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
