At 1:30 a.m. on May 8, 1975, 17-year-old Debra Betts collided with a car driven by Anne Gallucci (another Allstate insured) at the signalized intersection of Imperial Highway and La Mirada Boulevard. Betts was alone in the car owned by her father. Witness Pamela Thayer was in the car which followed Gallucci into the intersection. Gallucci suffered severe brain injuries that nearly took her life and rendered her permanently incompetent, unable to relate what had happened. The accident was promptly reported to Allstate by Betts' father who claimed Gallucci had run the red light at the intersection. An employee in Allstate's Downey branch initially rated the case as one of 50-50 liability because it was an intersection collision, but later changed the evaluation to 90-10 against Betts' liability when he receivedMr. Betts'statement regarding Gallucci's traffic light violation and confirmation of that fact from witness Thayer. Another Downey branch office employee, Robert Myers, was put in charge of overseeing the handling of the Betts file. He originally evaluated the case at 80-20 against liability. He later changed this to 90-10 and then to 95-5 in response to claimed factual data affecting the case and because of Ruston's view. Allstate's home office personnel were of the same opinion: they characterized this case as one of no liability whatsoever and determined it should be approached on a "deny/defend" basis.

1. According to law of sales of goods act, generally there is no implied condition as to fitness for any particular purpose of the goods supplied. Therefore, outline four exceptions to the general rule above.

2. Samuel Leo made an offer to purchase David Kesho's car. However, David Kesho upon accepting the offer was informed by Samuel that the offer was terminated. David did not understand how that was possible. Advise David on the ways in which an offer could be terminated.

3. There are some requirements and administrative body must meet in order to avoid review of its decision by courts. Describe the requirements that an administrative body must meet in making an administrative decision so that it avoid a review of its decision by the courts.

4. With specific reference to the law of agency which focuses on the relationship between the principal and agent who acts on his behalf; explain four ways in which an agency relationship may terminate.

5. In relation to the sale of goods act, it involves two parties that is the buyer and the seller in their contractual activities. Therefore, outline four circumstances when a buyer might reject the goods and repudiate the contract.

6. In the context of classification of law, there are various punishment given to those going against the rules. Hence, state four modes of sentencing that a court might impose on an offender.

7. Partnership is a contract between two or more in order to carry out a business. With reference to partnerships; identify five ways in which a person shall cease to be a partner of a certain business.

8. Law of tort is concerned with a civil wrong committed other than breach of contract. With reference to the law of tort; explain the legal principle in the rule of Ryland's verses Fletcher as seen in this case law.

9. An incorporated association is an association of persons recognized as a legal entity which has its own rights and is subject to obligations. With reference to the above statement, explain two ways in which an incorporated association might be brought into existence.

10. In relation to the law governing negotiable instruments which is an unconditional order, explain three types of endorsements that might be made on a bill of exchange.