Business law_ Mcqs_ II B.Com students material

Business law_ Mcqs_ II B.Com students material

• 1.
  Business law -Unit 1 1. Business law primarily deals with: a) Personal relationships b) Business transactions and commercial matters c) Religious practices d) Political systems Answer: b) Business transactions and commercial matters 2. Which of the following is not a source of business law in India? a) Customs b) Judicial decisions c) Religious books d) Company Memorandum Answer: d) Company Memorandum 3. A contract is defined as an agreement enforceable by law under which section of the Indian Contract Act, 1872? a) Section 2(a) b) Section 2(e) c) Section 2(h) d) Section 3(b) Answer: c) Section 2(h) 4. Which of the following is not an essential element of a valid contract? a) Free consent b) Lawful consideration c) Agreement in writing only d) Competent parties Answer: c) Agreement in writing only 5. An offer may be: a) Express
• 2.
  b) Implied c) Generalor Specific d) All of the above Answer: d) All of the above 6. A proposal when accepted becomes a/an: a) Agreement b) Contract c) Promise d) Consideration Answer: c) Promise 7. Communication of acceptance is complete against the proposer: a) When it is put into transmission b) When it comes to the knowledge of the proposer c) When acceptance is signed d) When contract is registered Answer: b) When it comes to the knowledge of the proposer 8. Communication of acceptance is complete against the acceptor: a) When it is posted b) When it reaches the proposer c) When proposer reads it d) When both parties meet Answer: a) When it is posted 9. Revocation of offer can be made: a) At any time before acceptance is complete against the proposer b) At any time after acceptance is complete against the proposer c) Only after agreement d) Never
• 3.
  Answer: a) Atany time before acceptance is complete against the proposer 10. Which of the following is not a mode of revocation of an offer? a) Lapse of time b) Death of offeror before acceptance c) Revocation communicated before acceptance d) Signing of contract Answer: d) Signing of contract 11. Consideration means: a) Free consent b) Something in return c) Agreement in writing d) Lawful object Answer: b) Something in return 12. No consideration, no contract is laid down under which section of Indian Contract Act? a) Section 10 b) Section 11 c) Section 25 d) Section 2(h) Answer: c) Section 25 13. Which of the following is a valid consideration? a) Past consideration b) Present consideration c) Future consideration d) All of the above Answer: d) All of the above 14. Consideration must move at the desire of: a) Offeror
• 4.
  b) Offeree c) Promisor d)Any third party Answer: c) Promisor 15. An agreement without consideration is: a) Always valid b) Void, unless it falls under certain exceptions c) A contract d) Legally enforceable Answer: b) Void, unless it falls under certain exceptions Unit 2 1. For a contract to be valid, its object must be: a) Moral b) Legal c) Political d) Social Answer: b) Legal 2. An agreement with an unlawful object is: a) Voidable b) Void ab initio c) Valid d) Enforceable Answer: b) Void ab initio 3. Which of the following is not unlawful under Indian Contract Act?
• 5.
  a) Object forbiddenby law b) Object involving injury to person or property c) Object against public policy d) Object in written form Answer: d) Object in written form 4. An agreement to commit a crime is: a) Voidable b) Valid c) Illegal d) Enforceable Answer: c) Illegal 5. Illegal agreements are: a) Enforceable by law b) Not enforceable and punishable c) Enforceable with penalty d) Conditional Answer: b) Not enforceable and punishable 6. Agreements that are collateral to an illegal agreement are: a) Valid b) Enforceable c) Void d) Binding Answer: c) Void
• 6.
  7. A wageringagreement is: a) Void b) Illegal in all states of India c) Valid in all states d) A contract Answer: a) Void 8. A wager means: a) A promise to do something b) A bet or gamble depending on uncertain event c) A valid consideration d) A lawful object Answer: b) A bet or gamble depending on uncertain event 9. In which state of India wagering agreements are declared illegal and punishable? a) Karnataka b) Tamil Nadu c) Maharashtra d) West Bengal Answer: c) Maharashtra 10. Agreements opposed to public policy are: a) Always valid b) Void c) Enforceable with court’s permission d) Depends on parties Answer: b) Void
• 7.
  11. Marriage brokeragecontracts are considered: a) Legal b) Opposed to public policy c) Voidable d) Valid if in writing Answer: b) Opposed to public policy 12. Agreements restricting trade are: a) Valid in all cases b) Void as against public policy c) Enforceable by courts d) Binding on both parties Answer: b) Void as against public policy 13. Agreements interfering with administration of justice are: a) Valid contracts b) Opposed to public policy and void c) Partially valid d) Enforceable if agreed by both parties Answer: b) Opposed to public policy and void 14. An agreement to stifle prosecution is: a) Valid b) Void as opposed to public policy c) Enforceable by law d) A legal agreement
• 8.
  Answer: b) Voidas opposed to public policy 15. An agreement in restraint of marriage is: a) Valid b) Void c) Voidable d) Enforceable Answer: b) Void Unit 3 1. Performance of a contract means: a) Refusal to perform a contract b) Carrying out obligations under the contract c) Termination of a contract d) Breach of contract Answer: b) Carrying out obligations under the contract 2. When both parties fulfill their promises, the contract is said to be: a) Void b) Executed c) Discharged d) Voidable Answer: c) Discharged 3. A contract is discharged by: a) Performance b) Mutual agreement
• 9.
  c) Impossibility ofperformance d) All of the above Answer: d) All of the above 4. Supervening impossibility makes a contract: a) Valid b) Void c) Voidable d) Illegal Answer: b) Void 5. Quasi contracts are based on the principle of: a) Consent of parties b) No consideration c) Prevention of unjust enrichment d) Illegal object Answer: c) Prevention of unjust enrichment 6. Which of the following is not a quasi contract? a) Claim for necessaries supplied to a minor b) Obligation to pay for non-gratuitous acts c) Contract created by mutual agreement d) Responsibility of finder of goods Answer: c) Contract created by mutual agreement 7. Remedies for breach of contract include: a) Damages
• 10.
  b) Rescission c) Specificperformance d) All of the above Answer: d) All of the above 8. The most common remedy for breach of contract is: a) Injunction b) Specific performance c) Damages d) Rescission Answer: c) Damages 9. Special damages can be claimed when: a) They arise naturally from the breach b) They are communicated at the time of contract c) They are not foreseeable d) They are remote Answer: b) They are communicated at the time of contract 10. Specific performance is granted when: a) Damages are adequate remedy b) Damages are not an adequate remedy c) Contract is unlawful d) Contract is void Answer: b) Damages are not an adequate remedy 11. Bailment is defined under which section of the Indian Contract Act?
• 11.
  a) Section 148 b)Section 124 c) Section 182 d) Section 25 Answer: a) Section 148 12. Bailment is: a) Delivery of goods in trust for some purpose b) Transfer of ownership of goods c) Sale of goods d) Gift of goods Answer: a) Delivery of goods in trust for some purpose 13. The person delivering goods in bailment is called: a) Bailee b) Bailor c) Pledger d) Pledgee Answer: b) Bailor 14. The person to whom goods are delivered in bailment is called: a) Pledger b) Bailor c) Bailee d) Pawnor Answer: c) Bailee
• 12.
  15. The bailoris bound to disclose: a) All faults in goods bailed b) No faults in goods bailed c) Ownership of goods d) Only minor defects Answer: a) All faults in goods bailed 16. The bailee must return the goods: a) At the wish of the bailor b) As soon as the purpose is accomplished c) On demand of bailor before time d) After one year Answer: b) As soon as the purpose is accomplished 17. Pledge is a type of: a) Sale b) Bailment c) Lease d) Gift Answer: b) Bailment 18. The person who delivers goods as security for payment of debt is called: a) Bailor b) Pledgee c) Pledger (Pawnor) d) Bailee Answer: c) Pledger (Pawnor)
• 13.
  19. The personto whom goods are delivered as security is called: a) Pledger b) Pawnor c) Pledgee (Pawnee) d) Bailor Answer: c) Pledgee (Pawnee) 20. The pledgee has the right to: a) Retain goods for debt and interest b) Sell goods on default of pledger c) Recover expenses incurred for preservation of goods d) All of the above Answer: d) All of the above Unit 4 1. The Sale of Goods Act was enacted in: a) 1872 b) 1930 c) 1956 d) 2000 Answer: b) 1930 2. A contract of sale involves: a) Exchange of goods only b) Delivery of goods without payment c) Transfer of ownership of goods for price d) Gift of goods Answer: c) Transfer of ownership of goods for price
• 14.
  3. When thetransfer of ownership of goods is to take place at a future time, it is called: a) Sale b) Agreement to sell c) Bailment d) Pledge Answer: b) Agreement to sell 4. When ownership of goods passes immediately, it is called: a) Agreement to sell b) Sale c) Bailment d) Gift Answer: b) Sale 5. Essential elements of a contract of sale include: a) Goods b) Price c) Transfer of property d) All of the above Answer: d) All of the above 6. Condition in a contract of sale means: a) A minor term b) A fundamental term whose breach allows rejection of goods c) A warranty d) Optional term Answer: b) A fundamental term whose breach allows rejection of goods
• 15.
  7. Warranty ina contract of sale means: a) A fundamental term b) A minor term whose breach allows only damages c) A condition d) Ownership transfer Answer: b) A minor term whose breach allows only damages 8. Caveat Emptor means: a) Let the seller beware b) Let the buyer beware c) Good faith d) Transfer of ownership Answer: b) Let the buyer beware 9. The principle of Caveat Emptor does not apply when: a) Seller conceals defects b) Sale is by sample c) Goods are sold by description d) Goods are unbranded Answer: a) Seller conceals defects 10. Transfer of property means: a) Transfer of possession only b) Transfer of ownership in goods c) Payment of price only d) Agreement to sell
• 16.
  Answer: b) Transferof ownership in goods 11. In a contract of sale, goods must be: a) Existing or future goods b) Specific or ascertained goods c) Both a and b d) Only existing goods Answer: c) Both a and b 12. If a contract is “agreement to sell,” it becomes a sale: a) Immediately b) On future date or event c) On delivery only d) Never Answer: b) On future date or event 13. A sale by description applies when: a) Goods are as per sample b) Goods are as per description c) Goods are unascertained d) Goods are pledged Answer: b) Goods are as per description 14. Sale by sample requires that: a) Bulk must correspond with sample b) Buyer must inspect goods c) Seller must transfer ownership
• 17.
  d) Payment isnot necessary Answer: a) Bulk must correspond with sample 15. Goods must be transferred with: a) Possession only b) Ownership and price consideration c) Warrantee only d) Delivery at seller’s shop Answer: b) Ownership and price consideration 16. Implied condition in a contract of sale does not include: a) Right to sell b) Goods free from encumbrances c) Seller’s personal guarantee d) Fitness for purpose Answer: c) Seller’s personal guarantee 17. Breach of warranty entitles the buyer to: a) Reject goods b) Claim damages only c) Cancel contract d) No remedy Answer: b) Claim damages only 18. Breach of condition entitles the buyer to: a) Reject goods and/or claim damages b) Claim damages only
• 18.
  c) No remedy d)Delay delivery Answer: a) Reject goods and/or claim damages 19. Future goods are: a) Already in existence b) To be manufactured or acquired after contract c) Pledged goods d) Goods in stock Answer: b) To be manufactured or acquired after contract 20. The property in unascertained goods passes: a) Immediately b) When goods are ascertained c) Never d) On payment only Answer: b) When goods are ascertained Unit 5 1. Performance of a contract of sale requires: a) Delivery of goods b) Payment of price c) Transfer of property d) All of the above Answer: d) All of the above
• 19.
  2. Delivery ofgoods can be: a) Actual delivery b) Constructive delivery c) Symbolic delivery d) All of the above Answer: d) All of the above 3. Sale by a non-owner is: a) Always valid b) Generally void c) Valid if seller has authority d) Enforceable by buyer only Answer: c) Valid if seller has authority 4. Nemo dat quod non habet means: a) Buyer beware b) No one can give what he does not have c) Sale by sample d) Ownership passes on delivery Answer: b) No one can give what he does not have 5. An unpaid seller is one who has: a) Not received the whole price or part of it b) Sold goods unlawfully c) Delivered goods without payment d) No ownership of goods Answer: a) Not received the whole price or part of it
• 20.
  6. An unpaidseller can exercise rights against: a) The goods b) The buyer personally c) Both goods and buyer d) Only the seller Answer: c) Both goods and buyer 7. Rights of unpaid seller against goods include: a) Right of lien b) Right of stoppage in transit c) Right of resale d) All of the above Answer: d) All of the above 8. Right of lien means: a) Seller can retain goods until payment b) Seller can cancel contract c) Seller can claim damages d) Buyer can repossess goods Answer: a) Seller can retain goods until payment 9. Right of stoppage in transit applies when: a) Goods are already delivered b) Buyer becomes insolvent during transit c) Buyer refuses to inspect goods d) Seller is unpaid but goods are sold
• 21.
  Answer: b) Buyerbecomes insolvent during transit 10. Right of resale allows unpaid seller to: a) Resell goods after giving notice to buyer b) Keep goods indefinitely c) Transfer ownership without notice d) Claim only damages Answer: a) Resell goods after giving notice to buyer 11. An unpaid seller can sue the buyer personally for: a) Price of goods b) Damages for non-acceptance c) Both a and b d) Ownership transfer Answer: c) Both a and b 12. Delivery is complete when: a) Goods are handed over b) Buyer inspects goods c) Price is paid d) Ownership is transferred Answer: a) Goods are handed over 13. Constructive delivery occurs when: a) Actual delivery of goods is made b) Transfer of documents of title is made c) Payment is made without delivery
• 22.
  d) Goods arepledged Answer: b) Transfer of documents of title is made 14. An unpaid seller can exercise lien: a) Even after delivery if goods are in possession b) Only before delivery c) Only after resale d) Only on partial payment Answer: a) Even after delivery if goods are in possession 15. Sale by a non-owner without authority: a) Transfers valid ownership b) Transfers void ownership c) Is enforceable against buyer d) None of the above Answer: b) Transfers void ownership