Law 2220 (F) / Page 2 of 3

INTI INTERNATIONAL UNIVERSITY

BACHELOR OF BUSINESS (HONS)

LAW2220: BUSINESS LAW
FINAL EXAMINATION: JANUARY 2019 SESSION

Instruction: This paper consists of SEVEN (7) questions. Answer any FOUR (4) questions in the
answer booklet provided. All questions carry equal marks.

Question 1

Explain with reference to decided cases, the contributions and limitations of stare decisis as a
source of law.

(25 marks)
Question 2

On 2 June 2013, Mary bought a sewing machine of Alpha AB123 production year 2010 from Niti
Sdn Bhd. The full purchase price of RM950 was paid in cash by Mary. The machine went out of
order after few use and Mary discovers that the machine was not manufactured in 2010 but instead
it was manufacture in 2008.

When asked for the return of the purchase price from Niti Sdn Bhd, Mary was informed that Niti
Sdn Bhd was not able to return the money. Mary later complained to the manufacturer of the
sewing machine. The Manufacturer also reluctant to entertain Mary’s complaint and told Mary
that the manufacturer was not liable for any damage to the machine.

Mary then asked to repair the machine, both Niti Sdn Bhd and the manufacturer were reluctant to
do so. Both Niti Sdn Bhd and the manufacturer did not inform Mary they do not provide repair
facilities.

Advise Mary.

(25 marks)
Question 3

(a) Explain the meaning of ‘parties competent to contract’ under the Contracts Act 1950 with
support of relevant case laws.

(10 marks)

(b) Explain the differences between contracts of necessaries and contracts of luxuries with the
support of relevant case laws.
(15 marks)
 Law 2220 (F) / Page 3 of 3

Question 4

Explain with decided cases any three (3) instances of invitation to treat.

(25 marks)

Question 5

“Presumptions have been developed in the determination of intentions with respect to domestic,
social and business agreements”.

Discuss these presumptions and the ways the presumptions can be rebutted with the support of
relevant case laws.

(25 marks)

Question 6

“Terms are the contents of a contract and reflects the mutual obligations that the contracting parties
have to each other. However, not all terms are equal where some are more important and others
trivial”.

Explain with decided cases the three types of terms in contract law namely (1) condition (2)
warranty and (3) innominate term.

(25 marks)

Question 7

Janet wanted to sell her Prada Lacroix handbag. This is a rare model and is much sought after in
the market. Janet wrote to Suzy stating “hey Suzy I know you like this model and I am offering to
sell you this piece of mine for RM3,000. I need the cash urgently as I need to pay for my dog’s
medical fees”. The letter was posted on 1st of March and reached Suzy on 3rd of March. Upon
receiving the letter, Suzy replied “Yes I would love to buy, however can I get some discounts of
RM500? Would be great if you can consider. However, if you are unable to I will pay according
to your price”. The letter was posted on 4th of March but it was lost in the post for 8 days. On 7th
of March, Janet had already sold the bag to Shannon for RM3,000.
Advise Suzy if he can sue Janet for a breach of contract?
(25 marks)

End of Paper