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UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

BUSINESS LAW LAW166/251/299/379 OCTOBER 2010 3 HOURS

INSTRUCTIONS TO CANDIDATES

1.

This question paper consists of TWO (2) Parts :

PART A (20 Questions) PART B (7 Questions)

Answer ALL questions from PART A and any THREE (3) questions from PART B. i) Answer Part A in the Objective Answer Sheet and attach to the Answer Booklet. ii) Answer Part B in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: i) the Question Paper ii) an Answer Booklet - provided by the Faculty iii) an Objective Answer Sheet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 7 printed pages
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CONFIDENTIAL PART A 1. Which of the following is a proposal? a) b) c) d) Advertisement Advertisement Advertisement Advertisement

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in a newspaper to sell a bungalow. in a brochure about a holiday package. to give a reward of RM 50.00 for the return of a lost wallet. in a newspaper for job recruitment. (5 marks)

2.

Sarah proposed to sell her diamond ring to Amera for RM 1,200.00. Amera agreed to buy the diamond ring at a price of RM 1,000.00. Amera is now making, a) b) c) d) an acceptance a counter proposal a counter acceptance a mere request for information (5 marks)

3.

Tan agreed to sell his car to Lily for RM 30,000.00 or RM 32,000.00. Lily agreed to buy the car offered by Tan. The above agreement is, a) b) c) d) valid voidable void enforceable. (5 marks)

4.

What is the legal principle stated in the case of Carlill v Carbolic Smoke Ball. ? a) b) c) d) Proposal can be made to the world at large Proposal can be made to a specific person Proposal has to be communicated Acceptance has to be communicated. (5 marks)

5.

Which of the following statements is NOT TRUE about consideration? a) b) c) d) Consideration need not be adequate Consideration must move from the promisee Past consideration is good consideration Consideration may be made on account of natural love and affection (5 marks)

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The following situation results in the discharge of a contract by frustration EXCEPT a) b) c) d) Aliyah, a singer suffers from a sore throat just before a concert. A stadium collapsed a week before a football game is held. Marziana refused to perform in a theatre after receiving a better offer elsewhere. A catering for engagement One Malaysia Festival was cancelled due to heavy flood. (5 marks)

Section 159 of the Contracts Act 1950 states that a principal can terminate his agent's authority by giving notice. a) b) c) d) immediate reasonable delayed no (5 marks)

The legal maxim' delegatus non protest delegare' means, a) b) c) d) an an an an agent agent agent agent cannot receive a secret profit. cannot work with another principal has to disclose the identity of his principal cannot employ another person to do his duty. (5 marks)

What is the definition of caveat emptor? a) b) c) d) Let the Let the Let the Let the seller be careful. buyer beware seller and the buyer be careful buyer be honest (5 marks)

10.

An agency contract may be terminated by the operation of law in the following manner EXCEPT a) b) c) d) Death of a principal Insanity of an agent Principal has gone bankrupt Renunciation by agent (5 marks)

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CONFIDENTIAL 11.

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Which of the following are goods under the Sale of Goods Act 1957? a) b) c) d) A single storey bungalow A twenty US Dollars bill A set of dining table A durian tree (5 marks)

12.

Which of the following is TRUE about future goods? a) b) c) d) Future goods Future goods Future goods Future goods exist at the time the contract is made. are existing goods. did not exist at the time the contract is made. are part of specific goods. (5 marks)

13.

One of the rights of an unpaid seller is the right to resell the goods. Before he can resell the goods, the seller must have a) b) c) d) the the the the right of lien right to claim damages right to claim an injunction right of lien or right of stoppage in transit. (5 marks)

14.

Before the formation of a hire purchase agreement, the owner is under a duty to serve to the hirer, a) b) c) d) Part one of the First Schedule Notice. Part two of the First Schedule Notice Part one of the Second Schedule Notice. Part two of the Second Schedule Notice. (5 marks)

15.

The owner can repossess the goods from the hirer if a) b) c) d) the the the the hirer defaults hirer defaults hirer defaults hirer defaults payment payment payment payment of 5 installments of the last installment. of last two installments. of three installments. (5 marks)

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CONFIDENTIAL 16.

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What is the effect of a hire purchase agreement which is made orally? a) b) c) d) valid void enforceable voidable (5 marks)

17.

A cheque is a a) b) c) d)

drawn on

payable on

withdrawal bill, banker, sight bill of exchange, banker, demand promissory note, banker, specific date bill of exchange, banker, at a fixed or determinable future time. (5 marks)

18.

What are the ways to negotiate a bill of exchange? a) b) c) d) Through Through Through Through acceptance and delivery delivery and endorsement plus delivery. acceptance and negotiation acceptance and endorsement. (5 marks)

19.

The maximum number of partners in a professional partnership is a) b) c) d) 20 persons 2 persons 100 persons Unlimited number of persons (5 marks)

20.

Companies are required to have: a) b) c) d) Articles of Association and Memorandum of Association Articles of Understanding Memorandum of Understanding Certificate of Business. (5 marks)

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CONFIDENTIAL PARTB QUESTION 1 a)

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Sue Hanim went shopping at Murni Mall and saw a handbag displayed on a shelf. The price tag was RM 120.00. When Sue Hanim went to the payment counter to pay for the handbag, she realised that she had left her purse at home. The manager of the shop insisted that Sue Hanim pay for the handbag because a valid contract had already been contracted. Advise Sue Hanim. (60 marks)

b)

Awang wants to buy Siti's handphone for RM300. He threatened to smash the handphone if she refuses to sell it at that price. Initially, Siti reluctantly agreed but now wishes to set aside the contract. Advise Siti. (40 marks)

QUESTION 2 "A contract made by a minor is void". Explain the above statement. (100 marks) QUESTION 3 There are several ways to appoint an agent. Explain how an agency may be created by:

a)

Necessity (50 marks)

b)

Implied appointment (50 marks)

QUESTION 4 a) Rose Mawar ordered 100 packets of Wanji Rempah 'soto spices' from Wak Karjo. Rose Mawar found that only 30 packets of the spices delivered to her bears the brand of Wanji Rempah Soto. Rose Mawar is not satisfied with the goods delivered. She seeks your advice. With reference to the Sale of Goods Act 1957, advise Rose Mawar. (60 marks)
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b)

Explain the following exceptions to the nemo dat quod non habet rule. i) ii) Estoppel Sale by a mercantile agent (40 marks)

QUESTION 5 Discuss the statutory rights given to the hirer under the Hire Purchase Act 1967. (100 marks)

QUESTION 6 Discuss the protection of a collecting and paying banker as provided by the Bills of Exchange Act 1949. (100 marks)

QUESTION 7 Explain the differences between partnership and company. (100 marks)

END OF QUESTION PAPER

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