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2806/306: Commercial And Administrative Law Question Paper
2806/306: Commercial And Administrative Law
Course:Diploma In Business Administration
Institution: Coast Institute Of Technology question papers
Exam Year:2007
2806/306
COMMERCIAL AND ADMINISTRATIVE LAW
NOVEMBER, 2007
TIME: 3 hours
THE KENYA NATIONAL EXAMINATION COUNCIL
DIPLOMA IN BUSINESS ADMINISTRATION
COMMERCIAL AND ADMINISTRATIVE LAW
3 HOURS
INSTRUCTION TO CANDIDATES
This paper consists of seven questions
Answer any FIVE questions
All questions carry equal marks
1.a)In relation to law of Agency, explain FOUR fiduciary duties of an agent towards a principal (8 marks)
b) Rita paid Ksh 200 to watch a play in a theatre. She was given a ticket which contained the following statement:
“the management shall not accept responsibility for any injury caused to any visitor or loss or damage to the property of any visitor”
While she was watching the play Rita’s theatre seat broke and was seriously injured. She now claims compensation from the management of the theatre. The theatre management has refused to admit liability relying on the clause on the ticket. With reference to the law of contract:-
i) Explain the legal principles applicable in the cause (8 marks)
ii) Advise Rita (4 marks)
2. a) Mr. Ali, who has been discharged from hospital, could not afford to pay his medical bill. He pledge his car with Mr. Boit who gave him Ksh.50,000 to settle the bill. After two weeks Mr. Ali paid Mr. Boit the money and took back the car only to discover that the rear lights of the car had been smashed due to careless use of the car by Mr. boit. Mr. ali is aggrieved due to damage inflicted on his car. He seeks your advise
i) Explain the legal principles applicable in this case. (8 marks)
ii) Advise Mr. Ali (2 marks)
b) In a trading partnership, a partner has implied authority to perform some functions on behalf of the firm. Explain Five such acts under which partner has implied an authority to perform. (10 marks)
3. a) With respect to sale of goods Act (Cap 31), explain
i.The circumstances when an unpaid seller may have the right to re-sell the goods (6 marks)
ii. The circumstances under which the right of lien to goods may be lost (6 marks)
b.Wafula obtained goods on hire purchase agreement from Ebenezer Credit Traders. Upon taking delivery he breached certain terms of the said agreement. in relation to the statement, advise Ebenezer Credit Traders on the possible remedies the court may award them. (4 marks)
iii. Jacinta who had taken goods on hire purchase had paid two thirds of the hire purchase price has had goods repossessed by the owner. Explain the remedies available to Jacinta and her guarantor under the provision of the Hire Purchase Act (Cap 507) (4 marks)
4.Mwena has a personal accident policy that covers death and disablement caused by” accidental external visible and violent means,” He is involved in a car accident and suffers injuries that requires hospital treatment, upon admission there is an outbreak of food poisoning and Mwena is one of those affected. Being in a weak state of the accident, he dies as a result of food poisoning. In relation to his case explain whether the personal accident insurers are liable under the policy. (10 marks)
b) In relation to the law governing guaranties, explain five rights of the guarantor against creditors ( 10 marks)
5.a) In relation to the law of bankruptcy, explain SIX circumstances under which the court may refuse to discharge a bankrupt (12 marks)
b). Outline FOUR characteristics of bill of lading ( 8 marks)
6 a). In relation to law governing negotiable instruments, explain five points of distinction between a cheque and a bill of exchange (10 marks)
b).Explain FIVE duties of a lesee towards a lessor under a lease agreement ( 10 marks)
7 a). Explain FOUR conditions which have to be fulfilled before the High court can grant the remedy of certiorari (8 marks)
b). As a result of recent elections, the Msema Kweli Party has taken control of the Masumbuko Town Council and has implemented the following changes. It has decided to revoke with immediate effect the license given to Wambua to sell “Mitumba” second hand cloths in the council owned parks/plots.
Advise Msema Kweli Party on the following:
i. Whether there could be sny legal challenges against its decision (10 marks)
ii. Whether Wambua could successes in making such a challenge and by what legal process (2 marks)
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