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Buss 212:Business Law I 1St Trimester 2014 Question Paper

Buss 212:Business Law I 1St Trimester 2014

Course:Bachelor Of Business Information Technology

Institution: Kenya Methodist University question papers

Exam Year:2014

BUSIENSS LAW I (BUSS 212) 1ST TRIMESTER 2014
KENYA METHODIST UNIVERSITY

END OF 1'ST 'TRIMESTER (DAY) 2014 EXAMINATION

SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTION
UNIT CODE : BUSS 212
UNIT TITLE : BUSINESS LAW I

TIME: 2 HOURS
INSTRUCTIONS: Answer question one and any other two questions.

Question One

Jane kyalo decided to buy a money plant flower for her garden from a tree nursery which specializes in all types of trees. She explained to one of the staff that she wanted a money plant capable of climbing up to three metres. She was shown one plant which she accepted to buy. At the counter where all purchases are paid for there was a sign that read, "No warranty is given as to the quality and suitability of purpose of any plant at this nursery." One month later Jane kyalo’s uncle who is a plant expert visited her and after examining the plant, he told Kyalo that the plant was not capable of climbing up to three metres high and was in fact not a money plant.
In relation to the sale of goods Act, explain three legal principles in this case.
(9mks)
Advise Jane Kyalo on two remedies available to her in this case.
(4mks)
Explain five ways in which a contractual obligation is discharged. (10mks)
In the context of the law of torts, explain the elements of defamation. (7mks)
Question Two

Mr. Brown makes a contract for Mr. Yellow to do repair work to his living room, which is to be finished by June 3. Mr. Yellow comes down with a bad case of flue and is delayed in finishing the work. He is able to complete the work on June 8. Mr. Brown sues Mr. yellow for breach of contract. How should the judge rule?
(5mks)
The high court is established under the constitution. Outline the jurisdiction of the high court of Kenya.
(8mks)
With the use of appropriate examples, highlight circumstances under which customary law may be used as a source of law.
(7mks)
Question Three

Mwangi and Wafula has a valid contract under which Wafula would buy all of the fruit from Mwangi’s orchard. A fire swept through Mwangi’s orchard just before the harvest, destroying all of the fruit trees. Mwangi tells Wafula that she will not be able to supply him with the frutis. Wafula sues Mwangi for breach of contract. How should the judge rule?
(5mks)
An agent is presumed not to take personal liability with third party in his dealings except in some circumstances. Discuss these circumstances.
(8mks)
Explain the implied terms in hire purchase agreement.
(7mks)
Question Four

Discuss the five characteristics of hire purchase contract.
(10mks)
Explain the difference between a cheque and the bill of exchange. (10mks)
Question Five

Law is enforced in order to ensure peace and order amongst members of the society. Highlight any four uses of laws.
(8mks)
Distinguish between law and morality.
(12mks)

Buss 212:Business Law I 1St Trimester 2014 Question Paper

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