Solve the following business law questions

1.Paula is employed as a Physical Education (PE) teacher at the local high school. During the year, she spent the following amounts for which she has substantiation:

• Purchase of gel comfort running shoes worn everyday (2 pairs) $460
• Purchase of sunscreen, required as her classes are mostly conducted outside $70
• Cost of a one-day seminar on new warm-up and stretching techniques $160
• Taxi fares for travel from home to work when her car was at the mechanic $50
• Cost of first aid course (total before $400 reimbursement by the school) $400

2.(a) Explain the extent of the application of the English common law and the rules of equity as applied in Malaysia today.

3.In relation to the law of contract:

(i) Explain the meaning of the terms 'intention to create legal relations between the parties"

4.Briefly explain 'damages' as one of the important remedies available for breach of contract.

5.In sale of goods, the general rule is that, no one can give a better title than he has himself:

(i) Explain the general rule above;

6.List six (6) exceptions to the general principle that an agent cannot delegate the authority given to him by his principal.

7.Amat, an agent was authorised by Chong to buy a consignment of rice at the price of RM3.00 per kilogram. During the purchase, Amat came across a better quality rice which was priced at RM3.50 per kilogram. Without further informing Chong, Amat decided to purchase the better quality rice although the price is higher than that authorised by Chong. His intentions were so that Chong would be able to resell the rice at a higher price and make more profit. Amat made arrangements for the purchase under his own name. Chong however, failed to take delivery of the rice and the seller sues Amat for breach of contract.

Advise Amat whether he (as an agent) may claim from Chong with regards to the claims made against him by the rice seller.

8.Man engages a forwarding agent by the name of Parjo, to transport a consignment of some fabric from Bandung to Malaysia. Arrangements were made so that the consignment is to be carried by sea and to be landed at a place in Tanjung Kupang, Malaysia. This is not an official commercial port of entry into Malaysia. The reason for this is so that Man could avoid paying import tax to the Malaysian government. Parjo was instructed to unload the consignment at a certain secluded place near Tanjung Kupang. Upon arrival at the Malaysian shores, Parjo proceeded to unload the consignment. While he was at it, Parjo was arrested by the Malaysian authorities and the consignment was confiscated. Parjo was charged with illegally bringing in taxable items into Malaysia and evading import taxes. Parjo was found guilty and paid a hefty fine for the offence. Parjo seeks your advise whether he may claim any indemnity from Man in relation to the losses he suffered since he had acted as Man's agent.

Advise Parjo.

9.(a) (i) Liabilities of partners for wrongful acts or omissions in the course of business: Section 12, Partnership Act, 1961: Where any wrongful act or omission of any partner acting in the ordinary course of the business of the firm or with the authority of his co-partners, loss or injury is caused to any person not being a partner in the firm, or any penalty is incurred, the firm is liable thereafter to the same extent as the partner so acting or omitting the act.

In this situation, Amin as a lawyer was negligent and had incurred a penalty to be paid by their client. This incident happened in the course of the partnership business. Conveyancing transactions which includes the sale and purchase of properties is indeed within the business scope of a legal firm. Since Amin is a partner of the firm, the partnership may most probably be liable for the extra cost incurred by the client as a result of Amin's negligence.

10.On the 1st of November, 2012 the accounting firm of Jessup & Associates entered into an agreement with a building contractor to renovate their office. On the 1st of January 2013, Ali joined the firm as a partner. He signed a partnership agreement which among others, states that he agrees to be liable for the existing debts of the partnership at the time of his admission. Ali however, never read the agreement prior to signing it. The firm later faces some financial difficulties and failed to pay the building contractor. The contractor sues the partnership as a whole as well as the individual partners, including Ali. Advise Ali, whether he is liable for this particular debt of the firm.