PRINCIPLES OF BUSINESS LAW
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1 PRIBUS1 JUNE 2013 EXAMINATION DATE: 10 JUNE 2013 TIME: 09H00 12H00 TOTAL: 100 MARKS DURATION: 3 HOURS PASS MARK: 40% (NT-39 / QR-62) THIS EXAMINATION PAPER CONSISTS OF 5 QUESTIONS: ANSWER ANY FOUR OF THE QUESTIONS (100 MARKS) INSTRUCTIONS: 1. Read the following instructions carefully before answering the paper, as failure to act upon them will result in a loss of marks. 2. Write your answers in your answer book, which is provided in the exam. 3. Ensure that your name and student number are clearly indicated on your answer book. 4. Write your answers in either blue or black ink in your answer book. 5. Read each question very carefully before you answer it and number your answers exactly as the questions are numbered. 6. Begin with the question for which you think you will get the best marks. 7. Note the mark allocations for each question give enough facts to earn the marks allocated. Don't waste time by giving more information than required. 8. You are welcome to use diagrams to illustrate your answers. 9. Please write neatly we cannot mark illegible handwriting. 10. Any student caught cheating will have his or her examination paper and notes confiscated. The College will take disciplinary measures to protect the integrity of these examinations. 11. If there is something wrong with or missing from your exam paper or your answer book, please inform your invigilator immediately. If you do not inform your invigilator about a problem, the College will not be able to rectify it afterwards, and your marks cannot be adjusted to allow for the problem. 12. This paper may be removed from the examination hall after the examination has taken place. DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 1 OF 5
2 ANSWER ANY FOUR OF THE QUESTIONS (100 MARKS) QUESTION 1 Define the following: i. Legal capacity (2) ii. Constitutional law (2) iii. Criminal law (2) iv. Law of Procedure (2) v. Law of Persons (2) vi. Law of Personality (2) Explain when a contract is regarded as valid and legally enforceable. (8) Identify certain instances where a minor enters into a contract without his or her guardian's assistance and incurs valid obligations. (5) [25] QUESTION 2 Briefly describe the 'article' in a contract of sale. (4) Provide the legal term in the following scenarios: i. The seller points the article out to the buyer, enabling him to take possession of the article. (1) ii. The seller does not hand the article over to the buyer. He tells the buyer that he is now holding the article for the buyer, not as his own. (1) iii. The seller physically hands over the article to the buyer. (1) iv. The buyer is already in possession of the article and the seller tells him that he may now hold the article as his own. (1) Read the following case study and answer the questions that follow. Midge agrees to buy David's car for R (the contract is perfecta). They agree that David will deliver the car to Midge on 17 April. David fails to deliver the car on 17 April. On 18 April the car is struck by lightning while parked outside David's house. i. Name the type of exception to the rule in respect of risk. (2) DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 2 OF 5
3 ii. Give a brief explanation of the rule. (2) iii. Explain who will be liable for the damage to the car. (6) (d) Identify three forms of duration of a lease. (3) (e) Briefly explain the 'huur gaat voor koop' rule. (4) [25] QUESTION 3 The Labour Relations Act determines whether a dismissal has been unfair by asking three questions. List the three questions that would be asked to determine if the dismissal has been unfair. (3) The requirement of FAIRNESS has two components: the dismissal must be grounded on a valid and fair reason; and the dismissal must be according to fair procedure. Explain the following terms: i. valid (2) ii. fair (2) iii. fair procedure (2) iv. substantively fair (2) (d) Incapacity is the second ground for dismissal. Explain the meaning of incapacity in a contract of employment. (1) Ratification is where a person acts for another person without that person's consent; the latter may nevertheless later ratify the acts by word or conduct. Briefly explain three of the five requirements that must be present for the ratification to be valid. (3 2 = 6) (e) List five things that members can contribute to a partnership. (5) (f) Provide the options for partners in a partnership if a member acts beyond his or her own limited scope of authority. (2) [25] DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 3 OF 5
4 QUESTION 4 Study the picture below and indicate what A H are. (9) It is possible to have joint parties on a bill of exchange. In other words, there may be two or more payees. List the three payees on a bill of exchange. (3) Read the case of General Garage vs. Plough Hotel 1961 (3) S.A 449 (N.P.D) and answer the following questions: A car was borrowed from G by X and Y, so that the latter persons could travel from Johannesburg to Standerton. In fact, the car was driven to KwaZulu-Natal and X and Y stayed the night in the Plough Hotel. The following morning X and Y could not pay the account, handed the key of the car to the hotel owner, and said that he could keep it as security for their account. G eventually traced his car to the hotel and demanded that it be handed back to him. The hotel refused to do so, claiming that it had a lien over the car. DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 4 OF 5
5 i. Name the type of lien in this case. (1) ii. iii. List the two requirements that are essential to establish such a lien. (2) Provide reasons as to whether G has a valid claim for the return of the car. (3 2 = 6) (d) Briefly explain the 'secured portion' of an insolvent estate. (4) [25] QUESTION 5 Name the two classes of legal persons recognised by law. (2) Distinguish between case law and common law. (2 3 = 6) 'In the case of Patel vs. Grobbelaar 1974 the court held that a party who wishes to set aside a contract on grounds of undue influence must show...' Indicate the grounds on which the other party must show that a contract was unduly influenced. (3 2 = 6) (d) (e) Name and briefly discuss the three different contracts of letting and hiring. (3 2 = 6) Name the two types of power of attorney and indicate, according to statute, the types of cases where power of attorney must be granted to agents. (5) [25] [100] TOTAL: 100 MARKS DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 5 OF 5
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