SUB: LEGAL ASPECTS OF BUSINESS (103) 1. An agreement enforceable at law...

SUB: LEGAL ASPECTS OF BUSINESS (103)

1. An agreement enforceable at law is a

(a) enforceable acceptance

(b) accepted offer

(c) approved promise

(d) contract

2. Every promise and every set of promises, forming the consideration for

each other, is an

(a) agreement

(b) contract

(c) offer

(d) acceptance.

3. Promises which form the consideration or part of the consideration for

each other are called

(a) reciprocal

promises

(b) cross offers (c)

conditional offer

(d) conditional promises.

4. An agreement not enforceable by law is stated to be void under

(a) section 2(d)

(b) section 2(e)

(c) section 2(f)

http://192.168.1.2/is#bookmark3


(d) section 2(g).

5. Void agreement signifies

(a) agreement illegal in nature

(b) agreement not enforceable by law

(c) agreement violating legal procedure (d) agreement against public policy.

6. Offer as defined under section 2(a) is

(a) communication from one person to another

(b) suggestion by one person to another

(c) willingness to do or abstain from doing an act in order to obtain the assent of

other thereto

(d) none of the above.

7. Under section 2(b) if the person to whom the proposal is made signifies his

assent the proposal is said to have been

(a) accepted

(b) agreed

(c) provisionally agreed

(d) tentatively accepted.

8. A proposal when accepted becomes

(a) promise under section 2(b)

(b) agreement under section 2(e)

(c) contract under section 2(h) (d) none of the above.

9. When, at the desire of the promisor, the promisee or any other person has

done or abstained from doing or, does or abstain from doing or promises to

do or to abstain from doing something, such act or abstinence or promise

under section 2(d) is called

(a) reciprocal promise

(b) consideration for the promise

(c) counter offer (d) acceptance.

10. Promises which form the consideration or part thereof, for each other

under section 2(F) are called

(a) acceptances for

different proposals

(b) agreements (c)

reciprocal promises

(d) consideration.

11. Every promise or set of promises forming the consideration for each

other under section 2(e) is called

(a) reciprocal promise

(b) contract

(c) agreement


12. An agreement enforceable by law at the instance of one party & not of

other party under section 2(i) is called

(a) a valid contract

(b) an illegal contract

(c) void contract

(d) a voidable contract.

13. Which is correct

(a) proposal + acceptance = promise

(b) promise + consideration = agreement (c)

agreement + enforceability = contract

(d) all the above.

14. In a valid contract, what comes first

(a) enforceability

(b) acceptance

(c) promise

(d) proposal.

15. Under section 2(c) promisor is the

(a) person who makes the proposal

(b) person who accepts the proposal

(c) person who makes the promise

(d) person to whom the proposal is made.

16. Under section 2(c) promisee is the (a)

person who makes the proposal

(b) person who accepts the proposal

(c) person who makes the promise

(d) person to whom proposal is made.

17. Goods displayed in a shop with a price tag is an

(a) offer

(b) invitation to offer

(c) counter offer


18. Tender is

(a) an offer

(b) an invitation to offer

(c) a counter offer (d) a promise.

19. Communication of a proposal is complete

(a) when it is put in the course of transmission

(b) when it comes to the knowledge of the person to whom it is made (c)

when the proposal is communicated to the person to whom it is made

(d) all the above.

20. Communication of acceptance is complete as against the proposer

(a) when it comes to the knowledge of the proposer

(b) when it is put in the course of transmission to him so as to be out of power of

the acceptor

(c) when the acceptance is communicated to the proposer

(d) all the above.

21. Communication of acceptance is complete as against the acceptor

(a) when it comes to the knowledge of the proposer

(b) when it is put in the course of transmission

(c) when it is communicated to the acceptor that the acceptance has reached the

proposer

(d) when the proposer conveys the acceptance to the acceptor.

22. Revocation of offer by letter or telegram can be complete

(a) when it is despatched

(b) when it is received by the offeree

(c) when it reaches the offeree (d) both (a) and (c).

23. Acceptance to be valid must

(a) be absolute

(b) be unqualified

(c) both be absolute & unqualified

(d) be conditional.

24. A contract with or by a minor is a

(a) valid contract

(b) void contract

(c) voidable contract

(d) voidable at the option of either party.

25. A contract which ceases to be enforceable by law becomes void

(a) when it ceases to be enforceable

(b) before it ceases to be enforceable

(c) no such condition necessary

(d) none of above.

26. An acceptance can be revoked

(a) at any time before the communication of acceptance is complete as against

the promisee

(b) after its acceptance comes to the knowledge of the promisee

(c) both (a) & (b)

(d) neither (a) nor (b).

27. A proposal stands revoked

(a) by communication of notice of revocation by the proposer

(b) by failure of acceptor to fulfil a condition precedent (c) by

death or insanity of proposer to the knowledge of acceptor (d)

all the above.

28. A proposal can be accepted

(a) by notice of acceptance

(b) by performance of condition of proposal

(c) by acceptance of consideration for a reciprocal promise

(d) all the above.

29. Enforceable agreements are the one

(a) made by free consent

(b) parties to the contract are competent to enter into an agreement

(c) having lawful consideration & lawful object (d) all the above.

30. Competency to contract relates to (a)

age of the parties

(b) soundness of mind of the parties

(c) both age & soundness of mind

(d) intelligence of the parties.

31. Which one of the following is correct

(a) past consideration is no consideration

(b) consideration can be past, present or future

(c) consideration can only be present

(d) consideration can only be present & future.

32. Past consideration is valid in

(a) England only

(b) India only

(c) both in England & India

(d) neither in England nor in India.

33. An agreement not to raise the plea of limitation is

(a) valid &

binding

(b) void (c)

voidable

(d) illegal.

34. A letter of acceptance sent by post is lost in transit

(a) there is a concluded contract as the letter of acceptance is put in the course of

transmission

(b) there is no concluded contract as the acceptance has not come to the

knowledge of the proposer

(c) there is no concluded contract as the acceptance has not been communicated

to the proposer

(d) all the above.

35. When the consent to the contract is caused by coercion, the contract

under section 19 is

(a) valid

(b) voidable

(c) void

(d) illegal.

36. A's son forged B's name to a promissory note. B under threat of

prosecuting A's son obtains a bond from A for the amount of the forged note.

If B sues on this bond the court

(a) has no jurisdiction in this case

(b) must not set aside the bond

(c) may set aside the bond

(d) none of above.

37. When the consent is caused by misrepresent-tation, the contract under

section 19 is

(a) valid

(b) void (c)

voidable

(d) illegal.

38. When the consent is caused by undue influence, the contract under

section 19A is

(a) valid

(b) void (c)

voidable

(d) illegal.

39. Where both the parties are under mistake as to matter of fact, the

contract under section 20 is

(a) voidable

(b) void

(c) valid

(d) illegal.

40. Where one of the parties is under a mistake as to matter of fact the

contract is (a) valid

(b) void (c)

voidable (d)

illegal.

41. Considerations & objects are unlawful where it is

(a) forbidden by law or defeat the provision of any law

(b) which is fraudulent

(c) which is immoral & against the public policy

(d) all the above.

42. If only a part of the consideration or object is unlawful, the contract

under section 24 shall be

(a) valid

(b) voidable

(c) void

(d) illegal.

43. A contract without consideration under section 25 is

(a) valid

(b) voidable

(c) void

(d) illegal.

44. Consideration should be something in return of promise which

(a) both the law and parties regard, as having some value

(b) only law regards a having some value





(c) only the parties regard some value

(d) only adequate value necessary.

45. If the proposer prescribes the mode & manner of acceptance, the

acceptance

(a) can be in any manner & mode

(b) should be in the manner & mode prescribed

(c) can be in any reasonable mode & manner

(d) all the above.

46. Parties are not competent to contract if any of them is

(a) minor

(b) insane

(c) declared unqualified (d) all the above.

47. Consent is free under section 14 if not caused by

(a) coercion & undue influence

(b) fraud and misrepresentation

(c) mistake subject to the provisions of sections 20, 21 and 22

(d) all the above.

48. Consent under section 13 means

(a) agreeing on the same thing in the same sense

(b) agreeing on the same thing at the same time

(c)agreeing on the same thing at different time

(d) agreeing on different things at different times.

49. A contract which is valid initially however, ceases to be enforceable

subsequently, the contract

(a) remains valid

(b) becomes voidable when enforceable

(c) becomes void when it enforceable (d) becomes void since inception.

50. Agreements, the meaning of which is not certain or not capable of being

made certain under section 29 is

(a) void

(b) voidable

(c) illegal

(d) valid

51. An agreement in restraint of trade under section 27 is

(a) valid

(b) voidable

(c) void

(d) unenforceable

52. An agreement restraint of trade is valid under section 27 if relates to

(a) sale of goodwill

(b) mutual adjustment

(c) business contingency (d) none of the above.

53. An agreement not to pursue any legal remedy to enforce the rights under

section 28 is

(a) valid

(b) voidable

(c) void

(d) unenforceable.

54. An agreement not to persue legal remedies but to refer the dispute to the

arbitrator, under section 28 is

(a) valid

(b) voidable

(c) void

(d) unenforceable.

55. An agreement to refer the dispute to the arbitrator is valid

(a) in respect of disputes already arisen

(b) in respect of disputes which may arise in future

(c) both (a) & (b)

(d) neither (a) nor (b)

56. An agreement by way of wager under section 30 is

(a) void

(b) voidable

(c) valid

(d) unenforceable

57. An agreement in connection with horse- racing under section 30 is

(a) unlawful

(b) void

(c) voidable

(d) valid.

58. An agreement in restraint of marriage under section 26 is

(a) void

(b) voidable

(c) valid

(d) unenforceable

59. If only a part of the consideration or object is unlawful, the contract

under section 24 shall be

(a) valid to the extent the same are lawful

(b) void to the extent the same are unlawful

(c) void as a whole

(d) valid as a whole.

60. An agreement shall be void on account of

(a) mistake of fact by one party

(b) mistake of fact by both the parties

(c) mistake of foreign law

(d) both (a) & (b).

61. Coercion which vitiates free consent under section 15 is

(a) committing or threatening to commit any act which is forbidden by law

(b) committing or threatening to commit any act which is forbidden by Indian

Penal Code

(c) unlawful detaining or threatening to detain any property with an intention to

causing any person to enter into an agreement

(d) all the above.

62. What is correct of a standard form contract

(a) it is a valid contract

(b) one party has no choice but to accept & sign the contract

(c) both (a) & (b)

(d) the consent is not a free consent.

63. Law of contract primarily

(a) specifies the circumstances in which promises are binding on the

parties to the contract

(b) lays down certain norms by which the parties are bound (c) lays

down the circumstances under which a promise may be made (d) all

the above.

64. Misrepresentation under section 18 means

(a) a positive assertion, in a manner not warranted by the information of the

person making it, not true but he believes it to be true

(b) any breach of duty, which gains an advantage to the person committing it,

by misleading another to his prejudice

(c) causing a party to make an agreement to make a mistake as to the subject

matter of contract (d) all the above.

65. A person is deemed to be in a position to dominate the will of another by

undue influence if the mental capacity is affected temporarily or

permanently by

(a) reason of age

(b) reason of illness

(c) mental or bodily distress

(d) all the above.

66. An agreement to remain unmarried is

(a) valid

(b) voidable

(c) void

(d) unenforceable.

67. A general offer open for world at large can be accepted

(a) by sending a communication of acceptance

(b) by complying with the conditions of offer

(c) by tendering himself to comply the conditions of offer


68. The term consensus ad-idem means

(a) general consensus

(b) reaching an agreement

(c) meeting of minds upon the same thing in( the same sense (d) all the above.

69. Which one of the following does not amount to fraud

(a) suggestion as a fact which is not true, by one who does not believe it to be

true

(b) active concealment of a fact

(c) a representation made without knowing it to be false, honestly believing it to

be true

(d) a promise made without any intention of performing it.

70. Contract without consideration made in writing & registered and made

on account of natural love and affection is

(a) void

(b) voidable

(c) valid

(d) unenforceable.

71. Inadequacy of consideration does not make the contract

(a) void

(b) voidable

(c) unenforceable

(d) neither void nor voidable.

72. Inadequacy of consideration is relevant in determining the question of (a)

fraud

(b) misrepresentation

(c) undue influence (d)

free consent.

73. Agreement without consideration is valid

(a) when made out of love & affection due to near relationship

(b) when made to compensate a person who has already done something

voluntarily

(c) when made to pay a time barred debt (d) all the above.

74. A contract based on the happening or non- happening of a future event

under section 31 is called (a) a contingent contract

(b) a wagering contract

(c) a contract marked with uncertainty and hence void (d)

none of the above.

75. A contingent contract to do or not to do anything on the happening of an

uncertain future event under section 32

(a) is never enforceable

(b) becomes enforceable only on the happening of that event

(c) enforceable since the time of making it

(d) becomes enforceable in the immediate possibility of happening of that event.

76. A contingent contract

(a) is void

(b) never becomes void

(c) becomes void when the event becomes impossible

(d) is voidable.

77. A contingent agreement based on an impossible event under section 36

(a) is void

(b) is void till the impossibility is known

(c) becomes void on the knowledge of impossibility (d)

all the above.

78. What is true of misrepresentation

(a) it is the same thing as fraud

(b) it renders the contract voidable

(c) it may be due to innocence

(d) both (b) & (c).

79. Two persons have the capacity to contract under section 11

(a) if both are major

(b) if both are not of unsound mind

(c) if none is declared unqualified to contract (d) all are correct.

80. A contract with minor is

(a) voidable at the instance of the minor

(b) voidable at the instance of other party

(c) void

(d) valid.

81. An agreement to do an act impossible in itself under section 56 is

(a) void

(b) valid

(c) voidable

(d) unenforceable.

82. A contingent contract based on the specified uncertain event happening

within a fixed time under section 35

(a) remains valid even if the event does not happen within that fixed time

(b) becomes void at the expiration of the time fixed

(c) becomes void if the happening of that event becomes impossible before the

expiry of time fixed

(d) both (b) & (c).

83. A contingent contract based on the specified uncertain event not

happening within a fixed time under section 35

(a) can be enforced if the event does not happen within the time fixed

(b) can be enforced if before the expiry of time fixed, it becomes certain that such

an event shall not happen (c) cannot be enforced at all, being void (d) both (a)

& (b).

84. A promisor can perform

(a) the promise himself

(b) the promise through his representa-tive competent to perform

(c) the promise through his representa-tive irrespective of the competency of that

representative (d) both (a) & (b).

85. A promisee can accept the performance (a) from the promisor himself

(b) from the

representative of the

promisor competent to

perform

(c) from a third person (d)

all the above.

86. In case of joint promise, generally the performance must be by

(a) all the promisors jointly

(b) any one of them individually (c)

one not authorised to perform


87. In cases of joint promise generally a promisee can compel

(a) all the joint promisors to perform

(b) any one of them to perform

(c) some of them to perform (d) all the above.

88. Generally, the joint promisors can

(a) compel each other to contribute equally

(b) not to compel each other to contribute equally

(c) cannot compel each other to contribute


89. Where one of the joint promisors makes a default in contribution of

performance

(a) the other joint promisors have no right against the defaulter

(b) have to bear the loss in equal share

(c) not supposed to bear the loss

(d) the contract becomes void to that extent.

90. In case of default by joint promisors the promisee

(a) can sue any one of them for the entire promise

(b) can sue any one of them to the extent of his share in the joint promise

(c) both (a) & (b)

(d) cannot sue any single promisee.

91. In case of death of a joint promisor(s) the promisee

(a) can enforce the contract against the survivor(s) of the said joint promisor(s)

alongwith the joint promisors who are alive

(b) cannot enforce the contract against the survivor(s) of the said joint promisor(s)

(c) both (a) & (b)

(d) cannot enforce the contract against any of them.

92. In a contract not specifying the time for performance, the promisor can

perform the contract

(a) within any time howsoever long it may be

(b) within the shortest time

(c) within a reasonable time (d) none of the above.

93. What is a reasonable time for performance of a contract

(a) is a question of fact

(b) is a question of law

(c) is a mixed question of fact & law

(d) is a question of prudence.

94. A contract not specifying the place of performance

(a) performed at any place to the knowledge of the promisee

(b) the promisor has to apply to the promisee for appointment of a place of

performance & perform the promise at that place

(c) the promisor need not seek any instructions from the promisee as to the place

of performance

(d) the promisor can perform the promise at a place other than the place appointed

by the promisee.

95. In case the promisee prescribes the manner and time of performance of

promise

(a) the performance must be in the manner and at the time prescribed

(b) the performance can be in a different manner but at the time prescribed

(c) the performance can be in the manner prescribed but at a time beyond the time

prescribed

(d) the performance need not be in the manner and time prescribed.

96. If the time of performance of the contract is the essence of the contract

and the promisor fails to perform the contract by the specified time

(a) the contract becomes void

(b) the contract remains valid

(c) the contract becomes voidable at the instance of the promisee (d) the contract

becomes unenforceable.

97. If the time is not the essence of the contract the failure to perform the

contract by the specified time makes the contract

(a) void

(b) voidable at the instance of the promisee

(c) remains valid but the promisee can claim compensation for the loss suffered

by him by such failure

(d) remains valid & can be performed at any subsequent time without being liable

for the loss suffered by the promisee.

98. In contract for sale of immovable property the presumption is that the

time is

(a) the essence of the contract

(b) not the essence of the contract

(c) the essence of the contract but failure does not make the contract voidable

(d) not the essence of the contract but makes the contract voidable at the instance

of the other party.

99. Reciprocal promises provide for doing certain things which are legal &

certain others which are illegal, under section 57

(a) the entire set of promises is void

(b) the first set is voidable, but the second set is void

(c) the first set is valid but the second set is void

(d) the entire set of promises is valid.

100. A contract, performance of which becomes impossible or unlawful

becomes

(a) void when the performance becomes unlawful or impossible

(b) void

(c) voidable when the performance becomes impossible.

(d) neither becomes void nor voidable

Extra Questions:

The Contract Act of 1872 was enacted on

A.25th April, 1872 B. 25th May, 1872

C. 25th June, 1872 D.None of above

The Contract Act, 1872 consists_____ sections

A.238 B. 248

C. 266 D.None of these

Definitions are provided in section_____ of The Contract Act

A.2 B. 3

C. 4 D.None of these

. When one person signifies to another his willingness to do or to abstain from

doing any thing with a view to obtaining the assent of that other person to such

act or abstinence he is said to make a

A.Proposal B. Promise

C. Both (a) and (b) D.None of these

When the person to whom the proposal is made signifies his assent thereto the

proposal is said to be accepted than its called

A.Proposal B. Promise

C. Agreement D.None of these

SALE OF GOODA ACT 1930

1.The Sale of Goods Act, was enacted on

A.15th, February, 1930 B. 15th, March, 1930

C. 15th, April, 1930 D.None of above

2 The Sale of Goods Act, was enforced on

A.1st day of May, 1930 B. 1st day of June, 1930

None of above

C.1st day of July, 1930 D.

3. The sale of Goods Act, 1930 contains

A.66 Sections B. 68 Sections

C. 70 Sections D.None of above

4.The Sale of Goods Act, 1930 is based on

A.US Sale of Goods Act B. English Sale of Goods Act

C. Indian Sale of Goods Act D.None of above

. 5.Section 2, of The Sale of Goods Act is about

A.Principles B. Definitions

C. Exceptions D.None of abov

6. As per-section 2(1), a person who buys or agrees to buy goods is called

A.Buyer B. Seller

C. Both (a) and (b) D.None of above

The voluntary transfer of possession from one person to another is called

7. A.Transfer B. Change of possession

C. Delivery D.None of above

Section 2, sub-section______, of the Sale of Goods Act, 1930 defines

"Goods"

8.

A.5 B. 6

C. 7 D.None of above

As per section 2, sub section 7 every kind of moveable property other than

actionable claim and money is called

9.

A.Goods B. Future goods


Future goods means goods to be manufactured or produced or acquired by the

seller

10.

A.In future prescribed time B. After making of contract

C. Before making of contract D.None of above

As per section 2 sub-section 8, of the Sales of Goods Act, insolvent means a

person

11. Who has ceased to pay his debts in Or can not pay his debts as they

A. B.

the ordinary course of business become due


12. The agent having in customary course of business as such agent authority

either to sell goods or to consign goods for the purpose of sale or to buy

goods or to raise money on the security of goods is called

A.Agent B. Mercantile agent

C. Partner D.None of above

As per section 2(12), of the Sale of Goods Act, quality of goods include

13. A.State of goods B. Conditions of goods

C.Both (a) and (b) D.None of above

The goods identified and agreed upon at the time a contract of sale is made

are called

14.

A.Ordinary goods B. Specified goods

C. Scheduled goods D.None of above

Section 4, of the Sale of Goods Act 1930, deals with

15. A.Sale B. Agreement to sell


As per section 4(2), of The Sale of Goods Act, a contract of sale may be

A.Absolute B. Conditional


16. According section 5(2) Subject to provision of any law for the time being in

force a contract of sale may be

A.Made in writing B. By words of mouth

Partly in writing or partly in

C. D.All of above ways words of mouth

Section 12, of the Sale of Goods Act deals with

A.Condition in contracts B. Warraty in contracts


A stipulation in contract of sale with reference to goods which are the subject

there of may be

A.A condition B. A warranty

C.Both (a) and (b) D.None of abov

Section 31 of the Sale of Goods Act deals with duties of seller

A.To show goods B. To deliver goods

C. To change goods D.None of above

Section 31, of the Sale of Goods Act, duty bounds the buyer to

A.Accept the goods B. Pay for the goods


Section_____ to______, of the Sale of Goods Act deals with performance of

the contract

A.31 to 44 B. 25 to 40


Definition of unpaid seller is provided in Section____ of The Sale of Goods Act,

1930

A.45 B. 46


Section_____ of the Sale of Goods Act deals with rights of unpaid seller

A.46 B. 47


CHAPTER 3.

NEGOTIABLE INSTRUMENT ACT 1881

1. The Negotiable Instruments Act, 1881 applies to

(a) the whole of India

(b) the whole of India except the State of Jammu and Kashmir

(c) those states as notified by the Union Government from time to time in the

Official Gazette

(d) the whole of India except the State of Jammu and Kashmir and the North-

Eastern States.

2. The Negotiable Instruments Act, 1881 came into force on

(a) 9th December, 1881

(b) 19th December, 1881

(c) 1st March, 1882


3. The undertaking contained in a promissory note, to pay a certain sum of

money is

(a) conditional

(b) unconditional

(c) may be conditional or unconditional depending upon the circumstances (d)

none of the above.

4. A bill of exchange contains a/an

(a) unconditional undertaking

(b) unconditional order

(c) conditional undertaking

(d) conditional order.

5. Cheque is a

(a) promissory note

(b) bill of exchange (c)

both (a) and (b) above

(d) None of the above.

6. The term "a cheque in the electronic form" is defined in the Negotiable

Instruments Act, 1881 - under

(a) section 6(a)

(b) section 6(l)(a)

(c) explanation 1(a) of section 6 (d) section 6A.

7. The term 'Negotiable instrument' is defined in the Negotiable Instruments

Act, 1881, under section

(a) 12

(b) 13

(c) 13A

(d) 2(d).

8. The term 'negotiation' in section 14 of the Negotiable Instruments Act,

1881 refers to

(a) the transfer of a bill of exchange, promissory note or cheque to any person,

so as to constitute the person the holder thereof

(b) the payment by a bank on a negotiable instrument after due verification of

the instrument

(c) the bargaining between the parties to a negotiable instrument (d) all of the

above.

9. 'At sight' under section 21 of the Negotiable Instrument Act, 1881, means

(a) on presentation

(b) on demand

(c) on coming into vision


10. Who are the parties in a bill of exchange? A: Drawer, Drawee,

Payee[Sec.7]

11. Who are the parties in a bill of exchange? A: Drawer, Drawee,

Payee[Sec.7]

12. ______is an instrument in writing containing an unconditional

order, signed by the maker, directing a certain person to pay a certain

sum of money only to, or to the order of a certain person or to the bearer.

A: Bill of Exchange[Sec.5]

13. ________is a person entitled in his own name to the possession of

a promissory note, bill of exchange or cheque and to receive or recover

the amount due thereon from the parties. A: Holder[Sec.8]

14. ______is generally a person who for consideration became

possessor of a promissory note, bill of exchange or cheque. A:

Holder in due course[Sec.9]

15. Negotiable Instrument is defined in _________. A: Sec.13

16. What is the process by which a negotiable instrument is

transferred to any person so as to constitute such person the holder

called? A: Negotiation[Sec.14]

17.Liability of drawer to compensate the holder in case of dishonour is

primarily provided under_______. A: Sec 30

18. A negotiable instrument made, drawn, accepted, endorsed or transferred

without consideration, or for a consideration which fails, creates _________ of

payment between the parties to the transaction. A: No obligation[Sec.43]

19. _________is one mode by which the maker of a negotiable instrument

discharges himself from liability.

A: Cancellation.;Release and Payment are other modes[Sec. 82]

Chapter 4

THE COMPANIES ACT (AMENDMENT 2015)

1. The term company is defined under which sec of the Act?

a) Sec 3 (1) b) Sec 4 (2) c) Sec 2 (4) d) Sec 1 (3)

2. Property of the company belongs to

a) Company b) Share holders c) Members d) Promoters

3. Which company shares can be freely transferable

a) Private Company b) Public Company c) Both (a) & (b) d) None of the above

4. Minimum number of members in case of public company

a) 1 b) 2 c) 5 d) 7

5. Minimum number of members in case of private company is

a) 1 b) 2 c) 3 d)

6. Maximum no. of members in case of private company is

a) 50 b) 100 c) 150 d) 200

7. Maximum no .of members in case of public company is

1) 0 b) unlimited c) 50 d) 100

8. How many months did the company can continue its business u/s 45 _______

a) 1 b) 2 c) 5 d) 6

9. Minimum subscription should be received with in ______days

a) 120 b) 125 c) 130 d) 135

10. If minimum subscription is not received application money should be

refunded with in

______days

a) 20 b) 25 c) 30 d) 10

11. Liability of a member in case of a private company is

a) Limited b) Unlimited c) Both (a) or (b) d) None of the above

12. Maximum no. of persons in case of partnership banking business ______ a)

10 b) 20 c) 30 d) 5

13. Minimum paid up share capital in case of a private company is _______

a) 1 Lakh b) 2 Lakhs c) 3 Lakhs d) 4 Lakhs

14. Minimum paid up share capital in case of a public company is ________

a) 1 Lakh b) 3 Lakhs c) 5 Lakhs d) 7 Lakhs

15. Minimum no. of Directors in case of a public company is __________ a)

1 b) 2 c) 3 d) 4

16. Minimum no. of Directors in case of private company is _______ a) 1 b)

2 c) 3 d) 4

17. Age limit of Directors in case of public company is ______

a) 65 b) 70 c) 75 d) 80

18. Age limit of Directors in case of private company is _________

a) 65 b) 70 c) 75 d) No limit

19. The company’s nationality is decided by its

20. The liability of members if company is limited by guarantee.

a) Unpaid value of shares b) Guarantee amount

c) Unlimited liability d) None of the above

21. The liability of members if company is limited by shares

a) Unpaid value of shares b) Guarantee amount

c) Unlimited liability d) None of the above

22. XYZ Company conducted an AGM on 1 st Sept.2007. On that day due to fire

accident in the hall.

All shareholders died. Will the company will be in existence. a)

Yes b) No

23. Company’s owners are shareholders. So the company property belongs to the

share holders. Do you agree with this statement? a) Yes b) No

24. Company will have fundamental rights.

a) True b) False

25. XYZ Company shares are totally held by government. The company will be

government.

a) True b) False

26. If the company failed to refund application money with in 130 days from the

date of issue of prospectus on nonreceipt of minimum subscription who will be

personally liable.

a) Company b) Directors c) Shareholders d) None of these

27. Transfer of shares in the company is

a) Restricted b) Freely transferable c) Prohibited d) None of these

28. Transfer of shares in the partnership firm is

a) Restricted b) Freely transferable c) Prohibited d) None of these

29. Generally Company liability is

a) Limited b) Unlimited c) Situation does not arise

30. Generally rights and obligations of the company are regulated in

a) A.O.A b) M.O.A c) Partnership deed. d) None of these

31. A company is named as govt. company if it is holds ______% of paid up share

capital

a) more than 30 b) more than 40 c) more than 50 d) None

32. Which companies are exempted to add “Ltd” or “Pvt Ltd” at the end of their

name

a) Private b) Govt c) Defunct d) Association not for profits

33.. If the companies does not increase their paid up capital by 1/5 lakhs with in

2 years such

companies are known as ___________

a) Private b) Public c) Defunct d) Govt Company

34. Under which sec. a private company can voluntarily converted into public

company _______

a) 34 b) 44 c) 54 d) 64

35. Under which sec. a private company can automatically converted into a

public company ______ a) 34 b) 43 c) 53 d) 35

36. Central Government permission is required in case of _______ conversion

__________

a) Private to public b) Public to private c) Both (a) or (b) d) None of the above

37. With in how many days prospectus or statement in lieu of prospectus should

file with ROC

_______

a) 30 b) 40 c) 20 d) 50

38. ________% of shares should be held by a company in another company so as

to become subsidiary

a) more than 50 b) more than 40 c) more than 30 d) more than 20

39. According to which sec. name of the company should end with “Ltd” or

“Pvt Ltd”

a) 10 b) 11 c) 12 d) 13

40. The companies which are formed under special charter granted by the king or

queen of England are called

a) Statutory companies b) Registered companies c) Chartered companies d) None

of these

41.The companies which are formed under special Act. Those companies are

called as

a) Chartered companies b) Statutory companies c) Registered companies d) None

of these

42..The companies which are formed under companies Act. 1956. They will be

called as

a) Chartered companies b) Statutory companies c) Registered companies d) None

of these

43.Can private company go for public issue?

a) Yes b) No.

44.Can private company accept deposits from the public?

a) Yes b) No

45.Accepting of deposits from public in case of private company is

a) Prohibited b) Restricted c) Acceptable d) None of these

Chapter 5

Consumer Protection Act

The Consumer protection act 1986 enacted in

A15-Jun-05

b. 24-Oct-86

c. 24-Dec-86

d. 1 Jan 1986

The Consumer protection act 1986 extends to

a.Thewhole India

b.Thewhole India exceptNagalandtribalarea,

c.Thewhole India exceptNagaland tribal area and Jammu and Kashmir

d. The whole India except Jammu and Kashmir

Complaint means allegation in writing made by a complainant that

a. An unfair trade practice or restrictive trade practice has been adapted by

any traders or service provider

b. The goods bought by him or agreed to be bought by him suffer from one

or more defect

c. A traders or the service provider as the case may be has charged for the

goods or for the services mentioned in the complaint a price in excess of the

price d. All the above

Object of the central council is

a. The right to be protected against the marketing of goods which are

hazardous to life and property

b. The right to informed about the quality , quantity, potency, purity,

standard and price of goods so as to protect the consumer against unfair trade

practices

c. The right to be assured, wherever possible access to a variety of goods at

competitive prices

d. The right to heard and to be assured that consumer interests will receive

due consideration appropriate fora e. All the above

Members of state consumer protection council should not exceed a.

Two

b. Five

c. Ten

d. Three

The chairman of the district consumer protection council is

a. District magistrate

b. Collector of the District

c. MP of the district

d. None of these

Which one of the following know as Consumer disputes redressal agency?

a. District forum

b. State commission

c. National commission

d. All the above

President of district forum is

a. Collector of the district

b. A person who are qualified as advocate

c. A person who are qualified to be a district judge

d. None of these

The disqualification of the member is

a. Has been convicted and sentenced to imprisonment for an offence which ,

in the opinion of the state govt involves moral turpitude b. Is an

undercharged insolvent

c. Is of unsound mind

d. All the above

Intellectual Property act

Intellectual Property Rights (IPR) protect the use of information and ideas

that are of

a. Ethical value

b. Moral value

c. Social value

d. Commercial value

-The term ‘Intellectual Property Rights’ covers

a. Copyrights

b. Know-how

c. Trade dress

d. All of the above

The following can not be exploited by assigning or by licensing the rights to

others.

a. Patents

b. Designs

c. Trademark

d. All of the above

The following can be patented

a. Machine

b. Process

c. Composition of matter

d. All of the above

In ‘quid-pro-quo’, quo stands for

a. knowledge disclosed to the public

b. monopoly granted for the term of the patent

c. exclusive privilege of making, selling and using the invention

d. None of the above

Symbol of Maharaja of Air India is

a. Copyright

b. Patent

c. Trademark

d. All of the above

In India, the literary work is protected until

a. Lifetime of author

b. 25 years after the death of author

c. 40 years after the death of author

d. 60 years after the death of author

Design does not include

a. features of shape

b. composition of lines or colours

c. mode or principle of construction

d. None of the above

SUB: LEGAL ASPECTS OF BUSINESS (103) 1. An agreement enforceable at law...

Documents

Transcript of SUB: LEGAL ASPECTS OF BUSINESS (103) 1. An agreement enforceable at law...