Business Law - 3

Business Law - 3


Multiple Choice Single Answer
Question
In the right of lien, the possession is retained by
Correct 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

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

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



Multiple Choice Multiple Answer
Question
Goods means
Correct 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

Select The Blank
Question
The registration fo partnership firm is ________.
Correct Answer
not compulsory


Multiple Choice Single Answer
Question
The unpaid seller has a
Correct Answer
right against the goods

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


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

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



Multiple Choice Single Answer
Question
A legal representative being holder of Negotiable Instrument can sue
Correct 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



Multiple Choice Multiple Answer
Question
Goods includes
Correct 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



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


Multiple Choice Single Answer
Question
An agency is based upon consent and hence, it is a
Correct Answer
consensual relations



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 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

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



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


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

Select The Blank
Question
A ________ is an artificial person and has a legal entity.
Correct 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



Multiple Choice Multiple Answer
Question
Negotiable instrument recognised by law are
Correct 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


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
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

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 Single Answer
Question
Consideration or object of an agreement is lawful unless it is
Correct Answer
forbidden by law

Multiple Choice Multiple Answer
Question
A company is registered as an artificial person. It has no
Correct Answer
Body , Soul , Conscience


Select The Blank
Question
Agents are ________ to act within the scope of the authority given.
Correct 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

True/False
Question
Special agent and Particular agent mean one and the same thing.
Correct Answer
True

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



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

Multiple Choice Single Answer
Question
In order to convert a proposal into a promise the acceptance must be
Correct Answer
absolute and unqualified



Match The Following
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

True/False
Question
The provisions of sale of goods were previously included in the Indian Contract Act, 1872.
Correct 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


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


Multiple Choice Single Answer
Question
Company based on ownership is
Correct Answer
Public company



Multiple Choice Single Answer
Question
The unpaid seller has a
Correct 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

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


Business Law - 2
LIST OF ATTEMPTED QUESTIONS AND ANSWERS



Match The Following
Question
Correct Answer


Penalty for false particulars
Imprisonment for three months

Partnership deed
Name, Place, Date


A statement in prescribed form and accompanied by fees
Required for registration

The registrar of firms
To rectify any mistake


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


True/False
Question
A banker is a mercantile agent.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Following are the elements which constitute a partnership
Correct Answer
there must be a contract regarding a partnership , there must be an association of two or more persons
Your Answer
there must be a contract regarding a partnership , there must be an association of two or more persons

Select The Blank
Question
Unfair trade practice includes a representation made to public in a form that purpots to be a ________ of a product.
Correct Answer
warranty
Your Answer
warranty

True/False
Question
All contracts are agreements and all agreements are contracts.
Correct Answer
False
Your Answer
False

True/False
Question
In case of Bill of Exchange, the notice of dishonour is essential.
Correct Answer
True
Your Answer
True

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



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


True/False
Question
Existing goods are those goods, which are owned and possessed by the seller at the time of sale.
Correct Answer
True


Select The Blank
Question
A,B,C, and D are partners, A retires and B dies, the partnership between them comes to ________
Correct Answer
an end


Multiple Choice Multiple Answer
Question
In special agency,
Correct Answer
agency lasts for a specific period , agency lasts for a particular type of job or work , agents has limited authority


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

Multiple Choice Single Answer
Question
Goods identified at the time contract of sale are known as
Correct Answer
Ascertained goods



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 Multiple Answer
Question
A company is registered as an artificial person. It has no
Correct Answer
Body , Soul , Conscience
Select The Blank
Question
An agreement of agency must make clear ________ of a person to act on behalf of another person.
Correct Answer
intention


Multiple Choice Multiple Answer
Question
The memorandum of every company shall state
Correct Answer
The name of the company , The registered office , The main objects


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



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
A minor admitted to the benefits of partnership is
Correct Answer
not personally liable for any act of firm , not entitled to sue partners for account , entitled for the profits of agreed upon

Multiple Choice Single Answer
Question
When an agent has the authority to do all acts connected with the business or trade of his principal, he is known as
Correct Answer
a general agent


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

True/False
Question
Money order, Postal order, Share Certificates, Deposit receipts and such other documents are Negotiable Instruments.
Correct Answer
False


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


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


True/False
Question
Specific goods are those which are identified and agreed upon at the time of a contract of sale is made.
Correct Answer
True

True/False
Question
An agreement enforceable by law is a contract.
Correct Answer
True

Multiple Choice Multiple Answer
Question
The liability of companies on the basis of liability are
Correct Answer
Unlimited companies , Limited by guarantee , Limited by shares


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



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


Multiple Choice Single Answer
Question
The National Commission has the power to entertain appeals against the orders of any
Correct Answer
State Commission



Multiple Choice Multiple Answer
Question
Amendments made in the Consumer Protection Act in 2002 include
Correct Answer
Provision for substitution of legal heir or representative as a party to the complainant in the event of the death of the opposite party. , Provision for recovery of amounts ordered to be paid by consumer redressal agencies as arrears of land revenue. , Provision for recharging of fee in respect of complaints filed before the consumer redressal agencies. ,

True/False
Question
No consideration is required in formal contracts.
Correct Answer
True


Multiple Choice Multiple Answer
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

Multiple Choice Multiple Answer
Question
The Prospectus is
Correct Answer
A document raising share capital , A Prospectus can be, any notice , Issued to invite the subscription to shares

Select The Blank
Question
Agents are ________ to act within the scope of the authority given.
Correct Answer
authorised


Multiple Choice Multiple Answer
Question
Classification of companies based on the jurisdiction of functioning
Correct Answer
A National Company , Multinational Company , Foreign Company


True/False
Question
The subscriber of the memorandum of a company on its registration shall be entered in its register of members as member.
Correct Answer
True


Multiple Choice Single Answer
Question
Under a contract of sale goods have to be exchanged for
Correct Answer
Money


Multiple Choice Single Answer
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


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


Multiple Choice Single Answer
Question
One man company is generally a
Correct Answer
private company


Multiple Choice Single Answer
Question
Mr. Dang and Mr. Thomas work together. Mr. Dang receives all the profits earned and pays Mr. Thomas certain amount for his work as wages. whether Mr. Dang and Mr. Thomas are
Correct Answer
Master and Servant


Multiple Choice Single Answer
Question
An agreement can become a contract if it is
Correct Answer
enforceable by law


Select The Blank
Question
A proposal comes to an end by its ________.
Correct Answer
rejection


Multiple Choice Multiple Answer
Question
Following are the types of jurisdiction, which have been conferred on the State Commission
Correct Answer
Appellate , Supervisory , Revisional

Business Law - 1
LIST OF ATTEMPTED QUESTIONS AND ANSWERS



Select The Blank
Question
Partnership is based on ________.
Correct Answer
Faith

Select The Blank
Question
A Company subject to the provisions of section 32 of the companies act as unlimited may register under this Act as a ________.
Correct Answer
Limited company



Multiple Choice Multiple Answer
Question
Complaint under the Consumer Protection Act, 1986 relates to :-
Correct Answer
Unfair Trade Practices , Restrictive Trade Practices , Charging of higher prices



Multiple Choice Single Answer
Question
The monetary jurisdiction is based upon the :-
Correct Answer
Amount of relief claimed by the complainant


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

Select The Blank
Question
Special resolution and confirmation by ________ is required for alteration of Memorandum.
Correct Answer
Company Law Board
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
Company based on ownership is :-
Correct Answer
Public company



Multiple Choice Single Answer
Question
The National Commission has the power to entertain appeals against the orders of any :-
Correct Answer
State Commission



Multiple Choice Single Answer
Question
Non-registration of a partnership firm does not make the partnership agreement :-
Correct Answer
Void


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
In the Bill of Exchange, the person to whom the bill is made payable is called as :-
Correct Answer
Payee

Multiple Choice Single Answer
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


Multiple Choice Multiple Answer
Question
The Exception to the rule of "buyer beware" are
Correct Answer
quality of goods are not merchantable , presence of patent defect in goods



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



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


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


Multiple Choice Multiple Answer
Question
Classification of companies based on the jurisdiction of functioning is :-
Correct Answer
A National Company , Multinational Company , Foreign Company

Multiple Choice Multiple Answer
Question
A company is :-
Correct Answer
Voluntary Association of persons , An artificial legal person , A separate legal entity


Match The Following
Question
Correct Answer

Presentation of Negotiable Instrument
For payment


When an endorser signs the instrument and adds a direction to pay the amount mentioned therein
Endorsement in full

Default in payment of amount of cheque
Dishonour of cheque


Notice of dishonour of cheque
Mandatory provision

Multiple Choice Multiple Answer
Question
The object of the contract should be :-
Correct Answer
Legal one , Lawful


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



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

True/False
Question
Loss of profits is an example of liquidated damages.
Correct Answer
False


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
The company law board confirms the change of registered office of the company within a state.
Correct Answer
False

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


True/False
Question
A company can become a partner or can enter into a partnership agreement.
Correct Answer
False


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 will , It is for indefinite period , No provision for determination or termination of the partnership



Multiple Choice Multiple Answer
Question
The liability of companies on the basis of liability are :-
Correct Answer
Unlimited companies , Limited by guarantee , Limited by shares

Select The Blank
Question
The person who buys the goods for trading purposes is not a ________ under the Consumer Protection Act, 1986.
Correct Answer
Consumer


Multiple Choice Single Answer
Question
An agreement with a minor is not voidable but :-
Correct Answer
Void ab initio

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

True/False
Question
An insolvent person can accept or endorse a bill.
Correct Answer
False



Multiple Choice Single Answer
Question
A stipulation in a contract of sale with reference to goods which are subject there of may be :-
Correct Answer
A condition or warranty

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.

True/False
Question
Subsidiary company can hold shares and can acquire membership of the holding company.
Correct Answer
False



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 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
There should be a ________ and real necessity for creating an agency.
Correct Answer
Definite


Multiple Choice Single Answer
Question
For obtaining recognition as an 'Appropriate Laboratory", the applicant shall send an application in the proforma prescribed by the :-
Correct Answer
Bureau of Indian Standard



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



True/False
Question
Company is treated as a legal person distinct from its members.
Correct Answer
True
Your Answer
True

Select The Blank
Question
An offer must create ________ relationship.
Correct Answer
Legal


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 endorsee of a cheque