SECTION 1

Q1 (a) The directors of Kante Bank Plc intend to please the shareholders of the bank by ensuring that they distribute all the profits of the bank as dividends without any fund conservation. They plan to do that, so that shareholders may vote to retain them in office. The bank's paid up capital is less than its reserve. Required As the Company Secretary of Kante Bank Plc, with knowledge of the Banks and Other Financial Institutions Act, advise the bank on reserve funds. (5 marks)

(b) Agents have some rights in law. Required State fiveof therights of an agent (5 marks)

(c) There are implied conditions in all contracts of sale of goods. Required Which conditions are implied where goods are sold by sample? (3 marks)

(d) A hirer of goods has some remedies against the owner.

Required State tworemedies of a hirer in a hire purchase contract (2 marks)

(e) A contract of insurance has elements of offer and acceptance.

Required Explain briefly the making of offer and acceptance in insurance contract. (5 marks)

Q2.(a) Electronic evidence is a means by which the commission of some offences may

proved.

Required:

State five ways of authenticating an e-mail message. (5 marks)

(b) Section 3(1) of the Money Laundering (Prohibition) Act provides, inter alia, that

a Financial Institution and Designated Non-Financial Institution shall verify its

customer's identity before opening an account for, issuing a passbook to,

entering into a fiduciary transaction with, renting a safe deposit box to, or

establishing any other business relationship with the customer.

Required:

Explain the mode of verifying the identity of

(i) An individual; and

(ii) A corporate body.

(5 marks)

(c) Sunday is a dealer in Mercedes Benz cars spare parts. He purchased a

carton of piston and rings from Chukwuma, a seventeen-year old shop

assistant of Mr. Emeodi. Chukwuma, who was not in the shop when

Mr. Emeodi brought in the goods, gave Sunday a carton of Nissan car

piston and rings instead of that of Mercedes Benz. Sunday has just

discovered that the goods he bought on credit were not what he ordered

for. His counsel is of the opinion that there was no contract ab initio as

there are vitiating elements.

Required

Advise Sunday on the status of his contract with Mr. Emeodi.

(10 marks)

SECTION 2

1.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

2. 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

3. 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

4. The physical element of an offence is known as

A. Intention

B. Actusreus

C. Strict liability

D. Mensrea

E. Obiter dicta

5. 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

6. 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

7. The appointment of a director of a company at a general meeting is by

A. Extra-ordinary resolution

B. Ordinary resolution

C. Special resolution

D. Business resolution

E. Director's resolution

8. The Financial statements of a company shall include the following except

A. The balance sheet as at the last day of the year

B. Aprofit and loss account, or in the case of a company not trading for

profit, an income and expenditure account for the year

C. Notes on the account

D. Auditors' reports

C. Audit Committee's report

9. Under the Money Laundering (Prohibition) Act except in a transaction

through a financial institution no corporate body shall make or accept cash

payment of a sum greater than

A. N500,000

B. N1,000,000

C. N5,000,000

D. N7,500,000

E. N10,000,000