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Bust 322:Business Law Question Paper
Bust 322:Business Law
Course:Bachelor Of Education Arts
Institution: Chuka University question papers
Exam Year:2010
INSTRUCTIONS:
? Answer Question ONE (1) and any other THREE (3) ? Marks may be lost for illegibility ? Do not write anything on the question paper
1. (a) A saw a rare book displayed in the University Bookshop. It was labeled “First Edition Kshs 200/=.” A entered the bookshop and put Kshs 400/= on the counter and asked for the book. The bookseller did not agree to sell the book saying that the real price of the book was Kshs 4,000/= and that it has been marked as Kshs 200/= by mistake. Is the bookseller bound to sell the book for Kshs 200/=? Give reasons for your answer. [5 marks]
(b) B offered to sell his house to A for Kshs 500,000/=. A accepted the offer by post. On the next day, A sent a telegram withdrawing the acceptance which reached B before the letter. Is the revocation of acceptance valid? Give reasons for your answer. [5 marks]
(c) C a student at Chuka University was in dire need of money. He sold his new laptop purchased two months ago at a cost of Kshs 120,000/= for Kshs 20,000/= to D. Thereafer C sought to set aside the contract on the ground of inadequacy of consideration. Will he succeed? Give reasons for your answer. [5 marks]
2
(d) James a minor fraudulently represented to Equity Bank that he was of age and executed a mortgage deed for Kshs 1,000,000/=. The minor later failed to pay the money back to Equity Bank. Advise Equity Bank of its rights against James. [5 marks]
(e) B paid Kshs 10,000/= to A an employee of Chuka University in consideration of A’s promise that B will be employed as a clerk in the University. B did not get the promised job. B now wishes to recover Kshs 10,000/= from A. Decide [5 marks]
2. (a) Explain the right of unpaid seller. [6 marks]
(b) With clear illustrations explain the conditions and warranties implied in a contract of sale of goods. [9 marks]
3. (a) M, a Partner of a firm of architects borrowed Kshs 100,000/= on behalf of a firm from Family Bank, Meru branch. Family Bank knew that M had no express authority from the partners to borrow any money but lent the money on an assurance from M that the money would be applied for the payment of a debt of the firm. The money borrowed from Family Bank was so applied. Can Family Bank recover the amount from the firm? Give reasons to your answer. [5 marks]
(b) With specific examples explain when a court can order for the dissolution of a partnership. [10 marks]
4. (a) Explain the functions of law. [5 marks]
(b) Discuss the advantages of Statutory Law. [5 marks]
(c) A insured his house against fire for Kshs 100,000/= with insurer X and for KShs 200, 000/= with insurer Y. A loss of Kshs 120,000/= occurred. Explain the liability of X, and Y to A. [5 marks
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