Question 1


Ahmad, Ah Chong and Samy wish to start up a new company. They are however confused as to which type of company to set up. They have a choice of Partnership, Sole-Proprietor and Corporation. They are unsure of the positive and negative issues that may be attached to each of these institutions.


Whilst the company was being set up, Ah Chong, left to Japan to purchase a building for business purpose for the company. In Japan, Ah Chong faced issues that he could not decide on, with regards to purchasing the building. He calls Ahmad and Samy but is unable to reach them. He makes a decision out of absolute necessity and purchases the building. Later Ahmad and Samy dispute this purchase.


Advise Ahmad, Ah Chong and Samy on the best form of business entity to set up.   (25 marks)


On the issue of purchasing the building, can Ah Chong be held liable?                      (25 marks)


Question 2


ABC University is expanding the campus. They employed XYZ company to carry out the work. XYZ company, failed to complete work stipulated in the contract of employment. ABC University wishes to sue XYZ company for its failure to complete the work on time.


John, a research student at the ABC University invents a car that can fly upwards like a drone. Andrew who was on the same project sells the idea to Microsoft Inc. John is furious.


Advise XYZ as to their liability under Employment Law with regards to the type of contract XYZ has signed with ABC University.                                                                        (25 marks)


John would like to know if he is able to sue Andrew for an infringement under law of intellectual property.