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KASNEB Certified Public Accountant (CPA) INTRODUCTION TO LAW Question Paper Exam Name: INTRODUCTION TO LAW Course: Certified Public Accountant (CPA) Institution/Board: KASNEB Exam Year:may 2011 KASNEB CPA PART 1 SECTION 1 CCP PART 1 SECTION 1 INTRODUCTION TO LAW FRIDAY: 27 MAY 2011. Time allowed: 3 hours Answer any FIVE questions. All questions carry equal marks. QUESTION ONE a) i) Explain the term “international law”. (2 marks) ii) Summarise eight matters that are dealt with under international law. (8 marks) b) i) Explain two categories of judicial precedent. (4 marks) ii) Discuss three disadvantages of judicial precedent as a source of law in your country. (6 marks) QUESTION TWO a) i) Explain the meaning of the term ‘arbitration’. (4 marks) ii) Explain three advantages of arbitration as a form of settlement of disputes over the court process. (6 marks) b) Discuss the constitutional concept of separation of powers in your country. (10 marks) QUESTION THREE a) Janet Rama, a business lady, sent a telephone message to Mary kale a fellow business lady, accusing her of ”stealing” her clients. The message contained abusive words to the effect that Mary kale was ” a witch “who uses “herbs” and “witchcraft” to lure customers to her saloon and boutique. In addition to sending the message to Mary kale, Janet Rama sent the same message to several customers of Mary kale. As a result, Mary kale has lost many of her customers and her business is threatened with closure. All the contents of the message were false. Mary kale has come to you for legal advice. required: i) Explain to Mary kale the term “defamation”. (4 marks) ii) Advice Mary kale on her legal right, if any. (8 marks) b) The general rule is that motive is irrelevant in the law of tort for purposes of liability. Explain the exception to this rule. (8 marks) QUESTION FOUR a) Highlight the rule that govern the capacities of parties to enter into legally binding contracts. (6 marks) b) Citing relevant case law, explain four rules governing remoteness and the measure of damages in the law of contract. (8 marks) c) Describe three conditions necessary for valid ratification of a contract. (6 marks) QUESTION FIVE a) Explain four conditions which are implied in every contract covered by the sale of goods Act. (8 marks) b) Analyse two circumstances under which a seller’s right of lien might be terminated. (4 marks) c) Any person who has been appointed to represent another in dealings with third parties is an agent .there are however persons who regularly act for others in business transactions as professional agents. Discuss four examples of professional agents. (8 marks) QUESTION SIX a) i) Explain the term “hire purchase”. (2 marks) ii) Nura Kara entered into a hire purchase contract with Ujuzi traders regarding a sewing machine. The hire purchase price of the sewing machine was sh. 10.000. Nura Kara has paid a total of sh. 8,000 but is facing financial difficulties and is in arrears for two months. The hire purchase company has repossessed the machine. Nura Kara is aggrieved. Explain the legal principles applicable in this case and advise Nura Kara. (6 marks) b) discuss six rules governing presentment for payment of a bill of exchange. (12 marks) QUESTION SEVEN a) In relation to the law of property, describe five characteristics of copyright. (10 marks) b) Discuss five legal remedies of a mortgagee against a defaulting mortgagor. (10 marks)

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