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2112: Business Law Question Paper
2112: Business Law
Course:Bachelor Of Commerce
Institution: Dedan Kimathi University Of Technology question papers
Exam Year:2011
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DEDAN KIMATHI UNIVERSITY OF TECHNOLOGY UNIVERSITY EXAMINATION 2010/2011 FIRST YEAR SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE HBC 2112: BUSINESS LAW 1 DATE: 15TH DECEMBER 2010 TIME: 2.00PM – 4.00PM INSTRUCTIONS:
1. Question 1 is compulsory
2. Answer any other 3 questions
Question 1 Wanjiku sat for her Kenya certificate of Secondary Examination in the year 2009. It was always her dream to go to college and become an accountant. She applied for her examinations with KASNEB and in preparation for her examinations, she entered into a contract with Streetwise Tutorial Services Ltd to undertake revision course in preparation to the last examinations. The revision course was to last six weeks at a total cost of Ksh.30,000/=. The Ksh.30,000/= was to be paid by six weekly instalments of Ksh.5,000/= per week as the course commenced. Kalulu, the accounts lecturer missed almost half of the time table classes during the first six weeks citing personal commitments. Wanjiku having paid the full amount sat for the final examinations. Due to the fact that she was un prepared, she failed the examination. Unknown to Kalulu, Wanjiku had applied for a job at Machinery World and as a result was unable to take up the job.
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Question Wanjiku wishes to sue Streetwise Tutorial Services for damages to breach of contract. Advise Wanjiku. (15 marks) (b) State and explain the statutory provisions governing the application of African Customary Law in Kenyan Courts. (10 marks) (c) Write explanatory notes on company limited by shares. (5 marks) Question 2 (a) Define a ‘negotiable instrument’ (2 marks) (b) State and explain the various characteristics of a negotiable instrument (10 marks) (c) In relation to cheques, what is meant by;-
(i) a special crossing.
(ii) a general crossing (8 marks)
Question 3
a) Explain the circumstances under which an agent becomes personally liable to third parties upon a contract made by him on behalf of his principal. (10 marks)
b) State and explain the different ways in which an agency relationship may be terminated by operation of law. (10 marks)
Question 4
a) On 10th March 2002, at about 1 pm Peter Maneno a pedestrian was walking along Gakere road to Myen Township. On this particular day, the weather was clear and there was free flow of traffic. As he was crossing the road along a zebra closing , he was knocked down by a motor vehicle Registration No. KBE 912 H, Nissan Matatu owned by Juma Abdalla. The motor vehicle was driven by Washington Baraka, who is an employee of Juma Abdalla.
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As a result of the accident, Peter Maneno suffered a broken leg and soft tissue injuries. He was admitted at Nyeri Provincial Hospital for 2 weeks and later discharged. On 10th October, 2010, Peter Maneno approaches you and seeks legal opinion and advice. Kindly advise Peter. (10 marks)
b) State and explain any five defences in torts. (10 marks)
Q. 5. Write short notes on the following;-
a) Doctrines of Equity
b) Delegated legislation
c) Negligence
d) Vicarious liability (20 marks)
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