CONFIDENTIAL LWIJUN 2018/LAW231/240 Ss UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE : BUSINESS LAW / INTRODUCTION TO. COMMERCIAL LAW COURSE CODE : LAW231/240 EXAMINATION : JUNE 2018 TIME : 3HOURS INSTRUCTIONS TO CANDIDATES 1 This question paper consists of three (3) parts: PART A (20 Questions) PART B (6 Questions) PART C (1 Question) 2 ‘Answer ALL questions in PART A and PART C and only four (4) questions in 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 iil) an Objective Answer Sheet — provided by the Faculty 6 Answer ALL questions in English, DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 7 printed pages © Hak Cipta Universiti Teknologi MARA, CONFIDENTIAL,CONFIDENTIAL 2 LWIJUN 2048/LAW231/240 PARTA 1. Written laws in Malaysia comprise the following i) Legislation ii) English Law iii) Federal Constitution iv) Subsidiary Legislation v) Customary Law a) iii andi b) °) ¢ iii iiiandiv 2. Sources of Istamic law are comprised of the following i) AbQuran ii) Sunnah iit) Ijma’ iv) Qiyas v) Native law a) i, ii, ii ») iiiiv cc) i, ii, iii, iv @) v 3. The main elements of a contract include all of the following EXCEPT a) b) oc) d) offer and acceptance consideration invitation to treat intention to create legal relation 4. Didi agreed to sell his car to Jojo at the price of RM20,000 or RM30,000. There is no valid offer in this situation because a) b) °) d) the car is very expensive the offeror is not the true owner of the car the consideration is inadequate the term of the offer is not certain (© Hak Cipta Universiti Toknologi MARA CONFIDENTIAL,CONFIDENTIAL 3 LWIJUN 2018/LAW231/240 5. Consideration in contract formation includes the following categories EXCEPT a) _ executive consideration b) executed consideration ) —_executory consider d) past consideration 6. Jack owed Ben RM10,000. He paid Ben RM8,000. Ben agreed to accept the payment in full and final satisfaction of the debt. The whole debt is a) discharged b) precluded ©) accepted d) secured 7. A party to a contract is deemed to be in a position to dominate the will of another in the following circumstances EXCEPT ; a) where he holds a real or apparent authority over the other b) where he takes unfair advantage of the subsisting relationship between him and the other party ©) where he makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness or mental or bodily distress 4) where he intends to cause a person to enter into an agreement by threatening to detain his property 8 Lara agreed to sing at Moon Night Club for four months. She also promised not to sing at other night clubs during that period, One month later, Lara signed a contract to sing at Twinkle Night Club every weekend. What is the most suitable remedy which may be taken by Moon Night Club against Lara? a) Quantum meruit b) Specific performance ©) Injunction d) —_ Rescission 9. Which of the statutes govern the law of agency in Malaysia? a) Agency Act 1950 b) Contracts Act 1950 ) Employment Act 1955 d) Sale of Goods Act 1957 © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL,CONFIDENTIAL 4 LWIJUN 2018/LAW231/240 10. "1 12. 13. 14. 15. Choose two (2) situations where agency by ratification may arise: i) Anagent who had acted in good faith ii) Anagent who was given sufficient allowance for buying the goods iil) An.agent who was appointed has exceeded his authority iv) Anagent who had no authority to act on the principal's behalf has acted as if he has the authority a) iandii b) indi °) nd iv i, iiand i An agent may only delegate his job to another person when a) the agent has planned a vacation on the relevant date b) the principal approves the delegation ©) the job involves his or her skill and discretion d) the agent faces inconveniences in the job assigened The difference between a ‘sale’ and ‘an agreement to sell’ is. a) __ the price of the goods b) the quantities of the goods to be supplied c) __ the time when property in the goods is transferred to the buyer d) the qualities of the goods to be supplied “Caveat Emptor” means a) The goods must correspond with the description b) _Let the buyer beware ©) Noone can give a better title than he has himself d) Let the buyer enter a caveat ‘The Nemo Dat Quod Non Habet is a legal rule which explains: a) the principle of ownership of goods b) the types of goods for the sale of goods ©) __ the principle of implied condition as to merchantable quality 4) the principle of implied condition as to sale by sample The following are statutory rights of a hirer EXCEPT: a) The rights to an early termination b) The rights to sell the goods hired c) The rights to assign his rights, interest and title d) The rights to remove the goods to another place © Hak Cipta Universit! Teknologi MARA CONFIDENTIALCONFIDENTIAL 5 LWIJUN 2018/LAW231/240 16. 17. 18. 19. 20. Arrange the repossession procedures below, in sequential order: i) Repossession ii) Default in payment of instalment iii) Issuance of fifth schedule Notice iv) Issuance of the fourth schedule notice a) iy iliandiv b) ii iv,iand ©) iii, ivandiii d) iwiiandii is where the employee breaks the company's rule and behave improperly a) Misconduct b) Prerogative ©) Reinstatement d) Privilege According to section 20(1A) of the Industrial Relation Act 1967, what is the time limit for a workman who has been unfairly dismissed to file representation at the office of the Director General of Industrial Relation? a) 30 b) 25 °) 10 d 60 Acheque is defined as a) — Acheque is a withdrawal bill, drawn on a banker, payable on sight b) — Acheque is a bill of exchange, drawn on a banker, payable on demand c) Acheque is a promissory note, drawn on a banker, payable on specific date d) A cheque is a bill of exchange, drawn on a banker, payable at a fixed or determinable future time. The principle of Wadiyah or Deposits states that anyone who accepts a deposit is responsible to a) keepit safely b) _ invest it profitably ©) _use it for business d) move it to other places (30 marks) (© Hak Cipta Universiti Teknologi MARA, CONFIDENTIALCONFIDENTIAL 6 LWIJUN 2018/LAW231/240 PARTB. QUESTION 1 Briefly explain how an agency can be terminated by operation of law. (10 marks) QUESTION 2 Emilia bought a smart television from Kang Electrical Enterprise for the price of RM1500. However, the television exploded when she used it for the third time. Emilia seeks your advice as to whether she can sue Kang Electrical Enterprise for breach of implied conditions under the Sale of Goods Act 1957. Briefly explain the exceptions to the rule of caveat emptor. (10 marks) QUESTION 3 Hafiz wishes to purchase a new washing machine and furniture; however he does not have enough funds. He comes to seek your advice as to how a valid hire purchase agreement is formed. Briefly describe the formalities required for the formation of a hire purchase agreement in accordance with the Hire Purchase Act 1967. (10 marks) QUESTION 4 Explain the differences between a contract of service and a contract for service. (10 marks) QUESTION 5 Discuss the relevant protections given to a paying banker under the Bills of Exchange Act 1949. (10 marks) QUESTION 6 Differentiate the principles of Islamic banking from conventional banking in Malaysia (10 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL,CONFIDENTIAL 7 LWIJUN 2018/LAW231/240 PART C. QUESTION 1 a) On Sunday morning, Ikram posted the following advertisement on his facebook: A Car For Sale Toyota Vios (2016) Good Condition, Low Mileage, Accident Free, RM 40,000 Contact Ikram : 011-2340000 Ikram’s friend, Bella saw the advertisement on Monday morning and immediately sent the following message through WhatsApp to Ikram: “L agree to the price of RM35,000. If | do not hear from you this Friday evening, | shall assume that you have accepted my proposal.” Ikram did not care to answer Bella. On Saturday moming, Bella went to see Ikram with the money to buy the car. Ikram refuses to sell the car to Bella because he has agreed to sell the car to his cousin, Aizat. Advise Ikram. (20 marks) b) Write short notes on any TWO (2) of the followings: (Intention to create legal relation for family or domestic agreement. Modes of revocation of offer. (ii) Contract entered by minor for apprenticeship. (10 marks) END OF QUESTION PAPER © Hak Cipta Universiti Teknologi MARA, (CONFIDENTIAL