Business Law MCQ Questions and Answers Part – 1

Business Law MCQ Questions and Answers Part – 1

Business Law MCQ Questions and Answers Part – 2

Business Law MCQ Questions and Answers Part – 3

1. A letter of acceptance sufficiently stamped a duly addressed is put into a course of transmission. There is ____________
A. a contract voidable at the option of acceptor
B. contract voidable at the option of offerer
C. a voidable contract.
D. no contract at all.
ANSWER: C
2. Acceptance may be revoked by the acceptor _____________.
A. before the letter of acceptance reaches the offerer.
B. at any time
C. after the letter of acceptance reaches the offerer.
D. before the death of acceptor.
ANSWER: A
3. An advertisement to sell a thing by auction is _____________.
A. an invitation to offer.
B. an offer.
C. no offer at all.
D. a contract
ANSWER: A
4. On the face of the ticket for a journey the words for conditions see back are printed in a small print. The passenger _____________.
A. is bound by the conditions whether he takes care to read them or not.
B. is not bound by the conditions
C. may not take note of the conditions.
D. . may take note of the conditions.
ANSWER: A
5. Consideration must move at the desire of _____________.
A. the promisee
B. the promisor
C. promisor or any third party
D. both the promisor and the promise
ANSWER: B
6. Consideration _____________.
A. must move from the promise.
B. may move from the promisee or any other person
C. may from the third party.
D. may move form the promisor.
ANSWER: B
7. An agreement not enforceable by law is said to _____________.
A. voidable.
B. void.
C. valid.
D. unenforceable.
ANSWER: B
8. A contract is _____________.
A. an agreement plus a legal obligation
B. legal obligation.
C. consensus ad idem.
D. an agreement plus a legal object.
ANSWER: A
9. A specific offer can be accepted by ______
A. any person.
B. any friend of offered.
C. any friend of offeree.
D. a person to whom it is made.
ANSWER: D
10. A person who is not a party to contract _____________.
A. cannot sue.
B. can sue.
C. can sue only in well- recognized cases.
D. can sue under contract of guarantee.
ANSWER: C
11. An agreement made without consideration is _____________.
A. valid.
B. illegal.
C. voidable.
D. void.
ANSWER: D
12. A person is usually of unsound mind, but occasionally of sound mind_____________.
A. he may enter into a contract when he is of sound mind.
B. he may not make a contract when even when he is of sound mind.
C. he cannot enter into a contract at all.
D. he can enter all the time.
ANSWER: A
13. A contract by an idiot is_____________.
A. voidable.
B. enforceable.
C. void ab initio
D. invalid.
ANSWER: C
14. Where consent is caused by fraud or misrepresentation, the contract is
A. voidable at the option of the aggrieved party
B. void.
C. unenforceable.
D. not affected in any manner.
ANSWER: A
15. Consent given to a contract under some misrepresentation by the other party makes the contract_____________.
A. void.
B. invalid.
C. unenforceable.
D. . voidable.
ANSWER: D
16. Fraud exists when it is shown that a false representation had been made_____________.
A. knowingly.
B. unknowingly.
C. unintentionally.
D. recklessly, not caring whether true or false.
ANSWER: A
17. Which of the relationships raise presumption of undue influence _____
A. landlord and tenant
B. parents and child.
C. doctor and patient.
D. husband and wife.
ANSWER: B
18. If there is error in causal, the contract is _____________.
A. void.
B. voidable.
C. valid.
D. illegal.
ANSWER: B
19. The collateral transaction to an illegal agreement are_________.
A. void.
B. illegal.
C. voidable.
D. not affected at all.
ANSWER: B
20. An agreement made with an alien enemy is _________.
A. unlawful on the ground of public policy.
B. unlawful because it becomes difficult to be performed.
C. valid.
D. voidable.
ANSWER: A
21. In which year IRDA Act passed in __________
A. 1999
B. 2000
C. 2001
D. 2002
ANSWER: A
22. When the promisee refuses to accept performance from the promiser who offers to perform, it is
A. attempted performance
B. vicarious performance
C. tender.
D. frustration of contract
ANSWER: A
23. When a party to a contract transfers his contractual rights to another, it is known as ________.
A. rescission of contract
B. waiver of contract.
C. discharge of contract.
D. assignment of contract
ANSWER: D
24. Assignment by operation of law takes place_______________.
A. . by the mutual consent of the parties.
B. by the will of either party.
C. when the subject matter of a contract cases to exist.
D. by the death of a party to a contract.
ANSWER: D
25. A who ooze 10,000 to B dies living and estate of Rs 6,000. The legal representatives of A are _______________.
A. liable for rs 10,000
B. liable for rs 6,000.
C. no liable at all.
D. liable for Rs 3,000.
ANSWER: B
26. If a contract contains an undertaking to perform impossibility, the contract is __________.
A. void ab initio.
B. void.
C. voidable at the option of the plaintiff.
D. illegal.
ANSWER: A
27. An agreement to do an act impossible in itself__________.
A. is void.
B. is voidable.
C. is void ab initial.
D. becomes void when impossibility is discovered.
ANSWER: A
28. Were a contact could not be performed because of the default by a third party on whose work the promiser relied, it ______________.
A. it is not discharged.
B. is discharged.
C. becomes void.
D. becomes voidable.
ANSWER: A
29. The Head Quarters of IRDA in which place ________
A. Chennai
B. Delhi
C. Coimbatore
D. Bangalore
ANSWER: B
30. Specific performance may be ordered by the court when ______________.
A. . the contract is voidable
B. the damages are an adequate remedy
C. the damages are not an adequate remedy.
D. the contract is uncertain.
ANSWER: C
31. The measure of damages in case of breach of a contract is the difference between the
_______________.
A. contract price and the market price at the date of breach.
B. contract price when the maximum market price during the terms of the contract.
C. contract and the price at which the plane tiff might have sold the goods.
D. contract price and the price fixed by the court. Answer: A
ANSWER: A
32. Anticipatory breach of a contract takes place _____________
A. During the performance of the contract
B. At the time when the performance is due
C. Before the performance is due
D. At the time when the contract is entered into
ANSWER: C
33. In case of wrongful dishonour of a cherub by a banker having sufficient fund to the credit of the customer, the court nay award
A. Ordinary damage
B. Nominal damage
C. Exemplary damage
D. Contemptuous damages
ANSWER: C
34. The contract of indemnity is a _____________
A. Contingent contract
B. Wagering contract
C. Quasi-contract
D. Void agreement
ANSWER: A
35. S and P go into a shop. S says to the shopkeeper, C let P have the goods, and if he does not pay you, I will. This is a __________
A. contract of guarantee
B. contract of indemnity.
C. Wagering contract
D. Quasi-contract
ANSWER: A
36. A bailer is a _________
A. a right of a particular lien over the goods bailed
B. a right of generation
C. a right of both particular and general lien
D. no lien at all over the goods bailed
ANSWER: A
37. The position of a finder of lost goods is that of a ______________
A. Bailer
B. Bailee
C. Surety
D. Principal debtors
ANSWER: A
38. The gratuitous bailer is liable to the bailer for the defects in the goods bailed_______________
A. Even if he is not aware of them
B. Only if he is aware of them
C. In all cases of loss
D. In certain case of loss
ANSWER: B
39. A who purchases certain goods from B by a misrepresentation pledges them with C . the pledge is _________________
A. valid
B. void
C. voidable
D. invalid
ANSWER: B
40. In a sale, the property in goods_______________
A. Is transferred to the buyer.
B. Is yet to be transferred to the buyers.
C. May be transferred at a future time.
D. Is transferred when goods are delivered to the buyer.
ANSWER: A
41. In a sale, if the goods are destroyed, the loss falls on________________
A. The buyer.
B. The seller.
C. Partly on the buyer and partly on the seller.
D. The seller if price has not been paid.
ANSWER: A
42. The term property as used in the Sale of Goods Act, 1930 means_____________
A. Possession.
B. Ownership.
C. Ownership and possession both.
D. the subject matter of contract of sale.
ANSWER: B
43. If a price is not determined by the parties in a contract of sale, the buyer is bound to
pay________________
A. The price demanded by the seller.
B. A reasonable price.
C. The price which the buyer thinks is reasonable.
D. The price to be determined by a third independent person.
ANSWER: B
44. The doctrine of caveat emptor applies______________
A. In case of implied conditions and warranties
B. When the buyer does not intimate the purpose to the seller and depends upon his own skill and judgment.
C. When goods are sold by sample.
D. When goods are sold by description.
ANSWER: A
45. If a sale is by sample as well as by description, the implied condition is that the goods shall correspond
with_______________
A. Sample.
B. Description.
C. Both sample and description.
D. Either sample or description.
ANSWER: C
46. In a sale, there is an implied condition on the part of the seller that he______________
A. Has a right to sell the goods.
B. Is in possession of the goods.
C. Will have the right to sell.
D. Will acquire the goods.
ANSWER: A
47. A condition is a stipulation which is__________
A. Essential to the main purpose of contract of sale.
B. Not essential to the main purpose of contract of sale.
C. Collateral to the main purpose of contract of sale.
D. Not mandatory.
ANSWER: A
48. In case of breach of a warranty, the buyer can__________
A. Cannot return the goods.
B. Repudiate the contract.
C. Return the goods.
D. Refuse to pay the price.
ANSWER: B
49. Insurance act was established_____________
A. 1938
B. 1939
C. 1940
D. 1941
ANSWER: A
50. Life insurance act was established ___________
A. 1956
B. 1957
C. 1958
D. 1940
ANSWER: A

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Author and Assistant Professor in Finance, Ardent fan of Arsenal FC. Always believe "The only good is knowledge and the only evil is ignorance - Socrates"