Hbc2112;Business Law I Question Paper
Hbc2112;Business Law I
Course:Bachelor Of Commerce
Institution: Meru University Of Science And Technology question papers
Exam Year:2014
QUESTION ONE – (30 MARKS)
(a) Mugambi was appointed a sales agent by one on one manufacturers Co.Ltd. He was to sell the company’s products in the whole of Meru County until such time that the agency is terminated by either side in writing. At the beginning , Mugambi conducted the sales well and without any problems. Six months from the time of appointment, the company increased its products with him. Finding that the work was too much for him, he appointed his own two agents to assist him. He instructed them to specifically market the products across the border into Uganda. The sales into Uganda proved very profitable. Due to shortages there, Mugambi used to raise the price of every product by 80% above the original price fixed by the company. The agency between him and the company went smoothly until the end of the 3rd year when the company discovered Mugambi was not remitting all the money actually obtained from the sales. The company verbally decided to terminate the agency and take legal proceedings against him. Mugambi has come to you seeking a legal notice. Discuss with him your legal opinion on the matter before you advice him whether he can win the case or not. (15 marks)
(b) Distinguish between an offer and an invitation to treat. (6 marks)
(c) What is a countermand. (3 marks)
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(d) Distinguish between slander and libel. (6 marks)
QUESTION TWO – (20 MARKS)
(a) Explain the meaning of the term sources of law. (4 marks)
(b) Doctrines of equity developed as a result of inadequancies of common law. State and explain these inadequancies. (8 marks)
(c) State and explain the various characteristics of a negotiable instrument. (8 marks)
QEUSTION THREE – (20 MARKS)
(a) Distinguish between a natural person and an artificial person. (8 marks)
(b) Discuss with examples, the various ways in which a valid contract may be brought to an end. (12 marks)
QUESITON FOUR – (20 MARKS)
(a) Describe the doctrine of vicarious liability and explain three instances under which the employer is not liable under the doctrine. (10 marks)
(b) Other than by agreement, explain two other ways in which agency relationship is terminated by the acts of parties. (4 marks)
(c) Explain any three functions of the law of tort. (6 marks)
QUESTION FIVE – (20 MARKS) a) Mr.Obama entered into a contract with Mr. Whitehall where he hired his car to the latter for an agreed sum of Shs.10,000.00 per day. Mr. Whitehall was a prominent business person and he intended to use the car to promote the business of pyramid schemes and Obama was aware of this. Whitehall defaulted in payment and Obama brought action against him. Explain the legal issues arising and what advice you would give Obama. Give reasons for your answer. (12 marks)
b) Discuss the main advantages of legislation as a source of law. (8 marks)
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