Reg
Reg. No. ________
Karunya University
(Declared as Deemed to be University under Sec.3 of the UGC Act,
1956)Trimester Examination September / October 2009
Subject Title: BUSINESS LAW
Time : 3 hoursSubject Code: MS390
Maximum Marks: 100
Answer ALL questions (5 x 20 = 100 Marks)
1. Case study:(Compulsory)Carbolic Smoke BallA company called
the Carbolic Smoke Ball Ltd. was the manufacturer and vendor of a
medical preparation called the 'Carbolic Smoke Ball". The
contraption comprised of a hollow ball of rubber, with a nozzle at
the top. A certain medicinal powder had to be put inside the ball.
On compressing the ball, the powder was forced out in the form of a
cloud of infinitesimally small particles, resembling smoke. Thus,
the name 'Smoke Ball'. The carbolic smoke ball was to be used for
the treatment of cold and influenza. In the years 1890 and 1891-92,
influenza had spread like an epidemic in London. At the time, flu
was not necessarily life threatening, but it was debilitating. The
cause of influenza was not known and quack cures abounded. The
Carbolic Smoke Ball Ltd. had inserted the following advertisement
in the Pall Mall Gazette of November 13, 1891, and in some other
newspapers:A 100 reward will be paid by the Carbolic Smoke Ball
Company to any person who contracts the increasing epidemic
influenza, colds, or any disease caused by cold, after having used
the ball three times daily for two weeks, according to the printed
directions supplied with each ball. 1000 has been deposited with
the Alliance Bank, Regent Street, showing our sincerity in the
matter.
During the last epidemic of influenza, many thousands of
carbolic smoke balls had been sold as preventives against this
disease, and in no ascertained case was the disease contracted by
those using the carbolic smoke ball.
One carbolic smoke ball will last a family several months,
making it the cheapest remedy in the world at the price, 70s, post
free. The ball can be refilled at a cost of 5s, Address, Carbolic
Smoke Ball Company, 27, Princes Street, Hanover Square, London. A
lady, Edina Carlill had never had influenza before, but she was
anxious about preventing it in the future as well. She bought one
of the balls from a chemist, and used it as directed, three times a
day, from November 20, 1891 to January 17, 1892. Despite the proper
use of the smoke ball, not just for two weeks, but for two months,
she contracted influenza. She wrote a letter to the Carbolic Smoke
Ball Ltd., setting out the details of her purchase and the event of
her contracting influenza and claimed 'the 100 pounds promised in
your advertisement and in accordance with the contract between us.'
The company flatly refused to pay and Ms.Carlill went to the
court.
Questions for Exploration
a. Was the advertisement an offer?[P.T.O]b. To whom had the
offer been made?
c. Could the offer have been accepted so as to convert it into
an agreement?d. Acceptance of an offer needs to be communicated to
the person making the offer. Is the acceptance being notified?
2. a.According to Partnership act who are partners and who are
not partners?
b.State the kinds of partners.
c.Explain in detail about the Rights and Duties of partners.
(OR)
3.a.Define Negotiable Instrument.
b.Explain the essential features of a negotiable instrument.
4. a.Write a short-note on Company Act 1956.
b.State the types of companies.
c.Distinguish between partnership and a company.
(OR)
5.a.State the meaning of Intellectual Property rights.
b.Write in brief about the Patent act., Copy right act, Designs
act and Trade mark protection act connected with Intellectual
Property rights.
c.State rights of the Patentee.
6. Explain in detail about the Competition Law 2003.
(OR)
7.Explain in detail about the Foreign Exchange Management act
1999.
8.Critically evaluate the power of Central Government in
relation to protection of Environment and prevention of environment
pollution.
(OR)
9.a.State the objectives and scope of consumer protection act
1986
b.Define the following terms used under the consumer protection
act 1986:
Complaint
Goods
Services
Consumer Disputes
Restrictive trade practices
Unfair trade practices
Defect and
Deficiency
c.State the rights of consumers.
