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Business Law - A08

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question A Consumer has the following rights
Correct Answer To get the education of the availability of legal
remedies , Seek redressal against unfair trade practices , To be informed
about quality, quantity, potency, purity, standard and price of goods
Your Answer To get the education of the availability of legal
remedies , Seek redressal against unfair trade practices , To be informed
about quality, quantity, potency, purity, standard and price of goods

Multiple Choice Multiple Answer
Question Agreement is a contract voidable at the option of the party
to an agreement to make a mistake as to
Correct Answer the agreement , the contract subject to a specific
conditions , the subject matter of the thing
Your Answer the contract subject to a specific conditions , the
subject matter of the thing , the substance of the thing which is subject
matter of the agreement

Multiple Choice Multiple Answer
Question Following are the conditions needed to prove an act of a
partner is an act of a partnership firm
Correct Answer such a act be done in a ordinary course of a
partnership firm , it must be related to the business of the firm , act must
have been done in the name and on behalf of the firm
Your Answer such a act be done in a ordinary course of a partnership
firm , it must be related to the business of the firm , act must have
been done in the name and on behalf of the firm

Select The Blank
Question Partnership business carried on continuous losses, the
court may order to ________ the firm.
Correct Answer dissolve
Your Answer dissolve

True/False
Question No company shall be registered by a name which, in the
opinion of the central government is undesirable.
Correct Answer True
Your Answer True

True/False
Question An insolvent person can accept or endorse a bill.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Following are the elements which constitute a partnership
Correct Answer there must be a contract regarding a partnership ,
there must be an association of two or more persons
Your Answer there must be a contract regarding a partnership , the
main object of carry on the business must be sharing of liabilities ,
there must be an association of two or more persons

Select The Blank
Question A valid tender of performance should be ________
Correct Answer unconditional
Your Answer unconditional

Multiple Choice Single Answer
Question The feature of the Contingent Contracts is that they
Correct Answer depend upon the circumstances, which makes them valid
or void
Your Answer depend upon the circumstances, which makes them valid or
void

Match The Following
Question Correct Answer Your Answer
Minor Partner Admitted for profits only Admitted for profits only
Dissolution of a Partnership Death or Insanity of the partners Death or
Insanity of the partners
Firm Partners Partners
Partner Agents of the firm Agents of the firm
Partnership Can be formed atWill Can be formed atWill

Multiple Choice Multiple Answer
Question Agent has duties towards principal including to
Correct Answer conducting principal's business , rendering accounts
to principal , communicating with the principal
Your Answer conducting principal's business , rendering accounts to
principal , communicating with the principal

True/False
Question Companies can be registered with undesirable names.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question A contract with a pardanashin woman can be presumed to have
been induced by
Correct Answer undue influence
Your Answer undue influence

Multiple Choice Single Answer
Question After the period of time is lapsed, the right to bring an
action is barred under the
Correct Answer Limitation Act
Your Answer Indian Contract Act

Multiple Choice Single Answer
Question The capacity to contract with an agent is the part of the
law of
Correct Answer statute
Your Answer agency

Multiple Choice Multiple Answer
Question Following persons can not be called partners
Correct Answer minors , insolvents , co-owners without the agreement
to carry on the business
Your Answer insolvents , co-onwers with the agreement to carry on
the business , co-owners without the agreement to carry on the business

Select The Blank
Question A firm is a name given to the partners ________
Correct Answer collectively
Your Answer collectively

Multiple Choice Single Answer
Question The partnership deed is required to drafted very carefully
and to be signed by
Correct Answer all the partners
Your Answer all the partners

Multiple Choice Single Answer
Question A cheque is dishonoured by
Correct Answer non payment only
Your Answer non payment only

Multiple Choice Multiple Answer
Question A company is
Correct Answer A company is , An artificial legal person , A
separate legal entity
Your Answer An artificial legal person , A separate legal entity

Select The Blank
Question Section 13 of the Negotiable Instrument Act gives ________
of Negotiable Instrument.
Correct Answer meaning
Your Answer meaning

True/False
Question General agents are the persons who enjoy a general
authority to do everything in the course of their agency.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question "An agreement creating and defining the obligations between
the parties is a contract", This was stated by
Correct Answer Sir John Salmond
Your Answer Sir John Salmond

Multiple Choice Multiple Answer
Question An unregistered firm can bring an action in any court of
Law against
Correct Answer a partner who steals the property of the partnership
firm , a partner who purposely damages the property of the partnership
firm
Your Answer a partner who steals the property of the partnership
firm , a partner who purposely damages the property of the partnership
firm , a partner who wrongfully deals with the assets of the firm

Multiple Choice Multiple Answer
Question Following are the persons who cannot enter into partnership
firm
Correct Answer A Burmese Buddhist husband and wife carrying on
business , the members of Hindu Undivided Family carrying on Family
business
Your Answer A Burmese Buddhist husband and wife carrying on business

True/False
Question An intention to create legal relations is one of the most
important criterions to establish a contract.
Correct Answer True
Your Answer False

Multiple Choice Multiple Answer
Question Following are the agencies of a three tier system of
consumer disputes redressal agencies
Correct Answer State commission , National commission , District
Forum
Your Answer State commission , National commission , District Forum

Multiple Choice Single Answer
Question Misrepresentation means and includes
Correct Answer positive assertion of that which is not true
Your Answer positive assertion of that which is not true

Multiple Choice Single Answer
Question Consumer Dispute Redressal Forum is a District Forum
established by
Correct Answer the State Govt. in each District of the State by
Notification
Your Answer the State Govt. in each District of the State by
Notification

Select The Blank
Question An order of the court asking a person to do or to abstain
from doing a particular act, which is the subject matter of the
contract, is known as ________.
Correct Answer Injuction
Your Answer Injuction

Multiple Choice Multiple Answer
Question In a sale if the seller becomes insolvent after a contract
of sale and the buyer has paid the price, the buyer can claim the goods
from the
Correct Answer Official Assignee , Receiver
Your Answer Official Assignee , Receiver

Multiple Choice Single Answer
Question A finder of goods is subject to the responsibility as a
Correct Answer bailee
Your Answer bailee

True/False
Question Where a cheque is crossed specially, the banker to whom it
is crossed may again cross it specially to another banker, his agent,
for collection.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question In India, some of Negotiable Instruments by usage or custom
of trade are
Correct Answer Government promissory notes , Bankers drafts , Pay
off orders
Your Answer Government promissory notes , Bankers drafts , Pay off
orders

Select The Blank
Question A Company subject to the provisions of section 32 of the
companies act as unlimited may register under this Act as a ________
Correct Answer Limited company
Your Answer Limited company

Multiple Choice Single Answer
Question A sale which is a public sale where various buyers try to
buy the goods by outbidding each other is known as
Correct Answer Auction sale
Your Answer Auction sale

True/False
Question Minor do not have the right of access to and to inspect and
copy any of the books of the firm
Correct Answer True
Your Answer False

Match The Following
Question Correct Answer Your Answer
Fact and Law The types of "Mistake" The types of "Mistake"
An order of the court asking a person to do or abstain from doing a
particular act, which is the subject matter of the contract Injuction
Order Injuction Order
The Indian Contract Act, 1872 applies to whole of India except the
state of Jammu and Kashmir Applicability Sector 63
An agreement enforceable by law Contract Contract

Select The Blank
Question The ________ of 1986 is basically passed to protect the
interest of the consumer.
Correct Answer Consumer Protection Act
Your Answer Consumer Protection Act

True/False
Question When agents delegate their authority to another for a
particular period for a particular task, they appoint substituted agents.
Correct Answer True
Your Answer False

Multiple Choice Multiple Answer
Question The memorandum of Association is the most important
document, it acts out
Correct Answer The constitution , The formation , The objectives
Your Answer The constitution , The objectives , The preamble

Select The Blank
Question The Articles of Association controls ________ operations of
the company.
Correct Answer internal
Your Answer internal

True/False
Question Subsidiary company can hold shares and can acquire
membership of the holding company.
Correct Answer False
Your Answer True

True/False
Question The company cannot exceed the powers conferred on it by its
memorandum
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question According to the Consumer Protection Act, 1986, a service
includes
Correct Answer Financial service , Entertainment
Your Answer Financial service , Entertainment

Select The Blank
Question Any person who is of age of majority according to the law
to which he is a subject, may ________ an agent.
Correct Answer appoint
Your Answer appoint

Select The Blank
Question A ________ is an artificial person and has a legal entity.
Correct Answer Company
Your Answer Company
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question Memorandum of a public company must be signed by
Correct Answer Seven persons
Your Answer Seven persons

Match The Following
Question Correct Answer Your Answer
Unascertained goodsGeneric goods Generic goods
Unpaid seller Right of lien on goods Right of lien on goods
Future goods Agreement to sell Agreement to sell
Identified goods Ascertained goods Ascertained goods

Match The Following
Question Correct Answer Your Answer
Fact and Law The types of "Mistake" The types of "Mistake"
An order of the court asking a person to do or abstain from doing a particular
act, which is the subject matter of the contract Injuction Order
Injuction Order
The Indian Contract Act, 1872 applies to whole of India except the state of
Jammu and Kashmir Applicability Sector 63
An agreement enforceable by law Contract Contract

Select The Blank
Question Members of a club or a society are the ________ of
each other.
Correct Answer friends
Your Answer representatives

True/False
Question There are two types or kinds of capital of a company, i.e.
owned capital and borrowed capital.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Following are the essential of Undue influence
Correct Answer there must be some relationship between the parties , It
is mainly of moral character
Your Answer intention to induce someone to enter into an agreement ,
threatening to detain property, unlawfully

Multiple Choice Multiple Answer
Question Consent is free when it is not caused by
Correct Answer Undue influence , Fraud , Mistake
Your Answer Compulsion , Undue influence , Fraud

Select The Blank
Question A proposal comes to an end by its ________.
Correct Answer rejection
Your Answer acceptance

Multiple Choice Single Answer
Question In an agreement to sell the seller is responsible for all the
risk of loss as he is the
Correct Answer Owner
Your Answer Owner

Multiple Choice Multiple Answer
Question The modes of termination of agency are
Correct Answer By completion of the agency business , By death of
principal , By expiry of period or time
Your Answer By completion of the agency business , By death of
principal , By expiry of period or time

Multiple Choice Multiple Answer
Question Fraud means and includes following act -
Correct Answer promise to deceive other party , promise without
intending to perform
Your Answer promise to deceive other party , concealing a fact
believing to be untrue , promise without intending to perform

Multiple Choice Multiple Answer
Question There can not be any partnership where a business is
carried on
Correct Answer with a benevolent purpose , where any one of the
partners is entitled to total profit earned
Your Answer with a benevolent purpose , where any one of the
partners is entitled to total profit earned

True/False
Question The company law board confirms the change of
registered office of the company within a state
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Articles of Association contains
Correct Answer Regulations of the company , Internal affairs of the
company , Conduct of company's business
Your Answer Internal affairs of the company , Conduct of company's
business

Select The Blank
Question Unpaid seller's right to stop the goods in transit arises
only when the buyer is ________
Correct Answer Bankrupt
Your Answer Bankrupt

Multiple Choice Multiple Answer
Question An unregistered firm can bring an action in criminal
court against
Correct Answer A partner who steals the property of the partnership
firm , A partner who purposely damages the property of the partnership firm
Your Answer A partner who wrongful deals with the assets of the firm
, A partner who uses the firm name for gaining personal profits

True/False
Question A sale is an executed contract whereas an agreement to
sell is an executory contract.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question In the absence of usage or custom of trade to the
contrary, the implied authority of a partner does not empower him to
Correct Answer acquire movable property on behalf of the firm , transfer
movable property belonging to the firm
Your Answer acquire movable property on behalf of the firm , transfer
movable property belonging to the firm

Multiple Choice Single Answer
Question Where the transfer of property in the goods is to take
place at a future time it is called
Correct Answer Agreement to sell
Your Answer Agreement to sell

Multiple Choice Single Answer
Question A consumer has the right to be assured, wherever
possible, access to services at
Correct Answer Competitive prices
Your Answer Competitive prices

True/False
Question An agreement to sell takes place in the case of existing
goods or specific goods.
Correct Answer False
Your Answer False

True/False
Question Railway or S.T. Receipts, Dividend,Warrants, Railway
Bonds are not Negotiable Instrument.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question In the absence of usage or custom of trade to the
contrary, the implied authority of a partner does not empower him to
Correct Answer Acquire movable property on behalf of the firm ,
transfer movable property belonging to the firm
Your Answer Acquire movable property on behalf of the firm ,
transfer movable property belonging to the firm

Select The Blank
Question Holding out means ________ leading another person
to believe in something.
Correct Answer falsely
Your Answer properly

True/False
Question Directors of a private company need to file their consent
with the registrar to act as director or sign an undertaking.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Following persons can not be called partners
Correct Answer minors , insolvents , co-owners without the agreement to
carry on the business
Your Answer minors , insolvents , co-owners without the agreement to
carry on the business

Multiple Choice Multiple Answer
Question The memorandum of every company shall state
Correct Answer The name of the company , The registered office , The
main objects
Your Answer The name of the company , The registered office , The
main objects

Multiple Choice Multiple Answer
Question In the absence of usage or custom of trade to the
contrary, the implied authority of a partner does not empower him to
Correct Answer Admit any liability in a suit or proceedings against the
firm , Transfer movable property belonging to the firm ,Withdraw a suit or
proceeding filed on behalf of the firm
Your Answer Acquire movable property on behalf of the firm ,
Transfer movable property belonging to the firm

True/False
Question Partnership is nothing but a psychological relationship
existing between the partners.
Correct Answer False
Your Answer False

True/False
Question Section 10 of the Indian Contract Act, 1872 applies to
contract of sale.
Correct Answer True
Your Answer False

Multiple Choice Multiple Answer
Question The companies having Articles are
Correct Answer Unlimited Company , Company limited by guarantee ,
Company limited by shares
Your Answer Public Limited Company , Company limited by
guarantee

Multiple Choice Multiple Answer
Question The very important stages in the connection of
formation of a company are
Correct Answer Promotion , Registration , Floatation
Your Answer Promotion , Registration , Floatation

Multiple Choice Multiple Answer
Question Following are the conditions needed to prove an act of a
partner is an act of a partnership firm
Correct Answer such a act be done in a ordinary course of a partnership
firm , it must be related to the business of the firm , act must have been done
in the name and on behalf of the firm
Your Answer such a act be done in a ordinary course of a partnership
firm , it must be related to the business of the firm , act must have been done
in the name and on behalf of the firm

Select The Blank
Question The registration fo partnership firm is ________.
Correct Answer not compulsory
Your Answer not compulsory

Multiple Choice Multiple Answer
Question There was a contract for sale of goods. Delivery was to
be given in october. Owing to a strike in the port of loading, the goods were
not shipped until November. The buyers are entitled to
Correct Answer Repudiate the contract , Recind the contract
Your Answer Modify the contract

Multiple Choice Single Answer
Question A proposes by a letter sent by post to sell a house to B at
certain price, B accepts A's proposal - The communication of the acceptance is
complete as against B.
Correct Answer when letter is received by A
Your Answer when letter is received by A

True/False
Question Copies of memorandum and articles shall not be given to
members.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question Every company must have
Correct Answer A Specific name
Your Answer A Specific name

Multiple Choice Multiple Answer
Question A company may, by special resolution, alter the
provisions of its memorandum so as to change the objects of the company so
far as may be required to enable it
Correct Answer Carry on its business more economically , Amalgamate
with any other company , Attain its main purpose by new or improved means
Your Answer To amend conditions expressly provided in other Acts ,
Amalgamate with any other company , Attain its main purpose by new or
improved means

Select The Blank
Question Under ________ influence the dominant party may
hold a real authority over the other party.
Correct Answer undue
Your Answer undue

Multiple Choice Single Answer
Question The capacity to contract with an agent is the part of the
law of
Correct Answer statute
Your Answer agency

Select The Blank
Question Karta of Joint-Hindu family is ________ of his family.
Correct Answer representative
Your Answer representative

Multiple Choice Single Answer
Question A breach of a condition may be treated as breach of
Correct Answer Warranty
Your Answer Warranty

Multiple Choice Multiple Answer
Question Following are the elements which constitute a
partnership
Correct Answer there must be a contract regarding a partnership , there
must be an association of two or more persons
Your Answer there must be a contract regarding a partnership , there
must be an association of two or more persons

Multiple Choice Single Answer
Question Mr. Manik appoints Mr. Naveen as his agent to sell the
goods at Rs.10,000/- on his behalf. Mr. Naveen sells the goods for Rs.12,000/-
who is liable to account for it to
Correct Answer Mr. Naveen
Your Answer Mr. Manik himself

Select The Blank
Question The ________ of 1986 is basically passed to protect the
interest of the consumer.
Correct Answer Consumer Protection Act
Your Answer Consumer Protection Act

Select The Blank
Question A company is a ________ company if the holding
company controls the majority composition of its board of directors.
Correct Answer subsidiary
Your Answer subsidiary
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Agreement is defined as a contract at its inception.
Correct Answer True
Your Answer True

Select The Blank
Question ________ is the ________ method of voting with the
rule "one share one vote "
Correct Answer poll
Your Answer poll
Correct Answer capitalistic
Your Answer individualised

Multiple Choice Single Answer
Question Agency can be created by
Correct Answer Operation of law
Your Answer Operation of law

Multiple Choice Single Answer
Question Where the property in goods sold has been passed, the
unpaid seller has the
Correct Answer right to stop goods in transit
Your Answer right to stop goods in transit

True/False
Question A minor may draw, endorse, deliver and negotiate a
negotiable instrument to bind other parties except himself
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Dissolution by the order of the Court at the suit of a
partner on certain grounds, which include
Correct Answer Willful or persistent breach of agreement by a partner
Your Answer Willful or persistent breach of agreement by a partner

Select The Blank
Question The agency can be ________ At any time by
________ agreement between the principal and his agent.
Correct Answer terminated
Your Answer individual
Correct Answer mutual
Your Answer mutual

Multiple Choice Multiple Answer
Question The requirement of valid Memorandum of Association
are that it
Correct Answer is to be signed by at least seven persons in case of public
company , is to be signed by at least two persons in case of private company
Your Answer is to be signed by at least seven persons in case of public
company , is to be signed by at least two persons in case of private company

Match The Following
Question Correct Answer Your Answer
An Outsider or a stranger who holds himself out or represents himself to be a
partner of the partnership firm and induces outsider to give credit to the firm
partner by estoppel partner by estoppel
A person who becomes a partner by entering into partnership agreement & is
actual engaged in the conduct and management of the partnership business
Ostensible partner Ostensible partner
A person who only lends his name to the partnership firm but does not invest
any capital in the firm nor does take any interest in the affairs of the firm
Nominal Partner Nominal Partner
When partners agree to share the profits of the partnership firm with any
outsider, such An outsider is known as Sub-Partner Sub-Partner
A partner whose existence in the firm is kept secret from the outside world
Dormant Partner Dormant Partner

Multiple Choice Multiple Answer
Question Following are the conditions needed to prove an act of a
partner is an act of a partnership firm
Correct Answer such a act be done in a ordinary course of a partnership
firm , it must be related to the business of the firm , act must have been done
in the name and on behalf of the firm
Your Answer such a act be done in a ordinary course of a partnership
firm , it must be related to the business of the firm , act must have been done
in the name and on behalf of the firm

Multiple Choice Multiple Answer
Question A consumer is
Correct Answer Nominee under a policy of life insurance , A Railway
passenger , An employee who is member of Employees Provident Fund
Scheme
Your Answer Nominee under a policy of life insurance , A Railway
passenger , An employee who is member of Employees Provident Fund
Scheme

Multiple Choice Multiple Answer
Question Following are the elements which constitute a
partnership
Correct Answer there must be a contract regarding a partnership , there
must be an association of two or more persons
Your Answer there must be a contract regarding a partnership , there
must be an association of two or more persons

Select The Blank
Question A meeting is ________ of a number of persons for
________ a lawful business having certain purpose or purposes
Correct Answer an assembly
Your Answer an assembly
Correct Answer transacting
Your Answer transacting

Multiple Choice Multiple Answer
Question Following are the conditions to be fulfilled before a seller
can be deemed to be an unpaid seller
Correct Answer he must have an immediate right of action for the price ,
he must have sold goods against cash and the price must be due
Your Answer he must have an immediate right of action for the price ,
he must have refused payment when tendered , he must have sold goods
against cash and the price must be due

Multiple Choice Multiple Answer
Question Following are the examples of statutory companies
Correct Answer Reserve Bank Of India , Unit Trust Of India
Your Answer Reserve Bank Of India , Unit Trust Of India

Multiple Choice Multiple Answer
Question Following persons can not be called partners
Correct Answer minors , insolvents , co-owners without the agreement to
carry on the business
Your Answer minors , co-owners without the agreement to carry on
the business

Match The Following
Question Correct Answer Your Answer
Sale Exchange of goods for price Exchange of goods for price
Barter Exchange Exchange of goods for goods Exchange of goods for
goods
Sale of Goods Act, 1930 Movable goods Movable goods
Caveat Emptor Let the buyer bewareLet the buyer beware
Quiet possession Implied Warranty Implied Warranty

Multiple Choice Single Answer
Question A consumer has right to be assured, wherever possible,
access to services at
Correct Answer competitive prices
Your Answer competitive prices

Multiple Choice Multiple Answer
Question Following are the characteristics of partnership at will
Correct Answer partners are always free to break their relationship at
their whim , it is for indefinite period
Your Answer partners are always free to break their relationship at
their whim , it is for indefinite period

True/False
Question A commission agent is generally appointed for selling
and buying goods on behalf of his principal
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Transmission of shares takes place due to
Correct Answer death of a member , insolvency of a member , lunacy of a
member
Your Answer death of a member , lunacy of a member , minority of a
member

Multiple Choice Multiple Answer
Question In the absence of usage or custom of trade to the
contrary, the implied authority of a partner does not empower him to
Correct Answer acquire movable property on behalf of the firm , transfer
movable property belonging to the firm
Your Answer acquire movable property on behalf of the firm , admit
any liability in a suit or proceedings against the firm , transfer movable
property belonging to the firm

Multiple Choice Multiple Answer
Question Following are the persons who cannot enter into
partnership firm
Correct Answer A Burmese Buddhist husband and wife carrying on
business , the members of Hindu Undivided Family carrying on Family
business
Your Answer A Burmese Buddhist husband and wife carrying on
business , the members of Hindu Undivided Family carrying on Family
business

Multiple Choice Multiple Answer
Question The maker, acceptor or endorser respectively of a
negotiable instrument is discharged from liability thereon by
Correct Answer release , payment , non cancellation
Your Answer non-acceptance , release , payment

Multiple Choice Single Answer
Question The National Commission shall decide the complaint as
far as possible within a period of
Correct Answer three months from the date of notice received by the
opposite party
Your Answer three months from the date of notice received by the
opposite party

Select The Blank
Question When the ________ of a bill is ‘for collection only’ the
endorsee cannot be a ________
Correct Answer Endorsement
Your Answer Endorsement
Correct Answer holder
Your Answer holder

Select The Blank
Question Un-called capital is the part of ________ and
________ capital which has not been called up.
Correct Answer issued
Your Answer issued
Correct Answer subscribed
Your Answer subscribed

True/False
Question Special Notice and Special Resolution mean one and the
same.
Correct Answer False
Your Answer True

Select The Blank
Question ________ Trade Practice is a trade practice which for
the purpose of promoting a sale, use or supply of any goods or for the
provision of any service adopts any ________ practice.
Correct Answer unfair
Your Answer unfair
Correct Answer deceptive
Your Answer deceptive

True/False
Question Consumer is a person who procures service under a
contract of personal service
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Property of the company is the property of
Correct Answer Promoters before the existence of the company , the
company itself after its incorporation
Your Answer its share-holders , Board of Directors , Promoters before
the existence of the company

True/False
Question English Law does not recognize Formal Contract
Correct Answer False
Your Answer False

Select The Blank
Question Reserved capital is the part of ________ capital which
can only be called up at the time of & for the purpose of ________ the
company
Correct Answer uncalled
Your Answer uncalled
Correct Answer winding up
Your Answer winding up

True/False
Question The partners need not sign the partnership deed.
Correct Answer False
Your Answer False

Select The Blank
Question When the person to whom the proposal is made
________ his assent thereto, the proposal is said to be ________
Correct Answer Signifies
Your Answer Accepted
Correct Answer Accepted
Your Answer Declared

Multiple Choice Multiple Answer
Question Goods includes
Correct Answer trade marks , good will
Your Answer actionable claims , money

Multiple Choice Multiple Answer
Question Characteristics Articles of Association are
Correct Answer it contains rule for the internal management of the
affairs of the company , it is subordinate to the Memorandum of Association
Your Answer contains objectives for which the company is established
, it contains rule for the internal management of the affairs of the company , it
is subordinate to the Memorandum of Association

Select The Blank
Question ________ implies committing or threatening to
commit any act ________ by the Indian Penal Code.
Correct Answer Coercion
Your Answer Coercion
Correct Answer forbidden
Your Answer forbidden

Select The Blank
Question ________ is an invitation made to the ________
Correct Answer Prospectus
Your Answer Prospectus
Correct Answer public
Your Answer public

Multiple Choice Single Answer
Question A factor is a type of
Correct Answer Mercantile Agent
Your Answer Mercantile Agent

True/False
Question Agents acting jointly and severally are known as
co-agents
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Enforcement of contingent contract depends on
Correct Answer Happening or Non-happening of the event
Your Answer Happening of the event

Multiple Choice Single Answer
Question In a sale, if the buyer becomes insolvent before he pays
the price of the goods purchased, the person who can claim the delivery of the
goods as the property in goods has been already transferred as a
Correct Answer official assignee or receiver
Your Answer official assignee or receiver

Select The Blank
Question When the ________ of contract becomes ________ ,
such contract need not be performed
Correct Answer performance
Your Answer cancellation
Correct Answer impossible
Your Answer possible

True/False
Question A Cheque can be bearer, Order or crossed
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Following is an implied condition.
Correct Answer Condition as to sale by sample
Your Answer Condition as to sale by sample

Multiple Choice Single Answer
Question Dissolution by voluntary act of the partners, which
includes
Correct Answer dissolution by agreement
Your Answer dissolution by agreement
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Agreement is defined as a contract at its inception.
Correct Answer True
Your Answer True

Select The Blank
Question ________ is the ________ method of voting with the
rule "one share one vote "
Correct Answer poll
Your Answer poll
Correct Answer capitalistic
Your Answer individualised

Multiple Choice Single Answer
Question Agency can be created by
Correct Answer Operation of law
Your Answer Operation of law

Multiple Choice Single Answer
Question Where the property in goods sold has been passed, the
unpaid seller has the
Correct Answer right to stop goods in transit
Your Answer right to stop goods in transit

True/False
Question A minor may draw, endorse, deliver and negotiate a
negotiable instrument to bind other parties except himself
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Dissolution by the order of the Court at the suit of a
partner on certain grounds, which include
Correct Answer Willful or persistent breach of agreement by a partner
Your Answer Willful or persistent breach of agreement by a partner

Select The Blank
Question The agency can be ________ At any time by
________ agreement between the principal and his agent.
Correct Answer terminated
Your Answer individual
Correct Answer mutual
Your Answer mutual

Multiple Choice Multiple Answer
Question The requirement of valid Memorandum of Association
are that it
Correct Answer is to be signed by at least seven persons in case of public
company , is to be signed by at least two persons in case of private company
Your Answer is to be signed by at least seven persons in case of public
company , is to be signed by at least two persons in case of private company

Match The Following
Question Correct Answer Your Answer
An Outsider or a stranger who holds himself out or represents himself to be a
partner of the partnership firm and induces outsider to give credit to the firm
partner by estoppel partner by estoppel
A person who becomes a partner by entering into partnership agreement & is
actual engaged in the conduct and management of the partnership business
Ostensible partner Ostensible partner
A person who only lends his name to the partnership firm but does not invest
any capital in the firm nor does take any interest in the affairs of the firm
Nominal Partner Nominal Partner
When partners agree to share the profits of the partnership firm with any
outsider, such An outsider is known as Sub-Partner Sub-Partner
A partner whose existence in the firm is kept secret from the outside world
Dormant Partner Dormant Partner

Multiple Choice Multiple Answer
Question Following are the conditions needed to prove an act of a
partner is an act of a partnership firm
Correct Answer such a act be done in a ordinary course of a partnership
firm , it must be related to the business of the firm , act must have been done
in the name and on behalf of the firm
Your Answer such a act be done in a ordinary course of a partnership
firm , it must be related to the business of the firm , act must have been done
in the name and on behalf of the firm

Multiple Choice Multiple Answer
Question A consumer is
Correct Answer Nominee under a policy of life insurance , A Railway
passenger , An employee who is member of Employees Provident Fund
Scheme
Your Answer Nominee under a policy of life insurance , A Railway
passenger , An employee who is member of Employees Provident Fund
Scheme

Multiple Choice Multiple Answer
Question Following are the elements which constitute a
partnership
Correct Answer there must be a contract regarding a partnership , there
must be an association of two or more persons
Your Answer there must be a contract regarding a partnership , there
must be an association of two or more persons

Select The Blank
Question A meeting is ________ of a number of persons for
________ a lawful business having certain purpose or purposes
Correct Answer an assembly
Your Answer an assembly
Correct Answer transacting
Your Answer transacting

Multiple Choice Multiple Answer
Question Following are the conditions to be fulfilled before a seller
can be deemed to be an unpaid seller
Correct Answer he must have an immediate right of action for the price ,
he must have sold goods against cash and the price must be due
Your Answer he must have an immediate right of action for the price ,
he must have refused payment when tendered , he must have sold goods
against cash and the price must be due

Multiple Choice Multiple Answer
Question Following are the examples of statutory companies
Correct Answer Reserve Bank Of India , Unit Trust Of India
Your Answer Reserve Bank Of India , Unit Trust Of India

Multiple Choice Multiple Answer
Question Following persons can not be called partners
Correct Answer minors , insolvents , co-owners without the agreement to
carry on the business
Your Answer minors , co-owners without the agreement to carry on
the business

Match The Following
Question Correct Answer Your Answer
Sale Exchange of goods for price Exchange of goods for price
Barter Exchange Exchange of goods for goods Exchange of goods for
goods
Sale of Goods Act, 1930 Movable goods Movable goods
Caveat Emptor Let the buyer bewareLet the buyer beware
Quiet possession Implied Warranty Implied Warranty

Multiple Choice Single Answer
Question A consumer has right to be assured, wherever possible,
access to services at
Correct Answer competitive prices
Your Answer competitive prices

Multiple Choice Multiple Answer
Question Following are the characteristics of partnership at will
Correct Answer partners are always free to break their relationship at
their whim , it is for indefinite period
Your Answer partners are always free to break their relationship at
their whim , it is for indefinite period

True/False
Question A commission agent is generally appointed for selling
and buying goods on behalf of his principal
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Transmission of shares takes place due to
Correct Answer death of a member , insolvency of a member , lunacy of a
member
Your Answer death of a member , lunacy of a member , minority of a
member

Multiple Choice Multiple Answer
Question In the absence of usage or custom of trade to the
contrary, the implied authority of a partner does not empower him to
Correct Answer acquire movable property on behalf of the firm , transfer
movable property belonging to the firm
Your Answer acquire movable property on behalf of the firm , admit
any liability in a suit or proceedings against the firm , transfer movable
property belonging to the firm

Multiple Choice Multiple Answer
Question Following are the persons who cannot enter into
partnership firm
Correct Answer A Burmese Buddhist husband and wife carrying on
business , the members of Hindu Undivided Family carrying on Family
business
Your Answer A Burmese Buddhist husband and wife carrying on
business , the members of Hindu Undivided Family carrying on Family
business

Multiple Choice Multiple Answer
Question The maker, acceptor or endorser respectively of a
negotiable instrument is discharged from liability thereon by
Correct Answer release , payment , non cancellation
Your Answer non-acceptance , release , payment

Multiple Choice Single Answer
Question The National Commission shall decide the complaint as
far as possible within a period of
Correct Answer three months from the date of notice received by the
opposite party
Your Answer three months from the date of notice received by the
opposite party

Select The Blank
Question When the ________ of a bill is ‘for collection only’ the
endorsee cannot be a ________
Correct Answer Endorsement
Your Answer Endorsement
Correct Answer holder
Your Answer holder

Select The Blank
Question Un-called capital is the part of ________ and
________ capital which has not been called up.
Correct Answer issued
Your Answer issued
Correct Answer subscribed
Your Answer subscribed

True/False
Question Special Notice and Special Resolution mean one and the
same.
Correct Answer False
Your Answer True

Select The Blank
Question ________ Trade Practice is a trade practice which for
the purpose of promoting a sale, use or supply of any goods or for the
provision of any service adopts any ________ practice.
Correct Answer unfair
Your Answer unfair
Correct Answer deceptive
Your Answer deceptive

True/False
Question Consumer is a person who procures service under a
contract of personal service
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Property of the company is the property of
Correct Answer Promoters before the existence of the company , the
company itself after its incorporation
Your Answer its share-holders , Board of Directors , Promoters before
the existence of the company

True/False
Question English Law does not recognize Formal Contract
Correct Answer False
Your Answer False

Select The Blank
Question Reserved capital is the part of ________ capital which
can only be called up at the time of & for the purpose of ________ the
company
Correct Answer uncalled
Your Answer uncalled
Correct Answer winding up
Your Answer winding up

True/False
Question The partners need not sign the partnership deed.
Correct Answer False
Your Answer False

Select The Blank
Question When the person to whom the proposal is made
________ his assent thereto, the proposal is said to be ________
Correct Answer Signifies
Your Answer Accepted
Correct Answer Accepted
Your Answer Declared

Multiple Choice Multiple Answer
Question Goods includes
Correct Answer trade marks , good will
Your Answer actionable claims , money

Multiple Choice Multiple Answer
Question Characteristics Articles of Association are
Correct Answer it contains rule for the internal management of the
affairs of the company , it is subordinate to the Memorandum of Association
Your Answer contains objectives for which the company is established
, it contains rule for the internal management of the affairs of the company , it
is subordinate to the Memorandum of Association

Select The Blank
Question ________ implies committing or threatening to
commit any act ________ by the Indian Penal Code.
Correct Answer Coercion
Your Answer Coercion
Correct Answer forbidden
Your Answer forbidden

Select The Blank
Question ________ is an invitation made to the ________
Correct Answer Prospectus
Your Answer Prospectus
Correct Answer public
Your Answer public

Multiple Choice Single Answer
Question A factor is a type of
Correct Answer Mercantile Agent
Your Answer Mercantile Agent

True/False
Question Agents acting jointly and severally are known as
co-agents
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Enforcement of contingent contract depends on
Correct Answer Happening or Non-happening of the event
Your Answer Happening of the event

Multiple Choice Single Answer
Question In a sale, if the buyer becomes insolvent before he pays
the price of the goods purchased, the person who can claim the delivery of the
goods as the property in goods has been already transferred as a
Correct Answer official assignee or receiver
Your Answer official assignee or receiver

Select The Blank
Question When the ________ of contract becomes ________ ,
such contract need not be performed
Correct Answer performance
Your Answer cancellation
Correct Answer impossible
Your Answer possible

True/False
Question A Cheque can be bearer, Order or crossed
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Following is an implied condition.
Correct Answer Condition as to sale by sample
Your Answer Condition as to sale by sample

Multiple Choice Single Answer
Question Dissolution by voluntary act of the partners, which
includes
Correct Answer dissolution by agreement
Your Answer dissolution by agreement
LIST OF ATTEMPTED QUESTIONS AND ANSWERS BL1

Match The Following
Question Correct Answer Your Answer
Unascertained goods Generic goods Generic goods
Unpaid seller Right of lien on goods Right of lien on goods
Future goods Agreement to sell Agreement to sell
Identified goods Ascertained goods Ascertained goods

Multiple Choice Single Answer
Question A condition may be reduced to where goods are
Correct Answer Goods are accepted by the buyer
Your Answer Goods are accepted by the buyer

Multiple Choice Single Answer
Question Consideration or object of an agreement is lawful unless it is
Correct Answer forbidden by law
Your Answer denied by law

Multiple Choice Multiple Answer
Question A condition is a type of stipulation and has following
characteristics
Correct Answer It is of the subsidiary character , A breach of it gives the
suffered party the one & only one right to repudiate the contract
Your Answer It is of fundamental in nature , It directly goes to the root of
the contract , A breach of it gives the suffered party the one & only one right to
repudiate the contract

Multiple Choice Single Answer
Question When the property in goods is transferred from the seller to the
buyer at once, the contract is called
Correct Answer A Sale
Your Answer A Sale

True/False
Question Partners can decide their rights and liabilities in the partnership
deed.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Amendments made in the Consumer Protection Act in 1993 are
Correct Answer To add "services" relating to housing constructions , To
enable filing class action complaints , To impose punishment on the
complainant in cases of vexatious complaint.
Your Answer To add "services" relating to housing constructions , To enable
filing class action complaints , To impose punishment on the complainant in
cases of vexatious complaint.

Multiple Choice Multiple Answer
Question The unpaid seller loses his lien on the goods sold when
Correct Answer he delivers the goods to a carrier for the purpose of
transmission to buyer and do not reserves the right of disposal of the goods ,
the seller voluntarily abandons his right of lien on goods
Your Answer he delivers the goods to a carrier for the purpose of
transmission to buyer and do not reserves the right of disposal of the goods ,
the seller voluntarily abandons his right of lien on goods

Select The Blank
Question Issued capital can be defined as the ________ of shares which
are offered to the public for subscription.
Correct Answer nominal value
Your Answer nominal value

Select The Blank
Question When the notice of stoppage in transit is given by the seller to the
________in possession of goods, the latter must re-deliver the goods to the
seller.
Correct Answer Carrier
Your Answer Buyer

Multiple Choice Multiple Answer
Question The modes of termination of agency are
Correct Answer By completion of the agency business , By death of
principal , By expiry of period or time
Your Answer By completion of the agency business , By death of principal ,
By expiry of period or time

Multiple Choice Multiple Answer
Question Goods Means
Correct Answer Debentures , Stocks & shares
Your Answer Actionable claims , Debentures

Multiple Choice Single Answer
Question The goods which are identified and agreed upon at the time of a
contract of sale is made:
Correct Answer Specific goods
Your Answer Specific goods

Multiple Choice Multiple Answer
Question In the absence of usage or custom of trade to the contrary, the
implied authority of a partner does not empower him to
Correct Answer Admit any liability in a suit or proceedings against the firm
, Transfer movable property belonging to the firm ,Withdraw a suit or
proceeding filed on behalf of the firm
Your Answer Acquire movable property on behalf of the firm , Transfer
movable property belonging to the firm

Multiple Choice Single Answer
Question The parties of the contract should be major in age according to
Correct Answer The law to which they are subject
Your Answer The law to which they are subject

Multiple Choice Multiple Answer
Question Following persons can not be called partners
Correct Answer minors , insolvents , co-owners without the agreement to
carry on the business
Your Answer minors , insolvents , co-owners without the agreement to
carry on the business

True/False
Question Alteration of memorandum or articles etc. to be noted in every
copy.
Correct Answer True
Your Answer True

True/False
Question The company law board may, at any time, by order, extend the
time for the filing of documents.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question The unpaid seller has following rights against the buyer
personally
Correct Answer suit for interest , repudiation of contract
Your Answer suit for interest , repudiation of contract

Multiple Choice Multiple Answer
Question In the Conditional endorsement
Correct Answer the liability of the endorser is limited , the liability of the
endorser is negative , Endorser's liability can be made dependent upon
contingency
Your Answer the liability of the endorser is limited , the liability of the
endorser is negative

Multiple Choice Multiple Answer
Question The companies having Articles are
Correct Answer Unlimited Company , Company limited by guarantee ,
Company limited by shares
Your Answer Public Limited Company , Company limited by shares

Multiple Choice Multiple Answer
Question Following are the conditions needed to prove an act of a partner is
an act of a partnership firm
Correct Answer such a act be done in a ordinary course of a partnership
firm , it must be related to the business of the firm , act must have been done
in the name and on behalf of the firm
Your Answer act done in personal capacity , it must be related to the
business of the firm , act must have been done in the name and on behalf of the
firm

Select The Blank
Question The company does not possess ________ still it is a person in the
eyes of law.
Correct Answer fundamental rights
Your Answer statutory rights

True/False
Question Mental acceptance amounts to an acceptance.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question The holder of Negotiable Instrument has a right to
Correct Answer sue for recovery
Your Answer sue for recovery

Multiple Choice Multiple Answer
Question The unpaid seller has following rights against the goods
Correct Answer stoppage in transit , withholding the delivery of goods
Your Answer stoppage in transit , withholding the delivery of goods

True/False
Question Any user of the goods with the approval of the person who has
purchased the goods for consideration is also a consumer.
Correct Answer True
Your Answer True

Match The Following
Question Correct Answer Your Answer
Minor Partner Admitted for profits only Admitted for profits only
Dissolution of a Partnership Death or Insanity of the partners Death or
Insanity of the partners
Firm Partners Partners
Partner Agents of the firm Agents of the firm
Partnership Can be formed atWill Can be formed atWill

Multiple Choice Multiple Answer
Question There can not be any partnership where a business is carried on
Correct Answer with a benevolent purpose , where any one of the partners
is entitled to total profit earned
Your Answer with a benevolent purpose , where any one of the partners is
entitled to total profit earned

Multiple Choice Multiple Answer
Question The Exception to the rule of "buyer beware" are
Correct Answer usage by trade , sale of goods by description , consent by
fraud
Your Answer usage by trade , sale of goods by description , consent by
fraud

Select The Blank
Question Issued capital can be defined as the ________ of shares which
are offered to the public for subscription.
Correct Answer nominal value
Your Answer nominal value

Select The Blank
Question The property in the Negotiable Instrument passes from one person
to another person by ________ delivery.
Correct Answer Mere/ Simple
Your Answer Mere/ Simple

Multiple Choice Single Answer
Question When an agent has the authority to do all acts connected with the
business or trade of his principal, he is known as
Correct Answer a general agent
Your Answer a general agent

Select The Blank
Question The act done by the agent with the permission and on behalf of the
principal is ________ on the principal.
Correct Answer binding
Your Answer binding

Multiple Choice Multiple Answer
Question A partner is called as an outgoing partner by
Correct Answer retirement , death , expulsion
Your Answer retirement , death , expulsion

Multiple Choice Multiple Answer
Question According to Rule 3 of the Consumer protection rules the Central
Council consists of the following members
Correct Answer Minister in-charge of the dept. of home , Minister in-charge
of dept. of Commerce and Industry , Minister in-charge consumer affairs in
states
Your Answer Minister in-charge of dept. of civil supplies , Minister
in-charge consumer affairs in states

Multiple Choice Single Answer
Question If there is a breach of a condition, a buyer has the right to
Correct Answer Repudiate the contract
Your Answer Repudiate the contract

Select The Blank
Question Unpaid seller's right to stop the goods in transit arises only when
the buyer is ________
Correct Answer Bankrupt
Your Answer Bailee

Multiple Choice Single Answer
Question For the formation of the contract of sale of goods, there should be
Correct Answer Two parties
Your Answer Two parties

True/False
Question Ratification can be only for a part of the act of the agent.
Correct Answer False
Your Answer True

True/False
Question In a contract of sale goods can be exchanged for goods.
Correct Answer False
Your Answer False

Select The Blank
Question A partner has a right to settle the ________ of the firm out of the
property of the firm.
Correct Answer debts
Your Answer debts

Multiple Choice Single Answer
Question Consumer Dispute Redressal Forum is a District Forum
established by
Correct Answer the State Govt. in each District of the State by Notification
Your Answer the State Govt. in each District of the State by Notification

Multiple Choice Multiple Answer
Question The very important stages in the connection of formation of a
company are
Correct Answer Promotion , Registration , Floatation
Your Answer Promotion , Registration , Floatation

True/False
Question Existing goods are those goods, which are owned and possessed
by the seller at the time of sale.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Following are the elements which constitute a partnership
Correct Answer there must be a contract regarding a partnership , there
must be an association of two or more persons
Your Answer there must be a contract regarding a partnership , there must
be an association of two or more persons

True/False
Question Goods which become ascertained subsequent to the formation of
the contract of sale are Ascertained Goods.
Correct Answer True
Your Answer True

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