AIMA Assignment Business Law GM06

AIMA Fourth Semster Assignments

Business Law & Corporate Governance (GM06)

NOTE: The answers are boldly marked.

Question 1:- A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property:     

a)   for a price                       

b)   in goods                       

c)   in goods to the buyer for a price               

d)   none of the options provided                       

Question 2:- According to Section 2(7) of Sale of Goods, ‘goods’ means:               

a)   every kind of movable property,                       

b)   property other than actionable claims and money                        

c)   every kind of property                       

d)   every kind of movable property, other than actionable claims and money                       

Question 3:- The goods which form the subject of a contract of sale:      

a)   may be either existing goods, owned or possessed by the seller, or future goods.                       

b)   are goods which are owned or possessed by the seller                       

c)   are existing goods only                       

d)   none of the options provided                       

Question 4:- where trees are sold to be cut and then taken away by the buyer;

a)   that will be a contract for sale of immovable property.                       

b)   that will be a contract for sale of movable property.                        

c)   that will be a contract of existing goods                       

d)   that will be a contract of future goods                       

Question 5:- A contract of sale may be made:    

a)   in writing                       

b)   by word of mouth,                       

c)   may be implied from the conduct of the parties.                       

d)   all options are correct                       

Question 6:- where the transfer of the property in the goods is to take place at a future time, the contract is called:       

a)   sale                       

b)   an agreement to sell.                       

c)   provisional sale                       

d)   conditional sale                       

Question 7:- A stipulation collateral to the main purpose of the contract of sale of goods, is called:           

a)   a condition                       

b)   warranty                       

c)   guarantee                        

d)   stipulation                       

Question 8:- In a contract of sale of goods, Breach of a condition gives the aggrieved party right to:         

a)   repudiate the contract                       

b)   claim damages                       

c)   repudiate the contract and also claim damages                       

d)   none of the options provided                       

Question 9:- The implied conditions, in a sale by sample include:              

a)   The bulk shall correspond with the sample in quality                        

b)   The buyer shall have a reasonable opportunity of comparing the bulk with the sample                       

c)   The goods shall be free from any defects rendering them un-merchantable, which would not be apparent on reasonable examination of the sample.                       

d)   all points given as option A, B and C                       

Question 10:- In a contract for sale of goods, Buyer may have an action, in respect of physical injuries caused by defect in the goods;         

a)   against the manufacturer                       

b)   against the dealer                       

c)   aginast the dealer as also the manufacturer                       

d)   none of the options is correct                       

Question 11:- In a contract for sale of goods, When the seller is bound to weigh, measure, test or do some other act for ascertaining the price, the property in the goods:            

a)   passes at the time of agreement                       

b)   passes at the time of payment                       

c)   does not pass until such act is done and the buyer has a notice of it.                       

d)   does not pass until a fresh agreement is made                       

Question 12:- The maxim is “nemo det quod non habet” which means that:       

a)   no one can be the owner unless he makes payment                       

b)   no one can give what he has not got.                       

c)   no one can get title of goods unless given in writing                       

d)   giving is better than taking                       

Question 13:- The fundamental principle of the law on sale of goods is, that:      

a)   the seller is bound to point out defects of his goods                       

b)   The seller is not bound to point out defects of his own goods.                       

c)   the buyer must inspect the goods to find out if they will suit his purpose.                       

d)   both options at B and C are correct                       

Question 14:- ‘Negotiable’ means transferable. In the case of a negotiable instrument Negotiation can take place from one person to another:         

a)   by mere delivery or by endorsement and delivery.                       

b)   only by endorsement and delivery.                       

c)   all negotiable instruments cannot be negotiated                       

d)   negotiation of a negotiable instrument cannot take place by mere delivery                       

Question 15:- A promissory note, bill of exchange or cheque is payable to bearer which is:          

a)   expressed to be so payable                       

b)   on which the only endorsement is an endorsement in blank.                       

c)   on which the last endorsement is an endorsement in blank.                       

d)   expressed to be so payable or on which the only or last endorsement is an endorsement in blank.                       

Question 16:- Money orders; Postal orders; Fixed Deposit receipts; share certificates; Letters of Credit are examples of:               

a)   Negotiable Instruments                       

b)   Non-negotiable instruments                       

c)   some of these are negotiable instruments while others are not                       

d)   none of given options is correct                       

Question 17:- bills of lading; dock warrants; railway receipts and wharfinger certificates are examples of:             

a)   negotiable Instruments                       

b)   non-negotiable instruments                       

c)   quasi- negotiable instruments                        

d)   none of the options                       

Question 18:- A Bill of Exchange, not payable on demand, is entitled to get:        

a)   3 days grace period.                       

b)   7 days of grace period                       

c)   grace period only if the maturity fals due on a bank holiday                       

d)   none of the options                       

Question 19:- An accommodation bill is not supported by consideration or a trading transaction. It is drawn with the object of providing financial help either to drawer or to both drawer and the drawee. Which of the options is true in case of an accommodation bill?     

a)   An accommodation bill creates no obligation of payment between the parties to the transaction.                        

b)   The accommodation party is liable on the bill to any subsequent ‘holder for value’.                       

c)   both option A and B are correct                       

d)   none of the given options is correct                       

Question 20:- Section 31 of Reserve Bank of India, Act overrides the Negotiable Instruments Act. which of the options mentions the provisions of the Section 31 0f RBI Act?    

a)   No person in India, other than RBI or the Central Government can make or issue a promissory note “payable to bearer”. No person in India other than RBI or the Central Government can draw or accept a bill of exchange ‘payable to bearer on demand’.                       

b)   A cheque ‘payable to bearer on demand’ can be drawn on a person’s account with the banker.                       

c)   both the options A and B are correct                       

d)   none of the given options is correct                       

Question 21:- which of the options is correct in respect of a negotiable instrument bearing "NOT NEGOTIABLE" crossing?               

a)   mean that the cheque is not transferable                       

b)   It is still transferable, but the transferee cannot get title better than what transferor had.                       

c)   cheque will be credited only after verification from the drawer                       

d)   banker is required to keep a separate record of such instruments                       

Question 22:- In case of dishonor of a negotiable instrument, notice is required to be given to: 

a)   drawer only                       

b)   all earlier endorsees.                       

c)   drawer and all earlier endorsees.                       

d)   all options are correct                       

Question 23:- Where a person receives a negotiable instrument without consideration, he may be:        

a)   called ‘holder in due course’.                       

b)   a holder                       

c)   beneficiary                        

d)   assignee                       

Question 24:- If a cheque is dishonored for insufficiency of funds, the penalty can be up to:       

a)   two years imprisonment or fine up to twice the amount of cheque or both.                       

b)   no imprisonment but fine up to twice the amount of cheque                       

c)   three years imprisonment or fine up to twice the amount of cheque or both.                       

d)   two years imprisonment or fine up to five times the amount of cheque or both.                       

Question 25:- Company is called a legal person or and artificial person, it implies that:     

a)   is not a human being.                       

b)   It is created with the sanction of law, and is clothed with certain rights and obligations                       

c)   company cannot file a suit in a court of law                       

d)   Only options A and B are correct                       

Question 26:- In case of a dishonest and fraudulent use of the facility of incorporation, the law lifts the corporate veil. What does this phrase mean?               

a)   company is not a legal person                       

b)   company will be managed by Board of Directors appointed by the Government                       

c)   The law will identify the persons who are behind the scene for perpetration of fraud.                       

d)   none of the options is correct                       

Question 27:- under the Companies Act 1956, contracts entered into by public company after obtaining the certificate of incorporation, but before getting the certificate to commence business are termed as:

a)   pre-incorporation contracts                       

b)   Provisional contracts                       

c)   preliminary agreements                       

d)   contracts at arm's length                       

Question 28:- The articles of a company contain:

a)   the regulations for management of the company                       

b)   the objects for which the company is proposed to be incorporated                       

c)   the State in which the registered office of the company is to be situated;                       

d)   all options are correct                        

Question 29:- Any transaction which is outside the scope of the powers specified in the objects clause of the Memorandum:

a)   requires prior sanction of the central government                       

b)   must be informed to the members in the annual report                       

c)   is ultra-vires the company and therefore void                       

d)   requires unanimous consent of the Board of Directors                       

Question 30:- Every person dealing with the company is presumed to have read The Memorandum and Articles and understood them in their true perspective. This is known as Doctrine of:             

a)   indoor management                       

b)   Constructive Notice                       

c)   Ultra vires                        

d)   Caveat Emptor