1. Fire Smelters Berhad has agreed to sell a melting furnace to Mangkuk Sdn. Bhd. and has given an undertaking that the melting furnace would have a temperature of not lower than 1427 degree celcius. Fire Smelters Berhad delivered the furnace but the specification was not fulfilled, i.e. the furnace could only reach a temperature of 1000 degree celcius. Advise Mangkuk Sdn. Bhd. (5 marks)

2. Sam buys a bag of charcoal from Utama Jaya so that his family can enjoy themselves sitting around the fireplace in their flat. Unfortunately the bag of charcoal contained an explosive device which exploded when Sam lit the fire. Sam was badly injured. Advise Sam. (5 marks)

3. What is the law which has been decided in the case of Associated Metal Smelters Ltd vs Tham Cheow Toh (1971) 1 MLJ 271? (5 marks)

4. Describe the ways in which an agency can be created. (5 marks)

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business law question