Business Law MCQ Questions and Answers Part – 2

Business Law MCQ Questions and Answers Part – 1

Business Law MCQ Questions and Answers Part – 2

Business Law MCQ Questions and Answers Part – 3

51. The main objective of a contract of sale is _____________
A. Transfer of possession of goods.
B. Transfer of property in goods.
C. Delivery of goods.
D. Payment of price.
ANSWER: B
52. Risk follows ownership__________
A. Only when goods have been delivered.
B. Only when price has been paid.
C. Whether delivery has been made or not.
D. Even when price has not been paid.
ANSWER: A
53. In an agreement to sell, the seller gets for price if________
A. The goods have been delivered to the buyer.
B. The goods have not been delivered to the buyer.
C. There is specific agreement.
D. It is not a specific agreement.
ANSWER: C
54. In a contract of sale, unless goods are ascertained, there is______________
A. A sale.
B. An agreement to sell.
C. A void agreement.
D. An unenforceable agreement.
ANSWER: B
55. Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when_______________
A. The goods are delivered to the buyer.
B. The price is paid by the buyer.
C. The contract is made.
D. The buyer accepts the good.
ANSWER: C
56. If the contract is silent as to the party who is to appropriate the goods__________
A. The buyer is to appropriate
B. Goods seller is to be appropriate.
C. The party who under the contract is first to act is to appropriate.
D. Any party may appropriate.
ANSWER: C
57. In a C.I.F., contract the property in goods passes from the seller to the buyer when the______________
A. Goods are shipped
B. Goods are received by the buyer
C. Contract is entered into.
D. Price is paid.
ANSWER: A
58. There is a constructive delivery of goods_____________
A. a. When the seller hands over to the buyer the key of the warehouse where the goods are lying.
B. a. Where a third person in possession of the goods acknowledged to the buyer that he holds them on his behalf
C. When the seller physically delivers the goods to the buyers.
D. When the seller asks the buyer to take delivery of the goods.
ANSWER: B
59. The contractual capacity of a company is regulated by_____________.
A. its memorandum of association and the provision of the companies act, 1956.
B. the terms of contract entered into with a third party.
C. its article of association.
D. its prospectus.
ANSWER: A
60. A seller delivers goods in excess of the quantity ordered for. The buyer may_________
A. Accept the whole
B. Rejects the whole.
C. Accept the goods ordered for and return the excess.
D. Accept the part of goods.
ANSWER: A
61. The sale of goods act was enacted during
A. 1930.
B. 1931.
C. c1932.
D. 1933
ANSWER: A
62. A contract of sale may be __________.
A. absolute only.
B. condition only.
C. absolute and conditional.
D. indemnity.
ANSWER: C
63. The term goods exclude_________.
A. stock and shares.
B. growing crops.
C. actionable claim.
D. services.
ANSWER: C
64. Which of the following is not an implied condition in a contract of sale _________.
A. Condition as to title.
B. Condition as to description
C. Condition as to freedom from the encumbrance.
D. Condition as to a sample
ANSWER: C
65. Gives the buyer only a right to claim damages is known as___________.
A. condition.
B. guarantee.
C. warranty.
D. indemnity.
ANSWER: C
66. In a hire purchase agreement, the hirer ____________.
A. has an option to buy the goods.
B. must but the goods.
C. must return the goods.
D. is not given the possession of the goods
ANSWER: A
67. A contract for the sale of furniture goods is_____________.
A. sale.
B. agreement to sell.
C. void.
D. voidable.
ANSWER: B
68. The term, goods for the purpose of sale of goods act, does not include _________.
A. money.
B. actionable claims.
C. immovable property.
D. all of these.
ANSWER: B
69. The sale of goods act, 1930 deals with_________.
A. movable goods only.
B. immovable goods only.
C. both movable and immovable goods
D. all goods except ornaments.
ANSWER: A
70. An unpaid seller has not given notice of resale to the buyer. On the resale there is a loss____________.
A. the unpaid seller can recover it from the buyer.
B. the unpaid seller cannot recover it from the buyer
C. the buyer can recover it from an unpaid seller.
D. the buyer must compensate the unpaid seller.
ANSWER: B
71. If the goods are rejected by the buyer and the carrier or the bailee continuous to be in possession of them the transit ________.
A. is deemed to be an end.
B. is not deemed to be an end.
C. commences.
D. not yet commences.
ANSWER: B
72. An unpaid seller can excise the right of stoppage in transit when the carrier holds the goods ____________.
A. as sellers agent.
B. as buyer s agent.
C. as agent of both of them.
D. in his own name.
ANSWER: D
73. The right of lien excised by an unpaid seller is to ___________.
A. retain possession.
B. regain possession.
C. recovery price and other charges.
D. Damages.
ANSWER: A
74. An unpaid seller can excises his rights of lien ___________.
A. where the goods have been sold on credit and terms of credit has not expired
B. where the buyer has not become insolvent.
C. for the price of the goods.
D. for the price of the goods and expenses.
ANSWER: C
75. The lien of an unpaid seller depends on _____________.
A. possession.
B. title.
C. ownership.
D. possession and ownership.
ANSWER: A
76. Where the neglected or refusal of the buyer to take delivery of goods amounts to a repudiation of the
contract, the seller may sue for the __________.
A. price of damages.
B. price only.
C. damages only.
D. both for price and damages.
ANSWER: A
77. A seller delivers goods in excess of the quantity ordered for. The buyer may_______.
A. accept the whole.
B. reject the whole.
C. accept the goods ordered for and returns.
D. accept the part of goods.
ANSWER: A
78. Unless otherwise agreed, where goods are sent by the seller to the buyer by a route involving a sea transit of the seller____
A. must inform the buyer in time to get the goods insured
B. may insure the goods.
C. must insure the goods.
D. no need to insure the goods.
ANSWER: A
79. When there is n specific agreement as to place, the goods sold are to be delivered at the place__________.
A. at which they are at the time of sale.
B. of the buyer.
C. decide by the seller.
D. to be determined by the seller.
ANSWER: A
80. There is a constrictive delivery of goods ___________.
A. when the seller hands over to the buyer to the key of warehouse where the goods are lying
B. where a third person in possession of the goods acknowledgement to the buyer that he holds them on his behalf.
C. when the seller physically delivers the goods
D. possession and ownership
ANSWER: B
81. Where there is a contract for the sale of unascertained goods, the property in goods___________.
A. passes when the buyer pays the price.
B. does not pass until the goods are ascertained .
C. when the contract is entered into.
D. when the buyer accepts the goods.
ANSWER: B
82. where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when________.
A. the goods are delivered to the buyer.
B. the price is paid by the buyer.
C. the contract is made.
D. the buyer accepts the goods.
ANSWER: C
83. In an agreement to sell, the seller can sue for price if_____________.
A. the goods have been delivered to the buyer.
B. the goods have not been delivered to the buyer.
C. there is a specific agreement.
D. there is a general agreement.
ANSWER: C
84. Risk follows ownership ___________.
A. only when goods have been delivered .
B. only when price has been paid.
C. whether delivery has been made or not.
D. even when the price has not been paid.
ANSWER: C
85. How many parties are there to a Promissory note?
A. Two parties
B. one party
C. four parties
D. five parties
ANSWER: C
86. The main objective of a contract of sale is ______________.
A. transfer of possession of goods.
B. transfer of property in goods from seller to buyer.
C. delivery of goods.
D. Payment of price.
ANSWER: B
87. Public Law is divided into ________ categories?
A. three
B. four
C. two
D. none of these
ANSWER: B
88. In the case of breach of a warranty, the buyers can __________.
A. repudiate the contract.
B. claim damage only.
C. refuses to pay the price.
D. refuses to take the delivery of the goods.
ANSWER: B
89. 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 the contract of sale.
C. collateral to the main purpose of contract of sale .
D. additional security.
ANSWER: A
90. In a sale, there is an implied condition on the part of the seller that he __________.
A. Has right to sell the goods.
B. Is in position of the goods.
C. Will have the right to sell.
D. Has the right to sell the goods
ANSWER: A
91. If 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
92. The doctrine of caveat emptor applies______________
A. When the buyer does not intimate the purpose to the seller and depends upon his own skill and judgment
B. In case of implied conditions and warranties.
C. When goods are sold by sample.
D. When goods are sold by description.
ANSWER: B
93. 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
94. 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
95. 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
96. In a sale, the property in goods_____________________
A. Is transferred to the buyer.
B. Maybe transferred at a future time.
C. Is transferred when the buyer pays the price.
D. b. Is transferred when goods are delivered to the buyer.
ANSWER: A
97. 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
98. A bailee fails to return the goods according to the bailers direction. He takes reasonable care of the goods but still the goods are lost. The loss will fall on____________________
A. the bailee
B. the bailer
C. on both of them
D. neither of them
ANSWER: A
99. If the goods of the bailer get missed up with the like goods of the bailer by the act of god, the mixture belongs to the bailer and the bailer in proportion to their shares but the cost of separation will have to be borne by_____________
A. the bailee
B. the bailer
C. both of them in proportion to the value of their goods
D. Third party
ANSWER: A
100. 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