PST LG 2015 2023
PST LG 2015 2023
PST LG 2015 2023
CS FOUNDATION LEVEL
Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.
QUESTION ONE
(a) With reference to Sale of Goods Act:
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(ii) State THREE options available to a buyer when the seller delivers goods of a larger quantity than
ordered. .c (3 marks)
QUESTION TWO
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(c) Explain the jurisdiction of the Magistrate's court in proceedings of a civil nature concerning matters under the
African customary law in your country. (6 marks)
(d) Discuss THREE types of disclosures that partners in a partnership must make. (6 marks)
(Total: 20 marks)
QUESTION THREE
(a) In relation to intellectual property law, identify which intellectual property right is required for the following types
of intellectual property:
(d) Highlight SEVEN conditions which must be fulfilled in order for a principal to effectively ratify an act of an
agent. (7 marks)
(Total: 20 marks)
QUESTION FOUR
(a) In relation to the law of torts:
(b) Argue THREE cases for the independence of the judiciary. (6 marks)
(c) Examine FOUR distinctions between an indemnity contract and a contract of guarantee. (8 marks)
(Total: 20 marks)
QUESTION FIVE
(a) Describe the following principles:
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(b) Outline FOUR disadvantages of solving disputes through alternative dispute resolution method. (4 marks)
(d) Examine THREE types of exemption clauses that could be used in a contract. (6 marks)
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(Total: 20 marks)
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QUESTION SIX
(a) Highlight FIVE pillars of corporate governance. (5 marks)
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(b) Highlight SEVEN roles of professional bodies with regard to regulation of a profession. (7 marks)
(c) In relation to professional ethics, examine FOUR common ethical dilemmas faced by professionals. (8 marks)
(Total: 20 marks)
QUESTION SEVEN
(a) Distinguish between “corporate governance” and “ethics”. (4 marks)
(b) Highlight SEVEN consequences of lack of business ethics to a country’s economy. (7 marks)
(c) State NINE corporate governance practices that could enhance the performance of an organisation. (9 marks)
(Total: 20 marks)
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CS FOUNDATION LEVEL
Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.
QUESTION ONE
(a) Identify FOUR grounds for refusal of registration of a trademark. (4 marks)
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(c) In relation to the sale of goods, state FIVE forms of delivery. (5 marks)
(d) Examine the rule in Rylands Vs. Fletcher as established under the Law of Torts,.
.c (6 marks)
(Total: 20 marks)
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QUESTION TWO
(a) Summarise FOUR differences between “civil” and “criminal cases”. (8 marks)
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(b) Discuss any SIX ways in which a partnership may dissolve without courts’ intervention. (12 marks)
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(Total: 20 marks)
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QUESTION THREE
(a) With reference to Law of Contract, explain the following terms:
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(b) With regards to the Law of Contract, state SIX rules of revocation of an offer. (6 marks)
(c) Describe FIVE specific agents under the Law of Agency. (10 marks)
(Total: 20 marks)
QUESTION FOUR
(a) In relation to partnerships, explain the following:
(b) Joseph, a 17-year-old boy was playing football with Dan, his friend aged 16 years. As they were playing, Joseph
kicked the ball over the fence into Susan’s compound. Susan was away at the time. Joseph decided to jump over
the fence to get the ball. As he jumped, he hit his head and fell into a ditch that had been left uncovered by Susan
thus suffering a concussion. Joseph’s parents are considering taking legal action against Susan.
(d) Proper etiquette fosters good manners and an acceptable way of dealing with others.
With reference to the above statement, describe SEVEN rules of etiquette that are necessary to ensure a thriving
workplace. (7 marks)
(Total: 20 marks)
QUESTION FIVE
(a) Mariana was travelling from Nairobi to Mombasa by a bus operated by Safina Travellers Bus Company. At the
booking office, she paid her fare for the journey including a charge for the luggage she was carrying and was
issued with a ticket. On the rear side of the ticket, were warnings to the travellers that the safety of their luggage
was solely their business and that if any luggage got lost, the bus company would not be liable for such loss. Upon
arrival in Mombasa, Mariana could not find her luggages and raised the issue with Safina Travellers Bus Company
management who denied any responsibility and referred her to the clauses in the ticket.
(c) Identify SIX challenges of common law that equity sought to mitigate. (6 marks)
(Total: 20 marks)
QUESTION SIX
(a) With respect to corporate governance:
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(i) Distinguish between “agency theory” and “stewardship theory”. (4 marks)
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(ii) Identify SIX causes of agency problem in organisations. (6 marks)
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(b) Your classmate, Benjamin Mugambi has been absent for a while due to sickness and missed the class on Law of
Torts. He has approached you to help him in revising for his CPA examinations.
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Explain to him FIVE torts that exist under the Law of Torts. (10 marks)
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(Total: 20 marks)
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QUESTION SEVEN
(a) Explain the term “Administrative Law”. (2 marks)
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(b) In relation to the law of insurance, the insurer is not bound to accept the offer, however, if the insurer accepts the
offer, it signifies a contractual relationship between the two parties.
(ii) State FOUR ways the insurer may signify acceptance of the proposal form. (4 marks)
(c) With reference to contract of guarantee, outline FIVE rights of a guarantor against a creditor. (5 marks)
CS FOUNDATION LEVEL
Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.
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QUESTION ONE
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(a) With reference to the law of contract, state FOUR circumstances under which a court might nullify or mitigate the
hardship created by an exemption clause. a. (4 marks)
(b) (i) Explain FOUR benefits of carrying out a legal audit in a corporation. (4 marks)
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(c) Discuss FOUR ways in which the right to lien as a remedy of unpaid seller might be lost. (8 marks)
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(Total: 20 marks)
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QUESTION TWO
(a) In relation to the law of Torts, explain the following terms:
(c) Subordinate courts are bound to apply the decisions of superior courts in subsequent similar cases where they have
been pleaded as law.
QUESTION THREE
(a) In relation to the law of contract:
(b) Identify TWO differences between a “natural person” and an “artificial person”. (4 marks)
(c) (i) Using THREE examples, distinguish between a “negotiable instrument” and a “negotiable document of
title”. (6 marks)
(ii) In relation to the court system, highlight the jurisdiction of the International Court of Justice. (4 marks)
(Total: 20 marks)
QUESTION FIVE
(a) (i) Define the term “corporate governance”. (2 marks)
(b) State FOUR disputes that are not eligible for alternative dispute resolution mechanisms. (4 marks)
(c) Explain FOUR rules governing presentation of a bill of exchange for payment. (8 marks)
(Total: 20 marks)
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QUESTION SIX
(a) (i) In relation to intellectual property, identify TWO types of works that are eligible for copyright protection.
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(2 marks)
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(b) With reference to the law of property, describe THREE forms of interest in land. (6 marks)
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QUESTION SEVEN
(a) With reference to professional ethics:
(i) Outline FOUR ethical principles that underpin all professional codes of conduct. (4 marks)
(b) In relation to the law of insurance, describe FOUR conditions which must exist for an insurer to be entitled to
contribution. (4 marks)
CS FOUNDATION LEVEL
Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.
QUESTION ONE
(a) In relation to the classification of law, distinguish between:
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(i) “Municipal law” and “international law”. .c (4 marks)
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(b) Distinguish the remedies available in civil law and those available under criminal law. (4 marks)
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(c) State eight sources of law identified by the Judicature Act. (8 marks)
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(Total: 20 marks)
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QUESTION TWO
(a) In relation to professional ethics for Corporation Secretaries, explain five instances which might be considered to be
professional misconduct. (10 marks)
(ii) Summarise six grounds for setting aside an arbitral award. (6 marks)
(Total: 20 marks)
QUESTION THREE
(a) Discuss four cases where a court cannot grant the remedy of specific performance. (8 marks)
(b) Explain the seven rules applicable for distribution of assets upon dissolution of a partnership. (7 marks)
(c) Describe five conditions necessary for the doctrine of estoppel to apply. (5 marks)
(Total: 20 marks)
QUESTION FOUR
(a) Highlight five instances where receiving of another’s goods will not amount to conversion. (5 marks)
(b) Outline five distinctions between a “promissory note” and a “bill of exchange”. (5 marks)
(b) State three conditions which must be satisfied for a commercial agency to arise. (6 marks)
(c) Explain four ways in which the independence of the judiciary could be achieved. (4 marks)
(Total: 20 marks)
QUESTION SIX
(a) Explain six circumstances under which an insurance contract might be terminated. (6 marks)
QUESTION SEVEN
(a) Identify five principles that a co-operative society has to incorporate in its by-laws for it to be registered as a
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co-operative society in your country. .c (5 marks)
(Total: 20 marks)
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CS FOUNDATION LEVEL
PILOT PAPER
QUESTION ONE
(a) Customary law is a source of law in many countries. However, it must fulfill the criteria set before it is accepted
as a source of law.
With reference to the above statement, outline the criteria to be fulfilled. (10 marks)
(b) Discuss the circumstances under which the writ of mandamus could be issued by courts. (5 marks)
(c) Article 159 of the Constitution provides alternative disputes resolution (ADR) as a way of solving disputes.
QUESTION TWO
(a) Yako took his clothes to laundry for dry cleaning services. He was given a receipt which he did not read. When
he reached home, he read it more carefully and saw the writing below:
“In case a garment is damaged, the company will be liable to pay up to Sh.1000”.
Upon inspection of the clothes, he realised that they were damaged as a result of negligence of the laundry
company.
(b) Explain five circumstances when an agent can be held personally liable. (5 marks)
(c) Distinguish between a “limited liability partnership” and “common law partnership”. (5 marks)
(Total: 20 marks)
QUESTION THREE
(a) Discuss five provisions of the Constitution that anchor compliance obligations in publicly listed companies.
(10 marks)
(b) Explain five functions of the management company in Sectional Properties Act. (5 marks)
(c) Outline briefly the obligations of a surety under the contract of guarantee. (5 marks)
(Total: 20 marks)
QUESTION FOUR
(a) Explain four theories of ethics. (8 marks)
(b) Tindi issued a bill of exchange to ALD Company Limited. The bill was subsequently altered by the ALD
Company Limited by crossing the name of ALD Company Limited and substituting it with the name ALD CO.
LTD.
Explain the liability of the acceptor to the holder after such alteration. (8 marks)
(c) Citing relevant cases, expound the obligation of the credit broker (dealer) in sale of goods act. (2 marks)
. (Total: 20 marks)
QUESTION SIX
(a) With reference to the Constitution, list five ways of identifying public land. (5 marks)
(b) Yusit invented an automatic machine which dispenses drugs automatically when you insert a prescription into
the machine. Aumatech modified the machine and passed it to the market as Aumatech. Yusit has lost significant
revenue as a result.
Required:
Advise Yusit on the cause of action against Aumatech. (5 marks)
(c) Komba promised to supply Nyule with 100 bags of yellow beans on Wednesday, 27 October 2021. Nyule
accepted to pay the price after receipt of goods. On the agreed day, Komba did not supply the goods.
Required:
(i) Explain the liability of Nyule. (2 marks)
(ii) Expound on when the court may refuse to grant recession order. (8 marks)
(Total: 20 marks)
QUESTION SEVEN
(a) Outline the structure of courts in your country. (10 marks)