LAW416 - Business Law (Assigments) PDF

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LAW416 : Business Law Assigment 1 Explain and elaborate the legislative process in Malaysia. Shahrul Hafiz Bin Mat Desa 017 2122 017 University Teknologi MARA (UiTM) THE LAGISLATIVE PROCESS IN THE MALAYSIAN PARLIAMENT Article 44 of the Federal Constitution (FC) vests the legislative authority of Mal...

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LAW416 : Business Law

Assigment 1 Explain and elaborate the legislative process in Malaysia.

Shahrul Hafiz Bin Mat Desa 2011112339 017 – 2122 017 University Teknologi MARA (UiTM)

THE LAGISLATIVE PROCESS IN THE MALAYSIAN PARLIAMENT Article 44 of the Federal Constitution (FC) vests the legislative authority of Malaysia in Parliament. Comprising the Yang Di-Pertuan Agong (YDPA) and the two Houses of Parliament i.e the Dewan Negara (Senate) and the Dewan Rakyat (House of Representatives) Briefly, legislation is enacted by Parliament by introducing a Bill who is passed by both Dewan and assented by the YDPA. A Bill may originate in either Dewan, although it most often originates in the Dewan Rakyat. Bills concerning tax or expenditure must originate in the Dewan Rakyat. There are two main stages in the process : 1) Pre–Parliamentary Basically, at the Pre-Parliament stage, it’s covers in effect , the proposal , consultation and drafting stage. Proposal for legislation may come from various sources, for example the election manifesto of political party that becomes government, policy decisions of a Ministry or government department, recommendations of a Royal Commission or from pressure groups (NGO). Wherever the proposal comes from, it has to be accepted in principle by the Cabinet. A long series of discussions follow within and between the relevant governments authorities involved. Experts and interested outside bodies may be consulted. If the proposal is particularly important, there may even be public discussion in media. When the outlines have been worked out, the proposal is sent to the Parliamentary Draftsperson in the Attorney General’s Chambers to be put into legal language and form the proposal to become a “Bill”. After approval by the Cabinet , the Bill is ready to be introduced into Parliament .

2) Parliamentary Orders of The procedure is set out in Chapter 5, part IV of the Federal Constitution and in standing both Dewan. A Bill is introduced into Parliament by the Minister responsible for the subject matter. When it has been passed, after debate and voting, by the Dewan Rakyat, it is referred to Dewan Negara where it goes through the same process. The Bill (a written suggestion) introduced to parliament may be classified as: a) Private Bill’s b) Private Member Bills c) Hybrid Bills d) Government Bills

The Bill is normally presented by the Minister to the Parliament A Bill introduced in either House in accordance with Parliamentary procedure as prescribed by the Standing Orders usually goes through 4 stages:

1.TheFirstReading To introduce a bill, it is required to give notice to the Clerk of the relevant House before which he intents to introduce it. Bills may be classified as Private Bills, private member’s Bills, hybrid bills or government Bills. At the first reading, the Minister merely mention the title of the Bill and then proceeds to give oral notice as to when he wishes to move the Second Reading. There is a debate or amendment at this stage of the proceeding which are but a mere formality. 2.TheSecondReading This motion, moved by the Minister, requires to be seconded. By the time this motion is move, the Bill will have been printed and circulated to all members of the House. Otherwise, the Bill cannot be presented. It is as this stage that debate on the Bill is carried out. 3.TheCommitteeStage At the end of the Second Reading, the Bill is committed Committee of the whole House. In effect, the House resolve itself into a Committee on the Bill. This is called a Committee Stage and it is intended to allow members the opportunity to discuss detail of the Bill and to propose amendment in a less formal proceeding. 4.TheThirdReading When discussion is completed in Committee, the Minister move a motion to report the bill under consideration to the House. If the motion is accepted, the House will resume sitting and this brings the Committee Stage to an end.

When the house resume sitting, the minister reports that the Bill has been considered and accepted by the Committee with or without amendment. When a Bill has been passed in the manner describe above in either House, it is then transmitted or send to the other House for Consideration. When the has been considered by the other House in a similar fashion, it is return to the House from which it originated. The motion is the final step and article 68 of the Federal Constitution will become operative. According to article 68, the Bill may be presented to the Yang di-Pertuan Agong for his assent after the lapse of one month if it is a Money Bill and twelve months if it is not a Money Bill. However, this primacy of the House of Representatives over the Senate does not exist in the event of a Bill amending the Constitution. Constitutional amendment requires the concurrence of both chambers. The function of the Senate is general legislation is of a revising nature with no real authority to reject measures passed by the House of Representative.

Although a Minister normally introduces a Bill, there is nothing to prevent any member either of the government or the opposition from introducing a Bill, but such a move is unlikely to succeed unless it commands the support of the government. Bill may originate from either House with the exception of a Bill or and amendment concerning any of the matters enumerated in article 67, such a taxation and expenditure, which must be moved by a minister in the House of Representative. The legislative procedure in the State Assemblies is almost similar to that in the Federal Parliament with some local variations. Bill are passed by the one-chamber by Legislative Assembly and assented to by the Ruler or Yang di-Pertua Negeri before becoming law, and no law can come into force until it is published. Bills requiring expenditure from the Consolidated Funds have to be introduced by a member of the Executive Council. State Constitution, with certain exceptions may also be amended on the same format as an amendment of the Federal Constitution, that is, supported on the second and third reading by at least two-third of the total number of members. The constitutional provisions affecting succession to the throne in the Malay State may not be the subjects of amendment by the State Legislature.

Voting A Bill is adopted by a simple majority vote of those members present and voting. There are several exception to this rules, the most significant being constitutional amendment in accordance with article 159 of Federal Constitution. Bill shall not been passed in either House of Parliament unless it has been supported on the second and third readings by the votes of not less than two-third of the total number of members of that House.

RoyalAssent The Yang di-Pertuan Agong is an integral part of Parliament. His assent is normally before a Bill becomes law. Royal Assent is not effect within a time specified, the Bill becomes law as if it had been assented. Prior to the amendment, there was no evidence to suggest that the Royal veto over a proposed federal law has ever been official existed.

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LAW416 : Business Law

Assigment 2

Shahrul Hafiz Bin Mat Desa 2011112339 017 – 2122 017 University Teknologi MARA (UiTM)

1) Onthe1stMay,SamyofferedthroughtelextosellhislorrytoMuthuatthepriceof RM80,000. Muthu posted his letter of acceptance on 8th May. Unfortunately, the letterlostinthecourseoftransmissionanditdidnotreach Samy.Since Samydid not receive any reply from Muthu, hesold the lorrytoTan.LaterMuthuclaimed hislorryfromSamy.AdviseSamy.

Introduction : Communication of Acceptance & Acceptance Through Post Under Section 7(b) of the Contracts Act 1950, “In order to convert into a promise the acceptance must be expressed and in some usual and reasonable manner, unless the proposal prescribe the manner in which it is to be accepted. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in that manner, the proposer may within a reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise; but if he fails to do so, he accepts the acceptance.” This is means the proposer must accept the offer in some usual and reasonable manner of communication or if the proposer stipulates the manner in which it is to be accepted then the acceptor is bound to comply the manner it is to be accepted. If the proposer want acceptor to comply to his method of acceptance, he should insist and if he fails to do so the acceptance is binding on him. Under Section 4(2) of the Contracts Act 1950, “Communication of acceptance is complete:a) As against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor; and b) As against the acceptor, when it comes to the knowledge of the proposer.” This it means the proposer is bound to the contract when the acceptor posted the letter even though the former has no knowledge of the acceptance. When the letter is posted, the acceptor has put in the course of transmission in such a way he has no longer control over it. Transmission becomes binding irrespective of delay or disappearance in course of transmission. This was illustrated in the case of Enores Ltd v. Miles Far East Corporation (1955) 2 QB 327, “When a contract is made by post, it is clear law throughout the common law countries that acceptance in complete as soon as the letter is put into the post box, and that is the place where the contract is made” Applying the principles above to the facts in question, Samy didn’t prescribe a manner in which it is to be accepted. Thus Samy must accept the offer in some usual and reasonable manner of communication. Muthu has posted his letter of acceptance on 8th May. This was meant that Muthu already accepted the offer within the reasonable time and Samy was bound to the contract even though there was no knowledge of the acceptance. Although the letter was not reach Samy, transmission becomes binding irrespective of delay or disappearance of the letter. In conclusion, the acceptance from Muthu is valid, and Samy is binding to his acceptance. Therefore, Samy cannot sell the lorry to Tan.

2) Farahofferedtosellhercar toNormala on 16th Dec2009 for RM55,000. On 18th Dec 2009, in reply, Normala wrote to buy the car for RM50,000. When Farah refusedtoacceptthisoffer on27th Dec2009,Normalawroteagainthatshewas prepared to pay the original sum demanded. Unfortunately, Farah has changed hermindandrefusedtosell.AdviseNormalawhethershecouldsuccessfullysue Farahforbreachofcontract.

Introduction : Acceptance Must Be Absolute and Unqualified Under Section 7(a) of The Contracts Act 1950, “In order to convert a proposal into a promise the acceptance must be absolute and unqualified.” It means that if a Promisee intends to make acceptance he must accept the offer without attaching conditions to the acceptance. When a Promisee attaches conditions to his acceptance or modify the offer it did not constitute a valid acceptance but creates a counter offer. Counter offer thus is treated as rejection to the original offer by the Promisor. The moment the Promisee makes a counter offer it destroys the original offer. This rule was determined in the English case of Hyde v. Wrench (1940) 3 Beav. 334. “Defendant offered to sell an estate for the price of 1000 pound. Plaintiff made a counter offer to buy at 950 pound. The Defendant declined to accept the offer. After a few days the Plaintiff said that he is willing to accept the original offer. It was held that no acceptance occurs since the time making the counter offer the Plaintiff was actually rejecting the original offer. Therefore the original offer was destroyed.” Applying the above principle to facts in question, Normala has wrote a counter-proposal to buy a car for RM50,000. Thus it was treated as rejection to the original offer from Farah which could not be revived. Due to that, Farah was not bound to the contract and she got right to change her mind for refuse to sell the car. In conclusion, Normala would not successfully sue Farah for breach of contract.

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LAW416 : Business Law

Assignment 3 Law of Hire Purchase & Agency

Shahrul Hafiz Bin Mat Desa 2011112339 017 – 2122 017 University Teknologi MARA (UiTM)

1) For the purpose of expanding his printing business, Hamid acquired a new printingmachinethroughahire purchaseagreementforadurationof24months. With reference to the Hire Purchase Act 1967 (Revised 1992), discuss Hamid’s legalpositioninthefollowingcircumstances:  a) Hamid wishes to let his brother, Amin continue with the hire purchase agreementoftheprintingmachineafterpayingtheinstalmentsfor3months.  The issue is in this situation is whether Hamid can let his brother, Amin to continue with the hire purchase agreement of the printing machine after paying the instalment for 3 months from the owner? The principal applicable in this situation is the statutory rights of hirers for the assignments of rights under here-purchase agreement. Under Section 12, Part IV of the Hire Purchase Act 1967 : “(1) The right, title and interest of a hirer under a hire-purchase agreement may be assigned with the consent of the owner, or if his consent is unreasonably withheld, without his consent. (2) Except as otherwise provided in this section, no payment or other consideration shall be required by an owner for his consent to such an assignment as is mentioned in subsection (1) and where an owner requires any such payment or other consideration for his consent, that consent shall be deemed to be unreasonably withheld. (3) Where, at the request of a hirer under a hire-purchase agreement, the owner fails or refuses to give his consent to an assignment by the hirer or his right, title and interest under the agreement, the hirer may apply to the High Court for an order declaring that the consent of the owner to that assignment has unreasonably been withheld, and where such an order is made that consent shall be deemed to be unreasonably withheld.” This is means the hire may assign the right, title and interest under a hire purchase agreement to an assignee with the consent of the owner. However the hirer cannot dispose off or sell the goods. The owner cannot withhold such consent unreasonably or else the hirer can apply to the court for an order declaring that the consent of the owner was unreasonably withheld. The owner’s consent is deemed to be unreasonably withheld if he demands any payment or consideration, other than those allowed under the Act, in exchange of his consent. Applying the principles above to the question, Hamid got right to let his brother, Amin to continue with the hirer purchase agreement of the printing machine. If the owner does not give his consent with any reasonably reason, Hamid can go ahead with assigning his brother, Amin without having the consent of the owner through the court jurisdiction.

b) Hamid wishes to know the current financial status of the hire purchase agreement from the owner after paying the instalments for 5 months. However,theownerrefuseshisrequest. The issue in this situation is whether Hamid got right to know the current financial status of the hire-purchase agreement from the owner after paying the instalments for 5 months? The principal applicable in this situation is the statutory rights of hirers for the right of hirer to statement relating to his financial position. Under Section 9, Part IV of the Hire Purchase Act 1967 : “(1) At any time before the final payment has been made under a hire-purchase agreement the owner shall, within fourteen days after he has received a request in writing from the hirer, supply to the hirer a statement signed by the said person or his agent showing : a) The amount paid to the owner by or on behalf of the hirer; b) The amount which has become due under the agreement but remains unpaid; c) The amount which is to become payable under the agreement; and d) The amount derived from interest on overdue instalments:’ Provided that an owner need not comply with such a request if he has sent the hirer a statement under this section within a period of three months immediately preceding the receipt of the request. (2) In the event of a failure without reasonable cause to comply with subsection (1) then, while the default continues : a) The owner shall not be entitled to enforce : i) The agreement against the hirer; ii) Any right to recover the goods from the hirer; iii) Any contract of guarantee relating to the agreement; (3) If the default aforesaid continues for a period of one month, the owner shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one thousand ringgit.” This means the hirer may request from the owner a statement which contains the financial status of his hire-purchase agreement. The request may be made at any time before the final payment. The owner must produce the statement to the hirer within 14 days upon receiving the request. If the owner failed to do so, the owner shall not be entitled as stated in (2) a) as above and if it still continue for a period of one month, the owner can be convicted. Applying the principles above to the situation, Hamid got his right to know the current financial status of the hire purchase agreement from the owner after paying the instalment for 5 months. In conclusion, Hamid can bring this problem to the court to fight for his right to get his financial status.

c) In viewof goodcashflowreturns,Hamid wishestoshortenthedurationofthe hirepurchaseagreement.  The issue in this situation is whether Hamid can shorten the duration of the hire purchase agreement? The principal applicable in this situation is the statutory rights of hirers for the right to early completion of agreement. Under Section 14, Part IV of the Hire Purchase Act 1967 : “(1) The hirer under a hire-purchase agreement may, if he has given notice in writing to the owner of his intention to do so, on or before the day specified for that purpose in the notice, complete the purchase of the goods by paying or tendering to the owner the net balance due under the agreement.” This mean the hirer has right for early completion of agreement by giving a written notice to the owner indicating his intention and, on or before the day specified for that purpose in the notice, pay or tender payment to the owner the net balance due under the agreement. Applying the principles above, Hamid can shorten the duration of his hire purchase agreement by giving the appropriate notice to the owner. 2) Ahmadwasinstructedbyhisemployertocarryaconsignmentof vegetablefrom ButterworthtoShahAlam.Thelorrythathewasdrivingwasbadlydamagedwhen itwasinvolvedinroadaccidentnearRawang.  Sincehe didnotwanttowaittoolongforthelorryrepaired,Ahmadsoldofallthe vegetablestoashopownerforhalfofprice.  DiscussthepositionofAhmadwithregardstothisproblem. The issue here is whether there exists an agency creation in the above case? Is Ahmad got right to sell all the vegetables to a shop owner for half of price? The principal applicable in this situation is the creation of agency by implied appointment and a duties of an agent to his principal. Under Section 140, Part X of the Contracts Act, 150 : “An authority is said to be express when it is given by words spoken or written. An authority is said to be implied when it is to be inferred from the circumstances of the case; and things spoken or written, or the ordinary course of dealing, may be accounted circumstances of the case.”

This means law may infer the creation of an agency by implication when a person by his words or condu...