FINAL ASSESSMENT

SEMESTER 2, 2019/2020 SESSION

KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES

Programme : BBA Level of Study : 1 - 4

Course Code : LAW 3112 Section(s) : 1-2

Course Title : Malaysian Business Law

Date and Time: 10 August 2020 ( 9 am) Platform: Telegram/Email

Submission Date and Time: 11 August 2020 (9 am)

Submission Platforms: Email

(This Paper Consists of 4 Printed Pages)

INSTRUCTION (S) TO CANDIDATES

Part A : Answer ALL Questions. This part is compulsory.

Part B : Answer THREE (3) questions only.

ANY FORM OF CHEATING OR ATTEMPT TO CHEAT IS A SERIOUS

OFFENCE WHICH MAY LEAD TO DISMISSAL

APPROVED BY:

Prof. Dr. Noor Hazilah Abd Manaf

Head
Department of Business Administration
PART A (TOTAL: 40 MARKS)

Instruction: Answer ALL questions. This Part is COMPULSORY

QUESTION 1

Bibah and Esah are cousins. Esah has a beauty salon under the name of D’Es Beauty whilst
Bibah has a boutique under the name of Best Bib Boutique. In January 2020, Esah was
awarded a contract by Fabulous Entertainment to provide make-up services and costume for
all the actors in one of their productions. Bibah agreed with Esah that Best Bib Boutique shall
supply all the costume for the contract on the ground that Esah will share 50% of the profits
with Bibah. Esah agreed to the proposal. Upon completion of the project, Esah did not pay
Bibah’s portion of profits. When Bibah claimed for her share, Esah claimed that the
agreement between them was merely between family members and therefore there was no
valid contract between them.

By virtue of Contracts Act 1950 and decided case laws, discuss the position of the above
contract. State also the effect of the above contract from the Islamic Law of contract
perspectives.
(20 MARKS)

QUESTION 2

Karim saw an advertisement in the newspaper written “White Automatic MyVi Car for sale,
2010 model, RM20,000 (cash only). He called the number given and made an appointment
with the owner, Farid. Karim went to see the car and decided to buy it. Farid insisted that
payment must be made in cash. Since he was about to leave the country, he requested Karim
to arrange for the transfer of title to the car himself.

Karim paid the whole purchase price and took delivery of the car. He drove the car and
noticed that the signal light was not working. He stopped at the garage to have it fixed.
While Karim was waiting for the car to be repaired, a man, by the name of Ghani approached
him and claimed that the car belonged to him. According to Ghani, he had sold the car to
Farid but the payment had not been received. He showed Karim the document title of the car
under his name.

With reference to the Sale of Goods Act 1957 and relevant case law, advise both Karim and
Ghani on their rights to the car.

(20 MARKS)

2
PART B (TOTAL: 60 MARKS)

INSTRUCTION: ANSWER THREE (3) QUESTIONS ONLY

QUESTION 3

1. A made an agreement with B that A will supply intoxicating wine (alcoholic wine) as
B’s agent to a foreign Embassy once in every week. Discuss the validity of this contract
from shari’ah perspective based on Quranic verses and ahadith.
(10 marks)

2. Discuss the formation of online contract.

(10 marks)

(20 MARKS)

QUESTION 4

1. Farah bought a washing machine and a 40-inches LCD TV, both on hire-purchase
agreement from Seng Hong Electrical Shop in January 2020. However, she only signed
one hire-purchase agreement for both items which included different amount of
instalments for each item. On April 2020, she paid for the instalment of the washing
machine but defaulted in the payment of the LCD TV. Two weeks after that she got a
repossession notice from Seng Hong Shop to repossess both items from her.

Advise Farah as regards to her rights as a hirer in this case. Relate your answer to
relevant sections provided in the Hire Purchase Act 1967 and relevant case laws.
(10 Marks)

2. Discuss the differences between Al-Ijarah Thumma al-Bay’(AITAB) and Conventional

Hire-Purchase.
(10 marks)

(20 MARKS)

3
QUESTION 5

1. Gary and Wendy are partners of G &W Smartshop Sdn.Bhd. Gary has committed a crime
and was arrested by the police. Wendy was so worried that she would also be prosecuted
since she was Gary’s partner. Discuss whether Wendy shall be liable or not.
(5 Marks)

2. Amin, aged 17 was taken as a partner by Mr Ali and Mr Omar into their firm. Later, Mr
Omar had some misunderstanding towards Amin and claimed that Amin was not a
partner permitted by law. Discuss the position of Amin as partner.
(5 Marks)

3. Examine critically the differences between a sole proprietorship, a partnership and a

company.
(10 Marks)

(20 MARKS)

QUESTION 6

1. State the legal effect of each of the following made on a cheque;

a) A general crossing.
b) A special crossing.
c) The addition of the words ‘A/C payee only’ in the crossing.
d) A change made to the name of the payee without the drawer’s authority.
e) A cheque with a forged signature.
(10 marks)

2. The reciprocal rights and liabilities of principal and agent reflect commercial needs and
legal realities. In fact, there are certain business who may not survive without agency.

Discuss the concept of agency and its significant impact to the development of
commercial transaction in Malaysia.
(10 marks)

(20 MARKS)