UNIT I

Business Law Course code: U13MSY55

1. A contract based on the equitable principle that a person shall not be allowed to enrich himself at the
expense of another.
A. Both movable& Immovable Goods B. Movable goods only
C. Immovable goods only D. All goods except ornaments.

2. The term goods for the purpose of sale of goods Act does not include
a.Money B. Actionable claims
C. Immovable property d. All of these

3.A contract for the sale of future goods is

a.Sale B. Agreement to sell
C. Void D. Voidable

4.In a hire purchase agreement, the hirer

a.Has an option to buy the goods B. Must buy the goods
C. Must return the goods D. Is not given the possession of the goods

5.A Stipulation which is collateral to the main purpose of the contarct, and if proved false, give
the buyer only a right to claim damages is known as
A. Condition B. Guarantee C. Warranty D. None of these.
6. Which of the following is not an implied condition in a contract of sale
A. Condition as to title B. Condition as to description C. Condition as to freedom from encumbrance
D. Condition as to sample
7. The term goods exclude A. Stock & Share B. Growing crops C. Actionable claims D. None
8.A contract of sale may be A. Absolute only B. Condition only C. Absolute & Conditional D. None
9. The sale of goods act, 1930 does not cover A. Existing goods B. Immovable goods C. Future goods D.
None
10.A contract which cannot be enforceable in a court of law A. Voidable contract B. Void contract C.
Valid contract D. None
11.Who is competent to enter into a contract A.Minor B. Person of sound mind C. A Lunatic D. A
Purdanasheen women
12. When one person signifies to another his willingness to do or to abstain from doing anything, it is
known as A. Proposal B. Offer C. Agreement D. Contract
13.In commercial & business agreements, the presumption is that the parties intended to create A. Legal
relations B. Performance C. Agreement D. Both A & C.
14.A contract is based on A. Executed B. Implied C. Agreement D. All the above
15.All _______ are agreements, but all agreements are necessarily contracts A. Legal relations B.
Consents C. Unconditional D. Contract
16.An ______ contract is a contract in which both the parties have performed their respective
obligations A. Executed B. Implied C. Agreement D. None
17. ______ depends on an agreement but not necessarily on contract A. Agency B. Agent C. Quasi
contract D. None
18. No valid ratification can be made by a person whose knowledge of facts of the case is materially A.
Clear B. Defective C. Confusing D. None
19._______ does his work under the contract of the agent A. Principal B. Partners C. Promisor D. Sub
Agent
20._______ agent is a person who has authority to do all acts connected with a particular trade or
business A. Special agent B. General agent C. Sub agent D. Both A&B.
21.________ agent occupies the position of both a guarantor & an agent. A. Delcredere B. General C.
Special D. Sub agent
22.________ authority is the authority of an agent as it appears to others. A .Principal B. General
C. Apparent D. None
23. No consideration is necessary to create ______ A. Agreement . B. agency Contract C. An agency D.
None
24. Agency by operation of law is said to arise when the law treats one person as an agent of ________
A. Another B. The principal C. Both A&B D. None
25.________ are essential for partnership. A. Association of 20 more persons B. Aggreement C. Business
D. All the above.
26.The object of partnership must be to make _______. A. Profit B. Agreement C. Uncondition D. All the
above.
27.Partner is _______ . A. An agent B. Promisor C. Promisee D. None.
28. A partnership is based on _______ A. Desire B. Willing C. Relationship D. Agreement
29. Minor may be admitted to the benefits of partnership with the _______ of all the other parties. A.
Adjustment B. Willing C. Consent D. None
30. Partnership is merely _______ Between the partners. A. An abstract legal relation B. An agent C.
Ownership D. All the above.
31. __________ Person cannot enter into a contract of partnership. A. Unsound mind B. Alien enemy C.
Minor without the consent of all the other partners D. All the above.
32. Every partner has a right to prevent the introduction of a _______. A. New partner B. Minor C. Both
A & B D.None
33. In which year IRDA was constituted?
A. 19 April, 2000 B. 19 April, 2001 C. 19 April, 2002 D.19 April, 2003
34. Headquarter of General Insurance’s Public Sector Association of India is situated?
A. Delhi B. Mumbai C. Kolkata E. None Of These
35. IRDA is associated with?
A. Railways B. Insurance Sector C. Banking D. Tele Communication
36. Which of the following term is not used in insurance sector?
A. Indemnity B. Coverage C. Misuse Alert D. Casualty
37. Which of the following Public Sector companies provides insurance cover to exporters?
A. ECGC B.NABARD C. SIDBI D. IRDA
38. The main feature of the National Agricultural Insurance Scheme is to insure which of the
following?
A. Life of the farmer B. Crop of the farmer C. Animals who are used in agricultural activities
D. Land of the farmer
39. IFRS Stands for?
A. Indian Financial Reporting Standards
B. Indian Financial Reporting System
C. International Financial Reporting Standards
D. International Financial Reporting System
40. Expand the term FSDC which is used in financial sectors?
A. Financial Security and Development Council
B. Financial Stability and Development Council
C. Fiscal Security and Development Council
D. Fiscal Stability and Development Council

41) The Indian Contract Act, 1872 is based mainly on ____________

a) Law of agency b) Indian Partnership Act
c) English Common Law d) Sale of Goods Act

42) When an agreement fulfils the conditions of __________ of the Indian Contract Act, it becomes the
contract?
a) Sec 10 b) Sec 20
c) Sec 25 d) Sec 15

43) Offer + Acceptance = ___________

a) Contract b) Agreement
c) Promise d) Proposal

44) Contract which is forbidden by Law __________.

a) Void Contract b) Valid Contract
b) Quasi Contract d) Illegal Contract

45) R tells S; “ I’m willing to sell my machines for Rs. 90000; are you ready to buy?”. This is a ______
from R to S?
a) Contract b) Acceptance
c) Offer d) Proposal

46) A wrong representation is made willfully with the intention to deceive the other party.
a) Mistake b) Misrepresentation
c) Coercion d) Fraud

47) The aggrieved party cannot claim damages in _________

a) Mistake b) Misrepresentation
c) Coercion d) Fraud

48) Who may perform a contract?

a) Agent b) Promisor
c) 3rd Person d) All the above

49) Termination of the contractual relationship between the parties is ___________

a) Performance b) Discharge
c) Breach d) Novation

50) Modes of discharge of contract includes _______________

a) By Performance b) By Lapse of time
c) By Agreement d) All the above
ANSWER

1.c 11.b 21.a 31.d 41.c

2.b 12.a 22.c 32.c 42.a
3.b 13.a 23.c 33.a 43.b
4.a 14.c 24.c 34.a 44.d
5.c 15.d 25.d 35.b 45.c
6.c 16.a 26.a 36.c 46.d
7.c 17.a 27.a 37.a 47.b
8.c 18.b 28.a 38.b 48.d
9.b 19.d 29.c 39.c 49.b
10.b 20.b 30.a 40.b 50.d
 UNIT II
Business Law Course code: U13MSY55

1._______ is an agreement between two or more parties enforceable in a court of law. A. Partnership B.
Contract C. Agent D. None.
2. _________ is a contract which is entered into, between parties via internet. A. Modern contract B.
Technical contract C. Advance contract D. E-Commerce.
3. An offer may be communicated by A. Orally B. By conduct only C. By a written mode D. By all the
above modes
4. Acceptance may be communicated by A. Any person B. A person who has the authority to accept C.
His agent D. all the above
5.An offer is said to be general when it is made A. To a definite person B. To the public at large C. To a
group of persons D. None of the above.
6.An offer can be communicated A. At any time B. Before it can be accepted C. After acceptance D. None
of the above
7. Newspaper advertisements are not ______. A. Offer B. Proposal C. Contract D. None
8. An offer may come to an end by ______ A. Lapse B. revocation C. Both A&B D. None
9. Ratification is tantamount to prior ______ A. Authority B. Agreement C. Contract D. None
10. An agency coupled with interest is _________ A. Irrevocable B. Revocable C. Acceptable D. None
11. A minor can be an agent but cannot be ______ A. A partner B. An agent C. Promisee D. A principal
12. ________ is the agent of the original agent. A. General agent B. Universal agent C. Special agent D.
Sub agent.
13. _______ is an agent appointed by a seller to sell his goods by public auction for a commission. A.
auctioneer B. Subagent C. Special agent D. General agent
14. Non mercantile agents include ______ A. Solicitors agents B. Special agents C. Sub agent D. General
agent.
15. When the agent or principal dies, the agency ________ A. Is terminated B. Appoint another C.
Continuing D. None
16. An agency may be terminated by ________ A. Act of the parties B. Operation of law C. By mutual
agreement D. All the above.
17. Partner must act with utmost good faith as the very basis of partnership is _______ A. Mutual trust
B. Confidence c. Both A&B D. None
18. A partner is not entitled to receive any _______ A. Remuneration B. Profit C. Goodwill D. None
19. It is the duty of every partner to contribute to the _____ of the firm. A. Business B. Losses C. Credit
D. None
20. A partner cannot assign his rights & interest in the firm to _______ A. An outsider B. Partner C. Third
parties D. None
21. The authority of a partner may be _______ A. Express B. Implied C. Both A&B D. Legal authority
22. Partners may be _________ A. Actual partner B. Nominal partner C. Partner by estoppel or hilding
out D. All the above
23. Reconstitution of a firm may be of _______ A. Introduction of a new partner B. Retirement of a
partner C. death of a partner D. All of these
24. A retired partner ____ give a public notice of his retirement to persons who are ignorant of his being
a partner in the firm. A. Need not B. Need to C. Optional D. None
25. The sale of goods act, 1930 does not cover A. Existing goods B. Immovable goods C. Future goods D.
None
26. An agreement to sell is an ____ A. Executory contract B. Executed contract C. Contingent contract D.
None
27. Which of the following is not regarding as goods under the sale of goods Act, A. Copyright B.
Trademark C. Money
28. In the case of hire-purchase agreement, the positioning of the hire-purchaser is that of the ___ A.
Agent B. Principal C. Bailee D. Promisor
29. An _______ means a claim to any debt or any beneficial interest in a movable property not in
possession. A. Acutionable claim B. Agreement claim C. Stipulation & Warranty D. None
30. The sale of goods Act applies to a contract of sale, and not to a contract for ______ and ________.
A. Work & Material B. Executed & Executory C. Implied & Express D. None
31. Document of titled goods include _______ . A. Bill of lading B. Railway Receipt C. Both A&B D.
Balance of payment.
32. A ________ is a stipulation which is essential to the main purpose of the contract. A. Agreement B.
Claim C. Condition D. All
33. The insurance companies collect a fixed amount from its customers at a fixed interval of
time. What it is called?
A. Installment B. Contribution C. Premium D. EMI
34. Anmol Jeevan is a …..of the LIC. A. Basic Life Insurance Plan B. Term Insurance Plan C.
Children’s Plan D. Pension Plan
35.In case of fire & accident insurance, Insurable interest must exist.
A. At the time of loss only B. At inception of insurance only C. Both at inception of insurance &
at the time of loss D. No insurable interest is required.
36. Floater policy can be given under which situations. i. Where sum insured exceeds 2 crores.
ii.Where goods are placed at different godowns at different locations. iii. Where goods are
placed at different godowns at different locations in the same compound. iv. Sum insured
cannot be ascertained at all locations.
A. A&B are correct B. A,B&C are correct C. A,B,C,D are correct D. None is correct
37. Which of the following perils can be add-on cover under the fire policy at extra premium. A.
Spontaneous combustion B. Flood C. Impact damage D. Explosion
38. Insurable interest must be present at the time of insurance proposal and payment of claims
in
A. Fire Insurance B. Marine Insurance C. Life Insurance D. Motor Insurance
39. When was the Insurance Regulatory and Development Authority constituted?
a) 1938 b) 1971 c) 1993 d) 1999
40. Which one of the following does not belong to the main products of life insurance?
a) Endowment b) Personal accident insurance c) Term d) Whole life

41) ________ is the basic principle underlying all forms of business organization.
a) Agency b) Contract
c) Tender d) Proposal
42) ________ can bind principle to the third party.
a) Employer b) Agent
c) Offeror d) None

43) In contract of agency _________ is not necessary.

a) agreement b) proposal
c) offer d) consideration

44) Agents who act without receiving any consideration are _________ agents.
a) Gratuitous b) general
c) special d) factor

45) An agent usually gets _____________.

a) wages b) salary
c) commission d) none

46) The person for whom an act is done by the agent is known as __________.
a) Agency b) Third party
c) agent d) Principal

47) Who cannot employ agent?

a) Age of Majority b) Sound mind
c) Both d) None

48) An agent appointed to do a particular act ___________.

a) Mercantile agent b) Universal agent
c) Special agent d) General agent

49) An agent employed for the purpose of sales and to buy goods is known as _________.
a) Mercantile agent b) Universal agent
c) Special agent d) General agent

50) ________ is who brings two persons together and arranges for an agreement between them.
a) Special agent b) Auctioneer
c) Factor d) Broker

ANSWER

1.b 11.d 21.c 31.a 41.a

2.d 12.d 22.d 32.c 42.b
3.d 13.a 23.d 33.a 43.d
4.b 14.a 24.a 34.b 44.a
5.b 15.a 25.b 35.c 45.c
6.b 16.d 26.a 36.d 46.d
7.a 17.c 27.c 37.a 47.b
8.c 18.a 28.c 38.c 48.c
9.a 19.b 29.a 39.d 49.a
10.a 20.a 30.a 40.b 50.d
 UNIT III
Business Law Course code: U13MSY55

1. When two parties make identical offers to each other in ignorance of each other’s offer the
offers are known as _____ A. Cross offers B. Consent C. Mistake D. None
2. Once an offer is accepted, there can be no revocation of _______ A. Acceptance B. Contract C.
Agreement D. None
3. A standing offer is in the nature of a _______ A. Tender B. Offer C. Executory D. None
4. Insanity/death of the proposer automatically _____ the proposal A. Continue B. Revokes C.
Appoint a person D. None
5. Minors agreements are ____ A. Valid B. Void Abinito C. Voidable D. Both A&C
6. A Minor is a person who has not completed A. 16 yrs B. 18 yrs C. 21 yrs D. Both B&C
7. Persons disqualified by law do not include A. Convicts B. Insolvents C. Agents D. None
8. A minor can be a _______ A. Promisee B. Beneficiary C. Both A&B D. None
9. Sub Agent is responsible for his acts to the _____ A. Agent B. Principal C. Both A&B D. None
10. The agent is responsible to the ___ for the acts of _______. A. Sub agent : Principal B. Principal :
sub agent C. Third party : Sub agent D. None
11. Sub agent can demand his remuneration from ____ A. Principal B. Original Agent C. Third party
D. None.
12. An agent acts on behalf of the principal, the third parties can proceed only against _______. A.
The principal B. Agent C. Sub Agent D. None
13. Partner agrees to share his profit with Third parties that 3rd person is known as a _______ A. Sub
partner B. Partner C. Third parties D. None
14. The act done by the partner must relate to the ____ Business of the firm. A. Normal B. Usual C.
Both A&B D. None
15. A partner shall not carry on any _____. A. Business B. Authority C. Profit D. None
16. Every partner is bound to ______ the firm for any loss. A. Protect B. Indemnify C. Secure D. All of
these.
17. A warranty is a stipulation which is ______ to the main purpose of the contract. A . An
agreement B. Relevant C. Collateral D. None
18. An implied condition as to quality or fitness for a particular purpose may be annexed by the
_______ A. Usage of trade B. Quasi contract C. Contractual relationship D. None.
19. In the case of _______ and ________, there is an implied condition that the goods shall be
wholesome and fit for human consumption. A. Eatable, Provisions B. movable, Immovable C.
Executed, Executory D. None
20. _______ is the process by which the goods answering the description are identified and set
apart. A. Ascertainment B. Trademark C. Copyright D. None
21. The contract of fire & marine insurance is a contract of _______ . A. Agreement B. Indemnity C.
Certainty D. None
22. The assured must have insurable interest in ______ . A. Life insurance B. Marine Insurance C.
Fire Insurance D. None
23. A contract of _______ is a contarct from year to year. A. Life Insurance B. General Insurance C.
ELSS D. Both A&B
24. The surrender value of the policy goes on increasing as more & more ______ are paid. A.
Volumes B. Premiums C. Coverage D. None
 25. The subject matter of fire insurance A. Property B. Goods C. Life D. Both A&B
26. A warranty in a contract of marine insurance is substantially the same as a condition in a
contract of ________ . A. Agency B. Partnership C. Quasi D. sale of goods
27. In marine policies, Mixed policy is a combination of ________ . A. Voyage & Value policy B.
Voyage & Floating policy C. Unvalued & Wagering policy D. Voyage & Time policies.
28. In Life Insurance, A nomination may be _____ before the policy matures for payment. A.
Changed B. Cancelled C. Both A&B D. None
29. In Life Insurance, the Annity policy is useful to those who desire to provide a ________. A. High
returns B. Safe returns C. Regular Income D. None
30. Types of Life Insurance policies comprises __________ A. Endowment policy B. Whole Life policy
C. Anticipated policy D. All of these.
31. Future goods means goods to be manufactured/ produced or acquired by the seller. A. In future
prescribed time B. After making of contract C. Before making of contract D. None
32. The sale of goods act, 1930 contains A. 66 Sections B. 68 Section C. 70 Section D. None
33. The term “Goods” in the sale of goods means A. Specific goods B. Ascertained goods C.
Ownership D. Subject Matter
34. A Bill of landing is _____ A. A negotiable instrument like Bill of Exchange B. A negotiable
instrument like promissory note C. Either A or B D. Neither A nor B
35. The sale of goods act 1930, applies to the whole of India except ____ A. Jammu & Kashmir B.
Jharkhand C. Orissa D. Goa Daman & Diu.
36. When the consent of a person is obtained by fraud, the contract is _______. A. Valid B. Illegal C.
Void D. None
37. A false statement of facts made without any intention to deceive the other party falls under the
category of ________ A. Fraud B. Coercion C. Misrepresentation D. Undue Influence
38. A minor is not personally _________ A. Liable B. Capable C. Competent D. None
39. Capacity to contract means _______ A. Competency of parties to enter into a contract B.
Performance C. Minor D. None
40.A minor can be ______ A. Promise B. Beneficiary C. Both A&B D. None

41) Indian partnership enacted in ___________________.

a) 1940 b) 1942
c) 1947 d) 1932

42) The law of partnership came into force on

a)1st october1932 b)1st september1932
c)1st june 1932 d) 1st july 1932

43) _______________is formed to combine the maximum of resources of skill, labour and capital of
different persons.
a) Partnership b) Association
c) Parliament d) None of these

44) According to _____________ partnership is often called is, then a group of men who have joined
capital or services for the prosecuting of some interprise.
a) Stephen b) Kimball
c) Hanoy d) Johnson
45) The person who enter into partnership are individually called _____________.
a) buyer b) seller
c) partners d) none of these

46) The term ______________is used in its widest sense and includes every trade, occupation or
profession.
a) agreement b) business
c) association d) culture

47) Partnership is the result of an_______________.

a) profit b) loss
c) mutual agency d) agreement

48) ___________ essential element of partnership is that the parties must have agreed to carry-on-a
business.
a) Fifth b) Fourth
c) Third d) Second

49) Which is the fifth element in essential elements of partnership?

a) Revolution b) Mutual Agency
c) Evolution d) All the above

50) Agreement between two or more person based on___________.

a) mutual trust b) confidence
c) both a and b d) none of these

ANSWER :

1.a 11.b 21.b 31.b 41.d

2.a 12.a 22.a 32.a 42.a
3.a 13.a 23.b 33.d 43.a
4.b 14.c 24.b 34.d 44.b
5.b 15.a 25.d 35.a 45.c
6.b 16.d 26.a 36.c 46.b
7.c 17.c 27.d 37.c 47.d
8.c 18.a 28.c 38.a 48.c
9.a 19.a 29.c 39.a 49.b
10.b 20.a 30.d 40.c 50.c
 UNIT IV
Business Law Course code: U13MSY55

1) What are the types of breach of contract?

a) Anticipatory breach b) Actual breach
c) Both a & b d) None of the above

2) The phrase ‘quantum meruit’ literally means _________

a) as much as is earned b) as much as in agreement
c) as more as the remedy d) as more as breach

3) The Indian Contract act was enacted in _____________

a) 1876 b) 1874
c) 1872 d) 1870

4) _______ arises when one party to the contract denies to perform the acts or to fulfill the obligations.
a) Breach of Contract b) Remedy
c) Injunction d) Discharge

5) Performance of contract is encaved in the Indian Contract Act 1872 at, _________.
a) Sec 37 b) Sec 142
c) Sec 91 d) Sec 11

6) A proposal when accepted becomes a _________.

a) Contract b) Agreement
c) Promise d) Offer

7) _______ is the principle in all contracts of sale of goods.

a) Buyer beware b) Consumer beware
c) Customer beware d) None of the above

8) ‘Caveat Emptor’ the phrase refers __________.

a) Buyer beware b) Consumer beware
c) Customer beware d) None of the above

9) Two or more persons said to have consented when they agree upon the same thing in the same sense
is __________.
a) Consent b) Offer
c) Breach d) Proposal

10) _________ is the value given in return for a promise.

a) Contract b) Offer
c) Consideration d) Proposal

11) _________ may be lawful or unlawful.

a) Contract b) Offer
c) Agreement d) Promise
12) Agreement + Enforceability by law = _______________.
a) Contract b) Offer
c) Proposal d) Promise

13) The Indian Contract Act 1872 was extended to whole of India except the state of __________.
a) Goa b) Jammu & Kashmir
c) Bihar d) Uttar Pradesh

14) The finder of lost goods and its true owner is the prominent example for __________.
a) Implied contract b) Executed contract
c) Express Contract d) Quasi Contract

15) Promise in a contract is outstanding on the part of both the parties, it is known as _____
a) Unilateral contract b) Bilateral contract
c) Executed contract d) None of these

16) Which is not a form of offer?

a) Conditional offer b) Cross offer
b) General offer d) Counter offer

17) ‘M’ says ‘N’ that he is willing to sell his motorcycle to him for Rs. 20000. This is an/a _____ offer.
a) General b) Cross
c) Counter d) Expressed

18) A ______ agreement has no legal consequences.

a) Formal b) Simple
c) Void d) Valid

19) _______ are very complex contracts.

a) Unilateral b) Bilateral
c) Multilateral d) All of these

20) Simple Contract is otherwise known as ______________.

a) Parole Contracts b) Formal Contracts
c) Both (a) & (b) d) None of these

21) ________ defines contracts as “an agreement enforceable by law”.

a) Sec 2 (b) b) Sec 2 (e)
c) Sec 2 (g) d) Sec 2 (f)

22) Minor’s agreements are _____________.

a) Valid b) Void
c) Voidable d) None of these

23) A contract is based on __________.

a) executed b) Implied
c) agreement d) All the above
24) __________ is an erroneous belief concerning something.
a) Fraud b) Mistake
c) Breach d) Misrepresentation

25) __________ is said to be free when it is not caused by fraud, mistake & misrepresentation.
a) Agreement b) Consent
c) void d) Valid

26) _________ means the carrying out of obligation under it.

a) Performance b) Remedy
c) Breach d) Discharge

27) Discharge by operation of law includes _______.

a) By death b) By insolvency
c) By unauthorized material alteration d) All the above

28) Newspaper ads are not ___________.

a) Proposal b) Contract
c) Promise d) Offer

29) Remedies available to an aggrieved party are __________.

a) Suit for Damage b) Suit upon Quantum Meruit
c) Suit for Injunction d) All the above

30) Who are competent to contract?

a) A Minor b) Person of sound mind
c) Age of Majority d) Both (b) & (c)

31) ___________is based on the principle laid –down in the case of cox versus Hickman.
a) Sec 2 b) Sec 22
c) Sec 6 d) Sec 66

32) In _____________contract the real relation is ascertained from the terms of partnership contract.
a) express b) evolution
c) real d) none of these

33) Advantages of partnership includes_________________.

a) easy to form b) better decisions
c) sharing risks d) all the above

34) Disadvantages of partnership includes______________.

a) unlimited liability b) uncertain life
c) limited capital d) all the above

35) When a partnership is formed for a specific venture or for a particular period , the partnership is
called ______________.
a) legal partnership b) cultural partnership
c) particular partnership d) all the above
36) Duties of partners include_____________.
a) to share losses b) not to start a competing business
c) general duties d) all the above

37) ______________provides that subject to contract between the partners.

a) Sec 12 (c) b) Sec 12 (b)
c) Sec 12 (a) d) None of these

38) Sale of Goods Act was enacted in ______________.

a) 1910 b) 1920
c) 1930 d) 1940

39) ________________ are also sold and purchased.

a) Goods b) Services
c) Debt d) Loans

40) _______________does not fall in the sale of Goods Act.

a) Goods b) Services
c) both d) None

41) Sales of Goods Act was based on ______________.

a) Partnership Act b) Contract Act
c) Contract of Agency d) English sale of Goods Act

42) English sale of Goods Act was enacted in ___________.

a) 1893 b) 1894
c) 1890 d) 1891

43) Sales of Goods Act does not deals with____________.

a) sale b) mortgage
c) pledge d) none

44) Sales of Goods Act was extended except____________.

a) Tripura b) Bangalore
c) Jammu Kashmir d) None

45) The Sale of Goods Act came to force on _____________.

a) July 1 b) June 1
c) January 1 d) None

46) ___________means wrongful act or default.

a) Mistake b) Fault
c) Insolvent d) None

47) ___________means a person who buys or agrees to buy goods.

a) Merchant b) Seller
c) Vendor d) Buyer
48) __________means the money consideration for a sale of goods.
a) Property b) Cost
c) Price d) Value

49) Seller means a person who sells or agrees to __________ goods.

a) sell b) buy
c) exchange d) all the above

50) A sale is an _____________ contract.

a) explicit b) expressed
c) executed d) none

ANSWER

1.c 11.c 21.a 31.c 41.d

2.a 12.a 22.b 32.a 42.a
3.c 13.b 23.c 33.d 43.b
4.a 14.d 24.b 34.d 44.c
5.a 15.b 25.b 35.c 45.a
6.c 16.a 26.a 36.d 46.b
7.a 17.d 27.c 37.a 47.d
8.a 18.c 28.d 38.c 48.c
9.a 19.c 29.d 39.b 49.a
10.c 20.a 30.d 40.b 50.c
 UNIT V
Business Law Course code: U13MSY55

1) A sub agent does his work under the control of ___________.

a) Principal b) Third party
c) agent d) None

2) A substituted agent does his work under the control of __________.

a) Principal b) Third party
c) agent d) None

3) Secret profits of agent from agency is in __________.

a) Sec 216 b) Sec 215
c) Sec 217 d) Sec 213

4) The agent shall not use information obtained in his agency course against the _________.
a) Principal b) Third party
c) Agent d) All of these

5) The agent have the rights to _____________.

a) Retain b) Remuneration
c) Compensation d) All

6) _________ is a person who conducts an auction for the sale of goods of another person
a) agent b) Factor
c) Auctioneer d) None

7) ‘Del Credere’ – the term literally means __________.

a) Of earning b) Of entrusting
c) Of paying d) All

8) Definition of an agent is in ____________.

a) Sec 187 b) Sec 182
c) Sec 185 d) Sec 184

9) ________ is one who buys or sells goods for a distant or foreign principal in his own name?
a) Factor b) Commission agent
c) Agent d) None

10) ________ is one who sells Principal’s goods entrusted to him.

a) Factor b) Auctioneer
c) Agent d) Broker

11. ________ has no authority to create contract with Principal.

a) Factor b) Third Party
c) Agent d) Servant
12) A substituted agent is otherwise known as ____________.
a) Sub agent b) Broker
c) Co-agent d) All

13) Which is not a duty of Principal?

a) To indemnify the agent b) To indemnify the third party
c) On notice given to agent d) None

14) Agent may not be competent to enter into ____________.

a) Contract b) Offer
c) Promise d) Proposal

15) Meaning of Principal is encaved in ____________.

a) Sec 183 b) Sec 182
c) Sec 181 d) Sec 180

16) __________ is not necessary in agency.

a) Contract b) Offer
c) Consideration d) Promise

17) An agent’s authority may be classified as ___________.

a) Actual b) Apparent
c) Authority in emergency d) All the above

18) Mercantile agent has been defined by __________.

a) Sec 2 (8) b) Sec 2 (7)
c) Sec 2(9) d) None

19) An agency may emerge by the application of ‘Doctrine of Estoppel’

a) Agency by necessity b) Agency by holding out
c) Agency by ratification d) Agency by Estoppel

20) _______ is an example of Special agent.

a) Lawyer b) Architect
c) Engineer d) Banker

21) According to Sec 212 the duty of an agent is to conduct the business with _________.
a) accounts b) skill
c) diligence d) both (b) & (c)

22) __________ may work for several Principals at a time.

a) Agent b) Broker
c) Servant d) All the above

23) ________ is the agent of the original agent.

a) General agent b) Universal agent
c) Special agent d) Sub- agent
24) When the agent or Principal dies, the agency _________.
a) is terminated b) appoint another
c) continuing d) none

25) An agency may be terminated by __________.

a) Act of the parties b) Operation of Law
c) Mutual agreement d) All the above

26) Sec 237 of the act deals with __________.

a) Agency by necessity b) Agency by Estoppel
c) Agency by Holding out d) All the above

27) Who has a general lien on goods?

a) Special agent b) Broker
c) Factor d) none

28) ‘A’ empowers ‘B’ to let A’s house. Afterwards ‘A’ lets it himself. This is an implied _________ of B’s
authority.
a) Remuneration b) Renunciation
c) Regarding d) Revocation

29) Effect of ratification is at Sec ____________.

a) 192 b) 194
c) 196 d) 198

30) Mode of ratification is at Sec __________.

a) 191 b) 193
c) 195 d) 197

31) Sale is defined in ____________.

a) Sec 3(4) b) Sec 4(3)
c) Sec 3(2) d) Sec 2(3)

32) Features of contract of sale include ______________.

a) 2 parties b) Price
c) Good d) All the above

33) Property means____________.

a)Ownership b) Goods
c) Sales d) Service

34) Agreement to sell is a or an _____________contract.

a) expressed b) executed
c) executory d) none

35) __________ are the examples of goods.

a) Gas b) Grass
c) Water d) All the above
36) Things excluded from goods are __________.
a) money b) immovable property
c) actionable claim d) all the above

37) _____________ are the subject matter of the contract.

a) Goods b) Property
c) Buyer d) Seller

38) The goods which are not separately ascertained are__________.

a) future goods b) contingent goods
c) unascertained goods d) existing goods

39) _________ is only collateral to the main purpose of contract.

a) Condition b) Warranty
c) Guarantee d) None

40) _________ means voluntary transfer of possession of goods from one person to another.
a) Delivery b) Exchange
c) Selling d) Buying

41) Sale of goods Act was a part of___.

a) Partnership Act b) Indian contract Act
c) Contract of Agency d) None

42) ____________ means goods to be manufactured.

a) Goods b) Products
c) Future goods d) All

43) ______________ is a person who cannot pay his debts as they become due.
a) Insolvent b) Minor
c) Lunactic d)None

44) Quality of goods means their state and ____________.

a) value b) concepts
c) price d) condition

45) Specific goods means goods and ______________.

a) specialized b) categorized
c) identified d) none of these

46) Hire Purchase Act was enacted in ____________.

a) 1930 b) 1972
c) 1898 d) 1929

47) Who can sue for price?

a) Buyer b) Vendor
c) Seller d) All
48) Examples of goods are_____________.
a) stock b) shares
c) goodwill d) all the above

49) _____________ may be express or may be implied.

a) Offer b) Contract
c) Agreement d) All the above

50) ____________ refers to the custody over the goods.

a) Description b) Detriment
c) Possession d) Property

ANSWER

1.c 11.d 21.d 31.b 41.b

2.a 12.c 22.a 32.d 42.c
3.a 13.b 23.d 33.a 43.a
4.a 14.a 24.a 34.c 44.d
5.d 15.b 25.d 35.d 45.c
6.c 16.c 26.b 36.d 46.b
7.b 17.d 27.c 37.a 47.c
8.b 18.c 28.d 38.c 48.d
9.b 19.d 29.c 39.b 49.c
10.a 20.a 30.d 40.a 50.c