ASSIGNMENT BMLW5103

SEPTEMBER SEMESTER 2011 BMLW5103 BUSINESS LAW ASSIGNMENT (50%)

OBJECTIVE: The objective of this assignment is equip students with the necessary skills in using Acts, case laws and legal principles, to enhance their knowledge and understanding of the relevant business laws in Malaysia. INSTRUCTIONS: The answer must be supported by the relevant sections and cases. Assignment Format: a. Use double space and 12-point Times New Roman font. b. This assignment should contain about 3000-5000 words (at 15-20 pages). c. Provide references. References should use the American Psychological Association (APA) format. d. References should be from year 2005 and onwards.

Notes: Assignments should be submitted according to the fixed date. You are to submit a softcopy of your assignment online through myVLE and a hardcopy to your facilitator. Plagiarism is not acceptable. If you are not sure what is meant by plagiarism, refer to the various websites which discuss this matter, e.g. owl.english.purdue.edu/handouts.

ASSIGNMENT BMLW5103

Question 1 Lewis Fong, a professional singer, was offered a contract to sing at a nightclub owned by Ben Tan in Penang, for four (4) months. One of the conditions of the contract was that Lewis was not allowed to sing at any other clubs in Penang within the four (4) months period of the contract. Lewis agreed to the condition and entered into the contract with Ben. After performing at Bens nightclub for one month, Lewis received a better offer from Bens business rival, Tony. Lewis informed Ben of his intention to sing at Toms nightclub but Ben disapproved of Lewiss intention. The next day, Tan started singing at Toms nightclub. Advise Ben with regard to the type of discharge of contract committed by Lewis and the relief available to him as provided by the Specific Relief Act 1950. Consider this alternate scenario: What if Lewis had been singing at Bens club for only two weeks and had lost his voice due to a serious illness, making it impossible for him to sing. Lewis had to withdraw from the singing engagement at Bens nightclub. Ben claimed that he has suffered losses with Lewiss failure to perform. Ben wanted to sue Lewis for breach of contract. How would you advise Ben? [TOTAL: 25 MARKS]

Question 2 (a) On 10th July 2010, Avia Sdn. Bhd. posted an offer to sell a consignment of 2,000 thumb drives to Ali. The offer stated the price was RM 10,000 and that the offer would remain open until 31st July 2010. On 12th July 2010 Ali telephoned Avia Sdn. Bhd. and asked whether he would be allowed three months credit. Avias manager replied that payment would have to be made in cash. On 29th July 2010, Avia sold the consignment to a third party and on the same day Ali posted a letter accepting Avias offer. The letter of acceptance arrived on 1st August 2010. Upon receiving the letter, Avias manager telephoned Ali and told him that the consignment has been sold to a third party. Advise Ali of his rights under Contracts Act 1950. [TOTAL: 10 MARKS] (b) Sharing of profit is prima facie evidence of the existence of partnership. However, there are several situations as stated by the Partnership Act 1961 where the presumption is rebuttable. Discuss. [TOTAL: 15 MARKS] 2