Sample Questions - SCDL

1 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law Sample Questions : Section I: Subjective Questions 1. Who can be called sleeping or dormant partner? 2. Write a short note on future goods. 3. Differentiate between illegal and void agreements. 4. X gives a loan of Rs. 80,000 to Y. Z gives a guarantee for Rs. 30,000 only. If Y makes a default then Z would be liable to how much amount? Answer by giving reasons. 5. Enlist the contents of a consumer complaint. 6. Discuss in brief annual general meeting. 7. "Ratification must be done within a reasonable time." Critically evaluate the sentence. 8. Write a short note on crossed cheque. Section II: Objective Questions Multiple Choice Single Response 1. If the evidence proving the existence of a contract is lost, the contract stands 1] Profitable to one party 2] Beneficial to the parties 3] Operated by Law 4] Terminated 2. Where a person lawfully does anything for another person, not intending to do gratuitously and other person enjoys the benefit, the latter is bound to make the former 1] Compensation 2] Reward 3] Payment by mistake 4] Money 3.

2 X,Y,Z are under a joint promise to pay Rs. 6000/- to Mr. A. X is compelled to pay the whole amount of Rs. 6000/- to Mr. A. X can recover contribution of Rs. 2000/- from 1] Both Y and Z 2] Both Z and X 3] Y only SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law 4] Z Only 4. The liability of partner in profits vis-a-vis to the third party remains 1] Unlimited 2] Concerned 3] Limited 4] Short 5. Certain documents are required to be stamped properly and registered for the 1] Necessity 2] Legal enforceability 3] Requirement 4] Need 6. In case of fraud &wilful wrong by the sub-agent 1] The sub-agent is directly liable to the agent 2] The sub-agent & the agent both are liable to the principal 3] The sub-agent is directly liable to the principal 4] All of the above 7. A contract of guarantee has been defined. 1] Under section 123 2] Under section 124 3] Under section 125 4] Under section 126 8. The bank with which a person is having an account is known as 1] Collecting Bank 2] Negotiating bank 3] Debit Bank 4] Credit Bank 9.

3 Cheque is always drawn on 1] endorsee 2] payee 3] drawer 4] banker 10. Every company must have 1] A Specific name 2] A name resembling with other name 3] Common name 4] Identical name Multiple Choice Multiple Response 11. The consideration of an agreement is lawful unless it is? 1] Forbidden by Law 2] Given in cash 3] Fraudulent 4] Involves an injury to the person 12. The rules relating to the place of delivery are? 1] Goods must be delivered in business hour when a specific place is mentioned in the agreement 2] Where no place is mentioned the goods be sold at the place they are at the time of sale SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law 3] If the goods are not in existence the goods must be delivered at the place of their production 4] The goods must be delivered at residence of buyer in absence of any specific place is not mentioned 13. Implied condition by Sample , in the case of contract of sale means? 1] Bulk shall correspond with the Sample in quality 2] Buyer shall have reasonable opportunity of comparing the bulk with the Sample 3] Goods shall be free from any defect 4] Sometimes packing of goods may be the part of description 14.

4 Appropriate laboratory means a laboratory or organisation 1] Recognised by the Central Government 2] Established by any law for the time being in force 3] Recognised by a State Government 4] Recognised by a private organisation 15. The Articles of Association are subsidiary to 1] Firms Act 2] Companies Act 3] Certificate of Registration 4] Memorandum of Association 16. The Prospectus is 1] A document for raising share capital 2] Notice to the subscriber 3] Issued to invite the subscription to the securities of company 4] Invitation made to individual 17. A seller cannot convey a better title to the buyer than he himself has'. Exceptions to this general rule are 1] If sale is by a person not the owner by estoppel 2] If sale is by a mercantile agent 3] If sale is by one of joint owner 4] If sale is by the true owner 18. A partner is liable to be punished if he furnishes any particular, which he 1] Knows to be false 2] Known to be incomplete 3] Believes to be correct 4] Does not believe to be true Fill in the Blanks 19.

5 In the event of the death of the promisor, the promisee can compel the_____ to perform the promise 1] Legal representative of the promisor 2] Promisor 3] Relative of the promisor 4] Friend of the promisor 20. Unilateral mistake is not allowed as a _____ to avoid contract 1] Defence 2] Possession SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law 3] Refusal 4] Mistake 21. One man holds practically the _____ of the share capital of the one person company. 1] Whole 2] Half 3] Quarter 4] Partial 22. A without Bus authority, borrows from C for B. B takes objection to this transaction but afterwards pays interest to C as agreed upon. Bus conduct implies _____ of the loan. 1] Ratification 2] Revocation 3] Payment 4] Discharge 23. An offer lapses because of subsequent illegality or _____ of subject matter. 1] Division 2] Destruction 3] Waive off 4] Continuity 24. The minimum number of persons required to form a public company is _____ 1] Seven 2] Six 3] Five 4] Two 25.

6 The seller has no right to _____ even though the goods are in his possession, after the sale. 1] Retain 2] Resell 3] Destroy 4] Damage 26. An agreement entered into with a minor is _____ but not illegal. 1] Formal contract 2] Executed contract 3] Void contract 4] Implied contract 27. A contract of present sale of future goods purports to operate as an _____ and not sale 1] Agreement to sell 2] Agreement to resale 3] Agreement to reset 4] Agreement to purchase 28. Agreements which are not _____ on the parties do not constitute contract 1] Binding 2] Positive 3] Comprehensive 4] Focusing SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law State True or False 29. A partnership firm must get registered before its commencement? 30. Acceptance is a consent given by the promisee. 31. A contract of insurance is a contract of indemnity. 32. Memorandum is adopted to control internal operations of the company. 33. The Chairman of the Central Council will be The Minister -in - Charge of Department of Civil Supplies 34.

7 Parties to the agreement must be of same mind upon the same subject 35. The change of name shall affect all the rights and obligations of the company. 36. A bill of exchange is always drawn on a specified bank 37. In each consumer dispute the State Commission is the final authority 38. An agreement of social, moral, religious nature contemplated legal relationship. Match the Following 39. 1] Termination of the relationship between the parties to a contract 1] Discharge of a contract 2] Transfer of rights and benefits under a contract 2] Assignment 3] Each party has to perform his promise without waiting for the performance by the other party. 3] Mutual and Independent promises 4] Promises to be performed simultaneously 4] Mutual and Concurrent promises 5] Damages agreed upon 6] Breach of a contract 40. 1] Commercially saleable goods of such quality and under the description by which they are known in the market 1] Merchantable quality 2] Caveat Emptor 2] Let the buyer beware 3] Delivery 3] Voluntary transfer of possession of goods from one person to another person 4] Actual delivery 4] Physical delivery 5] Contract of sale 6] Breach of condition SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL) Subject: Business Law 41.

8 1] A contract entered with Pardanashin woman who observes complete seclusion of the custom 1] Presumed to have been entered by undue influence 2] Contract caused by a mistake as to any law in force in India 2] Contract not voidable 3] Criminal offence 3] Fraud 4] No relationship between promisor and promisee 4] Coercion 5] Performance at proper time 6] Dependent promises 42. 1] Documents required for opening an account 1] PAN Card, Address proof, Photographs 2] Reason for dishonour 2] Failure to present the cheque in bank within validity period of the cheque 3] Notice sent by registered post, not claimed 3] Deemed to be proper service 4] Dishonour of cheque 4] Section 138 5] Section 168 6] No delivery