COMMERCIAL LAW I (CLA1501) Revision Questions & Answers

COMMERCIAL LAW I (CLA1501) Revision Questions & Answers CHAPTER 1 Question 1 Which ONE of the following is regarded in the South African law as a source of RomanDutch law: I. Law of the Twelve Tables 2. Institutions 3. Corpus Iuris Civilis 4. Commentarius ad Pandectas Question 2 Which ONE of the following is a principle that CANNOT be associated with the doctrine of stare decisis? 1. a High Court is bound by its own decisions until they are overruled by a superior court. 2. a High Court is bound by the decision of a court of concurrent status within its own area of jurisdiction. 3. a High Court, depending on how it is constituted, is bound by a decision of the Supreme Court of Appeal. 4. a High Court is not bound to follow the decision of a High Court of a different area of jurisdiction. Question 3 Belouxi is a coastal town situated on a deep bay. Whales migrate to Belouxi Bay annually to breed. This natural phenomenon has become a major tourist attraction. During the breeding season the whales are very sensitive to light and sound. The Belouxi community has always taken care to keep the noise level down in the bay area during the breeding season. Max decides to open a night club in the town. The community wants to close down the night club because they are afraid that the night club's pulsating music and flickering lights will discourage the whales from migrating to Belouxi Bay. Max avers that no legislation exists which restricts "noisy" business activities in the Belouxi Bay area. Consider the following: The court will acknowledge the validity of the Belouxi community's customs if it can, amongst other things, indicate that the prohibition on noise ... A. has existed for a long time. B. has been put in writing. C. will encourage the breeding of whales. D. is certain and clear. Which of the above is/are CORRECT? 1. only C and D are correct 2. only A, B and D are correct 3. only A and D are correct 4 all of the above are correct Question 4 Which ONE of the following statements is CORRECT? In Varvarigos v Fidelity Bank Ltd 1989 (4) SA 384 (W) ... 1. Fidelity Bank Ltd is the appellant. 2. Varvarigos is the defendant. 3. 1989 is the year in which the case was reported. 4. SA stands for the country in which the case was heard. 5. 384 is the number of the case. Question 5 Indicate the INCORRECT statement: 1. The Supreme Court of Appeal, which usually sits in Bloemfontein, has unlimited jurisdiction to hear appeals in civil and criminal proceedings. 2. A case relating to the interpretation of a will may be heard by a magistrate’s court. 3. The Constitutional Court has the final say in all matters relating to the interpretation, protection and enforcement of the provisions of the Constitution. 4. The Supreme Court of Appeal is a court of appeal for the High Courts. Question 6 Which ONE of the following legal systems is the basis of the South African legal system? 1. Dutch law. 2. Roman law. 3. English law. 4. Roman-Dutch law Question 7 Which ONE of the following is NOT an authoritative source of South African Law: 1. South African case law. 2. Corpus Iuris Civilis. 3. English case law. 4. The Constitution of the Republic of South Africa 108 of 1996. 5. Judgments of the Dutch courts before 1652. Question 8 Which ONE of the following statements regarding the stare decisis doctrine is INCORRECT? 1. A High Court, whether it is a full bench consisting of three judges, a bench of two judges or of only one, is bound by the decisions of the Supreme Court of Appeal. 2. One High Court is not bound to follow the decisions of a High Court from another area of jurisdiction. 3. Within the area of jurisdiction of one High Court, a bench of two judges is bound by a decision of the full bench of the same Court. 4. If the judgments of the High Courts are conflicting, a magistrate’s court can follow any decision he deems to be right irrespective of the jurisdiction in which he falls. Question 9 Which ONE of the following is NOT a requirement for a custom to be recognised as a legal rule? 1. It must have existed for a long time and be reasonable. 2. It must be generally recognised and observed by the community. 3. The contents thereof must be certain and clear. 4. A court must have recognised the cus