BUSINESS LAW
November 2022
THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN SUPPLY CHAIN MANAGEMENT
DIPLOMA IN BUSINESS MANAGEMENT
DIPLOMA IN CO-OPERATIVE MANAGEMENT
DIPLOMA IN INVESTMENT MANAGEMENT
DIPLOMA IN ENTREPRENEURSHIP
DIPLOMA IN HUMAN RESOURCE MANAGEMENT
MODULE I
BUSINESS LAW
1. (a) Explain four circumstances under which African customary law is applicable in
Kenyan courts. (8 marks)
(b) A principal is generally liable for the acts of the agent. Outline six exceptions to this rule. (12 marks)
2. (a) Explain five defences available to a person sued under the rule of Rylands vs Fletcher.(10 marks)
(b) In relation to the law of contract, highlight five rules that the courts apply to distinguish liquidated damages from penalties. (10 marks)
3. (a) In relation to the law for succession, explain five characteristics of a will. (10 marks)
(b) Explain five ways in which the supremacy of the constitution of Kenya is manifested.
(10 marks)
4. (a) In relation to the law of property:
(i) explain three ways in which ownership may be acquired; (6 marks)
(ii) outline two characteristics that distinguish possession from ownership. (4 marks)
(b) Waire entered into contract with Riuki Contractors in which Riuki Contractors was to construct a house for Waire. They expressly agreed that the house should be completed within four months. By the end of the four months, Riuki contractors had only done half of the work. Waire is aggrieved and intends to file a suit against Riuki Contractors.
Explain the legal principles that are relevant to this case. (10 marks)
5. (a) Explain five grounds that may justify summary dismissal of an employee from employment. (10 marks)
(b) Jackson sneaked into Maiba’s compound at dawn with the intention of stealing mangoes from a mango tree within the compound. As Jackson walked towards the tree, he fell into an open pit dug by Maiba to construct a latrine. Maiba found him still inside the pit, with a broken leg, where he confessed his intentions.
Explain whether Maiba can successfully sue Jackson for trespass. (10 marks)
6(a) Explain four duties of an advocate in Kenya. (8 marks)
(b) A married woman has authority to act as her husband’s agent to take necessities on credit. Highlight six instances when such authority may come to an end. (12 marks)
7 (a) Outline six functions of the rent tribunal. (12 marks)
(b) Outline four rights that the constitution of Kenya guarantees an individual. (8 marks)