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Agbm 404:Business Law Question Paper
Agbm 404:Business Law
Course:Bachelor Of Agribusiness Management
Institution: Chuka University question papers
Exam Year:2014
INSTRUCTIONS:
? Answer question one and any other two ? Do not write on the question paper
QUESTION ONE
(a) “Parliamentary legislation is a better source of the Kenya law than subsidiary legislation. “Discuss this view with a view to highlighting only the positive aspects of it. [8 marks]
(b) Explain the essentials of a valid offer. [8 marks]
(c) A horse was sent by railway from Nairobi to Kisumu. However, the owner was not present to collect it on time. The station master at Kisumu arranged for its feeding and staling incurring an expense of ksh. 10,000/=. The station master filed a suit to recover the money and the owner of the horse refused to pay. Decide. [4 marks]
(d) A traffic police officer, thinking that the driver of a bus was drunk, ordered him to leave the bus. The conductor asked a man in the street to drive the bus to its destination a kilometer away. The man drove the bus negligently and one of the passengers sustained injuries. Is the owner of the bus liable to pay to the injured passenger? [5 marks]
(e) Three weeks ago the High Court delivered a judgment in a case in which Peter was accused of mutiny in the Kenya Armed Forces. Having been convicted of the offence, he thinks the judgment was very unfair. He has come to you to advise him, do so, by stating with explainary the nature of the court which found him guilty before the High court also did. [4 marks]
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(f) Ben went for holiday in Mombasa and during his tour; he identified a car which he has been looking for. He instructed the seller to deliver the car to Nakuru where he was going to pay him the purchase price. The car was involved in an accident at Nairobi. Ben refused to pay. The seller wants to be paid. Decide giving reasons for your decision. [5 marks]
QUESTION TWO
(a) Using illustrations, distinguish an offer from
(i) An invitation to a treat. [2 marks]
(ii) A mere expression of opinion [2 marks]
(iii) A declaration of intention [2 marks]
(b) Natural persons are distinct from the juristic person although they form the juristic person. Discuss three salient features of this principle, citing the case, which promulgated it. [5 marks]
(c) Nelson has come to your office complaining that the Resident Magistrate in Meru law courts has delivered a judgment which is not complying with the law. To which court will you direct him to appeal and why? [4 marks]
(d) What are the advantages of arbitration in solving disputes? [5 marks]
QUESTION THREE
(a) Briefly explain how a contract can be discharged. [10 marks]
(b) A agreed to act a commission agent for B in certain transactions. As a result of the transactions. A became liable to C and D to the extent of Ksh 10,000. A sued B to recover the said sum of ksh 10,000, although he had not in fact paid C or D. Decide [4 marks]
(c) Differentiate between sale and an agreement to sell. [6 marks]
QUESTION FOUR
(a) Under a contract for sale of goods, it is very important to know who has the “property in goods” at any given time. Briefly explain why this is important. [5 marks]
(b) F handed H a written offer. The next day F posted a withdrawal of the offer. This was posted between 12 noon and 1 pm and it did not reach until after 5 pm. In the meantime h at 3.50 pm posted an acceptance, discuss. [5 marks]
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(c) Express and implied contracts using clear illustrations. [5 marks]
(d) Explain why the following statements are promissory notes
(i) “I acknowledge to pay on demand ksh 1,000for value receive.” (ii) “I promise to pay B ksh 1000 7 days after C’s marriage.” (iii) “I promise to pay B ksh 500 three days after the death of X.” (iv) “I promise to pay B ksh 1000 after deducting a sum due to him.” (v) “ I promise to pay B ksh 100 in cash and ksh 100 worth of cosmetics
(e) Explain five types of goods by giving the appropriate illustrations. [5 marks] ---------------------------------------------------------------------------------------------------------------------
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