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Business Law I (Day Class) Question Paper

Business Law I (Day Class)

Course:Bachelor Of Business Management

Institution: Moi University question papers

Exam Year:2009

UNIVERSITY EXAMINATIONS: 2009/2010
FIRST YEAR STAGE 1 EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CFU 101: BUSINESS LAW I (DAY CLASS)
DATE: DECEMBER 2009 TIME: 2 HOURS
INSTRUCTIONS: Answer ONE and Any other TWO Questions
QUESTION ONE
a) Explain the characteristics of a contract of guarantee (4 Marks)
b) Explain the rules of termination of a hire purchase contract (6 Marks)
c) What are the advantages of delegated legislation as a source of law in Kenya? (5 Marks)
d) Explain the jurisdiction of the High court (10 Marks)
e) Distinguish between law and morality (5 Marks)
QUESTION TWO
a) With help of decided cases, illustrate the extent of application of customs as a source of law in
Kenya (8 Marks)
b) Explain the rules with regard to when property passes from the seller to the buyer (6 Marks)
c) Explain the advantages of incorporation (6 Marks)
QUESTION THREE
a) Explain the terms of a contract of hire purchase (12 Marks)
b) Under what circumstances is a judicial precedent not binding on a Judge? (6 Marks)
c) What is the significance of bills of exchange? (2 Marks)
2
QUESTION FOUR
a) Explain the legal position of June and Mike respectively advicing each accordingly in the
circumstances below .Limca enterprises offered a television set for sale at a price of
Kshs.250,000 and required that the acceptance be communicated by phone within two
weeks from the date of the offer. Five days after the said date of the offer, June
communicated her intention to buy the television set at kshs. 200,000, an offer which was
immediately rejected by Limca enterprises. On the last day of the prescribed two weeks,
June accepted to buy the television set at kshs. 250,000 but was informed that the television
set had been sold to Triza at Kshs 200,000. June wants to sue Limca enterprises.
(10 Marks)
b) June sold a television set to Mike who paid the entire price of the TV. Mike was informed
shortly later that the said TV belongs to Triza and that June had indeed stolen it from
Triza’s house a month earlier. Triza has now notified Mike of her intention to re-posses the
TV. (10 Marks)
QUESTION FIVE
a) What are the essential elements of a valid acceptance of a bill of exchange? (6 Marks)
b) Write short explanatory notes on;
i) The Kadhis courts (5 Marks)
ii) Discharge of a contract by breach (5 Marks)
iii) Completion of a hire purchase contract (4 Marks)

Business Law I (Day Class) Question Paper

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