Legal Aspects of Business MCQ Questions and Answers Part – 1

Legal Aspects of Business MCQ Questions and Answers Part – 1

Legal Aspects of Business MCQ Questions and Answers Part – 2

Legal Aspects of Business MCQ Questions and Answers Part – 3

1. Contract=Agreement + ________
A. enforceability by law
B. rules
C. clauses
D. None of the above
ANSWER: A
2. An agreement to do an impossible act
A. legal
B. void
C. voidable
D. illegal
ANSWER: B
3. An advertisement to sell a thing by auction is _____________.
A. an offer.
B. an invitation to offer.
C. no offer at all.
D. a contract.
ANSWER: B
4. a wagering agreement is _______.
A. immoral
B. forbidden by law
C. opposed to public policy
D. Legal prohibition
ANSWER: B
5. A contract of guarantee should be _______.
A. oral
B. written
C. oral or written
D. none of the above
ANSWER: C
6. Which the following strikes only at document and not transactions?
A. The Transfer of Property Act, 1882
B. The Registration Act, 1908
C. both (A) and (B)
D. None of these
ANSWER: C
7. The offer may be communicated _____________.
A. orally
B. By conduct only
C. By a written mode
D. All the above
ANSWER: D
8. Which of the following is indicated by the abbreviation Ltd at the end of a company’s name?
A. The shares are not transferable
B. The shares may not be offered to the public
C. The shares are freely transferable on the stock exchange
D. None of the above
ANSWER: B
9. Agreement=offer+ _______.
A. acceptance
B. rules
C. clause
D. validity
ANSWER: A
10. A written ordinary resolution requires the approval of which of the following?
A. More than 50% of those actually voting
B. More than 50% of those entitled to vote
C. Unanimous approval of those entitled to vote
D. All of the above
ANSWER: A
11. A sub-bailee is a person to whom the actual possession of goods is transferred by someone
A. who is himself not an owner of goods
B. who has a present right to possession of them as bailee of the owner
C. both (A) and (B)
D. None of these
ANSWER: C
12. A contract creates_____________.
A. rights in personam.
B. rights in rem.
C. only rights no obligations.
D. only obligations and no rights.
ANSWER: B
13. A supplies B, a lunatic, with necessaries suitable to his condition in life.
A. A is entitled to be reimbursed from Bs property
B. A is not entitled to be reimbursed from Bs property
C. A is entitled to be given a share in Bs property
D. None of these
ANSWER: A
14. An agreement not enforceable by law is said to _____________.
A. void.
B. voidable.
C. valid.
D. unenforceable.
ANSWER: A
15. Which parties are bound by the terms of the tender when one party submits a tender?
A. The person submitting the tender
B. The person requesting the tender
C. Neither party
D. Both parties
ANSWER: A
16. In the context of contract law, a bid at an auction is which of the following?
A. An invitation to treat
B. An acceptance
C. A counter-offer
D. An offer
ANSWER: D
17. A supplies the wife and children of B, a lunatic, with necessaries suitable to their condition in life.
A. A is entitled to be reimbursed from B’s property
B. A is not entitled to be reimbursed from B’s property
C. A is entitled to be given a share in B’s property
D. None of these
ANSWER: A
18. For necessaries of life _____________.
A. A minor is liable
B. A minor’s estate is liable
C. The guardian is liable
D. All the above
ANSWER: B
19. What is the effect of a finding of contributory negligence in the law of tort?
A. It removes the requirement to pay damages
B. It reverses the payment of damages
C. It decreases the level of damages
D. All the above
ANSWER: C
20. A specific offer can be accepted by _____________.
A. any person.
B. any friend of offered.
C. a person to whom it is made.
D. any friend of offeree.
ANSWER: C
21. Consideration _____________.
A. money
B. money worth
C. promise
D. all the above
ANSWER: D
22. Consideration must be something which the promisor _____________.
A. is already bound to do.
B. is not already bound to do.
C. may voluntarily do.
D. must not do.
ANSWER: B
23. A supports B’s infant son. B promise to pay A’s expenses in so doing
A. This is not a contract
B. This is a contract
C. either (A) or (B)
D. None of these
ANSWER: B
24. A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own.
A. He is not bound to pay A for them
B. He is bound to pay partially A for them
C. He is bound to pay A for them
D. None of these
ANSWER: C
25. A contracts to pay B a sum of money when B marries C. C dies without being married to B.
A. The contract still can be forced
B. The contract becomes void
C. Either (A) or (B)
D. None of these
ANSWER: B
26. Contributory negligence arises as a result of the fault of which of the following?
A. A third party
B. The respondent
C. The claimant
D. None of the above
ANSWER: C
27. An agreement made without consideration is _____________.
A. valid.
B. illegal.
C. voidable.
D. void.
ANSWER: D
28. A promise to subscribe to a charity. The promise is a _____________.
A. voidable contract.
B. void agreement.
C. void contract.
D. valid contract.
ANSWER: C
29. A contracts to take in cargo for B at a foreign port. A’s Government afterwards declares war against the
country in which the port is situated.
A. The contract cannot become void when war is declared
B. The contract becomes partly void when war is declared
C. The contract becomes void when war is declared
D. None of these
ANSWER: C
30. On attainting the age of majority a minors agreement _____________.
A. can be ratified by him.
B. cannot be ratified by him.
C. becomes void.
D. becomes valid.
ANSWER: B
31. Breach of which of the following terms does NOT allow the possibility of the aggrieved party terminating
the contract?
A. A condition
B. An innominate term
C. A warranty
D. All the above
ANSWER: C
32. Which of the following, in the context of entering into a contract, constitutes a binding offer to sell a
unique item of furniture?
A. Placing an advert in a newspaper with a price attached
B. Placing it on display inside a shop with a price attached
C. Telling someone the price you may be willing to accept for it
D. Telling someone you will reduce the marked price on it by 10%
ANSWER: D
33. Abe issued an invitation to tender for a contract and Bea submitted her terms. Which of the following
statements is accurate?
A. Abe made an offer and Bea made a counter-offer
B. Abe made an offer which Bea accepted
C. Both Abe and Bea made invitations to treat
D. Abe made an invitation to treat and Bea made an offer
ANSWER: D
34. A contract by an idiot is_____________.
A. voidable.
B. enforceable.
C. invalid.
D. void ab initio.
ANSWER: D
35. A desires B, who owes him Rs. 100, to send him a note for Rs. 100 by post.
A. The debt is discharged only when A receives the due amount
B. The debt is discharged as soon as B puts into the post a letter containing the note duly addressed to A
C. Either (A) or (B)
D. None of these
ANSWER: B
36. A fraudulently informs B that A’s estate is free from encumbrance. B thereupon buys the estate. The estate is subject to a mortgage.
A. B may avoid the contract
B. B may insist on its being carried out, and the mortgage- debt redeemed
C. Either (A) or (B)
D. None of these
ANSWER: C
37. A gives a recognizance binding him in a penalty of Rs. 500 to appear in Court on a certain day. He forfeits his recognizance.
A. He is not liable to pay the penalty
B. He is liable to pay the penalty
C. He is liable to partially pay the penalty
D. None of these
ANSWER: B
38. A having advanced money to his son, B, during his minority, upon B’s coming of age obtains, by misuse of parental influence, a bond from B for a greater amount than the sum due in respect of the advance.
A. A did not employ undue influence
B. A employs undue influence
C. Either (A) or (B)
D. Either (A) or (B)
ANSWER: B
39. A hires a horse in Calcutta from B expressly to march to Benaras. A rides with due care, but marches to Cuttack instead. The horse accidentally falls and is injured.
A. A is not liable to make compensation to B for the injury to the horse
B. A is partially liable to make compensation to B for the injury to the horse
C. A is liable to make compensation to B for the injury to the horse
D. None of these
ANSWER: C
40. Which of the following is not a type of cybercrime?
A. data theft
B. stalking
C. hacking
D. antivirus
ANSWER: D
41. Which of the following statements relating to limited liability partnerships is correct?
A. They are limited to a maximum of 20 members
B. They must have a minimum of two members
C. They must have at least one unlimited member
D. All the above
ANSWER: B
42. Cyber-crime can be categorized into ________ types.
A. 2
B. 3
C. 4
D. 5
ANSWER: A
43. Which of the following is not a type of peer-to-peer cyber-crime?
A. phishing
B. trojans
C. MitM
D. credit card leak
ANSWER: D
44. In the context of the law of agency, an agent will NOT be liable for a contract in which of the following instances?
A. Where the agent fails to disclose that they are acting as such
B. Where the agent intends to take the benefit of the contract and does not disclose they are acting as an agent
C. Where the agent acts on their own behalf although claiming to be an agent
D. None of the above
ANSWER: A
45. Which of the following is not an example of a computer as weapon cyber-crime?
A. Credit card fraudulent
B. Spying someone using keylogger
C. IPR Violation
D. Pornography
ANSWER: B
46. Which of the following can be accepted so as to form a binding contract?
A. A supply of information
B. A quotation of price
C. A statement of intent
D. An agreement to enter into a future contract
ANSWER: B
47. Contracts are legally enforceable agreements. Which of the following statements regarding contractual agreements is true?
A. They must be in writing
B. They must be evidenced in writing
C. They need not be in writing
D. None of the above
ANSWER: C
48. Which of the following is not done by cybercriminals?
A. Unauthorized account access
B. Mass attack using Trojans as botnets
C. Email spoofing and spamming
D. Report vulnerability in any system
ANSWER: D
49. Which of the following statements in relation to the issuing of bills of lading is true?
A. Risk passes to the shipper
B. Risk remains with the seller
C. Risk passes to the carrier
D. Risk passes to the buyer
ANSWER: D
50. What is the name of the IT law that India is having in the Indian legislature?
A. India’s Technology (IT) Act, 2000
B. India’s Digital Information Technology (DIT) Act, 2000
C. India’s Information Technology (IT) Act, 2000
D. The Technology Act, 2008
ANSWER: C