QUESTION $2$

$(25$ Marks$)$

$2\mathrm{.}1$ Thando and Ayanda have noticed a surge in criminal activity around the shopping malls where their vending machines are located. This increase in theft and vandalism has raised concerns about the security of their vending machines and products. To safeguard their business, they are considering taking out insurance.

Advise Thando and Ayanda on the TWO $(2)$ main types of insurance available. You must also include TWO

$(10$ Marks$)$

$(2)$ practical examples to demonstrate your independent understanding of the respective types of insurances.

$2\mathrm{.}2$ Thando seeks insurance for their machines outside shopping malls in Durban. The insurance company requires certification that the machines comply with safety regulations, including proper installation and electrical wiring. Thando, having skipped certified installers to cut costs, falsely declares that all necessary certifications are in place. After a vandalism incident, Thando files a claim with the insurance.

Evaluate Thando's actions. You are to refer to the legal duties and implications which an insured bears upon

$(15$ Marks$)$

taking out insurance. You are also required to cite the applicable case law.

QUESTION $3$

$(25$ Marks$)$

Thando falls behind on rent payments for the property where the vending machines are installed, and the landlord decides to invoke the landlord's 'hypothec' to recover the arrears. Historically, Ayanda failed to provide any written notice or documentation to the landlord indicating that she owns the stock.

Ayanda phones you in a frantic state. She does not understand any legalities which are being stated to her regarding a hypothec.

You are required to provide legal assistance to Ayanda based on the above circumstances.

$3\mathrm{.}1$ Discuss what a 'hypothec' is in law. Provide examples to demonstrate your understanding.

$(5$ Marks$)$

$3\mathrm{.}2$ Explain the conditions that would need to apply for Ayanda's stock to fall under the hypothec. You are

$(15$ Marks$)$

required to cite the relevant case law.

$3\mathrm{.}3$ Determine whether Ayanda's stock inside the vending machines may be subject to the landlord's

$(5$ Marks$)$

hypothec.

QUESTION $4$

$(25$ Marks$)$

Ayanda has recently hired a new employee, Sam, to assist with restocking and maintaining the vending machines. Sam signed a contract of employment, but over the past few months, Ayanda has raised concerns about his performance. He frequently fails to restock the vending machines on time, disregards Ayanda's instructions about inventory management, and has been caught using the company van for personal errands without permission. She also overhead Sam telling his friend the trade secrets of the business, despite Sam having signed a Non$-$Disclosure Agreement $($NDA$).$

Ayanda is considering whether Sam has breached his duties as an employee under the contract of employment and is questioning whether disciplinary action is warranted.

$4\mathrm{.}1$ Outine the SEVEN $(7)$ duties of an employee. You are required to provide an example for each duty

$(15$ Marks$)$

which you have listed.

$4\mathrm{.}2$ Recommend an appropriate remedy to Ayanda based on the actions of Sam. You are required to fully

$(10$ Marks$)$

expand on this remedy and its requirements.