Business Law - A01

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 redeliver

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 at Will Can be formed at Will

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

LIST OF ATTEMPTED QUESTIONS AND ANSWERS BL2

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 Applicability

An agreement enforceable by law Contract Contract

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 Single Answer

Question When the goods are very bulky in nature then they are

delivered in a

Correct Answer symbolic manner

Your Answer symbolic manner

Multiple Choice Multiple Answer

Question The order of the Commission can be set aside by

Correct Answer The Supreme Court , The National Commission

Your Answer The National Commission , State Council District Forum

Match The Following

Question Correct Answer Your Answer

Agent appointed for a special task Special Agent Special Agent

Agency created by conduct of the parties Implied Agency Implied Agency

Agency created by words, spoken, or written Express authority Express

authority

Essentials of valid ratification Existence of principal Existence of

principal

Select The Blank

Question Members of a club or a society are the ________ of each

other.

Correct Answer friends

Your Answer agents

Multiple Choice Single Answer

Question In a sale if the seller becomes insolvent after a contract

of sale & the buyer has paid the price, the buyer can claim the goods

from the official

Correct Answer Assignee

Your Answer Assignee

Multiple Choice Multiple Answer

Question There are certain limitations to the principle of

ratification which are

Correct Answer where the principal does not have full knowledge at

the fact , where the act to be ratified is illegal or void , where the

ratification is not done within a reasonable time

Your Answer where the principal does not have full knowledge at the

fact , where the act to be ratified is illegal or void , where the

ratification is not done within a reasonable time

Multiple Choice Multiple Answer

Question The State Council consists of the following members

Correct Answer Minister in-charge of consumer affairs in the State

Govt. , Members representing such interests as may be prescribed by the

State Govt.

Your Answer Minister in-charge of consumer affairs in the State

Govt. , Minister in-charge of consumer affairs in the Central Govt. ,

Members representing such interests as may be prescribed by the State

Govt.

Select The Blank

Question An offer, to be treated as a valid offer, should be

________.

Correct Answer communicated

Your Answer communicated

Select The Blank

Question Notice of dishonour of cheque must be ________

Correct Answer within a reasonable time

Your Answer at any time

Multiple Choice Single Answer

Question A partnership at will can be dissolved by filing a suit

for

Correct Answer Dissolution

Your Answer Dissolution

Multiple Choice Multiple Answer

Question Following are the circumstances under which an offer

lapses

Correct Answer offeree makes conditional offer , offeree fails to

communicate the acceptance

Your Answer offeree makes conditional offer , acceptor comes to

know about the death of the proposer , offeree fails to communicate the

acceptance

True/False

Question An agency cannot be terminated at all. In other words a

contract of agency is perpetual.

Correct Answer False

Your Answer False

Select The Blank

Question The object of the Consumer Protection Act of 1986 is to

educate the people so that they can find out ________ for their

grievances

Correct Answer legal remedies

Your Answer legal remedies

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

Multiple Choice Multiple Answer

Question Negotiable Instruments recognized by usage are

Correct Answer Hundies , S.T. Receipts for goods , Pay off Orders

Your Answer Hundies , S.T. Receipts for goods , Pay off Orders

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

Select The Blank

Question A ________ is an artificial person and has a legal entity.

Correct Answer Company

Your Answer Partner

Multiple Choice Single Answer

Question Which of the following is not a void agreement

Correct Answer agreement of marriage

Your Answer agreement of marriage

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 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 admit any liability in a suit or proceedings against

the firm , withdraw a suit or proceeding filed on behalf of the firm

Multiple Choice Multiple Answer

Question The particular partnership automatically comes to an end

Correct Answer on the completion of the venture , at the expiry of

the fixed term

Your Answer on the completion of the venture , at the expiry of the

fixed term

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

Select The Blank

Question A firm is a name given to the partners ________

Correct Answer collectively

Your Answer collectively

True/False

Question District Forum enjoys Revisional jurisdiction.

Correct Answer False

Your Answer True

True/False

Question Companies can be registered with undesirable names.

Correct Answer False

Your Answer False

True/False

Question A person who merely gives an advice to another person in

matters of business, does not thereby becomes his agent.

Correct Answer True

Your Answer True

Multiple Choice Multiple Answer

Question An unregistered firm can institute a suit against

Correct Answer wrongful use of the trade mark , wrongful use of the

firm name

Your Answer the partner for settlement of firm's account , the

partner for any claim of set-off

Multiple Choice Multiple Answer

Question The three ingredients in the performance of a contract of

sale by the seller are

Correct Answer Transfer of property in goods , The passing of the

risk , Delivery of goods

Your Answer Transfer of property in goods , The passing of the risk

, Delivery of goods

True/False

Question Consideration can not be a past consideration.

Correct Answer False

Your Answer True

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 Carry on its business more economically , Amalgamate

with any other company , Attain its main purpose by new or improved

means

True/False

Question Companies can be registered with undesirable names.

Correct Answer False

Your Answer False

Multiple Choice Single Answer

Question The maximum number of persons in case of partnership firm

carrying on any business other than banking business must not exceed

Correct Answer Twenty

Your Answer Twenty

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 Specific goods are those which are identified and agreed

upon at the time of a contract of sale is made.

Correct Answer True

Your Answer True

Multiple Choice Multiple Answer

Question If the principal comes to know that the agent has

dishonestly concealed from him any material fact, the principal

Correct Answer can repudiate the transaction , may affirm such

transaction , may claim damages for loss

Your Answer can repudiate the transaction , may affirm such

transaction , may claim damages for loss

Multiple Choice Multiple Answer

Question There is always a direct privity of contract between the

principal and the following

Correct Answer substituted agent , co-agent , general agent

Your Answer substituted agent

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

Multiple Choice Single Answer

Question People purchasing the commodities for the purpose of

trading is

Correct Answer trader

Your Answer trader

Multiple Choice Single Answer

Question A Company is created by

Correct Answer Law

Your Answer Law

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 Single Answer

Question The relation of partnership arises from

Correct Answer contract

Your Answer contract

True/False

Question The law relating to sale of immovable goods is contained

in the Sale of Goods Act, 1930.

Correct Answer False

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 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 admit any liability in a suit or proceedings against

the firm , enter into partnership on behalf of the firm

Multiple Choice Single Answer

Question When an offer is made to world-at-large, the contract is

Correct Answer made with the person who signs or performs the terms

and conditions of the offer

Your Answer made with the person who signs or performs the terms

and conditions of the offer