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33043 LW/NOV2005/LAW416

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

BUSINESS LAW LAW416 NOVEMBER 2005 3 HOURS

INSTRUCTIONS TO CANDIDATES 1. 2. 3. 4. This question paper consists of SEVEN (7) questions. Answer FOUR (4) questions in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: (i) the Question paper (ii) an Answer Booklet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 3 printed pages Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

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LW/NOV 2005/LAW416

QUESTION 1

In the context of the written law of Malaysia, explain the following:

a)
b)

Delegated Legislation;

(10 marks)
The Federal Constitution.

(15 marks)
QUESTION 2

a)

With reference to the provisions of the Contracts Act 1950 and decided cases, explain the ways by which an offer (proposal) may be accepted. (15 marks) 16 year old Felix made the following transactions and failed to pay for;
i) ii) a digital camera worth RM1,100.00; one semester's tuition fees of RM2.500.00, to Maya College.

b)

Explain whether the above transactions constitute a valid contract.

(10 marks)
QUESTION 3

a) b)

Discuss how an agency by necessity may be created. (15 marks) Seroja appointed Jamal as her agent to buy Saudah's building at Jalan Baru at a price not exceeding RM90,000. The building was urgently needed for the expansion of Seroja's business. Saudah has agreed to sell the building at RM60,000. Jamal made an arrangement with Saudah to the effect that the purchase price of the building is stated at RM80,000 in the sale and purchase agreement. Upon payment of the purchase price, Jamal kept RM12,000 for himself and returned the remaining RM8,000 to Saudah. All this was done without Seroja's knowledge. A month later, Seroja discovered about the dealings between Jamal and Saudah. Advise Seroja. (10 marks)

QUESTION 4

In the context of sale of goods in Malaysia, explain the caveat emptor rule and the exceptions to that rule. (25 marks)

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LW/NOV 2005/LAW416

QUESTION 5

a) b)

Define a hire purchase agreement (5 marks) Pak Osman recently bought a car by way of a hire purchase. He passed away three months later due to illness. Mak Aton, his widow, is worried about the hire purchase agreement. She wants to know if she can continue to use the car and to pay the hire purchase instalments. Advise Mak Aton. (10 marks)

c)

Boon Chit recently won a cash prize in a lucky draw. He intends to make an early settlement of the instalments for his car, which was financed by Junbank Berhad.
With reference to the Hire Purchase Act, 1957, advise Boon Chit on the matter above. (10 marks)

QUESTION 6

a)

Briefly describe how a Bill of Exchange may be endorsed and explain the effect of each type of endorsement. (15 marks)

b)

State two (2) types of crossings that may be made on a cheque and explain their objectives and effects. (10 marks)

QUESTION 7

a)
b)

Define a partnership and how it may come into existence. (10 marks)
Discuss three instances when the court would require the veil of incorporation to be lifted. (15 marks)

END OF QUESTION PAPER

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