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Law I (May 2001) Question Paper

Law I (May 2001)

Course:Cpa Part I

Exam Year:2001

KASNEB
CPA PART 1 SECTION 1
INTRODUCTION TO LAW
MAY 2001 TIME ALLOWED:3 Hours
Answer Any FIVE Questions. All Question carry equal marks.
______________________________________________________________________________________
QUESTION ONE
(a)Explain the difference between codification and consolidation of law and give examples of each. (6 marks)

(b)Mwangi has stolen some goods from Simiyu.The police prosecute Mwangi for theft and Simiyu sues him for the return of the goods.
(i)Explain under what law the action by the police will be based. (2 marks)
(ii)In this action by the police, state what Mwangi will be called. (2 marks)
(iii)Under what law would the action brought by Simiyu be and what would Simiyu be called? (2 marks)

(c)Explain the key distinctions between common law and equity. (8 marks)
(Total: 20 marks)

QUESTION TWO
(a)Explain five advantages of arbitration as a form of settling disputes.(10 marks)

(b)Custom is the oldest source of law.Explain the criteria which must be satisfied before a custom can be applicable as law. (10 marks)
(Total: 20 marks)

QUESTION THREE
(a)In relation to the law of persons, explain the following:
(i)Corporation sole: (2 marks)
(ii)Corporation aggregate. (2 marks)

(b)Explain three characteristics of a public company. (6 marks)

(c)Explain the conditions that have to be satisfied by an applicant before an adoption order can be granted by the court. (10 marks)
(Total: 20 marks)

QUESTION FOUR
(a)A partnership is basically a matter of agreement between the parties or partners in the business. Section 24 of the Partnership Act sets out rules which apply in the absence of express o implied agreement to the contrary. Outline five of these rules. (10 marks)

(b)A partner has a right to seek for the dissolution of a partnership. Explain the circumstances under which the court will generally order the dissolution of a partnership. (10 marks)
(Total: 20 marks)

QUESTION FIVE
(a)Sauti Cleaners Ltd. offered to clean two garments for the price of one. A notice was displayed in the shop to this effect but with the addition in smaller print of a statement that he customer must agree in return to accept full responsibility if anything should happen to the garments.
A similar statement was printed on the back of the tickets which were handed to customers when they disposed the garments. Nabayi bought two garments fro cleaning. Because of poor eye sight. She was unable to read the small print on the notice and she put the ticket in her pocket without reading.Some days later when Nabayi went to collect the garments, she saw that one garment had been badly torn. After waring the other garment, she contracted a skin disease caused by a chemical which the cleaners had used.
Advise Nabayi. (10 marks)

(b)Many contractual clauses in a contract purport to exclude liability for injury, loss or damage.Explainthe general rules which will determine the effectiveness of such clauses. (10 marks)
(Total: 20 marks)

QUESTION SIX
(a)The law provides for various remedies that are available to a person who has suffered following a breach of contract. Some remedies may be claimed as of right whilst other remedies will depend upon the exercise of discretion by the court.
Discuss this statement. (12 marks)

(b)Mike is offered and accepts a post of an accountant to start work in three weeks. A week later he receives a letter from his prospective employer stating that his services will not be required.
Advise Mike. (8 marks)
(Total: 20 marks)

QUESTION SEVEN
(a)Simiyu wishes to buy his son a car as a birthday present. Wheeler-Dealer offers to sell to Simiyu a second-hand car explaining that the brakes need attention and that he would reduce the price to take account of this. Wheeler-Dealer says that he will take no responsibility for this or other defects. Simiyu accepts the offer without examining the car. If he had done so, he would have seen that the tyres were badly worn out. Simiyu drives away the car but because of defects it fails to negotiate a bend in the road. The car loses control, strikes a wall and is damaged beyond repair.
Advise Simiyu of his rights, if any, against Wheeler-Dealer. (10 marks)

(b)The Sale of Goods Act states that it is the duty of the seller to deliver goods and of the buyer to accept and pay for them in accordance with the terms of the contract of sale.
(i)Explain the meaning and effect of this Act. (4 marks)
(ii)Describe the seller’s duties in connection with delivery and indicate what constitutes acceptance by the buyer. (6 marks)
(Total: 20 marks)

QUESTION EIGHT
(a)In relation to the law governing insurance, explain five basic principles of insurance. (10 marks)

(b)Explain five duties of a landlord in a tenancy agreement. (10 marks)
(Total: 20 marks)

Law I (May 2001) Question Paper

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