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CONFIDENTIAL LWMAR 201 6/LAW1 66t251 t299t37 I

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE BUSINESS LAW

COURSE GODE LAW166/251t299t379
EXAMINATION MARCH 2016
TIME 3 HOURS

INSTRUCTIONS TO GANDIDATES

1. This question paper consists of two (2) parts : PART A (25 Questions)
PART B (7 Questions)

2. Answer ALL questions from PART A and ONLY THREE (3) questions from PART B.

i) Answer PART A in the Objective Answer Sheet and attach it to the Answer Booklet.
ii) Answer PART B 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

5. Answer ALL questions in English.

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

This examination paper conslsfs of I pinted pages
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CONFIDENTIAL LWMAR 201 6/LAW1 66t251 t299t37 I

PART A

1. Brandon offered to sell his computer to Jennifer for RM2, 500. Jennifer however
agreed to buy the computer at RM1, 000. Jennifer is making:

a) a cross-offer
b) an acceptance
c) a counter offer
d) an invitation to treat
(1 mark)

2. What was the offer in the case of Carlillv Carbolic Smokeball & Co. (1893) 1 QB 256.

a) A sum of money to anyone who contracted influenza after using the product
b) An offer to the general public
c) A medicine to prevent influenza
d) An offer to Mrs Carlill to use the product
(1 mark)

3. Frankie was forced to enter into a contract to sell his car, "Range Rover Evoque" last
week to Madau at a price of RM88, 000. The original price of the car was RM 368,000.
During the execution of the contract at Madau's office, Frankie was surrounded by
several of Madau's workers. These workers were physically big in size and spoke in a
very rude manner. Some even canied parangs and threatened to harm him. Frankie is
entitled to recover his car as a consequence of:

a) misrepresentation
b) mistake
c) undue influence
d) coercion
(1 mark)

4. lf the sound of an oral acceptance is drowned by a passing train, is there a contract?

a) Yes, acceptance may be done orally.

b) No, silence may be revoked.
c) No, acceptance must be communicated.
d) Yes, silence amounts to acceptance.
(1 mark)

5. Section 26(a) of the Contracts Act 1950 provides that an agreement made on account
of natural love and affection requires no consideration. Which of the following is NOT a
condition for this exception?

a) The agreement must be made on account of natural love and affection between
parties standing in near relations.
b) The agreement is made to compensate a promise.
c) The agreement must be registered under the relevant law.
d) The agreement must be in writing.
(1 mark)

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CONFIDENTIAL 3 LWMAR 2016/1AW166t2s1t2991379

6. The case that explains the formation of agency by necessity is:

a) Freeman & Lockyear v Buckhurst Park Propperties [1964] 2 QB 480

b) Chan Yin Tee v William Jack [1964] MLJ 290
c) Springer v Great Westem Railway Co [1921] 1 K.B. 257
d) Venkata Chinnaya v Verikataramaya (1881) ILR 4 Mad 137
(1 mark)

7. The following are the conditions for agency by ratification EXCEPT:

a) ratification must not injure the rights of a third party.

b) it is an illegal contract.
c) ratification must be made within a reasonable time.
d) the principal must have contractual capacity at the time of the agent's act.
(1 mark)

8. The main duties of an agent to his principal are as follows:

i) To exercise care and diligence in carrying out his work.

ii) To render proper accounts when required.
iii) To pay to his principal all debts owed to him.
iv) Not to act solely for the benefit of his principal.

a) i and ii
b) i, ii and iii
c) iii and iv
d) All of the above
(1 mark)

9. Termination of agency can be done by the following circumstances EXCEPT:

a) insanity of either principal or agent.

b) bankruptcy or insolvency of the principal.
c) events which renders the agency unlaMul.
d) an agent acting in'good faith.
(1 mark)

10. The person who is appointed by the agent with authorization by the principal, to act in
the business of the agency and is under the control of the agent is known as

a) a substituted agent
b) a sub-agent
c) an assistant
d) a temporary agent
(1 mark)

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CONFIDENT!AL 4 LWMAR 2016/LAW16612511299t379

11. Howl bought two pairs of red shoes after he was shown a sample by Sofie. One pair of
the shoes delivered to Howl was yellow, which was of the same colour as the sample
but the other was red. ln this case, the seller has breached the implied condition as
stated in under the Sale of Goods Act 1957.

a) Section 17 (2)
b) Section 14(a)
c) Section 16 (1) (a)
d) Section 18
(1 mark)

12. Which of the following are the rights given to an unpaid seller?

a) lien, specific performance and injunction

b) lien, damages and right of stoppage in transit
c) lien, right of stoppage in transit and right of resale
d) Iien, injunction and right of resale
(1 mark)

13. Which of the following is NOT the exception to lhe nemo dat quad non habet rule?

a) sale by a hirer
b) sale by one of joint owners
c) sale by a buyer in possession after sale
d) sale by a mercantile agent
('1 mark)

14. "Caveat emptof' means:

a) seller is silent
b) buyer fails to make payment
c) third pady rights
d) let the buyer beware
(1 mark)
15. A breach of "warranty" gives rise to a claim of :

a) Iien
b) consideration
c) damages
d) estoppel
(1 mark)

16. The effect of Section 5(1) of the Hire Purchase Act 1967 will render a hire purchase
contract

a) discharged
b) unenforceable
c) void
d) voidable
(1 mark)

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{ ..NFTDENTAL LWMAR 201 6/LAWI 66t 251 t299 t37 I

17. Which of the following cases decided that the repossession was void as it was carried
out before the expiry of the period as stated in the Hire Purchase Act 1967?

a) Phang Bros Motors Sdn Bhd v Lee Aik Seng (1978) 1 M.L.J. 179
b) Public Finance v Ehwan Saring [1996] 1 CLJ 628 HC
c) MBF v Ting Kah Kuong [1993] 3 MLJ 73
d) Chan Yin Tee v William Jack 119641 MLJ 290
(1 mark)

18. A hire purchase agreement includes a _ of goods with an option to

and an agreement to purchase the goods by _.
a) purchase .,.... renew...... installments
b) sa|e...... own.. .... installments
c) hiring ...... transfer.. .... installments
d) letting. ..... purchase.. .... installments
(1 mark)

19. A cheque is a _ drawn on payable on

a) withdrawal bill, a banker, sight

b) bill of exchange, a banker, at a fixed or determinable future time
c) promissory note, a banker, a specific date
d) bill of exchange, a banker, demand
(1 mark)

20. The following are the characteristics of a cheque EXCEPT:

a) it is signed by the drawer.

b) it is a conditional order in writing.
c) it is drawn on a banker.
d) it orders the banker to pay a certain sum of money or on demand.
(1 mark)

21. The law on cheques in'Malaysia is covered by the:

a) Contracts Act 1950

b) ChequesAct 1949
c) Banking Act 1949
d) Bills of Exchange Act 1949
(1 mark)

22. Which of the following is NOT a characteristic of a'sole proprietorship?

a) A business owned by a single person.

b) One person is involved in running the business.
c) No agreement is necessary to form it.
d) There is limited liability of the owner.
(1 mark)

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CONFIDENTIAL L\MJ U N 201 8/LAW1 66t251 t299t37 I

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE BUSINESS LAW

COURSE CODE LAW166/25',,12991379
EXAMINATION JUNE 2018
TIME 3 HOURS

INSTRUCW
1. This question paper consists of two (2) parts: PART A (25 Questions)
PART B (7 Questions)

2. Answer ALL questions from PART A and any three (3) questions from PART B.

i) Answer PART A in the Objective Answer Sheet and attach it to the Answer Booklet.
ii) Answer PART B 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

5. Answer ALL questions in English.

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

This examination paper consists of g printed pages
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 LWJU N 201 8/LAW1 6612s1 1299137 I
CONFIDENTIAL

1. What is an invitation to treat?

It is an act of willingness to accept an

offer
a)
b) ltisapreliminarycommunicationbetweenpartiesatthestageofnegotiation
It is an intimation to do. or to abstain from something
to treai someone in a contract
c)
d) iii; ; agieement"i*ifii"g""ss (1 mark)

for RM180,000' Monica wrote a letter

cecilia offered to sell her house to Monica
2.
stating that she t" nuY it tor nrrtilZs,ooo' wrtat is the legal position in
*rfpr"ir;;
this case?

a) There is a valid contract as there is an

acceptance
rnr rnter offer
is only a counter
b) There i= no ,"Ii"""tirtt as Monica's letter
There is a cross offer manner
"i
d) The acceptrnl" *"i not made in the usualway and reasonable (1 mark)

the
of the offer and it is not accepted within
3. where the time is fixed for acceptance
fixed time, the effect will be that "'
of the fixed time
a) the offer automatically lapses on the expiry
to- any contract in the future
b) the offeree fo."l'fri. iigftt t9- become " iatty
permission of the court
;i ine otter rrp""t u't onl-ly with the
di the offer may be ratified (1 mark)

of the following agreement is certain?

4. A contract that is uncertain is void. which

a)MoiagreestoselleitherherRorinebrandhandbagorSentinibrandhandbagto
Coifor RM1000
RM500 or RM600'
b) trrtimi otfers to seff her ring to Surifor
tor RM500 per month for as long as he
c) Mr Tai or"r= toini tri" [ou.. to cr,oo
likes
d) chrn offers to sell his Honda City to Seng for RM50,000' (1 mark)

is an
party to another with the intention to deceive
5. False representation given by o1e
eiientiai element to prove that there exist "'
a) undue influence
bi misrePresentation
c) mistake
d) fraud (1 mark)

CONFIDENTIAL
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CONFIDENTIAL L\MJ U N 20 { 8/LAW1 6 6 1251 t 299 137 I

6. Frustration of contract refers to a situation where

a) the parties are frustrated by the contract

b) the parties suffered losses from the contract
c) the parties are unable to perform the contract
d) the parties are disappointed with the contract
(1 mark)

7 . An order by the court to stop a person from committing a specific act is called ... ... .

a) an injunction
b) specific performance
c) payment of quantum meruit
d) rescission of contract
(1 mark)

8. An agency can be formed by the following methods EXCEPT

a) by the doctrine of estoppel

b) by ratification of the principal
c) by emergency circumstances
d) by sharing mutual proflts in business
. (1 mark)

9. A appoints B as his agent to sell his condominium for not less than RM120,000. B
has acted in accordance with this express authority. ldentify the type of authority of
the agent in this situation.

a) Ostensibleauthority
b) Actualauthority
c) lmpressive authority
d) Selective authority
(1 mark)

10. Where a person acts for another person but does not disclose to the person he is
contracting with, the identity or the existence of the person he is acting for, he is said
to be acting for

a) an unidentified principal
b) a secret principal
c) a principal having legal immunity
d) an undisclosed principal
(1 mark)

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CONFIDENTIAL LWJUN 201 8/LAWI 66t251 t299t37 I

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11. Which of the following is NOT a duty owed by an agent to his principal?

a) To delegate his authority without the principal's approval as long as the work is
done
b) To maintain separate accounts between his personal expenses and the money
he received on behalf of the principal
c) To obtain the best possible deal in favour of the principal
d) To communicate with the principal during an emergency
(1 mark)

12. An agency may be terminated by ......

i) the conduct of a third party

ii) the conduct of the parties themselves
iiD the custom or usage oftrade
iv) when the principal is declared bankrupt or to be of unsound mind

a) iand ii
b) iiand iii
c) iiand iv
d) iiiand iv
(1 mark)

13. Which of the following is categorised as 'goods' under the Sale of Goods Act 1957?

a) A house
b) Five pieces of US 1 dollar note
c) A coconut tree
d) Two bottles of mineralwater
(1 mark)

14. is the rule that requires buyers to exercise reasonable care when
they purchased goods.

a) Bona Fide
b) Delegatus Non Potest Delegare
c) Nemo Dat Quad Non Habet
d) Caveat Emptor
(1 mark)

15. Which of the following is NOT an exception to the Nemo Dat Quad Non Habet rule?
:,

a) Sale by estoppel'
b) Sale by one of joint-owners
c) Sale by a creditor
d) Sale by a mercantile agent
(1 mark)

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f CONFIDENTIAL

16.
LWJU N 20{ 8/LAW{ 66t251 t299t37 9

Which of the following rights are available to an unpaid seller against the buyer?

a) Right of stoppage on the goods in transit

b) Right to accept the goods
c) Right to receive the goods
d) Right to apply for specific performance
(1 mark)

17. Who are the parties to a hire purchase agreement?

i. Owner
ii. Hirer
iii. Agent
iv. Dealer
a) i, iii, and iv
b) i and ii
c) iiand iii
d) i and iii
(1 mark)

18. Which of these statements is NOT TRUE regarding a hirer's right to early completion
under a hire purchase agreement?

a) The hirer has a right to early completion by service of written notice to the
owner
b) The right to early completion can be exercised at any time during the
continuance of the hire-purchase agreement
c) The hirer can exercise the right to early completion after the owner has
repossessed the goods
d) . The hirer may apply to the High Court if the owner refused to give consent for
earlycompletion
(1 mark)

19. Under section 16(1) of the Hire Purchase Act 1967, the owner may repossess goods

a) after the service of the Second Schedule Notice

b) after the services of the Third Schedule Notice
c) after the service of the Fourth Schedule Notice
d) after the service of the Fifth Schedule Notice
(1 mark)

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CONFIDENTIAL LWDEC 201 8/LAW{ 6 6t251 I 299t37 I

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE BUSINESS LAW

COURSE CODE LAW{66/25112991379
EXAMINATION DECEMBER 20{8
TIME 3 HOURS

INSTRUCTIONS TO CAN DIDATES

1. This question paper consists of two (2) parts: PART A (25 Questions)
PART B (7 Questions)

2. Answer ALL questions from PART A and any three (3) questions from PART B.

i) Answer PART A in the Objective Answer Sheet and attach it to the Answer Booklet.
ii) Answer PART B 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

5. Answer ALL questions in English.

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

This examination paper consisfs of 9 printed pages

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CONFIDENTIAL 2 LWDEG 2018/LAW166125112991379
\

PART A

1. A set of Pearl White antique dining table from Australia is put on auction by a
licensed auctioneer. The reserved price has been fixed at RM2000. Under the law of
contract, the auctioneer is making

a) an offer
b) an acceptance
c) an invitation to treat
d) communication of information
(1 mark)

2. Which of the following is NOT fifUf about intention to create legal relation?

a) There is no definition of intention under the Contracts Act 1950

b) ln the case of Balfour V Balfour [1919] 2 KB 571, there was no valid intention
to create a contract
c) ln Menit V Menit [1970] EWCA Civ 6, it was held by the court that there was
an intention to create legal relation.
d) ln social and domestiC agreement, there is a strong presumption that the
parties intend to create legally binding coniract.
(1 mark)

3. By virtue of section 10 of the Contracts Act 1950, a minor has no legal capacity to
enter into a contract EXCEPT for

i) contract for insurance

ii) contract for beneficial or apprenticeship
iiD contract for necessaries
iv) contract for luxurious goods

a) ionly
b) iiand iii
c) i, ii and iii
d) Allof the above
(1 mark)

4. Ah Meng who was drunk, got into a taxi and asked the driver to take him to his
house. This contract is because Ah Meng was of unsound mind.

a) valid
b) void
c) voidable -
d) vague
(1 mark)

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CONFIDENTIAL LWDEC 201 8/LAW1 661251 1299 137 9

5. ln order to succeed in an action for undue influence, a plaintiff must show that

D the defendant was in a dominant position

ii) the plaintiff was unable to exercise his own free will
iiD the plaintiff was a minor
iv) the value of consideration was unreasonably low

a) i, ii and iii
b) i, ii and iv
c) ii, iiiand iv
d) All of the above
(1 mark)

6. "The parties have mutually agreed not to perform the contract". ThiS describes a
discharge of contract by

a) performance
b) agreement
c) frustration
d) breach
(1 mark)

7. The following are the purposes of remedies EXCEPT

a) to prevent fraud
b) to punish the defendant for not performing the contract
c) to protect the rights and interests of an innocent party
d) to compensate the plaintiff for any losses suffered by him due to the
defendant's breach
(1 mark)

8. What are the conditions for a valid ratification under the law of agency?

i) The principal must ratify the whole act or contract

ii) The ratification must be made within a reasonable time
iiD The principal need not exist at the time the contract is made
iv) The act or contract must be unauthorized

a) iand ii
b) iiand iv
c) iand iv
d) i, ii and iv
(1 mark)

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CONFIDENTIAL
4 LWTDEC 2018/LAW{66t2511299t379

9. Anagent,sdutytoactingoodfaithandavoidconflictofinterestmeansthat
with his principal
a) an agent can become pag to.a contract time
b) an agent ."; ;;iil oenarf of two principals at the same
ot the contract to the principal
c) an agent *rriiir.rtre Ji materiaitacti him into his own
d) an agent i""p all monies and proflts received by
account "rn
(1 mark)

10. Aprincipalisallowedtonotpayanagent'scommissionwhenitisdiscoveredthat

a) the agent is acting for the principal.

rti the aqent is taking secret commlsston
;i in" ir,ito party hai revoked the contract
;i in" tniro barty is in breach of contract (1 mark)

act of the parties in the following circumstances

11. An agency may be terminated by the
EXCEPT bY
the agent
a) the insanity oJ either,the-principal or
bi the renunciation bY the agent
by the principal
c) ttre revocation of the agent's authority
d) t" *ri,iJ'"g'""*"nt6tt'" principal and the agent (1 mark)

goods' 'property in goods' refers to

12. Under a contract for the sale of

a) Possession ofgoods
bi ownershiP of goods
c) sale of goods
d) transfer of goods (1 mark)

noodle'
from warung 2000' After eating the fried
13. Naqib bought a plate of fried noodle
irrir *rti
breach of the implied term of
he was y.,orpitiilJioi tooo poi=Jn:'n+

a) the goods must correspond with the description

b) the goods must correspond with the sample
;i the loods must be free from encumbrances
;i ilre go;i must be of merchantable quatity (1 mark)

dat quod non habetis

14. The meaning of the legal maxim nemo

a) the buYer must accePt the goods

b) let the buYer beware
price
c) tne ser[i'muitsell goods at a reasonable
what he has
d) no o#
""n
giu" Ultter title
'
than
(1 mark)

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 CONFIDENTIAL LWDEC 201 SILAW{ 6 6t251 t299137 I
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15. When a buyer has examined goods under a contract for the sale of goods, he is not
allowed to return the goods if

a) the defect is apparent

b) the defect is not apparent
c) the seller had concealed the defect
d) the seller had made a misrepresentation
(1 mark)

16. Allthe following are goods according to the Hire Purchase Act 1967 EXCEPT

a) a computer
b) furniture
c) a helicopter
d) a camera
(1 mark)

17. A hire purchase agreement is defined in section 2(1) of the Hire Purchase Act 1967
to include

a) the letting of goods with an option to purchase and an agreement for the
purchase of goods by instalments
b) an agreement made by the owner to several hirers for a fixed period
c) the letting of goods with no option to purchase but can be renewed
d) an agreement according to the rules and conditions prescribed by the owner
(1 mark)

18. ln the event the hirer is deceased, when can the owner commence action to
repossess the goods?

a) After two default

b) After three default
c) After four default
d) After five default
(1 mark)

19. Which of the following are the rights given to the hirer after repossession of goods?

i) The hirer may refuse to settle the default payment

ii) The hirer can regain possession of the goods after remedying the default
iii) The hirer may request the owner to sell the goods to a person introduced by
the hirer for cash at a price of not less than the estimated value of the goods

a) i and ii
b) iiand iii
c) i and iii
d) i, ii and iii
(1 mark)

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