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Business Law I (Day) Question Paper

Business Law I (Day)

Course:Bachelor Of Commerce

Institution: Kca University question papers

Exam Year:2011

UNIVERSITY EXAMINATIONS: 2010/2011
FIRST YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
CFU 101: BUSINESS LAW I (DAY)
DATE: AUGUST 2011 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
Question One
a) Explain the functions of law in business. (5 Marks)
b) What are the essentials of a hire purchase contract? (6 Marks)
c) Explain rules regarding a minor’s capacity to contract (6 Marks)
d) Explain four ways by which a guarantor is discharged from a contract of guarantee (4 Marks)
e) Law is described as a body of rules for guidance of human conduct which is imposed upon and enforced among the citizens of the state. Discuss. (5 Marks)
f) What are the circumstances under which a partnership may be dissolved voluntarily? (4 Marks)
Question Two
(a)Mr. Jumbe, who was vying for the national chairmanship of a political party, engaged Mr. Musika,
a local musician to perform in a series of campaign meetings. The political rallies were scheduled to be held at the Wazalendo Stadium. Mr. Jumbe paid Mr. Musika fifty thousand shillings as part payment for the performance fee.
Explain the legal position and remedies available, if before the first rally can be held:
i) The dais and seats at Wazalendo Stadium are burnt down and the rallies have to be
cancelled. (4 Marks)
ii) Mr. Musika is found guilty of being in possession of narcotics and selling it to minors.
He is arrested and sentenced to a one year jail term. (4 Marks)
iii)Mr. Musika suffers from stress-related complications due to his family problems and is
admitted to hospital (4 Marks)
(b)Explain the advantages of incorporation (5 Marks)
(c)What are the distinguishing features of a contract of indemnity from a contract of guarantee?
(3 Marks)
Question Three Mercy bought a refrigerator from Mumbo Traders on hire purchase at a price of Kshs. 86,000. She subsequently sold the same refrigerator to Salim who has now been informed by his wife that a representative of Mumbo traders earlier on in the day had visited their home with the intention of repossessing the refrigerator due to the reason that Mercy had defaulted in paying the last 4 installments of Kshs 15,000 each.
Advice Salim on the nature of a hire purchase contract and the rights the parties to such a contract with special reference to the rights of Mumbo traders in regard to repossession of the refrigerator.
(20 Marks)
Question Four
(a) Judicial precedents are an important source of law in Kenya, Substantiate the above statement
(10 Marks)
(b) There’s a cardinal principle in law that ‘no one can transfer a better title than he himself has’
explain this principle, together with exceptions if any. (10 Marks)
Question Five
Distinguish between:
a) coercion and undue influence (3 Marks)
b) guarantee and indemnity (5 Marks)
c) Sale and agreement to sell (7 Marks)
d) Legal rules and moral rules (5 Marks)

Business Law I (Day) Question Paper

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