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Dibm 0122: Business Law Question Paper

Dibm 0122: Business Law

Course:Diploma In Procurement And Logistics

Institution: Chuka University question papers

Exam Year:2012

CHUKA UNIVERSITY

COLLEGE

UNIVERSITY EXAMINATIONS

FIRST YEAR EXAMINATION FOR THE AWARD OF
DIPLOMA IN BUSINESS MANAGEMENT &
DIPLOMA IN PROCUREMENT AND LOGISTICS MANAGEMENT

DIBM 0122: BUSINESS LAW

STREAMS: DIBM, DPLM TIME: 2 HOURS
DAY/DATE: TUESDAY 11/12/2012 8.30 A.M – 10.30 A.M.
INSTRUCTIONS:

1. Answer question One (1) and any other Two (2) questions.
2. Do not write on the question paper.

QUESTION ONE:

(a) Distinguish between the following terms:

(i) Law and morality [2 marks]
(ii) Public and private law [2 marks]
(iii) Criminal and civil law [2 marks]

(b) Explain the prerequisites of a valid contract. [12 marks]

(c) Explain the validity of the following contracts entered into by Joy aged 17 years.

(i) A contract for loan advancement with Equity Bank

(ii) A contract for necessities supplied to her by Ken

(iii) A contract to lease a house

(iv) A contract with Kinyua, a taxi driver to visit her sister at school [4 marks]

(d) Explain the limitations of Acts of Parliament. [8 marks]
QUESTION TWO:

(a) With reference to Sale of goods Act (Cap 31) explain five implied conditions.
[10 marks]

(b) Explain the remedies for unpaid seller. [6 marks]

(c) Distinguish between the following terms:

(i) Specific goods and unascertained goods [2 marks]
(ii) Conditions and warranty [2 marks]

QUESTION THREE:

(a) Discuss the five functions of law. [10 marks]

(b) Discuss the general defences in the law of tort. [10 marks]

QUESTION FOUR:

(a) In relation to the Law of Agency, explain the circumstances under which an agent
may be held personally liable to third parties. [13 marks]

(b) A appointed B as an agent to buy materials from C and other manufacturers. A was dissatisfied with B’s work and stopped him. B continued to buy goods on credit from C who, believing that B was still A’s agent sought payment from A. A later discovered that B had received commission for the orders he placed with several of the manufacturers and that had been carrying on a business similar to A’s while employed by A.

Required:

Legally advise [5 marks]

(c) Clearly explain the terms agency as used in the Law of Agency. [2 marks]

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Dibm 0122: Business Law Question Paper

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