Commercial And Administrative Law Exam Question Paper
Commercial And Administrative Law Exam
Course:Diploma In Business Administration
Institution: Machakos University question papers
Exam Year:2012
END OF TERM EXAMINATION
BUSINESS ADMINISTRATION DIPLOMA 3
COMMERCIAL AND ADMINISTRATIVE LAW
Instructions: Answer any five questions
Time: 2 hours
1. (a) Explain five circumstances under which a bill of exchange may be discharged. (10 marks)
(b) Explain five circumstances under which agency relationship may be terminated by operation of the law. ( 10 marks)
2. (a)You are a manager at Cash bank Ltd.
Mr Ochieng your customer is disputing a number of cash withdrawals obtained from the bank’s ATM arguing that they were made through unauthorized use of his ATM card over a period of time. Citing relevant legal principles, explain how you would deal with this situation. ( 10 marks)
(b) Letsy and Jane were carrying on the business of buying and selling beauty products under the partnership name of Letjan beauty products. The partnership agreement provided that no partner should contract any debt on account of the partnership without the consent of the other partner except in the usual and regular course of the business.
Jane took beauty products worth 50,000 on credit from King using the partnership name.
Jane personally sold the beauty products from King without Letsy’s knowledge. Jane then used the money to pay her son’s hospital bill. King has demanded payment from Letsjan beauty shop. They have refused to pay. King is aggrieved.
i. Explain the legal principles
ii. Advise King ( 10 marks
3. (a) Joseph entered into a hire purchase agreement with Bogarts motor ltd for a hire of a motor vehicle whose purchase prices was 3 million. After he had paid instalments amounting to 2 million he fell into arrears and Borgats motors repossessed the motor vehicle without his consent. Joseph is aggrieved and has come to you for advice.
Advise Joseph ( 10 marks)
(b) Mark drew an open cheque for 15.000 in favour of his clerk Steve. The cheque was duly signed and dated by Mark. Mark wrote 15,000 in figures but as he was in a hurry, he told Steve to insert the figure in words and also to write his name as the payee. Steve altered the amount in figures to read 95,000 and also wrote this amount in words. Steve cashed the cheque and disappeared. Mark has learnt that Steve withdrew 95,000. Mark is aggrieved and seeks your advice.
i. Explain the legal principles
ii. Advise Mark and the bank. ( 10 marks)
4. (a) Tom asks Jerry to sell two suits on his behalf for 10, 000 each for an agreed consideration of 5%. Jerry purchases one of the suits for himself without disclosing this fact to Tom.
He gives Tom 10,000 stating this were the proceeds of the sale. Jerry sells the second suit to Peter for 15,000 and proceeds to give Tom 10,000 for the second suit. Tom has now discovered the full facts regarding the transaction. He is aggrieved and seeks your legal advice.
i. State the legal principles applicable
ii. Advise Tom. ( 10 marks)
(b) In relation to the law governing carriage of goods distinguish between a bill of lading and a charter party. ( 10 marks)
5. (a) Explain five remedies of a mortgagee where there mortgagor has defaulted. ( 10 marks)
(b) In relation to bills of exchange, distinguish between presentment for acceptance and presentment for payment. ( 10 marks)
6. (a) John gave his land title deed as security for a loan from Pesa commercial bank.
The loan was due on or before 10 October 2007. However John was unable to repay the loan on the due date. John got money on 15 October 2007, but when he sought to repay the loan, the bank refused to take payment. John is aggrieved and seeks your advice.
i. Explain the legal principles involved
ii. Advise John. ( 10 marks)
(b) Ochieng went to Jisaidie credit traders and purchased a music system on hire purchase terms. After paying three monthly instalments, he was retrenched by the employer. As a result, Ochieng is now unable to continue paying the monthly instalments and has returned the music system to Jisaidie traders. Advise Jisaidie Traders. ( 10 marks)
7. (a) Janet took her television set to Karanja for repair. Karanja told her to collect the television after two weeks. Before the expiry of two weeks Karanja repaired the television, took it to his house and started using it. The television was damaged by Karanja’s son before Janet could collect it. Janet went to collect the television after two weeks and found it in Karanja’s house damaged. She intends to sue Karanja. Advise Janet. ( 10 marks)
(b) Juma instructed Sogomo to get for him a buyer for his house situated in Kitengela.
Juma agreed to pay Sogomo a commission of 150,000 on completion of the sale. Sogomo identified Kamau who agreed to buy the house. On completion of the sale, Juma paid Sogomo 150, 000. Later Juma discovered that Sogomo had been paid 100,000 by Kamau to be the one to buy the house. Juma is aggrieved by Sogomo’s action and intends to take legal action against Sogomo and seeks your legal advice.
i.Explain the legal principles applicable
ii. Advise Juma.( 10 marks)
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