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Buss 212:Business Law Question Paper

Buss 212:Business Law

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2011

KENYA METHODIST UNIVERSITY

END OF 3''RD ''TRIMESTER 2011 EXAMINATIONS
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : BUSS 212
UNIT TITLE : BUSINESS LAW 1

TIME: 2 HOURS

Instructions: Answer Question ONE Compulsory and Any Other TWO.
Question One (30 Marks)

Recently David saw a tender advertisement by the City Council for the construction of a drainage system in one of the council’s estates.

Being a former employee of the ministry of works, he believes he can perform the works and he immediately applies for the tender. In the tender document David presents himself as an experienced civil engineer as, "an experienced civil engineer, who has successfully completed similar works for many clients in East Africa".

On winning the tender David discovers that he is required to enter into a very comprehensive agreement with the council in order to be allowed to start the works and that he would be paid after the completion of the work as per the council’s specifications and requirements.

David knew very well that he lacked the capital and skills to perform the works. He therefore approached his millionaire friend Ken who agrees to only invest his millions in the project as David invests his time and an agreement to that effect is duly entered into by the two and registered.

Without bothering to consult Ken, David enters into another agreement with Martin the proprietor of Martin& Martin Engineering agency to perform the construction works on his behalf.

Martin who is an accomplished engineer moves to the site with his equipments and workers and he is able to complete the construction within time to the satisfaction of the council.

David is then paid Kshs. 250 million and he immediately leaves the country without paying Martin and Ken a single cent.

Required:

Briefly discuss the nature of the agreement between:

David and the City Council.

(5 Marks)

David and Ken.

(5 Marks)

David and Martin

(5 Marks)

Assume that the council had discovered that David was not in a position to perform the contract personally immediately after signing the same and advise the council accordingly.

(5 Marks)

Briefly advise Ken and Martin.

(10 Marks)

Question Two (20 Marks)

Discuss FIVE sources of law in Kenya and their limitations.

(10 Marks)

With the help of a well labeled diagram explain the structure of the court system in Kenya according to the old constitution.

(10 Marks)

Question Three (20 Marks)

Discuss FIVE types of agency relationships and how they are terminated.

(10 Marks)

Discuss FIVE remedies of a buyer in a sale of goods contract. (10 Marks)

Question Four (20 Marks)

What are negotiable instruments and how do they facilitate business transactions?

(10 Marks)

The law of contract is the foundation stone for business law. Discuss in relation to the law of Agency and Partnership.

(10 Marks)

Question Five (20 Marks)

Briefly discuss FIVE essential elements in a hire purchase agreement

and FIVE duties of the hirer. (10 Marks)

With clear examples outline FIVE purposes of law in any given society.

(10 Marks)

Buss 212:Business Law Question Paper

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