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MULTITECH BUSINESS SCHOOL BUSINESS LAW-TEST INSTRUCTIONS 1. Time Allowed: 3 hours 2.

Attempt all questions in section A and B and any three questions from se ction C. 3. Section A consists of twenty compulsory questions each carrying 1 mark. 4. Section B has one compulsory question carrying 20 marks. 5. Section C has five questions and only three questions are to be attempte d. Each question carries 20 marks. SECTION A i) a) b) c) d) 2. a) b) 3. a) b) c) d) 4. a) b) c) d) 5. a) b) c) d) Which of the following is NOT a purpose of law? To regulate the conduct of persons To provide justice to members of society To enhance economic development To protect fundamental rights of individuals Which of the following branches of law fall under public law? Administrative law c) Law of contract Civil law d) Substantive law The doctrine of precedent means: That the cases must be decided inline with similar decided cases That judges must give reasons for the judgement they give That courts must dispose off cases without undue delay That justice delayed is justice denied One of the advantages of case law as a source of law is that: It is easy to understand It is certain It is easy to obtain It is less predictable Define a contract: An agreement An enforceable agreement A mutual agreement A written agreement

6. A relationship between people carrying on business in common with a view of making profit is called: a) A company b) Agency c) A partnership d) A club 7. a) b) What is issued capital? Nominal capital Authorised capital c) d) Allotted capital Research capital

8. How often does a company hold a statutory general meeting? a) Once a month c) Once a year b) Once in 15-18 months d) Once in a life time of a company

9. a) b) c) d) 10. a) b) c) d) 11. a) b) c) d) 12. a) b) c) d) 13. a) der b) 14. a) b) c) d)

Which Wages Wages Wages Wages

of the following is false? must be paid in cash only are paid in a currency which is legal tender may be paid in kind may be paid partly in cash and partly in kind

Which of the following statements is correct? Every partner is an agent of the firm Only active partners are agents of the firm Dormant partners are agents of the firm Every partner binds the firm in all his/her actions Vicarious liability will render an employer liable for torts which: Anyone commits in the course of his business His independent contractors commit in the course of his business He commits in the course of his business His employees commit in the course of his business A misrepresentation An untrue statement An untrue statement An untrue statement An untrue statement is: of opinion in a contract of fact in a contract of fact that induces a contract of opinion that induces a contract c) d) Court or

A partnership may not be dissolved by: Business losses Bankruptcy of a partner One of the following is not a duty of an agent The duty to make profit for the principal Duty to exercise due skill and diligence Duty of follow principal s directions The duty to account to the principal

Agreement

15. A unilateral a) Both parties b) Both parties rent matters c) One party is d) One part has 16. of a a) lation b) c) d) 17. a) b) c) d)

mistake occurs when: make a same mistake as regards one subject mis understand each other and make mistakes about diffe aware of the mistake, but the other is not the intention of defrauding the other

In the law of agency, one of the following is not true of the essentials valid rectification The agent must purport to act as agent for a principal who is in contemp There should be an act capable of rectification The principal must be competent to contract Part of the transaction can be ratified One of the following is not an element of valid contracts Legality of purpose Adequate consideration Consensus- ad- idem Capacity of parties

18. One of the following is not an implied condition in the contract of sa le of goods: a) Condition in a sale by sample

b) c) d) 19. es, a) b) c) d)

Caveat emptor Fitness or quality Sale by description This type of agent guarantees that the buyers pay for the goods purchas Estate agent A factor agent A deal credere A broker

agent

20. One of the following is not required before a company is given a certifi cate of incorporation: a) Articles and memorandum of association b) Particulars of first directors and secretaries c) Trading certificates d) Statutory declaration of compliance SECTION B QUESTION 2 Kato authorised Karim to go to Dubai and purchase salon cars and bring them to K ampala for sell at a profit . Karim purchases the salon cars and trucks. on ret urn, Karim asked his friend Kumar to sell some of the cars for him. In the proce ss, some of them were damaged and could not be readily sold. He also inflated th e selling price so that he could get some extra for himself. Unknown to Kato, Ka rim had purchased some cars on credit and the Dubai sellers are in Kampala to d emand their money which has remained un- paid for long. REQUIRED Discuss the legal issues involved. SECTION C QUESTION 3 Discuss the vitiating factors in the law of contract QUESTION 4 a) You have been asked to form a limited company, explain the procedures yo u would take to form one b) What are the legal consequences of incorporation QUESTION 5 a) b) Define agency and discuss the different kinds of agency What are implied conditions in the sale of goods contract?

QUESTION 6 a) b) Discuss the sources of law in Uganda. Compare and contrast common law and equity.

QUESTION 7 a) Explain the doctrine constructive notice and indoor management rule.

b)

What is a veil of incorporation and how is it lifted?

TEST EXAMINATION QUESTIONS Question 1. The doctrine of Caveal of sale of goods. Discuss! Emptor does not protect the buyer what soever in any contract

Question 2. A company is an artificial legal entity, separate, and distinct from the persons who are members of it. The members or its directors can not corporate veil is lifted. Discuss! Question 3. Discuss the rules of delivery and acceptance in a contract of sale of go ods. Question 4. Peter sold his car to John on 13th May, 2002, the car had no road licenc e and had serious electrical problems it was agreed that Peter would first fix t he Car and pay for its road licence before it could be collected. While in a Gar age on Bombo road, the Car was consumed in a fire that erupted from the mechanic s c igarette. John now demands for a refund of his money (price) Peter argues that t he property in the Car had passed and John should bear the risk. Peter has hired the most powerful lawyers in Town, Mr. Sebalu, Lule & Co. Advocates to defend h im in the event John tries to enforce the refund of his price through Court action . John is however cautious and wants to seek the Legal advise of closest friends first before he can proceed to instruct a Lawyer. You are Johns close friend an d he seeks your advice over his prospects in the recovery of his price. Required: Advise John of the Legal implications of the facts and his prospects in the case , lighting appropriate statutory provisions and case Law. Question 5. What are the Legal rights and remedies of a buyer in case of any breach of contr act of sale of goods by the seller? Question 6. Pre-incorporation contracts bind the persons who enter into it personally. The C ompany is exonerated from liability even when it ratifies the same. Discuss! COURSE WORK 1. b) 2. . b) 3. a) What are the kinds or classification of law? Explain the sources of law in Uganda. a) Define a contract and explain the essentials of a valid contract

What are the vitiating elements in the law of contract? What are the various ways of discharging a contract?