Uploaded on Mar 11, 2025
Business law governs the legal aspects of commercial transactions, corporate structures, contracts, and regulatory compliance. It ensures businesses operate within legal frameworks, covering areas such as intellectual property, employment law, and dispute resolution. Understanding business law is crucial for entrepreneurs, startups, and corporations to mitigate risks and ensure smooth operations.
"Business Law: Essential Legal Principles for Entrepreneurs and Companies"
Subject:- Business law Question:- In the right of lien, the possession is repainted by Answer:- Unpaid seller Question:- The very important stages in the connection of formation of a company are Answer:- Promotion, Registration , Floatation Question:- Even if all the members of a company are citizens of India, the company does not become a citizen of India Answer:- TRUE 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. Answer:- four week Question:- goods means Answer:- Growing crops, stocks & shares, birds ,gas Question:- According to the consumer protection Act of 1986, goods means as defined under Answer:- sale of goods act, 1930 Question:- The registration of partnership firm is ________. Answer:- not compulsory Question:- The unpaid seller has a Answer:- right against the goods Question:- Unenforceable agreements and illegal agreements mean one and the same thing Answer:- False Question:- the relation between a doctor and his patient is not fiduciary in nature. Answer:- FALSE Question:- A club or a society is an ____________ of persons Answer:- association Question:- In a sale if the seller becomes insolvent after a contract of sale and the buyer has paid the price, the buyer can claim the goods from the Answer:- Official assignee, Receiver Question:- A legal representative being holder of Negotiable Instrument can sue Answer:- After the death of the holder Question:- A sale can be in case of Answer:- specific goods, existing goods Question:- Goods includes Answer:- trade marks, goodwill Question:- Under section 144, mode of service of summons are Answer:- by speed post , by courier services , by concerned police station Question:- A company is a legal personality and as such it can Answer:- Own its property in its own name , Enjoy its property in its own name , Dispose of its property in its own name Question:- An agency is based upon consent and hence, it is a Answer:- consensual relations Question:- When an offer is made to world-at-large, the contract is Answer:- made with the person who signs or performs the terms and conditions of the offer 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. Answer:- Carrier Question:- The acts or transactions made by the agent can be ratified if the acts or transaction are Answer:- illegal , criminal , void ab initio Question:- Conditions required to avoid a contract on the ground of supervening impossibilty of performance of the contract Answer:- the goods must have been perished before the risk is passed to the buyer , the loss is not caused by the wrongful act or default of either buyer or seller Question:- A ________ is an artificial person and has a legal entity. Answer:- Company Question:- negotiable instrument recognized by law are Answer:- Bill of exchange , Cheque , Promissory Note Question:- A company can become a partner or can enter into a partnership agreement. Answer:- FALSE Question:- A Company, when registered with limited liability under the Companies Act 1956, shall be deemed to be a company Answer:- Limited by shares Question:- Liabilities of partners arises to third party Answer:- for wrongful acts of a partners , for misappropriation by its partners , for acts of the firm Question:- Following persons can not be called partners Answer:- minors , insolvents , co-owners without the agreement to carry on the business Question:- Consideration or object of an agreement is lawful unless it is Answer:- forbidden by law Question:- A company is registered as an artificial person. It has no Answer:- Body , soul, conscience Question:- Agents are _____________ to act within the scope of the authority given. Answer:- authorized Question:- The essential point about an agent's position is his ________ of making his principal answerable to third parties. Answer:- authority Question:- Special agent and Particular agent mean one and the same thing. Answer:- TRUE Question:- When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be ________. Answer:- accepted Question:- An unregistered firm can bring an action in any court of Law against Answer:- a partner who steals the property of the partnership firm , a partner who purposely damages the property of the partnership firm Question:- In order to convert a proposal into a promise the acceptance must be Answer:- absolute and unqualified Question:- The provisions of sale of goods were previously included in the Indian Contract Act, 1872. Answer:- TRUE Question:- The law relating to sale of immovable goods is contained in the Sale of Goods Act, 1930. Answer:- FALSE Question:- the company is a legal personality and as such it can Answer:- Own its property in its own name , Enjoy its property in its own name , Dispose of its property in its own name Question:- company based on ownership is Answer:- Public company Question:- the central The Central Government may, by license direct the association to be registered which is formed as a limited company for promoting commerce, art etc. Answer:- TRUE Question:- The directors of a company have to file their consent with the ___ to act as director. Answer:- registrar Question:- penalty for false particulars Answer:- imprisonment for three months Question:- partnership deed Answer:- name, place, date Question:- A statement in prescribed form and accompanied by fees Answer:- required for registration Question:- The registration of firms Answer:- to rectify any mistake Question:- A banker is a mercantile agent. Answer:- FALSE Question:- Following are the elements which constitute a partnership Answer:- there must be a contract regarding a partnership , there must be an association of two or more persons Question:- Unfair trade practice includes a representation made to public in a form that purpots to be a ________ of a product. Answer:- warranty Question:- All contracts are agreements and all agreements are contracts. Answer:- FALSE Question:- In case of Bill of Exchange, the notice of dishonors is essential Answer:- TRUE Question:- Following are the conditions needs to prove an act of a partner is an act of a partnership firm Answer:- such a act be done in a ordinary course of a partnership firm , it must be related to the business of the firm , act must have been done in the name and on behalf of the firm Question:- Existing goods are those goods, which are owned annd possessed by the seller at the time of sale. Answer:- TRUE Question:- A,B,C, and D are partners, A retires and B dies, the partnership between them comes to ________ Answer:- an end Question:- In special agency Answer:- agency lasts for a specific period , agency lasts for a particular type of job or work , agents has limited authority Question:- Goods identified at the time contract of sale are known as Answer:- Ascertained goods Question:- Minor partner Answer:- Admitted for profits only Question:- Dissolution of a partnership Answer:- Death or Insanity of the partners Question:- Firm Answer:- Partners Question:- partner Answer:- agents of the firm Question:- partnership Answer:- Can be formed at Will Question:- An agreement of agency must make clear ________ of a person to act on behalf of another person. Answer:- intention Question:- The memorandum of every company shall state Answer:- The name of the company , The registered office , The main objects Question:- A ________________ partner is like an undisclosed principal. Answer:- sleeping Question:- A minor admitted to the benefits of partnership is Answer:- not personally liable for any act of firm , not entitled to sue partners for account , entitled for the profits of agreed upon Question:- When an agent has the authority to do all acts connected with the business or trade of his principal, he is known as Answer:- a general agent Question:- Special resolution and confirmation by ______ is required for alteration of memorandum. Answer:- Company low board Question:- Money order, Postal order, Share Certificates, Deposit receipts and such other documents are Negotiable Instruments. Answer:- FALSE Question:- there can be any partnership where a business is carried on Answer:- with a benevolent purpose , where any one of the partners is entitled to total profit earned Question:- Issued capital can be defined as the ________ of shares which are offered to the public for subscription. Answer:- nominal value Question:- specific goods are those which are identified and agreed upon at the time of a contract of sale is made Answer:- TRUE Question:- An agreement enforceable by ;aw is a contract. Answer:- TRUE Question:- The liability of companies on the basis of liability are Answer:- Unlimited companies , Limited by guarantee , Limited by shares Question:- Karta of Joint-Hindu family is ________ of his family. Answer:- representative Question:- the meaning of the term "caveat emptor" is Answer:- let the buyer beware Question:- The National Commission has the power to entertain appeals against the orders of any Answer:- State Commission Question:- Amendments made in the consumer protection act in 2002 include Answer:- Provision for substitution of legal heir or representative as a party to the complainant in the event of the death of the opposite party. , Provision for recovery of amounts ordered to be paid by consumer redressal agencies as arrears of land revenue. , Provision for recharging of fee in respect of complaints filed before the consumer redressal agencies Question:- No consideration is required in formal contracts. Answer:- TRUE Question:- The following types of companies are required to have their own articles Answer:- Unlimited companies , Limited by guarantee , Limited by shares Question:- The Prospectus is Answer:- A document raising share capital , A Prospectus can be, any notice , Issued to invite the subscription to shares Question:- Classification of companies based on the jurisdiction of funtioning Answer:- A National Company , Multinational Company , Foreign Company Question:- The subscriber of the memorandum of a company on its registration shall be entered in its registration of members as member. Answer:- TRUE Question:- Under a contract of sale goods have to be exchanged for Answer:- Money Question:- An agent was instructed by his principal to insure the goods, but he neglected to insure the goods. As a result, the principal had to suffer the loss. Who is responsible for the loss ? Answer:- agent Question:- One man company is generally a Answer:- Private company Question:- Mr. Dang and Mr. Thomas work together. Mr. Dang receives all the profits earned and pays Mr. Thomas certain amount for his work as wages. whether Mr. Dang and Mr. Thomas are Answer:- Master and servant Question:- An agreement can become a contract if it is Answer:- enforceable by law Question:- A proposal comes to an end by its __________________ Answer:- rejection Question:- Following are the types of jurisdiction, which have been conferred on the state commission Answer:- Appellate, supervisory, provisional Question:- Minor's Agreement Answer:- void ab initio Question:- threatening to commit Answer:- coercion Question:- Consideration Answer:- Past, present and future Question:- Mistake Answer:- Fact and law Question:- Any person who for the consideration becomes the possessor of a promissory note Answer:- Holder in due course Question:- Negotiating Negotiable Instruments so as to bind all, except himself Answer:- A minor Question:- A partner accepting negotiation instrument Answer:- Implied authority Question:- A person who can't accept or indorse a bill Answer:- An insolvent Question:- Partnership is based on ________________ Answer:- Faith Question:- A company subject to the provisions of section 32 of the companies act as unlimited may register under this Act as a ___________________ Answer:- Limited company Question:- Complaint under the consumer protection act, 1986 relates to Answer:- Unfair Trade Practices , Restrictive Trade Practices , Charging of higher prices Question:- The monetary jurisdiction is based upon the Answer:- Amount of relief claimed by the complainant Question:- Unpaid seller's right to stop the goods in transit arises only when the buyer is _____________ Answer:- Bankrupt Question:- According to the consumer protection Act of 1986, a person includes. Answer:- Hindu undivided family , Co-operative society , Individual as well as juristic person Question:- Non-registration of a partnership firm does not make the partnership agreement :- Answer:- Void Question:- Agent has duties toward principal in addition to Answer:- Conducting principal's business , Rendering accounts to principal , Communicating with the principal Question:- In the Bill of Exchange, the person to whom the bill is made payable is called as Answer:- payee Question:- Where the partners agree to carry on the business for a definite period of time, the partnership is said to be Answer:- for a fixed period Question:- The exception to the rules of " buyer beware" are Answer:- quality of goods are not merchantable , presence of patent defect in goods Question:- A company which has a control over a subsidiary company is a Answer:- holding company Question:- Following are the conditions needed to prove an act a partner is an act of a partnership firm Answer:- such a act be done in a ordinary course of a partnership firm , it must be related to the business of the firm , act must have been done in the name and on behalf of the firm Question:- There are two types or kinds of capital of a company, i.e. owned capital and borrowed capital. Answer:- TRUE Question:- A company is Answer:- Voluntary Association of persons , An artificial legal person , A separate legal entity Question:- Presentation of negotiable instrument Answer:- For payment Question:- When an endorser signs the instrument and adds a direction to pay the amount mentioned therein Answer:- Endorsement in full Question:- Default in payment of amount of cheque Answer:- Dishonors of cheque Question:- Notice of dishonors of cheque Answer:- Mandatory provision Question:- the object of the contract should be Answer:- Legal one , Lawful Question:- The Indian Contract Act, 1872, does not cover all those duties which are not ________ in nature Answer:- Contractual Question:- Loss of profits is an example of liquidated damages. Answer:- FALSE Question:- Partnership is nothing but a psychological relationship existing between the partners. Answer:- FALSE Question:- The company law board confirms the change of registered office of the company within a state Answer:- FALSE Question:- Ratification is one of the ways of ________ agency. Answer:- Creating Question:- following are the characteristics of the partnership at will Answer:- Partners are always free to break their relationship at their will , It is for indefinite period , No provision for determination or termination of the partnership Question:- the person who buys the goods for trading purposes is not a ____________ under the consumer protection act, 1986 Answer:- consumer Question:- An agreement with a minor is not voidable but Answer:- void ab initio Question:- An agreement to sell takes place in the case of existing goods or specific goods. Answer:- FALSE Question:- An insolvent person can accept or endorse a bill. Answer:- FALSE Question:- A stipulation in a contract of sale with reference to goods which are subject there of may be :- Answer:- A condition or warranty Question:- The State Council consists of the following members :- Answer:- Minister in-charge of consumer affairs in the State Govt. , Members representing such interests as may be prescribed by the State Govt. Question:- Subsidiary company can hold shares and can acquire membership of the holding company. Answer:- FALSE Question:- There should be a ________ and real necessity for creating an agency. Answer:- Definite Question:- For obtaining recognition as an 'Appropriate Laboratory", the applicant shall send an application in the Performa prescribed by the Answer:- Bureau of Indian Standard Question:- The object of carrying on a business must be :- Answer:- Sharing of profits Question:- Company is treated as a legal person distinct from its members. Answer:- TRUE Question:- An offer must create ________ relationship. Answer:- Legal Question:- A person is considered the holder of Negotiable Instruments if :- Answer:- His name appear on an instrument , He is in possession of bearer instrument , He is the endorsee of a cheque Question:- I promise to pay Mr. Luies or Order Rs.1,500/-" is a promissory note Answer:- TRUE Question:- In a ________ contract, the future event is collateral to the contract. Answer:- Contingent Question:- The property in the Negotiable Instrument passes from one person to another person by ________ delivery Answer:- mere/ simple Question:- The Negotiable Instrument Act is latest amended in the year Answer:- 2002 Question:- Maxim "Que facit per alium facit per se" means Answer:- He who does through another does by himself Question:- According to S almond and ________, a promise without consideration is a gift and one made with consideration is a bargain Answer:- Winfield Question:- Whatever a person can do himself, he can do the same through another person i.e Answer:- His agent Question:- Under the Consumer Protection Act of 1986, goods include actionable claim and money. Answer:- FALSE Question:- An agency cannot be terminated at all. In other words a contract of agency is perpetual. Answer:- FALSE Question:- sale is a contract plus Answer:- Conveyance Question:- In ________ contract, all the parties perform their promise Answer:- An executed Question:- To be deemed as an unpaid seller the seller must : Answer:- Have sold the goods against cash and the price must be due Question:- Publication of prospectus is not at all necessary for the companies for raising the capital from public. Answer:- FALSE Question:- A proposes by a letter sent by post to sell a house to B at certain price". The communication of proposal is complete :- Answer:- When B receives the letter Question:- The Articles of Association contains the Answer:- Regulations , Bye-laws , Rules Question:- The modes of termination of agency are Answer:- By completion of the agency business , By death of principal , By expiry of period or time Question:- For creating ________ relationship the parties to the contract must have a will to seek for the help of law court in the case of breach of a contract. Answer:- Legal Question:- The registration of partnership firm is ________. Answer:- Not compulsory Question:- Consumer Dispute Redressed Forum is a District Forum established by :- Answer:- The State Govt. in each District of the State by Notification Question:- A mistake as to a law not in force in India is :- Answer:- Void Question:- The Registrar shall register the altered memorandum and certify the registration under his hand within one month from the date of filing such documents. Answer:- TRUE Question:- The amended monetary jurisdiction of the state commission has been increased from :- Answer:- Five lakes to rupees one corer (check once) Question:- When the property in goods is transferred from the seller to the buyer at once, the contract is called :- Answer:- a sale Question:- Under the Consumer Protection Act of 1986, the consumer redressed forum is a Answer:- Statutory body Question:- Documents to be presented for the registration of a company with the registrar are :- Answer:- The memorandum of the company , Its articles , The agreement, if any Question:- Apparent authority and ostensible authority have different meanings Answer:- FALSE Question:- a cheque is a bill of exchange Answer:- TRUE Question:- barter system Answer:- Exchange of goods for goods Question:- sale of goods act 1986, 1930 Answer:- Movable goods Question:- caveat emptor Answer:- Let the buyer beware Question:- sale Answer:- Exchange of goods for price Question:- The maximum number of persons in the case of a partnership firm carrying on banking business must not exceed twenty. Answer:- FALSE Question:- coercion means and includes Answer:- Any act forbidden by the Indian Penal Code , Any threatening to commit illegal act Question:- A company is a ________ company if the holding company controls the majority composition of its board of directors. Answer:- Subsidiary Question:- The partnership deed is required to be drafted very carefully and to be signed by Answer:- All the partners Question:- Mistake regarding the ________ or the terms and conditions of the contract is a Mistake of the fact. Answer:- Subject matter Question:- Any user of the goods with the approval of the person who has purchased the goods for consideration is also a consumer Answer:- TRUE Question:- A company may, by special resolution, alter the provisions of its memorandum so as to change the objects of the company so far as may be required to enable it :- Answer:- To carry on its business more economically , To amalgamate with any other company , To attain its main purpose by new or improved means Question:- The goods, which are identified and agreed upon at the time of a contract of sale, are known as :- Answer:- specific goods Question:- Misrepresentation contains following ingredients Answer:- Positive assertion , Breach of duty without intention to deceive , Causing another party to make a mistake as to the substance of the thing Question:- following are the essentials of valid acceptance Answer:- Acceptance must be qualified , Acceptance must be communicated to the offeror Question:- The District Protection Council shall consist of the following members :- Answer:- The Collector of District , Members representing such interests as may be prescribed by the State Govt. Question:- The order of the Commission can be set aside by Answer:- The Supreme Court , The National Commission Question:- Memorandum of a company is a primary and supreme document of the company. Answer:- TRUE Question:- "Law" means a set of rules and regulations in the nature of dictatorship. Answer:- FALSE Question:- unlawful business Answer:- dissolution of partnership Question:- sub-partner Answer:- Sharing of profits by outsiders Question:- partnership Answer:- association of two or more persons Question:- partners have to be Answer:- competent Question:- partner lending his name only Answer:- nominal partner Question:- agreement is defined as a contract at its inception. Answer:- TRUE Question:- _______ is the _________method of voting with the rule " one share one vote Answer:- poll, capitalistic Question:- agency can be created by Answer:- operation of law Question:- Where the property in goods sold has been passed, the unpaid seller has the Answer:- right to stop goods in transit Question:- A minor may draw, endorse, deliver and negotiate a negotiable instrument to bind other parties except himself Answer:- TRUE Question:- Dissolution by the order of the Court at the suit of a partner on certain grounds, which include Answer:- Willful or persistent breach of agreement by a partner Question:- the agency can be _______ at any time by ________agreement between the principal and his agent. Answer:- terminated, mutual Question:- the requirement of valid memorandum of association are that it Answer:- is to be signed by at least seven persons in case of public company , is to be signed by at least two persons in case of private company Question:- An Outsider or a stranger who holds himself out or represents himself to be a partner of the partnership firm and induces outsider to give credit to the firm Answer:- partner by estoppels Question:- A person who becomes a partner by entering into partnership agreement & is actual engaged in the conduct and management of the partnership business Answer:- Ostensible partner Question:- A person who only lends his name to the partnership firm but does not invest any capital in the firm nor does take any interest in the affairs of the firm Answer:- Nominal Partner Question:- When partners agree to share the profits of the partnership firm with any outsider, such An outsider is known as Answer:- Sub-Partner Question:- A partner whose existence in the firm is kept secret from the outside world Answer:- Dormant Partner Question:- Following are the conditions needed to prove an act of a partner is an act of a partnership firm Answer:- such a act be done in a ordinary course of a partnership firm , it must be related to the business of the firm , act must have been done in the name and on behalf of the firm Question:- a consumer is Answer:- Nominee under a policy of life insurance , A Railway passenger , An employee who is member of Employees Provident Fund Scheme Question:- A meeting is ___________ of a number of persons for ___________ a lawful business having certain purpose or purposes Answer:- an assembly, transacting Question:- Following are the conditions to be fulfilled before a seller ca be deemed to be an unpaid seller Answer:- he must have an immediate right of action for the price , he must have sold goods against cash and the price must be due Question:- Following are the examples of statutory companies Answer:- Reserve Bank Of India , Unit Trust Of India Question:- barter exchange Answer:- Question:- sale of goods act 1930 Answer:- Movable goods Question:- Quiet possession Answer:- Implied warranty Question:- A consumer has right to be assured, wherever possible, access to services at Answer:- competitive prices Question:- transmission of share stakes place due to Answer:- death of a member , insolvency of a member , lunacy of a member Question:- In the absence of usage or custom of trade to the contrary, the implied authority of a partner does not empower him to 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 Answer:- A Burmese Buddhist husband and wife carrying on business , the members of Hindu Undivided Family carrying on Family business Question:- The maker, acceptor or endorser respectively of a negotiable instrument is discharged from liability thereon by Answer:- release , payment , non cancellation Question:- the national Commission shall decide the complaint as far as possible within a period of Answer:- three month from the date of notice received by the opposite party Question:- When the ________ of a bill is ‘for collection only’ the endorsee cannot be a ________ Answer:- Endorsement, holder Question:- Un-called capital is the part of ________ and ________ capital which has not been called up. Answer:- issued, subscribed Question:- special notice and special resolution mean one and the same. Answer:- FALSE Question:- ________ Trade Practice is a trade practice which for the purpose of promoting a sale, use or supply of any goods or for the provision of any service adopts any ________ practice Answer:- Unfair , deceptive Question:- Consumer is a person who procures service under a contract of personal service Answer:- FALSE Question:- property of the company is the property of Answer:- Promoters before the existence of the company , the company itself after its incorporation Question:- English law does not recognize formal contract Answer:- FALSE Question:- Reserved capital is the part of ________ capital which can only be called up at the time of & for the purpose of ________ the company Answer:- uncalled, winding up Question:- the partners need not sign the partnership deed Answer:- FALSE Question:- when the person to whom the proposal is made ________ his assent thereto, the proposal is said to be ________ Answer:- signifies, accepted Question:- characteristics article of association are Answer:- it contains rule for the internal management of the affairs of the company , it is subordinate to the Memorandum of Association Question:- _______ implies committing or threatening to commit any act ________ by the Indian Penal Code Answer:- coercion, forbidden Question:- ___________ is an indication made to the______________ Answer:- prospectus, public Question:- a factor is a type of Answer:- Mercantile Agent Question:- Agents acting jointly and severally are known as co-agents Answer:- TRUE Question:- Enforcement of contingent contract depends on Answer:- Happening or Non-happening of the event Question:- In a sale, if the buyer becomes insolvent before he pays the price of the goods purchased, the person who can claim the delivery of the goods as the property in goods has been already transferred as a Answer:- official assignee or receiver Question:- when the __________ Of contract become __________, such contract need not be performed. Answer:- performance, impossible Question:- a cheque can be bearer, order or crossed Answer:- TRUE Question:- following is an implied condition. Answer:- Condition as to sale by sample Question:- dissolution by the voluntary act of the partners, which includes Answer:- dissolution by agreement Question:- Mr. Red and Mr. White register their company as a private company with a share capital of Rs. 7, 00,000/- divided into 70,000 shares of Rs.10/- each. Mr. White holds 69,999 shares while Mr. Red holds only 1 share. This is a :- Answer:- one man company Question:- if any member of the central council wants to resign from the central council, he may do so by a latter addressed to the Answer:- chainman Question:- the principal must give compensation to his agent in respect of injury caused to an agent bt the Answer:- Principal's neglect , Principal's want to skill , Principal's want to knowledge Question:- a cheque is dishonored by Answer:- non payment only Question:- past consideration is one which is wholly suffered by the __________ Even before making of the agreement. Answer:- promise Question:- The social or the domestic contracts are excluded from the purview of the Indian Answer:- TRUE Question:- Persons who have entered into partnership with one another are called individually partners and they are collectively "a firm". Answer:- TRUE Question:- An unregistered firm can institute a suit against Answer:- wrongful use of the trade mark , wrongful use of the firm name Question:- an auctioneer has full authority to sell the goods of his principal by private contracts. Answer:- FALSE Question:- the minor may draw, endorse, deliver and negotiate a negotiable instrument to bind other parties except himself Answer:- TRUE Question:- Notice of dissolution of firm must be _________________ Answer:- explicit Question:- promissory note must be in Answer:- in writing , definite , unconditional Question:- mental acceptance amount to an acceptance Answer:- FALSE Question:- A cooler was purchased not for his own use, but it was installed at a bus-stand for the use of public free of charge. it was held that the purchaser was a consumer Answer:- There was no commercial purpose Question:- certain effects of the insolvency of a partner are as follows Answer:- An insolvent partner ceases to be a partner , The partnership firm dissolve on the insolvency of any partner Question:- following are the agencies of a three tier system of consumer disputes redressed agencies Answer:- State commission , National commission , District Forum Question:- in order to become a holder, a person must possess the instrument under some _____ title. Answer:- lawful Question:- a private company can be registered with a paid-up capital of rs. Answer:- one lakes Question:- the __________ Of 1986 is basically passed to protect the interest of the consumer. Answer:- Consumer Protection Act Question:- in case of a public limited company, the maximum number has no limit, but the minimum is fixed at. Answer:- 7 Question:- an agreement should be certain and unambiguous. Answer:- TRUE Question:- A trader is a middleman bringing the buyer and seller together and receiving any commission for services rendered by him. Answer:- FALSE Question:- The Articles of Association controls ____________ operations of the company. Answer:- internal Question:- a person is deemed to be dominated the will of another if Answer:- A real or apparent authority over them , He stands in a fiduciary relation to other Question:- There are certain relations, which are not created by contracts but are upheld by law, which are known as ________ contracts. Answer:- quasi Question:- every promise and every set of promises, for consideration for each other, is __________ Answer:- an agreement Question:- in contract of sale the buyer becomes Answer:- absolute owner of the property Question:- During the war, all the members of a private company were killed while they were in general meeting in a bomb attack. The questions is whether the company will Answer:- Survive Question:- quasi contract rests on the ground of Answer:- equity Question:- According to Rule 3 of the Consumer protection rules, the Central Council consists of the following members Answer:- Minister in-charge consumer affairs in states , Minister in-charge of the department of home , Minister in- charge of department of Commerce and Industry Question:- copies of memorandum and articles shall not be given to members. Answer:- FALSE Question:- Directors are allowed to borrow from the public companies. Answer:- FALSE Question:- as per the consumer protection act, 1986,a consumer is a Answer:- A person buying goods for a consideration , A person who is a beneficiary of services Question:- a consumer has the following rights Answer:- To get the education of the availability of legal remedies , Seek redressal against unfair trade practices , To be informed about quality, quantity, potency, purity, standard and price of goods Question:- agents are _____________ to act within the scope of the authority given. Answer:- aphorized Question:- memorandum of a public company must be signed by Answer:- seven persons Question:- A proposes by a letter sent by post to sell a house to B at certain price, B accepts A's proposal - The communication of the acceptance is complete as against B :- Answer:- When letter is received by A Question:- an agency is based upon the __________________ Answer:- consent Question:- an agreement to agree in future is not a contract Answer:- TRUE Question:- The presumptions laid by Sec.118 & 119 of Negotiable Instrument Act do not arise where negotiable instrument is obtained by ________. Answer:- Fraud/Deceit Question:- presumptions do not arise where an instrument’s obtained by Answer:- Fraud , Offence , Illegal consideration Question:- As per S.2(1) (f) of the Consumer Protection Act, defect means any ________ in the quality of goods. Answer:- Shortcoming Question:- the change of name shall affect all the rights and obligations of the company Answer:- false Question:- following agreement are opposed to public policy Answer:- Agreement to commit crime , Agreements interfering with an administration of justice Question:- to Agreement is a contract void able at the option of the party to an agreement make a mistake as to Answer:- The agreement , The contract subject to a specific conditions , The subject matter of the thing Question:- limited company can be formed for promoting Answer:- Religion , Commerce , Art Question:- dissolution of partnership at will Answer:- Giving due notice Question:- domicile of partnership firm Answer:- partnership deed Question:- registration of partnerships Answer:- not mandatory Question:- can be sued in its own name Answer:- partnership firm Question:- a cheque is always payable on Answer:- demand Question:- an agreement is defined as a contract at its inception Answer:- TRUE Question:- an agent is simply a blank ____________ between his principal and the third party. Answer:- Connecting link Question:- Unpaid seller's right to stop the goods in transit arises only when the buyer becomes. Answer:- insolvent Question:- If the principal comes to know that the agent has dishonestly concealed from him any material fact, the principal :- Answer:- Can repudiate the transaction , May affirm such transaction , May claim damages for loss Question:- Shelf prospectus is a prospectus issued by any ________ institutions for one or more issues of the securities. Answer:- Financial Question:- "I promise to pay Mr. John Rs.500/- seven days after my marriage with Miss Lucy" is a promissory note. Answer:- false Question:- a company after its registration, possesses Answer:- legal entity Question:- according to the consumer protection ac, 1986 a service includes Answer:- Financial service , Entertainment Question:- Sometimes contracts are entered into on behalf of the company before its incorporation, such pre- incorporation contracts are Answer:- binding Question:- partnership business carried on continuous losses, the court may order to ________The firm. Answer:- dissolve Question:- The exception to the wagering agreement are Answer:- Cross-word competitions , Horse-race Question:- Negotiable Instrument can be drawn or accepted by duly authorized agent on behalf of :- Answer:- principal Question:- there cab not be any partnership where a business is carried on Answer:- with a benevolent purpose , where any one of the partners is entitled to total profit earned Question:- A Company subject to the provisions of section 32 of the companies act as unlimited may register under this Act as a ________. Answer:- Limited company Question:- Where a cheque is crossed specially, the banker to whom it is crossed may again cross it specially to another banker, his agent, for collection Answer:- TRUE Question:- The three ingredients in the performance of a contract of sale by the seller are :- Answer:- Transfer of property in goods , The passing of the risk , Delivery of goods Question:- When a person leaves country for a long time, he may appoint his son, wife or friend as his universal agent Answer:- TRUE Question:- section 68 Answer:- Supply of necessaries to minor Question:- Section 70 Answer:- Liability of payment for non-gratuitous acts Question:- section 63 Answer:- Remission Question:- section 71 Answer:- Responsibility of a finder of goods Question:- whenever the term illegal contract is used, it involves _________________ Answer:- Inconsistency Question:- The main aim and important criterion of decoding the commercial purpose is whether the aim of purchasing the goods is to :- Answer:- Earn profit Question:- a proposal comes to an end by its ___________________- Answer:- Rejection Question:- There can not be any partnership where a business is carried on Answer:- with a benevolent purpose , where any one of the partners is entitled to total profit earned Question:- a partner unknown to the world is a Answer:- dormant Question:- an unregistratered firm can institute a suit against Answer:- wrongful use of the trade mark , wrongful use of the firm name Question:- as per the consumer protection act, 1986, a consumer’s a Answer:- A person buying goods for a consideration , A person who is a beneficiary of services Question:- under the consumer protection act of 1986,goods include actionable claim and money. Answer:- false Question:- in a promissory note, the promise to pay can be indefinite. Answer:- false Question:- the registration of partnership firm is __________________ Answer:- Not compulsory Question:- bill of exchange must be Answer:- in writing , definite , unconditional Question:- one of two kinds of presentment of an instrument is by _____________ Answer:- payment Question:- following are the circumstances under which an offer lapse. Answer:- Offered makes conditional offer , Acceptor comes to know about the death of the propose , Offered fails to communicate the acceptance Question:- an alien friend can enter into partnership with an India subject. Answer:- TRUE Question:- a partner can transfer his share to any outsider without obtaining consent of all other partners. Answer:- false Question:- The person who is authorized to appoint / employ an agent is :- Answer:- A person of sound mind Question:- an offer, to be treated as a valid offer, should be ______________ Answer:- Communicated Question:- An agreement creating and defining the obligations between the parties is a contract", This was stated by :- Answer:- Sir John Almond Question:- Registration of firm is a condition precedent for filing the suit for seeking the remedy which arises out of contractual obligations. Answer:- TRUE Question:- The act done by the agent with the permission and on behalf of the principal is ________ on the principal. Answer:- binding Question:- a promissory note contains conditional undertaking to pay a certain sum of money Answer:- false Question:- the contract of agency between the principal and his agent’s ____________ Answer:- enforceable Question:- notice of dishonors of coequal must be ___________ Answer:- within a reasonable time Question:- the goods, which are owned and possessed by the seller at the time of sale, are known as Answer:- Existing goods/Specific goods Question:- Mr. Manik appoints Mr. Naveen as his agent to sell the goods at Rs.10,000/- on his behalf. Mr. Naveen sells the goods for Rs.12,000/- . Who is liable to account for it to? Answer:- mr, naveen Question:- a partner may make an agreement with his partners, not to cry _________ business to that of the firm. Answer:- similar Question:- a condition is a type of stipulation and has following characteristics. Answer:- A breach of it gives the suffered party the one & only one Right to repudiate the contract , It is of the subsidiary character Question:- section 2 of Indian contract act defines proposal as Answer:- When one person communicates his desire to do something for another to obtain the assent of another that is a proposal. , When one person signifies to another his willingness to do or to abstain with a view to obtain the consent of another that is a proposal. Question:- An intention to create legal relations is one of the most important criterions to establish a contract. Answer:- TRUE Question:- in India, some of negotiable instruments by usage or custom of trade are Answer:- Government promissory notes , Bankers drafts , Pay off orders Question:- a ____________ partner is like an undisclosed principal. Answer:- sleeping Question:- a company having control over a subsidiary company Answer:- holding company Question:- constitution and objects of the company Answer:- memorandum Question:- govern the internal affairs of the company Answer:- articles of association Question:- document includes any notice, circulation, advertising etc. Answer:- Prospectus Question:- if there is a breach of condition, a buyer has an option to claim Answer:- damages Question:- when the partners select to adopt certain firm name which is identical with the firm name already in existence, then such name is Answer:- legal Question:- which of the following is the essential element of the contract ? Answer:- free consent Question:- where the transfer of property in the goods is to take place at a future time it is called Answer:- agreement to sell Question:- partnership is an association of three or more persons formed to run the business and share the profits earned in the business Answer:- false Question:- an garment of agency must make clear the _______of a person act on behalf of an other person Answer:- intention Question:- a proposes by a letter sent by post to sell a house to b certain price, b accepts A's proposal- the communication of the acceptances is compete as against b Answer:- When letter is received by A Question:- agreement is a contract void able at the option of the party to an agreement to make a mistake as to. Answer:- The agreement , The contract subject to a specific conditions , The subject matter of the thing Question:- partner Answer:- agents of the firm Question:- partnership Answer:- Can be formed at Will Question:- registration of partnership Answer:- not mandatory Question:- an unregistratered firm can bring an action in any cout of law against Answer:- a partner who steals the property of the partnership firm , a partner who purposely damages the property of the partnership firm Question:- according to the consumer protection act, 1986,a service includes Answer:- Financial service , Entertainment Question:- a company subject to the provisions of section 32 of the company act as unlimited may register under this act as a _________________ Answer:- Limited company Question:- in a promissory note, the promise to pay can be indefinite. Answer:- false Question:- the parson who is authorized to appoint / employ an agent is Answer:- A person of sound mind Question:- an offer , to be treated as a valid offer , should be _______________ Answer:- Communicated Question:- "an agreement creating and defining the obligations between the parties is a contract" , this was stated by . Answer:- Sir John Almond Question:- notice of dishonor of coequal must be ________________ Answer:- with in a reasonable time Question:- under the claim and money. Answer:- false Consumer Protection Act of 1986, goods include actionable Question:- a pardanashin women means a women who. Answer:- observes seclusion, because of custom. Question:- "I promise to pay Mr. luies or order rs.1500/- is a promissory note Answer:- TRUE Question:- in a ___________ Contract, the future event is collateral to the contract. Answer:- Contingent Question:- in __________ Contract, all the parties perform their promise. Answer:- An executed Question:- "a proposes by a letter sent by post to sell a house to b at certain price. The communication of proposal is complete. Answer:- When B receives the letter Question:- sale of goods act, 1930 Answer:- Movable goods Question:- sale Answer:- exchange of goods for price Question:- the registrar of firms Answer:- to rectify any mistake Question:- the authority of the agent as it appears to others is called as Answer:- apparent authority Question:- the essence of contract of sale is Answer:- sale of goods Question:- every company must have Answer:- a specific name Question:- A company subject to the provisions of section 32 of the companies act as unlimited may register under this Act as a _________________ Answer:- Limited company Question:- power of attorney is an example of express authority. Answer:- TRUE Question:- crossing of coequals secures payment. Answer:- TRUE Question:- goods means Answer:- debentures , stocks & shares Question:- consideration past Answer:- present and future past Question:- a stranger represents himself to be a partner Answer:- partner by holding out Question:- not personally liable for any act of firm Answer:- minor Question:- outgoing partner ceases to be a partner Answer:- by transfer of interest of a partner Question:- dissolution of partnership firm by the order of the court Answer:- misconduct of a partner Question:- following is an implied condition Answer:- condition as to death or insanity Question:- in the category of negotiable instruments which of the following is included Answer:- railway or S.T. receipt Question:- convicts are disqualified from contracting by the law to which they are subject. Answer:- TRUE Question:- following are the general agents Answer:- a manager of a branch office, managing director of a company, commission agent Question:- following persons can perform the contracts Answer:- promissory , agent , legal representative Question:- partner who DOES NOT share the profits of the firm is Answer:- Nominal Partner Question:- a company can sue and also be sued by Answer:- in its corporate name Question:- private company can commerce its business immediately after receiving the certificate of Answer:- incorporation 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. Answer:- carrier Question:- one man holds practically the _____ of the share capital of the one man company Answer:- whole Question:- the sale of goods is the most common of all Answer:- commercial contracts Question:- the types or kinds of mercantile agents are Answer:- commission agent, broker, auctioneers’ Question:- following are the conditions needed to prove that an ac of a partner is anact of a partnership firm. Answer:- an act be done in an ordinary course of business of a partnership firm , It must be related to the business of the firm , Act must have been done in the name and on behalf of the firm Question:- trade in relation to any goods Answer:- who distributes goods Question:- manufacturer Answer:- who makes any goods Question:- consumer dispute Answer:- dispute between consumer and manufacturer or trader Question:- complaint of consumer Answer:- any allegation in writing Question:- ratification of minors agreement by him on attaining majority Answer:- cannot be possible Question:- when person is entrusted with a another’s property, he may be appointed as an agent by necessity. Answer:- TRUE Question:- acceptance of a lesser performance than what as actually contracted for is known as _______ Answer:- Remission Question:- every prospectus shall state the matters specified in part I of schedule II of the companies act issued by 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:- the goods, which are owned and possessed by thee seller at the time of sale, are known as Answer:- Existing goods/Specific goods Question:- in __________ Contract, all the parties perform their promise. Answer:- An executed Question:- articles are………….to and controlled by the memorandum. Answer:- subordinate Question:- the seller can file a suit against the buyer for to price of goods only after Answer:- the property in goods is transferred to the buyer Question:- future goods Answer:- agreement to sell Question:- identified goods Answer:- Ascertained goods Question:- unascertained goods Answer:- generic goods Question:- unpaid seller Answer:- right of lien on goods Question:- all money payable by any member to the company under the memorandum or articles shall be debt from time to the company. Answer:- TRUE Question:- in case the object of an agency becomes unlawful, the agency can not be terminated. Answer:- FALSE Question:- a declaration given for the registration of company is given by Answer:- An advocate of Supreme Court , An attorney entitled to appear before a High Court , A Pleader entitled to appear before a High Court Question:- the term business includes every lawful trade, occupation and profession. Answer:- TRUE Question:- consideration is also known as __________ consideration. Answer:- executory Question:- a company which is not a private company is Answer:- public company Question:- the consumer protection act makes available certain new remedies leaving the Answer:- Substantive rights of the consumer intact Question:- Substitution of a new contract in the place of the old one means ________. Answer:- notation Question:- the exceptions to the wagering agreement are Answer:- Cross-word competitions , Horse-race Question:- the company does not possess ________ Still it is a person in the eyes of law. Answer:- fundamental rights Question:- __________ is an invitation made to the ___________ Answer:- Prospectus ,public Question:- when the _________ of contract becomes ________ ,such contract need not be preformed Answer:- performance, impossible Question:- ________ is the ________ method of voting with the rule Answer:- poll, capitalistic Question:- following are the examples of statutory companies. Answer:- Reserve Bank Of India , Unit Trust Of India Question:- following person can not be called partners Answer:- minors , insolvents , co-owners without the agreement to carry on the business Question:- a commission agent is generally appointed for selling and buying goods on behalf of his principal Answer:- TRUE Question:- a agreement should be certain and unambiguous Answer:- TRUE Question:- in case of a public limited company, the maximum number has no limit ,but the minimum is fixed at. Answer:- 7 Question:- under _________ influence the dominant party may hold a real authority over the party. Answer:- undue Question:- there was a contract for sale of goods .delivery was to be given in October .owing to a strike in the port of loading ,the goods were not shipped until November .the buyers are entitled to Answer:- repudiate the contract, rescind the contract . Question:- the company having articles are Answer:- Unlimited companies , Limited by guarantee , Limited by shares Question:- section10 of the Indian contract act, 1872 applies to contract of sale. Answer:- TRUE Question:- Directors are a private company needed to file their consent with the registrar to act as director or sign an undertaking. Answer:- FALSE Question:- holding out means___________ leading another person to believe in something. Answer:- falsely Question:- railway or S.T. receipts, dividend, warrants, bonds are not negotiable instrument. Answer:- FALSE Question:- a consumer has the right to be assured, wherever possible, access to services at Answer:- competitive prices Question:- a sale is an executed contract whereas an agreement to sell is an executed contract. Answer:- TRUE Question:- articles of association contains. Answer:- regulations of the company , internal affairs of the company, conduct of company’s business Question:- fraud means and includes following act- Answer:- promise to deceive other party , promise without intending to perform Question:- in an agreement to sell the seller is responsible for all the risk of loss as he is the Answer:- owner Question:- consent is free when it is not caused by Answer:- undue influence , fraud , mistake Question:- following are the essential of undue influence Answer:- there must be some relationship between the parties , It is mainly of moral character Question:- members of a club or a society are the _________ of each other. Answer:- friend Question:- fact and law Answer:- the types of "mistake" Question:- an order of the court asking a person to do or abstain from doing a particular act, which is the subject matter of the contract Answer:- injection order Question:- an agreement enforceable by law Answer:- contract Question:- a________ is an artificial person and has a legal entity. Answer:- company Question:- any person who is of age of majority according to the law to which he is a subject, may……. An agent. Answer:- appoint Question:- the company cannot exceed the powers conferred on it by its memorandum Answer:- TRUE Question:- the articles of association controls ________ operations of the company Answer:- internal Question:- the memorandum of association is the most important document, it acts out Answer:- The constitution , The formation , The objectives Question:- When agents delegate their authority to another for a particular period for a particular task, they appoint substituted agents. Answer:- TRUE Question:- when the goods are very bulky in nature then they are delivered in a Answer:- symbolic manner Question:- agent appointed for a special task Answer:- special agent Question:- agency create by conduct of the parties Answer:- implied agency Question:- agency create by words, spoken, or written Answer:- express authority Question:- essentials of valid ratification Answer:- Existence of principal Question:- there are certain limitations to the principle of ratification which are Answer:- where the principal does not have full knowledge at the fact , where the act to be ratified is illegal or void , where the ratification is not done within a reasonable time Question:- a partnership at will can be dissolved by filling a suit for Answer:- dissolution Question:- the object of the consumer protection act of 1986 is to educate the people so that they canfind out _________for theirs grievances Answer:- legal remedies Question:- the ________ of 1986 is basically passed to protect the interest of the consumer. Answer:- Consumer Protection Act Question:- negotiable instruments recognized by usage are Answer:- handles ,S.T. receipts for goods , pay off orders Question:- which of the following is not a void agreement Answer:- agreement of marriage Question:- the particular partnership automatically comes to an end Answer:- on the completion of the venture , at the expiry of the fixed term Question:- following are the characteristics of partnership at will Answer:- partners are always free to break their relationship at their whim , it is for indefinite period Question:- a firm is a name given to the partners______ Answer:- collectively Question:- district forum enjoys revision jurisdiction. Answer:- false Question:- company can be registered with undesirable names. Answer:- FALSE Question:- a person who merely given an advice ton other person in matters of business , does not thereby becomes his agent. Answer:- TRUE Question:- an unregistered firm can institute a suit against Answer:- wrongful use of the trademark , wrongful use of the firm name Question:- consideration can not be a past consideration. Answer:- FALSE Question:- companies can be registered with undesirable names. Answer:- FALSE Question:- people purchasing the commodities for the purpose of trading is Answer:- trader Question:- a company is created by Answer:- law Question:- the relation of partnership arise from Answer:- contract Question:- the law relation to sale of immovable goods is contained in the sale of goods act, 1930 Answer:- FALSE Question:- a illegal agreements are _________ but ll void agreements are not illegal. Answer:- void Question:- under the Indian contract act a person of sound mind is the one capital of Answer:- Understanding the agreement, he is involved in Question:- Amendments made in the Consumer Protection Act in 2002: inclusion of services availed for commercial purposes from the purview of the consumer dispute redresser agencies Answer:- Provision for substitution of legal heir or representative as a party to the complainant in the event of the death of the opposite party , Provision for recovery of amounts ordered to be paid by consumer redresser agencies as arrears of land revenue , Provision for charging of fee in respect of complaints filed before the consumer reprisal agencies Question:- the term of central protection council is Answer:- Three years Question:- following persons cannot become a partners Answer:- Corporation , an alien enemy with an Indian subject , company Question:- when the certificate of incorporation is obtained, the promoters and of a ________company invite the public to subscribe to its shares. Answer:- public Question:- general agents are the persons who enjoy a general authority to do everything in the course of their agency. Answer:- TRUE Question:- Misrepresentation means and includes Answer:- positive assertion of that which is not true Question:- a consumer has the following rights Answer:- Education about the availability of legal remedies , seek redreesal against unfair trade practices , right to be informed quality, quantity, potency, purity, standard and price of goods Question:- cannot enter into partnership Answer:- two partnership firms Question:- giving due noticed Answer:- Dissolves partnership at will Question:- partnership deed Answer:- domicile of partnership firm Question:- not mandatory Answer:- registration of partnership Question:- partnership firm Answer:- Can be sued in its own name Question:- a company is created by law and not by natural birth. Answer:- TRUE Question:- advantage of crossing the sequel Answer:- To reduce the risk of unauthorized person to get the payment of such Cheque. , To safeguard the interest of bonfire holder of the coequal Question:- an agents is simply blank a ________ between his principal and the third party. Answer:- connecting link Question:- the partner who is illegally expelled Answer:- can claim re-instatement , can sue the firm for the refund of his share in the profits as well as profits Question:- which of the following is not a void agreement? Answer:- agreements relating to legal proceedings Question:- the feature of the contingent contracts is that they Answer:- depend upon the circumstances, which makes them valid or void Question:- the purpose of not negotiable crossing Answer:- to provide protection to the drawer of a cheque against loss or theft in the course of transit as well as dishonesty. , To safeguard the interest of bonfires holder of the cheque Question:- no company shall be registered by name which has a name which is identical with Answer:- The name by which a company is in existence , A registered trade mark , A trade mark which is subject of an application for registration Question:- competent parties means parties should be Answer:- major in age Question:- essence of contract of sale is Answer:- sale of goods Question:- partnership have to be Answer:- competent Question:- following are the conditions needed to prove an act of an act of a partnership firm Answer:- such a act be done in a ordinary course of a partnership firm , it must be related to the business of the firm , act must have been done in the name and on behalf of the firm 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 Answer:- Company Question:- in case of damages to the goods by a third party, only Answer:- owner can take action Question:- the company law board may, at any time, by order, extend the time for the filing of documents. Answer:- TRUE Question:- the writing of "negotiable" is one and the same thing as that of special crossing. Answer:- FALSE Question:- the legal heir or representatives of a dead consumer is given the right to become the complainant. Answer:- TRUE Question:- according to proofs. hennery. "partnerships is the relating existing between persons competent to make contracts who agree to carry on a_______" Answer:- lawful business is common with a view to private gain. Question:- the ingredients of the proposal are Answer:- communication by one to another , to do or to abstain from doing something , the object should be to take assent of another Question:- existing may be further classified as Answer:- specific goods Question:- following persons can perform the contracts. Answer:- promissory , agent , legal representative Question:- a proposal Answer:- may be revoked at any time , may be revoked before the communication of acceptance is complete , should be complete against the proposes
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