Quiznetik
Business Law | Set 1
1. An agreement enforceable by law is
A. agreement
B. contract
C. offer
D. promise
Correct : B. contract
2. Every promise and every set of promises, forming the consideration for each other is an
A. agreement
B. offer
C. contract
D. acceptance
Correct : A. agreement
3. In a contract of indemnity the right of the indemnifier is similar to that of the:
A. debtor
B. creditor
C. surety
D. agent
Correct : C. surety
4. In a contract of indemnity, minimum no of parties are
A. 4
B. 3
C. 2
D. 1
Correct : C. 2
5. The sale of goods act is of:
A. 1903
B. 1923
C. 1930
D. 1932
Correct : C. 1930
6. Seller is a person who
A. sells
B. buys
C. debtor
D. transferee
Correct : A. sells
7. Document of title includes
A. business reports
B. railway receipt
C. cash memo
D. email
Correct : B. railway receipt
8. A person coming forward to accept after it has been dishonoured is called:
A. acceptor for honour
B. acceptor for paying
C. payment for honour
D. holder
Correct : A. acceptor for honour
9. Protest for better security is done for publicity stunt.
A. true
B. false
C. attention
D. fun
Correct : B. false
10. When an instrument is lost, it is presumed that it was duly stamped
A. true
B. false
C. not inchoate
D. inchoate
Correct : A. true
11. Which one of the following element is not necessary for a contract ?
A. Competent parties
B. Reasonable terms and conditions.
C. Free consent
D. Lawful concentration
Correct : B. Reasonable terms and conditions.
12. An agreement becomes a contract if :
A. It is by free consent of the parties.
B. Parties are competent.
C. It is enforceable by law.
D. None of the above .
Correct : C. It is enforceable by law.
13. In a standardized contract :
A. The individual has no choice but to accept and sign on
B. The individual must be protected in contract.
C. The agreement is without consideration.
D. None of the above.
Correct : A. The individual has no choice but to accept and sign on
14. The correct sequence in the formation of a contract is :
A. Offer, acceptance, agreement, consideration.
B. Agreement, consideration, offer,acceptance.
C. Offer , Consideration, acceptance, agreement.
D. Offer,acceptance, consideration, agreement.
Correct : D. Offer,acceptance, consideration, agreement.
15. A sells, by auction to B a horse which A knows to be unsound. A says nothing to B about the horse unsoundness. A does :
A. Fraud
B. Misrepresentation
C. No fraud
D. Undue Influence
Correct : C. No fraud
16. A petient in a lunatic Asylum who is at intervals of sound mind :
A. May not contract.
B. May contract.
C. May contact during those intervals when he is of sound mind.
D. May contract only after he becomes completely of sound mind .
Correct : C. May contact during those intervals when he is of sound mind.
17. Which is not the correct statement ?
A. If consent is the result of coercion, the agreement is
B. If a party is minor, the agreement is void .
C. If the object of an agreement is unlawful, the agreement is void.
D. If the consideration of an agreement is unlawful, the agreement
Correct : A. If consent is the result of coercion, the agreement is
18. What is the purpose behind the enactment of Sale of Goods Act, 1930?
A. To define the laws relating to the sale of goods
B. To consolidate and amend the laws relating to the sale of goods
C. To consolidate, amend and define the laws relating to the sale of goods
D. To define and amend the laws relating to the sale of goods
Correct : D. To define and amend the laws relating to the sale of goods
19. Section 2(1) of Sale of Goods Act defines ‘buyer’ as:
A. Person who buys goods and services
B. Person who agrees to buy goods
C. Person who buys or agrees to buy goods
D. Person who buys or agrees to buy goods and services
Correct : C. Person who buys or agrees to buy goods
20. Before the enactment of Sale of Goods Act, the provisions regarding Sale of
A. Indian Contract Act, 1872
B. Indian Registration Act, 1908
C. Transfer of Property Act, 1882
D. Indian Partnership Act, 1932
Correct : A. Indian Contract Act, 1872
21. Which of the following cannot be said to be included in the term “goods” defined under section 2(7) of the Sale of Goods
A. Stock
B. Shares
C. Growing crops
D. Actionable claims
Correct : D. Actionable claims
22. The voluntary transfer of possession from one person to another is called
A. Transfer
B. change of possession
C. Delivery
D. None of above
Correct : C. Delivery
23. Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:
A. Right of lien on goods for the price while the goods are in possession of seller.
B. Right of stopping the goods in transit, in case of insolvency of buyer
C. Right of resale as limited by the Act
D. Right of withholding delivery where the property in the goods has passed to the buyer
Correct : D. Right of withholding delivery where the property in the goods has passed to the buyer
24. Future goods means goods to be manufactured or produced or acquired by the seller
A. In future prescribed time
B. after making of contract
C. before making of contract
D. none of the above
Correct : B. after making of contract
25. Bearer cheques are also known as------ cheques.
A. Crossed
B. General
C. Special
D. Open
Correct : D. Open
26. Which of the following is not a negotiable instrument
A. Bill of exchange and cheque
B. Postal Order & Currency note
C. Promissory note and cheque
D. Promissory note & Bill of exchange
Correct : B. Postal Order & Currency note
27. Features of Negotiable instruments are -
A. Written and signed
B. Recovery
C. Freely transferable
D. All of the above
Correct : D. All of the above
28. Holder in due course means any person-
A. Drawing the instrument
B. who for consideration became the possession of promissory note
C. to whom order the money is directed to paid
D. none of the Above
Correct : B. who for consideration became the possession of promissory note
29. Cheque can be of types and crossing of cheques can be of types.
A. three, two
B. two, two
C. two, three
D. three, three
Correct : B. two, two
30. What are the limits of number of members in a Private Company?
A. Fifty
B. Seven
C. Twenty
D. Two hundred
Correct : D. Two hundred
31. A public company must have at least————- directors whereas a private company must have at least ——————-
A. 3;2
B. 23
C. 25
D. 810
Correct : A. 3;2
32. The registered office clause of memorandum of association contains
A. The name of the state in which the registered office of the company is to
B. The name of the city/town only and not that of the state.
C. The name of registrar of companies
D. The complete postal address.
Correct : A. The name of the state in which the registered office of the company is to
33. Which documents contains the regulations relating to the internal management of a
A. Memorandum of Association
B. Articles of Association
C. Both (a) and (b)
D. None
Correct : B. Articles of Association
34. ………….meeting is the first meeting of the members of the public company after
A. board
B. annual general
C. departmental
D. statutory
Correct : D. statutory
35. Who can endorse the negotiable
A. Maker of the
B. older of the
C. Drawee
D. Both of A and B
Correct : D. Both of A and B
36. A Bill of exchange contains —
A. Conditional undertaking
B. Unconditional undertaking
C. Unconditional order
D. Conditional order
Correct : C. Unconditional order
37. Memorandum of Association does not include.
A. Subscription Clause.
B. Capital Clause.
C. Liability Clause.
D. Assets Clause.
Correct : D. Assets Clause.
38. Quorum for general meeting for private and public companies.
A. 2 and 5.
B. 3 and 6.
C. 5 and 7.
D. None of these.
Correct : A. 2 and 5.
39. What do you mean by symbolic possession ?
A. Delivery of keys of lock of godown where the goods
B. Conditional promise to delivery.
C. Actual Delivery.
D. None of these
Correct : A. Delivery of keys of lock of godown where the goods
40. What does Caveat emptor means?
A. beware agent
B. beware customer
C. beware trader
D. beware seller
Correct : B. beware customer