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Dibm 0122: Business Law Question Paper
Dibm 0122: Business Law
Course:Diploma In Business Management
Institution: Chuka University question papers
Exam Year:2013
CHUKA
UNIVERSITY
UNIVERSITY EXAMINATIONS
FIRST YEAR EXAMINATION FOR THE AWARD OF
DIPLOMA IN BUSINESS MANAGEMENT
DIBM 0122: BUSINESS LAW
STREAMS: DIP. (BUS. MGT) Y1S2 TIME: 2 HOURS
DAY/DATE: THURSDAY 8/8/2013 11.30 A.M. – 1.30 P.M.
INSTRUCTIONS:
ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS.
Question 1
1. (a) You are a student at Chuka University and having completed Business Law unit.
You have been called upon to give a talk in your community about the purpose of law. Discuss. [3 marks]
(b) Briefly explain the written source of law. [3 marks]
(c) Highlight the advantages of Arbitration. [5 marks]
(d) Differentiate Common law and Doctrines of Equity. [2 marks]
(e) Your friend, Maureen is arguing that unincorporated businesses are better than incorporated. You are trying to convince her that incorporation is better.
Explain how you would convince her. [7 marks]
(f) Describe 5 ways in which Agency relationship can be created. [10 marks]
Question 2
2. (a) Define the following terms:
(i) Ejusdem Generis
(ii) Defamation
(iii) Negligence [6 marks]
(b) Explain 3 situations where negligence occurs. [3 marks]
(c) Explain 3 defences to defamation that a defendant can use. [6 marks]
(d) “A contract is an agreement between two or more persons, intended to create
legal relations”. Discuss this statement with reference to 5 features of a valid contract. [5 marks]
Question 3
3. (a) Using illustrations, an offer may be distinguished from
(i) Invitation to offer
(ii) Expression of an opinion
(iii) Declaration of intention [6 marks]
(b) Discuss the remedies for breach of contract. [10 marks]
(c) Three weeks ago the High Court delivered a judgment in a case in which Dan was accused of muting in Kenya Armed Forces. Having been convicted of the offence, he thinks that the judgment was unfair. He has come to you to advise him. Do so, by first explaining the nature of the Court that found him guilty before the High Court also did. [4 marks]
Question 4
4. (a) Christine purchased a tin of disinfectant powder from Angela. Angela knew that
the powder was likely to be dangerous to Christine, if it was opened without special care being taken, but did not tell Christine about this danger. Christine opened the tin in the normal way and the disinfectant flew into her eyes and caused injury. Is Angela liable to pay damages to Christine? Give reasons for your answers. [5 marks]
(b) Differentiate between a sale and an agreement to sell. [5 marks]
(c) List the essentials of a promissory note. [5 marks]
(d) Adam tells Thomas within the hearing of Paul that (Adam) he is Paul’s agent. Paul doesn’t object to the statement of Adam. Later Thomas supplied shoes worth Ksh 500,000 to Adam, who pretended to act as an agent to Paul. Is Paul liable to pay Ksh 500,000 to Thomas? [3 marks]
(e) What do you understand by conditions and warranties? [2 marks]
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