CONFIDENTIAL LW/OCT 2012/LAW240/231

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE INTRODUCTION TO COMMERCIAL LAW /

BUSINESS LAW
COURSE CODE LAW240/231

EXAMINATION OCTOBER 2012

TIME 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of three (3) parts : PART A (20 Questions)
PART B (7 Questions)
PART C (1 Question)

2. Answer ALL questions from PART A, PART C and four (4) questions, from PART B:

i) Answer PART A in the Objective Answer Sheet.

ii) Answer PART B and PART C in the Answer Booklet. Start each answer on a new
page.

3. Do not bring any material into the examination room unless permission is given by the
invigilator.

4. Please check to make sure that this examination pack consists of:

i) the Question Paper

ii) an Answer Booklet - provided by the Faculty
iii) an Objective Answer Sheet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 9 printed pages
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PART A

1. The final court of appeal in Malaysia is :

a) The Federal Court

b) The High Court
c) The Sessions Court
d) The Court of Appeal
(1.5 marks)

2. Which of the following is NOT part of the legislative process?

a) Third Reading
b) Fourth Reading
c) Committee Stage
d) Royal Assent
(1.5 marks)

3. Sources of Islamic law comprised of the following :

i) Al-Quran
ii) As-Sunnah
iii) Ijmak
iv) Qisas

a) i and ii
b) ii and iii
c) i, ii, and iii
d) i, ii, iii and iv
(1.5 marks)

4. It was decided in this case that an advertisement is an invitation to treat:

a) Carlill v Carbolic Smoke Ball Co.

b) Harris v Nickerson
c) Pharmaceutical Society of Gt. Britain v Boots
d) Coelho v Public Services Commission
(1.5 marks)

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5. If the sound of an oral acceptance is drowned by a passing train, is there a

contract?

a) Yes, silence amounts to acceptance

b) No, acceptance may be revoked
c) No, acceptance must be communicated
d) Yes, acceptance may be done orally
(1.5 marks)

6. Tapau agreed to sell his motorcycle to Tapai at the price of RM30.000 or RM40.000.
There is no valid offer in this situation. Why?

a) the motorcycle is very expensive

b) the offeror is not the true owner of the motorcycle
c) there is a counter offer to the original offer
d) the term of the offer is uncertain
(1.5 marks)

7. Generally, the following people do not have the capacity to enter into a valid
contract, EXCEPT

a) infants
b) majors
c) insane people
d) bankrupts
(1.5 marks)

8. According to Section 14 of the Contract Acts 1950 consent must be free. It is said
not to be free if caused by .

i) coercion
ii) undue influence
iii) fraud
iv) misrepresentation

a) i
b) i and ii
c) i, ii, and iii
d) i, ii, iii and iv
(1.5 marks)

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9. When there is a breach of contract, the innocent party may claim the following
remedies:

i) Injunction
ii) Damages
iii) Frustration
iv) Rescission of contract

a) i and ii
b) i, ii, and iii
c) i, ii, and iv
d) i, ii, iii and iv
(1.5 marks)

10. An agent can delegate his duty to another person under the following circumstances
except

a) the act to be done is purely clerical in nature

b) the customs of the trade permits delegation
c) in the case of unforeseen emergency
d) the agent is lazy and neglects his duty
(1.5 marks)

11. Which of the following are goods under Sales of Goods Act 1957?

a) A double storey bungalow

b) A lemon tree
c) A set of furniture
d) A swimming pool
(1.5 marks)

12. Which of the following is NOT an exception to the Nemo Dat rule?

a) Sale by a mercantile agent

b) Sale by one of joint-owner
c) Sale under a voidable contract
d) Sale under a void contract
(1.5 marks)

13. The following are remedies available to an unpaid seller EXCEPT :

a) Right of lien
b) Right of stoppage in transit
c) Right to resell
d) Action in tort
(1.5 marks)
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14. What is the effect of a hire purchase agreement which is made orally?

a) valid
b) void
c) voidable
d) enforceable
(1.5 marks)

15. Section 5 (1) of the Hire Purchase Act 1967 requires the owner to serve on the hirer
and his guarantor a copy of the hire-purchase agreement within
after it is made.

a) 7 days
b) 14 days
c) 21 days
d) 30 days
(1.5 marks)

16. In determining whether an employee is working under a contract of service or

contract for services, the courts have applied several tests including:

i) The control test

ii) The organisational test
iii) The multiple test
iv) The objective test

a) i and ii
b) ii and iii
c) i, ii, and iii
d) i, ii, iii and iv
(1.5 marks)

17. How long is the notice required to terminate a contract of service of an employee who
has been employed for two years or more?

a) Four weeks
b) Six weeks
c) Eight weeks
d) Twelve weeks
(1.5 marks)

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18. The types of indorsement are as follows, except:

a) Distinctive indorsement
b) Conditional indorsement
c) Restrictive indorsement
d) Facultative indorsement
(1.5 marks)

19. Shakimon, when issuing a cheque, had crossed it with two parallel transverse lines
and added in between those lines the words "Bank Kaya Raya Berhad" together with
the words "not negotiable". What is the type of crossing that was made by
Shakimon?

a) Special crossing
b) General crossing
c) Limited crossing
d) Unlimited crossing
(1.5 marks)

20. Which of the following is one of the conditions of Islamic Banking?

a) Usury
b) Zakat
c) Uncertainty
d) Illegitimate profits

(1.5 marks)

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PARTB

QUESTION 1

Briefly elaborate the hierarchy and composition of the superior courts in Malaysia.

(10 marks)

QUESTION 2

One day, Udin bought nasi lemak from Restoran Nenek Kebayan. After eating the food, he
was hospitalised for food poisoning.

Advise Udin as to his rights under the Sale of Goods Act 1957.
(10 marks)

QUESTION 3

Briefly discuss the statutory rights of a hirer as provided under Part IV of the Hire-Purchase
Act 1967.
(10 marks)

QUESTION 4

Leman, instructed Aiman to deliver a consignment of fruits from Kangar to Kuala Lumpur.
When the lorry arrived at Bukit Gantang, there were dangerous landslides which caused the
road to be closed and not accessible by any transport. Aiman decided to sell the fruits to the
nearest fruit stalls owner for half of its price.

Advise Leman.
(10 marks)

QUESTION 5

Briefly explain the rights available to employees when they have been dismissed without just
cause or excuse.
(10 marks)

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QUESTION 6

Discuss any two (2) the following :

a) Bay' al-lstisna (sale on order)

b) Bay' al-salam (deferred delivery)
c) Bay' Bithamil Ajil (deferred sales)
(10 marks)

QUESTION 7

Define takaful and explain its basic principles.

(10 marks)

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PARTC

QUESTION 1

a) On 1st March 2012, Boo Lat put the following advertisement in a local website,
senang.com.my:
Android Phone for Sale
Samsung Galaxy Note
RM1.500
White Colour,
100% Good Condition,
Contact Boo Lat: 019-2700000

Boon Chit read the advertisement and immediately sent the following text message
to Boo Lat: "I wish to buy the phone as advertised. If I do not hear from you by
tomorrow evening, I shall assume that you have accepted my proposal." Boo Lat did
not care to answer Boon Chit. The next two days, Boon Chit went to Boo Lat with the
money to purchase the phone. Boo Lat refused to sell the phone to Boon Chit
because he has agreed to sell it to Boo Yong. Advise Boon Chit.
(20 marks)

b) "A proposal can be terminated in several ways."

Briefly explain the above statement.

(10 marks)

END OF QUESTION PAPER

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