COMMERCIAL AND ADMINISTRATIVE LAW

This past paper applies to

DIPLOMA IN BUSINESS MANAGEMENT MODULE II
BUSINESS EDUCATION SINGLE AND GROUP CERTIFICATE EXAMINATION
STAGE III
July 2013

Answer any FIVE questions

1. (a) In relation to the partnership act ,explain five rights of a partner. (10 marks)

(b) Sam bought a radio from Kuya for ksh 6,000. After using it for four months, he discovered that
the radio belonged to obara. Obara intends to sue Kuya for the recovery of his radio .
(i) Explain the legal principles applicable in this case
(ii) Advise Sam and Obara (10 marks)
2. (a) in relation to the law of agency ,explain five legal requirements for a valid ratification .(10 marks)
(b)Mutuku employed Mwanzia as a petrol tanker driver while petrol was being off-loaded from the tanker , Mwanzia who was standing nearby lit a cigarette. Unfortunately, the petrol caught fire and burnt the whole station and injured several people. Haraka ,the proprietor of the petrol station ,seeks your legal advice . advise him .(10 marks)

3. (a) Under section 7 of hire purchase act, Cap 507 of the laws of Kenya , certain provisions are
deemed void if contained in hire purchase agreement . outline six such provisions. (12 marks )

(b) Kinyango, a small scale farmer agreed to take a television set and radio from Malipo Rahisi Ltd, a hire purchase firm last year. The hire purchase price for both items was 90,000. He paid a deposit of Ksh 30,000 and the balance was payable by monthly installments of ksh 5000. After paying installments for six months, he defaulted. Malipo Rahisi Ltd promptly repossessed the goods. Explain the legal position .(8 marks)

4. (a) Explain the rights that a guarantor has against the creditor. (10 marks)

(b) Mzee Tumbo promised his son Kazungu a bicycle if he passed his examinations. Kazungu worked very hard and he passed his examination with a high grades. His father declined to buy him the bicycle he had promised for the reason that he wanted to use that money to pay Kazungu`s college fee. Kazungu is aggrieved and intends to sue his father.

(i) Explain the legal principles applicable in this case .
(ii) Advise Kazungu (10 marks)
5. (a)Explain the five criticisms which have been leveled against delegated legislation. (10 marks)
(b) Outline five limitations of parliamentary questions as a means of control over administrative actions. (10 marks)
6. (a) Explain five circumstances under which the validity of bye-laws may be challenged in a court
of law. (10 marks)
(b) Mombao Local Authority”s bye- laws prohibited the selling of any food in its parks without
consent. Johnny has for the past one year been selling cakes and soft drinks at Starehe Park with consent of Mombao Local Authority.Last month, Mambao Local Authority passed a resolution and revoked all earlier consent stating that no permission would be granted in future for the sale of food stuffs. Johnny is aggrieved that his one year license has been revoked before the end of its term and seeks your legal advice.

(i) Explain the legal principles application applicable.
(ii) Advise Johnny on his legal rights. (10 marks)

7. (a) A record of proceedings of an inferior court may be presented to the High Court for
Purposes of obtaining a certiorari order. Explain five purposes for which a certiorari order may be used. (10 marks)
(b) The administrative tribunal have been established in Kenya in order to deal with
Specialized matters which may involved the rights of individuals.
(i) Outline two reason for the establishment of administrative tribunals. (4 marks)
(ii) Explain three disadvantages of the establishment of tribunals in Kenya. (6 marks)



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