Faculty of Business, Economics & Accounting

Department of Business Studies

@ SUBANG 2
HELP Diploma in Business

INTERNAL SUBJECT DETAILS

Semester 1, 2019

Subject: D2LAW110
Business Law

Subject Lecturer/Tutor: Ms. Prem Kaur

Telephone: 03- 2716 2000
Fax: 03- 2093 5311
Email: vallesprem@hotmail.com

Consultation: Please call or email for appointment

PRE-REQUISITE(S)

DIP1SSK04 ELEMENTARY LAW

SYNOPSIS

This subject is designed to provide a sound knowledge of the core elements of Malaysian Business
law. The subject commences with a review of the important components of the Malaysian Legal
System in comparison with the Australian and English Legal System, the judicial process and the
means by which the disputes are resolved or litigated. While the subject concentrates on civil aspects
mainly commercial, contract and torts, other areas of importance are also dealt with.

OBJECTIVES

Upon completion of this subject, students should be able to:

 identify and explain the key features of the Malaysian Legal System and compare it with the
Australian and English Legal System, in particular, the main sources of law, the court system and
the administration of justice;

 demonstrate an understanding of the rules and presumptions used by the courts in

interpreting statutes; outline the process of litigation and describe alternate methods of resolving
disputes;

 demonstrate an in depth understanding of the principles of the Law of Contract, Law of Tort,
Business Entities, Intellectual Property and Consumer Laws;

 explain the main aspects of Hire Purchase, including formation of hire purchase agreements,
implied terms, misrepresentation, rights and liabilities of the hirer, procedures for repossession and
rights of the hirer if goods repossessed;

 explain the rules of Agency as they apply to sole traders, partnerships and companies;

 apply those laws to factual situations and coming to reasonable conclusions;

 discuss legal topics in a confident manner and possess good analytical skills.
TOPICS
Topic 1 Introduction to Law and the Malaysian Legal System

Topic 2 The Judicial System in Malaysia

Topic 3 A Comparative Study of the Malaysian, Australian and English Legal System

Topic 4 Law of Contract

Topic 5 Law of Tort

Topic 6 Sale of Goods

Topic 7 Law of Agency

Topic 8 Consumer Protection Act 1999

Topic 9 Business Organisation I – Starting and Financing a Business

Topic 10 Business Organisation II – Owning and Managing a Business and Experiencing Financial
Difficulty

Topic 11 Hire Purchase

Topic 12 Intellectual Property

PRESCRIBED TEXTBOOK
Lee Mei Pheng and Ivan Jeron. Detta (2018), Business Law, Oxford University Press, (3rd edition).

RECOMMENDED REFERENCES

Beatrix, V. & Wu, M.A., The Commercial Law of Malaysia, 2nd ed. Pearson Education, (2005);
Adnan Trakic, Nagiah Ramasamy, Cheah You Sum, Paul Linus Andrews, Sri Bala Murugan, P
Vijayganesh, and Kanchana Chandran, Law for Business, Sweet & Maxwell Asia (Thomson Reuters),
Malaysia, (2014); Nurdianawati, I.A., Siti Salwa Razali, Zuhairah, A.A.G., Malaysian Business Law,
Pearson, (2011).
Subject Outline/ Teaching Plan

Department : Business Studies Subject Code : D2LAW 110

Lecturer : Ms Prem Kaur Subject Title : Business Law

Week Topics References

1 Introduction to Law and the Malaysian Legal Chapter 1& 2 (LMP)

System
2 The Judicial System in Malaysia Chapter 3 (LMP)

3 A Comparative Study of the Mal, Australia and Chapter 3 (LMP)

English System
4 Law of Contract Chapter 4(LMP)
5 Law of Tort Chapter 5 (LMP)
6 Sale of Goods Act Chapter 9 (LMP)
7 Law of Agency Chapter 10 (LMP)
8 Mid Semester Test
9 Consumer Protection Act 1999 Chapter 11 (LMP)
10 Business Organisations Chapter 12 (LMP)
11 Hire Purchase Chapter 10 (LMP)
12 Intellectual Property Chapter 18 (LMP)
13&14 Revision
15& 16 Examination Week 20/4/2019 – 4/5/2019

Textbook:

Lee Mei Pheng and Ivan Jeron, Delta, (2018) Business Law, Oxford University Press,
(3rd edition)
ASSESSMENTS

There are 3 assessment items for this subject.

Assessment Items Value Due Date

1. Mid Term Test (Closed Book) 20% Week 8

2. Assignment 20% Week 12

3. Final Examination (Open Book) 60% Examination period: 20 April-

4 May 2019**

REQUIREMENTS

To gain a pass in this subject, students must:

 Achieve a passing grade in the final examination i.e. score a minimum of 30 marks out of 60
marks if there is an examination for this subject.

 Attempt ALL areas of assessment; and achieve a total result of 50% or better overall.

** - Please check on the notice board and My Acel for the actual date. HELP University reserves
the right to make any changes to the above where appropriate.
Assessment Details

Prepared by Prem Kaur

D2LAW 110
Business Law

Assignment
INSTRUCTIONS:

The following piece of work contributes to twenty (20) percent of the final marks for the subject of
Business Law. The answer for each question must be in no more than 12 pages and must be word
processed. All work must include footnotes (or endnotes) and a bibliography. Special attention is
drawn to the following:

1. All coursework must be submitted by the dates given in the course outline content.
2. Your answer must be based on Malaysia Law and/or English Common Law
3. Any coursework SUBMITTED AFTER THIS TIME WILL NOT BE
ACCEPTED FOR ASSESSMENT PURPOSES (see student handbook for
further details).
4. All answers must clearly state student’s name and student’s number.
5. ANY ATTEMPT TO PLAGIARISE WILL BE PENALISED. (Please read
student handbook for guidance).
Question 1
What are the basic elements of a valid contract? Discuss. [40 marks]

Question 2
Discuss the following situations:

2.1 David wants to give his land to his daughter, Alice, for her 21st birthday. As Alice will
not be paying any money to her father, her father is worried that since there is no
consideration for the transfer of his land to Alice, the transfer may be void by virtue of
Section 26 of the Contracts Act 1950. Advise David. [30 marks]

2.2 State three (3) exceptions to the general rule that contracts made by minors
(persons below the age of majority) are void. [30 marks]
 ALLOCATED
MARKS
ASSESSMENT CRITERIA RECEIVED
Introduction
Introduction & Outline of assignment 5
Ideas/Content
Assigned question(s) answered 10
Effective coverage of key legal concepts, relevant law and 10
cases
Demonstrated thorough understanding of core issue and able 15
to relate legal theory with case law
Examination of terms, ideas and case law provided 20
Conclusion/Recommendation
Sums up the main points & Draws relevant law and case law 10
Research and Referencing
References (other than prescribed text and course materials) 10
Appropriate use of prescribed referencing format (citation
and referencing)
Presentation/Style
Use of appropriate presentation skills 5
Use of academic English 5
Creativity in presentation 5
Logical, easy to understand structure 5
TOTAL 100
 Assignment No.: __

Assignment Cover Sheet

Student Information (For group assignment, please state names of
Grade/Marks
all members)

Name ID

Office
Module/Subject Information
Acknowledgement

Module/Subject Code

Module/Subject Name
Lecturer/Tutor/Facilitator

Due Date

Assignment Title/Topic

Intake (where applicable)

Word Count Date/Time
Declaration

. I/We have read and understood the Programme Handbook that explains on plagiarism, and I/we testify that, unless
otherwise acknowledged, the work submitted herein is entirely my/our own.

. I/We declare that no part of this assignment has been written for me/us by any other person(s) except where such
collaboration has been authorized by the lecturer concerned.

. I/We authorize the University to test any work submitted by me/us, using text comparison software, for instances of
plagiarism. I/We understand this will involve the University or its contractors copying my/our work and storing it on a
database to be used in future to test work submitted by others.

Note:1) The attachment of this statement on any electronically submitted assignments will be deemed to have the same
authority as a signed statement.

2) The Group Leader signs the declaration on behalf of all members.

Signature: Date:

mail:
 Feedback/Comments*

Main Strengths

Main Weaknesses

Suggestions for improvement

Student acknowledge feedback/comments

Grader’s signature Student’s signature:

Date: Date:
Note:

1)A soft and hard copy of the assignment shall be submitted.

2)The signed copy of the assignment cover sheet shall be retained by the marker.

3)If the Turnitin report is required, students have to submit it with the assignment. However, departments may allow students up to
THREE (3) working days after submission of the assignment to submit the Turnitin report. The assignment shall only be marked upon
the submission of the Turnitin report.

*Use additional sheets if required.

 Department of Business Studies

ACADEMIC INTEGRITY

Honesty and Responsibility

Academic integrity is an important tenet for HELP University. In pursuit of the highest standards of
academic integrity, the Department of Business Studies holds it students to the highest ethical standards
defined by the Rules and Regulations section of the Academic Handbook. All students at the
Department of Business Studies are subjected to and are bound by the Student Academic Misconduct
Rule to assure academic honesty. Students are required to sign a pledge on the assignment cover sheet
before submitting your assignments to the Department of Business Studies.

What is Plagiarism?
Plagiarism is academic dishonesty or academic theft, and it is a serious academic offence. Plagiarism
includes, but is not limited to, the followings:
1. quote, paraphrase or summarize someone else’s ideas, theories or data, in whole or in part,
without appropriate acknowledgement
2. borrow ideas, opinion or words, in whole or in part, from other sources without properly
crediting the author(s)
3. use any facts, statistics, diagrams or graphs, in whole or in part, without acknowledging the
source clearly
4. claim or imply original authorship of someone else’s ideas, theories or data, in whole or in part,
as your own
5. employ or allow someone to help to revise, amend or write your work and pass off as your own
original work
6. collaborate with or allow other students to copy your work
7. draw on sources more than what you have acknowledged by citations

While a student is not discouraged to discuss an assignment with his/her friends or classmates, the
work he/she submits must be done by the student alone. If a student shares his/her assignment with
other students and they plagiarize it, the student is as guilty as those students who plagiarized his/her
assignment. All parties to plagiarism are considered equally guilty. Under no circumstances should a
student be involved in collusion with other students unless he/she is permitted to work on an
assignment jointly by the lecturer/tutor. If a student is unsure what constitutes plagiarism, he/she is
obliged to consult the lecturer/tutor on the matter before submission of his/her assignment.
When and How to Reference?
Knowing when and how to cite is a student’s responsibility. If he/she is in doubt or need more help on
this matter, the student may consult the lecturer/tutor. The following list comprises some of the sources
a student will need to reference. The list is by no means exhaustive, but simply consists of the most
common sources used by students to complete their work.
1. Books
2. Chapters in books
3. Journal articles
4. Conference papers
5. Newspaper articles
6. Magazines
7. Websites
8. Study guide

Students are advised to cite in the following cases [1]:

1. When he/she quotes two or more words verbatim, or even one word if it is used in a way that
is unique to the source
2. When he/she introduce facts that he/she have found in a source
3. When he/she paraphrase or summarize ideas, interpretations, or conclusions that he/she find
in a source
4. When he/she introduce information that is not common knowledge or that may be considered
common knowledge in your field, but the reader may not know it
5. When he/she borrow the plan or structure of a larger section of a source’s argument (for
example, using a theory from a source and analyzing the same three case studies that the
source uses)
6. When he/she build on another’s method found either in a source or from collaborative work
in a lab
7. When he/she build on another’s program in writing computer code or on a not-commonly-
known algorithm
8. When he/she collaborate with others in producing knowledge

In general, a referencing system requires two parts:

1. In-text citations
This is information about a source within the text of an assignment.
2. List of references

1
http://www.yale.edu/bass/writing/sources/plagiarism/warning.html, accessed May 18, 2008.
 This is a list of all sources a student has used to research his/her assignment. It is alphabetically
arranged by author surname and appears immediately after the last page of an assignment.

Different faculties or departments may have different requirement on how referencing for an
assignment should be done. The various formats used for in-text citations and list of references are
available in the following websites:
1. Harvard System (http://www.adelaide.edu.au/library/guide/gen/harvard.html)
2. Chicago Style (http://www.chicagomanualofstyle.org/index.html)
3. American Psychological Association or APA Style (http://www.apastyle.org)
4. Modern Language Association of America or MLA Style (http://www.mla.org)

Once a student has selected a referencing style for his/her assignment, he/she must follow the same
style consistently throughout the assignment. We strongly suggest that the student consults the
lecturer/tutor about which method to use before submission of his/her assignment.

What are the Procedures and Penalties for Plagiarism?

When a lecturer/tutor encounters a possible case of plagiarism, the lecturer/tutor shall report the matter
to the Head of the Department, who then initiates an investigation on the matter. The following
procedures would be carried out:
1. The lecturer/tutor shall provide evidence that substantiates an academic offence has occurred.
The following documentations must be ready prior to reporting of alleged plagiarism:
a. Copy of the alleged plagiarized assignment
b. Copy of the source material (e.g. articles, websites, newspaper, etc.)
c. Report of plagiarism
d. Any other information that would support the claim of plagiarism
2. If the evidence warrants an accusation of academic offence, the Head of Department shall
establish a Board of Inquiry comprising 3 academic staff. The Department shall provide all
necessary documentations, including report on prior academic offences if applicable, to the
Board of Inquiry.
3. The Board of Inquiry shall put the matter to the student in writing and give him/her an
opportunity to respond to the accusation within 3 working days.
4. The student will be required to attend a meeting with the Board of Inquiry. After meeting the
student, the Board of Inquiry shall decide whether or not the alleged plagiarism has occurred.
The following documentations shall be submitted to the Head of Department at the end of the
meeting:
a. Findings of the investigation
b. Recommended action(s) to be taken or imposed
5. The Head of Department shall review the Board of Inquiry’s report with supporting evidence
and shall decide on an appropriate action(s) based on the recommendation of the Board of
Inquiry.
 6. The decision of the Head of Department shall be put in writing to the student. Copies of all
documentations will be retained in the Department.
7. If the student feels that he/she has been unfairly accused or treated, the student may appeal to
the Head of Department within 5 working days.
8. The Head of Department shall review the appeal and the final decision will be communicated
to the student in writing and a copy will be kept with the Department. Once a determination of
plagiarism and penalty has been made by the Head of Department, the investigative process
will be deemed to have ended and the student will not be allowed to appeal.

Possible penalties for plagiarism range from mark reduction for the assignment to expulsion from the
University. The student will not be allowed to make up the assignment. If plagiarism has been found
to have occurred, the Department will take action(s) as determined by the forms of plagiarism
implicated:
1. Complete plagiarism
Verbatim copying another person’s work without acknowledgement
1st offence : A grade of “F” in the subject and a warning letter will be issued
2nd offence : Expulsion from the University at the discretion of the Head of
Department
2. Substantial plagiarism
Near-verbatim copying another person’s work by simply altering the order of the sentences or
the format of presentation or by changing a few words or phrases without acknowledgement.
1st offence : Zero mark on the assignment and a warning letter will be issued
2nd offence : A grade of “F” in the subject and a warning letter will be issued
3rd offence : Expulsion from the University at the discretion of the Head of
Department
3. Minimal plagiarism
Acknowledgement is made but paraphrasing by changing and/or eliminating some words
1st offence : Deduction of 50% of available marks on the assignment and a
warning letter will be issued
2nd offence : A grade of “F” in the subject and a warning letter will be issued
3rd offence : Expulsion from the University at the discretion of the Head of
Department
4. Unintentional plagiarism
Insufficient acknowledgement by not applying citation or quotation marks correctly
1st offence : Deduction of up to 50% of available marks on the assignment and
a warning letter will be issued
2nd offence : A grade of “F” in the subject and a warning letter will be issued
3rd offence : Expulsion from the University at the discretion of the Head of
Department
Pleading ignorance or unintentional plagiarism does not constitute valid reasons for plagiarism and
will not avoid the penalties from being imposed. Excuses for acts of plagiarism such as the following,
but not limited to, will not be entertained:
1. I don’t have time to do the assignment
2. I have too many assignments due on the same day
3. I don’t know, I really didn’t do it
4. I am not aware
5. I don’t understand what plagiarism means
6. I have no intention to plagiarize
7. I forgot to cite the reference
8. I forgot to include the bibliography
9. My English is not good
10. My lecturer/tutor did not explain to me
11. In my country, it is alright to copy someone else’s work
12. My friend copied my assignment when I let him/her to look at my assignment
13. My friend copied my assignment when I allow him/her to use my laptop
14. I did my assignment in the computer lab, someone must have copied my work
15. I asked my friend to submit my assignment and he/she copied my work
16. I discussed my assignment with my friends, so our answers are the same/similar
17. Even though I do not have in-text citation but I have bibliography/reference list
Students should be reminded that it is their responsibilities to take due care throughout their written
work to effectively reference or cite when they use others’ ideas from any source.
 DIPLOMA IN BUSINESS LEVEL 2

SEMESTER X, 20XX

SAMPLE FINAL EXAMINATION

Subject Code : D2LAW110

Subject Name : BUSINESS LAW

This examination carries 60% of the total assessment for this subject.

Examiner(s) Moderator(s)

MR. ABC

Day :
Time :
Date :

Time allowed : Reading – 10 min

Writing – 3 HOURS

INSTRUCTION(S):

1. This examination consists of TWO (2) sections. Answer ALL questions in the answer book provided.
2. Writing on the examination answer book is NOT permitted during reading time.
3. This is an OPEN BOOK examination.
4. Students are NOT permitted to retain this examination paper.
5. Students MUST pass this examination in order to pass the subject.

(This question paper consists of 2 sections in XX printed pages, including cover page)
Answer ALL questions in all TWO (2) sections.

Section A (40 marks)

1. When considering the acceptance of an offer, which of the following best applies:

(A) The acceptance should be absolute and unqualified

(B) Silence amounts to acceptance
(C) There is no necessity to communicate acceptance to the offeror
(D) According to the postal rule of acceptance, acceptance takes place the moment the letter
is received by the offeror

2. Which of the following is true about past consideration in the law of contract in Malaysia?

(A) According to s26 (c) Contracts Act 1950, past consideration is recognised to be valid
consideration
(B) According to s26 (b) Contracts Act 1950, past consideration is recognised to be valid
consideration
(C) Past consideration is not recognised to be a valid consideration
(D) Past consideration is a performed, or executed, act in return for a promise

3. According to s26 Contracts Act 1950, an agreement made without consideration is void, unless: -

(A) It is in writing and registered

(B) It is a promise to compensate for something done
(C) It is a promise to pay a debt barred by limitation law
(D) All of the above

4. Which of the following is not an element of a valid contract?

(A) Invitation to treat

(B) Offer and acceptance
(C) Consideration
(D) Capacity
5. S14 Contracts Act 1950 states that there is no free consent in the following situation except:

(A) Coercion
(B) Immoral contracts
(C) Undue influence
(D) Misrepresentation

6. If there is coercion involved in the formation of a contract, which section states that the contract
is made voidable?

(A) S20 Contracts Act 1950

(B) S21 Contracts Act 1950
(C) S18 Contracts Act 1950
(D) S19 Contracts Act 1950
7. An agency is a relationship which carries

(A) Necessary duties

(B) Fiduciary duties
(C) Inalienable duties
(D) Multiple duties

8. Agency can be created in the following ways except:

(A) Observation
(B) Implied
(C) Express
(D) Estoppel

9. An agency is terminated under the following circumstances except

(A) Upon expiry of time fixed for the agency

(B) By revocation by the principal or agent
(C) By death of the principal
(D) By death of the third-party
10. An agent who is expressly appointed has

(A) Actual and implied authority

(B) Ostensible or apparent authority
(C) Absolute and total authority to do anything
(D) Only the necessary authority

11. Which of the following need not be proven in order to succeed in a claim in Negligence?

(A) Duty of care

(B) Breach of duty of care
(C) Remoteness of damages
(D) Third party’s obligation

12. When a partnership with a written agreement is dissolved, and there are surplus assets after
payment of all debts, the surplus is

(A) Divided amongst the partners in accordance with the terms of the partnership agreement
(B) Divided equally between the partners
(C) Returned to the partners in the same proportion on their capital contribution
(D) Returned to the partners in the same proportion as sharing of profits.

13. The rule in Hadley v. Baxendale is reflected in Section 74 of the Contracts Act 1950. This rule is:

(A) Damages must be liquidated

(B) The Plaintiff must mitigate his damages
(C) Damages must not be too remote
(D) Defendant is liable for all damages

14. Tesco’s leaflets which refer to ‘best offers’ during a sale are said to be making:

(A) An offer to its customers

(B) An invitation to treat to its customers
 (C) Its goods available for free sampling
(D) A contract.

15. A contract is made to construct a house for RM100,000 by 31 December. It also states that the
builder must pay RM500,000 if he does not complete the house on time. This term is
unenforceable because it is

(A) A penalty clause

(B) A compensation
(C) A liquidated damage clause
(D) A remoteness clause

16. A contract without consideration is:

(A) Voidable
(B) Void
(C) Valid
(D) Legal

17. A contract is voidable if made under the circumstance below:

(A) Rectification
(B) Undue influence
(C) Frustration
(D) Injunction

18. A contract can be discharged by way of:

(A) Silence
(B) Injunction
(C) Specific performance
(D) Agreement
19. Which of the following would be classified as a frustrating event?

(A) Refusal of performance

(B) Destruction of the subject matter
(C) Temporary illness of one of the parties
(D) The contract becomes less profitable.

20. Which of the following is not true about a limited company?

(A) The company will be liable for its own debts

(B) The company will be able to buy, hold and sell property
(C) The company’s liability is limited
(D) The company will have capacity to enter into contracts

21. Lifting of the veil of incorporation is allowed in the following situations:

(i) If a company contravenes S67(3) Companies Act 1965

(ii) An officer of a company knowingly contracts a debt with no reasonable or probable
ground of expectation of the company being able to pay the debt
(iii) Where the veil is merely a mask to defeat justice
(iv) In all situations when someone sues a limited company

(A) (i) and (ii)

(B) (ii) and (iii)
(C) (i), (ii) and (iii)
(D) All of the above

22. The liability of individual partners for the debts of the partnership is:

(A) Joint and several unlimited liability

(B) Each partner is only responsible for debts they have personally incurred whilst on
partnership business
(C) Limited to the amount of capital each partner has personally invested
 (D) Limited by guarantee

23. A contract may be void due to :

(A) A contracting party making a mistake as to its quality

(B) Both parties making a mutual mistake as to the existence of the subject matter of the
contract.
(C) Misrepresentation made by one of the contracting parties.
(D) A contracting party has discovered that he has not received a better price.

24. Which of the following is not true about a partnership?

(A) It must be a written contract

(B) It must be sharing of net profit
(C) The business must be carried on in common
(D) The business must be carried on with a view of profit

25. The following situations by themselves do not make a person a partner in the business: -

(i) Payment of a debt by installments out of profits

(ii) Remuneration to a servant or agent of the business
(iii) Payment of an annuity or a portion of the profits to a widow or child of a deceased
partner in the business
(iv) Payment of interest which varies with the profits on a loan advanced for use in the
business under a written contract

(A) (i) and (ii)

(B) (i) and (iii)
(C) (i), (ii) and (iii)
(D) All of the above

26. According to s7(a) Contracts Act 1950, acceptance must be:

(A) Absolute and unqualified

 (B) Communicated
(C) Expressly made
(D) Implied

27. Which of the following is true about past consideration in the law of contract in Malaysia?

(A) Past consideration is not recognised to be valid consideration

(B) Past consideration is recognised to be valid consideration
(C) Past consideration will render a contract void
(D) Past consideration is a performed, or executed, act in return for a promise

28. According to s26 (a) Contracts Act 1950, an agreement made without consideration is void, unless:
-

(A) It is in writing, registered (if necessary) and is for love and affection between two parties who
are of near relation
(B) It is a promise to compensate for something done
(C) It is a promise to pay a debt barred by limitation law
(D) All of the above

29. Which of the following is an element of a valid contract?

(A) Delegation
(B) Money
(C) Invitation to treat
(D) Capacity

30. According to s11 of the Contracts Act 1950, only the following are competent enough to enter
into a contract except:

(A) Age of majority

(B) Unsound mind
(C) Sound mind
(D) Not disqualified by law
31. Which section states that uncertain contracts are void?

(A) S27 Contracts Act 1950

(B) S28 Contracts Act 1950
(C) S29 Contracts Act 1950
(D) S30 Contracts Act 1950

32. The following needs to be proven in order to show that there was agency by necessity except:

(A) Unable to contact the principal

(B) Acted in good faith
(C) To prevent further losses to the principal
(D) Duty of care

33. Agency is governed by:

(A) Part X of Contracts Act 1950

(B) Part IX of Contracts Act 1950
(C) Part XI of Contracts Act 1950
(D) None of the above

34. A contract can be discharged in the following ways except:

(A) Frustration
(B) Performance
(C) By death of the offeror
(D) Breach

35. If agency is created by estoppels, the authority the agent has is called:

(A) Actual and implied authority

(B) Ostensible or apparent authority
(C) Absolute and total authority to do anything
 (D) Only the necessary authority

36. Which of the following is true about a limited company?

(A) The company will be liable for its own debts

(B) The company will be able to buy, hold and sell property
(C) The company will have capacity to enter into contracts
(D) All the above

37. Which of the section is not implied into a contract of Sale of Goods Act 1957:

(A) S13 Sale of Goods Act 1957

(B) S14 Sale of Goods Act 1957
(C) S15Sale of Goods Act 1957
(D) S16 Sale of Goods Act 1957

38. Which of the following does the Hire Purchase Act 1967 apply to?

(A) Cars bought cash

(B) Cars bought by installments
(C) Land
(D) House

39. Sale of Goods Act 1957 only applies to:

(A) When goods purchased fulfills s2 and s4(1) Sale of Goods Act 1957
(B) When goods purchased fulfills s2 and s3 Sale of Goods Act 1957
(C) When goods purchased fulfills s2 and s4(2) Sale of Goods Act 1957
(D) When goods purchased fulfills s2 and s4(3) Sale of Goods Act 1957
40. Sale of Goods Act 1957 does not apply to:

(A) Cars bought cash

(B) Pen
(C) Collector’s coins
(D) Land

Section B - Short Essay and Scenario-based Questions (Answer ALL questions: Total Marks:
60)

1) Jane told Frank to sell her painting for nothing less than RM10,000 but Frank ended up selling it
for RM8,000. Advise Jane. (15 marks)

2) Discuss the nature and scope of moral rights under the Copyright Act 1987.
(10 marks)

3) Identify and briefly explain the types of remedies which are available in Negligence.
(10 marks)

4) Sam took a five year loan from Manbank to purchase his car. The monthly instalment is RM500.
After he had promptly paid his instalments for the first two years, he defaulted two instalments
successively. He was issued with the Forth Schedule by Manbank. His car was subsequently
repossessed after 18 days of the issuance of this notice. Discuss whether the action taken by
Manbank is legal or not.
(25 marks)

**END OF EXAMINATION PAPER**

 FACULTY OF BUSINESS, ECONOMICS
AND ACCOUNTING
SEMESTER XXX

MID-SEMESTER TEST

Subject Code : D2LAW110

Subject Name : BUSINESS LAW

This examination carries 20% of the total assessment for this subject.

Examiner(s)

MS. SAYIDAH ASMA BT BASIR

Day :
Time :
Date :

Time allowed : 2 HOURS

INSTRUCTION(S):

6. This examination consists of THREE (3) sections. Section A – FIVE (5) multiple choice questions (MCQ),
Section B – FIVE (5) short questions and Section C – TWO (2) problem questions. Answer ALL
questions in the answer book provided.

7. Writing on the examination answer book is NOT permitted during reading time.

8. This is a CLOSED BOOK examination.

9. Students are NOT permitted to retain this examination paper.

(This question paper consists of 3 Sections in 3 printed pages, including cover page)
Section A: Multiple Choice Questions (MCQs) [25 marks]

Answer ALL questions. Each question carries five (5) marks only.

41. Below are the examples of private law EXCEPT

(E) Constitutional Law

(F) Family Law
(G) Law of Tort
(H) Law of Contract

42. Choose a CORRECT combination of written law in Malaysia.

(A) Federal Constitution and Act

(B) Enactment and Common Law
(C) Treaties and Ordinance
(D) Customary Law and Islamic Law

43. Choose a CORRECT statement about binding precedent.

(A) Magistrate Court is not bound by the decision of High Court

(B) Court of Appeal is bound by the decision of High Court
(C) Federal Court decision is bound on High Court
(D) Sessions Court decision is bound on Federal Court

44. Which of the following is a matter of State Legislative List?

(A) Citizenship
(B) Communication
(C) Islamic Law
(D) Finance
45. _____________________ is a law made by State Legislative Assembly except for
state of Sarawak.

(A) Act
(B) Enactment
(C) Ordinance
(D) Treaties

Section B: Short Questions [25 marks]

Answer ALL Questions.

1. Explain three (3) aspects of criminal law [6 marks]

2. Explain what stare decisis is and give one (1) example. [4 marks]

3. Explain what golden rule is and give one (1) case to support your answer. [5 marks]

4. Explain two (2) conditions for the application of English law in Malaysia. [4 marks]

5. Explain three (3) advantages of arbitration. [6 marks]

Section C: Problem Based Questions [50 marks]

Answer ALL questions.

Question 1

(a) Goku saw advertisement of new computer game collection with very low price. The
advertisement was made by ‘Gamers Sdn Bhd’. He makes a phone call to ask about the
price. The shop assistant replied that the promotion price is RM500 and that he must
make decision to buy it quickly as there are many people who wanted the item. Five days
later Goku call again to confirm that he agrees to buy. However, the shop assistant said
that they already sold to someone else. Advise Goku.

[20 marks]
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(b) Consider this situation. The shop assistant mention that the price is RM500. Goku
replied ‘I’m willing to buy if the price is RM400’. The shop assistant refused to sell at
that price. When Goku willing to pay it for RM500, they already sold it to someone else.
Whether there’s a contract between Gamers Sdn Bhd and Goku for this situation?

[10 marks]

Question 2

Kenny sold his apartment to Fook for the price of RM50,000 while the market value is
RM300,000. James who’s also interested to buy the apartment wants to set aside the
sale and purchase agreement. Whether the contract between Kenny and Fook is valid?

[20 marks]

*** END OF EXAMINATION PAPER ***

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