CONFIDENTIAL LW/JUN 2012/LAW416 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE COURSE CODE EXAMINATION TIME BUSINESS LAW LAW416 JUNE 2012 3 HOURS INSTRUCTIONS TO CANDIDATES 1. This question paper consists of SEVEN (7) questions. 2. Answer any FOUR (4) of the questions in the Answer Booklet. Start each answer on a new page. 3. Do not bring any material into the examination room unless permission is given by the invigilator. 4. Please check to make sure that this examination pack consists of: i) the Question Paper ii) an Answer Booklet - provided by the Faculty DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 2 LW/JUN2012/LAW416 QUESTION 1 a) Parliament of Malaysia is vested with the powers to legislate law. Explain the procedure of the law making process before any law is passed by the Parliament. (20 marks) b) With regards to sources of the Malaysian Legal System, discuss the doctrine of judicial precedent. (5 marks) QUESTION 2 a) Explain the rules in Hyde v. Wrench (1840) 49 ER 132 under the law of contract. (10 marks) b) Ahmad proposed to sell his house to Badri for RM 100,000 on 1st August 2011.

It was agreed by both parties that acceptance of the proposal was to be completed on or before 25th August 2011. They also agreed to use the post as the mode of communication. Badri then sent a notice of acceptance to Ahmad through a registered post on 20th August 2011. However, the notice was only received by Ahmad on 27th August 2011. Ahmad then refused to sell the house to Badri. Badri intends to sue Ahmad for breach of contract. Advise Badri on the matter. (15 marks) QUESTION 3 With regards to the law of agency, discuss the following: a) Creation of agency by necessity. (15 marks) b) Termination of agency by operation of law 10 marks) © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 3 LW/JUN2012/LAW416 QUESTION 4 a) Irene went to Cantikmuka, a shop selling cosmetic products, to buy a set of blusher. The sales assistant, Janet recommended a particular type of blusher, said to be the best in the market and imported from France. Irene told Janet that she was suffering from dermatitis, a skin disease that made her skin very sensitive. Janet told Irene that the blusher was suitable for her and relying on Janet's expertise, Irene bought the blusher. Unfortunately, when Irene used it for the very first time, nasty rashes appeared on her face.

Irene now intends to sue Janet and Cantikmuka. Advise Irene on the matter. (15 marks) b) Explain the remedies of a buyer when there is a breach of contract under the Sale of Goods Act 1957. (10 marks) QUESTION 5 Fazril entered into a hire purchase agreement under the Hire-Purchase Act 1967 to purchase a Honda City. Bahrin, the dealer told Fazril that the car was in good condition. Fazril then purchased the car. With respect to the provisions of the Hire-Purchase Act 1967, advise Fazril on the following matters: a) Fazril wishes to let his younger sister, Fazreen, continue with the hire-purchase agreement. 9 marks) b) Fazril wishes to shorten the duration of the hire purchase agreement. (8 marks) c) Fazril wishes to know the current financial status of the hire purchase agreement from the owner. (8 marks) QUESTION 6 Discuss the definition and characteristics of a bill of exchange under the Bills of Exchange Act 1949. (25 marks) © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL 4 LW/JUN 2012/LAW416 QUESTION 7 By reference to section 16(5) of the Companies Act 1965, discuss the effects of incorporation. (25 marks) END OF QUESTION PAPER © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL