1. 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?

A. Yes, because he has expressly appointed Sofi as his agent

B. Yes, because he has held out Sofi as his agent

C. No, because Sofi was the one who claimed to be an agent

D. No, because he never authorised Sofi to contract with Lim on his behalf

2. 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

A. express appointment

B. implied appointment

C. ratification

D. necessity

3. 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?

A. Duty to obey the principal's instructions

B. Duty to exercise care and diligence

C. Duty to communicate with the principal

D. Duty to render proper account to the principal

4. 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

B. i, ii and iv

C. i, iii and iv

D. ii, iii and iv

5. Which of the following situations will result in an automatic termination of an agency?

A. Rafi who is 17 years old was appointed by Halim to sell his watch

B. Jason who is the principal of Darrell has been declared bankrupt

C. Ying appointed Joe to manage a book store for him but Joe had to be hospitalised for two months after he was diagnosed with Covid 19

D. Kavita purchased an apartment for Datin Suhana and received a secret commission of RM5,000 from the seller

6. 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.

B. It is a breach of the hire purchase agreement if a hirer sells the goods before completing the payment

C. The owner may keep the goods in his possession until the hirer completes the payment of the hire purchase

D. A hirer is legally bound to observe all the terms in the hire purchase agreement

7. 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

B. Amara must obtain the consent of the owner on which item she has to pay

C. The owner has the right to choose which item Amara should pay

D. Amara must apply to the court for permission to choose which item she wishes to pay

8. 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.

What action may Salman take against the owner in this situation?

A. Salman may repudiate the agreement

B. Salman may sue for damages

C. Salman may repudiate the agreement and sue for damages

D. Salman cannot take any action against the owner

9. 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

A. i, ii and iii

B. i, iii and iv

C. ii, iii and iv

D. i, ii, iii and iv

10. 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?

A. Yes, because Awang has defaulted in two successive payments

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

C. No, because Awang has not defaulted in four successive payments

D. No, because the Hire Purchase Act 1967 does not allow direct repossession of goods by the owner in this situation