EXAMINATION NO.

______________________

2021 EXAMINATIONS

ACCOUNTING TECHNICIAN PROGRAMME

T1.4 : BUSINESS LAW

MONDAY, 31 MAY 2021 TIME ALLOWED : 3 HOURS

INSTRUCTIONS

1. You are allowed 15 minutes reading time before the examination begins during which you
should read the question paper and, if you wish, make annotations on the question paper.
However, you will not be allowed, under any circumstances, to open the answer book and
start writing or use your calculator during this reading time.

2. Number of questions on paper - 5.

3. Answer all the FIVE questions.

4. Each question carries 20 marks.

5. Your answers must be supported, where appropriate, by relevant decided cases and
statutory provisions.

6. Begin each answer on a fresh page.

7. DO NOT OPEN THIS PAPER UNTIL YOU ARE INSTRUCTED BY THE

This question paper contains 3 pages

This question paper must not be removed from the examination hall.
1 Discuss the importance of the following court decisions in relation to Business Law:

(a) Joseph Chidanti Malunga v Fentects Consultants (A Firm) and Bua

(b) Chimpeni and others v Chibuku Products Ltd HC Civil Cause No. 3225 of
2002. 5 Marks

(c) Bishospgate Motor Finance Corporation Ltd v Transport Brakes Ltd [1949]
1 KB 332. 5 Marks

(d) Heydon’s Case (1836) 2m and w 195. 5 Marks

2 Lameck Phiri is a prominent business person in the City of Zomba. On 10th January
2021 he instructed his bank, AM Investment Bank, to transfer a sum of K500 million
from his account to a China based supplier of fertilizer manufacturing equipment (Zuku
Zuku Inc.). Lameck was advised by Zuku Zuku Inc. that there was only one unit
remaining for sale and payment should be received by 15th January 2021, failing which
it would be allocated to the next order. Lameck, in turn strictly advised the Bank to
make the transfer before the due date. However, due to its own negligence, the bank
only effected the transfer of the funds on 20th January 2021 by which time the
equipment had already been taken under the next order. Lameck is furious with the
bank as he will consequently be unable to honour a multi-billion contract with the buyer
to supply fertilizer.

Required

(a) Advise Lameck whether a valid contract exists between him and Zuku Zuku
Inc. and whether he can sue Zuku Zuku Inc. for the delivery of the machinery.
10 Marks

(b) In relation to the law of agency, explain any three duties that AM Investment
Bank has breached. 6 Marks

(c) In relation to the law of agency, outline the remedies that Lameck may pursue
in the circumstances. 4 Marks
(TOTAL: 20 MARKS)

3 (a) State any two elements of a valid contract. 2 Marks

(b) Distinguish an “intentional tort” from a ‘strict liability tort’. 8 Marks

(c) Mrs Bokosi has been employed as a chef at Mangochi Hotel Limited for the
past five years. Due to the outbreak of the Corona Virus, the Hotel is unable to
sustain its operations as there is no business. The Hotel has thus advised Mrs
Bokosi that it will close down its operations and all staff will be retrenched.

Required

Advise Mrs Bokosi the legal position on the following;

(i) Whether or not, under the Employment Act 2000, the Hotel is justified
in retrenching Mrs Bokosi. 5 Marks

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 (ii) Assuming Mrs Bokosi was paid below the minimum wage during the
course of her employment, what remedies would the law avail her?
5 Marks
(TOTAL: 20 MARKS)

4 (a) How important is the court decision in Carlill v Carbolic Smoke Ball Co.
[1893] 1 Q.B. 256? 4 Marks

(b) What roles do the offices of the Attorney General and the Director of Public
Prosecutions play in the Malawi legal system? 4 Marks

(c) Under what circumstances may custom be considered as a source of law in

(d) In relation to personal property security;

(i) Explain the function that the Personal Property Security Registry plays.
4 Marks

(ii) How does the Personal Property Security Act provide for subordination
of security? 4 Marks
(TOTAL: 20 MARKS)

5 (a) In relation to the contract of sale of goods;

(i) Distinguish ‘transportation’ from ‘delivery’ of goods. 4 Marks

(ii) Comment on damages as the principal remedy of the buyer. 5 Marks

(b) (i) State any three parties to a bill of exchange. 6 Marks

(ii) Explain the meaning of ‘acceptance’ in relation to bills of exchange.

END

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