(6) Chan lost a diamond last month. Lam operates a jewellery shop and he obtained the diamond from a thief. Dai is a new friend of Lam. Last week, after his office hours, Lam met Dai at the hotel where Dai resided and showed Dai the diamond. Lam sold the diamond to Dai at a sum (HK$3,000) which was much less than the market price (HK$30,000). Three days later, Chan discovered the diamond was in Dai and intends to claim back the diamond from Dai. Which of the following can best describe the legal positions of Chan and Dai? (A) Chan can claim back the diamond because the diamond still belongs to Chan. (B) Chan can claim back the diamond because Dai cannot buy stolen goods and the Nemo Dat Rule applied and Dai can only claim Lam against the purchase price. (C) Chan cannot claim back the diamond because Dai bought the diamond in open shop and without doubts and notice of fact that the diamond was stolen. (D) Chan cannot claim back the diamond because Dai has paid the diamond fully and Lam should be responsible to Chan as Lam has breached statutory implied duty to sell the goods with title to Dai. Company incorporated with non-profit making purpose including charitable activities are commonly registered in Companies Registry as: (A) public company. (B) dormant company. (C) private company. (D) company limited by guarantee. Companies Ordinance provides that a company may by ___resolution to remove a director. (A) ordinary (B) special (C) extraordinary (D) majority (7) (8) (9) Which of the following is not an example of a contract? (A) The lease of a house. (B) The employment of an employee. (C) The purchase of food from a supermarket. (D) The payment of tax. (10) Which of the following statement(s) describe(s) correctly about misrepresentation under contract law? (1) Misrepresentation means a false statement of fact made by one party to another party and has the effect of inducing that party to make wrong decision to enter into contract. (2) Fraudulent misrepresentation occurs when one party makes representation with intent to deceive another misled party and with the knowledge that the statement is false. (A) (1) only (B) (2) only (C) None of the above (D) All of the above