University of Colombo, Sri Lanka

Institute of Human Resource Advancement

Master of Business Management – Course No. 07 – 2018

Batch - 1 and Batch – 2

2nd Trimester - Examination

MBM 5231 - Commercial (Business) Law

Model Paper

Instructions for Candidates

1) Answer only five (05) questions.

2) Time allocated for the examination is three (03) hours.

3) This paper consists of eight (08) questions and four (04) pages.

4) Write your registration number on all pages of the answer script.

5) If a page or a part of this question paper is not printed, please inform the supervisor

immediately.

1
1) (a) Praneeth Sales Agent promotes to sell Mini Lap Top Computers brand named
HP Pavilion G Series. After examining a sample of this Mini Lap Top
Computer, Gayan ordered one. But, Praneeth Sales Agent had delivered a
Mini Lap Top Computer brand named Lenovo Pavilion G Series. Can Gayan
refuse this Mini Lap Top Computer? (10 Marks)

(b) Dammika went to Anura Tailors and asked to make a coat. He said that the
coat should be made with only cotton fabric as he has been suffering from a
severe skin disease for a long time. Anura Tailors had made the coat. The
outer side of the coat had been made with cotton fabric, but the inner side had
been made with wool fabric. Can Dammika file action against Anura Tailors?
(10 Marks)
(Total 20 Marks)

2) “The copyright protection covers only the original works of authorship. The
„originality‟ concerns the expressions of ideas and not the ideas themselves. Such
expressions need not to be novel.‟
DM Karunaratna, Elements of the Law of Intellectual Property in Sri Lanka, 2nd
edition, 2013, 58-59.
Discuss above statement with relevant to Copyright protection.
(20 Marks)

3) “We see billboards on our own highways with Sri Lankan cricketing star Sanath
Jayasuriya proudly showing his mobile phone and saying „My cash is in my Wallet‟,
indicating transfer of funds through his mobile phone. While the negotiable
instrument (a piece of paper) soon took the place of bullion (gold or silver) and later
currency and coin – as the method of effecting payments, more recently even such
negotiable instruments are being replaced by modern customary practices making the
world a “cashless society”.
‘Customary Practices Legal and Judicial Fictions Relating to Banking and
Negotiable Instruments’, Dr. Wickrema Weerasooria, 20th Anniversary Conference
Sri Lanka, Association of Professional Bankers.
Evaluate the above statement. (20 Marks)

2
4) (a) Amaradasa had got fire insurance policy for his Paper Factory from Quick
Service Insurance Company. His factory was set on fire due to an electric
short-circuit. In this tragic scenario, he did not take any step to stop the fire.
He said that “no need to get excited and worry; the factory has been insured;
damages can be claimed.” Can he actually claim damages?
(10 Marks)

(b) Pradeep insured his two 5 Acres Palm Estate for Twelve Million Rupees (Rs.
12,000,000/=) in two insurance companies. “Suhada Insurance Company” for
Seven Million Rupees (Rs. 7,000,000/=) and “Friendly Insurance Company”
for Five Million Rupees (Rs. 5,000,000/=). His 5 Acres Palm Estate was
damaged by heavy rain and a cyclone. His actual property loss is Four Million
Rupees (Rs. 4,000,000/=). How much should each insurance company pay
Pradeep as compensation? (10 Marks)
(Total 20 Marks)

5) (a) Amarabandu Rupasinghe wrote a book called “Song of the Life”. He gives his
book to Kate Publishers for the purpose of printing and publishing. Kate
Publishers agrees to pay Amarabandu Rupasinghe half share of the profit
earned by the book selling. After the printing procedure the book release to
book market for the sale. Kate Publishes obtain an adequate profit from the
sale. Amarabandu Rupasinghe is paid half share of the profit as they agreed.
However Amarabandu Rupasinghe argues that he is entitle for the full amount
of the profit. Advise Kate Publishers. (10 Marks)

(b) “Opa Dupa” newspaper publishes a news article on a rape incident committed
in Maravila town. Another newspaper called “Gossips” reproduced the same
news and used it their newspaper. “Opa Dupa newspaper wishes to obtain a
restrain order to prohibit the publication of same column by the “Gossip” New
paper. Explain the legal issues in above incident.
(10 Marks)
(Total 20 Marks)

3
6) “The Implied Terms of the Contract of Sale of Goods make Responsibilities to the
Seller and Protections to the Buyer in Sri Lanka.” Do you agree with this statement?
Discuss your answer with related Statutory Provisions and Case Laws.
(20 Marks)

7) Nimal is the Managing Director of a famous cosmetics Company called Fair Eagle
(Pvt) Ltd. Usually he visits 30 foreign countries per a year for the marketing purpose
of his business. Therefore Nimal opens a joint account in “Saubagya” bank, with his
wife Preethi and deposits money for Preethi‟s own uses. “Saubagya” bank accepts to
honour the cheques signed by both Niaml and Preethi. After two three years Nimal
come to know that his wife had fool away the money. Therefore Nimal closes the
joint account and an account is opened in the sole name of him. Due to this reason
preethi does not have any authority to draw cheques on the account of Nimal.
Accordingly, Preethi repeatedly forges her husband‟s signature to the cheques and
draw out money for her own uses. Nimal becomes aware of the forgeries but he is
persuaded by Preethi not to inform the bank. He decides to be quite for 10 months and
finally he reports to the bank. Preethi is committed suicide because she couldn‟t
tolerate the disgrace happened. Nimal wishes to sue the Saubagya bank. Advise
Nimal. (20 Marks)

8) “Principles of Insurance do not allow the insured to be unjustly enriched.” Do you

agree with this statement? Discuss your answer with relevant Legal Principles and
Case Laws. (20 Marks)

*****