ARM College of Engineering And Technology, Maraimalai Nagar, Chennai-603209 PG Department of Management Studies

Question Bank
BA7107 ------LEGAL ASPECTS OF BUSINESS

Prepared by

S.Padmanban B.E., M.B.A., M.Phil., Professor- MBA

BA7107 LEGAL ASPECTS OF BUSINESS

LT P C

3003 COURSE OBJECTIVE: To create the knowledge of Legal perspective and its practices to improvise the business. COURSE OUTCOME: Legal insight will be established in the business practices according to the situation of changing environment. UNIT I COMMERCIAL LAW 9 THE INDIAN CONTRACT ACT 1872 Definition of contract, essentials elements and types of a contract, Formation of a contract, performance of contracts, breach of contract and its remedies, Quasi contracts - Contract Of Agency: Nature of agency, Creation and types of agents, Authority and liability of Agent and principal: Rights and duties of principal and agents, termination of agency. THE SALE OF GOODS ACT 1930 Nature of Sales contract, Documents of title, risk of loss, Guarantees and Warranties, performance of sales contracts, conditional sales and rights of an unpaid seller - Negotiable Instruments Act 1881: Nature and requisites of negotiable instruments. Types of negotiable instruments, liability of parties, holder in due course, special rules for Cheque and drafts, discharge of negotiable instruments. UNIT II COMPANY LAW 9 Major principles Nature and types of companies, Formation, Memorandum and Articles of Association, Prospectus, Power, duties and liabilities of Directors, winding up of companies, Corporate Governance. UNIT III INDUSTRIAL LAW 9 An Overview of Factories Act - Payment of Wages Act - Payment of Bonus Act - Industrial Disputes Act. UNIT IV INCOME TAX ACT AND SALES TAX ACT 9 Corporate Tax Planning, Overview of central Sales Tax Act 1956 Definitions, Scope, Incidence of CST, Practical issues of CST, Value Added Tax Concepts, Scope, Methods of VAT Calculation, Practical Implications of VAT. UNIT - V CONSUMER PROTECTION ACT AND INTRODUCTION OF CYBER LAWS 9 Consumer Protection Act Consumer rights, Procedures for Consumer greivances redressal, Types of consumer Redressal Machinaries and Forums- Competition Act 2002 - Cyber cvimes, IT Act 2000 and 2002, Cyber Laws, Introduction of IPR Copy rights, Trade marks, Patent Act. TOTAL: 45 PERIODS TEXTBOOKS 1. N. D. Kapoor, Elements of mercantile Law, Sultan Chand and Company, India, 2006. 2. P. K. Goel, Business Law for Managers, Biztantatara Publishers, India, 2008. 3. Akhileshwar Pathack, Legal Aspects of Business, 4th Edition, Tata McGraw Hill, 2009. REFERENCES 1. P. P. S. Gogna, Mercantile Law, S. Chand & Co. Ltd., India, Fourth Edition, 2008. 2. Dr. Vinod, K. Singhania, Direct Taxes Planning and Management, 2008. 3. Richard Stim, Intellectual Property- Copy Rights, Trade Marks, and Patents, Cengage Learning, 2008. 4. Balachandran V., Legal Aspects of Business, Tata McGraw Hill, 2012 5. Daniel Albuquerque, Legal Aspect of Business, Oxford, 2012 6. Ravinder Kumar Legal Aspect of Business. Cengage Learning, 2nd Edition-2011. *****

UNIT I - COMMERCIAL LAW

Part- A
2 Mark Questions
1) What is Law? 2) Define law and define mercantile law. 3) Mention the types of law. 4) List few commercial/ business / Mercantile - laws or acts. 5) Write short note on business law? 6) What do you understand by mercantile law? 7) Define commercial law? 8) Define Contract; Define Agreement; 9) What are the essential elements of a valid contract? (univ) 10) What is void contract and what is void agreement? 11) What is executory contract and what is executed contract? 12) When the offer and acceptance is complete? (univ) 13) Define consideration. 14) Distinguish between an offer and an invitation to offer. (university) 15) List those who dont have the capacity to contact. 16) What do you mean by tender? 17) What do you mean by cross offer? (Univ) 18) What is meant by valid contract? 19) What are void Agreements? 20) Define contingent contract and quasi contract. (univ) 21) Define Obligation; Define promise; 22) Define jus in personam. 23) Define jus in rem. 24) Define Consensus ad idem. (univ) 25) What is meant by free consent? 26) List the flaws that could happen in consenting a contract. 27) Mention the three bases by which contracts are classified. 28) Mention the types of contracts or classification of contracts. 29) List out the steps in the formation of a contract. 30) State the meaning of performance of contracts? 31) Who must perform a contract?(univ)

32) What do you mean by assignment of a contract?(univ) 33) List the methods of discharging of a contract. 34) What is meant by Novation? 35) What is meant by Rescission? 36) What is meant by Remission? 37) What is meant by Alteration? 38) What do you understand by Breach of contract? 39) What are the remedies for breach of contract?/ List the remedies for breach of contract. 40) What is meant by Quantum Meruit? 41) Define Quasi contracts. (univ) 42) List the kinds of quasi contracts. 43) What is contract of sale? 44) What is meant by sale and what is meant by agreement to sell? 45) List the essential elements of a contract of sale. 46) Define the term transfer of title. 47) List few documents of title. 48) What is meant by Bill of Lading? 49) What is meant by Dock Warrant? 50) What is meant by Warehouse keepers receipt? 51) What is meant by Wharfingers receipt? 52) What is meant by Railway Receipt? 53) What is meant by Delivery Order? 54) What are the condition and warranty in a sales contract? 55) List out the implied conditions in a contract of sale. (univ) 56) List out the implied warranties in a contract of sale.(univ) 57) Distinguish between condition and warranty.(univ) 58) Distinguish between warranty and guarantee.(univ) 59) What is meant by indemnity? 60) What is meant by guarantee? 61) Define performance of sales contracts? 62) What do you mean by CAVEAT EMPTOR? 63) List the situation where caveat emptor do not apply. 64) Who is an unpaid seller? What are his rights? (univ) 65) Define the term Goods. (univ) 66) List the kinds of goods. / Types of goods.

67) What is meant by ascertained goods? 68) What is meant by unascertained goods? 69) Mention the types of delivery of goods. 70) List the rights of a buyer. 71) List the duties of the buyer. 72) What is the right of a finder of lost goods? (univ) 73) What is meant by bailment? 74) Who is a bailor and who is a bailee? 75) What is meant by lien? 76) What is meant by pledge? 77) Define agency?/ Who is called as an agency? (univ) 78) Who is an agent and who is a principal? 79) Who is an agent and who is a servent? 80) Who is an agent and who is an independent contractor? 81) What is the test for determining the existence of agency?(univ) 82) List the methods / ways of agency creation. 83) What is meant by agency by estoppels? 84) What is meant by Agency by holding out? 85) What is meant by agency by ratification? 86) What are the different kinds of agents?/ Classification of / types of 87) What are the characteristics of del credere agent? (univ) 88) State the Agents authority and liability of principal? 89) How will you terminate the Agency? 90) List the ways by which agency is terminated by law. 91) List the ways by which agency is terminated by the parties. 92) When does the agency become irrevocable? 93) What is a Negotiable Instrument? / Define (univ) 94) Define Negotiation? 95) List the characteristics of Negotiable instruments. 96) List the presumptions applicable to all negotiable instruments. 97) List the types of negotiable instruments. 98) Mention the parties to a promissory note. 99) Mention the parties to a bill of exchange. 100) Mention the parties to a cheque. 101) Define Promissory Note. Or What is a promissory note?

102) List the essential elements of a promissory note. 103) What is a bill of exchange? 104) List the essential elements of a bill of exchange. 105) What is a cheque? 106) What is meant by marking of a cheque? 107) What is meant by crossing of a cheque? 108) Mention the types of crossing of cheque. 109) Mention the important difference between a bill of exchange and a cheque. 110) Write any five liabilities of the parties to a Negotiable Instrument? 111) Who is a holder in due course? ** (univ) 112) List the privileges of a holder in due course. 113) What is meant by indorsement? 114) Mention few kinds of indorsement. 115) Mention few differences between negotiation and assignment of an instrument. 116) What are the obligations of a Banker to a customer? 117) How negotiable instruments are classified?/ List the classification of 118) What is meant by Inchoate instrument? 119) What is meant by accommodation bill? 120) What is meant by fictitious bill? 121) What do mean by escrow bill? 122) What do you mean by ambiguous instrument? 123) List the various modes of discharge of an instrument. 124) List the ways to discharge the liability of a party to a negotiable instrument. 125) What is meant by material alteration? 126) List the instances of material alteration. 127) Who is an indorser? And who is an indorsee? 128) Who is a maker and who is a drawee? 129) Who is an acceptor and who is a principal debtor? 130) Who is a drawee usually for a cheque? And who is a payee?

Part- B
8 Mark questions/ 16 mark questions All the questions given below are taken from university question paper. There may be repeated questions in this list.

1. Explain the essential elements of a valid contract. 2. Explain the various types of contracts with your own example. 3. Enumerate and explain various void agreements. 4. What is quasi contract? Explain its types? 5. How is an agency terminated? Explain. 6. Explain breach of contract and its remedies. 7. What are the essential elements of negotiable instruments? How are they transferred? 8. Write briefly on formation of a contract and performance of contracts according to the Indian Contract Act 1872. 9. Explain the rights of an unpaid seller. 10. Briefly explain the types of Negotiable Instruments and specify the essential features to be fulfilled in Negotiable Instruments. 11. Define consideration. Discuss the legal rules as to a valid consideration. What are the exceptions to the rule No consideration No contract? 12. State the rules relating to passing of property in the goods under the sale of goods act 1930. Risk prima facie passes with ownership.- Comment. 13. Write a note on remedies for breach of contract. 14. Explain the duties and rights of bailor and bailee. 15. Briefly explain types of contract. 16. Explain the provisions of sale of goods act. 17. Explain the essential requisite conditions of negotiable instruments. 18. How an agent is liable to principal? 19. What are the essentials of agency? 20. Write notes on The Sale of Goods Act 1930. 21. What are the different kinds of agents? Explain the authority and liability of agents. 22. Describe the essentials of a valid contract. When does an agreement become void? What tests would you apply to ascertain whether an agreement is a contract? Explain.

23. How is price fixed in a contract of sale? If a price is not determined by the parties, what price if any , is the buyer liable to pay? 24. Explain the different types of goods in detail. 25. State and explain the essentials of a valid contract under the Indian contract act 1872. 26. What are the differences between the sale and the hire purchase agreement, under the Sale of Goods Act, 1930. 27. What do you mean by Negotiable Instrument and elaborate the requisites of a Negotiable Instrument. 28. Describe the different modes of discharge of a negotiable instrument and discharge of parties. 29. Define Negotiable Instrument. Explain Promissory Note and Bill of Exchange and bring out their differences. 30. What are the rights and duties of Principal and the Agent? *****

These are the extra questions that could be relevant / may be expected due to new regulation 2013.

1. Explain the nature, purpose and provisions of the Indian Contract Act 1872. 2. Explain the essential elements of a contract. 3. Explain the various types and classification of contracts. 4. Explain the steps involved in the formation of a contract. 5. Write an essay on the various aspects related to the performance of Contract. 6. Explain the situations of breach of contract and the remedies. 7. Explain the remedies available to the parties while a contract is breached. 8. What is meant by quasi contract? Explain the various kinds of quasi contracts. 9. Explain the duties and rights of the agent and the principal. 10. Explain the liabilities of an agent and his principal. 11. Explain how the agency is terminated by various ways. 12. Write an essay on the creation of agency. 13. Explain the various types of agents and their duties/ characteristics. 14. Explain the nature and provisions of the sale of goods act. 15. Explain in detail the various documents of title and their importance. 16. Explain the implied condition and implied warranties in a contract of sale. 17. Explain the ways, methods and rules related to the delivery of goods. 18. Explain the concept of performance of contract of sale. 19. Explain the rights of an unpaid seller. 20. Explain the nature and requisites of negotiable instruments.

21. Explain in detail the various types and classification of negotiable instruments. 22. Explain the privileges of a holder in due course. 23. Explain the essential features of a bill of exchange. 24. Explain the essential features of a promissory note. 25. Explain the rules and issues related to checks and drafts. 26. Explain how the negotiable instruments are discharged. 27. Explain the liabilities of the various parties to negotiable instruments. 28. Explain how contract of sale is formed. 29. Explain how sale and agreement to sell differs. 30. Write a note on various types of damages that can be recovered for breach of contract. *****

UNIT 2- Company Law

Part- A
2 Mark Questions Following are the university questions typed as it is language/ grammar errors are theirs.
1. What is balanced Score card? 2. State any four circumstances in which directors are personally liable. 3. Define Corporate Governance. 4. What are the contents of a prospectus? 5. What are the records to be maintained during directors meeting? 6. What are the reasons considered for a winding up of a company? 7. What are the essential characteristics of a company? 8. What are the contents of MOA? 9. What do you mean by perpetual succession? 10. What do you mean by doctrine of ultra -vires? 11. What are the functions of the promoter of a company? 12. State any four circumstances in which directors are personally liable. 13. What is a prospectus? 14. Define Memorandum of Association. 15. Define corporate governance. 16. State the concept of corporate governance and its importance. 17. What are pre-incorporation contracts? The following are the suggested and expected questions from the view point of regulation 2013.

Part- B
8 Mark questions/ 16 mark questions All the questions given below are taken from university question paper. There may be repeated questions in this list. Typed as it is language/ grammar errors are theirs.
1. Briefly explain the provisions of companies act with regard to winding up subject to the supervision of the court. 2. What are the characteristics of a company?- Explain. 3. Discuss the duties and liabilities of directors of a company. 4. State the method and procedures followed in winding up of a company. 5. Explain the process and procedures involved in formation of company and the role of promoters in promoting the company. 6. Discuss the role of corporate governance in making a company success and the stakeholders responsible for corporate governance. 7. What are the powers, duties and liabilities of Directors? 8. Explain the concept of Corporate Governance. Discuss the role of different authorities involved in corporate governance in India. 9. Discuss the different modes of winding up of companies. 10. What are the contents of Articles of Association? How can they be altered? 11. Briefly explain the powers and duties of a director of a company. 12. Explain the reasons and procedures of winding up of a company. 13. What are the differences between private and public limited company? 14. Explain the procedures involved in formation of a company. 15. Explain the nature and different types of companies in detail. 16. Discuss the powers, duties and liabilities of directors. 17. What are the different kinds of winding up of a company? Explain each in detail. 18. What are the different meetings of a company? These are the extra questions that could be relevant / may be expected due to new regulation 2013. 1.

Unit3 - Industrial Law

Part- A
2 Mark Questions Following are the university questions typed as it is language/ grammar errors are theirs.
1. What is minimum wage? 2. Define living wage and fair wage. 3. State the difference between strike and lockout. 4. How is a minimum wage fixed in India? 5. Describe the powers of inspector of factories. 6. Distinguish Strike and Lockout. 7. Explain minimum wages. 8. Define the term Hazardous process. 9. Mention the objectives of Industrial Disputes Act,1947. 10. Define Manufacturing process under the Factories Act 11. Define Public Utility Service under the ID Act. 12. Define minimum wage. 13. Write a note on living wage. 14. State the difference between wages and salaries. 15. Define Industrial Dispute. 16. State the machineries available to settle the industrial disputes. 17. Who is responsible for the payment of wages under the Payment of Wages Act? 18. Define Factory, Strike and Lockout under the factories act.

Part- B
8 Mark questions/ 16 mark questions All the questions given below are taken from university question paper. There may be repeated questions in this list. Typed as it is language/ grammar errors are theirs.
1. What are the permissible deductions under the payment of wages act? Discuss. 2. Discuss the health welfare measures provided under the Factories Act, 1948. 3. Describe the machineries provided under the Industrial Dispute Act for Investigation and settlement of industrial Disputes. 4. State the safety, welfare and health measures given in factories act. 5. State the salient features of Industrial disputes. 6. Describe the features of Factories Act towards safety, work time and female adult workers. 7. Explain the procedures in calculating the Bonus according to the Bonus Act. 8. Discuss the types of industrial disputes and settlement procedures to maintain the Industrial peace and harmony.

9. What is the time limit within which payment of bonus due to an employee under the Act Be paid? Write briefly on Payment of Annual bonus linked with productivity under payment of Bonus ACT. 10. What are the duties of the employer under the payment of wages Act? What are the permissible deductions that can be made from the wages of an employee under the provisions of Wages Act, 1936? 11. Enumerate the statutory provisions prohibiting strikes in a public utility services. 12. Explain the provisions of Factories Act 1948 in detail. 13. Discuss the provisions of Factories Act for employee welfare, safety and health. 14. Explain the procedure of settling down the disputes in industry. 15. Discuss the main components of wage structure in India. 16. State the provisions of the factories Act 1948 regarding annual leave with wages. 17. State and explain the provisions of the Factories Act, 1948, with regard to health, safety, and welfare of the workers. 18. Discuss the provisions of the payment of wages Act, 1986, with regard to deductions which may and which may not be from wages. 19. State the procedure for fixing and revision of minimum wages under the Minimum Wages Act, 1948. 20. What are the provisions in the Factories Act 1948, for the welfare of workers in a factory and relating to dangerous machines?

Unit 4- Income Tax Act and Sales Tax Act.

Part- A
2 Mark Questions Following are the university questions typed as it is language/ grammar errors are theirs.
1. What are the objectives of VAT? 2. State the advantages of VAT. 3. Why sales tax differs from state to state? 4. When is inter state tax charged according to the CST? 5. What are the difficulties faced in adopting VAT? 6. Explain deduction of tax at source. 7. Explain VAT 8. Mention the uses of VAT. 9. What is taxable income? 10. Define corporate tax. 11. What are the disadvantages of VAT? 12. What is additional excise duty? 13. What is the meaning of CENVAT? 14. Define Sales Tax. 15. Define VAT. 16. Explain the importance of corporate Tax Planning and its uses.

Part- B
8 Mark questions/ 16 mark questions All the questions given below are taken from university question paper. There may be repeated questions in this list. Typed as it is language/ grammar errors are theirs.
1. 2. 3. 4. 5. What are the areas of tax planning in Central Sales Tax Act? Discuss corporate tax planning system in India. Explain the salient features of CST Act. Describe the overall features and functions of Central Sales Tax. Briefly explain how the provisions of Corporate Taxes planning system influences and effects corporate functions. 6. Explain the role of Assessment Year and Previous Year in determining the Tax liability of an assesse. 7. Explain the provisions of corporate tax planning system. 8. Describe the overall features and functions of Central Sales Tax. 9. Evaluate the Corporate Tax practices in India. 10. Describe the procedure for computing VALUE ADDED Tax. 11. Discuss the powers of the authorities in appropriate states in relation to CST. 12. Explain the different types of customs import duties. 13. Explain the steps and process which are followed in the calculation of Sales Tax with an example. 14. How the VAT being computed? Explain the strategies and steps followed in the computation. 15. Explain the importance of corporate Tax Planning and its uses. 16. Sate and elaborate the salient features of the Sales Tax Act, including the Value Added Tax.

Unit 5 CONSUMER PROTECTION ACT AND INTRODUCTION OF CYBER LAWS

Part- A
2 Mark Questions Following are the university questions typed as it is language/ grammar errors are theirs.
1. 2. 3. 4. What is digital Signature? Define Consumerism. Name any four cyber crimes. What are the essential roles expected from the weights and measures department in Consumer Protection Act? 5. What is the function of encryption and decryption in cyber crimes? 6. Define consumer according to Consumer Protection Act,1986 7. Explain digital signature. 8. What do you mean by consumer dispute? 9. What are unfair trade practices? 10. What is a complaint under Consumer Protection Act? 11. What is Hacking? 12. What are the needs for consumer protection? 13. What is meant by consumer protection? 14. Define Cyber Laws. 15. Who is a consumer under the Consumer Protection Act?

Part- B

8 Mark questions/ 16 mark questions All the questions given below are taken from university question paper. There may be repeated questions in this list. Typed as it is language/ grammar errors are theirs.
1. Briefly explain the following terms as used in the consumer protection act: i) Complainant ii) Consumer iii) Unfair Trade Practice iv) Restrictive Trade Practice 2. 3. 4. 5. Discuss the consumerisms and consumer movement in India. Trace out the cyber crimes, How does I-T Act 2000 control these cyber crimes? Explain the role and functions of Consumer Protection Act in maintaining the consumerism. Trace out the cyber crimes in the current scenario of business application and critically evaluate the relevance of cyber laws in India. 6. What are the salient features of Consumer Protection Act, 1986? Explain the three tiers Redressal Machinery under the act. 7. Discuss the powers of the district consumer form. ( error- it is forum) 8. Who are the persons competent to file the complaint in the consumer court? What are their rights and duties? 9. Discuss the important provisions of Consumer Protection Act. 10. Highlight the scope, merit and demerits of Cyber Acts in India. 11. Discuss the functions of consumer guidance society in India. 12. Discuss the causes for growing consumerism in India. 13. Explain the provisions of Consumer Protection Act. 14. Bring down and explain the scope, merits and demerits of cyber acts in India. 15. How the Indian consumers are protected under the Consumer Protection Act in India? 16. What are the suggestion and recommendations to reduce the cyber crimes? *****