DBIT502  BUSINESS LAW.

UNIVERSITY EXAMINATIONS: 2016/2017
EXAMINATION FOR THE DIPLOMA IN BUSINESS INFORMATION
TECHNOLOGY
DBIT502 BUSINESS LAW
DATE: DECEMBER, 2016 TIME: 1 ½ HOURS
INSTRUCTIONS: Answer any THREE questions.

QUESTION ONE
(a) Explain the contribution of the courts of law to justice and social order in a country in
light to Kenya’s vision 2030. (10 Marks)
(b) In relation to Negotiable Instruments, discuss the types of endorsement.
(10Marks)

(Total: 20 Marks)
QUESTION TWO
(a) Explain the meaning of the term “statute” and highlight the advantages of statute law.
(6 Marks)
(b) State six human rights that are guaranteed in the constitution of your country.
(6 Marks)
(c) Explain the establishment, composition and jurisdiction of the high court.
(8Marks)
(Total: 20 Marks)
QUESTION THREE
(a) Outline The Advantages of Arbitration. (8 Marks)
(b) In relation to Companies, discuss the Consequences of Incorporation. (8 Marks)
(c) Discuss the factors that might undermine the Rule of Law in a Country. (4 Marks)
(Total: 20 Marks)
QUESTION FOUR
(a) Anne Moha wishes to enter in to an employment contract with Habib bank limited as a
cashier. She has come to legal advice.
Explain to Anne Moha essential elements of a valid contract. (10 Marks)
(b) Explain ways in which a contract may be discharged. (10 Marks)
(Total: 20 Marks)
QUESTION FIVE
(a) State and briefly explain five defences available to a defendant in the law of torts
(10 Marks)
b) Kinyago, a small scale farmer agreed to take a television set and a radio from Malipo Rahisi
Ltd., a hire purchase firm last year.
The hire purchase price for both items was Sh.90,000. He paid a deposit of Sh.30 000 and
the balance was payable by monthly installments of Sh.5,000. After paying installments
for six months, he defaulted. Malipo Rahisi Ltd., promptly repossessed the goods.
Discuss the legal position, and advise the parties. (10 Marks)
(Total: 20 Marks)

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