UNIVERSITY EXAMINATIONS: 2021/2022

EXAMINATION FOR THE DEGREES BACHELOR OF BUSINESS

INFORMATION TECHNOLOGY
BUS 209: BUSINESS LAW
FULL-TIME/PART-TIME/DISTANCE LEARNING
ORDINARY EXAMINATION
DATE: AUGUST, 2021 TIME: 3 HOURS

INSTRUCTIONS: Answer ALL Questions

QUESTION ONE: (20 MARKS)

Smith employed Hamilton as his agent in a business of selling cooking gas. For many years
Hamilton sold cooking gas to Havana wholesalers. Arising from a dispute in the work place,
smith dismissed Hamilton. Smith did not inform the proprietor of Havana wholesalers about
Hamilton’s dismissal. After the dismissal, Hamilton proceeded to Havana wholesalers and
collected cash amounting to shs.100, 000 balance of payment due to smith for cooking gas which
had delivered earlier. Hamilton, the agent of smith. Discuss the legal principle applicable.
Explain the duties of AN AGENT TO HIS PRINCIPAL.

QUESTION TWO: (20 MARKS)

Mutuku employed mwanzia as a petrol tanker driver. While petrol was being off-loaded from
the tanker at a petrol station, mwanzia who was standing nearby, lit a cigarette. Unfortunately,
the petrol tanker caught fire and burnt the whole petrol station and injured several people.
Mpole, the owner of the petrol station, is angry and seeks your advice on whom he can sue.
Advise Mpole.
QUESTION THREE: (10 MARKS)
“Saman, a keen collector of old cars has seen an advertisement for an auction of old cars in a
weekend newspaper. He travelled to Colombo from Badulla to attend the auction in order to bid
for the model mentioned in the list of vehicles to be auctioned. However, when Saman
Arrived at the auction site, he found a notice outside stating that the auction has been
cancelled”.Saman contemplates legal action against the auctioneer. In the context of law of
contract, advise Saman whether he can succeed in an action against the auctioneer. Give reasons
for your answer.