LAW238 : Midterm Revision Exam

[CH1] Under the Material Theory, a transaction may be commercial even when a non-trader carries it out incidentally for one time, as long as it is commonly practiced in the commercial environment or classified as commercial by law or jurists.

[CH1] The main criticism of the Material Theory is that it narrows the scope of commercial law by excluding transactions carried out by non-traders.

[CH1] General average and the acceptance of stoppage in transit are among the legal features that emerged during the period of lex mercatoria.

[CH2] Where a private (local) custom and a general custom both exist, the Bahraini Law of Commerce gives preference to the general custom.

[CH2] Commercial usage has the same characteristics as commercial custom, except that traders do not believe its rules are legally binding.

[CH2] The Principles of Natural Law are the last source a Bahraini judge resorts to, applied only when all the other sources are silent.

[CH3] A contract concluded by an insane person before the registration of the interdiction decision is valid, unless his condition was commonly known at the time of contracting or the other party was aware of it.

[CH3] A minor who reaches the age of eighteen may practise trade on that basis alone, without needing any further authorization.

[CH3] When a minor or restrained person who practises trade is declared bankrupt, the bankruptcy covers only the funds invested in the business and does not lead to his imprisonment.

[CH4] The directors of a general partnership are considered traders because their liability extends to their personal funds.

[CH4] A commission agent contracts in the name of the principal, so third parties may take direct recourse against the principal.

[CH4] Liberal professionals such as doctors and lawyers are generally subject to civil law, but commercial law applies if the profession exceeds its scientific boundaries and speculation becomes the main factor.

[CH5] The Bahraini Law of Commerce adopts the objective criterion, treating a company as a trader only if it practises commercial activities professionally.

[CH6] The trademark is a non-material element of the business premises and can be transferred with the premises if they are sold.

[CH6] In a limited partnership, the name of a limited liability partner may appear in the commercial title without any effect on his liability.

[CH1] A teacher in Manama buys a used car once from a neighbour, intending to resell it at a profit. Under the Material Theory, how is the teacher's purchase classified?

[CH1] Which statement correctly describes the scope set by Article (1) of the Bahrain Law of Commerce?

[CH1] Rules created by medieval European merchants from their own customs, and applied to their disputes in special courts where the judges were traders, are known as:

[CH1] Which of the following is a harmonization mechanism, rather than one of the organizations that helped integrate lex mercatoria with national laws?

[CH2] Two traders signed a supply contract that is silent on a delivery issue, and no rule in the commercial legislation covers it. A long-established unwritten practice in the Manama market, which traders believe is binding, deals with the issue. What should the judge apply?

[CH2] A provision of the Law of Commerce states that persons collectively obliged in respect of a commercial debt are jointly liable, unless otherwise provided by the Law or by agreement of the parties. This provision is an example of:

[CH2] Bahrain has signed an international trade convention but has not yet ratified it or incorporated it into its domestic law. What is the legal effect of the convention in Bahrain?

[CH2] Which of the following is an example of regional commercial legislation?

[CH2] In Bahrain, civil law is applied according to written legislation rather than according to previous court cases. Which legal system does this reflect?

[CH3] Ali, aged 15, accepts a laptop as an unconditional gift from his uncle. What is the status of this contract?

[CH3] Sara, aged 17, sells a car she inherited. The deal is profitable and detrimental to her at the same time. What is the status of the contract?

[CH3] Yusuf was declared prodigal and the interdiction decision was registered. He then signed a contract that is absolutely prejudicial to him. What is the status of the contract?

[CH3] A feeble-minded person concludes a contract before the interdiction decision against him is registered. The contract is:

[CH4] Hassan is the CEO of a Bahraini joint stock company (B.S.C.). He manages it daily and receives a share of the profits. Is Hassan a trader?

[CH4] Salman, employed by a trader under an employment contract, signs a supply contract using only his own name, without mentioning his employer or that he is a commercial representative. What is the legal consequence?

[CH4] Which of the following is NOT one of the conditions a commercial agent must satisfy in Bahrain?

[CH4] Khalid searches for a buyer for a client's cargo of steel, brings the two parties together, and they sign the sale contract themselves. Khalid is paid a fee. Khalid is acting as a:

[CH4] Faisal registers a shop in his own name, but all profits go to his friend Omar, who stays hidden and bears the risks of the business. Under the Bahraini Law of Commerce:

[CH4] A carpenter in Muharraq began with hand tools, but he has now invested a large amount of capital, employs many workers and uses sophisticated machines. Which law applies to him?

[CH5] A Bahraini municipality runs a paid parking service and rents out shops in a public market. Which statement is correct?

[CH5] A company established by the State whose activities are mainly commercial business is, unless the law provides otherwise:

[CH5] According to the notes, at what point does a commercial company acquire legal personality?

[CH6] Ahmed Ali wants to register the commercial title "Ahmed Ali Electronics", but an identical title is already registered in the Commercial Registry for the same type of business. What must he do?

[CH6] The founders of a joint stock company want its commercial title to be derived from the name of one of them. When is this permitted?

[CH6] Al-Noor Trading W.L.L. issued invoices and advertisements that omitted the phrase "W.L.L." (with Limited Liability). Who bears the consequence towards third parties?

[CH1] Compare the Material Theory and the Personal Theory of commercial law in terms of their focus and their effect on the scope of commercial law, then explain which approach Bahraini law adopted and why.

[CH2] List the seven sources of commercial law in their correct order of priority, and explain why the judge must follow this order and why speed is necessary in resolving commercial disputes.

[CH2] Distinguish between mandatory and supplementary commercial legislation. Explain how one can determine whether a rule is mandatory, the purposes of mandatory rules, and what happens when a mandatory rule conflicts with another source of commercial law.

[CH3] Explain the legal effect of contracts concluded by a minor at the Non-Discretion Age and at the Discretion Age, and explain how a voidable contract of a minor can become valid.

[CH3] List the four conditions a natural person must satisfy to be considered a trader, explain the reason for distinguishing traders from non-traders, and justify why a guardian managing a minor's business is not a trader while the minor is.

[CH4] Compare the commercial representative, the commission agent and the broker in terms of in whose name and for whose account they act, whether they are considered traders, and their liability.

[CH5] Explain the two criteria for considering a legal person a trader and identify which one Bahrain adopted. Then compare the position of government ministries and municipalities with that of companies established by the State regarding trader status and trader obligations.

[CH6] Explain the legal requirements for the commercial title of each of the following: (a) a General Partnership Company, (b) a Limited Partnership, (c) a Joint Stock Company, and (d) a Company with Limited Liability.

[CH3] Is Mansoor considered a trader? Can he transfer the firm's debts and go to arbitration on his own, and what formalities apply to the court's orders concerning the firm?

[CH3] Noora is 19. Can she lawfully open and run her own perfume shop? Explain what she needs and the consequences once she qualifies.

[CH1] Evaluate Latifa's argument that only civil law should govern her side of the television contract under Bahraini law, and explain how the outcome would differ under a system that splits mixed contracts.

[CH4] Can Raj lawfully hold 60% of the capital of this company? Explain the rule and any exemption, and state whether the company's managers would be considered traders.

[CH4] Identify Bader's legal status and explain who is liable to the cement supplier, given the way Bader signed the contract.

[CH6] Can the customer claim the refund from the managers personally? Explain using the rules on the commercial title of this company.