Hbc2243:Business Law Question Paper
Hbc2243:Business Law
Course:Bachelor Of Commerce
Institution: Meru University Of Science And Technology question papers
Exam Year:2013
QUESTION ONE – (30 MARKS)
(a) Mr. Ndemi is an accomplished businessman in Meru town and who has an estate to his name and a chain of business. After a thorough analysis of risks that affect businesses, he had decided to work out ways of mitigating against any financial loss that may arise as a result of (i) business being gutted down by unexpected fire and (ii) unknowingly engaging unfaithful employees. Mr. Ndemi has recently diversified into the financial services sector and is running a business in the name of Nchiru Small Micro Enterprise Credit Scheme. The credit scheme has gained prominence with the small scale holders who do not have collateral securities. Required: (i) Describe any two important insurance policies available to Mr. Ndemi. (10 Marks) (ii) Discuss any two commercial securities that are available to a financial institution like the one for Mr. Ndemi. (10 Marks) (b) Distinguish with examples, the difference between a condition and warranty as used in the sale of good Act. (6 Marks) (c) Explain what you understand by the term illegal partnerships. (4 Marks)
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QUESTION TWO – (20 MARKS)
(a) Discuss with examples transactions that look similar to the sale of goods contract but are not a sale of goods contract. (12 Marks) (b) Hire purchase contract is a contract of hiring, and not a contract of sale. Explain the nature of hire purchase contract. (8 Marks)
QUESTION THREE – (20 MARKS)
(a) Discuss the various ways in which an insurance contract may be discharged. (8 Marks) (b) How does a hire purchase agreement differ from a credit sale? (6 Marks) (c) Discuss any four disabilities of undischarged bankruptcy (6 Marks)
QUESTION FOUR – (20 MARKS)
(a) Discuss the various ways in which a partnership contract can be brought to an end. (8 Marks) (b) Describe the remedies available for buyers against a seller in sale of goods. (6 Marks) (c) Liquidation and insolvency are often confused to be synonyms. Discuss the two terms pointing out the difference if any. (6 Marks)
QUESTION FIVE – (20 MARKS)
(a) Describe the doctrine of caveat emptor as used in sale of goods and explain any four exceptions to this doctrine. (15 Marks) (b) In relation to the law governing insurance, explain any five basic principles of insurance. (5 Marks)
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