CONFIDENTIAL

FACULTY OF LAW

UNIVERSITI TEKNOLOGI MARA

FINAL ASSESSMENT

COURSE NAME : BUSINESS LAW

COURSE CODE : LAW166/251/299/379
ASSESSMENT : 5 – 12 JULY 2020
RELEASE DATE :

ASSESSMENT : 12 JULY 2020

LAST SUBMISSION
DATE

INSTRUCTIONS TO CANDIDATES

1. This final assessment paper consists of Part A: 20 questions

Part B: 3 questions

2. Answer ALL questions in Part A and ANY TWO questions in Part B

3. Each question in Part A carries 1 mark

4. Each question in Part B carries 20 marks

5. Answer ALL questions in English

6. Softcopy of answers must be submitted through email address which will be informed
later in your respective WhatsApp group.

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FACULTY OF LAW

FACULTY OF BUSINESS MANAGEMENT (TRANSPORTATION)

BA117

BUSINESS LAW (LAW299)

SEMESTER 4

TITTLE: FINAL ASSESSMENT

PREPARED BY:

NAME MATRIX NUMBER

NUR AIN DANISHAH BINTI MOHD 2018270722
RIDZUAN

J4BA1174D

PREPARED FOR: DR HARIATI MANSOR

SUBMISSION DATE: 12TH JULY 2020

Part A

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1. Which of the following is an invitation to treat?

A. A “Buy 2 Free 1” promotion in a clothing store

2. Arif who is 65 years old, promised to pay for his sister’s wedding at a hotel in Bali. He has
now changed his mind. Is Arif under any legal obligation to fulfil his promise to his sister?
C. No, there was no intention to create legal relations between the parties

3. When parties to an agreement use post for communication, the Postal Rule applies.
Under this rule,

C. An agreement is binding on the offeror when the offeree has posted the
acceptance

4. The case of Kepong Prospecting Ltd v A.E. Schmidt & Marjorie Schmidt [1968] 1 MLJ 170
laid down the principle that
C. A contract without consideration is voidable

5. Which of the following is NOT TRUE about legal capacity to contract?

D. A person who is an adult and is of sound mind can be disqualified from entering
into a contract

6. A minor may enter into a contract in certain situations. Which of the following are those
exceptions?
B. i, ii and iv

7. Kennedy sold his factory to Sufri for RM5 million. Kennedy stated that his factory could
produce 10,000 loafs of bread per day. Later Sufri discovered that the factory can only
produce 9,000 loafs of bread per day. What is the legal position of the contract between
Kennedy and Sufri?
D. The contract is voidable under misrepresentation

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8. Which of the following best describe a contract made under undue influence?

D. A terminally ill person sells his brand-new car to his nurse for RM5,000

9. Bella made a contract to sell her land to Ramona for RM160,000. After the contract was
concluded, they agreed to modify the price of the land and entered into a new
agreement for the sale of the land at the price of RM150,000. The first contract between
Bella and Ramona has been discharged by
C. Agreement

10. Anak Seni is a dance group that has contracted to perform at Adiwara Club for 3
months. They promised that they will not perform at other venues during that period, but
they broke the promise when they accepted an invitation to perform at Rafflesia Lounge
for 1 week. What is the best remedy for Adiwara Club?
D. i, ii, iii and iv

11. Sofi tells Lim that she is Ashraf’s agent and Ashraf does not deny this. In this situation, if
Lim makes a contract with Sofi, would Ashraf be liable to Lim under the law of agency?
B. Yes, because he has held out Sofi as his agent

12. Mastura works as a cook in Restoran Makan Sedap. Mastura frequently orders
vegetables and meat for the restaurant from Kedai Runcit Alang. Restoran Makan Sedap
has always paid for the goods delivered by Kedai Runcit Alang. This describes the creation
of agency by

D. Necessity

13. Siva has been appointed as an agent by Ah Chong. He has the authority to sell goods on
credit to third parties. He sold goods amounting to RM20,000 to Rahimi on credit without
making proper enquiries on Rahimi’s ability to pay. Unknown to Siva, Rahimi had been
declared bankrupt at the time he supplied the goods to Rahimi.

Which of his duties as an agent has Siva breached?

C. Duty to communicate with the principal

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14. Ronald instructed his agent Edward to purchase a second hand van for not less than
RM40,000. Edward made a contract to purchase Ah Chong’s van for RM32,000. Edward and
Ah Chong agreed to make the price of the van appear as RM40,000 in their agreement.
They then divided the additional RM8,000 equally between them. Ronald has found out
about the deal between Edward and Ah Chong. He wants to know what he can do about it.

i. Ronald may recover the additional money received by Edward

ii. Ronald may terminate the services of Edward

iii. Ronald may refuse to pay Edward’s remuneration

iv. Ronald may seize Edward’s property as compensation for his losses

A. i, ii and iii

15. Which of the following situations will result in an automatic termination of an agency?
B. Jason who is the principal of Darrell has been declared bankrupt

16. Which of the following statement is NOT TRUE about a hire purchase agreement?
A. A hirer does not obtain legal ownership of the goods until the final payment is
made.

17. Amara entered into a hire purchase agreement for a sewing machine, a vacuum cleaner,
and a rice cooker from Senang Finance. The monthly instalment for each item is RM100.
This month, Amara is only able to pay RM100 to Senang Finance and she wishes to pay for
the sewing machine.

Which of the following describes the legal position in Amara’s situation?

A. Amara has the right to choose which item she wishes to pay

18. Salman entered into a hire purchase agreement for a car with the following description
“Proton X70, automatic, white colour, leather seat cover”. When the car was delivered,
Salman found that the colour of the car was red and only the front seats had leather cover.

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What action may Salman take against the owner in this situation?
B. Salman may sue for damages

19. Which of the following are the rights given to a hirer after the repossession of goods by
the owner?

i. The hirer may refuse to settle the default payment

ii. The hirer may pay the amount in default together with the costs of repossession
iii. The hirer can regain possession of the goods after remedying the default
iv. The hirer may request the owner to sell the goods to a person introduced by the
hirer for cash at a price of not less than the estimated value of the goods

C. ii, iii and iv

20. Awang entered into a hire purchase agreement with Syarikat Senang Beli for a car. The
price of the car in the hire purchase agreement is RM88,674.00. Awang has failed to
pay the last two successive instalments. Syarikat Senang Beli wishes to repossess the
car. However, Awang has already paid more than RM70,000 to Syarikat Senang Beli.

Can Syarikat Senang Beli repossess the car?

B. Yes, because it is the right of an owner to repossess goods after a hirer has
defaulted in payment

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Part B

QUESTION 1

(a) Leslie went to Pick N Go Supermarket to buy some groceries. He saw a poster in the
supermarket that read “Buy 3 packs of Oceania tissue paper and get 1 pack free”.
Leslie took 4 packs of Oceania tissue paper and went to the payment counter. The
cashier informed him that the promotion had already ended and that he would have
to pay for all 4 packets of the Oceania tissue paper. Leslie then decided to not buy
the tissue papers, but the cashier insisted that he has to pay for all the 4 packs of the
Oceania tissue paper.

Advise Leslie. (12 marks)

Answer

The issue:
- Whether display goods on the shelves in the supermarket is an offer or invitation to
treat
- Whether there is a contract between Leslie and Pick N Go Supermarket and
whether the cashier has right to insist Leslie to pay

Display of goods is one of the element in invitation treat which mean inviting you to
make the proposal. Under S.2(a), proposal is made when one person signifies to another his
willingness to do or to abstain for doing anything, with a view to obtaining the assent of that
other to such act or abstinence. The display of goods in the supermarket is an invitation to
treat and it invites the customers to make an offer. The offer is made when the customer
presented the goods to cashier at the counter and when the customers presented the items
to the cashier there is no acceptance. The acceptance take place via conduct by the cashier
when he scan the price before scanning of price otherwise there is no acceptance.

As stated in the case of Pharmaceutical Society of Great Britain v. Boots Cash

Chemist Ltd (1953) 1 QB 401, the defendant was charged under the Pharmacy and
Poisons act 1933 (UK) because sell certain poisons unless such sale was supervised by a
registered pharmacist. The issue is whether a sale occurred when the shopper put the

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displayed item into his basket. Court held that it is an invitation to treat when the goods are
displayed, proposal when the shopper took it and put in the basket and acceptance when
the cashier receives the money from the shopper. However, the defendant was not liable
since there were was a registered pharmacist at the cashier. Meanwhile in the case of
Fisher v. Bell (1960) QB, the defendant shopkeeper displayed a flick knife accompanied by
a price ticket displayed just behind it at his window shop. He was charged with offering for
sale a flick knife contrary to S.1(1) of the Restriction of Offensive Weapons Act 1959. The
court held that the display of the knife was not an offer of sale but merely an invitation to
treat and as such defendant had not offered the knife for sale within the meaning of S.1(1) of
the Act.

Leslie saw a poster in supermarket that read “Buy 3 packs of Oceania tissue paper
and get 1 pack free” and went to the supermarket to purchase it. Leslie only took 4 packs of
them to the counter and later he decided not to buy the tissue when the cashier said that the
promotion was ended but the cashier keep insist him to pay for it. This is same as the case
of Pharmaceutical Society of Great Britain v. Boots Cash Chemist Ltd (1953) 1 QB
401. When the tissue is displayed it is an invitation to treat and when Leslie took it off from
the display it is a proposal. There is no acceptance yet since the cashier did not receive the
money from Leslie. Therefore, Leslie can change his mind because he only took the
Oceania tissue paper because he thought they were still in promotion. The cashier has no
right to insist Leslie to buy them because he did not scan the items yet and no contract is
made.

In conclusion, if there is an acceptance occurred, Leslie would have to pay for the
items. But there is no acceptance yet so Leslie does not have to pay.

(b) On her way home from work, Dahlia’s car had a flat tire. A bystander, Jay assisted
Dahlia to change the tire. Grateful for Jay’s help, Dahlia promised to pay RM100 to
Jay. It has been a month and Dahlia has still not paid the money to Jay.

Can Jay sue Dahlia for the money? (8 marks)

Answer

The issue:
- Whether there is consideration between Dahlia and Jay

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- Whether Jay has right to sue Dahlia

As stated in S.2 (d), when a desire of the promisor, the promise or any other person
has done or abstained from doing, or does or abstains from doing, or promises to do or to
abstains from doing, something such act or abstinence or promise is called a consideration
of the promise. Consideration is one of the elements of Contracts Act 1950 which it is an
agreement enforceable by law. In the case of Dahlia and Jay, it is an executed types of
consideration. It means that that was performance of an act in return to a promise. When
Dahlia made the promise, it was consideration therefore Dahlia must fulfil her promise to
Jay. Otherwise, Jay can sue Dahlia from the breach of the contract.

QUESTION 3

Discuss the legal position in the following situations with reference to the Hire Purchase Act
1967:

(a) Shivani entered into a hire purchase agreement with EasyPay Finance Bhd for the
purchase of a couch. The agreement provided for the payment of RM2000 in ten
instalments. Three months later, Shivani decided to assign the couch to her
neighbour. The company demanded that Shivani pay RM350 for stamp duty and
registration of the hire purchase agreement in her neighbour’s name.
(9 marks)

Answer
Hire Purchase Act 1967 under S.2(1) includes a letting of goods with an option to
purchase an agreement for the purchase of goods by instalments (whether the
agreement describes the instalments as rent or hire otherwise. There are two parties
in a hire agreement which is owner and hirer. In above case, Shivani is a hirer while
EasyPay Finance Bhd is an owner. A hire purchase agreement has to be formed
according to the Act otherwise the agreement will become void. Under S.4 (3) a hirer
shall not be required to pay or give consideration for the preparation of the notice. If
we applied above case, EasyPay Finance should not have demanded Shivani to pay
RM350 for stamp duty and registration. If the company do so, they shall be guilty of
an offence under Hire Purchase Agreement 1967 S.4(6). Under penalty in S.46, the

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company may receive penalty for corporate body which is first offence not more than
RM100,000 and second offence or not more than RM250,000.

(b) Wong entered into a hire purchase agreement with EasyPay Finance Bhd for the
purchase of a lawnmower. The hire purchase agreement was hand-written in the
Chinese language using a green coloured pen. (7
marks)

Answer
Written agreement falls under one of the formation of the hire agreement. Hire
purchase has to be in written otherwise it will be void. S.4A(1A) stated than written
agreement must be in national language or English. In the case of Wong v. EasyPay
Fianance Bhd, the hire purchase agreement was hand-written in the Chinese
language and it was not allowed. The agreement will be void. Besides, S.45 stated
that the ink must be in black. However, agreement between Wong and EasyPay
Finance Bhd was using a green coloured pen. Therefore, the hire purchase
agreement is void.

(c) In September 2018, Jebat signed an agreement with EasyPay Finance Bhd for the
purchase of a lorry under hire purchase. In March 2020, Jebat was involved in an
accident and passed away. On 15 June 2020, EasyPay Finance Bhd served on
Jebat’s wife, a notice to repossess the lorry in default of two successive instalments.
(4 marks)

Answer
Under Hire Purchase Agreement, there are few of rights of hirer which is right by
operation of law S.13, right of early completion S.14, and right to terminate
agreement under S.15. in the case of Jebat v. EasyPay Finance Bhd, Jebat passed
away and it fall under right of operation of law. Under S.13 specify that the right, tittle
and interest of a hirer purchase agreement shall be capable of passing by operation
of law to the personal representative of the hirer. It occurs when the hirer becomes
bankrupt or dead. Therefore, it applied to above case.

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