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Business Law I Question Paper

Business Law I

Course:Diploma In Business Management

Institution: Kca University question papers

Exam Year:2009

UNIVERSITY EXAMINATIONS: 2009/2010
STAGE II EXAMINATION FOR DIPLOMA IN BUSINESS MANAGEMENT
DFU 101: BUSINESS LAW I
DATE: DECEMBER 2009 TIME: 1½ HOURS
INSTRUCTIONS: Answer any THREE questions
QUESTION ONE
Briefly explain
a) how a bill of exchange is discharged (5 Marks)
b) Consequences of incorporation (5 Marks)
c) The rules of delivery under a contract of sale of goods. (5 Marks)
d) Discharge of a contract by breach. (5 Marks)
QUESTION TWO
a) Discuss the composition, powers and jurisdiction of the high court (10 Marks)
b) Write short explanatory notes on
i) Kadhis courts (6 Marks)
ii) Ratio decidendi and obiter dicta (4Marks)
QUESTION THREE
a) Emy enterprises entered into a valid hire purchase agreement with Goddy for sale of a brand new
Sony television set valued at Kshs. 200,000. When Goddy had paid a total of Kshs. 80, 000 of the
hire purchase price, he was transferred to a far town by his employer. He left behind his wife and
children who not only complained of the Television set being defective and thus not of
merchantable quality but also defaulted in payment of the installments. Emy enterprises have now given a notice to Goddy’s wife of their intention to repossess the television set. Advice Goddy on the nature of a hire purchase contract and the rights of the hirer. (10 Marks)
b) Judy bought a television set from Simba Traders at Kshs. 280,000 and paid a deposit sum of Kshs.
200,000. She took the television set with her and promised to pay the balance amount of Kshs.
80,000 within ten days. Three days after the sale, Judy has just brought back the television set and
is demanding back all her money on claims that her friends simply don’t like the television set.
Simba Traders have just been informed that Judy is only seventeen years old. Advice Simba
Traders accordingly (10 Marks)
QUESTION FOUR
a) Explain the constitution as a source of law in Kenya (10 Marks)
b) With regard to sale of goods contracts, discuss the doctrine of caveat emptor (10 Marks)

Business Law I Question Paper

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