Saturday, February 26, 2011

Business Law - 12

Business Law - 12


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


Multiple Choice Multiple Answer
Question Agent has duties towards principal in addition to :-
Correct Answer Conducting principal's business , Rendering accounts to principal , Communicating with the principal


Multiple Choice Single Answer
Question Partnership at will can be dissolved by any partner by :-
Correct Answer Giving due notice to that effect to all other partners


Multiple Choice Single Answer
Question The registrar issues the letter of approval to approve the :-
Correct Answer Name of the company

Select The Blank
Question If any ________ is present while forming the agency then the relationship of agency becomes contractual.
Correct Answer Consideration



Select The Blank
Question Future consideration is also known as ________ consideration.
Correct Answer Executory



Multiple Choice Multiple Answer
Question The Articles of Association contains the :-
Correct Answer Rules , Regulations , Bye-laws

True/False
Question The term business includes every lawful trade, occupation and profession.
Correct Answer True

True/False
Question "I promise to pay Mr. Luies or Order Rs.1,500/-" is a promissory note.
Correct Answer True

Select The Blank
Question The contract of agency between the principal and his agent is ________.
Correct Answer Enforceable


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 department of home , Minister in-charge of department of Commerce and Industry , Minister in-charge consumer affairs in states


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

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



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


True/False
Question Under ratification, principal need not exist at the time of ratifying the act of the agent.
Correct Answer False

Select The Blank
Question A valid tender of performance should be ________.
Correct Answer Unconditional



Multiple Choice Single Answer
Question A partner of a trading or non trading firm signs a Negotiable Instrument, liability incurs in :-
Correct Answer The name of the firm

Multiple Choice Multiple Answer
Question The communication of acceptance of an offer should be made to the :-
Correct Answer Offeror , Persons authorized by the offeror


Multiple Choice Multiple Answer
Question Jurisdictions of the National Commission are :-
Correct Answer Monetary , Appellate , Supervisory and Revisional


Multiple Choice Single Answer
Question The goods, which are owned and possessed by the seller at the time of sale, are known as :-
Correct Answer Existing goods/Specific goods


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

Select The Blank
Question An agreement of agency must make clear the ________ of a person to act on behalf of another person.
Correct Answer Intention

Select The Blank
Question The presumptions laid by Sec.118 & 119 of Negotiable Instrument Act do not arise where negotiable instrument is obtained by ________.
Correct Answer Fraud/Deceit

Match The Following
Question -Correct Answer
A company having control over a subsidiary company -Holding company
Constitution and objects of the company -Memorandum
Govern the internal affairs of the company -Articles of Association
Document includes any notice, circulation, advertisement etc. -Prospectus


Select The Blank
Question Dissolution of partnership involves a change in ________ of partners.
Correct Answer Relationship


Multiple Choice Multiple Answer
Question According to the Consumer Protection Act, 1986, a person includes :-
Correct Answer Hindu undivided family , Co-operative society , Individual as well as juristic person


Multiple Choice Single Answer
Question The law relating to sale of movable goods is contained in the :-
Correct Answer The Sale of Goods Act, 1930


True/False
Question The Registrar shall register the altered memorandum and certify the registration under his hand within one month from the date of filing such documents.
Correct Answer True


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

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


Multiple Choice Multiple Answer
Question Coercion means and includes :-
Correct Answer Any act forbidden by the Indian Penal Code , Any threatening to commit illegal act



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


True/False
Question Express or implied authority is conferred on the agent by the principal.
Correct Answer True

Match The Following
Question -Correct Answer
Complaint of Consumer- Any allegation in writing
Trade in relation to any goods- Who distributes goods
Manufacturer -Who makes any goods
Consumer Dispute- Dispute between consumer and manufacturer or trader


Multiple Choice Single Answer
Question Sometimes contracts are entered into on behalf of the company before its incorporation, such pre-incorporation contracts are :-
Correct Answer Binding


Multiple Choice Multiple Answer
Question Promissory note must be in :-
Correct Answer In writing , Definite , Unconditional

Multiple Choice Single Answer
Question Which of the following is not a mode of revocation of proposal ?
Correct Answer By promoting the contract


Multiple Choice Multiple Answer
Question The order of the Commission can be set aside by :-
Correct Answer The Supreme Court , The National Commission



Multiple Choice Single Answer
Question Merely by reasons of any defect in the constitution of the council, no proceedings of the central council shall be :-
Correct Answer Invalid



Multiple Choice Single Answer
Question The holder of the Negotiable Instrument has a right to sue in his :-
Correct Answer Own name



True/False
Question The Holder in due course has the right to sue on the Negotiable Instrument in his own name for recovering the amount.
Correct Answer True


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


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


Multiple Choice Single Answer
Question The capacity to contract with an agent is the part of the law of :-
Correct Answer Statute



Select The Blank
Question A ________ partner is like an undisclosed principal.
Correct Answer Sleeping



Multiple Choice Single Answer
Question A company which is not a private company is :-
Correct Answer Public company



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

Business Law - 11
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question
The relation between a doctor and his patient is not fiduciary in nature.
Correct Answer
False


Match The Following
Question
Correct Answer
Barter system
Exchange of goods for goods


Sale of goods Act, 1930
Movable goods

Caveat emptor
Let the buyer beware

Sale
Exchange of goods for price

Multiple Choice Single Answer
Question
Mr. Red and Mr. White register their company as a private company with a share capital of Rs. 7, 00,000/- divided into 70,000 shares of Rs.10/- each. Mr. White holds 69,999 shares while Mr. Red holds only 1 share. This is a :-
Correct Answer
One man company



Multiple Choice Single Answer
Question
If any member of the Central Council wants to resign from the Central Council, he may do so by a letter addressed to the :-
Correct Answer
Chairman



Multiple Choice Multiple Answer
Question
Coercion means and includes :-
Correct Answer
Any act forbidden by the Indian Penal Code , Any threatening to commit illegal act


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



Multiple Choice Multiple Answer
Question
The principal must give compensation to his agent in respect of injury caused to an agent by the :-
Correct Answer
Principal's neglect , Principal's want to skill , Principal's want to knowledge



Multiple Choice Single Answer
Question
A cheque is dishonoured by :-
Correct Answer
Non payment only



Multiple Choice Multiple Answer
Question
Documents to be presented for the registration of a company with the registrar are :-
Correct Answer
The memorandum of the company , Its articles , The agreement, if any

Select The Blank
Question
Past consideration is one which is wholly suffered by the ________ even before making of the agreement.
Correct Answer
Promisee


True/False
Question
The social or the domestic contracts are excluded from the purview of the Indian Contract Act, 1872.
Correct Answer
True


Match The Following
Question
Correct Answer


Minor Partner
Admitted for profits only

Dissolution of a Partnership
Death or Insanity of the partners

Firm
Partners

Partner
Agents of the firm

Partnership
Can be formed at Will


True/False
Question
Persons who have entered into partnership with one another are called individually partners and they are collectively "a firm".
Correct 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


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



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

True/False
Question
An auctioneer has full authority to sell the goods of his principal by private contracts.
Correct Answer
False

Select The Blank
Question
Notice of dissolution of firm must be ________.
Correct Answer
Explicit


Multiple Choice Multiple Answer
Question
Promissory note must be in :-
Correct Answer
In writing , Definite , Unconditional

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

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

Multiple Choice Single Answer
Question
A cooler was purchased not for his own use, but it was installed at a bus-stand for the use of public free of charge. it was held that the purchaser was a consumer because :-
Correct Answer
There was no commercial purpose



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

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


Multiple Choice Multiple Answer
Question
Certain effects of the insolvency of a partner are as follows :-
Correct Answer
An insolvent partner ceases to be a partner , The partnership firm dissolve on the insolvency of any partner



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

Select The Blank
Question
In order to become a holder, a person must possess the instrument under some ________ title.
Correct Answer
Lawful

True/False
Question
Unenforceable agreements and illegal agreements mean one and the same thing.
Correct Answer
False

Multiple Choice Single Answer
Question
A private company can be registered with a paid-up capital of Rs. :-
Correct Answer
One lakh

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

Multiple Choice Single Answer
Question
In case of a public limited company, the maximum number has no limit, but the minimum is fixed at :-
Correct Answer
7


Multiple Choice Multiple Answer
Question
A sale can be in case of :-
Correct Answer
Specific goods , Existing goods


True/False
Question
An agreement should be certain and unambiguous.
Correct Answer
True

True/False
Question
A trader is a middleman bringing the buyer and seller together and receiving any commission for services rendered by him.
Correct Answer
False

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



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


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


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



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


Select The Blank
Question
Every promise and every set of promises, forming the consideration for each other, is ________.
Correct Answer
An agreement

Multiple Choice Single Answer
Question
In the Bill of Exchange, the person who is ordered to pay is called as :-
Correct Answer
Drawee

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

Multiple Choice Single Answer
Question
In contract of sale the buyer becomes :-
Correct Answer
Absolute owner of the property


Select The Blank
Question
An agreement of agency must make clear the ________ of a person to act on behalf of another person.
Correct Answer
Intention

Multiple Choice Single Answer
Question
During the war, all the members of a private company were killed while they were in general meeting in a bomb attack. The questions is whether the company will :-
Correct Answer
Survive

Multiple Choice Single Answer
Question
Quasi Contract rests on the ground of :-
Correct Answer
Equity

True/False
Question
Memorandum of a company is a primary and supreme document of the company.
Correct Answer
True

Business Law - 10
LIST OF ATTEMPTED QUESTIONS AND ANSWERS

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

True/False
Question
Sections 1 to 75 of the Indian Contract Act, 1872 provides for the special contracts.
Correct Answer
False


Multiple Choice Single Answer
Question
For the existence of a partnership there must be an association of
Correct Answer
Two or more persons



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


Match The Following
Question
Correct Answer


Minor Partner
Admitted for profits only

Dissolution of a Partnership
Death or Insanity of the partners


Firm
Partners

Partner
Agents of the firm


Partnership
Can be formed at Will


Multiple Choice Single Answer
Question
A company which has a control over a subsidiary company is a
Correct Answer
Holding company


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


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


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

Multiple Choice Multiple Answer
Question
Presumptions do not arise where an instrument is obtained by
Correct Answer
fraud , offence , illegal consideration

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


Multiple Choice Single Answer
Question
Acceptance should be made in
Correct Answer
The manner prescribed by the promisor and if not prescribed in any reasonable manner


Multiple Choice Multiple Answer
Question
Documents to be presented for the registration of a company with the registrar are
Correct Answer
The memorandum of the company , Its articles , The agreement, if any


Multiple Choice Single Answer
Question
Sale is a contract plus
Correct Answer
conveyance

True/False
Question
An agency can be terminated after lapse of time or completion of the work.
Correct Answer
True


Select The Blank
Question
A club or a society is an ________ of persons
Correct Answer
association


Match The Following
Question
Correct Answer


Minor's Agreement
Void ab initio


Threatning to commit
Coercion

Consideration
Past, Present and Future


Mistake
Fact and Law


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

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


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



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.

Multiple Choice Multiple Answer
Question
A person is considered the holder of Negotiable Instruments if
Correct Answer
his name appear on an instrument , he is in possession of bearer instrument , he is the endorses of a cheque

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

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


Multiple Choice Multiple Answer
Question
Instruments payable on demand are
Correct Answer
Cheque , Promissory Note , Bill of Exchange

Select The Blank
Question
Ratification is one of the ways of ________ agency.
Correct Answer
creating

True/False
Question
The membership of the association of company shall cease on the dissolution of the firm.
Correct Answer
True

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


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.

Multiple Choice Single Answer
Question
Sale is a contract plus
Correct Answer
executed contract

Select The Blank
Question
An agent is simply blank a ________ between his principal and the third party.
Correct Answer
connecting link

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

True/False
Question
A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price
Correct Answer
True

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


True/False
Question
The principal can ratify unauthorised act of an agent.
Correct Answer
False

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


Multiple Choice Single Answer
Question
A partner who invests capital & share profits but do not take active part in firm's business is
Correct Answer
a dormant or sleeping partner

Select The Blank
Question
Special resolution and confirmation by ________is required for alteration of Memorandum.
Correct Answer
Company Law Board



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



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


Multiple Choice Single Answer
Question
The intention of the Negotiable Instrument Act is to govern
Correct Answer
legal relationship


True/False
Question
If all the members of a company are married, the company would not be a married person.
Correct Answer
True

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

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

Multiple Choice Single Answer
Question
Which authority of an agent can be inferred from the circumstances of the case ?
Correct Answer
implied

Multiple Choice Multiple Answer
Question
Section 2. of Indian Contract Act defines proposal as
Correct Answer
when one person communicates his desire to do 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 with a view to obtain the consent of another that is a proposal.

Multiple Choice Single Answer
Question
The object of carrying on a business must be
Correct Answer
Sharing of profits

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