LAW AND ETHICS TEST - 1
Time Allowed: 3:00 Maximum Marks: 100
STRICT INSTRUCTIONS
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PAPER INSTRUCTION :-
QUESTION 1 IS COMPULSORY
SOLVE ANY 5 FROM REMAINING QUESTIONS
Q.No Questions Marks
MCQ. The contribution of employer to insurance fund is- 1
1 a. 1%
b. 10%
c. 12%
d. None of the above
MCQ. Contribution of 10% to PF is applicable to- 1
2 a. Any establishment in which less than 20 employees are employee.
b. Any establishment declared as sick industrial company
c. Jute company
d. All of the above.
MCQ. Which is NOT an example of “Promissory Note”: 1
.
3 a. I acknowledge myself to be indebted to B in
b. Mr B, I.O.U `1,000.” ` 1,000, to be paid on demand, for value received.”
c. “I promise to pay B or order ` 500”
d. None of the above
MCQ. In a Promissory Note, how many parties are involved: 1
4 a. One
b. Two
c. Three
d. Four
MCQ. The contribution shall be paid in a bank within day of the last day of the calendar month in which the contribution fall due 1
5 for any wage period.
a. 7
b. 14
c. 21
d. 30
MCQ. The Corporation may with the approval of establish and maintain in a State, hospitals, dispensaries 1
6 etc.,
a. Central Government;
b. State Government
c. Local Authority;
d. None of the above.
MCQ. Right to Property is a: 1
7 a. Fundamental Right
b. Fundamental Duty
c. Constitutional Right
d. None of the above
MCQ. On which date was the Sale of Goods enforced? 1
8 a. 1948
b. 1930
c. 1932
d. 1951
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Q.No Questions Marks
MCQ. As per Sale of Goods Act, this is not included: 1
9 a. Growing crop
b. Money
c. Table
d. Goodwill
MCQ. Condition is a stipulation which is essential to the main purpose of the contract 1
10 a. True
b. False
c. Partly true partly false
d. Neither false neither true
MCQ. Which of the following is true about the number of designated partners required in a Limited Liability Partnership? 1
11 a. A Limited Liability Partnership can have
b. A Limited Liability Partnership can have at least two designated partners at least three designated partners
c. A Limited Liability Partnership can have
d. A Limited Liability Partnership can have at least seven designated partners at least four designated partners
MCQ. Section 35 lays down provisions relating to calculation of direct tax payable by employer 1
12 a. True
b. false
c. Partly true partly false
d. Neither false neither true
MCQ. Section 45 deals with claims under Code and procedure there of 1
13 a. True
b. False
c. Partly true partly false
d. Neither false neither true
MCQ. Which one of the following is not correct in regard to share certificate? 1
14 a. The Company Secretary shall issue the share certificate.
b. The share certificate shall be issued in pursuance of a resolution of the Board;
c. Every share certificate shall be distinguished to its distinctive number.
d. The shares may be in the form.dematerialized
MCQ. The holders of equity shares with differential rights shall have the rights of getting bonus shares,rights issue etc., 1
15 a. True
.
b. False
c. Partly true partly false
d. Neither false neither true
MCQ. The securities premium account can be utilized for the purchase of its own shares of securities. 1
16 a. True
b. False
c. Partly true partly false
d. Neither false neither true
MCQ. The e-voting shall remain open for not less than 3 days and shall close at 5.00 p.m. on the datepreceding the date of 1
17 general meeting.
a. True
b. False
c. Partly true partly false
d. Neither false neither true
MCQ. OPC and other companies having up to 200 members are not required to transact any business through postal ballot. 1
18 a. True
b. False
c. Partly true partly false
d. Neither false neither true
MCQ. The following is the disadvantage of business ethics: 1
19 a. Through increasing morale and trust business can increase their market share
b. Publicity due to well and ethical performance
c. Acceptance of products of the company by the public
d. Diversity in achievements
MCQ. The term ethics is derived from latin word ‘Ethos’. 1
20 a. True
b. False
c. Partly true partly false
d. Neither false neither true
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Q.No Questions Marks
Q. 1. EPF Act is applicable to every establishment employing ________or more persons. 5
1(b) 2. The contribution or employer to the Fund is _______of basic wages, dearness allowance and retaining allowance, if any.
3. The Pension fund is administered by the___________.
4. The Employee’s Deposit Linked Insurance Scheme, 1976 came into effect from____________ .
5. The contribution to insurance fund is to be remitted by the employer within__________ days of the close of the month.
Q. Ajit an employee of Supertech Copper Ltd., continued to occupy the quarter of the company for eight months after 7
2(a) superannuation, company decided to forfeit the amount of gratuity of Ajit. Examine the decision taken by the company to
forfeit the amount of gratuity in the light of the Payment of Gratuity Act, 1972.
Q. Discuss the welfare measures to be taken in a factory for the workmen employed therein as per the Factories Act, 1948. 8
2(b)
Q. Which are the essential elements of a valid acceptance of a Bill of Exchange? An acceptor accepts a "Bill of Exchange" but 8
3(a) write on it "Accepted but payment will be made when goods delivered to me is sold. Decide the validity.
Q. Sushil retired from the services of ABC Limited, on 31st March, 2014. He had a sum of 10 lakhs in his Provident Fund 7
3(b) Account. It has become due for payment to Sushil on 30th April, 2014, but the company made the payment of the said
amount after one year. Sushil claimed for the payment of interest on due amount at the rate of 15 per cent per-annum for
one year. Decide, whether the claim of Sushil is tenable under the provisions of the Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952
Q. - Sec 8: Holder; Sec 9: Holder in due course (HIDC) 8
4(a) Mr.W draws a cheque of R 11,000 and gives to Mr. L by way of gift. State with reason whether
(1) Mr. Bis a holder in due course as per the Negotiable Instrument Act, 1881.
(2) Mr. B is entitled to receive the amount of 11,000 from the bank?
OR
Ram draws a cheque of 1 lakh. It was a bearer cheque. Raj kept the cheque with himself. After some time, Raj gives this
cheque to Shubham as a gift on his birthday. Decide whether Shubham is having a valid title over the cheque and whether
Shubham is a holder in due course or not in relation to this cheque as per the Section 9 of the Negotiable Instruments Act
1881.
Q. What are the powers of officers of appropriate Government to impose penalty in certain cases under the Code? 7
4(b)
Q. Explain the composition of Medical benefit council, under Employees State Insurance Act, 1948. 7
5(a)
Q. Sec 126: Contract of guarantee; Sec 133: Discharge of surety by 8
5(b) variance in terms of contract
.
Sudhir has given his residential property on rent amounting to 23,000 per month to Subhas
Amar became the surety for payment of rent by Subhas. Subsequently, without Amar's
consent, Subhas agreed to pay higher rent to Sudhir. After a few months of this, Subhas
defaulted in paying the rent.
(i) Explain the meaning of contract of guarantee according the provisions of the Indian
Contract Act,1872.
(ii) State the position of Amar in this regard.
Q. Ramesh, a transporter was entrusted with the duty of transporting tomatoes from a rural 7
6(a) farm to a city by Aswin. Due to heavy rains, Ramesh was stranded for more than two days.
Ramesh sold the tomatoes below the market rate in the nearby market where he was
stranded fearing that the tomatoes may perish. Can Aswin recover the loss from Ramesh on
the ground that Ramesh had acted beyond his authority?
OR
Mr. Savant, a cargo owner, chartered a vessel to carry a cargo of wheat from a foreign port
to Chennai. The vessel got stranded on a reef in the sea 300 miles from the destination. The
ship's managing agents signed a salvage agreement for Mr. Savant. The goods (wheat)
being perishable, the salvors stored it at their own expense. Salvors intimated the whole
incident to the cargo owner. Mr. Savant refuse to reimburse the Salvor, as it is the Ship-
owner, being the bailee of the cargo, who was liable to reimburse the salvor until the
contract remained unterminated. Referring to the provision of The Indian Contract Act
1872, do you
acknowledge or decline the act of Salvor, as an agent of necessity, for Mr. Savant. Explain?
Q. "The relationship of principal and agent (i.e. Agency) may be constituted by Subsequent 8
6(b) ratification by the principal" Examine the validity of the statement and state the requisites
of a valid ratification in the light of the provisions of the Indian Contract Act, 1872.
Q. What are the areas in business ethics? Write a note of the same 8
7(a)
Q. : Kavya Ltd. has a paid up share -capital of Rs. 80 crores. Anjali Ltd. holds a total of Rs. 50 crores of Kavya Ltd. Now, 7
7(b) Kavyo Itd. is making huge profits and wants to expand its business and is aiming of investing in Anjali Ltd Kavya Ltd. has
approached you to analyze whether as per the provisions of the Companies Act, 2013, they can hold 1/10th of the share
capital of Anjali Ltd.
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Q.No Questions Marks
Q. Annual Return-92 Wednesday Limited called its AGM in order to lay down the financial statements for Shareholders' 7
8(a) approval. Due to want of Quorum, the meeting was cancelled. The directors did not file the annual returns with the
Registrar. The directors were of the idea that the time for filing of returns within 60 days from the date of AGM would not
apply, as AGM was cancelled. Has the company contravened Section 92 of Companies Act, 2013 and if so, how it will be
penalized.
OR
Due to heavy rains and floods Chennai Lungi Limited was unable to convene AGM upto 30th September 2017. The
company has not filed the Annual Financial Statements, or the annual return as the directors o the company are of the
view that since the AGM did not take place, the period of 60 days for filing of annual return is not applicable and thus,
there is no contravention of Section 92 of the Companies Act, 201 Discuss whether the contention of directors is correct.
OR
Chaddi Buddy Limited is manufacturing premium quality milk based ice cream in two flavours-first chocolate and second
butter scotch. The company called its Annual General Meeting (AGM) in order to lay down the financial statements for
Shareholders' approval. However, due to want of quorum, the meeting w cancelled. Also, the Directors of the company did
not file the Annual Return with the Registrar. The directors were of the idea that the time for filing of returns within 60
days from the date of AGM would not apply, as AGM was cancelled. Has the company contravened Section 92 of
Companies Act, 2013? 1f the company has contravened the provisions of the Act, how will it be penalized?
Q. Elaborate on the concept of alternate dispute resolution 8
8(b)
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