CONFIDENTIAL 1 LW/FEB 2022/LAW166/251/299/379

UNIVERSITI TEKNOLOGI MARA

FINAL ASSESSMENT

COURSE : BUSINESS LAW

COURSE CODE : LAW166/251/299/379

EXAMINATION : 8 FEBRUARY 2022
TIME : 8 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two (2) parts: PART A (20 Questions)
PART B (3 Question)

2. Answer all questions in PART A.

Answer ANY TWO (2) questions in PART B.
Start each answer on a new page.

3. Answer ALL questions in English.

4. Write your answer in a word document or a Google document. You may convert the document into
a pdf file.

5. Save your file as “[your name] Law299 Final Assessment Feb 2022”

6. Submit your answer in Google Classroom and take a screen shot of the submission page as
record and evidence that you have submitted your work.

7. Complete all the information in the Answer Cover page and attach it to your answer.

8. Attach the UiTM’s Academic Integrity Pledge form together with your answer.

Students are reminded to not copy during the final assessment

God Almighty is watching!
 CONFIDENTIAL 2 LW/FEB 2022/LAW166/251/299/379

Part A

1. Which of the following is NOT an invitation to treat?

A. An advertisement for the auction of a shop lot

B. A pair of blouse on a mannequin in a boutique
C. An online post announcing the arrival of a new e-reader tablet
D. A brochure for a free spa service with every purchase of cosmetics over the price of
RM350

2. Aris offered to sell his car to Idris for RM18,000. He told Idris “my car is the red sedan in
the parking lot”. Is this offer valid?

A. Yes, because the car exists

B. No, because the offer is not clear
C. No, because the offer is not in writing
D. Yes, because the price of the car is reasonable

3. Which of the following statements is TRUE about the Postal rule?

A. An offer cannot be revoked by post

B. An offeror is not bound by the contract until he has received the letter of acceptance
C. An offeree is not bound by the contract until the letter of acceptance has been posted
D. A contract may exist even if the acceptance posted by the offeree did not reach the
offeror

4. Sahara sold her diamond ring, which is worth RM2,300 to Hani for RM100. What is the legal
issue in this situation?

A. Invitation to treat
B. Certainty of terms
C. Capacity of contract
D. Adequacy of consideration
 CONFIDENTIAL 3 LW/FEB 2022/LAW166/251/299/379

5. Which of the following transaction can be described as uncertain?

A. Asiah agrees to buy Ikmal’s car if Ikmal agrees to fix the car’s gearbox
B. Nazir offered to sell his house to Zurina with or without the furniture in it
C. Dorothy agrees to sell her antique lamp to anyone who offers the highest price
D. Mukhriz offered to sell a plot of land to Chong at a price subject to the market value

6. A minor is permitted to make contracts in certain situations. Which of the following are those
situations where a minor may do so?

i. An 11-year-old child purchased an insurance policy

ii. A 16-year-old student received a scholarship to study physics
iii. A 17-year-old boy ordered an Xbox so that he can play online games with his
friends
iv. A talented 15-year-old girl was offered a 2-year contract by a music studio to sing and
record music albums

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

7. A voidable contract is a contract which is

A. void ab initio
B. valid but becomes void because of an illegality
C. valid until the innocent party chooses to avoid it
D. valid but cannot be enforced because it does not comply with certain requirements of
the law

8. Which of the following best describe a contract made under undue influence?

A. An illiterate woman transfers land to her 14-year-old son

B. A terminally ill person sells his apartment to his nurse for RM15,000
C. An old farmer sells his paddy field worth RM800,000 to his niece for RM700,000
D. A 20-year-old student borrows RM10,000 from her uncle to pay for her university fees
 CONFIDENTIAL 4 LW/FEB 2022/LAW166/251/299/379

9. A contract is discharged by performance in the following situations EXCEPT

A. the parties have performed all the terms in the contract

B. the parties have received what they wanted in the contract
C. the parties have performed the contract in the time specified
D. the parties have performed most of the obligations in the contract

10. Wai Mee is a famous singer who has contracted with Performa Music Studio for 3 years.
He promised that he will not record any music album with other parties during the 3-year
period. Wai Mee later received an invitation to record an album in London with Musicvilla
Group. Wai Mee accepted the deal without informing Performa Music Studio about it.

What is the best remedy for Performa Music Studio?

i. Terminate the contract with Wai Mee

ii. Apply for a prohibitory injunction
iii. Claim for specific performance
iv. Sue for damages

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

11. Which of the following statement is TRUE about an agency?

A. A principal must reach the age of majority and possess sound mind
B. An agent must reach the age of majority and possess sound mind
C. If the principal is a minor, the contract of agency is valid
D. If the agent is a minor, the contract of agency is void
 CONFIDENTIAL 5 LW/FEB 2022/LAW166/251/299/379

Questions 12 and 13 are based on the table below

Date Events

3 January 2022 Pak Abu instructed Salamah to sell his durian orchard for
RM35,000

9 January 2022 Affendy offered to buy Pak Abu’s durian orchard for
RM32,000
12 January Salamah accepted the offer made by Affendy
2022

13 January Salamah informed Pak Abu that she had sold the durian
2022 orchard to Affendy for RM32,000

14 January Pak Abu approved the sale to Affendy

2022

12. Which of the following statement is NOT TRUE about the situation in the table above?

A. Pak Abu may choose whether to accept or reject the agreement made by Salamah
on 12 January 2022
B. Pak Abu is not bound by the agreement made by Salamah until 14 January 2022
C. Pak Abu cannot approve the agreement made by Salamah on 12 January 2022
D. Pak Abu had expressly appointed Salamah as his agent on 3 January 2022

13. Based on transaction above, Pak Abu’s liability will operate from

A. 3 January 2022
B. 12 January 2022
C. 13 January 2022
D. 14 January 2022
 CONFIDENTIAL 6 LW/FEB 2022/LAW166/251/299/379

14. Which of the following situations would allow an agent to claim indemnity from the
principal?

i. An agent bought an airplane ticket to meet the third party

ii. An agent was injured by a fire that occurred at the principal’s warehouse when he
went to collect some goods for delivery to a buyer
iii. An agent had to hire a lawyer when he was sued by the third party after the principal
refused to honour the contract with the third party
iv. An agent was fined RM100 for parking on a ‘No Parking’ zone when he went to renew
insurance for the principal’s property

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

15. Which of the following situations will result in an automatic termination of an agency?

A. Elton hired Fiona to operate a self-service laundry shop for him, but Fiona had to be
hospitalised for two months after she was involved in a car accident
B. Maimunah appointed Haziq who is 16 years old to sell her home-made cookies
C. Kahar sold a shop for Marzuki and received a secret commission of RM10,000 from
the buyer
D. Amar employed Gary to manage his car rental business. Three weeks later, Amar was
declared bankrupt

16. Which of the following goods is subject to the Hire Purchase Act 1967?

A. A three-storey house
B. An aeroplane
C. A ship
D. A bus
 CONFIDENTIAL 7 LW/FEB 2022/LAW166/251/299/379

17. Taufiq entered into a hire purchase agreement with Absolute Finance for a second-hand
Proton Persona at the price of RM30,000. Taufiq took possession of the car on 27 January
2022, but Absolute Finance refused to hand over the vehicle registration certificate to him.

Which of the following correctly describe the legal position in Taufiq’s situation?

A. Taufiq has the right to obtain the vehicle registration certificate from the owner
B. The owner may ask Taufiq to pay a fee to obtain the vehicle registration certificate
C. The owner has the right to keep the vehicle registration certificate until Taufiq has made
full payment
D. Taufiq must apply to the court for permission to obtain the vehicle registration certificate

18. Wong entered into a hire purchase agreement for a car with the following description
“Honda Civic, automatic, red colour, leather seat cover”. When the car was delivered, Wong
found that the colour of the car was white and only the front seats had leather cover.

What action may Wong take against the owner in this situation?

A. Wong may sue for damages only

B. Wong may repudiate the agreement only
C. Wong cannot take any action against the owner
D. Wong may repudiate the agreement or sue for damages

19. Which of the following cannot be carried out before expiry of the 21 days’ notice under
the Fourth Schedule?

A. Repossession of the goods

B. Waiver of notice by the owner
C. Payment of the default by the hirer
D. Payment of the default by the guarantor
 CONFIDENTIAL 8 LW/FEB 2022/LAW166/251/299/379

20. Diana defaulted in two payments on her car from November to December 2021. She
received a notice from the owner to repossess the car on 15 January 2022. On 26 January
2022, Diana went to the owner’s office and paid the default amount in full.

Which of the following are the rights given to the parties under the Hire Purchase Act
1967?

i. Diana may regain possession of the car

ii. The owner may ask Diana to pay the costs of repossession in addition to the amount
in default
iii. The owner may refuse to accept the default payment
iv. The owner must redeliver the car to Diana immediately

A. i and ii
B. i and iv
C. ii and iii
D. ii and iv
 CONFIDENTIAL 9 LW/FEB 2022/LAW166/251/299/379

Part B

QUESTION 1

On 5 January 2022, Rahayu offered to sell her diamond necklace to Leticia and Rohini for
RM14,000. The offer was open until 25 January 2022 and whoever accepted the offer first will
get to purchase the necklace. Leticia sent a text message to Rahayu on 19 January 2022
accepting to buy the necklace at the price of RM13,000. Rahayu read the text message but
did not reply. Rohini phoned Rahayu on 21 January 2022 and agreed to buy the necklace for
RM14,000. Rahayu then sold the necklace to Rohini. When Leticia heard about this, she
threatened to sue Rahayu for breach of contract.

Advise Rahayu.
(15 marks)

QUESTION 2

Chia hired Gloria to sell his property for not less than RM400,000. Gloria later discovered that
there is a plan to build an LRT station near Chia’s property which will increase the market
value of Chia’s property to over RM600,000. Gloria and her husband Roger decided to form a
partnership called Big Properties to purchase Chia’s property. Gloria sold Chia’s property to
Big Properties for RM420,000 without informing Chia about her position in Big Properties. Big
Properties subsequently managed to sell the property to another investor for RM650,000.

When Chia found out that Gloria was a partner in Big Properties, he threatened to take legal
action against Gloria.

Advise Chia on whether he could do so.

(15 marks)
 CONFIDENTIAL 10 LW/FEB 2022/LAW166/251/299/379

QUESTION 3

Gopal entered into a hire purchase agreement with Dynamic Finance Bhd. for the purchase
of a smartphone on 19 January 2022. The hire purchase agreement was hand-written in the
Tamil language with blue ink. When Gopal was asked to sign the hire purchase agreement,
he noticed that many of the provisions in the agreement were incomplete. When he requested
Dynamic Finance Bhd. to fill in the incomplete sentences, he was told that this would lead to
a long delay in finalising the hire purchase agreement and incur additional costs to him. Gopal
reluctantly signed the hire purchase agreement but is not happy about it.

Advise Gopal on the validity of the hire purchase agreement.

(15 marks)

END OF QUESTION PAPER