SYBCOM Business Law MCQ with Answers Sem 4

When one company controls the composition of the directors of another
company is called a________company.

1. Dormant
2. Subsidiary
3. Holding
4. Associate

Amount of share capital with which company is to be registered is________clause

1. Name
2. Object
3. Subscription
4. Capital

A public company should issue prospectus within___________days after registration with Registrar.

1. 30
2. 45
3. 60
4. 90

Provisions for private placement is made in Section____________of the Companies Act, 2013.

1. 41
2. 42
3. 43
4. 44

In case of the private placement, allotment of securities has to be made within__________days from the date of receipt of application.

1. 30
2. 60
3. 120
4. 180

Private placement offers cannot be made to more than_______persons in a financial year.

1. 100
2. 200
3. 50
4. 25

_______________prospectus does not contain all particulars.

1. Shelf
2. Red herring
3. Abridged
4. Deemed

_____________prospectus means a memorandum containing such salient features of a prospectus as may be prescribed by SEBI.

1. Shelf
2. Red herring
3. Abridged
4. Deemed

The private placement is offered to__________group of persons.

1. unascertained
2. unspecified
3. specified
4. unknown

A_____________is not a member of a company.

1. A subscriber to MoA
2. Agreed in writing to
3. Equity shareholder
4. Creditor

A_____________can not become a member of the company.

1. LLP
2. Company
3. Partnership firm
4. Competent person

Register of Member has to be prepared in Form________.

1. MGT-1
2. MGT-2
3. MGT-3
4. MGT-4

__________is a prima facie evidence of, one being a member of a company.

1. Books of Accounts
2. Register of Debenture Holders
3. Register of Charges
4. Register of Members

Preference shares are to be___________within 20 years.

1. cancelled
2. sold
3. destroyed
4. redeemed

Right to receive notices of the meeting is a___________right of a member.

1. Remedial
2. Proprietory
3. Statutory
4. Documentary

Every company shall have at least one director who stays in India for a total period of not less than__________days during the financial year.

1. 180
2. 181
3. 182
4. 183

Every___________company must have at least one woman director.

1. Public
2. Private
3. Listed
4. Unlisted

____________director is a director appointed by the Board in place of original diector who is absent for more than 3 months.

1. Nominee
2. Alternate
3. Woman
4. Independent

A director who is neither a managing director nor a whole-time director and not even a nominee is a_________director.

1. Executive
2. Non-Executive
3. Independent
4. Alternate

First AGM must be held within___________months of the closing of the first financial year.

1. 3
2. 6
3. 9
4. 12

Minimum____________meeting of BOD must be held in a year.

1. 3
2. 4
3. 5
4. 6

Not more_______days shall intervene between two consecutive Board meetings.

1. 50
2. 100
3. 120
4. 180

In case of Board meeting___________days prior notice has to be given.

1. 5
2. 7
3. 9
4. 11

A person cannot act as a proxy for more than__________members.

1. 25
2. 30
3. 45
4. 50

The proxy forms must be submited_______hours before the meeting.

1. 12
2. 24
3. 48
4. 50

At any general meeting, a resolution put to the vote of the meeting shall in the first instance be decided on a_________.

1. Show of hands
2. Poll
3. Postal Ballot
4. E-voting

___________means complete breakdown or extinction of the relation o the partnership between all the partners of a firm.

1. Ending
2. Closure
3. Winding-up
4. Dissolution

A_________has to be given for dissolution of firm.

1. TV advertisement
2. brochure
3. public notice
4. radio announcement

Publication in_________is necessary for the dissolution of firm.

1. Television
2. Radio
3. Journal
4. Newspaper

In case of____________, all partners may consent for dissolution of firm.

1. Dissolution by the intervention of court
2. Voluntary dissolution
3. Dissolution by operation of law
4. Lockdown

When a partner becomes____________, the case of dissolution is instituted by a friend or other partners.

1. unsound
2. insolvent
3. minor
4. alien

Every partner continues to be_________to the third parties for acts of the firm even after dissolution untill public notice is given.

1. answerable
2. liable
3. accountable
4. responsible

When a business in partnership goes into loss and can’t be carried on further, the________can order for dissolution.

1. Registrar of Firms
2. Registrar of Companies
3. Court
4. NCLT

The contribution consists___________of a LLP.

1. Liabilities
2. Assets
3. Debt
4. Capital

A Limited Liability partnership is a_________separate from its partner’s.

1. entity
2. legal entity
3. business
4. illegal entity

An LLP has__________, which means changes in partners will not affect its existence.

1. limited liability
2. suing power
3. perpetual succession
4. contribution

gg

MCQs on Contract II

 

 

Section ———— of Indian Contract Act defines a contract of Indemnity.

Section 127

Section 124

Section 125

Section 130

 

A contract by which one party promises the other party to save from loss which may be caused either by the conduct of the promissor or by the conduct of any other person is called as ——–

Contract of Bailment

Contract of Guarantee

Contract of Pledge

Contract of Indemnity

 

In a contract of Indemnity there are ——–

3 parties and one contract

2 parties and 2 contracts

3 parties and 3 contracts

2 parties and one contract

 

 

A Contract of Indemnity is ——-

Void Agreement

Quasi Contract

Contingent Contract

Wagering Contract

 

 

A ————– is a contract to perform the promise or discharge the liability of a third person in case of his default.

Contract of Guarantee

Contract of Bailment

Contract of Indemnity

Contract of Pledge

 

A Contract of Guarantee is a——————- agreement.

Bipartite agreement

Tripartite agreement

Either (A) or (B)

None of these

 

Surety is a person who ————

Who gives the guarantee

To whom the guarantee is given

In respect of whose default the guarantee is given

None of the above

 

Liability of surety is ———————-

Conditional on default

Independent of default

Can be conditional or independent

None of the above

 

A continuing guarantee applies to ——

Reasonable number of transactions

Any number of transactions

A series of transactions

A specific transaction

 

 

A surety can be discharged from his liability by —–

By Notice

By Novation

By his Death

All the above

 

 

 

Right of Subrogation means ———-

The surety will step into the shoes of the another

He is entitled to the benefit of every security which the creditor has

The surety can claim indemnity from the principal debtor

All the above

 

 

 

Bailment means ———

The goods delivered to be returned by way of an equivalent in other commodities

The goods delivered to be returned by way of an equivalent in money

 

The goods is delivered by one person to another for some purpose to be specifically returned or otherwise disposed of as per the order of the bailor

All of these

 

 

 

Bailment is defined under Section —— of Indian Contract Act, 1872.

A)144

1. B) 146

C)148

D)149

 

 

In all cases of bailment, the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would under similar circumstances. The statement is ———–

True

False

Partly correct

None of the above

 

If the goods are lent free to the bailee for his use it is known as —-

Commodation

Gratuitous Bailment

Non-Gratuitous Bailment

Deposition

 

 

 

If the bailee mixes the goods of the bailor with his own goods, without the consent of the bailor

The bailee is liable to pay the expenses for separation of goods and damages

The bailee is not liable

Not liable for compensation

None of these

 

 

Lien means ———

A charge

A particular status

A guarantee

A legal claim to hold property as security

 

 

Bailor in Pledge is known as ———

Bailee

Pawnor

Pawnee

None of these

 

 

In a Pledge, the general property or ownership in goods

Transferred to the pawnee

Cannot be transferred to the pawnee

Continues in the pawnor

None of the above

 

According to Section 71 of the Contract Act, a person who finds goods belonging to another and takes them into his custody, is subject to the same responsibility as a ———–

Bailee

Bailor

Surety

Pawnor

 

 

As per Section 182 of the Contract Act, an agent is one ———–

Who is employed by another

To do any act for another

To represent another in dealing with third person

All of the above

 

 

A sub-agent is a person ——-

Who works under the main agent

Who carries out the order and direction of a person under whom he works directly

Who works on behalf of the main agent

Employed by and acting under the control of the original agent in the business of agency

 

Substituted agent is ———–

Agent’s agent

Principal’s agent

None of the above

Both (A) and (B)

 

 

Ratification of authority means

Delegation of powers

Subrogation

Termination of agency

Confirmation to make valid or sanction an act which is already done.

 

 

 

An agency is terminated ———–

By the principal revoking the authority

By the agent renouncing the business of agency

By either the principal or agent dying or becoming of unsound mind

All the above

 

Voluntary transfer of possession from one person to another is called

 

Sale

Purchase

Delivery

Exchange

 

 

Which of the following Section of the Sale of Goods Act, 1930 defines the term “Goods”?

Section 2(7)

Section 2(4)

Section 2(5)

Section 2(9)

 

 

Goods to be manufactured or produced or acquired by the seller after making of the contract of sale are —–

Contingent goods

Future goods

Unascertained goods

None of the above

 

The definition of goods in the sale of goods act include —

Stock and shares

Money

Actionable claims

All the above

 

 

Seller means a person —–

Who sells

Who agrees to sell

Both of the above

None of the above

 

 

The money consideration for a sale of goods is called ——–

Purchase money

Price

Value

None of the above

 

 

The Sale of Goods Act, 1930 deals with ———

Immovable property only

Movable property only

 

Both (A) and (B)

None of the above

 

 

An agreement to sell is an executory contract. The statement is

True

False

Depends

None of the above

 

 

Which of the following is a bailment plus agreement to sell?

Pledge

Hire purchase

Mortgage

None of the above

 

 

A stipulation essential to the main purpose of the contract is              –.

Warranty

Condition

Obligation

None of the above

 

A stipulation collateral to the main purpose of the contract is ——

Condition

Warranty

Obligation

None of the above

 

 

Which of the following sections of the Sale of Goods Act, 1930 deals with implied conditions and warranties?

Sections 13 to 16

Sections 14 to 17

Sections 15 to 18

Sections 16 to 18

 

 

Conditions and Warranties in a contract may be ——-

Express

Implied

Express or implied

None of the above

Which of the following is an implied warranty?

As to undisturbed possession

As to non-existence of encumbrances

As to disclosure of dangerous nature of goods

All of the above

 

A breach of condition may be treated as a breach of warranty and not vice versa. The statement is

True

False

Depends

None of the above

 

 

The term “Partnership” is defined in Section ——- of the Indian partnership act, 1932.

2

3

4

5

 

Persons who have entered into partnership with one another are collectively called as ——–

Partners

Directors

Firm

None of the above

 

Partnership is a subject in the —————-

Union List

State List

Concurrent List

None of the above

 

An action for the indemnity can be brought against a partner

By the firm

By any partner on behalf of the firm

By a partner in his individual capacity

Either (A) or (B)

 

A property of a partner becomes the property of the firm

When it is used for the business of the partnership

When the property is owned by the partners

When there is an agreement express or implied that the property is to be treated as that of the firm

None of the above

 

The property of the firm includes —-

All property and rights and interest in property originally brought into the stock of the firm

All property and rights and interest in property acquired, by purchase or otherwise, by or for the firm for the purposes and in the course of the business of the firm, and includes also the goodwill of the business

Both (A) and (B)

None of the above

 

47) Which of the following courts has the jurisdiction for trying an offence punishable under section138 of the Negotiable Instruments Act, 1881?

Judicial Magistrate of Second Class

Judicial Magistrate of First Class

 

Chief Judicial Magistrate

None of the above

 

A post dated cheque is only a ————— when it is written or drawn, it becomes a cheque when it is payable on demand.

Promissory Note

Bill of Exchange

Draft

None of the above

 

The offence u/s 138 of the Negotiable Instruments Act is —-

Cognizable and bailable

Non-cognizable and non-bailable

Cognizable and non-bailable

Non- cognizable and bailable

 

A promissory note is made by ———

Creditor

Debtor

Holder

Drawee

 

Right of Indemnity Holder is specified in —-

Section 126

Section 125

Section 124

Section 123

 

X and Y go into the shop. Y says to the shopkeeper ‘let him have the goods, I will see you paid’. This is a contract of ——

Guarantee

Bailment

Indemnity

Pledge

 

Contract of Indemnity as defined in the Indian Contract Act, 1872 covers only ——

Liability incurred by something done by the indemnified at the request of the indemnifier

Indemnity for loss caused by human agency

Indemnity arises from loss caused by the events or accidents which do not depend upon the conduct of indemnifier or any other person

None of the above

 

 

Which one of the following is not a party to a contract of guarantee?

Principal Debtor

Creditor

Surety

Pawnor

 

Anything done or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee. The statement is

True

False

 

Partly correct

None of the above

 

In a contract of guarantee, the person to whom the guarantee is given is known as ——

Principal debtor

Creditor

Surety

Bailor

 

In a contract of guarantee, the liability of surety is ——

Primary

Collateral and secondary

Does not arise

None of the above

 

58. Surety is a ———-

Favored creditor

Favored debtor

None of the above

Both (A) and (B).

 

A guarantee obtained by means of keeping silence as to material circumstances is ——–

Valid

Void

Invalid

Voidable

 

A leaves a cow in the custody of B to be taken care of. The cow has a calf. In the absence of any contract to the contrary

B is bound to deliver only the cow to A

B is bound to deliver the calf as well as the cow to A

B is bound to deliver the calf as well as the cow if he is plaid half the price of the calf.

B is bound to deliver the calf as well as the cow if he is paid one third of the price of the calf.

 

 

An example of bailment without a contract is ——

Giving a vehicle in a workshop for repair

Giving something in courier

Finder of the lost goods

None of these.

 

A finder of goods is

Entitled to retain the goods

Entitled to claim compensation when specific reward is offered

Not entitled to claim compensation and thus not entitled to retain the goods

Both (A) and (B)

 

Which of the following are the rights of bailee?

Right of indemnity

Right of remuneration

Right of lien

All the above.

 

Which of the following are the rights of bailor?

Right to demand restoration of goods

Right to get increase or profit from goods bailed

Right to sue the bailee for the enforcement of the duties imposed upon a bailee

All the above.

 

Which of the following is not an example of bailment?

Giving clothes for dry-cleaning

Keeping property in mortgage

Giving clothes for tailoring

Giving book for reading

 

———- entitles the bailee to retain those goods of the bailor for a general balance of the account.

Particular lien

General lien

Ownership

Pledge

 

An agent can be appointed by —-

A minor of sound mind

Any person of sound mind

A major of sound mind

Any major of sound or unsound mind

 

An agent can lawfully employ a sub-agent ——

Originally

If the nature of the agency permits

If the ordinary custom of trade permits

 

Both (B) and (C)

 

Who is Sub-agent?

Who works under the main agent

Who carries out the order and direction of a person under whom he works directly

Who works on behalf of the main agent

Employed by and acting under the control of the original agent in the business of agency

 

For the acts of sub-agent lawfully appointed

The sub-agent is not responsible to the principal

The sub-agent is responsible to the principal directly

The agent is responsible to the principal

The agent is not responsible to the principal

 

An agency may be created by —-

Expressly or impliedly

Necessity

Ratification

All the above

 

———- is an agent who sells goods or other property by auction.

Del credere agent

Auctioneer

Factor

Broker

 

——— is a mercantile agent who guarantees the performance of the contract by the third person on the payment oof some extra commission.

Broker

Factor

Auctioneer

Del credere agenet

 

An agency comes to an end by ——–

Performance of the contract

Agreement between the principal and the agent

Renunciation of his authority by the agent

All of the above

 

An agency is irrevocable ——–

Where the authority of agency is one coupled with interest

Where the agent has incurred personal liability

Both (A) and (B)

None of the above.

 

The Sale of Goods Act, 1930 deals only with goods which are –

—— in nature.

Immovable

Movable

Specific

All the above

 

Goods identified at the time of contract of sale is called ———

Specific goods

Ascertained goods

 

Clear goods

Both (A) and (D)

 

——- is the concept of “Let the buyer beware”.

Unfair trade practices

Caveat venditor

Caveat emptor

None of the above

 

———– and ——– are the two parties’ involved in a contract of sale.

Customer and sales man

Customer and supplier

Seller and buyer

Agent and principal

 

It is a standard rule that risk follows ——–

Seller

Property

Buyer

Possession

 

An agreement to sell the transfer of property in goods from the seller to buyer takes place ———

At the end of the contract

Immediately

In a future date

1. D) Both (B) and (C)

 

Which of the following is not a subject matter in a sale of goods act?

Trade mark

Electricity

Money

Water

 

A consideration in a contract of sale must be——————- only.

Goods

Movable only

Price

Purchase

 

——————– means no one gives what they do not have.

Caveat emptor

Caveat venditor

Nemo dat quod non habet

None of the above

 

Baldry V. Marshal is a leading case relating to

Fitness for buyer

Sale under a patent or trade name

Consent by fraud

None of the above

 

Where the partnership is at will a partner can retire any time

By consent

By agreement

By notice

All of the above

 

 

A minor admitted to the benefits of a firm has a right to ——-

Such share of the property and of the profits of the firm as may be agreed upon

Have access to and inspect and copy any of the accounts of the firm

Both (A) and (B)

Any of the above.

 

A minor can

Inspect the books of accounts and other books

Inspect the book of accounts not othr books and papers

Cannot inspect the book of accounts

None of the above

 

When    a           minor       becomes   a   partner,   his   personal   liability commences from ——

The date of his first admission

The date of majority

The date fixed by all the partners

Any one of the above

 

On the retirement of a partner, the firm –

Ceases to exist

Continues to exist

Depends

None of the above.

 

A partner may retire

With the consent of all the other partners

In accordance with an express agreement by the partners

Where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire

All of the above.

 

Which of the following is a ground for dissolution u/s 44 of the Indian Partnership Act, 1932?

Misconduct

Permanent incapacity

Unsoundness of mind

All of the above

 

The Negotiable Instruments Act came into force on –

9^th Dec 1881

1^st March 1882

9^th Dec 1882

1^st April 1881

 

Promissory note is defined u/s                 ——– of the Negotiable Instruments Act, 1881.

4

5

7

8

 

The maker of a bill of exchange or cheque is called ——–

Holder

Drawer

 

Drawee

Payee

 

The person who is directed to pay a bill of exchange is called —

Holder

Drawer

Drawee

Payee

 

When does the offence u/s 138 of the Negotiable Instruments Act, complete?

When the drawer fails to pay the cheque amount within 15 days of the notice by the holder

When information regarding dishonor is received by the holder from the bank

When notice of dishonour is received by the drawer

When the cheque is dishonoured.

 

A person committing an offence u/s 138 shall be punished with for a term of imprisonment which may extend to

6 months

1 year

2 years

3 years

 

The drawee of a cheque is always a

Company

Payee

Debtor

Banker

 

 

———- cheque cannot be paid across the counter.

Stale

Mutilated

Crossed

Bearer

 

 

Asst Prof. Umesh Katekar Dayanand College of Law, Latur