Question 1; CASESTUDY

(a) Explain the term 'Judicial precedent' and state two of its advantages. (5 marks)

(b) Kayode and Abinga had an agreement by which they contributed N500,000 each as deposits for the purchase of spare parts. By the agreement, they are to share the spare parts equally on continuous basis. Kayode recently received a consignment of spare parts at the cost of N600,000. Abinga demanded that the spare parts be shared equally with Kayodeon the ground that, by their agreement, they are partners. However, Kayode has sold two-thirds of the spare parts. Abinga, therefore, demands an account from the Kayode of the sales by him of the spare parts. Kayode insists that he cannot account to Abinga because they are not partners.

Required: Advise Abinga on the status of his relationship with Kayode. (10 marks)

(c) The powers of the Board of Directors in running the company differ from those of the General Meeting in nature and limit. Required: Explain succinctly the nature and extent of the powers of the Board of Directors. (5 marks)

Total 20 Marks

Question 2

Please explain!.

1. The following courts are of co-ordinate jurisdiction except

A. National Industrial Court

B. Sharia Court of Appeal

C. Court of Appeal

D. Federal High Court

E. Customary Court of Appeal

2. Which of the following indicates partnership?

A. Joint tenancy

B. Tenancy in common

C. Receipt of annuity

D. Sharing of profits

E. Sharing of gross returns

3. The following clauses must be in the memorandum of association of a

Company except

A. The name of the Company

B. That the company is a private or public company

C. The name of the secretary and auditors

D. That the registered office of the company shall be situated in Nigeria

E. That the liability of members is limited by shares or guarantee or

unlimited

4. A director of a company must be at least of the age of

A. 18

B. 21

C. 25

D. 28

E. 35

5. Under the Companies and Allied Matters Act, the tests for insolvency do

not include

A. Inability of a company to pay a debt exceeding N2,000, three weeks

after demand

B. The existence of court process issued in respect of a judgment debt

C. A court ruling that the company is unable to pay its debts

D. The existence of company's liability in excess of its assets

E. Outstanding debts owed the company in excess of one billion naira

6. Which meeting must a public company hold within six months of

incorporation?

A. Commencement meeting

B. Promoters' meeting

C. Creditor's meeting

D. Statutory meeting

E. General Meeting

7. For how many years must a financial institution preserve the record of

customer's identification under the Money Laundering (Prohibition) Act?

A. 5 years

B. 8 years

C. 10 years

D. 12 years

E. 14 years

8. The physical element of an offence is known as

A. Intention

B. Actusreus

C. Strict liability

D. Mensrea

E. Obiter dicta

9. Which of the following is not an invitation to treat?

A. Display of goods in a shop window

B. Auction

C. Invitation to tender

D. Advertisement of goods in periodicals

E. Sale of necessaries

10. Winding up of a company may take any of the following forms except

A. Creditors' winding up

B. Members' winding up

C. Winding up by the court

D. Winding up subject to supervision by the court

E. Winding up at the complaint of the liquidator