Get premium membership and access revision papers, questions with answers as well as video lessons.
Got a question or eager to learn? Discover limitless learning on WhatsApp now -
Start Now!
Cfu 101 Business Law I (Day) Question Paper
Cfu 101 Business Law I (Day)
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2011
1
UNIVERSITY EXAMINATIONS: 2010/2011
FIRST YEAR EXAMINATION FOR THE BACHELOR OF COMMERCE
CFU 101 BUSINESS LAW I (Day)
DATE: DECEMBER 2011 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and any other TWO Questions
Question One
a) Explain the meaning of the term 'holder' in relation to a bill of exchange and outline four
rights and four duties of a holder of a bill of exchange. (5 marks)
b) Certain types of mistakes in the formation of a contract may affect the validity of a
contract. Discuss this statement explaining the mistakes. (6 marks)
c) Describe the ways in which a corporation may be established. (3 marks)
d) Explain five implied conditions and warranties in a hire purchase agreement.
(10 marks)
e) Explain the meaning of the following types of judicial precedent
Original precedent
Declaratory precedent
Distinguish precedent (6marks)
Question Two
(a) Highlight the establishment and jurisdiction of the following:
(i) The Land tribunals. (2 marks)
(ii) The Kadhi’s court. (4 marks)
(iii) The Court martial. (4 marks)
Julie, a student of KCAU bought a Tv from Crystal Traders at a price of Kshs. 50,000 on 1st of
July, 2009. The Tv was to be delivered to her house on 25th July after the entire balance price was
paid. On the date of delivery, Crystal traders informed Julie that the said Tv set had been stolen
from the shop and that they would effect delivery of a similar type of Tv set but which would cost
2
Kshs. 10,000 more. Julie’s cousin, Jill intends to sue Crystal Traders. State the legal position and
advise Julie accordingly. (10 marks)
Question Three
a) Distinguish between
i) Corporation sole (2 marks)
ii) Corporation aggregate. (2 marks)
b) Explain the meaning of lien and outline the circumstances under which the unpaid seller
may exercise his right of lien. (4 marks)
c) Explain the legal consequences of non-registration of a hire-purchase agreement.
(2 marks)
d) Jackson entered into a contract with Jacinta whereby Jackson was to introduce Jacinta to
Tajiri with a view to Tajiri marrying Jacinta in case his wife who was then very ill in
hospital passed away. Jackson asked Jacinta to give him Sh.10, 000 which she did. Jackson
then introduced Jacinta to Tajiri. However, Tajiri’s wife Juliana underwent a successful
surgery and fully recovered from the illness. Tajiri has now refused to marry Jacinta.
Jacinta is aggrieved and wishes to sue Jackson and Tajiri. Explain the legal principles applicable
and Advise Jacinta accordingly. (10 marks)
Question Four
Write short notes on:
(a) Law and morality (5 marks)
(b) Characteristics of a contract of guarantee (4 marks)
(c) Crossing of cheques (6 marks)
(d) Ratio decidendi and obiter dicta (5 marks)
Question Five
John bought a lawn mower from Juba Enterprises for a hire purchase price of 150,000. After
taking the lawn a mower into his possession and paying the first instalment, he realized that the
machine produces a deafening sound and ceases to function normally after every few minutes. He
informed Juba Enterprises of the persisting problem but nothing was said or done in that regard.
He now wants to return the machine to Juba Enterprises and claim his money back. Advice John
accordingly
(a) Explain the difference between (10 marks)
(b) a contract of guarantee and a contract of indemnity (5 marks)
(c) A cheque and a bill of exchange (5 marks)
More Question Papers
Popular Exams
Return to Question Papers