SEMESTER FINAL EXAMINATION

DIPLOMA IN BUSINESS MANAGEMENT

MODULE : BUSINESS LAW

EXAM DATE : 30 / 11 / 2010

EXAM TIME : 8:30 – 11:30a.m.

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 Read the instructions carefully before answering any questions.

INSTRUCTIONS TO CANDIDATES

Answer any FIVE questions. ( Total 100 marks )

This paper consists of THREE printed pages only.

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Cheating is a serious offence. Any candidates found cheating will be given an

automatic “F” for all subjects enrolled for the semester.

Reg No. : ___________________________

Name: ________________________

(LHL/02/2010)
Answer any FIVE questions .

1. (a) Explain the meaning of binding precedent. (8 marks)

(b) Explain the advantages and disadvantages of binding precedent. (12 marks)

2. (a) Steven want to buy Paul’s old watch. Paul told Steven that he will only let his
has the watch provided Steven pays him RM10 and accepts this offer in writing
by register courier service to be received by the next day. Steven sent her
acceptance on the same day that the offer is made but the letter gets lost.

(i) Explain Postal rule. (9 marks)

(ii) Is there any valid acceptance ? ( 5 marks)

(b) The husband promised to pay RM100 per month as meal allowance to his ex
wife but he failed to do so. Can the wife sue the husband for the sum of
payment?
(6 marks)

3. (a) Offer can be terminated by revocation and rejection of the original offer.
Explain when an offer may be terminated by revocation. (5 marks)

(b) The consideration must be sufficient that it must be something the law
recognizes as consideration. Discuss (15 marks)

4. (a) Mary goes to Mega Hotel and book a room. She enters the hotel room and
without notice that there is an exclusion clause in the room stating that the hotel
will not held responsible for any lost of personal belongings. Mary lost her rings
and decided to sue the hotel but the hotel management refused to do so by using
exclusion clause where Mary should have noticed on it.
(i) What is an exclusion clause? (5 marks)
(ii) Is the exclusion clause effectively excluding the Mega Hotel from liability
for any resulting breach of the contract? (5 marks)

(b) State the rule in Hadley v Baxendale regarding damages. (10 marks)
5. (a) Under what situation silence can amount to misrepresentation ? (15 marks)

(b) Jim bought a motorcycle from John. John told him that the motorcycle is
running well and the engine was kept perfectly well. However before that, Jim
had heard from the Motor shop that the motorcycle was not really in good
condition and further investigation made discovered that the motorcycle had an
accident records. Can Jim sue John for fraudulent misrepresentation ? (5 marks)

6. (a) A contract is discharged by performance only when both parties have compiled
fully and exactly with the terms of the contract. What are the exceptions to the
general rule of discharging a contract by performance ? (15 marks)

(b) 1Malaysia Records engaged Mark to sing in Malaysia Day concerts, from 14th
of September to 16th of September, 2010. Mark was diagnosed with H1N1 and
was incapable of appearing in the series of concert. Will the contract be
discharged by frustration? (5 marks)

7. (a) The Sale of Goods Act 1979 implied terms into all contracts of sale of goods as
to protect the buyer. SGA implied terms as to sale by description. Explain the
implied terms as to sale by sample. (10 marks)

(b) What is sale by sample? What are the implied conditions as to sale by sample?
(10 marks)