MARCH 2011 INTRODUCTION TO BUSINESS LAW (BUSINESS LAW) Instructions to candidates: a) Time allowed: Three hours (plus an extra

ten minutes reading time at the start do not write anything during this time) b) Answer any FIVE questions c) All questions carry equal marks. Marks for each question are shown in [ ] 1. a) Write an account of minors contracts, explaining which are valid, which are voidable and which are unenforceable. What is the statute law which applies to these contracts? b) John, aged 17, went into a clothes shop to buy some shirts and trousers in preparation for going to university next year. He paid by cheque, which was subsequently dishonoured. The shop sued him for the return of the clothes. What is the legal position? [20] The introduction of exclusion clauses into contracts frequently gives rise to problems for one of the parties involved. Explain what the common law and statute law attitude is towards the inclusion of such clauses in contracts. [20] Describe the steps taken in the formation of a company. Explain, in your answer, the nature and importance of the Memorandum and Articles. [20] What is the scope, and what are the main aspects of the Consumer Protection Act 1987? [20]

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What is the general rule set out in the expression nemo dat quod non habet? What are the exceptions? [20] Write an account of the common law and equitable remedies available in the case of a breach of contract. Explain in your answer the meaning of quantum meruit. [20] a) Give an account of the tort of defamation. b) Henry wrote a novel in which he invented a person who he called Horace Savin who lived in a particular town. This person committed a crime in the book and was later sent to prison. Henry did not know that there was a real person called Horace Savin living in the same town as in the book. This person, the real Horace Savin, is thinking of claiming damages against Henry for defamation. What is the position? [20] a) Explain the functions of the following: i del credere agents ii factors iii brokers iv auctioneers v bankers vi commercial agents b) A ship arrived at Weymouth, an English port about 150 miles from London. It had a cargo of fruit and vegetables to go by railway to London where the owner was going to sell them. The railway official inspected the cargo on the ship and realised that the fruit and vegetables were likely to go bad very quickly. He did not think they would last the journey on the train to London, so he sold them all locally at Weymouth and sent the money to the owner in London. If they had been sold in London they would have made much more money than at Weymouth, so the owner sued the railway for the difference in profit. Analyse this case and say what you think the result would be. [20]

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