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ATD 1-LAW

Which of the following statements about bill of exchange and promissory note are not true?

In a bill of exchange, there are three parties, whereas, in the case of a promissory note the number of parties is two(2).
The liability of the maker of the promissory note secondary and conditional,whereas, the liability of the maker of the bill of exchange is primary and absolute.
Bill of Exchange is a financial instrument showing the money owed by the buyer towards the seller, whereas a promissory note is a written document in which the debtor promises the creditor that the amount due will be paid at a future specified date.
A Bill of Exchange can be made in copies, but Promissory Note cannot be made in sets.

Cheque crossing conveys that the underlying amount is to be paid to the banker and not over the counter. In ________, the cheque bears the name of the bank within two transverse parallel lines that are used to cross the cheque.

General cheque crossing
Account payee’s crossing
Not negotiable crossing
Special cheque crossing

TRUE or FALSE: A person can become a holder in due course, before or after the maturity of the negotiable instrument, whereas, a person can become a holder, only before the maturity of the negotiable instrument.

True
False

A (a)________refers to the payee of the negotiable instrument, who is in possession of it and is entitled to receive or recover the amount due on the instrument from the parties thereto, whereas, a (b)___________ implies a person who obtains the instrument bonafide for consideration before maturity, without any knowledge of defect in the title of the person transferring the instrument.

a). Holder, (b). Holder in due course

In reference to bills of exchange, ________endorsement refers to the writing of the name of a person who holds a negotiable instrument on the back of the document without specifically designating to whom the paper is to be paid, which transfers the rights that the signer had in the instrument to the person who presents it for payment.

Falcultative
Special
Conditional
Blank

TRUE or FALSE: A drawee has no liability regarding any bill addressed to him for acceptance or payment until he accepts the bill by writing the word 'accepted' on the bill and signing his/her name below to complete the acceptance.

True
False

TRUE or FALSE: In Kenya,if a cheque is altered and the drawer later authorizes the alteration (usually by initialing it), the effect is that the drawer is bound by the cheque as altered, and other parties are protected by section 64 unless they, too, have assented to the alteration.

True
False

Mark drew a cheque for USD 4,400/= in favor of Michael, who fraudulently altered the amount to USD 440,000/=, and sold (negotiated) it to Thomas who negotiated it to Simon. Here, Simon can enforce it against:

Thomas and Mark
Mark and Michael.
Michael only
D. Michael, Thomas, and Mark.

Where alteration to a bill is material, it becomes______ void except as against the party who was privy to the alteration and except in the case of an alteration that is not apparent.

Voidable
Valid
Void
Illegal

Sans recours (without recourse) means that:

That the buyer of a promissory note or other negotiable instrument assumes the risk of default.
That the seller of a promissory note or other negotiable instrument assumes the risk of default.
That the endorser of a promissory note or other negotiable instrument assumes the risk of default
A person who signed a promissory note or other negotiable instrument under fundamental mistake assumes the risk of default.

TRUE or FALSE: In Kenya, if a negotiable instrument is dishonored (i.e., not paid when due), a holder for value can sue any person who signed the bill before it came into his possession

True
False

Bills of lading, Post Office orders, money orders, registered share certificates, IOUs and receipts, dock warrants, delivery orders, etc. are examples of:

Non-negotiable instruments

Outline five(5) requirements of negotiability of a bill of exchange.

Requirements of negotiability of a bill of exchange.

In relation to negotiable instruments, drawee in case of need refers to:

The bill holder who endorses a bill of exchange to another person.
The person who signs the bill of exchange as a mark of acceptance.
The person who accepts a bill of exchange in case the original drawee does not accepts the bill.
The person who accepts the bill in case an endorsee does not accept the bill.

Highlight four(4) distinctions between a bill of exchange and a cheque.

Distinctions between a bill of exchange and a cheque.

Define negotiable instruments and provide three (3) examples.

Negotiable instruments and 3 examples.

Outline five(5) requirements for an acceptance of honor supra protest to be valid.

Requirements for an acceptance of honor supra protest to be valid.

I reference to agency law,_________ agency refers to the relationship between the agent and the seller wherein the seller acts as the principal and the agent not only acts as the broker of the principal but at the same time he also undertakes the guarantee of the credit which is extended to the buyer.

Del Credere

In reference to agency law,__________authority occurs when the agent exceeds the scope of their express or apparent authority, but it can be implied by a third party that the agent has that authority.

Inherent authority

If a client makes the agent sign a contract specifying what the agent can and cannot do, this is an example of __________authority.

Inherent
Actual express
Implied
Apparent

The ___________ stipulates that when a contract is required by law to be in writing, the authority of an agent to enter into such a contract on behalf of the principal must also be in writing.

Equal dignities rule

TRUE or FALSE: A principal might be estoppel from revoking an agent’s authority if the principal limited the agent’s authority but fails to inform third parties who deal with him/her of the agent’s limited authority.

True
False

TRUE or FALSE: Where an agent himself /herself has an interest in the subject-matter of the contract, the agent is personally liable to the extent of his/her interest in the subject-matter.

True
False

Outline five(5) circumstances under which an agent might become personally liable to third parties.

Circumstances under which a gent is personally liable

The concept of agency by ________arises where one person acts in such a way that the other believes that a third person is authorized to act on his behalf and enters into a transaction with the third person.

Express agreement
Estoppel
Implied agreement
Ratification

Define the following terms:
i. Fiduciary
ii. Agency by necessity

i. Fiduciary ii. Agency by necessity

Moses entered into a contract with Elijah as her agent. Moses wants to know the duties of an agent to the principal. Outline four(4) duties of the agent(Elijah) to the principal( Moses).

Duties of the agent(Elijah) to the principal( Moses).

Outline three(3) rules governing the agency by ratification.

The rules governing the agency by ratification

An agency by ratification is also known as_________ agency.

Ex post facto

TRUE or FALSE: Ratification renders the ratifier (the principal) bound to the contract as if he had expressly authorized the person to transact the business on his behalf.

True
False

An agency is created :

When two or more parties to manage and operate a business and share its profit.
When a commercial enterprise is undertaken jointly by two or more parties which otherwise retain their distinct identities.
When a person delegates his authority to another person to act under his or her control and on his or her behalf or appoints them to do some specific job or a number of them in specified areas of work.
When organizations come together to promote the business interests of their members.

Highlight three(3) conditions that must be satisfied before the principle of contribution can be applied

The conditions that must be satisfied before the principle of contribution can be applied

Which of the following statements is/are true about insurable interest in life assurance?

A child has no insurable interest in the life of his parents &vise versa in common law.
A master has an insurance interest in the life of his servant to the extent of the value of the services agrees to be rendered.
A servant has an insurable interest in the life of his master to the extent of his remuneration for the agreed period of service.
All of the above.

TRUE or FALSE: One can purchase a life insurance policy without the existence of an insurable interest.

True
False

In insurance industry, an________ contract requires the highest standard of good faith during disclosure of all material facts that could influence the decision of the other party

Uberrimae fides

__________refers to a document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued.

Certificate of insurance
Insurance policy document
Cover notes
Insurance proposal form

TRUE or FALSE: Life assurance pays out a tax-free sum to whomever you choose when you die, whereas Life insurance pays out a tax-free sum to whomever you choose if you die during the terms of the policy.

True
False

Life (i)_______is designed to cover the policyholder for a specific term, while life (ii)______usually covers the policyholder for their entire life.

i. Insurance. ii. Assurance

________arises where the same party is insured with two or more insurers in respect of the same interest on the same subject matter against the same risk and for the same period of time.

Subrogation
Contribution
Double Insurance
Reinsurance

A creditor has an insurable interest in the life of a:

Debtor

TRUE or FALSE: A spouse who relies on their partner for finances has an insurable interest in the life of the partner.

True
False

Outline eight (8)types of risks that are insurable.

Types of risks that are insurable.

An insurable interest can be defined as:

A sudden and unexpected event that results in damage to an asset and the resultant damage from failure of the asset that can be claimed under and insurance policy.
A type of investment that protects anything subject to a financial loss or the level of hardship someone would experience as a result of the loss of someone or something.
A risk that conforms to the norms and specifications of the insurance policy in such a way that the criterion for insurance is fulfilled.
A type of insurance policy where the insurance company guarantees compensation for losses or damages sustained by a policyholder.

Insurance policies have five main parties: The declaration page, Definitions, Insuring agreements, Exclusions & limitations, and Conditions. Outline the contents covered under the declaration page.

The contents covered under the declaration page

TRUE or FALSE: The principle of contribution only applies to those insurance contracts which are contracts of indemnity.

True
False

Under the principle of _______ ,the total payment for actual loss is proportionally divided among all insurance companies.

Contribution

The insurance principle of subrogation:

Enables the insurer to ensure the subject matter with some other insurer.
Enables the insurer to provide financial compensation to the insured in the event of financial loss.
Ensures both parties disclose all material facts to each other.
Enables the insurer to claim the amount paid to the insured from a third party responsible for the loss.

The ______ is the Government agency established under the Insurance Act, Cap.487 with a mandate to regulate, supervise and develop insurance sector in Kenya.

Insurance Regulatory Authority (IRA)

Elija, a shareholder of Noah Limited lost his share certificate. He applied for a duplicate one and the company agreed, but on the condition that Elija compensate for the loss or damage to the company if a third person brings the original certificate. This is an example of :

Indemnity

Which of the following statements about the contract of guarantee and a contract of indemnity is/are not true?

In the contract of indemnity, one party makes a promise to the other that he will compensate for any loss occurred to the other party because of the act of the promisor or any other person, whereas in the contract of guarantee, one party makes a promise to the other party that he will perform the obligation or pay for the liability, in the case of default by a third party.
In indemnity, there are two parties, indemnifier and indemnified but in the contract of guarantee, there are three parties i.e. debtor, creditor, and surety.
The liability of the indemnifier in the contract of indemnity is secondary whereas, in guarantee liability of the surety is primary because the secondary liability is of the debtor.
The purpose of the contract of indemnity is to save the other party from suffering loss. However, in the case of a contract of guarantee, the aim is to assure the creditor that either the contract will be performed, or liability will be discharged.
In the contract of guarantee, the liability arises when the contingency occurs while in the contract of identity, the liability already exists.
Contract of guarantee is covered under the law of contract Cap 23, laws of Kenya, whereas, contract of indemnity is covered under the law of contract Cap 44, laws of Kenya.

TRUE or FALSE: An insurance contract is an example of a guarantee.

True
False

Outline eight(8) rights that a guarantor has against a creditor.

Rights that a guarantor has against a creditor.

TRUE or FALSE: A continuing guarantee applies to a series of separable, distinct transactions. Therefore, a guarantee given for an entire consideration can be termed as a continuing guarantee.

True
False

An (i)______guarantee refers to a guarantee that is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, whereas a guarantee which extends to a series of transactions is called an (ii)__________guarantee.

(i). Specific, (ii).Continuing

Hassan advanced a loan of USD 50,000 to Halima. Juma, Halima's boss promised that in case Halima failed to repay the loan, he would repay the same. In this case of a contract of guarantee, Hassan is the (i)______, Halima is the (ii) _______, and Juma is the (iii). _______.

(i).Creditor,(ii).Principal Debtor,(iii).Surety

Outline eight(8) characteristics of a contract of guarantee.

Characteristics of a contract of guarantee.

Which of the following is not a party to a contract of guarantee?

Creditor
Principal debtor
Indemnifier
Surely/Guarantor

_______ refers to a contract to perform the promise or discharge the liability of the defaulting party in case he fails to fulfill his promise.

Contract of guarantee

Indemnity can be defined as:

A formal assurance (typically in writing) that certain conditions will be fulfilled, especially that a product will be repaired or replaced if not of a specified quality.
Refund that is paid to business persons in case their products are damaged.
Protection against damage to property that an insurance company promises to offer.
Security or protection against a financial liability occurs in the form of a contractual agreement made between parties in which one party agrees to pay for losses or damages suffered by the other party.

Tabora Limited purchased a tile manufacturing machine on hire purchase from Diamond Limited on January 1, 2020, paying USD 200,000 immediately and agreeing to pay four annual installments of USD 100,000 each on December 31, every year. The cash price of the machine is USD 350,000, and the vendors charge interest @ 5% per annum. Calculate the following:
i. Hire purchase price.
ii. Total interest paid.

i. Hire purchase price. ii. Total interest paid.

In reference to hire purchase agreements, which of the following statements is/are not true?

The payment of the installments is to be done by the buyer i.e., the hirer to the seller over the specified period of time.
Buyer gets the possession and ownership of the goods immediately.
In case of any default of installment payment by the hirer, the vendor has the right to repossess the goods. In that case, the payment already received by the vendor from hirer will be treated as hire charged for the period for which the goods were held.
The ownership of goods is transferred to the buyer upon the payment of deposit
The hire purchase installment amount includes the principal amount as well as the interest charged upon it.
Interest is generally charged on the flat rate.

__________refers to temporary postponement of the payment of an outstanding bill or debt, usually involving repayment by installments.

Credit sale
Conditional sale
Instalment system
Deferred payment

TRUE or FALSE: In a conditional sale agreement, the buyer gives you the option to own the item at the end of the agreement, whereas, in a hire purchase agreement, the buyer automatically owns the item once the finance has been repaid in full.

True
False

In reference to contracts, (i) ______ bailment is a type of bailment whereby the bailor transfers possession of property to the bailee on the basis that no compensation is to be paid, whereas under a (ii)______ bailment, the bailer does something for bailee to get something in return and after the accomplishment of the purpose, the bailee will pay him back and will also return his goods too.

(i). Gratuitous, (ii). Non-Gratuitous

TRUE or FALSE: A bailor has a duty to compensate the bailee for breach of warranty.

True
False

Which of the following is not a duty of a bailee ?

Take proper care of goods and not to make unauthorized use of the goods.
Keep any increase/additions or profits
Keep goods separate and not set adverse title
Return Goods after fulfilment of their purpose

TRUE or FALSE: In a hire purchase, the ownership of the goods is passed to the purchaser as soon as the credit sale agreement is made, even if the purchaser has not made any payment yet, whereas in a credit sale, the ownership of the goods is not passed until the hirer has fully paid the price as agreed upon in the hire purchase agreement.

True
False

The following are the obligations of the hirer in a hire purchase agreement. Which is not true?

To pay the hire installment
To take reasonable care of the goods (if the hirer damages the goods by using them in a non-standard way, he or she must continue to pay the installments and if appropriate, recompense the owner for any loss in asset value)
To inform the owner where the goods will be kept.
A hirer can sell the products third party after payment of two thirds of the hire purchase price.

In reference to the hire purchase agreement,(i)________refers to a requirement or event that should be performed before the completion of another action, whereas a (ii)__________is an assurance given by the seller to the buyer about the state of the product, that the prescribed facts are genuine.

(i). Warranty, (ii). Condition
(i). Contract, (ii). Insurance
(i). Condition, (ii). Warranty
(i). Insurance, (ii). Contract

Highlight six(6) implied terms in every hire purchase agreement.

Implied terms in every hire purchase agreement.

Which of the following statements about the hire purchase agreement is/are not true?

The owner hires goods to the hirer with an option to purchase the goods when he has made the payment of a certain sum.
The hirer does have an option to return the goods during the period of hire as only the owner can cancel the agreement.
The purchaser who is unable to pay the full price of the asset at one lump sum, gets facilities to acquire an asset and after making the payment of an initial amount called premium, the purchaser pays the balance consideration money in installments.
The hirer may elect to purchase the goods and when he does so, after he fulfills all the conditions prescribed in the agreement, the title to the goods will pass to him.
The property in the goods passes to the hirer on payment of deposit.
It is a form of bailment where the hirer is given the option t to purchase the goods on certain conditions.
The hirer has an option to return the goods during the period of hire
The hirer does not have the right to terminate the agreement for hire and is bound to pay the value of the goods.

TRUE or FALSE: When the hirer is given time to exercise the option to purchase the goods within a stated period and he does not exercise the option within the said period, the agreement comes ends.

True
False

Outline three(3) ways in which a hirer in a hire purchase contract might terminate a hire purchase agreement under CAP.507.

Ways in which a hirer in a hire purchase contract might terminate a hire purchase agreement under CAP.507.

1he deal in which one party can use the asset of the other party for the payment of equal monthly installments is known as (i)__________, whereas an agreement where one party buys the asset and allows the other party to use it by paying consideration over a specified period is known (ii)_________.

i. Hire Purchase, ii. Leasing

Ex-works contracts can be defined as:

A shipping arrangement in that requires a seller to deliver goods to a buyer at an agreed port of arrival and the seller assumes all transport costs.
An agreement under which the purchaser pays the shipping cost from the factory and is responsible if the goods are damaged while in transit
A shipping arrangement in which a seller makes a product available at a specific location, but the buyer has to pay the transport costs.
An agreement whereby the seller must arrange for goods to be delivered to a designated port and next to a specific vessel for easier transfer.

Highlight three(3) cases under which transit ends according to the Sale of Goods Law.

Cases under which transit ends according to the sale of goods law.

________refer to a stipulation collateral to the main purpose of the contract and the breach of which gives rise to a right to claim for damages, but not to a right to reject goods and treat the contract as repudiated

Condition
Disclaimer
Terms of contract
Warranty

TRUE or FALSE: In reference to a lien as a right of an unpaid seller, the lien is exercisable where the goods have been sold on credit but the terms of credit have expired.

True
False

________refers to goods whose existence is dependent on the future uncertain event/ contingent event.

Future goods
Contigent goods
Ascertained goods
Specific goods

Highlight three(3) rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer.

Rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer.

Outline three(3) conditions where a contract of sale of goods is/are void under sale of goods Act.

3 conditions where a contract of sale of goods is/are void under sale of goods Act.

With reference to the sale of goods contract, highlight six(6) differences between a sale and an agreement to sell.

Dfferences between a sale and an agreement to sale

Under _________ contracts, the seller has to deliver the goods to the buyer at the port of destination, but the property in the goods does not pass until actual delivery, and the goods are at the seller's risk during the voyage

Free on board (FOB).
Free alongside ship (FAS).
Cost, Insurance, and Freight (CIF).
Ex-ship.

TRUE or FALSE: Where there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained.

True
False

Which of the following statements is not true about sale of goods by auction?

If the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the seller.
If the goods are put up for sale in an auction in lots, each lot is deemed to be a subject of a separate contract of sale.
A right to sell may be reserved expressly by the seller. In such a case, the seller or any one person on his behalf may bid at the auction
When the auctioneer announces its completion by the fall of the hammer or in some other customary manner, the sale is considered complete. Until such an announcement, any bidder may revoke his bid.

TRUE or FALSE: In an auction, if the reserve price is not met, the seller can sell the item to the highest bidder.

True
False

Highlight the remedies for an unpaid seller when goods are in the seller’s possession and when goods have been delivered

Remedies for an unpaid seller

Fahari sold some goods to Salome for USD 20,000 and received a cheque. On presentation, the cheque was dishonored by the bank. Salome is an:

Unpaid seller

In a sale of goods, “quid pro quo” describes:

An agreement between two or more parties in which there is a reciprocal exchange of goods or services.

Contract of sale of goods can be defined as:

A legal contract that outlines the terms of trade between parties.
A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration
An agreement where the buyer makes a down payment and pays the balance plus interest in installments.
An agreement memorializes what the donor expects with respect to their gift and what the organization receiving the gift commits to providing.

In contract law,_______ means there has been a meeting of the minds of all parties involved and everyone involved has accepted the offered contractual obligations of each party.

Consensus ad idem

(i) ________privity can be brought up if benefits in a contract are given to another party that is not a party to the contract, whereas,(ii) ________privity may be raised when another contract is made arising from one of the parties to another contract.

(i).Horizontal,(ii).Vertical

TRUE or  FALSE: Any contract with privity but without consideration is valid.

True
False

TRUE or FALSE: The principle of privity of contract helps to protect third parties to a contract from lawsuits arising from that contract.

True
False

The doctrine of _______of contract prevents a person who is not a party to a contract from enforcing a term of that contract, even where the contract was made for the purpose of conferring a benefit on the third party.

Privity

What are the three(3) things that are required for a consideration to uphold validity?

Things that are required for a consideration to uphold validity

TRUE or FALSE: Without consideration, a promise does not have any legal obligations.

True
False

The phrase (i) .______ means let the buyer beware, whereas(ii). ________ means seller beware.

(i).Caveat emptor,(ii). Caveat venditor

Any legal interest in the premises that is not terminable at the will of the landlord or at the time the tenant is entitled to take possession is referred to as:

Paramount title

A contract is one in which the parties have performed their duties under the contract is referred to as (i)_________, whereas a contract is one in which the parties have not yet performed their obligations under the agreement is referred to as (ii)_______.

(i). Executory, (ii). Executed
(i). Voidable, (ii). Void
(i). Executed, (ii). Executory
(i). Void, (ii). Voidable

Highlight six(6) differences between conditions and warranties.

The differences between conditions and warranties

TRUE or FALSE: A leasing agreement is an example of an implied contract, whereas a sale by fall of the hammer in an auction is a good example of an express contract.

True
False

An (i)______contract refers to a contract where the proposal and acceptance, leading to the contract, is expressed non-verbally ( i.e. through other means), whereas an (ii)________ contract is one in which the proposal and acceptance, that results in an agreement, enforceable by law, is expressed verbally.

(i).Express,(ii).Implied

TRUE or FALSE: A promise that has been made as a result of past consideration cannot be enforced in a court of law. However, a promise to pay a debt that was eliminated by bankruptcy is enforceable.

True
False

Highlight eight(8) circumstances that might result in a contract being frustrated.

The circumstances that might result in a contract being frustrated.

A contract is (i)______when all of the elements essential to forming a legal contract are present, whereas (ii) ________contract can be enforced in a court of law.

(i).Valid,(ii).Enforceable

TRUE or FALSE: A landlord forcing a tenant to sign a contract forbidding medically necessary companion animals such as seeing eye dog is an example of an unenforceable contract (deemed centrally to public policy).

True
False

(i)______ is an untrue defamatory statement that is made in writing, whereas,(ii) ______ is an untrue defamatory statement that is spoken orally.

(i). Libel,(ii). Slander
(i). Defamation,(ii). Insult
(i). Disparagement,(ii). Lies
(i). Slander,(ii). Libel

The_________Act(Cap.34) defines the liability of an occupier of premises for injury to persons or damage caused to goods and resulting from actions or omissions of the occupier in respect of the occupied property.

Occupiers liability

TRUE or FALSE: The maxim of ''volenti non-fit injuria ''will not apply when the act relied upon is done because of the psychological condition that the defendant’s breach of duty had induced.

True
False

________ occurs when a person uses or alters a piece of personal property belonging to someone else without the owner's consent.

Conversion

Which of the following are not all examples of an intentional tort?

Trespass to land, Battery, and False imprisonment
Infliction of emotional distress and Assault.
Deceit, Sloth, and Envy.
Trespass to chattels and Conversion.

The ________rule holds that ,where there has been an escape of a dangerous thing in the course of a non-natural use of land, the occupier of that land is liable for the damage to another caused as a result of the escape, irrespective of fault.

Donongue vs Stevenson (1932)
Ryland vs Flecture (1868)
Bourhill vs Young (1943)
Nettleship vs Weston (1971)

TRUE or FALSE: A person employing an independent contractor might be held liable for the contractor’s torts where the work to be done is statutory in nature.

True
False

TRUE or FALSE: If an employee takes a defamatory statement written on a note in an employee's file and shows it to people around the office, the courts may not compensate her/him for the defaming statements as the publication was entirely her/his own doing.

True
False

TRUE or FALSE: Libel and slander are forms of defamation.

True
False

As a victim of negligence, Luka has been advised that he must prove any wrong caused by the negligent behavior or a failure to practice due diligence. Because the duty of care is not executed correctly, with examples, highlight the essentials that Luka must prove.

The essentials that Luka must prove.

A home care nurse not providing a patient with food or water for several days is an example of _________negligence.

Contributory
Gross
Comparative
Vicarious

Mercy’s neighbor, Juma, constantly plays loud music in his house throughout the night. The noise has been interfering with her sleep, but despite asking him to lower the volume. Uma has refused. Mercy wants to sue under the theory of private nuisance. As the plaintiff, outline three (3) issues that Mercy must proof.

Issues that Mercy must proof

The tort of private nuisance :

Protects a person from being sued by his/her neighbors
Provides a defense for deliberately causing public nuisance on one’s private property.
Enables neighbors to use each other’s property anytime.
Protects a person\'s right to use and enjoy his or her property.

In the law of tort, one of the defenses available in defamation is privilege. Which of the following is not an example of absolute privilege defense?

Actions and statements made by legislators during debates and in the course of their legislative work.
Judicial proceedings (judges, lawyers in court)
Political speech and ads
Communication between spouses.

TRUE or FALSE: An absolute privilege protects the speaker even if the speech is false and malicious, whereas a qualified privilege is no protection against actual malice.

True
False

What are the 4D’s of medical malpractice?

Duty, Defense, Damages, and Defective.
Default judgment, Duty, Deficiency, and Duty.
Duty, Deviation, Damages, and Direct Cause.
Damage, Dangerous, Defamation, and Direct Cause

Malia was attacked by Suleiman and believing she was in imminent danger, used reasonable force to defend herself. In the process, she broke Suleman's arm and Suleiman sued her. What type of general defense can Malia apply?

Volenti non-fit injuria
Private/Self defence
Statutory authority
Special defence

Mateso went shopping at Maneno supermarket. However, due to the slippery floor at the supermarket, she slipped and fell, injuring her limbs. Mateso is aggrieved and seeks compensation from Maneno supermarket.
Mateso believes the supermarket was negligent and should have put a notice warning its customers about the slippery floor. She also believes she can be relieved by the doctrine of res ipsa liquitur, which holds that:

The defendant should have foreseen the accident and taken due care.
The occurrence of any accident is sufficient proof even if the plaintiff was negligent.
If a plaintiff should have foreseen the accident and taken due care
The mere occurrence of some types of accidents is sufficient to imply negligence (the facts speak for themselves)

In reference to general defense in tort, volenti non-fit injuria holds that :

A person who voluntary consents to a particular act cannot also claim that the same act is an intentional tort.
A person who knowingly and voluntary risks danger cannot recover for any resulting injury.
No action can result from an illegal act.
An inevitable accident is a general defense in the law of tort

Highlight ten(10) differences between tort and contract.

The differences between tort and contract

Tort law is the branch of the law that deals with civil suits, with the exception of disputes involving :

Breach of contracts

A document that outlines in detail the rights and responsibilities of all parties to a business operation is known as :

Partnership deed

Which of the following is not a feature of an unincorporated association?

All such association s must have at least two members
It is not a legal entity.
Members of the association cannot be held liable for one another
The members of such an association may change from time to time like any other incorporated corporation
It is a separate legal entity and can therefore act in its own name.
They are general small or informal community organizations.

In relation to the law of persons, ______refers to an association of workers in a particular trade, industry, or company created to secure improvements in pay, benefits, working conditions, or social and political status through collective bargaining

Society
Trade union
Workplae forum
Employer association

TRUE or FALSE: Private companies are exempted from holding a statutory meeting, while in the case of public companies, the same is mandatory.

True
False

In reference to legal persons, human beings are examples of (i).________persons, whereas companies, firms, and institutions are examples of (ii)._________persons.

(i). Natural , (ii).Artificial

TRUE or FALSE: A person can acquire nationality by subjugation or by cession.

True
False

In reference to the law of persons, (i)______refers to the legal relationship that exists between the nation and the individual, whereas (ii) _______ denotes the country that a person treats as their permanent home or lives in and has a substantial connection with.

(i). Nationality, (ii). Domicile

TRUE or FALSE: Paying a widow of a deceased partner annuity by way of a portion of the profits made by the business in which the deceased was a partner creates a new partnership with the widow.

True
False

Which of the following  are elements that must coexist in order to constitute a partnership?

There must be a contract/agreement.
There must an association of two or more persons
There must be a minimum of two members and a maximum of 200 members
The persons must agree to carry on business
The liability of the partners must be limited.
There must be sharing of profits
The business must be carried out by all or any of them acting for all.
They must have a minimum paid -up capital of kshs 100,000.

The ability to have legal rights and duties (e.g. sue & be sued) within a certain egad system is known as:

Legal personality.

According to the constitution of Kenya, a person can acquire citizenship in Kenya in several ways. Highlight three(3) ways of acquiring Kenyan citizenship.

TRUE or FALSE: In Kenya, citizenship can be lost through marriage or the dissolution of marriage.

True
False

In relation to the law of persons, highlight eight(8) differences between a company and a cooperative society.

Differences between a company and a cooperative society.

The Railways company of Kenya, KPLC and Kenya Tea Development agency are examples of :

Corporation aggregates.
Statutory corporations.
Corporation soles.
Government bodies.

TRUE or FALSE: Under a cooperation sole, only one person may occupy the position at any point in time, whereas a corporation aggregate has multiple members at any given time.

True
False

In reference to the law of persons, a (i). ________ refers to the group of people who unite to form one body under a special denomination, whereas, a (ii). _______refers to a person who represents an official position which has a single separate legal entity, and (iii). ______ refers to a public enterprise formed by a special Act of the parliament.

i. Corporation aggregate.ii. Corporation sole.iii. Statutory corporation.

The superior courts of Kenya consist of:

The Supreme Court, Magistrates’ courts, High Court, Environment and Land Court, and Court of Appeal.
The Court of Appeal, Court Martial, Tribunal Court-Supreme Court, Employment & Labor Relations Court, and High Court.
The Supreme Court, Kadhis Court, Court of Appeal, Court-martial, and High Court.
The Supreme Court, Court of Appeal, High Court, Employment and Labor Relations Court, and Environment and Land Court.

The Court of Appeal of Kenya is established under Article (i)_______of the constitution of Kenya and consists of several judges, being not fewer than (ii).________.

(i).164,(ii).12

Which of the following is not true about of administrative tribunals?

They are similar to sub-ordinate courts or superior courts.
They offer cheaper and simplified procedures.
They offer efficacy and speed of justice
They are flexible, thus adaptable to different situations

TRUE or FALSE: The Environment and Land Court is a superior court that has the same status as the high court.

True
False

Which of the following disputes are not under the jurisdiction of the Industrial court in Kenya?

Disputes between employer and employee.
Disputes between employer and trade unions.
Registration of Collective Bargaining Agreements (CBAs).
Disputes relating to environmental planning and protection.

List four (4) classes of courts subordinate to the High Court established by the Magistrate Court.

The classes of courts subordinate to the High Court established by the Magistrate Court.

Which of the following responsibilities is/ are not under the jurisdiction of the Supreme Court of Kenya?

The determination of the validity of a declaration of a state of emergency.
Determination of all criminal and civil matters.
Determination of cases concerning the violation and or infringement of the Bill of Rights.
The hearing of appeals on cases that have been concluded by the court of appeal.
The hearing and determination of appeals from any other court or tribunal as prescribed by the national legislation.
The hearing of appeals from subordinate courts and tribunals.
Issues advisory opinions on matters concerning the County Governments, in any cases involving the interpretation or application of the Constitution and in matters of general public importance.
Exercises supervisory jurisdiction over the subordinate courts and any person, body, or authority exercising a judicial or quasi-judicial function.
The determination of the validity of a declaration of a state of emergency.
The hearing and determining presidential election disputes.

The Supreme Court comprises of the (i).______, who is the President of the Court, the (ii)______who is the Vice-President of the Court, and (iii)._____other Judges.

 

i. Chief justiceii. Deputy chief justiceiii. Five

TRUE or FALSE: The Supreme Court in Kenya is established under Article 163 of the Constitution.

True
False

In reference to employment and labor relations, which of the following matters are/is not handled by the magistrates' courts under Gazette Notice No. 6024 (2018)?

Trade disputes under the Labor Relations Act, 2007.
Offences under the Employment Act, 2007 & under the Labor Relations Act, 2007.
Offences under the Labor Institutions Act, 2007.
Offences under Occupational Safety and Health Act, 2007 & and Work Injury Benefits Act, 2007.

Highlight six(6) types of disputes that fall under the jurisdiction of the environmental and land court in Kenya in accordance with Article 162(2)(b) of the Constitution

The types of disputes that fall under the jurisdiction of the environmental and land court in Kenya in accordance with Article 162(2)(b) of the Constitution

TRUE or FALSE: The Environment and Land Court in Kenya is a superior court that has the same status as the high court.

True
False

Outline three(3) grounds under which a judge of a superior court may be removed from office.

The grounds under which a judge of a superior court may be removed from office.

Highlight the powers of the Court of Appeal in Kenya.

The powers of the court of appeal

TRUE or FALSE: In Kenya,the removal of a judge can be initiated only by the Judicial Service Commission acting on its motion or the petition of any person to the Judicial Service Commission

True
False

_______ refers to bodies established by Acts of Parliament to exercise judicial or quasi-judicial functions to supplement ordinary courts in the administration of justice.

Administrative tribunals

The following are questions that might be heard by the high court under its jurisdiction to hear matters in respect of the interpretation of the constitution in Kenya. Which is/are not true?

Any constitutional relationship between the national and the county government
Whether anything said to be done under the authority of the constitution or any law is inconsistent with the constitution.
Whether anything said to be done under the authority of the constitution or any law is inconsistent with the constitution.
Whether there are any matters that relate to conflict of laws made by the county assemblies and those of the National assembly.

In natural justice, Nemo Judex in causa sua means that__________.

No person should be condemned unheard
Procedures must be free from bias.
Equality must be observed.
Constitution is respected and upheld.

TRUE or FALSE. An arbitration award may be reviewed by the court if the arbitrator was biased or there was fraud in the process

True
False

In reference to administration tribunals, which of the following statements is/are false?

As many of the members of the panel are selected from different walks of life with no or little legal background, they may lack the requisite legal expertise to adjudicate disputes.
As most of the members of the administrative tribunals are at the same time employees of the various offices or agencies, they are free from bias and partiality towards the agency.
Administrative adjudication is cheaper than court adjudication.
Administrative adjudication is more convenient and accessible to individuals compared to ordinary courts.

_________is a doctrine of constitutional law under which the three branches of government (executive, legislative, and judicial) are kept separate.

Separation of powers.

In Kenya, on the petition of any person, the President may exercise the power of mercy in accordance with the advice of the Advisory Committee established under clause (2), in several ways. Highlight three(3) ways in which this may happen.

Ways in which the President may exercise the power of mercy

Quo warrant can be defined as:

A writ or legal action requiring a person to show by what warrant an office or franchise is held, claimed, or exercised.
A writ issued primarily to prevent an inferior court or tribunal from exceeding its jurisdiction in cases pending before it or acting contrary to the rules of natural justice.
A writ requiring a person under arrest of illegal detention to be brought before a judge or into court, especially to secure the person\'s release unless lawful grounds are shown for their detention.
A writ that is applicable to the private offices only and not to public offices.

In the application of judicial review, a (i).________refers to a writ issued by the Supreme Court or any High Court for quashing the order already passed by an inferior court, tribunal, or quasi-judicial authority, whereas a (ii). _________refers to a writ issued as a command to an inferior court or ordering a person to perform a public or statutory duty.

(i) Certiorarim , (ii).Mandamus.
(i).Cetiorari , (ii).Prohibition.
(i).Habeas corpus , (ii).Mandamus.
(i).Prohibition, (ii).Hebeas corpus.

TRUE or FALSE: In Kenya, an arbitration clause requires the parties to resolve their disputes through an arbitration process and binds the parties to a type of resolution outside the courts.

True
False

In reference to alternative dispute resolution,(i)_________is a method of dispute resolution in which parties settle their conflict and reach an agreement through discussion, whereas (ii)_________is a method of dispute resolution in which an independent third party assists the parties to conflict in resolving their disputes.

(i). Arbitration, (ii).Negotiation.
(i). Litigation,(ii). Mediation.
(i). Negotiation, (ii).Mediation.
(i). Mediation, (ii).Arbitration.

In reference to arbitration,_________arbitration refers to when parties to a contract agree to resolve future disputes via binding arbitration rather than in court or otherwise.

Contractual arbitration

TRUE or FALSE: If an arbitration award is outside the agreement, it is void, and since a void award cannot be severed from the rest of the award, the whole award is void.

True
False

Which of the following is not one of the ways disputes might be referred to arbitration?

By order of the court/judiciary
By consent of the parties
By stipulation
By order of the police.

TRUE or FALSE: In Kenya, the legislature makes the laws; the executive puts the laws into operation; and the judiciary interprets the laws.

True
False

Administrative law can be defined as:

The branch of law regulates and governs the relations of citizens with each other.
The law relating to the performance, management and execution of public affairs and duties
The supreme law of a country.
The system of law concerned with private relations between members of a community rather than criminal, military, or religious affairs.

Highlight three(3) functions of judicial review.

Functions of judicial review

The two(2) rules of natural justice are:

The rule to follow the law and the rule of equity.
The rule to justice and the right to legal aid.
The rule against bias and the rule of the right to a fair hearing.
The rule against delay and the rule to equality.

TRUE or FALSE: Under the Bill of Rights in Kenya, the constitution outlaws abortion unless it is advised by a legally recognized medical practitioner to save the life of the mother or permitted under other circumstances like rape.

True
False

Which of the following is/are not rule(s) that govern the application for stare decisis ?

The following are rules that govern the application for stare decisis. Which is not true ?.
It obligates courts to follow historical cases when making a ruling on a similar case.
It obligates that cases follow the precedents of other similar cases in similar jurisdictions.
A subordinate court of appeal shall not be bound by a previous decision of its own

________ is a legal doctrine that obligates courts to follow historical cases when making a ruling on a similar case.

Stare decisis

TRUE or FALSE: A Local custom need not conform with statutory law before it can be recognized by the courts in Kenya.

True
False

Under delegated legislation,(i)______ are regulations made by government departments,(ii) _______are made by county governments and local authorities, or public corporations, and (iii)________are issued by Cabinet Secretaries

 

 

i. Statutory Instrumentsii. By Lawsiii. Legal notices

__________refers to law made by an executive authority under powers given to them by primary legislation in order to implement and administer the requirements of that primary legislation.

Delegated

Which of the following statements is not true about Islamic law in Kenya?

It can only be relied upon in proceedings in which all parties profess Islam faith.
It can be relied upon in the determination of both common law and civil cases
It is difficult to reconcile with the fundamental principles of democracy
It makes it to resolve cases where both parties adhere to Islam faith

In reference to precedents, define the following terms:
i. Original precedent
ii. Declaratory precedent
iii. Binding precedent
iv. Persuasive precedent
v. Distinguishing precedent

i. Original precedentii. Declaratory precedentiii. Binding precedentiv. Persuasive precedentv. Distinguishing precedent

_________refers to law as established by the outcome of former cases

Case law

TRUE or FALSE: In reference to maxims of equity, "Equity looks to form rather than intent".

True
False

Which of the following statements about using judicial precedents as a source of law is false ?.

Strict application of the judicial precedent makes the legal system inflexible and unresponsive to changes.
Case law is bulky and complex as many decisions have been made and there is no index. as to which of the are precedents in what cases, thus challenge in extracting the ratio decidendi.
Case law makes the legal system uncertain and unpredictable.
Case law facilitates consistency and uniformity in the administration of justice as similar cases are decided in alike.

When does a court of law declare delegated legislation substantially ultra vires?

When a court of law declare delegated legislation substantially ultra vires

In reference to Acts of Parliament as a source of law, which of the following statements is/are not true?

It is the process of passing bills into laws is quick and time saving
It is democratic as it reflects the wishes of those who are represented and what the law should be
Some Acts imposed on the people reflect the views of the executive or the ruling party.
It enables the parliament to find legal solutions to any problem that the country may face by passing new acts or amending existing ones.

The statements a lawyer tells the jury in a criminal case to convince them of his/her client's innocence are examples of (i) _________, whereas a unanimous decision held/reached by the Supreme Court judges that secularism is one of the basic structures of the constitution of Kenya is an example of (ii)_______.

(i). Ratio decidendi,(ii). Obiter dicta.
(i). Obiter dicta,(ii). Ratio decidendi.
(i). Obiter dicta,(ii). Defense arguments.
(i). Defense arguments,(ii). Ratio decidendi.

List six(6) branches of civil law.

The branches of civil law

An offense relating to a criminal act which has not, or not yet, been committed is called:

Inchoate offence
Felony offence
Misdemeanors
Strict liability offence

Plaintiff and defendant are the main parties in a (i).______case, whereas, prosecution and defense are the main parties in (ii) ______.

(i).Civil,(ii).Criminal

TRUE or FALSE: Legal wrongs are acts that are contrary to the rule of legal justice and violation of the law, whereas moral wrongs are acts that are contrary to the rule of natural justice.

True
False

Highlight four(4) differences between common law and equity.

The differences between common law and equity.

___________refers to a written law produced by Parliament which originates from decisions made in other courts and the country's written constitution

Statute law

Outline five(5) types of punishments that might be inflicted in the Kenyan court of criminal law.

Types of purnishments

TRUE or FALSE: While sanctions are invariably imposed for the infringement of a legal obligation, there is no official legal sanction for immoral behavior.

True
False

Highlight eight(8) characteristics of law.

Characteristics of law

In reference to criminal and civil law, which of the following statements is/are not true?

Civil laws are applied when an individual has had his or her rights violated or when individuals have disputes with other individuals or organizations, whereas criminal laws are applied when an individual is convicted of crimes like arson, assault, and theft.
In criminal court, it is the responsibility of the state/prosecutor to prove that the defendant undoubtedly committed the crime, whereas in civil court, the burden of proof falls on the plaintiff, who must prove that it is more likely the defendant was responsible for the problem than not.
In a civil case, potential punishment includes incarceration/jail, probation, and fines, whereas in a criminal case, the defendant found guilty is ordered to pay damages in monetary form to the plaintiff or ordered to do or not to do something.
A defendant in a criminal case is entitled to an attorney and if he/she cannot afford one, the state must provide one, whereas in a civil case, the defendant is not provided with an attorney and must pay for one or offer self-defense.

In law, remedies are concerned with the character and extent of relief to which an individual who has brought a legal action is entitled once the appropriate court procedure has been followed, and the individual has established that he or she has a substantive right that has been infringed by the defendant. ________damages are imposed upon the defendant to punish or deter her/him, rather than to compensate the plaintiff.

Compensatory
Punitive
Restitution
Coercive

TRUE or FALSE: The law of torts is an example of private law.

True
False

Which of the following is not an example to public law?

Constitutional law
Criminal law
Property law
Administrative law

The body of rules that determines the rights and obligations of individuals and collective bodies is called:

Substantive law
Procedural law
Civil law
Civil law

Law can be defined as:

The ethical code of conduct for a human being.
The moral principles that govern a person\'s behavior or the conducting of an activity.
The set of rules and regulations enforced by the state to regulate the human behavior in society.
A body of fundamental principles or established precedents according to which a state or other organization is acknowledged to be governed.

Discuss the concept of ‘supremacy of the constitution’.

The concept of ‘supremacy of the constitution’.

TRUE or FALSE: While sanctions are invariably imposed for the infringement of a legal obligation, there is no official sanction for immoral behavior in Kenya.

True
False

Highlight the three(3) distinct conceptions of the rule of law according to Dicey.

3 distinct conceptions of the rule of law according to Dicey.

TRUE or FALSE: In reference to maxims of equity, ’Equity looks to form rather than intent’.

True
False

19Citing examples, highlight the factors that a court might consider when applying a judicial precedent under Kenyan Law.

The factors that a court might consider when applying a judicial precedent under Kenyan Law.

List seven (7)) sources of law identified by the Judicial Act in Kenya.

The sources of law identified by the Judicial Act in Kenya.

Define the following classifications of Sources of law in Kenya.
i. Principal sources
ii. Subsidiary sources

i. Principal sources ii. Subsidiary sources

The constitution creates the principal and other organs of the government. Outline three(3) bodies and offices created by the Constitution.

Bodies and offices created by the constitution

Which of the following is not a right guaranteed by the Constitution in Kenya?

The right to life .
The freedom assembly, demonstration, picketing and petition
The right to property and protection of the law
The right to liberty.

A ________bill seeks to introduce or amend law applicable in some parts of Kenya or regulate a specific group of persons.

Private

Outline the four (4) stages of the law-making procedure in Kenya.

The 4 stages of the law-making procedure in Kenya

Highlight three(3) advantages and disadvantages of statute law.

4 advantages and disadvantages of statute law.

Explain seven(7) )freedoms guaranteed by the Bill of Rights found in the constitution of Kenya.

7 freedoms guaranteed by the Bill of Rights found in the constitution of Kenya.

Highlight four(4) reasons for Parliament to delegate law-making process powers to other persons and bodies.

4 reasons for Parliament to delegate law-making process powers to other persons and bodies.

TRUE or FALSE: Parliament and courts of law can control delegated legislation.

True
False

Define the following tears and provide examples.
i. Substantive ultra vires
ii. Procedural ultra vires

i. Substantive ultra vires ii. Procedural ultra vires

TRUE or FALSE: Failure to comply with the rules of natural justice is that any decision or other administrative action taken is null and void and can be invalidated by the courts.

True
False

The following are rules that govern the application for stare decisis. Which is not true?

It obligates that cases follow the precedents of other similar cases in similar jurisdictions.
Subordinate courts are bound by the decisions of superior courts.
A subordinate court of appeal shall not be bound by a previous decision of its own.
It obligates courts to follow historical cases when making a ruling on a similar case.

Under delegated legislation, statutory instruments are regulations made by (i)._______, by-laws are made by (ii).________ or public corporations, and legal notices are issued by (iii)._________.

i. Government departments.ii. Governments and local authorities.iii. Cabinet Secretaries.

A legal doctrine that obligates courts to follow historical cases when making a ruling on a similar case is called:

Stare decisis

In reference to jurisdiction,(i).__________jurisdiction refers to the power of a court to hear a case at the first instance,(ii)._______jurisdiction refers to the power of a court to hear cases on appeal, (iii)._______--jurisdiction refers to the power of a court to hear or entertain criminal or civil cases from within a defined geographical area (judicial district), and (iv)._____jurisdiction refers to the power of a court to entertain civil cases whose value of the subject does not exceed the specified monetary value.

i. Originalii. Appellateiii. Territorial iv. Pecuniary

Outline three(3) conditions under which Puisne judges sit alone.

3 conditions under which Puisne judges sit alone

List the four(4)courts under the subordinate courts in Kenya.

Courts under the subordinate courts in Kenya.

The diagram below describes the structure and hierarchy of the court system in Kenya. Fill in the courts represented by letters A, B, C, and D.

The Structure And Hierarchy Of The Court System In Kenya

A. Supreme CourtB. Court of AppealC. High CourtD. Subordinate Courts

Highlight five(5) sentences that the court-martial has the power to impose.

Sentences that the court-martial has the power to impose.

Highlight three (3) ways by which an incorporated association may be brought into existence.

3 ways by which an incorporated association may be brought into existence.

Highlight five(5) differences between natural persons and artificial persons.

Differences between natural persons and artificial persons.

Highlight three (3) classifications of companies according to the liability of members.

Classifications of companies according to the liability of members.

TRUE or FALSE: In a public company, shares may be transferred only by the consent of all members.

True
False

In reference to trade unions, which of the following statements is/are true?

A registered trade union may sue or be sued under its registered name.
A trade union\'s property is vested in its trustees for the use and benefit of the union and its members and is under the control of the trustees.
A trade union is capable of entering into a contract in its name.
All of the above.

Outline eight(8) rules of tort.

Rules of tort.

Outline the elements of a contract that may make an agreement agreeable.

Eelements of a contract that may make an agreement agreeable.

Highlight six(6) exceptions to the privity principle.

Exceptions to the privity principle.

Highlight three(3)  sources of the law of contract under section 2(1) of the Law of Contract Act, Cap. 23.

Sources of the law of contract

Outline six(6) elements of a valid contract.

Elements of a valid contract

When does the risk transfer from buyer to seller under the Cost, Insurance, and Freight (CIF) agreement?

When the goods have been loaded on the vessel. The seller covers the CIF of the buyer\'s order while in transit and the buyer takes ownership once on the ship if the cargo is damaged during the transit, the buyer must file a claim with the seller\'s insurance company.

In relation to international contracts of sale, explain the free-on-board (FOB) contract.

Free-on-board (FOB) contract.

TRUE or FALSE: Under Free alongside ship (FAS) contracts, the seller is responsible for ensuring that the goods are cleared for export, while the buyer is responsible for the costs of reloading goods, ocean transportation, and insurance.

True
False

Outline three(3) conditions under which goods delivered to the buyer by approval or on sale or return or such other term, pass to the buyer (sec.20 of the Act).

Conditions under which goods delivered to the buyer by approval or on sale or return or such other term, pass to the buyer

An agency is created when:

Two or more parties manage and operate a business and share its profit.
Organizations come together to promote the business interests of their members.
A person delegates his authority to another person to act under his or her control and on his or her behalf or appoints them to do some specific job or a number of them in specified areas of work.
A commercial enterprise is undertaken jointly by two or more parties that otherwise retain their distinct identities.

Outline four(4) ways by which an agency may be terminated.

Ways by which an agency may be terminated.

Outline six(6) ways through which an agency is terminated by operation of law.

Ways through which an agency is terminated by operation of law.

TRUE or FALSE: A special agent is employed to do all acts connected with a particular employment.

True
False

An agent who sells goods in his possession and under his control on behalf of his principal is called:

Broker agent
Commission agent
Factor agent
Del Credere agent

Advocates and insurance agents are examples of:

Non-Mercantile Agents.

Highlight five(5) similarities and eight(8)differences between an agency and a trust.

Similarities and differences between an agency and a trust.

In the hire purchase agreement, there is an implied condition that the goods are of merchantable quality. Highlight three(3) conditions when this does not apply.

Conditions when this does not apply.

___________ legislation refers to law made by an executive authority under powers given to them by primary legislation to implement and administer the requirements of that primary legislation.

Delegated

TRUE or FALSE: If goods are recovered from a hirer after he/she has paid two-thirds of the price before the termination of the hire purchase agreement, the hirer is released from liability and can recover from the owner by suit all sums paid by him/her.

True
False

In reference to sources of law, highlight six(6) circumstances under which a court could refrain from applying a binding precedent.

Circumstances under which a court could refrain from applying a binding precedent.

Distinguish a credit sale from a conditional sale.

Differences between a credit sale and a conditional sale

Highlight five(5) duties of good faith under the Partnership Act (Kenya).

Duties of good faith under the Partnership Act (Kenya).

TRUE or FALSE: Under the Partnership Act No.10 of 2012 (Kenya), a partnership cannot employ a partner as an employee of the firm.

True
False

In reference to Partnerships, which of the following statements is not true?

A partnership shall be liable for loss or injury caused by the wrongful act or omission of a partner to a person who is not a partner if the loss or injury is caused by a partner acting in the ordinary course of the business of the partnership.
A partner who makes an advance to a partnership of an amount beyond his contribution to the capital of the partnership is entitled to receive interest from the partnership at the rate of three percent per annum with effect from the date of the advance where prevailing economic circumstances permit.
A partner who contributes to the capital of a partnership is not entitled to interest on the contribution.
A person may become a partner in an existing partnership with the consent of one existing partner.

TRUE or FALSE: A person who is admitted as a partner into an existing firm is liable to the creditors of the firm for anything done before he became a partner.

True
False

Outline five(5) conditions under which a person can cease to be a partner in a partnership.

5 conditions under which a person can cease to be a partner in a partnership.

TRUE or FALSE: A majority of partners in a partnership may expel a partner if the whole or a part of the partner's shares in the partnership is subject to an attachment in execution in respect of a debt that is not partnership debt.

True
False

In reference to the Partnership Act, which of the following statements is not true?

A person who ceases to be a partner does not cease to be personally liable under section 22(1) for partnership obligations incurred while a partner.
A former partner is not personally liable for any obligation incurred by the partnership if the partnership business continues to be carried on in the same partnership name; or continues to include the former partner’s in its list of partners after he has ceased to be a partner.
A partnership breaks up if the number of partners falls below three.
A general partner is liable for all debts and obligations of the partnership.

Outline eight(8) contents of a partnership deed.

Contents of a partnership deed.

Highlight three(3) liabilities of a minor partner.

Liabilities of a minor partner.

Which of the following statements is not true?

A partner is not entitled to interest on the capital subscribed by him before the ascertainment of profits.
The firm has no obligation to indemnity partners for costs incurred on the ordinary and proper conduct of the firm\'s business, as its part of their contribution.
Every partner may take part in the management of the partnership business.
All the partners are entitled to share equally in the capital and profits of the business and must contribute equally towards the losses whether of capital or otherwise sustained by the firm.

Outline two(2) ways of partnership dissolution by expiry or notice.

Ways of partnership dissolution by expiry or notice.

TRUE or FALSE: When a person deals with a firm after a change in its constitution, he/she is entitled to treat all apparent members of the old firm as still members of the firm until he has notice of the change.

True
False

Which of the following statements are/is true?

On the dissolution of a partnership or retirement of a partner, any partner may publicly notify the same and may require the other partner or partners to concur for that purpose in all necessary or proper acts, if any, which cannot be done without his or their concurrence.
After the dissolution of a partnership, the authority of each partner to bind the firm, and the other rights and obligations of the partners, continue notwithstanding the dissolution, so far as may be necessary to wind up the affairs of the partnership, and to complete transactions begun but unfinished at the time of the dissolution.
The estate of a partner who dies or who becomes bankrupt, or of a partner who, not having been known to the person dealing with the firm to be a partner, retires from the firm, is not liable for partnership debts contracted after the date of the death, bankruptcy, or retirement respectively.
All of the above.

Outline two(2) conditions under which a partner cannot recover the premium paid when a partnership is prematurely dissolved.

i. The dissolution is, in the judgment of the court, wholly or chiefly due to the misconduct of the partner who paid the premium.ii. The partnership has been dissolved by an agreement containing no provision for a return of any part of the premium.

Highlight six(6) rights of a partner where a partnership is dissolved for fraud or misrepresentation of one of the parties.

Rghts of a partner where a partnership is dissolved for fraud or misrepresentation of one of the parties.

Highlight the order applicable to the distribution of assets of the firm (including any sums) on payment of debts on the dissolution of a partnership.

The order applicable to the distribution of assets of the firm

TRUE or FALSE: When distributing settling accounts between partners after the dissolution of a partnership, losses, including losses and deficiencies of capital, shall be paid first out of capital, next out of profits, and lastly, if necessary, by the partners individually in the proportion in which they were entitled to share profits.

True
False

Highlight seven(7) disadvantages of a limited liability partnership (LLP).

Disadvantages of a limited liability partnership (LLP).

In reference to limited liability partnership(LLP), which of the following statements is/are true?

Taxation in a Limited Liability Partnership is usually on an individual level and not the entity level, hence the members in a Limited Liability Partnership are deemed self-employed and hence each partner will declare their profit and pay tax on their share of profit.
A limited liability partnership must have at least two partners and one manager. The manager must be a natural person and above the age of eighteen (18) years and can also be one of the partners.
The liability of the partners is Limited, hence a partner in the LLP is not personally liable directly or indirectly for obligations in the partnership, however individuals are liable for their own wrongful acts or omissions.
The LLP must have at least three(3) managers who are natural persons over the age of 18

Highlight six(6) differences between an LLP from an LLC.

The differences between an LLP from an LLC.

Highlight the six(6)  types of guarantees and give an example of each.

Types of guarantee and give an example of each.

TRUE or FALSE: For a deed of guarantee and indemnity to be enforceable, it must be in writing and signed by a guarantor or a person duly authorized by the guarantor.

True
False

TRUE or FALSE: Where there are multiple guarantors, their liability is normally joint, and all who have signed the guarantee may be pursued for payment of the debt in the event of a default by a company.

True
False

Define the following terms and give an example of each.
i. The express contract of indemnity
ii. The implied contract of indemnity

i. The express contract of indemnity ii. The implied contract of indemnity

Which of the following is not an example of indemnity?

Directors insurance
Reliability guarantee
Reliability guarantee
Errors and omissions insurance

Define the following terms
i. Prospective guarantee
ii. Retrospective guarantee

i. Prospective guarantee ii. Retrospective guarantee

Outline two(2)  circumstances under which a guarantee can be revoked.

Circumstances under which a guarantee can be revoked.

In reference to guarantees in business, (i) __________implies that goods are delivered for no payment but with an agreement (written or oral) that may include any security against payment discharge at a later date, whereas under(ii)._________, the surety pays the amount specified in the contract if the person to whom the guarantee is given fails to discharge the contract.

(i).Prospective Bond,(ii).Specific Guarantee
(i). Unilateral contract of commercial credit,(ii)Absolute performance bonds.
(i),Bid Bond,(ii).Letter of Credit
(i).Bank Guarantee,(ii).Retrospective Bond

__________guarantee assures the final customer that the purchased good or service sold to them meets certain quality and durability standards.

Validity
Personal
Warranty
Warranty bond

TRUE or FALSE: A person can purchase life insurance for himself/herself.

True
False

List seven (7) basic principles applicable to insurance contracts.

The basic principles applicable to insurance contracts.

Mark has a policy with ABC Insurance Company that covers USD 50,000 in property damage, and another policy with DEF Insurance Company that covers USD 75,000 in property damage. A fire damaged USD 60,000 worth of property. How much will Makao claim for insurance?

Insurance claim

Luka has found a duly signed and dated document in his pocket addressed to Sila by Stephano in the following form: “I undertake to pay you on demand or order the sum of USD 50,000 for value received’’. Luka has approached you to assist him in understanding the nature of the document.
i. Identify the name of the document
ii. Outline five(5) characteristics of the document above.

i. Identify the name of the document ii. Outline five(5) characteristics of the document above.

In reference to bills of exchange, a (i)________refers to the payee of the negotiable instrument, who is in possession of it and is entitled to receive or recover the amount due on the instrument from the parties thereto, whereas a (ii)________implies a person who obtains the instrument bonafide for consideration before maturity, without any knowledge of defect in the title of the person transferring the instrument.

i.Holder, ii.Holder in due course.

Highlight six(6) characteristics of negotiable instruments.

Characteristics of negotiable instruments.

In reference to bills of exchange, which of the following statements is not true?

A cancellation made unintentionally, under a mistake, or without the authority of the holder is inoperative.
Where a bill or any signature thereon appears to have been canceled, the burden of proof lies on the party who alleged the cancellation was made unintentionally or by mistake.
Where a bill is intentionally canceled by the holder or his agent, and the cancellation is apparent thereon, the bill is discharged.
Any party liable for a bill may be discharged by the unintentional cancellation of his/her signature by the holder or his agent.

Under the Land Act,2012 (Kenya), the land is classified into:

The classification of land

TRUE or FALSE: In Kenya, freehold land and leasehold land over 99 years cannot be held by a non-Kenyan citizen.

True
False

In reference to the Land Act 2012 in Kenya, highlight ten(10) components of public land.

Components of public land.

When does an infringement of copyright occur?

Infridgement of copyright

List five (5) rights that a copyright owner authorizes or prohibits.

Rights that a copyright owner authorizes or prohibits.

A right of way (ROW) over the land of another is referred to as (i)_______, whereas a right amounting to an interest allowing for restriction of another’s land is referred to as (ii)_______.

i.Wayleave, ii.Easements.

In reference to the law of property, define the term easement and outline four(4) conditions that a valid easement must satisfy.

Conditions that a valid easement must satisfy.

Highlight four(4) ways in which an easement can be created.

Ways in which an easement can be created.

TRUE or FALSE: A freehold title deed generally has no restriction as to the use or occupation.

True
False

The property owner has the right to receive compensation for a trespass that occurs on their land. Outline five(5) damages that the property owner can be compensated for.

5 damages that the property owner can be compensated for.

Highlight four(4) defenses in an action for trespass to land.

Defenses in an action for trespass to land.

Define the following terms.
i. An easement appurtenant
ii. An easement in gross

i. An easement appurtenant ii. An easement in gross

In relation to servitudes on land, highlight six(6) differences between easements and licenses.

Differences between easements and licenses.

Distinguish between real property and personal property.

The difference between real property and personal property.

Explain the meaning of the following terms:
i. Copyright infringement
ii. Simple Mortgage
iii. Foreclosure
iv. Mortgage by conditional sale

 

i. Copyright infringementii. Simple Mortgageiii. Foreclosureiv. Mortgage by conditional sale

Mathayo wishes to lease out his business premises to Ally. Advise Moses on five(5) implied terms on the part of the lessee.

The implied terms on the part of the lessee.

List the four(4) unities of a joint tenancy.

Unities of a joint tenancy.

Highlight eight(8) ways in which leases might be terminated.

Ways in which leases might be terminated.

In relation to the law of property, distinguish between choces in action and choces in possession.

Difference between choces in action and choces in possession

TRUE or FALSE: Under the Land Registration Act, a spouse will acquire an interest in his/her spouse’s land if the spouse contributes by labor or other means to the productivity, upkeep, and improvement of the land.

True
False

List the four(4) main alternative dispute resolution (ADR) methods in Kenya.

Main ADR methods

TRUE or FALSE: There is no mandatory requirement for parties to commercial litigation to submit to alternative dispute resolution (ADR) proceedings.

True
False

Highlight six(6) disadvantages of arbitration as an alternative dispute resolution mechanism.

The disadvantages of arbitration as an alternative dispute resolution mechanism.

Which of the following statements about ADR is not true?

An arbitration agreement is not discharged by the death of any party thereto, either with respect to the deceased or any other party, but in such event is enforceable by or against the personal representative of the deceased.
The authority of an arbitrator is not revoked by the death of any party by whom he was appointed.
Only Kenyan nationals can be appointed as arbitrators in Kenya.
The authority of an arbitrator is personal and ceases on his death.

Highlight four(4) circumstances under which the appointment of an arbitrator may be challenged.

The circumstances under which the appointment of an arbitrator may be challenged.

There are different methods of arbitration. In (i)________, two parties in a conflict or dispute (fight) reach a settlement between themselves that they both agree on, in (ii)_____, a neutral third party assists the parties in conflict to resolve, whereas in (iii) ______, a third party hears the case as presented by the parties in conflict or dispute (fight) and makes a decision or award in the same way as a Judge would.

i. Negotiation.ii. Mediation.iii. Arbitration.

Which of the following statements about the appointment of arbitrators is/are true?

In an arbitration with three arbitrators, each party appoints one arbitrator, and the two arbitrators so appointed appoint the arbitrator.
In an arbitration with two arbitrators, each party appoints on arbitrator.
In an arbitration with one arbitrator, the parties agree on the arbitrator to be appointed.
All of the above.

In reference to alternative dispute resolution (ADR),________ refers to a process where an independent third party helps people in a dispute to identify the disputed issues, develop options, consider alternatives, and try to reach an agreement.

Conciliation

TRUE or FALSE: Conciliation is legally binding on the parties.

True
False

Highlight four(4) advantages of mediation

The advantages of mediation

With respect to resolving commercial disputes, highlight six(6) advantages and disadvantages of negotiation.

Advantages and Disadvantages of negotiation.

TRUE or FALSE: In negotiations, the parties must take part in the process and abide by the conclusion of the negotiations.

True
False

Outline four(4) types of negotiations.

Types of negotiations.

Highlight five(5) advantages of alternative dispute resolution.

The advantages of alternative dispute resolution.

TRUE or FALSE: Criminal matters fall outside the scope of an arbitration tribunal as they are considered to be matters of public policy.

True
False

Which of the following statements is not true about Acts of parliament as a source of law?

It is the process of passing bills into laws that is quick and time-saving.
It is democratic as it reflects the wishes of those who are represented and what the law should be.
Some Acts imposed on the people reflect the views of the executive or the ruling party.
It enables the parliament to find legal solutions to any problem that the country may face by passing new acts or amending existing ones.

TRUE or FALSE: Case law makes the legal system uncertain and unpredictable.

True
False

In reference to arbitration agreements, which of the following statements is true?

An arbitration agreement has to be valid under the law for it to be enforceable.
The Agreement has to be written and signed by the parties to it.
The agreement can be contained in a clause within the contract or a separate agreement.
The doctrine of separability applies in arbitration agreements

TRUE or FALSE: Arbitration agreements are treated as separate from the underlying contract and survive the contract's termination.

True
False

List the two(2) main bodies that offer alternative dispute resolution(ADR) in Kenya.

i. The Chartered Institute of Arbitrators (CIArb).ii. The Dispute Resolution Centre and Mediation Training Institute.

Define professional ethics.

Professional ethics are principles that govern the behavior of a person or group in a business environment by providing rules on how a person should act toward other people and institutions in such an environment.

TRUE or FALSE: People in a particular group use the same professional ethics, even though their values may be unique to each person.

True
False

Outline eight(8) benefits of a professional code of conduct.

Benefits of a professional code of conduct.

TRUE or FALSE: Ethical principles differ from profession to profession.

True
False

The International Code of Ethics for Professional Accountants (ICEPA) sets out the fundamental principles for professional accountants. Outline five(5) fundamental principles that establish the behavior of professional accounts.

i. Integrity.ii. Objectivity.iii. Professional competence and due care.iv. Confidentiality.v. Professional behavior.

Highlight five(5) principles of professional competence and due care required of accountants.

Principles of professional competence and due care required of accountants.

Ethics in advertising is a set of well-defined principles that govern the ways of communication that take place between the seller and the buyer. An advertisement is ethical if:

It doesn\'t lie, doesn\'t make fake or false claims, and is within the limit of decency.

Highlight five(5) ethical issues faced by advertisers.

Ethical issues faced by advertisers.

Outline five (5) principles of ethical advertising that an advertising firm should adhere to.

Principles of ethical advertising that an advertising firm should adhere to.

Highlight the differences between law and ethics.

Differences between law and ethics.

The guiding principles that help individuals or groups decide what is good or bad are called (i)._____, whereas beliefs of an individual or a group as to what is right or wrong is called (ii)_____.

i. Ethics ii. Morals

TRUE or FALSE: A code of ethics clarifies the acceptable standards of behavior for a professional group.

True
False

Outline two(2) disadvantages of the code of ethics.

Disadvantages of the code of ethics.

Define the following types of fraud.
i. Copyright infringement
ii. Click fraud
iii. Advance fee fraud

i. Copyright infringementii. Click fraudiii. Advance fee fraud

The protection given to songs, computer programs, books, and other creative works; any work that has an “author” can be copyrighted is called:

Patent
Trademark
Copyright
Privacy

TRUE or FALSE: A mere listing of ingredients is not protected under copyright law.

True
False

To qualify as a trade secret, information must be:

Commercially valuable because it is secret.
Subject to reasonable steps taken by the rightful holders of the information to keep it secret.
Known to only a limited number of persons
All of the above.

TRUE or FALSE: In reference to copyright law, fair use allows for the use of protected works without prior authorization in specific cases.

True
False

Outline four(4) circumstances under which a public officer is allowed to receive a gift.

4 circumstances under which a public officer is allowed to receive a gift.

Highlight three (3) technology trends that raise ethical issues.

Technology trends that raise ethical issues.

The concept of “supremacy of the constitution” means that:

Parliament is the highest authority in the country
The constitution is the supreme law and all laws must conform to it
The president’s orders override all other laws
International treaties are superior to the constitution

Which of the following is not a characteristic of law?

It is enforceable by the state
It regulates human conduct
It is optional and based on personal choice
It is made by legitimate authority

The ________ law refers to a written law produced by Parliament that originates from decisions made in other courts and the country’s written constitution

Common
Statute
Customery
Administrative

Which of the following is not a type of punishment recognized in Kenyan criminal law?

Imprisonment
Community service
Dismissal from employment
Death sentence

Which of the following statements correctly describes the difference between common law and equity?

Common law is rigid, while equity is flexible
Equity is based on customs, while common law is based on fairness
Common law originated in the Court of Chancery
Equity ignores conscience and fairness

Plaintiff and defendant are the main parties in a (i) ______ case, whereas prosecution and defense are the main parties in a (ii) ______ case.

(i) Civil, (ii) Criminal
(i) Criminal, (ii) Civil
(i) Public, (ii) Private
(i) Administrative, (ii) Statutory

Which of the following is not a branch of civil law?

Contract law
Tort law
Family law
Criminal law

Which of the following factors may a court consider when applying judicial precedent?

The judge’s personal beliefs
The hierarchy of the court that made the earlier decision
The popularity of the case in the media
The nationality of the judge

According to A.V. Dicey, the rule of law includes all of the following except:

Equality before the law
Supremacy of the law
Recognition of individual rights by ordinary courts
Unlimited powers of Parliament

Which of the following lists correctly represents the sources of law identified by the Judicature Act in Kenya?

Constitution, Customary law, Common law, Equity, Legislation, Islamic law, and African customary law
. Constitution, Statutes, Common law, Doctrines of equity, African customary law, Islamic law, and Case law
Constitution, Common law, Doctrines of equity, Statute law, African customary law, Islamic law, and Acts of Parliament
Constitution, Common law, Doctrines of equity, Statute law, African customary law, Islamic law, and Judicial precedent

Principal sources of law refer to:

Laws originating from Parliament only
Sources from which the law derives its authority (e.g., Constitution, Statute law, Customary law)
Informal sources of legal advice
Judicial opinions and textbooks

Subsidiary sources of law refer to:

Sources that explain or interpret existing laws, e.g., legal texts, opinions, and case summaries
Laws passed by the president
Court fines and penalties
County bylaws

The Constitution of Kenya creates principal and other organs of government, including:

The Executive, Judiciary, and Parliament
The Police Service, Judiciary, and Media Council
The Public Service Commission, Senate, and Independent Electoral Commission
The County Assembly, Ombudsman, and Law Society

The _______ refers to law as established by the outcome of former cases.

Statute law
Common law
. Customary law
Equity law

A _______ bill seeks to introduce or amend law applicable in some parts of Kenya or regulate a specific group of persons.

Private bill
Public bill
Constitutional Amendment bill
Local bill

Which of the following correctly represents the stages of law-making in Kenya?

First Reading → Public Debate → Voting → Presidential Assent
Introduction → Committee → Voting → Implementation
First Reading → Second Reading → Committee Stage → Third Reading → Presidential Assent
Drafting → Second Reading → Debate → Judicial Review

Under delegated legislation:
(i) ______ are regulations made by government departments,
(ii) ______ are made by county governments or public corporations, and
(iii) ______ are issued by Cabinet Secretaries.

(i) Orders, (ii) Rules, (iii) By-laws
(i) Rules, (ii) By-laws, (iii) Orders
(i) Rules, (ii) By-laws, (iii) Orders
((i) Statutes, (ii) Decrees, (iii) Regulations

Which of the following is a disadvantage of statute law?

It is easily accessible
It provides legal certainty
It may be rigid and slow to amend
It reflects public will

Which of the following is not a freedom guaranteed by the Bill of Rights in Kenya?

Freedom of conscience, religion, and belief
Freedom of expression
Freedom to commit acts of sedition
Freedom of association

The _______ is a legal doctrine that obligates courts to follow historical cases when making rulings on similar cases.

Habeas corpus
Stare decisis
Locus standi
Ratio decidendi

A court may declare delegated legislation substantially ultra vires when:

It is made in excess of the powers granted by the parent Act
It is passed without public participation
It is properly made within the law
It is approved by Parliament

Which of the following is not a reason Parliament delegates law-making powers?

To save time
To allow expert input
To ensure flexibility and speed
To weaken legislative control

The _________ is a doctrine of constitutional law under which the three branches of government (executive, legislative, and judicial) are kept separate.

Rule of law
Separation of powers
Judicial review
Federalism

Which of the following is not a function of judicial review?

Ensuring laws comply with the Constitution
Checking the legality of administrative actions
Determining guilt or innocence in criminal trials
Protecting fundamental rights

The _________ arbitration refers to when parties to a contract agree to resolve future disputes via binding arbitration rather than in court or otherwise.

Ad hoc arbitration
Mandatory arbitration
Compulsory arbitration
Agreement to arbitrate (or Submission agreement)

In Kenya, on the petition of any person, the President may exercise the power of mercy in accordance with the advice of the Advisory Committee. Which of the following is not a way this may occur?

Remission of sentence
Commutation of sentence
Commutation of sentence
Imposition of additional fines

Substantive ultra vires refers to:

A delegated authority exceeding the powers granted by the enabling statute
Failure to follow proper procedure
A judicial ruling enforcing delegated legislation
A constitutional amendment

Procedural ultra vires refers to:

Failure to follow the proper procedures required by the enabling statute
Delegated legislation exceeding authority
Disobeying a court order
Passing a law under emergency powers

Under delegated legislation:
(i) Statutory instruments are regulations made by _______
(ii) By-laws are made by _______ or public corporations
(iii) Legal notices are issued by _______

(i) Cabinet Secretaries, (ii) Counties, (iii) Government Departments
(i) Government Departments, (ii) Counties or public corporations, (iii) Cabinet Secretaries
(i) Parliament, (ii) Municipal Councils, (iii) Judiciary
(i) Courts, (ii) Executive, (iii) Ministers

In reference to jurisdiction, _______ jurisdiction refers to the power of a court to hear a case at the first instance.

Appellate
Original
Limited
Territorial

In reference to jurisdiction _______ jurisdiction refers to the power of a court to hear cases on appeal.

Original
Appellate
Civil
Criminal

In reference _______ jurisdiction refers to the power of a court to hear criminal or civil cases from within a defined geographical area.

Original
Appellate
Territorial
Limited

_______ jurisdiction refers to the power of a court to entertain civil cases whose value does not exceed a specified monetary value.

Original
Appellate
. Limited
Territorial

Which of the following is not a ground for removal of a judge of a superior court?

Gross misconduct
Physical or mental incapacity
Insolvency or bankruptcy
Refusal to follow the law

Which of the following is not a power of the Court of Appeal?

Hear appeals from the High Court
Review decisions of subordinate courts
Make orders to enforce fundamental rights
Pass original verdicts in first-instance trials

Puisne judges may sit alone under which of the following conditions?

In civil cases of minor value
In criminal appeals
When hearing constitutional questions
When the Chief Justice assigns administrative duties

The Supreme Court comprises: (i) ______, who is the President of the Court, ______, who is the Vice-President of the Court, and (iii). ______ other judges

 

(i).The Chief Justice,(ii) Deputy Chief Justice,(iii). At least 5
(i).The Attorney General,(ii) Deputy Chief Justice,(iii). 7
(i).The Chief Justice,(ii) The Attorney General ,(iii). At least 7
(i).The Chief Justice,(ii) Deputy Chief Justice,(iii). 9

Which of the following is not a subordinate court in Kenya?

Magistrates’ courts
Kadhis’ courts
Court Martial
High Court

Which of the following is not a sentence the Court Martial may impose?

Imprisonment
Fine
Death sentence
Awarding civil damages

The Court of Appeal of Kenya is established under Article _______ of the Constitution and consists of not fewer than _______ judges.

163,5
164,12
163,6
164,5

Which of the following is not a class of courts subordinate to the High Court?

Magistrates’ courts
Kadhis’ courts
Court Martial
Supreme Court

In reference to the law of persons,_______ refers to a group of people who unite to form one body under a special denomination.

Natural person
Incorporated association
Company
Public corporation

_______ refers to a person who represents an official position which has a single separate legal entity.

Natural person
Legal person
Juristic person
Government official

_______ refers to a public enterprise formed by a special Act of Parliament.

Company limited by guarantee
Public corporation
Partnership
Cooperative society

The ability to have legal rights and duties (e.g., to sue and be sued) within a certain legal system is known as

Citizenship
Capacity
Legal personality
Incorporation

Which of the following is not a way to acquire Kenyan citizenship under the Constitution?

By birth
By registration
By naturalization
By marriage alone

Which of the following is not a method by which an incorporated association may be brought into existence?

Registration under the Societies Act
Incorporation by special Act of Parliament
Customary agreement without registration
Incorporation under Companies Act

In reference to the law of persons, (i) _______ refers to the legal relationship between the nation and the individual, and (ii) _______ denotes the country a person treats as their permanent home.

(i).Citizenship,(ii).Residence
(i).Nationality,(ii).Domicile
(i).Domicile (ii).Residence
(i).Citizenship,(ii).Nationality

Human beings are examples of (i) _______ persons, whereas companies, firms, and institutions are examples of (ii) _______ persons.

(i) Artificial, (ii) Natural
(i) Legal, (ii) Natural
(i) Natural, (ii) Artificial
(i) Juristic, (ii) Natural

A document that outlines in detail the rights and responsibilities of all parties to a business operation is known as:

Memorandum of Understanding
Articles of Association
Constitution
Contract

Which of the following is not a difference between natural and artificial persons?

Only natural persons die; artificial persons can continue indefinitely
Natural persons can sue and be sued; artificial persons cannot
Artificial persons are created by law; natural persons exist by birth
Only natural persons have human characteristics

Which of the following is not a classification of companies by members’ liability?

Limited by shares
Limited by guarantee
Unlimited liability
Public corporation

Tort law deals with civil suits, except for disputes involving:

Breach of contract
Negligence
Nuisance
Defamation

Which of the following is not a difference between tort and contract?

Tort arises from a civil wrong independent of agreement; contract arises from agreement
Tort aims to compensate the victim; contract aims to enforce obligations
Tort cannot involve damages; contract always involves fines
Tort law protects general public interest; contract protects private interests

Mercy wants to sue Juma under private nuisance. Which of the following is not an issue she must prove?

Interference with the use or enjoyment of her property
Reasonableness of Juma’s actions
Existence of contractual obligations
Causation linking Juma’s actions to her harm

Which of the following is not an essential that Luka must prove in a negligence claim?

Duty of care owed by defendant
Breach of duty by defendant
Voluntary consent by the plaintiff
Causation linking breach to damage

________ occurs when a person uses or alters a piece of personal property belonging to someone else without the owner's consent.

Nuisance
Trespass
Conversion
Negligence

Which of the following is not a general rule of tort law?

Every person owes a duty not to harm others
A person may be liable even without intent if a duty is breached
Compensation is awarded to restore the victim
Tortious acts always require criminal prosecution

A contract is (i) ______ when all of the elements essential to forming a legal contract are present, whereas (ii) ______ contract can be enforced in a court of law.

(i) Void, (ii) Valid
(i) Valid, (ii) Enforceable
(i) Enforceable, (ii) Voidable
(i) Valid, (ii) Void

An (i) ______ contract refers to a contract where proposal and acceptance are expressed non-verbally, whereas an (ii) ______ contract is one in which proposal and acceptance are expressed verbally.

(i) Written, (ii) Oral
(i) Implied, (ii) Express
(i) Oral, (ii) Written
(i) Voidable, (ii) Valid

Which of the following best describes the difference between a condition and a warranty?

A condition is minor; a warranty is major.
A condition goes to the root of the contract; a warranty is a minor term.
Both are equally important terms.
A warranty can terminate a contract if breached.

Any legal interest in premises that is not terminable at the will of the landlord or at the time the tenant takes possession is referred to as:

Tenancy at will
Leasehold interest
License
Periodic tenancy

The phrase (i) ______ means let the buyer beware, whereas (ii) ______ means seller beware.

(i) Caveat venditor, (ii) Caveat emptor
(i) Caveat emptor, (ii) Caveat venditor
(i) Bona fide, (ii) Mala fide
(i) Pacta sunt servanda, (ii) Res ipsa loquitur

For consideration to be valid, it must be:

Adequate, Past, and Gratuitous
Sufficient, Present or Future, and Lawful
Past, Uncertain, and Illegal
Express, Oral, and Written

The doctrine of ________ of contract prevents a person who is not a party from enforcing a term of that contract.

Res ipsa loquitur
Privity
Estoppel
. Frustration

Which of the following is NOT an element of a valid contract?

Offer and acceptance
Intention to create legal relations
Coercion and duress
Consideration

(i) ______ privity arises when benefits in a contract are given to another party not part of the original contract, whereas (ii) ______ privity may be raised when another contract arises from one of the parties.

(i) Derived, (ii) Secondary
(i) Positive, (ii) Negative
(i) Positive, (ii) Derived
(i) Secondary, (ii) Original

Which of the following is NOT an exception to the privity of contract principle?

Agency relationships
Trust arrangements
Assignment of rights
Breach of condition

Under Section 2(1) of the Law of Contract Act (Cap 23), the sources of contract law include:

Custom, common law, and written law
Equity, tort, and criminal law
Statute, equity, and the constitution
Statute law only

In contract law, ______ means there has been a “meeting of the minds” where all parties understand and accept the terms.

Mutual assent
Consensus ad idem
Frustration
Caveat venditor

Which of the following correctly lists the six elements of a valid contract?

Offer, Acceptance, Consideration, Capacity, Legality, Intention
Offer, Fraud, Agreement, Consideration, Coercion, Legality
Capacity, Offer, Misrepresentation, Acceptance, Privacy, Intention
Offer, Acceptance, Fraud, Agreement, Legality, Coercion

In a sale of goods, “quid pro quo” describes:

A gift without consideration
Something given in exchange for something else
Delivery of goods without payment
A breach of contract

Fahari sold goods to Salome for USD 20,000, but her cheque was dishonored by the bank. Salome is a:

Bailee
Buyer
Unpaid Buyer
Unpaide Seller

Since the cheque was dishonored, Fahari remains an unpaid seller under the Sale of Goods Act.

Right of lien
Right of stoppage in transit
Right to resell the goods
Right to resell the goods

A contract of sale of goods is void under the Sale of Goods Act when:

The buyer fails to pay in cash
The seller sells goods without a written contract
The goods have perished before the contract is made
The price is not fixed in the contract

Which of the following correctly states a difference between a sale and an agreement to sell?

A sale transfers ownership immediately; an agreement to sell transfers it in the future.
A sale happens in writing only; an agreement to sell can be oral.
A sale is not enforceable; an agreement to sell is enforceable.
Both are the same in law.

Which of the following is a rule for ascertaining the intention of the parties as to when property in goods passes to the buyer?

When price is paid
When goods are unascertained
When goods are in a deliverable state and unconditionally appropriated to the contract
When delivery is refused

According to the Sale of Goods Act, transit ends when:

The buyer rejects the goods
The goods are delivered to a carrier
The buyer or his agent takes delivery before arrival at the destination
The seller changes the destination

Transit ends when the buyer or agent takes delivery before arrival or when goods reach the buyer’s possession.

When the goods are loaded onto the ship
When the goods arrive at the buyer’s destination
When the insurance is paid
When the insurance is paid

In relation to international contracts of sale, a Free on Board (FOB) contract means:

The seller bears all shipping costs and insurance
The buyer assumes responsibility once goods are loaded on the vessel
The seller bears all shipping costs and insurance
The goods are delivered duty-paid

Under Section 20 of the Sale of Goods Act, goods delivered on approval or sale or return basis pass to the buyer when:

The buyer rejects them within seven days
The buyer sells or pledges them before approval
The buyer returns the goods within the agreed time
The seller requests payment

An agency by ratification is also known as:

Express agency
Implied agency
Confirmed agency
Apparent agency

Which of the following is not a rule of ratification?

The agent must have acted on behalf of the principal
The principal must be aware of the contract when ratifying
Ratification can be retrospective to the date of the original act
Ratification automatically absolves the agent of all duties

A fiduciary is:

A person entrusted with duties requiring loyalty and honesty
A legal representative for minors
An agent appointed by the court
A person who guarantees loans

Agency by necessity occurs when:

An agent acts without authority due to urgent circumstances to protect the principal’s interests
The principal expressly authorizes the agent
The agent acts for personal gain
The agent is a court-appointed trustee

Which of the following is not a duty of an agent to the principal?

Duty to obey instructions
Duty to act in good faith
Duty to disclose relevant information
Duty to share personal profits without disclosure

The _________ stipulates that when a contract is required by law to be in writing, the authority of an agent to enter into such a contract on behalf of the principal must also be in writing.

Statute of Agency
Statute of tort
Statute of Frauds
Statute of sale of goods

Which of the following is not a circumstance where an agent may be personally liable?

Acting without authority
Acting outside scope of authority
Acting on disclosed principal
Failing to disclose principal’s identity

________ authority occurs when an agent exceeds the scope of their express or apparent authority but it can be implied by a third party that the agent has that authority.

Express
Apparent
Implied
Implied

______ agency refers to the relationship where the agent acts as a broker and guarantees credit extended to the buyer.

General agency
Special agency
Del credere agency
Agency by necessity

Which of the following is not a way to terminate an agency?

Mutual agreement
Fulfillment of purpose
Death of principal
Appointment of a new agent

Which of the following does not terminate an agency by operation of law?

Death or insanity of principal/agent
Death or insanity of principal/agent
Mutual agreement of parties
Destruction of subject matter

Advocates and insurance agents are examples of:

Del credere agents
Universal agents
Special agents
General agents

Which of the following is not a similarity between agency and trust?

Both involve fiduciary duties
Both involve managing property for another
Both create a principal-agent relationship
Both automatically confer ownership to the agent

The deal in which one party can use the asset of the other party for the payment of equal monthly installments is known as (i) _______, whereas an agreement where one party buys the asset and allows the other party to use it by paying consideration over a specified period is known as (ii) _______.

(i) Hire purchase, (ii) Lease
(i) Lease, (ii) Hire purchase
(i) Conditional sale, (ii) Credit sale
(i) Bailment, (ii) Hire purchase

Which of the following is not a way a hirer may terminate a hire purchase agreement under CAP.507?

Claiming ownership without completing payments
Giving notice to the owner
Giving notice to the owner
Claiming ownership without completing payments

Which of the following is not an implied term in every hire purchase agreement?

Right to quiet possession
Goods must be of merchantable quality
Hirer may alter the goods without consent
Goods must correspond to description

The implied condition that goods are of merchantable quality does not apply when:

Goods are sold under express warranty
Goods are purchased by description
Buyer examines goods before purchase
Goods are sold by sample

(i) ______ bailment is when the bailor transfers property to bailee without compensation.

Gratuitous
Bailor’s benefit
Mutual
Commercial

______ bailment is when bailor does something for bailee and expects return/payment

Gratuitous
Mutual or onerous
Bailor’s benefit
Agency

___________ legislation refers to law made by an executive authority under powers given by primary legislation.

Primary
Subordinate
Customary
Civill

Tabora Ltd purchased a machine on hire purchase: Cash price = USD 350,000, Down payment = USD 200,000, 4 annual installments USD 100,000 each, Interest 5% per annum. The Hire Purchase Price was (i).__________and the Total Interest Paid was (ii)._________.

(i).USD 350,000,(ii). USD 100,000
(i).USD 400,000,(ii). USD 150,000
(i).USD 500,000,(ii). USD 250,000
(i).USD 600,000,(ii). USD 200,000

A court may refrain from applying binding precedent in all except:

Previous decision was per incuriam
Court has a higher authority ruling
Decision is unsuitable due to changed circumstances
Precedent is from same level court and binding

Which of the following is not true?

Credit sale transfers ownership immediately
Conditional sale transfers ownership after full payment
Conditional sale involves future installments
Credit sale and conditional sale are the same

Which of the following is not a duty of good faith among partners?

Duty to disclose all relevant information
Duty to act in the interest of the partnership
Duty to compete with the partnership
Duty to account for profits derived from partnership business

Which of the following is not a condition under which a person ceases to be a partner?

Death of a partner
Bankruptcy of a partner
Retirement of a partner
Signing a new partnership deed

Which of the following is not usually included in a partnership deed?

Duties and obligations of partners
Profit and loss sharing ratio
Capital contribution of partners
Criminal liabilities of partners outside business

Which of the following is not a liability of a minor partner?

Liable for debts up to the capital contributed
Liable for debts up to the capital contributed
Unlimited personal liability for all debts
Cannot bind partnership for new contracts without consent

Which of the following is not a way of dissolving a partnership by expiry or notice?

Expiry of term agreed in partnership deed
Completion of a specific venture
Death of a partner
Notice given by a partner under agreement

A partner cannot recover the premium paid when a partnership is prematurely dissolved if:

The dissolution occurs by mutual consent
The dissolution is due to partner’s default
The dissolution occurs by mutual consent
The partner was forced to retire

Which of the following is not a right of a partner when partnership is dissolved for fraud/misrepresentation?

Right to claim damages
Right to account for profits made by fraudulent partner
Right to avoid paying debts of other partners
Right to recover any losses caused by misrepresentation

Which of the following is the correct order of asset distribution?

Repay partners’ capital → pay external creditors → share profits
Pay external creditors → repay partners’ advances → share profits → return capital
Share profits → pay debts → repay capital
Pay partners first → creditors later

Which of the following is not a disadvantage of a Limited Liability Partnership(LLP)?

More costly to register than a general partnership
Requires formal registration and compliance
Partners have unlimited liability
Profits are taxed personally, not at entity level

Which of the following is not a difference between a Limited Liability Partnership(LLP) and a Limited Liability Company (LLC)?

LLP partners have limited liability; LLC members’ liability is limited to shares
LLP is simpler to manage; LLC has more compliance requirements
LLP can issue shares to raise capital; LLC cannot
LLC is a separate legal entity; LLP is also a separate legal entity

________ refers to a contract to perform the promise or discharge the liability of the defaulting party in case he/she fails to fulfill his promise.

Contract of indemnity
Contract of guarantee
Contract of bailment
Contract of agency

Which of the following is not a characteristic of a contract of guarantee?

Must be in writing in some cases
Three-party relationship exists
Guarantor is liable only if the debtor defaults
Guarantor automatically owns the debtor’s property

Hassan advanced a loan of USD 50,000 to Halima. Juma, Halima’s boss, promised to pay if Halima defaults.
Who is:
(i) Creditor?
(ii) Principal debtor?
(iii) Guarantor?

Hassan – Creditor, Halima – Principal debtor, Juma – Guarantor
Halima – Creditor, Hassan – Principal debtor, Juma – Guarantor
Juma – Creditor, Halima – Principal debtor, Hassan – Guarantor
Hassan – Creditor, Juma – Principal debtor, Halima – Guarantor

An (i) ______ guarantee refers to a guarantee given for a single debt or specific transaction, ending when debt is paid, whereas (ii) ______ guarantee extends to a series of transactions.

(i) Specific, (ii) Continuing
(i) Continuing, (ii) Specific
(i) Express, (ii) Implied
(i) Prospective, (ii) Retrospective

Which of the following is not a right of a guarantor?

Right to be indemnified by principal debtor
Right to require creditor to sue principal debtor first
Right to recover damages from creditor for breach of contract
Right to refuse payment even if debtor defaults

The two main types of guarantee are:

Express – in writing; Implied – inferred from conduct
Prospective – for future transactions; Retrospective – for past transactions
Specific – single transaction; Continuing – series of transactions
All of the above

Elijah loses his share certificate. The company issues a duplicate, requiring him to compensate for loss if original is used by a third party. This is an example of:

Contract of guarantee
Contract of indemnity
Contract of bailment
Contract of agency

Which of the following is not correct?

Express indemnity is written or oral
Implied indemnity arises by conduct or circumstances
Express indemnity cannot be enforced in law
Example of express indemnity: insurance contract

Which of the following is correct?

Prospective guarantee covers future debts; Retrospective guarantee covers existing debts
Prospective guarantee covers past debts; Retrospective covers future debts
Both types cover only one transaction
Both types are unenforceable

A guarantee can be revoked under all except:

By notice from the guarantor for future transactions
By mutual consent of all parties
By unilateral revocation for past transactions
On expiration of time or specific conditions

The __________ is the Government agency established under the Insurance Act, Cap.487 with a mandate to regulate, supervise, and develop the insurance sector in Kenya.

Capital Markets Authority (CMA)
Insurance Regulatory Authority (IRA)
Central Bank of Kenya (CBK)
National Treasury

Under the principle of _______, the total payment for actual loss is proportionally divided among all insurance companies.

Indemnity
Contribution
Subrogation
Utmost good faith

Which of the following is not an insurable risk?

Fire damage to property
Life expectancy of a person
Loss of future profits from speculation
Theft of insured property

A creditor has an insurable interest in the life of a:

Debtor
Employer
Competitor
Neighbor

Life (i) ______insurance is designed to cover the policyholder for a specific term, while life (ii) ______ insurance usually covers the policyholder for their entire life.

(i) Term life, (ii) Whole life
(i) Whole life, (ii) Term life
(i) Endowment, (ii) Term life
(i) Group life, (ii) Individual life

Which of the following is not a condition for applying the principle of contribution?

The same risk must be insured by more than one insurer
All policies must be on the same subject matter
Insured must have material misrepresentation in one policy
Payment is proportionate to coverage

In the insurance industry, an __________ contract requires the highest standard of good faith during disclosure of all material facts.

Aleatory
Utmost good faith
Indemnity
Subrogation

Which of the following is not a principle of insurance contracts?

Utmost good faith
Insurable interest
Indemnity
Unlimited liability of insurer

Makao has a policy with ABC Insurance (USD 50,000) and DEF Insurance (USD 75,000). Fire damage = USD 60,000. How much will Makao claim?

USD 60,000
USD 50,000
USD 50,000
USD 125,000

Which of the following is not an example of a negotiable instrument?

Cheque
Bill of exchange
Promissory note
Invoice for goods

Which of the following is not a distinction between a bill of exchange and a cheque?

A Cheque is always payable on demand; bill of exchange may be payable on demand or future date
A Cheque is drawn on a bank; bill of exchange may be drawn on any person
A Bill of exchange requires acceptance; cheque does not require acceptance
A Cheque is never negotiable; bill of exchange is negotiable

Luka found a document signed by Stephano promising to pay Sila USD 50,000 “on demand or order for value received”. Identify the name of the document:

Promissory note
Bill of exchange
Cheque
IOU

Which of the following is not a characteristic of a promissory note?

Written and signed
Unconditional promise to pay
Payment on demand or fixed date
Requires acceptance by the payee

Which of the following is not a requirement for negotiability?

Free from conditions
Must specify a definite sum
Must be transferable by delivery or endorsement
Must be endorsed by a bank manager

Bills of lading, Post Office orders, money orders, registered share certificates, IOUs, dock warrants, delivery orders, etc., are examples of:

Negotiable instruments
Commercial documents
Quasi-negotiable instruments
Non-transferable instruments

In bills of exchange, a (i) ______ refers to the payee of the instrument, while a (ii) ______ is a person who obtains the instrument bona fide for consideration before maturity.

(i) Holder, (ii) Holder in due course
(i) Maker, (ii) Drawer
(i) Drawee, (ii) Drawer
(i) Payee, (ii) Endorser

Which of the following is not a requirement for a valid acceptance for honor supra protest?

Must be written on the instrument
Must be signed by the acceptor
Must be accepted before maturity
Must be unconditional

Which of the following is not a characteristic of negotiable instruments?

Freely transferable
Must contain a promise or order to pay money
Payable to order or bearer
Payment can be conditional on another contract

Under the Land Act, 2012(Kenya) land is classified into:

Public, private, and community land
Agricultural, residential, commercial land
Urban, rural, peri-urban land
Leasehold and freehold land

Which of the following is not a component of public land?

National parks and reserves
Roads and streets
Private residential property
Forest reserves

When does an infringement of copyright occur?

When a copyrighted work is used without authorization
When a work is sold legally with permission
When the owner copies their own work
. When a work enters public domain

Which of the following is not a right of a copyright owner?

Right to reproduce the work
Right to authorize derivative works
Right to prevent unauthorized performance or copying
Right to unlimited ownership of another’s work

A right of way (ROW) over another’s land is referred to as (i) ______, whereas a right restricting another’s land is referred to as (ii) ______.

(i) Easement, (ii) Restrictive covenant
(i) License, (ii) Easement
(i) Lease, (ii) Mortgage
(i) Lease, (ii) Mortgage

Which of the following is not a condition for a valid easement?

There must be a dominant and servient tenement
The easement must accommodate the dominant tenement
The owner of servient land must personally consent to benefit
Easement must be capable of forming the subject of grant

Which of the following is not a way to create an easement?

Express grant
Prescription
Necessity
Ownership of both dominant and servient land

Which of the following is not compensable in trespass?

Actual physical damage to land
Loss of use or profit
Which of the following is not compensable in trespass?
Cost of restoration

Which of the following is not a defense?

Consent of landowner
Consent of landowner
Mistake about ownership
Ignorance of trespass

Which of the following is not a correct definition?

Easement appurtenant – personal right only
Easement in gross – benefits person, not land
Easement appurtenant – personal right only
Easement in gross – transferable or assignable

Which of the following is not a difference?

Easement is interest in land, license is permission
Easement is permanent, license may be revoked
Easement cannot be revoked by owner, license can
License creates a property interest in land

Which of the following is not an example of real property?

Land
Buildings
Furniture inside a house
Rights of way over land

Which of the following is not correctly matched?

Copyright infringement – unauthorized use of copyrighted work
Simple mortgage – creditor takes possession on default
Foreclosure – court process to enforce mortgage
Mortgage by conditional sale – sale on condition of repurchase

Which of the following is not an implied term?

Pay rent
Not to damage premises
Return premises at end of lease
Assign lease without consent

Which of the following is not a unity?

Unity of time
Unity of title
Unity of possession
Unity of occupation

Which of the following is not a method of termination?

Expiry of term
Mutual agreement
Frustration of purpose
Sale of leased premises

Which of the following is not a chose in action?

Right to sue for debt
Bank account balance
Leasehold property
Share in company

Which of the following is not a main ADR method?

Negotiation
Mediation
Arbitration
Litigation

Which of the following is not a disadvantage of arbitration?

Expensive compared to mediation
Time-consuming
Decisions are generally binding with limited appeal
Parties maintain full control of process

Which of the following cannot be used to challenge an arbitrator?

Lack of independence
Partiality or bias
Arbitrator’s nationality
Arbitrator’s qualification or misconduct

In arbitration:
i. Parties reach settlement themselves through (i) ______
ii. Neutral third party assists in (ii) ______
iii. Third party hears case and makes binding decision through (iii) ______

(i) Negotiation, (ii) Conciliation, (iii) Arbitration
(i) Negotiation, (ii) Conciliation, (iii) Arbitration
(i) Negotiation, (ii) Conciliation, (iii) Arbitration
(i) Conciliation, (ii) Mediation, (iii) Litigation

In reference to ADR, ________ refers to a process where an independent third party helps people identify disputed issues, develop options, consider alternatives, and try to reach an agreement.

Negotiation
Mediation
Conciliation
Arbitration

Which of the following is not an advantage of mediation?

. Confidential process
Faster resolution
High costs similar to litigation
Parties maintain control

Which of the following is not a disadvantage of negotiation?

May fail if parties are uncooperative
Informal, may lack legal safeguards
Can strain relationships if handled poorly
Always results in a binding decision

Which of the following is not a recognized type of negotiation?

Distributive negotiation
Integrative negotiation
Cooperative negotiation
Compulsory negotiation

Which of the following is not an advantage of ADR?

Flexibility in procedure
Confidentiality
Expensive and lengthy
Preserves relationships

Which of the following are the two main ADR bodies in Kenya?

Kenya Judiciary and Law Society of Kenya
Judicial Arbitration and Mediation Centre (JAMC) and Chartered Institute of Arbitrators (Kenya)
Insurance Regulatory Authority and Capital Markets Authority
Central Bank of Kenya and Kenya Revenue Authority

Professional ethics refers to:

The rules governing all personal behaviors of citizens
Standards of conduct and moral principles guiding behavior of professionals
Government laws regulating businesses
Legal penalties for professional misconduct

Which of the following is not a benefit of a professional code of conduct?

Enhances public confidence
Provides guidance for professional behavior
Guarantees legal immunity
Promotes accountability and integrity

Which of the following is not one of the fundamental principles of professional accountants under ICEPA?

Intergrity
Objectivity
Profit maximization
Confidentiality

Which of the following is not a principle?

Maintain professional knowledge and skills
Act diligently in accordance with applicable technical and professional standards
Achieve personal gain at the expense of professional standards
Apply professional judgment in performing services

An advertisement is ethical if:

It exaggerates the benefits of the product
It is truthful, not misleading, and socially responsible
It uses hidden messages to manipulate buyers
It misrepresents competitor products

Which of the following is not an ethical issue?

Misrepresentation of products
False claims
Creative presentation
Targeting vulnerable consumers

Which of the following is not a principle?

Truthfulness and honesty
Exploitation of fears
Social responsibility
Fairness and accuracy

Which of the following is not a correct distinction?

Breach of law leads to legal sanctions, breach of ethics may lead to social or professional censure
Ethics are morally binding, law is legally binding
Law is enforced by government, ethics is self-regulated
Ethics always requires legal approval

The guiding principles that help individuals or groups decide what is good or bad are called (i) _______, whereas beliefs of an individual or a group as to what is right or wrong is called (ii) ______.

(i) Ethics, (ii) Morals
(i) Morals, (ii) Ethics
(i) Law, (ii) Ethics
(i) Regulations, (ii) Rules

Which of the following is not a disadvantage?

Can be costly to implement and monitor
May restrict flexibility in decision-making
Can provide guidance in resolving dilemmas
May be ignored by some professionals

Which of the following is not a type of fraud?

Copyright infringement
Click fraud
Advance fee fraud
Legal advertising

Which of the following cannot justify a public officer receiving a gift?

Tokens of appreciation of small value
Gifts under protocols for official visits
Gifts in exchange for favors or contracts
Gifts from family or close friends

Which of the following is not a technology trend raising ethical concerns?

Artificial Intelligence (AI)
Big Data analytics
Manual typewriters
Internet of Things (IoT)

Which of the following is not a basic principle of corporate governance?

Accountability
Transparency
Profit maximization at all costs
Responsibility

Which of the following is not a reason why good corporate governance is important?

Reduces risk of mismanagement and fraud
Improves company performance
Guarantees unlimited profits
Enhances trust among stakeholders

Which of the following is not a correct classification of stakeholders?

Internal – employees, managers
External – suppliers, government
Internal – customers, investors
External – regulatory authorities, community

Which of the following is not an effective corporate governance practice?

Regular board meetings
Ensuring transparency and accountability
Ignoring stakeholder interests
Risk management and internal controls

Which of the following is not a role of stakeholders?

Supervising management
Imposing legal penalties
Monitoring performance
Providing financial resources

A conflict of interest occurs when:

A stakeholder benefits at the expense of the organization
Management maximizes profits ethically
Employees follow company policies
External auditors report honestly

Which of the following is not a type of individual interest that may cause conflict?

Financial interest
Professional responsibilities
Personal relationships
Legal obligations

Which of the following is not a conflict of interest among board members?

Accepting gifts that influence decisions
Acting in company’s best interest
Personal investment decisions affecting company
Competing with the organization

Which of the following is not a form of conflict among accounting firms?

Serving competing clients
Auditing a company while providing consultancy
Following professional ethics
Offering biased financial advice

Which of the following does not need to be addressed in a corporate governance framework?

Board structure and composition
Accountability and transparency
Executive remuneration
Personal hobbies of stakeholders

Which of the following is not a difference between corporate governance and compliance?

Governance ignores ethical standards; compliance includes ethics
Governance is voluntary; compliance is mandatory
Governance focuses on stakeholder interests; compliance on regulations
Governance is about organizational control; compliance ensures legal/regulatory adherence

The objective of a legal audit is to:

Evaluate financial statements
Assess compliance with laws and regulations
Maximize profits
Hire new staff

Which of the following is not an advantage of legal audit?

Detects legal risks
Improves corporate governance
Reduces liability exposure
Guarantees profit maximization

Which of the following is not a trend putting pressure on corporate governance?

Technological advancement
Traditional office furniture
Increased stakeholder expectations
Globalization

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