Saturday, February 26, 2011

Business Law - 6

Business Law - 6

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


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

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



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


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


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


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




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



Match The Following
Question
Correct Answer

An Outsider or a stranger who holds himself out or represents himself to be a partner of the partnership firm and induces outsider to give credit to the firm
partner by estoppel


A person who becomes a partner by entering into partnership agreement & is actual engaged in the conduct and management of the partnership business
Ostensible partner

A person who only lends his name to the partnership firm but does not invest any capital in the firm nor does take any interest in the affairs of the firm
Nominal Partner


When partners agree to share the profits of the partnership firm with any outsider, such An outsider is known as
Sub-Partner


A partner whose existence in the firm is kept secret from the outside world
Dormant Partner


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

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



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


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




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


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


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

Match The Following
Question
Correct Answer

Sale
Exchange of goods for price

Barter Exchange
Exchange of goods for goods

Sale of Goods Act, 1930
Movable goods


Caveat Emptor
Let the buyer beware


Quiet possession
Implied Warranty



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

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


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


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


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
The maker, acceptor or endorser respectively of a negotiable instrument is discharged from liability thereon by
Correct Answer
release , payment , non cancellation



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

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

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

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

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



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


Multiple Choice Multiple Answer
Question
Property of the company is the property of
Correct Answer
Promoters before the existence of the company , the company itself after its incorporation

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


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

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



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

Multiple Choice Multiple Answer
Question
Goods includes
Correct Answer
trade marks , good will

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


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




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


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



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


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


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

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


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


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


Multiple Choice Single Answer
Question
Dissolution by voluntary act of the partners, which includes
Correct Answer
dissolution by agreement


Business Law - 5
LIST OF ATTEMPTED QUESTIONS AND ANSWERS



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


Select The Blank
Question
________ is the ________ method of voting with the rule "one share one vote "
Correct Answer
pol, capitalistic
l

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



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


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


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

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


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

Match The Following
Question
Correct Answer


An Outsider or a stranger who holds himself out or represents himself to be a partner of the partnership firm and induces outsider to give credit to the firm
partner by estoppel

A person who becomes a partner by entering into partnership agreement & is actual engaged in the conduct and management of the partnership business
Ostensible partner


A person who only lends his name to the partnership firm but does not invest any capital in the firm nor does take any interest in the affairs of the firm
Nominal Partner


When partners agree to share the profits of the partnership firm with any outsider, such An outsider is known as
Sub-Partner


A partner whose existence in the firm is kept secret from the outside world
Dormant Partner


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


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



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


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



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


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


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


Match The Following
Question
Correct Answer

Sale
Exchange of goods for price


Barter Exchange
Exchange of goods for goods


Sale of Goods Act, 1930
Movable goods

Caveat Emptor
Let the buyer beware


Quiet possession
Implied Warranty

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



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


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


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



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
The maker, acceptor or endorser respectively of a negotiable instrument is discharged from liability thereon by
Correct Answer
release , payment , non cancellation



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

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




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

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

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


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


Multiple Choice Multiple Answer
Question
Property of the company is the property of
Correct Answer
Promoters before the existence of the company , the company itself after its incorporation

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

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

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


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




Multiple Choice Multiple Answer
Question
Goods includes
Correct Answer
trade marks , good will



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

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




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



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

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


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



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



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



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

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

Multiple Choice Single Answer
Question
Dissolution by voluntary act of the partners, which includes
Correct Answer
dissolution by agreement

Business Law - 4



Question
Consideration can not be a past consideration.
Correct Answer
False

Question
The following types of companies are required to have their own articles
Correct Answer
Unlimited companies , Companies limited by guarantee , Private companies limited by shares

Question
When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be ________.
Correct Answer
accepted

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

Question
As per S.2(1) (f) of the Consumer Protection Act, defect means any ________ in the quality of goods
Correct Answer
shortcoming

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

Question
There can not be any partnership where a business is carried on
Correct Answer
With a benevolent purpose , Where any one of the patterns is entitled to total profit earned.

Question
Selection committee for the appointment of the District Forum consists of
Correct Answer
President of the State Commission , Secretary of the Law Dept. of the state

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

Question
The directors of a company have to file their consent with the ________ to act as director.
Correct Answer
registrar

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

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

Question
The companies having Articles are
Correct Answer
Unlimited Company , Company limited by guarantee , Company limited by shares

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

Question
Partnership is based on ________
Correct Answer
faith

Question
The ingredients of the proposal are
Correct Answer
communication by one to another , to do or to abstain from doing something , the object should be to take assent of another

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

Question
An agent was instructed by his principal to insure the goods, but he neglected to insure the goods. As a result, the principal had to suffer the loss. Who is responsible for the loss ?
Correct Answer
agent

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

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

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

Question
In the right of lien, the possession is retained by
Correct Answer
Unpaid seller

Question
The Indian Contract Act, 1872, does not cover all those duties which are not ________ in nature.
Correct Answer
contractual

Question
An unregistered firm can institute a suit against
Correct Answer
wrongful use of the trade mark , wrongful use of the firm name

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

Question
During the continuance of the firm, a transfer by a partner of his interest is the first restricts the transferee to
Correct Answer
inspect the books of the firm , require accounts , interfere in the conduct of a business of a firm

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

Question
In an appeal to the National Commission the appellant shall submit
Correct Answer
Six copies of memorandum

Question
the vacancies arising from designation of the members of the Central Council shall be filled from the same category by the
Correct Answer
Central Government

Question
Where the partners agree to carry on the business for a definite period of time, the partnership is said to be
Correct Answer
for a fixed period

Question
In contract of sale the buyer becomes
Correct Answer
Absolute owner of the property

Question
In contract of sale
Correct Answer
ownership in the property is passed from the seller to the buyer.

Question
A Promissory Note contains conditional undertaking to pay a certain sum of money.
Correct Answer
False
Multiple Choice Single Answer

Question
A public company doesn't have its own articles of association, it may adopt
Correct Answer
Table A as given in schedule-1
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

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

Question
The corporate veil under the Companies Act may be lifted in the following instances
Correct Answer
To investigate the real ownership of shares , To investigate the names and members of the company , To investigate whether the company is sham

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

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

Question
Correct Answer


Any person who for the consideration becomes the possessor of a promissory note
Holder in due course


Negotiating Negotiable Instruments so as to bind all, except himself
A minor


A partner accepting Negotiable Instrument
Implied authority

A person who can't accept or indorse a bill
An insolvent


Question
Services rendered by the Post and Telephone Department are covered by the Consumer Protection Act, 1986
Correct Answer
True

Question
The meaning of the term “Caveat Emptor” is
Correct Answer
let the buyer beware

Question
A company can sue and also be sued by
Correct Answer
In its corporate name

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

Question
If any ________ is present while forming the agency then the relationship of agency becomes contractual.
Correct Answer
consideration

Question
"I promise to pay Mr.John Rs.500/- seven days after my marriage with Miss Lucy" is a promissory note.
Correct Answer
False

No comments:

Post a Comment