I need solutions for the Mid semester Examination questions attached.

THE UNIVERSITY OF THE SOUTH PACIFIC FACULTY OF BUSINESS & ECONOMICS SCHOOL OF ACCOUNTING & FINANCE SEMESTER I MID SEMESTER EXAMINATIONS 2017 FACE TO FACE MODE AF108: INTRODUCTION TO LAW FOR COMMERCE Time allowed: NINETY (90) minutes 5 minutes Reading Time INSTRUCTIONS: This paper is in three sections. There are ten (10) multiple choice questions in section A. There are three (3) questions in Section B, and you are supposed to answer any Two (2). All questions in Section C are compulsory. ALL Questions in Section A and Section C are compulsory Answer any TWO (2) questions from Section B out of the Three (3) questions. For questions in parts, answer all parts. Section A is worth 10 marks. Section B is worth 5 marks. Each question in Section C is worth Five (5) marks. The exam is worth Twenty Five (25) marks. In your answers, refer to relevant cases and statutes where applicable. This Exam paper has 5 pages. 1 SECTION A: ALL questions in this section are compulsory This section is worth 10% of your final results: Circle the alphabet of the answer that is most accurate: 1. When talking about a company being a separate legal entity, this means that: (a) (b) (c) (d) the company is viewed at law as a person the directors of the company are viewed at law as a person the shareholders are viewed at law as a person the directors and the shareholders of the company are viewed at law as a person 2. Which of these is NOT essential for a valid simple contract? (a) (b) (c) (d) Offer and acceptance Consideration A signed document Intention to create legal relations 3. A minor can claim incapacity in a loan agreement and the loan agreement will not be binding on the minor if: (a) (b) (c) (d) the loan was to pay for education and the minor spent the money on a round the world trip the loan was for university tuition fees and the lender paid directly to the university the loan was for buying a motor cycle for the minor and the lender paid directly to the vendor of the motor cycle the loan was to pay for the minor's food expenses at the university dining hall and this money was paid to the university dining hall 4. A mutual mistake occurs when: (a) (b) (c) (d) both parties are mistaken about the existence of the subject matter of an agreement none of the parties are mistaken the subject matter disappears one party is mistaken and the other takes advantage of it 5. Intention to create legal relationships will be presumed to apply in domestic agreements. This principle was applied in: (a) (b) (c) (d) Crown v Clarke Balfour v Balfour Carlill v Carbolic Smoke Ball Co Roscorla v Thomas 2 6. Which of the following types of law is made by a court? (a) (b) (c) (d) Statutes Executive orders Common law Two of the above 7. Breach of a condition allows the innocent party to (a) (b) (c) (d) claim for incapacity only claim damages only claim interest and costs treat the contract as at an end 8. The doctrine of "precedent" provides that: (a) (b) (c) (d) decisions of the Privy Council are binding in Fiji decisions of Courts higher in the hierarchy of Courts are binding on Courts lower in the hierarchy decisions of Courts lower in the hierarchy are binding on higher Courts decisions of the Magistrates Courts are binding on all other courts 9. Which of the following is NOT a rule for the interpretation of Statutes: (a) the golden rule (b) the purpose approach (c) the nemo dat rule (d) the literal rule 10. In the case reported as Brad -v- Pitt (1986) 28 FLR 110, it is possible to conclude that the case was: (a) (b) (c) (d) a civil case a criminal case won by Bradley heard in the Magistrates Court of Fiji 3 SECTION B: THIS SECTION IS COMPULSORY Answer ANY TWO(2) Questions from this section. Each Question is worth 2.5 marks. 1) Explain the doctrine of 'stare decisis'. 2) In contract law, explain the court presumptions about doctors, lawyers and pastors. 3) Explain why laws drafted by Parliament are a more democratic form of law. SECTION C: ANSWER ALL QUESTIONS FROM THIS SECTION Question One (5 marks) On 23rd May 2016, the sellers made a quotation offering to sell a machine tool to the buyers for USD$300,000 and delivery was to be within ten months time. The offer was stated to be subject to certain terms and conditions which stated that they should prevail over any terms and conditions in the buyer's order. The conditions included a price variation clause providing for the goods to be charged at the price ruling on the date of delivery (the market price at the time of delivery). On 27th of May 2016, the buyers replied by placing an order for the machine. The order was stated to be subject to certain terms and conditions, which were materially different from those put forward by the sellers and which, in particular, made no provision for a variation in price. At the foot of the buyers' order there was a tear-off acknowledgement of receipt of the order stating that: \"We accept your order on the Terms and Conditions stated thereon\". On 5th June 2016 the sellers completed and signed the acknowledgement and returned it to the buyers with a letter stating that the buyers' order was being entered in accordance with the sellers' quotation of 23rd May 2016. When the sellers came to deliver the machine they claimed that the price had increased by USD$10,000. The buyers refused to pay the increase, and the sellers claimed that the price variation in their offer entitled them to the increase in price. 4 Advise the buyer whether they have to pay the price increase. First understand the problem situation, then analyse it, and advice the buyer why they have to pay or why they do not have to pay the increase in price. Use relevant cases to support your arguments. Refer to relevant cases where appropriate to support your arguments. Question 2 (5 marks) On 1st February Tradex Ltd in Suva wrote a letter to Samco Ltd in Samoa offering to sell 100 tonnes of oil at $1.30 per litre (assume 1kg = 1 litre). Samco received this offer letter on 11th February, and accepted it by e-mail on the same day. Having not heard anything back, on 8th February Tradex Ltd posted a revocation of their offer by letter as oil prices had increased in Suva due to a shortage in supply, and uncertainty in the world oil markets. Samco Ltd received the revocation on 20th February. Advise Samco Ltd and Tradex Ltd on their rights and liabilities in the above situation. Refer to appropriate cases to support your answer. Refer to relevant cases where appropriate to support your arguments. ***There is an Answer Booklets provided. *** 5