(8US107/8US2107 Lego Aspects of Business 2013-14 Ist Term LINGNAN UNIVERSITY DEPARTMENT OF ACCOUNTANCY BACHELOR OF BUSINESS ADMINISTRATION (HONOURS) FIRST TERM EXAMINATION, 2013-14 107/ BUS2107 EGAL ASPECTS OF BUS! TIME ALLOWED: 2 HOURS INSTRUCTIONS: 1 This paper is divided into two sections: Section A~ ALL questions are compulsory and MUST be attempted (40 marks) Section B - THREE Questions ONLY be attempted (60 marks) This paper carries 100 marks. Marks allocated to parts of questions are indicated in brackets. You are reminded of the necessity for clear and orderly presentation in your answer. Start each answer on a separate page. No dictionary is allowed.(8US107/8US2107 Lego Aspects of Business 2013-14 st Term Section A - ALL questions are compulsory and MUST be attempted (40 marks] QUESTION NO.1 (@) Danny has lost his pet dog and has advertised in a local newspaper as follows: “LOST: pet dog, white hair mini poodle, 1 year old, photo attached, $3,000 reward for safe return. Money deposited with solicitor as evidence of intention for award payment”. Adams read the advertisement and decided to search for the dog. After 1 week of searching, he found it and decided to bring the poodle dog to Danny. Unknown to Adams, Danny put a second advertisement in the same newspaper the day before, cancelling the reward. In relation to contract law, advise Adams whether he has any legal rights to claim the $3,000 reward from Danny. (15 marks) (b) Adams wants to know more about Hong Kong legal system and some principles of contract law. He asked you to explain the following: @) What is “postal rule” and under what circumstances will this rule not apply? (10 marks) (ii) The doctrine of judicial precedent (9 marks) (ii) The legal aid scheme in Hong Kong and its eligibility criteria, (6 marks) Section B - THREE Questions ONLY be attempts QUESTION NO. 2 (2) Inrelation to the law of contract, use examples to explain the following: (i) Injunction (ii) Specific performance (10 marks) (b) Yesterday Candy took her white night dress to SuperClean Laundry Ltd (a new laundry shop just opened last week) for dry-cleaning. She was given a receipt after payment of the dry clean fee of HK$80. On the back of the receipt there was a clause: ‘SuperClean Laundry Ltd is not responsible for any loss of or damage to customers’ clothes given to us for dry-cleaning, caused by whatever reasons including the negligence of our staf”. Today Candy went to pick up her night dress from SuperClean Laundry and she noted some black marks on her night dress when it was returned to her. Advise Candy on her legal rights in relation to contract law. (10 marks).US107/BUS2107 Leg Aspects of Business 2013-14 Ist Term QUESTION NO. 3 (@) With reference to cases decided by the courts, explain the three types of misrepresentation under the law of contract. (10 marks) (b) Linda operates a mini-band room where she teaches guitar lesson every Sunday morning. Three sets of her guitars broke down and she contracted with Great Music Instruments Repair Ltd (Repair House) to repair them. Repair House took away three guitars for repair and the company agreed to return them within 2 days. Repair House delayed the repair and returned the guitars after 1 month. Without guitars, Linda had to cancel teaching the guitar classes for 1 month and lost the tuition fee from guitar teaching. Also, Linda failed to ean HKS$20,000 which would be her extra income from her previous agreement to rent her band room with three guitars to a famous band to record music, Linda wants to sue Repair House. Discuss her legal rights. (10 marks) QUESTION NO. (a) Explain how an agency relationship can be established by way of: @ necessity. ratification. (iii) estoppel. (10 marks) (b) Angel, Bobby and Candy formed a partnership business. Candy bought a piece of land and building and later sold them to the partnership without revealing that she is the owner of the land and building. Candy made a profit of HK$1 million on this transaction. Candy had been a lawyer in practice before she joined the partnership. Last week, Candy signed a document of the partnership without reading it. The document was in fact @ contract and related to the selling of some partnership machinery to another contracting party. By reason of a typing mistake, the selling price of the machinery was wrongly stated in the contract as $20,000 when the correct price should be $200,000, The partnership has suffered loss as a result, In relation to contract law, discuss Candy’s legal liabilities. (10 marks) QUESTION NO. 5 (@) In relation to the Sale of Goods Ordinance (SOGO), explain with decided cases the three statutory implied terms (ie. section 15, section 16(2) and section 16(3) of SOGO). (10 marks) (b) Sandra, an owner of a jewellery shop, sold a diamond necklace to Bonnie who paid the price by cheque, The cheque was dishonoured when Sandra presented it to the bank for payment on Monday. As Sandra did not have Bonnie’s contact, she reported the matter to the police immediately. On Wednesday, Bonnie sold the diamond necklace to Theresa for HK$80,000 and Bonnie disappeared afterwards. Discuss the legal rights of Sandra. (10 marks) ~The End of Exam Questions— 3