HPS 2204: BUSINESS LAW I Past Paper

W1-2-60-1-6
JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
UNIVERSITY EXAMINATIONS 2012/2013
YEAR 2 SEMESTER 1 EXAMINATION FOR THE DEGREE OF BACHELOR OF PURCHASING AND SUPPLIES MANAGEMENT
HPS 2204: BUSINESS LAW I
DATE: AUGUST 2011 TIME: 2 HOURS

INSTRUCTIONS: ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS
It’s the year 2012, the year of our good Lord. The year has had its fair share of the good, the bad and the ugly. The constitution’s implementation is not being a walk in the park as many thought. Parliament is delaying in legislating bills especially one on leadership and integrity. They have thus decided to delegate some of the legislation roles to the respective parties and authorities. The civil society is up in arms against parliament delegating the role of legislation. The residents of Mikono village in Kola are however bothered less by these controversies. They are burying Kioko who died mysteriously in the hand of his uncle Muli, who is no a suspect. Kioko’s widow has since been concerned that she is going to be ‘inherited’ by the deceased brother Mang’eli who according to the Kamba customary law is supposed to now marry her. In the mean time the Mikono council of elders have made a decision that Muli be stoned to death for causing Kioko’s death. Wonders will never cease. Would they?
a. Your friend Esther has asked you to tell her five (5) reasons why civil societies are opposing parliament from delegating their role of making legislation. [10 marks]
b. i. Kioko’s widow is concerned for she is not willing to be remarried to Mang’eli. Advise her on the applicability of that custom. [5 marks]
ii. Advise the council of elders on the applicability of the custom of stoning Muli to death for killing Kioko. [5 marks]
c. Outline five (5) reasons that may be the cause of parliament delegating their role of decision-making. [10 marks]

QUESTION TWO
a. Negligence is one of the most important torts in law. It consists of three elements that must be establishing before the defendant can be held liable. Define the tort of negligence and subsequently discuss the three elements. [10 marks]
b. In order to become a contract, an agreement must possess certain elements otherwise known as “essential elements of a valid contract”. Discuss five (5) of them. [10 marks]
QUESTION THREE
a. The phrase ‘sources of law’ can mean the materials from where we get laws or it may mean the origin of law. Discuss six (6) of law in Kenya. [12 marks]
b. Negotiable instrument posses legal characteristics which distinguish them from other document used in commercial transactions. Define the term ‘negotiable instrument’ and outline six (6) of the said characteristics. [8marks]
QUESTION FOUR
a. An agency relationships may be created in several ways. Discuss four (4) of these ways.
[8 marks]
b. Upon breach of contract by the defendant, the plaintiff is entitled to remedies. Discuss six (6) of these remedies. [12 marks]
QUESTION FIVE
Discuss the significance of the following words/phrases/cases as understood in Business Law;
a. Rylands Vs Fletcher
b. Domicile, Nationality and Residence
c. Law and Morality
d. Agent

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