MCQ on Legal Aspects of Business 1

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Objective Questions and Answers of MBA: MCQ on Legal Aspects of Business 1

Subject: MCQ on Legal Aspects of Business 1

Part 1: List for questions and answers of Legal Aspects of Business

 

Q1.A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property

a) For a price

b) In good

c) in goods to the buyer for a price

d) None of the options provided

 

Q2.According to Section 2(7) of Sale of Goods, ‘goods’ means

a) Every kind of movable property

b) Property other than actionable claims and money

c) Every kind of property

d) every kind of movable property, other than actionable claims and money

 

Q3.The goods which form the subject of a contract of sale

a) may be either existing goods, owned or possessed by the seller, or future goods

b) Are goods which are owned or possessed by the seller

c) Are existing goods only

d) None of the options provided

 

Q4.where trees are sold to be cut and then taken away by the buyer

a) That will be a contract for sale of immovable property

b) that will be a contract for sale of movable property.

c) That will be a contract of existing goods

d) That will be a contract of future goods

 

Q5.A contract of sale may be made

a) In writing

b) By word of mouth,

c) May be implied from the conduct of the parties

d) All options are correct

 

Q6.where the transfer of the property in the goods is to take place at a future time, the contract is called

a) Sale

b) an agreement to sell

c) Provisional sale

d) Conditional sale 

 

Q7.A stipulation collateral to the main purpose of the contract of sale of goods, is called

a) A condition

b) warranty

c) Guarantee

d) Stipulation

 

Q8.In a contract of sale of goods, Breach of a condition gives the aggrieved party right to

a) Repudiate the contract

b) Claim damages

c) repudiate the contract and also claim damages

d) None of the options provided

 

Q9.The implied conditions, in a sale by sample include

a) The bulk shall correspond with the sample in quality

b) The buyer shall have a reasonable opportunity of comparing the bulk with the sample

c) The goods shall be free from any defects rendering them un-merchantable, which would not be apparent on reasonable examination of the sample

d) all points given as option A, B and C

 

Q10.In a contract for sale of goods, Buyer may have an action, in respect of physical injuries caused by defect in the goods

a) against the manufacturer

b) Against the dealer

c) Aginast the dealer as also the manufacturer

d) None of the options is correct

 

Q11.In a contract for sale of goods, When the seller is bound to weigh, measure, test or do some other act for ascertaining the price, the property in the goods

a) passes at the time of agreement

b) Passes at the time of payment

c) Does not pass until such act is done and the buyer has a notice of it

d) Does not pass until a fresh agreement is made

 

Q12.The maxim is “nemo det quod non habet” which means that

a) No one can be the owner unless he makes payment

b) no one can give what he has not got

c) No one can get title of goods unless given in writing

d) Giving is better than taking 

 

Q13.The fundamental principle of the law on sale of goods is, that

a) The seller is bound to point out defects of his goods

b) The seller is not bound to point out defects of his own goods

c) the buyer must inspect the goods to find out if they will suit his purpose

d) Both options at B and C are correct

 

Q14.Negotiable’ means transferable. In the case of a negotiable instrument Negotiation can take place from one person to another

a) by mere delivery or by endorsement and delivery

b) Only by endorsement and delivery

c) All negotiable instruments cannot be negotiated

d) Negotiation of a negotiable instrument cannot take place by mere delivery

 

Q15.A promissory note, bill of exchange or cheque is payable to bearer which is

a) expressed to be so payable

b) On which the only endorsement is an endorsement in blank

c) On which the last endorsement is an endorsement in blank

d) Expressed to be so payable or on which the only or last endorsement is an endorsement in blank

 

Q16.Money orders; Postal orders; Fixed Deposit receipts; share certificates; Letters of Credit are examples of

a) Negotiable Instruments

b) Non-negotiable instruments

c) Some of these are negotiable instruments while others are not

d) None of given options is correct

 

Q17.bills of lading; dock warrants; railway receipts and wharfinger certificates are examples of

a) Negotiable Instruments

b) Non-negotiable instruments

c) quasi- negotiable instruments

d) None of the options

 

Q18.A Bill of Exchange, not payable on demand, is entitled to get

a) 3 days grace period

b) 7 days of grace period

c) Grace period only if the maturity fals due on a bank holiday

d) None of the options 

 

Q19.An accommodation bill is not supported by consideration or a trading transaction. It is drawn with the object of providing financial help either to drawer or to both drawer and the drawee. Which of the options is true in case of an accommodation bill?

a) An accommodation bill creates no obligation of payment between the parties to the transaction

b) The accommodation party is liable on the bill to any subsequent ‘holder for value

c) both option A and B are correct

d) None of the given options is correct

 

Q20.Section 31 of Reserve Bank of India, Act overrides the Negotiable Instruments Act. Which of the options mentions the provisions of the Section 31 0f RBI Act?

a) No person in India, other than RBI or the Central Government can make or issue a promissory note “payable to bearer”. No person in India other than RBI or the Central Government can draw or accept a bill of exchange ‘payable to bearer on demand’.

b) A cheque ‘payable to bearer on demand’ can be drawn on a person’s account with the banker

c) Both the options A and B are correct

d) None of the given options is correct

 

Part 1: List for questions and answers of Legal Aspects of Business

 

Q1. Answer:c

Q2. Answer:d

Q3. Answer:a

Q4. Answer:b

Q5. Answer:

Q6. Answer:b

Q7. Answer:b

Q8. Answer:c

Q9. Answer:d

Q10. Answer:a

Q11. Answer:a

Q12. Answer:b

Q13. Answer:c

Q14. Answer:a

Q15. Answer:a

Q16. Answer:b

Q17. Answer:c

Q18. Answer:a

Q19. Answer:c

Q20. Answer:a