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:2013
QUESTION ONE (30 MARKS)
(a) Stephanie issued a cheque of Ksh.60,000 to one of her suppliers. The supplier altered the cheque to read Ksh.600,000, before presenting it to the bank for payment. The bank subsequently honoured the cheque. Stephanie is aggrieved and seeks your legal adv ise. Explain the legal principles applicable in the case and advise Stephanie on her legal rights if any. (10 Marks) (b) Give the distinction between a natural person and an artificial person. (8 Marks) (c) In what circumstances may an agent delegate the performance of his duties. (6 Marks) (d) Discuss briefly three ways in which a contract can be terminated. (6 Marks)
QUESTION TWO (20 MARKS)
(a) A tort is an act which causes harm to a determinate person whether intentionally or not, being a breach of duty arising out of a personal relation or contract and which is either contrary to law or a violation of an absolute right. Explain how different a tort is from a contract. (10 Marks) (b) How may agency relationship arise between parties? Discuss each one of them. (10 Marks)
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QUESTION THREE (20 MARKS)
(a) State how a bill of exchange may be discharged. (10 Marks) (b) Describe the doctrine of vicarious liability and explain three instances under which the employer is not liable under the doctrine. (10 Marks)
QUESTON FOUR (20 MARKS)
(a) Explain any five advantages of settlement of commercial disputes by arbitration. (5 Marks) (b) What are vitiating elements in contract? Discuss any three. (9 Marks) (c) Briefly explain the three ways in which the constitution of Kenya is a source of law. (6 Marks)
QUESTION FIVE (20 MARKS)***
(a) Explain any five defects that were inherent in common law and suggest for each the maxim of equity that was developed to remedy the defects. (10 Marks) (b) Explain what you understand by the term invitation to treat and outline any five instances of invitation to treat. (10 Marks) (c) Briefly explain the three ways in which the constitution of Kenya is a source of law. (6 Marks)
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