LAW3201 (F) / Page 1 of 4

INTI INTERNATIONAL UNIVERSITY

BACHELOR OF ACCOUNTANCY (HONS) PROGRAMME

BACHELOR OF INTERNATIONAL BUSINESS (HONS) PROGRAMME
BACHELOR OF BUSINESS ADMINISTRATION (HONS) PROGRAMME
LAW3201: FOUNDATIONS OF BUSINESS LAW
FINAL EXAMINATION: JUNE 2015 SESSION

Instructions: This paper consists of SEVEN (7) questions. Answer only FOUR (4) questions
in the answer booklet provided. All questions carry equal marks.

Question 1

(a) Malaysia is a federation of thirteen states with a written constitution, the Federal
Constitution, which is the supreme law of the country. Discuss the other sources of
written law in Malaysia.
(15 marks)

(b) A subordinate court in Peninsular Malaysia is one of those courts established under
section 3(2) of the Subordinate Courts Act 1948. In respect of the above statement
describe the hierarchy and functions of the subordinate courts in Peninsular Malaysia.

(10 marks)

Question 2
a) In relation to law of agency, discuss the creation of agency by the followings:-

i) ratification
(9 marks)
ii) necessity
(6 marks)

b) Explain THREE (3) duties of agent toward principal. Support your answer with relevant
statutory provisions and decided cases (if any).
(10 marks)
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Question 3

a) In social, domestic and family agreements, the presumption is that the parties do not have
the intention to create legal relations. Discuss.

(10 marks)
b) The parties entering into a contract should also be competent to contract i.e they must have the
legal capacity to do so according to section 11 of the Contracts Act 1950. Discuss.

(15 marks)

Question 4

a) Identify and explain the conditions which are implied under the Sale of Goods Act
1957?

(20 marks)

b) ABC Glove manufacturing company wants to buy a machine from Superior Machinery
Sdn Bhd which can produce 5000 gloves a day. Superior Machinery delivered the
machine but specification was not fulfilled as the machine can only produce 3000 gloves
a day.

Advise ABC Glove manufacturing company.

(5 marks)
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Question 5

a) Sam places an advertisement in the local newspaper as follows:-

LOST – CAT
FIND AND RETURN MISSING CAT , JASMINE
Jasmine is a black , short haired cat with a white stomach
Andchin, four white feet and a black smudge under her chin. Last seen in the Emery Close/
Bridgewater road area.
Reward of RM100 to anyone who finds and returns Jasmine alive.
Contact Sam at 01454 – 324958

Thomas reads the above advertisement. Two months later, while cycling home from the
neighbourhood grocery, he finds the cat and returns the cat to Sam. Sam tells Thomas that he has
already bought a new cat. He refuses to pay Thomas the reward of RM100.

Advise Thomas whether he is entitled to the reward.

(15 marks)

b) Discuss when an acceptance can be effective without actual communication to the person
making the offer.
(10 marks)

Question 6

Henry stayed for a night in the Oriental Hotel. On signing the register, he was given a card on
which were printed opening times of the restaurants in the hotel and details of the laundry
services.
On the back of the card was printed a statement which read as follows;-

The management accepts no liability for loss, destruction or damage to individual items
belonging to guests and valued at RM50 or over unless deposited in the hotel safe.

Henry’s room was burgled and he lost his camera and his shoes, valued together at RM500.

Advise Henry.

Would your answer be different if the statement was in a form which Henry had signed?

(25 marks)
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Question 7

Ahmad bought a car under a hire purchase with XYZ Finance. He defaulted in his monthly
instalments for the last 2 months. Explain the procedure to be followed for repossession of
Ahmad’s car by WYZ Finance and advise him on his rights after the XYZ repossesses his car.
(25 marks)

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