BUSINESS LAW

Please answer each question carefully whether to use the appropriate IRAC method.

Question 1

Sadaq is the owner of a cafe called 'Cascara'. Recently a waiter in his restaurant spilled a bowlof hot soup onto the lap of one customer, Mila causing second degree burns. Mila is suing the waiter for negligence. However, Sadaq is surprised when he learned that Mila has also namedhim as a defendant in her suit. Sadaq is wondering why he should be liable because obviouslyit was the waiter who was at fault.

Explain to Sadaq why Mila included his name as the defendant and discuss whether Mila wouldbe successful in her claim against Sadaq. (12 Marks)

ANSWER:

Question 2

A. Macho Man Store (MMS), a company retailing DIY tools and hardware issued a catalogue ofitems they had for sale at their new branch. One item is a BOSCH Impact Drill set which isadvertised at RM175. Arman saw this catalogue and is determined to buy the drill setmentioned above. He went to MMS, took a drill set from the display shelf, and went to thecash desk where he gave RM175 for the drill set. The sales assistant however told him thatthere was an error in the price printed on the catalogue and the actual price is RM475.Arman insisted that he is entitled to buy the drill set at RM175 but the store refuses to sell tohim. In the context of contract law, explain whether Arman could buy the drill at RM175.

( 12 Marks)

ANSWER:

B. Firas visited a night market where he found a unique t-shirt sold by Kiran for RM20 ringgit. Firas agreed to the price and handed RM20 to Kiran. He then decided to straightaway wearthe t-shirt. While he was still browsing at the market, someone approached him and askedwhere he bought the t-shirt. Firas brought him to Kiran's stall. It turned out that the t-shirt is arare, limited-edition t-shirt and can fetch RM300 among collectors. Upon hearing this Kiranimmediately demanded the t-shirt back and want to return Firas' RM20. Kiran claimed thatthe contract is void due to mistake. Advise Firas whether this is true.( 10 Marks)

ANSWER:

(Total: 22 Marks)

Question 3

A. While in Pulau Tioman , Aboy decided to go fishing for Black Marlin, a large fish popularamong anglers. Aboy visited Soong's Sports Shop to buy fishing equipment. Aboy explainedhis specific need to the salesperson. Aboy then bought the fishing gear the salespersonrecommended. During the first trip out, Aboy had repeated strikes, but the line was too lightfor the weight of the fish. The line broke every time even though handled properly. Aboy isvery upset as he had spent a lot for the fishing trip but came back with nothing.

IdentifyONE (3)implied term under Sale of Goods Act that Aboy can use if he wishes to sueSoong's Sports Shop for breach and discuss whether he would be successful in his claim.

ANSWER:

(8 Marks)

B. Mickey bought a bicycle from Goofy for RM2000 and spent an additional RM300 to have itupgraded. After two months, he discovered that Goofy had stolen the bicycle from Donaldand Donald is demanding his bicycle back from Mickey. Advise Mickey of his rights underthe Sale of Goods Act 1957.(7 Marks)

(Total: 15 Marks)

ANSWER:

Question 4

A. A manager in one company seeks your opinion about Laura, one of his employees. He toldyou that Laura just joined the company in January 2022 as Planning Executive. In early April2022, Laura told him that she is pregnant with her first child and will be delivering sometimein October 2022. The manager wants to know whether the company has to give Laura paidmaternity leave since she has not completed 12 months of service and her salary isRM3,800. Explain to the manager the position under Malaysian Employment Act 1955.

ANSWER:

( 10 Marks)

B. Haiqal is an administrative clerk earning a salary of RM1880 in Syarikat Rosken. OneTuesday morning, he woke up feverish, dizzy, and nauseous. He suspected that he has theflu, so he asked his brother to purchase some medicines from a nearby pharmacy. After taking the medication, he went back to sleep and only reported back for work on Thursday.He was surprised when his employer wants to take disciplinary action against him for beingabsent. He claimed that he was sick and produced the receipt for the medicine that hebought as proof and maintain that he was not wrong for not coming to work on Tuesday andWednesday as the Employment Act allows employees to take sick leave. Based on thegiven scenario, explain whether Haiqal's action is allowed under the Employment Act 1955.

(7 Marks)

ANSWER:

(Total: 17 Marks)