THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN BUSINESS MANAGEMENT
DIPLOMA IN INVESTMENT MANAGEMENT
DIPLOMA IN SUPPLY CHAIN MANAGEMENT
MODULE I
BUSINESS LAW
1. (a) Explain six rules of interpretation of statutes adopted by the courts in Kenya. (12 marks)
(b) Outline four functions of the executive arm of the government. (8 marks)
2. (a) Distinguish between law and morality. * (10 marks)
(b) Linda who works as a cleaner in an office heard over the radio that the president was visiting their town. Based on this information, she entered into a contract with Wendan
Traders for supply of 50 crates of soda to sell during the visit. The president’s visit was factored as a term of contract. Subsequently, it was announced over the radio that the visit had been cancelled. Wendan Traders nevertheless, delivered the sodas to Linda but who declined to accept the delivery of the goods. Wendan Traders are aggrieved.
Explain the legal position. (10 marks)
3. (a) Explain five types of mistakes that may invalidate a contract. (10 marks)
(b) Linet made an offer to Kevote, an employee of Deka Limited, to sell a photocopying machine to the company. Kevote, without the authority of the company, accepted the offer on the same day it was made. He then briefed the management of the company about the contract which ratified the contract. Two days later, Linet sent a letter of revocation of the contract to the company and declined to deliver the photocopying machine. Deka limited is aggrieved Explain the legal position of this case.
(10 marks)
4. (a) Explain five defences available to a defendant in a suit of nuisance. (10 marks)
(b) Outline five functions of the rent tribunal. (10 marks)
5. (a) Explain five types of agents. (10 marks)
(b) Juma, a neighbour to Merida, noted a big fire in Merida’s house. He broke the main door in order to put off the fire. When he entered the house, he noted that the fire was coming from one of the bedrooms whose door was also locked. He then
broke the bedroom door and put off’the fire. Merida is aggrieved and intends to sue Juma for the damage of her doors. Explain the legal position of this case. (10 marks)
6. (a) In relation to the law of property, explain four ways in which co-ownership may be terminated. (8 marks)
(b) Highlight six responsibilities of an employer to the employee.
