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Hbc 2112/Hps 2204: Business Law 1 Question Paper
Hbc 2112/Hps 2204: Business Law 1
Course:Bachelor Of Commerce
Institution: Dedan Kimathi University Of Technology question papers
Exam Year:2013
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DEDAN KIMATHI UNIVERSITY OF TECHNOLOGY
UNIVERSITY EXAMINATION ACADEMIC YEAR 2012/2013
SECOND YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE/PURCHASING AND SUPPLIES MANAGEMENT
HBC 2112/HPS 2204: BUSINESS LAW 1
DATE: 11TH JULY 2013 TIME: 11.00AM – 1.00PM
Instructions:
Answer question ONE and any other TWO questions
QUESTION ONE
(a) Briefly discuss the African customary law as a source of law in Kenya (5 marks)
(b) Kimani has offered to sell his car to Joshua for ksh. 300,000.What is the legal position if ;
I. Kimani dies before the offer has been accepted
II. Joshua dies before accepting the offer
III. Joshua dies after accepting the offer. (5 marks)
(c) Antony lost his Gold watch and offered 100,1000 towards its return Ben found the watch and returned it to Antony at a time when he did not know of the reward.Ben subsequently heard of the reward and claimed it from Antony.Antony has refused to pay. What is the legal position (5 marks)
(d) Examine and briefly discuss the agency of necessity (5 marks)
(e) Define the term negotiable instrument and give an example of each. (5marks)
(f) Felix is in the habit of burning rubbish in his compound at night which emits foul smell causing the neighbours discomfort and are not able to eat or sleep well. His neighbours have been complaining to him but he is adamant that his rubbish is in his land, he burns it in his compound and that his neighbours have no business whatsoever in what he does in his compound. These neighbors have approached you for help.Give a legal advice. (5 marks)
QUESTION TWO
(a) What defenses if any are open to defendant in an action for negligence (10 marks)
(b) Brian an infant has obtained a bank overdraft by pretending that he was over 18 years. The Bank has informed his father that unless the overdraft is repaid, they will prosecute Brian for money obtained by deception. In great distress they father executes a deed to repay .Is he liable? (5marks)
(c) What is meant by endorsement on a bill of exchange and what is the position if the endorsement is forged. (5 marks)
QUESTION THREE
(a) Brian a tenant of office premises situated in Prestige plaza building on fourth floor. One evening the wash Basin in the Men’s washroom in Brian’s Office overflow with the result that offices of John On 3rd floor are flooded destroyinghis entire lecture Materials and other valuables. Drawing from relevant case-laws Consider whether Brian will be liable for damages to John if;
I. the tap was left running by an employee of Brian
II. The tap was left running by a burglar who had a wash after breaking into Brian’s Safe
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III. The pipe was chewed by rats thus busting it (10 marks)
(b) What are the vitiating elements of a contract? (10 Marks)
QUESTION FOUR
(a) What are the rules in the law of contract governing the acceptance of an offer (10 marks)
(b) Discuss the application of the substance of common law and the doctrine of equity as a source of law in Kenya highlighting the defects of common law that gave rise to the doctrine of Equity. (10marks)
QUESTION FIVE
Write short notes on the following
(i) Statute of general application
(ii) Frustration in a contract
(iii) Agency by estopel
(iv) Contractual capacity of an incorporation
(v) Holder in due course (20 marks)
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