CONFIDENTIAL GOREN UNIVERSITY MALAYSIA SEPTEMBER SEMESTER 2011 FINAL EXAMINATION COURSE : BUSINESS LAW CODE : BMLW5103 DATE : 15 DECEMBER 2011 DURATION : 3HOURS TIME : 9.00 AM — 12.00 NOON INSTRUCTIONS TO CANDIDATES 1. This question paper consists of TWO Parts - PART A and PART B. Read the instructions for each part carefully. 2. Write your answers in the Answer Booklet provided. This question paper consists of THREE PAGES of questions printed on both sides of the paper, excluding this page.BMLWS103/SEPT2011/F-AA PARTA INSTRUCTIONS: 1. THERE ARE TWO (2) QUESTIONS IN THIS PART. 2. ANSWER BOTH QUESTIONS. Question 4 Sam and Jim were partners in a firm, operating a car wash business. Sam took a loan amounting to RM6, 000 from Din as a capital for the firm's business. The loan was guaranteed by Tom. The firm failed to pay the loan and Tom had to pay instead. Tom took legal action against both, Sam and Jim to recover his money. However, Jim did not admit such liability and decided to retire from the partnership. After Jim withdrew from the partnership, Sam invited Ben as a new partner to replace Jim. Ben agreed to settle the firm’s debt to Tom. Ben applied for loan from a bank. In his negotiation with the bank, Ben brought along his brother, Don, a well- known politician and introduced his brother as one of the partners in the firm. Believing the representation made by Ben, the bank immediately agreed to approve the loan amounting to RM 30,000. However the firm failed to pay the loan. The bank took legal action against the partnership and Don's name was included as a partner. Discuss the liabilities of Ben, Jim and Don by referring to the Partnership Act 1961 and the relevant cases. [TOTAL: 20 MARKS] Question 2 a Discuss the difference between an invitation to treat and a proposal. Illustrate your answer with the relevant cases and sections/ provisions in the Contracts Act 1950. b. Doreen, a sixteen year old teenager, wants to know whether she can enter into any contract and advice her regarding to the types of contracts that she might contracting into legally.BMLW5103/SEPT2011/F-AA PART B INSTRUCTIONS: 1, THERE ARE FIVE (5) QUESTIONS IN THIS PART. 2. ANSWER THREE (3) QUESTIONS ONLY. Question 4 Sim was appointed by Hotel ABC as a purchasing executive / business executive, to act on the Hotel's behalf as to acquire fresh seafood from the suppliers around the country. However, Sim's purchasing authority was restricted not more than RM 8,000 worth of seafood supply per month. In July, Sim has purchased RM11, 000 worth of seafood to be supplied to the hotel. Eventually, Sim has failed to pay the suppliers the price of such purchase. Now, the suppliers claimed the payment from Hotel ABC. ‘Advice Hotel ABC regarding the conditions on which an agent's act may be ratified by the principal [TOTAL: 20 MARKS] Question 2 The nemo dat quod non habet principle states that “no one can give a better title than he has himself.” Briefly discuss this legal principle and its exceptions. Refer to the relevant laws and cases. Question 3 Abu, Ali and Din are partners of Indah Enterprise, a textile shop. The partnership was formed two (2) years ago on the basis of the friendship between the partners. The partners are not sure of their rights and duties due to the absence of a partnership agreement between them. Explain to the partners their rights and duties as partners in the absence of agreements as provided by the Partnership Act 1961 [TOTAL: 20 MARKS]BMLWS103/SEPT2011/F-AA Question 4 Ali bought electrical goods from Seng Electric through the hire-purchase method. Ali has defaulted in making payments for two consecutive months. Seng Electric wishes to repossess the electrical goods from Al Advice Seng Electric regarding the procedures provided by Hire Purchase Act 1967, that they must comply with before proceeding with the repossession. [TOTAL: 20 MARKS] Question § The general rule of consideration provides that an agreement without consideration is void. However, there are exceptions to this general rule. Discuss the exceptions to the general rule of consideration by referring to the relevant cases and provision under the Contracts Act 1950. [TOTAL: 20 MARKS] QUESTION PAPER ENDS HERE