law. (5 marks)
(iv) Company Law. (5 marks)
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