Business Law - A04

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer

Question In the right of lien, the possession is retained by

Correct Answer Unpaid seller

Your Answer Unpaid seller

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 Even if all the members of a company are citizens of India, the company does not become a citizen of India.

Correct Answer True

Your Answer True

Select The Blank

Question The confirmation of change of registered office of company within a state shall be communicated to the company within ________ from the date of receipt of such application.

Correct Answer Four weeks

Your Answer Three months

Multiple Choice Multiple Answer

Question Goods means

Correct Answer growing crops , stocks & shares

Your Answer growing crops , stocks & shares

Multiple Choice Single Answer

Question According to the Consumer Protection Act of 1986, goods means as defined under

Correct Answer Sale of Goods Act, 1930

Your Answer Sale of Goods Act, 1930

Select The Blank

Question The registration fo partnership firm is ________.

Correct Answer not compulsory

Your Answer not compulsory

Multiple Choice Single Answer

Question The unpaid seller has a

Correct Answer right against the goods

Your Answer right against the goods

True/False

Question Unenforceable agreements and illegal agreements mean one and the same thing.

Correct Answer False

Your Answer False

True/False

Question The relation between a doctor and his patient is not fiduciary in nature.

Correct Answer False

Your Answer False

Select The Blank

Question A club or a society is an ________ of persons

Correct Answer association

Your Answer association

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

Multiple Choice Single Answer

Question A legal representative being holder of Negotiable Instrument can sue

Correct Answer after the death of the holder

Your Answer after the death of the holder

Multiple Choice Multiple Answer

Question A sale can be in case of

Correct Answer specific goods , existing goods

Your Answer specific goods , existing goods

Multiple Choice Multiple Answer

Question Goods includes

Correct Answer trade marks , good will

Your Answer trade marks , good will

Multiple Choice Multiple Answer

Question Under section 144, mode of service of summons are

Correct Answer by speed post , by courier services , by concerned police station

Your Answer by speed post , by concerned police station

Multiple Choice Multiple Answer

Question Goods means

Correct Answer birds , gas

Your Answer birds , gas

Multiple Choice Multiple Answer

Question A company is a legal personality and as such it can

Correct Answer Own its property in its own name , Enjoy its property in its own name , Dispose of its property in its own name

Your Answer Own its property in its own name , Enjoy its property in its own name , Dispose of its property in its own name

Multiple Choice Single Answer

Question An agency is based upon consent and hence, it is a

Correct Answer consensual relations

Your Answer consensual relations

Match The Following

Question Correct Answer Your Answer

Minor's Agreement Void ab initio Void ab initio

Threatning to commit Coercion Coercion

Consideration Past, Present and Future Past, Present and Future

Mistake Fact and Law Fact and Law

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

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 Carrier

Multiple Choice Multiple Answer

Question The acts or transactions made by the agent can be ratified if the

acts or transaction are

Correct Answer illegal , criminal , void ab initio

Your Answer valid

Multiple Choice Multiple Answer

Question Conditions required to avoid a contract on the ground of

supervening impossibilty of performance of the contract

Correct Answer the goods must have been perished before the risk is passed to

the buyer , the loss is not caused by the wrongful act or default

of either buyer or seller

Your Answer loss must be generic , the goods must have been perished

before the risk is passed to the buyer

Select The Blank

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

Correct Answer Company

Your Answer Company

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 Seller , Official Assignee

Multiple Choice Multiple Answer

Question Negotiable instrument recognised by law are

Correct Answer Bill of exchange , Cheque , Promissory Note

Your Answer Bill of exchange , Cheque , Promissory Note

True/False

Question A company can become a partner or can enter into a partnership

agreement.

Correct Answer False

Your Answer False

Multiple Choice Single Answer

Question A Company, when registered with limited liability under the

Companies Act 1956, shall be deemed to be a company

Correct Answer Limited by shares

Your Answer Limited by shares

Multiple Choice Multiple Answer

Question Liabilities of partners arises to third party

Correct Answer for wrongful acts of a partners , for misappropriation by its

partners , for acts of the firm

Your Answer for wrongful acts of a partners , for acts of the firm

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 co-owners without the agreement to carry on the business ,

minors , insolvents

Multiple Choice Single Answer

Question Consideration or object of an agreement is lawful unless it is

Correct Answer forbidden by law

Your Answer prohibited by law

Multiple Choice Multiple Answer

Question A company is registered as an artificial person. It has no

Correct Answer Body , Soul , Conscience

Your Answer Body , Soul , Conscience

Select The Blank

Question Agents are ________ to act within the scope of the authority

given.

Correct Answer authorised

Your Answer authorised

Select The Blank

Question The essential point about an agent's position is his ________ of

making his principal answerable to third parties.

Correct Answer authority

Your Answer capacity

True/False

Question Special agent and Particular agent mean one and the same

thing.

Correct Answer True

Your Answer False

Select The Blank

Question When the person to whom the proposal is made signifies his

assent thereto, the proposal is said to be ________.

Correct Answer accepted

Your Answer accepted

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

Multiple Choice Single Answer

Question In order to convert a proposal into a promise the acceptance

must be

Correct Answer absolute and unqualified

Your Answer communicated any time

Match The Following

Question Correct Answer Your Answer

Any person who for the

consideration becomes

the possessor of a

promissory note

Holder in due course Holder in due course

Negotiating Negotiable

Instruments so as to bind

all, except himself

A minor Non-acceptance express

authority endorsement in

full

A partner accepting

Negotiable Instrument

Implied authority Implied authority

A person who can't accept

or indorse a bill

An insolvent An insolvent

True/False

Question The provisions of sale of goods were previously included in the

Indian Contract Act, 1872.

Correct Answer True

Your Answer True

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 A company is a legal personality and as such it can

Correct Answer Own its property in its own name , Enjoy its property in its own

name , Dispose of its property in its own name

Your Answer Own its property in its own name , Dispose of its property in its

own name

Multiple Choice Single Answer

Question Company based on ownership is

Correct Answer Public company

Your Answer Public company

Multiple Choice Single Answer

Question The unpaid seller has a

Correct Answer right against the buyer

Your Answer right against the buyer

True/False

Question The Central Government may, by license direct the association

to be registered which is formed as a limited company for

promoting commerce, art etc.

Correct Answer True

Your Answer True

Select The Blank

Question The directors of a company have to file their consent with the

________ to act as director.

Correct Answer registrar

Your Answer registrar

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Match The Following

Question Correct Answer Your Answer

Unpaid Seller Right of lien on

goods

Right of lien on goods

Future Goods Agreement to sell Contract of Sale

Identified Goods Ascertained Goods Ascertained Goods

Two parties Contract of Sale Agreement to sell

Monetary

consideration

Price for the goods Price for the goods

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

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 , transfer movable property

belonging to the firm , withdraw a suit or

proceeding filed on behalf of the firm

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 payment

Multiple Choice Multiple Answer

Question A company limited by shares

Correct Answer exists only in the contemplation of law , has a

perpetual succession

Your Answer has a perpetual succession

Multiple Choice Multiple Answer

Question Memorandum of association is related with

Correct Answer controlling external operations of the company ,

areas of business activities beyond which a

company cannot go

Your Answer controlling external operations of the company ,

areas of business activities beyond which a

company cannot go , rules to achieve &

accomplish the objectives of the company

Multiple Choice Multiple Answer

Question In the Private limited company

Correct Answer its article restricts invitation to the public to

subscribe for shares , right to transfer the

shares is restricted by its article

Your Answer its article restricts invitation to the public to

subscribe for shares

Multiple Choice Multiple Answer

Question Any person who by making deceptive statement

induces another person to enter into any

agreement for acquiring shares is punishable

with

Correct Answer imprisonment of term which may extend to five

years , fine which may extend to Rs. 1,00,000/-

Your Answer imprisonment of term which may extend to two

years , fine which may extend to Rs. 50,000/-

Multiple Choice Single Answer

Question Which of the following is not a mode of

revocation of proposal

Correct Answer all of the above

Your Answer by acceptor going bankrupt

Multiple Choice Single Answer

Question An agreement to do an act impossible in itself is

Correct Answer Void

Your Answer Void

Multiple Choice Single Answer

Question Section 11 and 12 of the Indian Contract Act,

1872

Correct Answer competency of the parties to contract.

Your Answer competency of the parties to contract.

Multiple Choice Multiple Answer

Question Following are the exception to the rule of "No

consideration, no contract"

Correct Answer contract of completed gifts , promises to pay

time barred debts , contract of agency

Your Answer contract of completed gifts , promises to pay

time barred debts , promises for compensating

involuntary services,

Multiple Choice Multiple Answer

Question Following are the essentials 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

Multiple Choice Multiple Answer

Question Section 2. of Indian contract Act define

proposals

Correct Answer when one person communicates his desire to do

or to abstain from doing something for another

to obtain the assent of another that is a proposal

, when one person signifies to another his

willingness to do or to abstain from doing

anything with a view to obtain the assent of

another to such act or abstain, he is said to

make a proposal

Your Answer when one person signifies to another his

willingness to do or to abstain from doing

anything with a view to obtain the assent of

another to such act or abstain, he is said to

make a proposal

Select The Blank

Question ________ partner is not held responsible for the

________ of the firm , , ,

Correct Answer nominal

Your Answer nominal

Correct Answer liabilities

Your Answer liabilities

Match The Following

Question Correct Answer Your Answer

Novation sec.62 sec.62

Mistake sec 20 to 22 sec 20 to 22

Fraud sec 17 sec 17

Remission sec.63 sec.63

Supply of

necessaries

sec.68 sec.68

True/False

Question Agreement is defined as a contract at its

inception.

Correct Answer True

Your Answer False

Multiple Choice Single Answer

Question When any of the partners ceases to be a partner

in the firm because of transfer of interest or

share of a partner, such a partner is called an

Correct Answer outgoing partner

Your Answer sub-partner

True/False

Question A person who finds goods belonging to another

is the owner of those goods.

Correct Answer False

Your Answer False

Multiple Choice Multiple Answer

Question X employs Y to recover Rs. 25,000/- from Z and

through Y’s misconduct, amount is not

recovered then Y

Correct Answer is entitled to no remuneration for his services ,

must make good loss to X

Your Answer is entitled to no remuneration for his services

True/False

Question Partnership is a specie (extension) of law of

agency

Correct Answer True

Your Answer True

True/False

Question All the partners can carry on the business of the

firm or one of the partner’s can act for all of

them

Correct Answer True

Your Answer True

Multiple Choice Single Answer

Question Bill of Exchange must contain

Correct Answer unconditional order to pay

Your Answer unconditional order to pay

True/False

Question No consent is required to be obtained from other

partners for retirement of a partner.

Correct Answer False

Your Answer False

Multiple Choice Single Answer

Question Noting must contain

Correct Answer notary charges incurred

Your Answer notary charges incurred

Multiple Choice Single Answer

Question When the place at which the goods must be delivered is specified in the contract of sale, the goods must be delivered at the place

Correct Answer at anytime during the business hours

Your Answer at anytime during the business hours

Multiple Choice Single Answer

Question when an endorser increases his own liability under the instrument by express words, the endorsement is said to be

Correct Answer Facultative

Your Answer Facultative

Multiple Choice Single Answer

Question Applicability of the Negotiable Instruments Act,1881

Correct Answer The Negotiable Instruments Act,1881 applies and extends to the whole of India

Your Answer The Negotiable Instruments Act,1881 applies and extends to the whole of India

True/False

Question A Cheque is a Bill of Exchange

Correct Answer True

Your Answer True

Multiple Choice Single Answer

Question Consumer is a person obtaining goods for

Correct Answer consumption

Your Answer price

Multiple Choice Single Answer

Question The members of District Forum shall not be less than

Correct Answer thirty five years of age

Your Answer thirty five years of age

True/False

Question Services rendered by the post and telephone department are covered by the Consumer Protection Act,1986

Correct Answer True

Your Answer True

True/False

Question A public company is one which is not private.

Correct Answer True

Your Answer True

True/False

Question In a Government company the Central or the State Government hold not less than 51% of the paid-up share capital.

Correct Answer True

Your Answer True

Select The Blank

Question ________ is the document issued to ________ share capital by inviting the public to subscribe to its shares and debentures

Correct Answer Prospectus

Your Answer Prospectus

Correct Answer raise

Your Answer raise

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

Select The Blank

Question An ________ must create ________

relationship.

Correct Answer offer

Your Answer offer

Correct Answer Legal

Your Answer Legal

Select The Blank

Question There are certain relations, which ________ created by contracts but are upheld by law, which are known as ________ contracts

Correct Answer arenot

Your Answer are

Correct Answer Quasi

Your Answer Quasi

Select The Blank

Question As per Sec. 2 (1) (O) of the Consumer Protection Act, Service ________ Include rendering of any service under a contract of ________ service.

Correct Answer doesnot

Your Answer doesnot

Correct Answer personal

Your Answer public

Select The Blank

Question Where a ________ party uses his position to

obtain an unfair advantage over the other party it is known as ________ .

Correct Answer dominant

Your Answer dominant

Correct Answer Undue Influence

Your Answer willful

Multiple Choice Multiple Answer

Question There is always a direct privity of contract

between the principal and

Correct Answer Substituted agent , Co-agents , General agent

Your Answer General agent

Select The Blank

Question Agent’s ________ refers to the ________ of the agent to bind his principal

Correct Answer capacity

Your Answer authority

Correct Answer authority

Your Answer capacity

Select The Blank

Question 3 A Negotiable ________strument made in India and made payable in, shall be deemed to be ________ Instrument.

Correct Answer in

Your Answer in

Correct Answer inland

Your Answer inland

Select The Blank

Question A ________ is required to be noted or protested for ________

Correct Answer Cheque

Your Answer promissory note

Correct Answer dishonour

Your Answer dishonour

True/False

Question Ratification of an act does not create a contract of agency

Correct Answer False

Your Answer True

Multiple Choice Single Answer

Question One of the characteristics of Company is that it is

Correct Answer an artificial person

Your Answer an artificial person

Select The Blank

Question ________ goods are the Goods to be identified

and agreed upon of ________ contract of sale is made

Correct Answer Specific

Your Answer at the time

Correct Answer at the time

Your Answer Specific