Business Law

Multiple & Single Choice Question and Answer
Question: In the Bill of Exchange, the person to whom the bill is made payable is called as
Correct Answer: payee

Question: Ratification can be valid, only
Correct Answer: if the act to be ratified is legal , if done for the whole transaction , if communicated to the concerned party

Question: To be deemed as an unpaid seller the seller must
Correct Answer: have sold the goods against cash and the price must be due

Question: Following persons can not be called partners
Correct Answer: minors , insolvents , co-owners without the agreement to carry on the business

Question: "Every agreement and promise enforceable at law is a contract", This statement was made by -
Correct Answer: Sir Fredrick Pollock

Question: Partnership at will can be dissolved by any partner by
Correct Answer: Giving due notice to that effect to all other partners

Question: Following are the essentials of Coercion
Correct Answer: intention to induce someone to enter into an agreement , threatening to detain property, unlawfully

Question: According to the Consumer Protection Act, 1986, a person includes
Correct Answer: Hindu undivided family , Co-operative society , Individual as well as juristic person

Question: In the absence of usage or custom of trade to the contrary, the implied authority of a partner does not empower him to
Correct Answer: Acquire movable property on behalf of the firm , transfer movable property belonging to the firm

Question: Following are the persons who cannot enter into partnership firm
Correct Answer: A Burmese Buddhist husband and wife carrying on business , the members of Hindu Undivided Family carrying on Family business

Question: Coercion means and includes
Correct Answer: any act forbidden by the Indian Penal Code , any threatening to commit illegal act

Question: The exceptions to the Wagering Agreement are
Correct Answer: Cross-word competitions , Horse-race

Question: The particular partnership automatically comes to an end
Correct Answer: on the completion of the venture , at the expiry of the fixed term

Question: When an agent is appointed to perform a particular work or transaction only, he is known as
Correct Answer: special agent

Question A person is deemed to be in a position to dominate the will of another if the person whose mental capacity is affected by
Correct Answer: temporary effect of age , permanent effect of age , bodily distress

Question: In case of private limited company, minimum number of members is two while the maximum is
Correct Answer: 50

Question: The person to whom, Negotiable Instrument is transferred is entitled to
Correct Answer: amount

Question: The memorandum of Association is the most important document, it acts out
Correct Answer: The constitution , The formation , The objectives

Question: Partners by Estoppel or holding out are also called as
Correct Answer: quasi-partner , nominal partner

Question: The memorandum of a company shall be
Correct Answer: Printed , Divided into paragraphs numbered consecutively , Signed by each subscriber

Question: The memorandum of every company shall state
Correct Answer: The name of the company , The registered office , The main objects

Question: Which of the following is the essential element of the contract ?
Correct Answer: free consent

Question: Partnership is nothing but
Correct Answer: a legal relationship between the partners

Question: Following are the elements which constitute a partnership
Correct Answer: there must be a contract regarding a partnership , there must be an association of two or more persons

Question: The relationship of principal and agent is established amongst partners which is governed by
Correct Answer: law of agency

Question: According to Rule 3 of the Consumer protection rules the Central Council consists of the following members
Correct Answer: Minister in-charge of the dept. of home , Minister in-charge of dept. of Commerce and Industry , Minister in-charge consumer affairs in states

Question: Actual delivery of goods is also known as
Correct Answer: physical delivery of goods

Question: A certificate of incorporation is issued by
Correct Answer: A Registrar

Question: An Association of many persons who contribute money or money's worth to a common stock and employ it for a common purpose. It is known as a
Correct Answer: Company

Question: Every Prospectus shall state the matters specified in part I of schedule II of the Companies Act issued by
Correct Answer: Or on behalf of a company , Or on behalf of any person engaged in formation of company , Or on behalf of any person interested in formation of company

Question: Public notice of a dissolution of firm is required to be given by
Correct Answer: publishing the same in the official gazette , publishing the same in the local news paper

Question: Following are the characteristics of the partnership at will
Correct Answer: Partners are always free to break their relationship at their whim , It is for indefinite period

Question: Limited companies can be formed for promoting
Correct Answer: Commerce , Art , Religion

Question: The following types of companies are required to have their own articles
Correct Answer: Unlimited companies , Companies limited by guarantee , Private companies limited by shares

Question: The partner who is illegally expelled
Correct Answer: can claim re-instatement , can sue the firm for the refund of his share in the profits as well as profits

Question: Goods means
Correct Answer: growing crops , stocks & shares

Question: Public notice is required to be given
Correct Answer: on the dissolution of a firm which is registered , on the retirement of any of the partner of a registered firm

Question: The very important stages in the connection of formation of a company are
Correct Answer: Promotion , Registration , Floatation

Question: Negotiable Instruments recognised by usage or custom of trade
Correct Answer: Bank notes , share warrants , share certificates

Question: When the time is not specified for the delivery of goods, the goods must be delivered.
Correct Answer: Reasonable time

True/False Questions
Question: A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price
Correct Answer: True

Question: Alteration of memorandum or articles etc. to be noted in every copy.
Correct Answer: True

Question: The company cannot exceed the powers conferred on it by its memorandum
Correct Answer: True

Question: A company is created by law and not by natural birth.
Correct Answer: True

Question: The provisions of sale of goods were previously included in the Indian Contract Act, 1872.
Correct Answer: True

Question: Registration is compulsory for all the companies.
Correct Answer: True

Question: "Law" means a set of rules and regulations in the nature of dictatorship.
Correct Answer: False

Question: Legal controls, restrictions on public companies are more and strict.
Correct Answer: True

Question: An intention to create legal relations is one of the most important criterions to establish a contract.
Correct Answer: True

Question: An agency can be terminated after lapse of time or completion of the work.
Correct Answer: True

Question: A Bill of Exchange can be crossed.
Correct Answer: False

Question: All contracts are agreements and all agreements are contracts.
Correct Answer: False

Question: Memorandum of a company is a primary and supreme document of the company.
Correct Answer: True

Fill in The Blanks
Question: The person acting as an agent on behalf of the principal should act ________.
Correct Answer: honestly

Question: Under ________ influence the dominant party may hold a real authority over the other party.
Correct Answer: undue

Question: A person under any legal or natural ________ can not appoint an agent.
Correct Answer: disability

Question: When the notice of stoppage in transit is given by the seller to the ________in possession of goods, the latter must re-deliver the goods to the seller.
Correct Answer: Carrier

Question: Unpaid seller's right to stop the goods in transit arises only when the buyer is ______
Correct Answer: Bankrupt

Question: An offer, to be treated as a valid offer, should be ________.
Correct Answer: communicated

Question: The confirmation of change of registered office of company within a state shall be communicated to the company within ________ from the date of receipt of such application.
Correct Answer: Four weeks

Question: The directors of a company have to file their consent with the ________ to act as director.
Correct Answer: registrar

Question: Agents are ________ to act within the scope of the authority given.
Correct Answer: authorised

Question: A ________ is an artificial person and has a legal entity.
Correct Answer: Company

Question: An agent is simply blank a ________ between his principal and the third party.
Correct Answer: connecting link

Question: A company is a ________ company if the holding company controls the majority composition of its board of directors.
Correct Answer: subsidiary

Question: The object of the Consumer Protection Act of 1986 is to educate the people so that they can find out ________ for their grievances
Correct Answer: legal remedies

Question: Holding out means ________ leading another person to believe in something.
Correct Answer: falsely

Question: A club or a society is an ________ of persons
Correct Answer: association

Question: Special resolution and confirmation by ___is required for alteration of Memorandum.
Correct Answer: Company Law Board