Business Law Exams Question

Case studies

This assignment has 16 cases in it:

a.    Business Law Exams Question

‘Adams v Cape Industries Plc (1990) provides justice between the creditors

and  shareholders  in  case  of  a  company  bankruptcy’.  Is  that  correct?

Discuss.

b.   Business Law Exams Question

1. By what  principles  must  an  employer  be  guided  when  imposing

restrictions on the present and future activities of his employees?

1. T was  employed  by  E  as  a  traveler  for  children’s  wear  and  gave  a

signed undertaking that he would never engage in similar work for any

competitor  should he  terminate  his  employment with  E.  Upon  leaving

E’s  employment  however,  he  accepted  a  similar  post  with  C,  a

competiting  manufacturer.  Give  reasons  why  E,  could,  or  could  not

enforce T’s undertaking

 

c.    Business Law Exams Question

Eleni, aged 17, decides to leave home because she does not get on with her parents.

During the next 3 weeks she enters into the following agreements:-

(a)  She borrows £500 from her elder brother to pay her expenses until she can

find a job.

(b)  She takes a 2-year lease on a flat, paying 3 months’ rent in advance.

(c)  By  pretending  to  be  21,  she  orders  some  furniture  costing  £700 from

Woolworths on 12 months’ interest-free credit.

Discuss the legal effect of each of these agreements.

d.   Business Law Exams Question

(a)  What is meant by subrogation?

(b)  X  insures  property  against  fire  risk.   Shortly  before  the buildings  are  damaged  by  fire,  negotiations  are  begun  with  a prospective  purchaser  and  X  receives  £1,000  from  the insurance  company.   On  completion  of  the  sale  the  company seek to recover the sum from X. Advise X.

e.   Business Law Exams Question

(a)  To  what  extent  will  a  party  to  a  contract  be  able  to  plead successfully  that  a  mistake  has  released  him  from  his  legal obligations?

(b)  During negotiations for the sale of a painting, Fred offered to buy  it  at  an  inflated  price  in  the  mistaken  belief  that  the painting was the work of a Dutch master. The painting was the work  of  a  forger.   The  vendor,  Hogg,  thought  that  he  was selling the painting to Fred’s twin brother, George. To avoid embarrassment,  Fred  did  not  draw  Hogg’s  attention  to  the misuse of names. Fred pays for the painting by cheque which is  later  dishonoured.   By  the  time  that  the  cheque  has  been returned to Hogg, accompanied by a note from the bank that it has  been  dishonoured,  Fred  has  sold  the  painting  to  Ilka. Advise Hogg.

f.     Business Law Exams Question

(b)  Under  a verbal agreement Jack agreed to grant the lease of a shop and an adjoining forecourt to Kenneth for £98,000. The written agreement refers exclusively to the lease of the shop for £99,000;  no  mention  is  made  of  the  forecourt.   The  written agreement provided that ‘the said premises shall be used solely as  a  shop’.   Kenneth  begins  trading  as  Lampoon  Ltd.,  a business  engagement  in  light  industry.   At  the  time  of  the negotiations  Kenneth  did  not  disclose  that  he  proposed  to change the use of the premises from being a shop to the present use.   Jack  occupies  a  luxury  maisonette

over  the  premises. Advise the parties as to any legal remedies available to them.

 

g.    Business Law Exams Question

Michael advertises his car for  €40,000.  John  sees  the  advertisement

and calls Mike saying that he accepts to pay the €40,000 but asks for

a new cd player to be installed in the car. Later that day Adam calls

Michael  and  offers  €42,000.  Michael  accepts  and  gives  the  car  to

Adam. John is angry and feels that Michael has deceived him. Advise

John.

h.   Business Law Exams Question

John recently obtained a remote controlled colour TV set. What are his

rights in the following different circumstances?

(a) Just as he is sitting down to watch ‘Match of the Day’ there isa flash

and a puff of smoke from the back of the TV and the screen goes

blank. John bought the set new from a local department store. He

paid for it in cash.

(b) John obtained the TV from his brother-in-law, Paul, by exchanging

his music centre with him. John was told by John that it was a colour

TV but so far he has only got a black and white picture.

(c) John is an American football enthusiast. He told the salesman at TV

World Ltd., a local electrical shop, that he wanted a TV set which

would receive Channel 4 broadcasts. John, who is buying the TV on

hire-purchase, has now discovered that he cannot get Channel 4 with

this particular model.

(d) The remote control unit refuses to work. John took the TV on hire

from a local TV rental firm.

 

i.      Business Law Exams Question

John puts an advertisement in the newspaper offering a reward of £100 to

anyone who finds and returns John’s cat. Susan reads the advertisement,

finds  the  cat,  returns  it  and  claims  the  reward.  John  refuses  to  pay  the

reward  on  the  basis  that  Susan  had  not  communicated  her  intention  to

accept the offer prior to finding and returning the cat. Advise John.

j.     Business Law Exams Question

John owns a 1951 Mercedes SL that he wishes to sell. He instructs Ross  to

sell the car, and in return, will be paid £5,000 commission. Ross manages to

find a buyer, Paul, and introduces Paul to John. However, John decides not

to proceed with the sale. Advise Ross.

k.    Business Law Exams Question

Alex, Barry and Catherine have traded as a partnership for several years.

The business has been successful and has expanded rapidly. They believe it

could expand further, but require additional capital to continue to expand

in the way they want to. They are considering  to  register their business, as

they believe that this will enable them to seek the capital they need.   Advise

the partners.

l.          Business Law Exams Question

A contract with B to buy 10 tonsof black Chinese cement to be delivered to Limassol port on the 22.4.05. On the 20.4.05 B indicates to A that he will be unable to deliver the said merchandise but instead offers him 8 tons of white Japanese cement. Advise A as to what he can do, and why.

m. Business Law Exams Question

‘Adams  v  Cape  Industries  Plc  (1990)  provides  justice  between  the

creditors  and  shareholders  in  case  of  a  company  bankruptcy’.  Is that

correct? Discuss.

n.   Business Law Exams Question

Mark advertises a car and says that this car has 30,000 miles. Peter

sees the advertisement and makes an offer to Mike for €5000. Mark

accepts and sells the watch to Peter. After 3 months Peter finds out

that the car has actually 50,000 miles. Advise Peter.

o.   Business Law Exams Question

Andy  advertises  a  TV  for  1,000  Euro.  Chris  sees  the  advertisement  and

calls Andy saying that he accepts to pay the 1,000 Euro but wants to do so

in 2 installments of  500 Euro each. Later that day Michael calls Andy and

offers  1,200  Euro.  Andy  accepts  and  gives  the  TV  to  Michael.  Chris  is

angry and feels that Andy has deceived him. Advise Chris.

p.   Business Law Exams Question

Michael advertises a bracelet stating that it is a 1940s antique. John sees

the  advertisement  and  makes  an  offer  to  Michael.  After  2  weeks,  John

finds out that the bracelet was actually made in 1990. Advise John.