WEDNESDAY: 23 August 2023. Afternoon Paper. Time Allowed: 2 hours.

This paper is made up of fifty (50) Multiple Choice Questions. Answer ALL questions by indicating the letter (A, B, C or D) that represents the correct answer. Each question is allocated two (2) marks. Do NOT write anything on this paper.

1. Which among the following are the correct methods of alternative dispute resolution?

A. Legislation, negotiation and conciliation
B. Conciliation, negotiation, arbitration and mediation
C. Arbitration, legislation and mediation
D. Mediation, tribunal and legislation (2 marks)

2. Which among the following entails the correct set of advantages of negotiation as a way of dispute resolution?

A. It is quick, cheap and has privacy
B. Cheap process and not flexible
C. Might not come to a decision and it is a fast process
D. Has privacy and lacks certainty (2 marks)

3. Which of the following is a good defense available to a doctor in all claims of a civil nature if it is proved that the patient himself was negligent?

A. Corporate negligence
B. Contributory negligence
C. Co-operative negligence
D. Wrongful negligence (2 marks)

4. What does the term “private law” mean?

A. The body of laws that derive from the deciding of cases
B. The legal principle which states that a person has the right to privacy
C. The body of laws that seeks to regulate the relationship between individuals
D. The body of laws that seeks to regulate the relationship between the State and its citizens (2 marks)

5. Which of the following is NOT a negotiable instrument?

A. Bill of exchange and cheque
B. Promissory note and cheque
C. Promissory note and Bill of exchange
D. Postal Order and Currency note (2 marks)

6. Which of the following is the right action to take when a seller breaches a warranty?

A. Refuse to pay the price
B. Claim damages
C. Return the goods
D. Refuse to take delivery (2 marks)

7. Which of the following courts is the highest in the hierarchy of courts in your country?

A. Supreme Court
B. Senior Chief Magistrate Court
C. Court of Appeal
D. High Court (2 marks)

8. What does the phrase “Nemo dat qoud non habet” in sale of goods mean?

A. The seller can pass better title that he has
B. The seller may refuse to sell
C. The seller cannot pass title he does not have
D. The buyer may reject the goods (2 marks)

9. What is the name of the party who gets his life or property insured against a risk?

A. Insured
B. Insurer
C. Holder
D. Assurer (2 marks)

10. How many contracts are there in a contract of guarantee?

A. One contract
B. Two contracts
C. Three contracts
D. Four contracts (2 marks)

11. Which of the following document contain regulations for management of a company?

A. Prospectus
B. Memorandum of association
C. Debentures
D. Articles of association (2 marks)

12. A party who does not suffer any loss in case of breach of contract is entitled to which type of damages?

A. Nominal damages
B. Statutory damages
C. Exemplary damages
D. Liquidated damages (2 marks)

13. Which of the following intellectual property(IP) right is NOT correctly matched? Type of IP IP Rights

A. Inventions Patents
B. Proprietary information Copyright
C. Source identification/Brand names Trademarks
D. Aesthetics/Ornamental features Designs (2 marks)

14. Which of the following is NOT a general defense in tort?

A. Statutory authority
B. Mistake
C. Occupier liability
D. Volenti non fit injuria (2 marks)

15. Which of the following is NOT a requirement for one to dispose property?

A. Professional qualification
B. Sound mind
C. Above 18 years of age
D. Ownership of property (2 marks)

16. Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their official duties. What is the principle that public officers must uphold?

A. Ethics
B. Honesty
C. Transparency
D. Integrity (2 marks)

17. Agency may be terminated by operation of law through the following ways, EXCEPT_________.

A. Lapse of time
B. Mutual agreement
C. Death of the principal
D. Insanity (2 marks)

18. In a promissory note, which of the following is true about the amount of money payable?

A. It must be certain
B. It may be certain or uncertain
C. It is usually uncertain
D. It may be flexible (2 marks)

19. The ratio decidendi of a case refers to?

A. A statement said by the way
B. The reason for deciding a case
C. The principle whereby lower courts are bound by the decisions of higher courts
D. The process whereby a court avoids a binding precedent on the ground that the current case differs
materially from the precedent (2 marks)

20. Which of the following can freely transfer its shares?

A. Public company
B. Private company
C. Registered company
D. Government company (2 marks)

21. Which of the following is NOT a system of law?

A. Political law
B. Common law
C. Civil law
D. Sharia law (2 marks)

22. In a negligence claim, the plaintiff must prove one of the following:

A. Intent to harm
B. A breach of duty
C. Strict liability
D. No-fault liability (2 marks)

23. Which of the following is a remedy available in tort law?

A. Imprisonment
B. Monetary damages
C. Community service
D. Fines (2 marks)

24. What is the meaning of delegated legislation?

A. It is the transfer of law-making power from one branch of government to another
B. It is the transfer of law-making power from the judiciary to the legislature
C. It is the transfer of law-making power from the legislature to another person or body
D. It is the transfer of law-making power from the executive to the judiciary (2 marks)

25. Which of the following is NOT a duty of a seller under the Sale of Goods Act?

A. Duty to deliver the goods
B. Duty to pass a good title
C. Duty to put the goods into a deliverable state
D. Duty to pay instalments (2 marks)

26. Which of the following is NOT a function of administrative law?

A. Rulemaking
B. Adjudication
C. Enforcement
D. Legislative drafting (2 marks)

27. Which of the following statements about the incorporation process for an association in Kenya is true?

A. It can only be done at the county level
B. It must be approved by the courts
C. It involves filing of articles of association with the relevant government body
D. It does not require any documentation or registration (2 marks)

28. Which of the following determines the nationality of an incorporated association?

A. The nationality of its members
B. The country where it was incorporated
C. The country where it conducts most of its business
D. The citizenship of its directors (2 marks)

29. Which of the following is NOT an essential element of a valid contract?

A. Offer
B. Acceptance
C. Consideration
D. Negotiation (2 marks)

30. Under the Sale of Goods Act, when does the risk of loss pass from the seller to the buyer?

A. When the goods are delivered to the buyer
B. When the seller hands delivery of the goods to the buyer
C. When the buyer pays for the goods
D. When the goods are loaded onto the carrier’s truck (2 marks)

31. Which of the following is NOT a type of authority conferred upon an agent?

A. Actual Authority
B. Apparent Authority
C. Implied Authority
D. Constructive Authority (2 marks)

32. Which of the following partners is a type of partner who has no authority to bind the partnership of contracts or agreements?

A. Silent partner
B. Active partner
C. Limited partner
D. Secret partner (2 marks)

33. Which of the following is NOT a requirement for adverse possession?

A. The possession must be continuous for a certain period of time
B. The possession must be without the owner’s consent
C. The possessor must have an intention to possess the land as their own
D. The possessor must pay rent to the owner during the possession period (2 marks)

34. A company can be created in three ways. Which of the following is NOT a valid way of creating a company?

A. A company can be created by the Court
B. A company can be created by registration
C. A company can be created by an Act of Parliament
D. A company can be created by charter (2 marks)

35. Which of the following is NOT a source of law in Kenya?

A. Statutes
B. Case law
C. Administrative regulations
D. Circulars (2 marks)

36. What is the purpose of tort law?

A. Punishment of criminal behaviour
B. Enforcement of terms of contracts
C. Compensation and prevention of harm
D. Regulation of the economy (2 marks)

37. Which of the following statements is true regarding the ethical principles of confidentiality?

A. It can be breached when a client poses a danger to themselves or others
B. It is optional guideline for professionals
C. It only applies to clients who have agreed to pay for services and not probono clients
D. It can be breached when a client refuses to pay for services rendered (2 marks)

38. Which of the following refers to a person’s legal residence?

A. Nationality
B. Domicile
C. Citizenship
D. Immigration (2 marks)

39. Which of the following BEST describes a “hire purchase agreement”?

A. A contract where the buyer pays the full price of the goods at the time of purchase
B. A contract where the seller agrees to deliver the goods at a later date
C. A contract where the buyer pays for the goods in instalments and takes possession of the goods
D. A contract where a bank agrees to pay for the goods on behalf of the buyer and the buyer repays the bank in instalment (2 marks)

40. Which of the following types of contracts must be in writing to be enforceable?

A. Employment contracts
B. Service contracts
C. Contract for the sale of land
D. Oral contracts between friends (2 marks)

41. Which of the following is an example of an e-commerce transaction?

A. A customer buying shoes from a store
B. A business buying office supplies from an online supplier
C. A person booking a hotel room through a travel agency
D. A student purchasing textbooks from a bookshop (2 marks)

42. Which the following is NOT a right of the buyer?

A. He can sell the property later if he so wishes
B. When ownership passes to him, he can perform any lawful action to increase the value of the property
C. He can transfer the property back to the seller at a later date
D. After paying for the property, he can register the property in his name (2 marks)

43. A whistle blower is an employee who?
A. Exposes organisational wrongdoing.
B. Complains a lot to company management.
C. Engages in unethical behavior.
D. Refers disputes to other employees (2 marks)

44. Which of the following is NOT a characteristic of a partnership?

A. Mutual consent
B. Easy formation
C. Equal profits
D. Limited liability (2 marks)

45. Which of the following statements describes a “general partnership”?

A. A partnership was formed for a single transaction
B. Form of business partnership where there is no fixed term agreed for the duration of the partnership
C. Form of partnership under common law
D. Partnership in which some or all partners can exhibit elements of partnerships and corporations (2 marks)

46. Which of the following BEST defines the word “ethics”?

A. The act of deciding definitely and firmly
B. The practising of an activity
C. A set of moral principles
D. Protecting personal information (2 marks)

47. Which of the following statements is true in regards to codes of conduct and codes of ethics?

A. They become necessary only after a company has been in legal trouble
B. They are formal statements that describe what an organisation expects of its employees
C. They are designed for top executives and managers, not regular employees
D. They rarely become an effective component of the ethics and compliance program (2 marks)

48. Which of the following is NOT an objective of code of ethics?

A. To promote and maintain confidence in the integrity of the corporation
B. To harmonise the concepts of social responsibility, public accountability and profitability
C. To promote the development of undesirable practices
D. To lay down standards for personal and corporate behavior (2 marks)

49. Which of the following BEST defines a “limited liability”?

A. Limited liability refers to how much the directors have to contribute in the event of the company
becoming insolvent
B. Limited liability refers to the ability of a member to limit his liability
C. Limited liability refers to the directors’ ability to limit their liability for acts of negligence, fraud etc
D. Limited liability refers to the ability of a company to limit its liability (2 marks)

50. Which of the following statements is correct concerning the “reasonable person” standard in tort law?

A. A person with a physical disability must act as would a reasonable person with the same disability
B. The reasonable person standard varies from person to person
C. The reasonable person standard focuses on the defendant’s subjective mental state rather than on the
defendant’s behavior
D. A reasonable person standard is subjective (2 marks)

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