Business Law - A06

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 Outside affairs of the company , Regulations of the company , Conduct of company's business

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's agent , Seller , Official Assignee , Receiver

Multiple Choice Single Answer

Question A mistake as to a law not in force in India is

Correct Answer void

Your Answer voidable

Multiple Choice Single Answer

Question A breach of a condition may be treated as breach of

Correct Answer Warranty

Your Answer Proposal

Multiple Choice Multiple Answer

Question Following are the element which constitute a partnership firm

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 carrying on the business must be the sharing of liabilities for

individual profits , There must be an association of two or more persons

Multiple Choice Multiple Answer

Question A Company shall, on being so required by a member,

send to him a copy of following documents

Correct Answer The Memorandum , The articles , Every other agreement

Your Answer The articles , Every other agreement , Share of profits

Select The Blank

Question Future consideration is also known as ________ consideration.

Correct Answer executory

Your Answer executory

Multiple Choice Single Answer

Question The National Commission has the power to entertain appeals against the orders of any

Correct Answer State Commission

Your Answer Civil Court

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 Single Answer

Question When the time is not specified for the delivery of goods, the goods must be delivered.

Correct Answer Reasonable time

Your Answer Reasonable time

True/False

Question If all the members of a company are married, the company would not be a married person.

Correct Answer True

Your Answer False

Select The Blank

Question Partnership business carried on continuous losses, the court may order to ________ the firm.

Correct Answer dissolve

Your Answer dissolve

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 Following are the essentials of valid acceptance

Correct Answer acceptance must be qualified , acceptance must be communicated to the offeror

Your Answer acceptance can precede an offer , acceptance must be qualified , acceptance must be communicated to the offeror

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

Multiple Choice Multiple Answer

Question A sale can be in case of

Correct Answer Specific goods , Existing goods

Your Answer Specific goods , Future goods , Existing goods

Select The Blank

Question Whenever the term illegal contract is used, it involves

________

Correct Answer inconsistency

Your Answer voidity

True/False

Question Companies can be registered with undesirable names.

Correct Answer False

Your Answer True

Select The Blank

Question Articles are ________ to and controlled by the

memorandum.

Correct Answer subordinate

Your Answer equivalent

True/False

Question The principal can ratify unauthorised act of an agent.

Correct Answer False

Your Answer True

True/False

Question A contract of sale may either be a sale or an agreement

to sell.

Correct Answer True

Your Answer True

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 Supreme Court , The National Commission , Central

Council

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 , Free service ,

Personal service

Match The Following

Question Correct Answer Your Answer

Inadequacy in nature and manner of performance Deficiency in service

Fault, Imperfection or shortcoming

Manipulation of Price Restrictive Trade Practice Unfair Trade

Practice

Falsely represents that the services are of a particular quality Unfair Trade

Practice unfair labour practice

Defect in goods Fault, Imperfection or shortcoming Deficiency in

service

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 purposely damages the property of the

partnership firm , A partner who wrongful deals with the assets of the firm , A

partner who uses the firm name for gaining personal profits

Select The Blank

Question As per S.2(1) (f) of the Consumer Protection Act, defect

means any ________ in the quality of goods

Correct Answer shortcoming

Your Answer shortcoming

Multiple Choice Single Answer

Question Where future Negotiability of Negotiable Instrument is

restricted such endorsement is called

Correct Answer restrictive endorsement

Your Answer restrictive endorsement

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 Specification

Multiple Choice Single Answer

Question In case of damages to the goods by a third party, only

Correct Answer owner can take action

Your Answer buyer can take action

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 No company shall be registered by a name which, in the opinion of the central government is undesirable.

Correct Answer True

Your Answer True

Select The Blank

Question The person acting as an agent on behalf of the principal should act ________.

Correct Answer honestly

Your Answer honestly

True/False

Question The statement in lieu of prospectus is prepared only for advertising purpose.

Correct Answer False

Your Answer True

True/False

Question Express or implied authority is conferred on the agent by the principal.

Correct Answer True

Your Answer True

Select The Blank

Question An agency is based upon the ________

Correct Answer consent

Your Answer consent

Multiple Choice Multiple Answer

Question A company has continuity of life. Its life is not affected

by

Correct Answer Death , Lunacy , Insolvency

Your Answer Death , Lunacy , Insolvency ,Wound up

Select The Blank

Question There are certain relations, which are not created by

contracts but are upheld by law, which are known as ________ contracts.

Correct Answer Quasi

Your Answer Quasi

Multiple Choice Single Answer

Question a contract of sale a condition may be reduced to

warranty where

Correct Answer There is a voluntary waiver of condition

Your Answer There is a fulfillment of condition

True/False

Question Directors are allowed to borrow from the public

companies.

Correct Answer False

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 , Bills of

exchange

Multiple Choice Single Answer

Question Right to withhold the delivery of goods is similar to and

co-extensive with the right of

Correct Answer stoppage of goods in transit

Your Answer stoppage of goods in transit

Select The Blank

Question A proposal comes to an end by its ________.

Correct Answer rejection

Your Answer acceptance

Multiple Choice Single Answer

Question A Company is registered as an

Correct Answer Artificial person

Your Answer Artificial person

Multiple Choice Single Answer

Question A company can sue and also be sued by

Correct Answer In its corporate name

Your Answer In its corporate name

Match The Following

Question Correct Answer Your Answer

Unlawful Business Dissolution of Partnership Dissolution of

Partnership

Sub-partner Sharing of profits by outsiders Sharing of profits by

outsiders

Partnership Association of two or more persons Association of

two or more persons

Partners have to be Competent Competent

Partner lending his name only Nominal partner Nominal partner

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 Repudiate the contract , Modify the contract , Recind the

contract , Rectify the contract

Multiple Choice Multiple Answer

Question Promise may be fraud if it is made

Correct Answer without intending to perform it , to deceive

Your Answer to mislead other , to deceive , to misguide others

True/False

Question If one of the parties to the contract dies the contract

becomes void.

Correct Answer False

Your Answer True

Multiple Choice Single Answer

Question Waiver

Correct Answer vDeliberate abandonment of a rights by the parties to

the contract

Your Answer An inferior right accruing to one of the parties as

contract merges into a superior right accruing to the same party under the

same or other contract.

Multiple Choice Single Answer

Question The ownership capital of the company is divided into a number of

Correct Answer Shares,

Your Answer Shares,

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 Single Answer

Question The term of central protection council is

Correct Answer three years

Your Answer five years

Select The Blank

Question A sale can only be in the case of ________ Or

________ goods.

Correct Answer future

Your Answer generic

Correct Answer generic

Your Answer ascertained

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

Multiple Choice Multiple Answer

Question Following is true about the Articles of Association

Correct Answer it is required to be signed by the subscribers of the

memorandum of association , is to be registered along with the memorandum

, a public company may have its own articles of association

Your Answer it is required to be signed by the subscribers of the

memorandum of association , is to be registered along with the memorandum

, a public company may have its own articles of association

True/False

Question No consideration is required in formal contracts

Correct Answer True

Your Answer True

Multiple Choice Multiple Answer

Question A person is deemed to be dominated the will of another if

Correct Answer a real or apparent authority over them , he stands in a

fiduciary relation to other

Your Answer some authority is held over the other party , a real or

apparent authority over them , he stands in a fiduciary relation to other

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 Signifies

Correct Answer Accepted

Your Answer Accepted

Match The Following

Question Correct Answer Your Answer

Two parties Contract of Sale Agreement to sell

Monetary consideration Price for the goods Price for the goods

Unpaid Seller Right of lien on goods Contract of Sale

Future Goods Agreement to sell Right of lien on goods

Identified Goods Ascertained Goods Ascertained Goods

Select The Blank

Question Any person claiming himself as a consumer must

________ that the services must have been ________ to him

Correct Answer prove

Your Answer prove

Correct Answer rendered

Your Answer provided

True/False

Question An unpaid seller has a right against the goods but does

not have any personal right against the buyer.

Correct Answer False

Your Answer True

Multiple Choice Single Answer

Question The rights & liabilities of an expelled partner

Correct Answer are exactly same as that of a retiring partner

Your Answer do not have any rights at all

Multiple Choice Single Answer

Question If there is breach of a condition, the aggrieved party gets

a right to.

Correct Answer repudiate the contract

Your Answer Discard the contract

Multiple Choice Single Answer

Question Unless there is any agreement to the contrary, on the

insolvency of any of the partners of the partnership firm, the firm

Correct Answer is automatically dissolved

Your Answer continues for a fixed period

Multiple Choice Single Answer

Question Illusory consideration can also be called as

Correct Answer deceptive

Your Answer deceptive

Multiple Choice Single Answer

Question In a private company shares can

Correct Answer be but with restrictions transferred

Your Answer not be transferred

Select The Blank

Question An Order of the Court asking a person to do or to

________ from doing a particular act, which is the subject matter of the

contract, is known as ________

Correct Answer Quasi

Your Answer refrain

Correct Answer Injunction

Your Answer Injunction

True/False

Question The estate of a deceased partner or the legal

representatives of a deceased partner cannot be held liable for any act of the

firm.

Correct Answer True

Your Answer True

Select The Blank

Question ________ is the ________ number of members to be

present at the meetings to conduct the business of the meeting as required by law

Correct Answer quorum

Your Answer quorum

Correct Answer minimum

Your Answer minimum

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 does

Correct Answer personal

Your Answer public

Multiple Choice Multiple Answer

Question Following are the essentials of valid acceptance

Correct Answer acceptance must be qualified , acceptance must be

communicated to the offeror

Your Answer acceptance must be qualified , acceptance can be

communicated at any time , acceptance must be communicated to the offeror

True/False

Question In case the object of an agency becomes unlawful, the

agency cannot be terminated

Correct Answer False

Your Answer True

Multiple Choice Multiple Answer

Question Misrepresentation contains following ingredients

Correct Answer positive assertion , breach of duty without intention to

deceive , causing another party to make a mistake as to the substance of the

thing

Your Answer breach of duty with intention to deceive , breach of duty

without intention to deceive , causing another party to make a mistake as to

the substance of the thing

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 Multiple Answer

Question To turn an agreement into contract the consideration

Correct Answer should be legal , should be lawful , should be law abiding

Your Answer should be legal , should be lawful , should be law abiding

Select The Blank

Question When the ________ of contract becomes ________ ,

such contract need not be performed

Correct Answer performance

Your Answer performance

Correct Answer impossible

Your Answer impossible

Select The Blank

Question ________ Is Any fault imperfection or shortcoming in

quantity, quality, purity or standard to be ________ by or under any law

for the time being in force under any contract express or implied is cla

Correct Answer Defects

Your Answer Defects

Correct Answer maintained

Your Answer maintained

True/False

Question Bill of Exchange need not be stamped property

Correct Answer True

Your Answer False

Select The Blank

Question A ________ is a Cheque drawn with a ________

date.

Correct Answer Post-dated

Your Answer Post-dated

Correct Answer future

Your Answer future

Multiple Choice Multiple Answer

Question One of the characteristics of Company is that it is

Correct Answer an artificial person

Your Answer national person , an artificial person , international

person

Multiple Choice Single Answer

Question Where a contract of sale is subject to any condition to be

fulfilled by the seller, the buyer may

Correct Answer Waive the condition

Your Answer add new the condition

True/False

Question Company can be termed as a Body Corporate.

Correct Answer True

Your Answer True

Multiple Choice Single Answer

Question The altered memorandum must be filed within

Correct Answer three months of the company law boards order

Your Answer one month of the company law boards order

Match The Following

Question Correct Answer Your Answer

Partner by holding-out Partner by estoppel Partner by estoppel

Dissolution of partnership Completion of ventures Completion of

ventures

Right of a partner To retire To retire

Partner is liable Loss caused by fraudLoss caused by fraud

Sleeping Partner Dormant Partner Dormant Partner

Multiple Choice Single Answer

Question an example of implied agency is

Correct Answer Agency by Holding-out

Your Answer Agency by Holding-out

Multiple Choice Multiple Answer

Question Consent means

Correct Answer assent of another , assent to support a claim , consent of

the offeror to the contract

Your Answer assent to support a claim , consent from the elements

which vitiates it , consent of the offeror to the contract

True/False

Question An agent does not have the right to enter into contracts

with third parties

Correct Answer False

Your Answer False

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 , Postal Orders

Select The Blank

Question Where a ________ promise is made to pay either cash

or money’s worth for an uncertain event, it is known as ________ contract

Correct Answer conditional

Your Answer Wagering

Correct Answer Wagering

Your Answer Contingent

True/False

Question Stock is a synonym used for Shares.

Correct Answer False

Your Answer True

Multiple Choice Multiple Answer

Question A company is a legal person with a perpetual succession

Correct Answer it never dies , it can be put an end to only by process of

law

Your Answer it never dies , it can be put an end to only by process of

law

Select The Blank

Question ________ is an invitation made to the ________

Correct Answer Prospectus

Your Answer Prospectus

Correct Answer public

Your Answer public

Multiple Choice Multiple Answer

Multiple Choice Multiple Answer

Question Promise may be fraud if it is made

Correct Answer without intending to perform it , to deceive

Your Answer to mislead other , to deceive , to misguide others

True/False

Question If one of the parties to the contract dies the contract

becomes void.

Correct Answer False

Your Answer True

Multiple Choice Single Answer

Question Waiver

Correct Answer vDeliberate abandonment of a rights by the parties to

the contract

Your Answer An inferior right accruing to one of the parties as

contract merges into a superior right accruing to the same party under the

same or other contract.

Multiple Choice Single Answer

Question The ownership capital of the company is divided into a

number of

Correct Answer Shares,

Your Answer Shares,

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 Single Answer

Question The term of central protection council is

Correct Answer three years

Your Answer five years

Select The Blank

Question A sale can only be in the case of ________ Or

________ goods.

Correct Answer future

Your Answer generic

Correct Answer generic

Your Answer ascertained

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

Multiple Choice Multiple Answer

Question Following is true about the Articles of Association

Correct Answer it is required to be signed by the subscribers of the

memorandum of association , is to be registered along with the memorandum

, a public company may have its own articles of association

Your Answer it is required to be signed by the subscribers of the

memorandum of association , is to be registered along with the memorandum

, a public company may have its own articles of association

True/False

Question No consideration is required in formal contracts

Correct Answer True

Your Answer True

Multiple Choice Multiple Answer

Question A person is deemed to be dominated the will of another if

Correct Answer a real or apparent authority over them , he stands in a

fiduciary relation to other

Your Answer some authority is held over the other party , a real or

apparent authority over them , he stands in a fiduciary relation to other

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 Signifies

Correct Answer Accepted

Your Answer Accepted

Match The Following

Question Correct Answer Your Answer

Two parties Contract of Sale Agreement to sell

Monetary consideration Price for the goods Price for the goods

Unpaid Seller Right of lien on goods Contract of Sale

Future Goods Agreement to sell Right of lien on goods

Identified Goods Ascertained Goods Ascertained Goods

Select The Blank

Question Any person claiming himself as a consumer must

________ that the services must have been ________ to him

Correct Answer prove

Your Answer prove

Correct Answer rendered

Your Answer provided

True/False

Question An unpaid seller has a right against the goods but does

not have any personal right against the buyer.

Correct Answer False

Your Answer True

Multiple Choice Single Answer

Question The rights & liabilities of an expelled partner

Correct Answer are exactly same as that of a retiring partner

Your Answer do not have any rights at all

Multiple Choice Single Answer

Question If there is breach of a condition, the aggrieved party gets

a right to.

Correct Answer repudiate the contract

Your Answer Discard the contract

Multiple Choice Single Answer

Question Unless there is any agreement to the contrary, on the

insolvency of any of the partners of the partnership firm, the firm

Correct Answer is automatically dissolved

Your Answer continues for a fixed period

Multiple Choice Single Answer

Question Illusory consideration can also be called as

Correct Answer deceptive

Your Answer deceptive

Multiple Choice Single Answer

Question In a private company shares can

Correct Answer be but with restrictions transferred

Your Answer not be transferred

Select The Blank

Question An Order of the Court asking a person to do or to

________ from doing a particular act, which is the subject matter of the

contract, is known as ________

Correct Answer Quasi

Your Answer refrain

Correct Answer Injunction

Your Answer Injunction

True/False

Question The estate of a deceased partner or the legal

representatives of a deceased partner cannot be held liable for any act of the

firm.

Correct Answer True

Your Answer True

Select The Blank

Question ________ is the ________ number of members to be

present at the meetings to conduct the business of the meeting as required by

law

Correct Answer quorum

Your Answer quorum

Correct Answer minimum

Your Answer minimum

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 does

Correct Answer personal

Your Answer public

Multiple Choice Multiple Answer

Question Following are the essentials of valid acceptance

Correct Answer acceptance must be qualified , acceptance must be

communicated to the offeror

Your Answer acceptance must be qualified , acceptance can be

communicated at any time , acceptance must be communicated to the offeror

True/False

Question In case the object of an agency becomes unlawful, the

agency cannot be terminated

Correct Answer False

Your Answer True

Multiple Choice Multiple Answer

Question Misrepresentation contains following ingredients

Correct Answer positive assertion , breach of duty without intention to

deceive , causing another party to make a mistake as to the substance of the

thing

Your Answer breach of duty with intention to deceive , breach of duty

without intention to deceive , causing another party to make a mistake as to

the substance of the thing

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 Multiple Answer

Question To turn an agreement into contract the consideration

Correct Answer should be legal , should be lawful , should be law abiding

Your Answer should be legal , should be lawful , should be law abiding

Select The Blank

Question When the ________ of contract becomes ________ ,

such contract need not be performed

Correct Answer performance

Your Answer performance

Correct Answer impossible

Your Answer impossible

Select The Blank

Question ________ Is Any fault imperfection or shortcoming in

quantity, quality, purity or standard to be ________ by or under any law

for the time being in force under any contract express or implied is cla

Correct Answer Defects

Your Answer Defects

Correct Answer maintained

Your Answer maintained

True/False

Question Bill of Exchange need not be stamped property

Correct Answer True

Your Answer False

Select The Blank

Question A ________ is a Cheque drawn with a ________

date.

Correct Answer Post-dated

Your Answer Post-dated

Correct Answer future

Your Answer future

Multiple Choice Multiple Answer

Question One of the characteristics of Company is that it is

Correct Answer an artificial person

Your Answer national person , an artificial person , international

person

Multiple Choice Single Answer

Question Where a contract of sale is subject to any condition to be

fulfilled by the seller, the buyer may

Correct Answer Waive the condition

Your Answer add new the condition

True/False

Question Company can be termed as a Body Corporate.

Correct Answer True

Your Answer True

Multiple Choice Single Answer

Question The altered memorandum must be filed within

Correct Answer three months of the company law boards order

Your Answer one month of the company law boards order

Match The Following

Question Correct Answer Your Answer

Partner by holding-out Partner by estoppel Partner by estoppel

Dissolution of partnership Completion of ventures Completion of

ventures

Right of a partner To retire To retire

Partner is liable Loss caused by fraudLoss caused by fraud

Sleeping Partner Dormant Partner Dormant Partner

Multiple Choice Single Answer

Question an example of implied agency is

Correct Answer Agency by Holding-out

Your Answer Agency by Holding-out

Multiple Choice Multiple Answer

Question Consent means

Correct Answer assent of another , assent to support a claim , consent of

the offeror to the contract

Your Answer assent to support a claim , consent from the elements

which vitiates it , consent of the offeror to the contract

True/False

Question An agent does not have the right to enter into contracts

with third parties

Correct Answer False

Your Answer False

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 , Postal Orders

Select The Blank

Question Where a ________ promise is made to pay either cash

or money’s worth for an uncertain event, it is known as ________ contract

Correct Answer conditional

Your Answer Wagering

Correct Answer Wagering

Your Answer Contingent

True/False

Question Stock is a synonym used for Shares.

Correct Answer False

Your Answer True

Multiple Choice Multiple Answer

Question A company is a legal person with a perpetual succession

Correct Answer it never dies , it can be put an end to only by process of law

Your Answer it never dies , it can be put an end to only by process of law

Select The Blank

Question ________ is an invitation made to the ________

Correct Answer Prospectus

Your Answer Prospectus

Correct Answer public

Your Answer public