Name of Course / Module Course Code Teaching learning and assessment strategy Rationale and Objective for the

e inclusion of the course / module in the programme Learning outcomes Assessment Methods Types

BUSINESS LAW BUS 2033 Lecture, tutorial, and group project / discussion.

This module provides a sound knowledge of the core elements of Malaysian Business Law to prepare the students in the working environment.

and

Students will be able to acquire a sound understanding of the legal aspects of the law affecting business transactions and develop reasoning abilities by applying the principles of law in the business environment. Coursework (50%) Test 10% Quizzes 10% Presentation 10% Assignment 15% Class Participation 05% Final Examination (50%) A: Objectives Questions 20% B: True / False Questions 10% C: Short Questions 40% D: Long Questions 30%

TOPIC Topic 1: MALAYSIAN LEGAL SYSTEM

TOPIC OUTLINE 1. Classification of Law Public law Private law International law 2. Sources of law Written law Unwritten law Muslim law 3. Judicial system Malaysia Subordinate courts Peninsular Malaysia - Penghulus Courts - Magistrates Courts - Juvenile Courts - Sessions Courts Subordinate courts East Malaysia - Native Courts - Magistrates Courts - Juvenile Courts - Sessions Courts Superior courts Malaysia - High Court - Industrial Court - Court of Appeal - Supreme Court

OBJECTIVES/LEARNING OUTCOMES Objective: - To introduce the concept of law as understood in Malaysia. - To provide basic knowledge as to where Malaysian Law can be found. - To introduce the hierarchy of courts, their jurisdiction and powers. in in Learning outcome: - State 3 classification of law. - Define law according to various sources. - Outline the hierarchy of court and jurisdiction.

HOU RS 4

REMARK S

in

in

Topic 2: LAW OF CONTRACT

1. Elements of Contract Offer Acceptance Intention to create legal relations Consideration Certainty of terms Capacity to contract 2. Privity of contract 3. Terms of a contract Conditions and warranties Standard contracts and exemption clauses 4. Voidable contracts Coercion Undue influence Fraud Misrepresentation Mistake 5. Void and illegal contracts Consequences of void or illegal agreements 6. Restraints of trade and legal proceedings Restraint of trade Restraint of legal proceedings Effects of contracts in restraint of trade and legal proceedings 7. Discharge of contract By consent By frustration & effects of frustration By performance By breach & effects of breach 8. Remedies for breach of contract Damages Specific performance

Objective: - To evaluate the essential elements of valid contract and remedies of its breach according to Contracts Act 1950. Learning outcome: - To explain the definition of contract. - To determine the essential elements of contract. - To determine the privity of a contract. - To determine the terms of a contract. - To explain the importance of free consent in a contract. - To explain the consequences of void or illegal agreements. - To define restraint of trade. - To define restraint of legal proceedings. - To explain the effects of contracts of trade and legal proceedings. - To discuss on how the contract can be discharged. - To list down the remedies for breach of contract.

Statute: Contracts Act 1950

 Injunction

Topic 3: LAW OF SALE OF GOODS

1. Introduction Definition of goods Definition of contract of sale Definition of agreement to sell 2. Terms of the contract Conditions and warranties Stipulation as to time Implied terms 3. Transfer of property (possession) of the goods 4. Transfer of title (ownership) of the goods Estoppel Sale by mercantile agent Sale by one of joint owners Sale under a voidable title Sale by a seller in possession after sale Sale by buyer in possession 5. Performance of the contract Delivery Acceptance 6. Remedies for breach of contract Rights of unpaid seller against the goods Right of seller to sue for breach of contract Right of buyer to bring an action for nondelivery Right of buyer to bring an action for specific

Objective: - To appraise the contract of sales of goods and its contents according to the Sale of Goods Act 1957. Learning outcome: - To define goods. - To explain the terms which exist under the sale of goods contracts. - To discuss the general principles in the transfer of goods and its exceptions. - To assess means of performance for sales of goods. - To examine unpaid sellers rights. - To discuss the remedies which a seller and buyer can claim if there is a breach of contract.

Statute: Sale of Goods Act 1957

performance Remedies available buyer for breach warranty Buyers action in tort

to of

Topic 4: LAW OF HIRE PURCHASE

1. Definition and formation of the hire purchase contract 2. Terms of the contract Implied conditions Implied warranties 3. Statutory rights of hirers 4. Procedures of repossession by owner

Objective: - To illustrate the requirements of the contract of hire purchase according to Hire Purchase Act 1967. Learning outcome: - To define hire purchase. - To explain the procedures that must be complied with in the formation of hire purchase agreement. - To discuss the 5 implied terms in a hire purchase agreement. - To describe 7 rights of a hirer. - To explain the procedures for repossession of the goods by the hirer. - To explain the 2 rights of the hirer if goods repossesed.

Statute: Hire Purchase Act 1967

Topic 5: LAW OF NEGOTIABLE INSTRUMEN TS

1. Nature of bills of exchange 2. Negotiation of bills By mere delivery By indorsement and delivery 3. Acceptance of bills General acceptance Qualified acceptance 4. Indorsements Blank indorsement Special indorsement Restrictive indorsement Conditional indorsement Facultative indorsement 5. Delivery 6. Liability of parties Drawer Drawee/acceptor Indorsers Accommodation party Fictitious and nonexisting payees 7. Holders of bills Holder in due course Holder for value 8. Forged signatures Drawers signature forged Indorsements forged Effect of forged signatures 9. Payment of bills 10. Dishonour by nonpayment 11. Cheque Types of cheque Crossing and alteration on cheque Protection of paying banker and collecting banker Termination of the paying bankers pay 1. Types of insurance 2. Nature of insurance contract Definitions Contracts of indemnity Insurable interest Utmost good faith Material facts 3. Conditions and warranties 4. Exemption clauses 5. Agent filling proposal form 1. Creation of agency By express appointment By implied appointment By ratification By necessity By estoppel 2. Statutory duties of Principal Agent 3. Statutory duties of a principal to his agent Sec. 175 178 4. Authority of the agent Actual authority Apparent/ostensible authority 5. Termination of agency By act of the parties By operation of law

Objective: - To describe the nature of negotiable instrument with emphasize on cheque according to Bills of Exchange 1949. Learning outcome: - To list 6 important characteristics which must exist in a cheque. - To list 6 important characteristics which must exist in a cheque. - To examine the 3 forms of cheques and its definition. - To appraise on the procedures and effects of crossings of cheques as well effects on cheques which has been altered. - To assess the conditions which must be complied with to enable the paying bank and collecting bank to be protected. - To evaluate the principle for the termination of authority of the bank to make payment.

Statute: Bills of Exchange 1949

Topic 6: INSURANCE

Objective: - To provide basic knowledge relating to insurance Learning outcome: - To list types of insurance contract. - To explain the nature of an insurance contract.

Statute: Insurance Act 1963

Topic 7: LAW OF AGENCY

Objective: - To examine the creation of agencies, duties, rights and liabilities of agents and principals and termination of the contract of agency according to Contracts Act 1950. Learning outcome: - To explain 5 ways an agency can be created. - To discuss the statutory duties of a principal and an agent. - To appraise the 3 duties of a principal to his agent. - To categorise 2 types of authorities of an agent. - To examine the ways for termination of a contract of agency.

Statute: Contracts Act 1950

Topic 8: COMPANY LAW

1. Introduction to company law Legal entity of a company 2. Legal nature of companies Separate legal personality - Definition of separate legal personality - Rule: Salomons case - Consequences of treating the company as a separate legal entity Exceptions: Lifting the corporate veil - Situations where courts (case law) have lifted the corporate veil - Situations where statutory provisions have lifted the corporate veil 3. Comparison of differences between a company, partnership and sole-proprietorship 4. Types of companies Public companies - Limited by shares - Limited by guarantee - Unlimited with share capital - Limited both by guarantee and shares Private companies - Limited by shares - Unlimited with share capital Exempt private companies Foreign companies Investment companies 5. Memorandum and Articles of Association Introduction - Memorandum and articles of association - Relationship between memorandum, articles and the statutory provisions in the Companies Act - Amendment of memorandum and article of association Legal effect of the memorandum and articles of association - Memorandum and articles of association as a statutory contract - Interpretation the memorandum and articles of association - Enforcement of memorandum and articles of association The Ultra Vires Doctrine Companys powers of borrowing and providing security

Objective: - To introduce the fundamental principles of company law i.e. the principle of the legal entity of a company, the basic factors which distinguish a company from a partnership and sole-proprietorship, types of companies, their formation and dissolution. Learning outcome: - To explain the meaning of legal entity of a company. - To discuss on how a company and its members are a separate legal entity and situations where the corporate veil can be lifted. - To list down the differences between a company, partnership and soleproprietorship. - To identify types of companies. - To discuss on the memorandum and articles of association and its legal effect.

Statute: Companie s Act 1965

Topic 9: PARTNERSHI P LAW

1. Definition and nature of partnership 2. Formation and duration of a partnership 3. Types of partners 4. Relations between partners and third parties 5. Liability of partners Ordinary torts Misapplication

Objective: - To introduce the nature and characteristics of partnerships, in particular, the rights and liabilities of a partner with respect to the other partner(s), and between partners and third parties, as well as the rules governing the formation, duration and dissolution of partnerships. Learning outcome: - To identify types of partners.

Statute: Partnershi p Act 1961

Misappropriation Contractual liability Criminal liability Duration of liability Liability of persons holding out Liability of retired partners 6. Relations of partners to one another 7. Partnership property 8. Shares in partnership and assignment 9. Dissolution of partnership Ways in which a partnership is dissolved Notice of dissolution Continuation of authority of partners Settlement of accounts after dissolution TEST REVISION WEEK EXAM WEEK

- To discuss on liability of partners. - To explain how a partnership be dissolved.

2 4