UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY BUSINESS AND FINANCE

JANUARY 2020 TRIMESTER

UBML1053 BUSINESS LAW

TUTORIAL QUESTIONS

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Tutorial 9: Law of Agency

1. Briefly list down the rights and duties of an agent to the principal and the duties owed
by the principal to his agent.

2. Azeem was instructed by his employer to carry a consignment of vegetables from

Georgetown to Port Klang. The lorry he was driving was badly damaged when it was
involved in a road accident near Kampar. Since it was late and the repairs were going
to a long time, Azeem sold all the vegetable to a nearby shop owner at half its price.
Advice Azeem on his legal position in this situation.

3. Chun Hao works as an agent in a direct selling company, Slimway Bhd. On 1st May
2017, Slimway Bhd launched a new product called Great-tummy. Great-tummy was
an excellent product in weight management.

However, on 1st August 2017, Slimway Bhd sent out an urgent notice to all its agents
to stop selling Great-tummy immediately due to the after effects of using Great-
tummy. Chun Hao knew about the announcement but he refused to adhere to it. In
fact, he continued selling 2,000 tubes of Great-tummy.

Recently, Chun Hao was slapped with a few legal suits due to the sale of Great-
tummy as a consequence of the harm and injury it caused to its users. He went into
hiding. Chun Hao has been pleading to Mr Terrence, the CEO of Slimway Bhd for
help.

Mr Terrence has decided to ratify the contract in order to uphold the reputation of
Slimway Bhd.

Advise Mr Terrence on the effect and the conditions of ratification in the area of the
law of agency.