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Business Law Ii Question Paper

Business Law Ii 

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2009



KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
INSTITUTE OF OPEN LEARNING
EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE
BBA 302:
BUSINESS LAW II


DATE: WEDNESDY 7TH JANUARY 2009 TIME: 10.00 A.M. – 12.00 NOON

INSTRUCTIONS
Answer any THREE questions

Q.1
a)
Write short notes distinguishing the following.
i)
Void and enforceable contract.
ii)
Higher purchase agreement, credit sales agreement. (8 marks)

b)
Define partnership and discuss what makes it different from a limited
company under Kenya Law,



(12 marks)

Q.2
a)
Miss A asked Mr. P. a Pharmacist to sell her some weight reducing tablets.
He recommended ‘Vs’ a new product he claimed could add vitality and
take off Surphlus weight at the same time. Miss A accordingly bought
the tablets and consumed in the manner prescribed but instead was gaining
weight. What remedy does she have against P.

(10 marks)



b)
An agent is a person employed expressly or implicitly to do an act for
another called ‘principal’ or to represent the principal with a third person.
Briefly discuss ways in which such agency may rise and state the rights of
an agent against his Principal.



(10 marks)

Q.3
The essence of insurance is indemnity and the rights of the parties depend
on this. Discuss.






(20 marks)

Q. 4
Edna transferred the following cheques to Ann.

(20 marks)
i)
An Uncrossed cheque payable to Albert whose endorsement had
been forged by Abdi.
ii)
A cheque crossed ‘not negotiable’ payable to Patel and endorsed
by which Patel had obtained by Fraud.

Q.5
A cheque crossed Account payee payable to Muthoni and endorsed by her. Edna
is unaware of the history of the cheques and gave value to Ann for them. Advice
on the issue of a good title to any of the cheques.


(20 marks)

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