UNIVERSITI TEKNOLOGI MARA

FINAL ASSESSMENT

COURSE NAME : BUSINESS LAW

COURSE CODE : LAW166/251/299/379
ASSESSMENT : 29 JULY 2021 (9.00 AM)
RELEASE DATE :
ASSESSMENT : 29 JULY 2021 (5.00 PM)
LAST SUBMISSION
DATE

INSTRUCTIONS TO CANDIDATES

1. This final assessment is an individual assessment which consists of two (2) parts.
Part A consists of 20 questions.
Part B consists of 3 questions.

2. Answer ALL questions in Part A.

Answer TWO (2) questions only in Part B.

3. Answer all the questions in English.

4. Softcopy of the answers will be submitted in PDF format via google classroom.

5. Students are required to fill in UiTM’s Academic Integrity Pledge which must be submitted
together with the answer.

6. The file must be named in capital letters according to this format: Group and followed by
student’s Name e.g KAM1104A AHMAD BIN MOHAMMAD.

7. Students are responsible to ensure that their answers have been submitted and received by
the lecturer concerned. Proof of submission should be retained by students.

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Part A (10 marks)
Choose the best answer from the options given.

1. Which of the following is an invitation to treat?

A. A “free breakfast” voucher in a hotel

B. A notice for reward on information relating to the theft of a car.
C. A gift coupon for one free spa service
D. A leaflet describing the facilities and services provided by a private hospital.

2. An antique teak bed was put on auction at the reserved price of RM13,000. Sarimah
successfully bid for the bed at the price of RM14,800. She suddenly had reservations
about buying the bed and revoked her bid after the auctioneer had dropped the
hammer. Is Sarimah bound to pay for the bed?

A. No, because she has the right to revoke her offer.

B. No, because the auction is only an invitation to treat.
C. Yes, because the acceptance has been made.
D. Yes, because the auction is an offer.

3. On 12 May 2020, Adlin offered to sell her yacht to Jalal for RM1.2 million. Jalal
accepted the offer on 7 March 2021. Is there an agreement between the parties?

A. Yes, because there is an acceptance of the offer.

B. Yes, because the acceptance matches the offer.
C. No, because the offer has expired.
D. No, because the price of the yacht is no longer the same.

4. Yassin offered to sell his lawn mower to Hakimi for RM600. Hakimi was interested
in the offer but did not have enough money to pay for the lawn mower. Yassin told
Hakimi that he needs to only pay a deposit of RM50 and pay the remaining amount
whenever he has the money. Hakimi agreed and paid RM50 to Yassin. The above
agreement is __________ because _______.

A. valid; the offer is clear.

B. voidable; there was undue influence.
C. void; the agreement is uncertain.
D. not valid; Hakimi is not capable of performing his promise.

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5. Which of the following persons is not competent to make a contract?

A. A 19-year-old student
B. An 88-year-old woman
C. An illiterate farmer
D. An insane person

6. Which of the following describes a contract made under coercion?

A. Johari threatened to sue Asha for breach of contract after Asha failed to pay
her debt to Johari.
B. Doris threatened to cancel her order to buy a car from Gopal if the car was not
delivered on time.
C. Jusoh threatened to burn Dahlia’s shop if Dahlia does not agree to sell her
apartment to Jusoh.
D. Ching threatened to report Gaga to the police when the laptop Ching purchased
from Gaga turned out to be a stolen good.

7. The following contracts may be discharged by impossibility EXCEPT for

A. JC agreed to perform at a concert, but he was stopped from entering the concert
venue when he recorded a temperature of 38.4 at the Covid19 checkpoint to
the venue entrance.
B. Jailani was hired by Thematic Training to conduct a training session in a hotel
in Pulau Pinang. He was not allowed to enter the hotel premises because he
was not wearing a face mask in compliance with the Covid19 standard
operating procedures.
C. A holiday tour package to Shanghai was cancelled by the tour operator when
all flights to China was banned due to the Covid19 pandemic.
D. Najihah entered into an agreement with Sri Baiduri Catering to provide catering
for 2,000 guests at her son’s wedding. Due to Covid19, the wedding was only
allowed to have 20 guests. She cancelled the catering contract, but Sri Baiduri
Catering threatened to sue her.

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8. Annette rented a condominium from Zakaria for RM3,200 per month. Their
agreement stated that Zakaria will pay the monthly service and maintenance fees to
the condominium’s management office. Annette recently received a notice from the
management office that the service and maintenance fees have not been paid for the
past three months. She was told that she would need to rectify the matters within 30
days or face legal action. What action should Annette take in this situation?

A. Annette may sue Zakaria for payment of exemplary damages.

B. Annette may rescind her agreement with Zakaria and claim restitution.
C. Annette may apply to the court for an injunction to order Zakaria to pay the
service and maintenance fees.
D. Annette may apply to the court for payment of quantum meruit for the service
and maintenance fees.

9. Which of the following statements about a principal is NOT TRUE?

i. A principal must be a man.

ii. A principal must be an adult.
iii. A principal cannot be a foreigner.
iv. A principal cannot be an unsound person.

A. i and ii only
B. i and iii only
C. ii and iv only
D. iii and iv only

10. Naim works as a cook in Mak Jah’s restaurant. Naim frequently orders goods for
the restaurant from Kedai Runcit Jati Diri. Mak Jah had always accepted and paid for
the goods delivered by Kedai Runcit Jati Diri. This describes the creation of agency
by

A. express appointment
B. implied appointment
C. ratification
D. necessity

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11. Which of the following is TRUE about the implied authority of an agent?

i. An agent may do any act that is not expressly prohibited by the principal.
ii. An agent may do any act that is usually done in that type of business.
iii. An agent may do any act that is proper and necessary to achieve his actual
authority.
iv. An agent may do an act that is unlawful if it is beneficial to the principal.

A. i and ii
B. ii and iii
C. iii and iv
D. i and iv

12. Which of the following situations describe a situation where an agent is considered
to have breached his duty of good faith?
i. Dinah sold her principal’s car for RM26,000 and received a RM25.00
Domino’s Pizza voucher from the buyer as a gift.
ii. George sold his principal’s apartment for RM350,000 and received a
deposit of RM50,000. He deposited the money in his own account and only
transferred the money to the principal’s account a week later.
iii. Zaid appointed Ah Kaw as an agent to sell his homemade chilli sauce. Ah
Kaw also agreed to help sell the products manufactured by Good Food
Enterprise which included chilli sauces.
iv. Salman instructed his agent Sanjay to buy a second-hand van. Sanjay
bought a van from his uncle but did not inform Salman who the seller was.

A. i, ii and iii
B. i, ii and iv
C. i, iii and iv
D. ii, iii and iv

13. Johnson appointed Halim as an agent to run his bookstore. Halim was later
diagnosed with Covid19 and had to be hospitalised for 5 weeks. After being
discharged from the hospital, Halim was advised to quarantine himself for 14 days
before returning to work. Johnson is not happy with all these delays. Can Johnson
terminate Halim’s appointment as an agent?

A. Johnson may not terminate the agency.

B. Johnson may terminate the agency without giving any notice.
C. Johnson may terminate the agency by giving a reasonable notice.
D. Johnson may apply to the court to terminate the agency.

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14. Which of the following is NOT a termination of an agency by operation of law?

A. Shanta instructed Ikmal to sell her house and Ikmal sold the house to Jane.
B. Paul dismissed his agent Aaron after he discovered that Aaron had lied to him.
C. Fuad was declared unsound five days after he appointed Don as an agent to
manage his travel agency.
D. Wai Lee works as an agent for a firm that sells herbal medicine. Last week,
police raided the firm and ordered it to immediately close its business for selling
herbal medicines that have been banned by the Ministry of Health.

15. Which of the following goods is NOT subject to the Hire Purchase Act 1967?

A. A bus
B. A sofa
C. An aeroplane
D. An electric guitar

Questions 16 to 17 are based on the following statement.

Lutfi made a hire purchase agreement for a television set from Murah Finance for
RM4280. The agreement was made on 9 June 2021 and Lutfi was given a pre-
contractual information about the television set on 16 June 2021.

16. What is the legal status of the hire purchase agreement?

A. It is valid.
B. It is void.
C. It is voidable.
D. It is enforceable.

17. The reason for the answer to the above question is that

A. the price of the goods was unreasonably high.

B. the agreement had not been signed by the parties.
C. there was a misrepresentation made by the owner to the hirer.
D. the pre-contractual information was given after the agreement was made.

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18. Hasanah entered into a hire purchase agreement for a sewing machine and a
microwave oven from Murah Finance. Hasanah was asked to sign one agreement only
for both items. This hire purchase agreement is ___________ because ___________

A. valid; the agreement is in writing.

B. valid; the agreement has been signed by the parties.
C. void; there must be a separate agreement for each of the goods
D. void; the goods are not covered by the Hire Purchase Act 1967.

19. Which of the following are the rights given to a hirer under the Hire Purchase Act
1967?

A. The right to withdraw from the hire purchase agreement if the hirer wishes to
do so for whatever reason.
B. The right to sell the goods to another person if the hirer is unable to complete
the payment for the hire purchase.
C. The right to ask for postponement of payment when the hirer experiences
financial difficulties.
D. The right to prevent the owner’s agent from entering the hirer’s house for the
purpose of repossession of goods.

20. Which of the following are the rights given to the owner in the Hire Purchase Act
1967 when goods have been repossessed?

i. The owner may ask the hirer to pay the amount in default only.
ii. The owner may refuse to accept payment from the hirer if the amount does
not include the incidental costs of the repossession.
iii. The owner may immediately sell the goods after issuing a notice under the
Fifth Schedule.
iv. The owner may refuse to sell the goods to a person introduced by the hirer
for cash, at a price of not less than the estimated value of the goods.

A. i and ii only
B. ii and iv only
C. i and iii only
D. iii and iv only

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Part B (30 marks)

Answer TWO (2) questions only.

QUESTION 1

Madam Wang was a 64-year-old lady who had been diagnosed with blood cancer.
She was hospitalised in a private healthcare facility for more than two years until her
death last month. During her time in hospital, a nurse called Aida was assigned to take
care of Madam Wang.

After Madam Wang’s death, her son Wee Lee discovered that his mother had sold her
house to Aida for RM25,000. Wee Lee believed that his mother had not made the
contract voluntarily and decided to challenge the validity of the sale.

Advise Wee Lee on whether he may do so.

(15 marks)

QUESTION 2

Khalil instructed his agent Leman to buy 300 cartons of apple juice from Murah Hyper
Mart as they were selling the juice at half price as part of a promotion. Leman forgot
to do so and when he went to Murah Hyper Mart a few days later, the promotion has
ended, and he had to purchase them at the normal price. Khalil became very angry
with Leman and scolded him. Leman retaliated by immediately quitting from his post.

Advise Khalil on the course of action available to him.

(15 marks)

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QUESTION 3

Rohan Singh entered into a hire purchase agreement with Suka Hati Finance in
January 2016 for a car at the price of RM93,000 to be paid in 72 instalments. Rohan
Singh defaulted in paying the instalments from March to April 2021 and the company
sent a notice to repossess the car on 8 May 2021. On 14 May 2021, Suka Hati Finance
heard rumours that Rohan Singh had become insolvent. They immediately
repossessed the car on 20 May 2021.

Rohan Singh is thinking of bringing a legal action on Suka Hati Finance for unlawful
repossession of his car.

Advise Suka Hati Finance.

(15 marks)

END OF QUESTION PAPER