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Definition Of An Unpaid Seller And His Rights

58 Questions
Law Quizzes & Trivia

__________________________________________________ No. Of Questions to be Answered : Random 20 out of 58

Questions and Answers
  • 1. 
    The legal definition of an 'unpaid seller' is given in which of the following section of the Sale of Goods Act, 1930? 
    • A. 

      Section 44

    • B. 

      Section 4

    • C. 

      Section 47

    • D. 

      Section 48

  • 2. 
    In which of the following cases, a seller deemed to be an unpaid seller?
    • A. 

      When whole of the price has not been paid or tendered.

    • B. 

      When a bill of exchange of other negotiable instrument, received in payment, has been dishonoured.

    • C. 

      Both (a) and (b).

    • D. 

      None of these.

  • 3. 
    A seller, to whom only a party of the price has been paid, falls in the category of
    • A. 

      Seller

    • B. 

      Partly paid seller

    • C. 

      Unpaid seller

    • D. 

      Conditional seller.

  • 4. 
    Where the buyer offers to pay the price, the seller refuses to accept the same, the seller shall
    • A. 

      Be considered as unpaid seller.

    • B. 

      Not be considered as unpaid seller.

    • C. 

      Lose all the rights of an unpaid seller.

    • D. 

      Both (b) and (c).

  • 5. 
    A sold certain goods to B for Rs. 5,000 and B made the payment by cheque. However, the cheque, when presented for payment, was dishonoured. Here, A is in the position of
    • A. 

      Unpaid seller

    • B. 

      Ordinary seller

    • C. 

      Bailor

    • D. 

      None of these.

  • 6. 
    An unpaid seller enjoys certain special rights under the Sale of Goods Act, 1930.
    • A. 

      True

    • B. 

      False

  • 7. 
    Under the Sale of Goods Act, 1930, an unpaid seller hasright
    • A. 

      Against the good sold.

    • B. 

      Against the buyer.

    • C. 

      Both (a) and (b)

    • D. 

      None of these.

  • 8. 
    Which of the following rights are available to an unpaid seller against the goods? i.           Right of lien. ii.         Right of stoppage in transit. iii.        Right of resale  iv.        Right to demand back goods.
    • A. 

      (i),( ii), (iii)

    • B. 

      (ii), (iii),(iv)

    • C. 

      (i), (ii), (iv)

    • D. 

      (i), (iii), (iv)

  • 9. 
    An unpaid seller also has the right of without the delivery of the goods sold to a buyer.
    • A. 

      True, where the ownership of the goods has not transferred to the buyer.

    • B. 

      False, the buyer can in no case withhold the delivery of goods sold.

  • 10. 
    Which of the following rights are available to an unpaid seller against the buyer?
    • A. 

      Suit of price

    • B. 

      Suit for interest

    • C. 

      Suit for repudiation

    • D. 

      AII of these.

  • 11. 
    Where the ownership of the goods is transferred to the buyer, which of the following rights are available to an unpaid seller.
    • A. 

      Right of lien

    • B. 

      Right of stoppage in transit

    • C. 

      Both (a) and (b)

    • D. 

      None of these.

  • 12. 
    Under the Sale of Goods Act, 1930, a seller is considered an unpaid seller when i.       a part of price has been paid ii.      whole of price has not been paid or tendered. iii.    Whole of price is tendered but seller refuses to accept iv.    A bill of exchange or other negotiable instrument, received in payment, has been dishonoured.
    • A. 

      (I), (ii), (iii)

    • B. 

      (ii), (iii), (iv)

    • C. 

      (i),(ii), (iv)

    • D. 

      (i), (iii), (iv).

  • 13. 
    The right of lien of an unpaid seller depends on
    • A. 

      Ownership of goods

    • B. 

      Possession of goods

    • C. 

      Title of goods

    • D. 

      Both (a)&(c).

  • 14. 
    The unpaid seller's right of lien is provided in________________    
    • A. 

      Section 47 (1)

    • B. 

      Section 48(1)

    • C. 

      Section 49

    • D. 

      None of these

  • 15. 
    The unpaid seller can exercise his right of lien over the goods, for
    • A. 

      Price of goods

    • B. 

      Storage charges

    • C. 

      Any lawful charge

    • D. 

      All of these.

  • 16. 
    The unpaid seller can exercise his right of lien over the goods where he is in possession of the goods as a 
    • A. 

      Owner of goods

    • B. 

      Agent of buyer

    • C. 

      Bailee for buyer

    • D. 

      Any of these.

  • 17. 
    The right of lien is exercised by unpaid seller in order to
    • A. 

      Retain possession of goods

    • B. 

      Recover damages

    • C. 

      Regain possession of goods

    • D. 

      Punish the buyer

  • 18. 
    In which of the following cases, an unpaid seller of goods, who is an possession of them , is entitled to retain the possession until the entire price is paid or tendered?
    • A. 

      Where the goods have been sold without any stipulation as to credit.

    • B. 

      Where the goods have been sold on credit, but the term of credit has expired.

    • C. 

      Where the buyer becomes insolvent.

    • D. 

      All of these.

  • 19. 
    The right of lien is divisible and the seller can be compelled to deliver a part of the gods on the payment of proportionate price of goods.
    • A. 

      True, as it is the legal position on the point.

    • B. 

      False, as the right of lien is indivisible in nature.

  • 20. 
    Which of the following statement is incorrect?
    • A. 

      In case of insolvency of the buyer, an unpaid seller can exercise his lien if whole of the price is not paid.

    • B. 

      In case of credit sale, an unpaid seller can exercise his lien if the buyer fails to pay the whole of the price after the expiry of credit period.

    • C. 

      In case of cash sale, an unpaid seller has no right of lien even if the whole price is not paid,

    • D. 

      In case of a part delivery of goods, an unpaid seller may exercise his lien on the -remaining part of goods if the part delivery, is not intended as delivery of the whole.

  • 21. 
    In which of the following cases, the unpaid seller loses his right of lien?
    • A. 

      Delivery of goods to buyer

    • B. 

      Delivery of goods to carrier

    • C. 

      Tender of price by buyer

    • D. 

      All of these.

  • 22. 
    Where the unpaid seller has parted with the possession of the goods, seller's right of lien is lost.
    • A. 

      True, the lien is lost as soon as the possession is lost.

    • B. 

      False, the lien is lost only when the ownership is transferred to the buyer.

  • 23. 
    The unpaid seller can exercise his right of stoppage of goods in transit where before paying the price, the buyer.
    • A. 

      Becomes insolvent

    • B. 

      Refuses to pay price

    • C. 

      Acts fraudulently

    • D. 

      All of these.

  • 24. 
    The unpaid seller's right of stoppage of goods in transit is provided in  ___________.
    • A. 

      Section 48

    • B. 

      Section 49

    • C. 

      Section 50

    • D. 

      Section 51

  • 25. 
    The unpaid seller can exercise the right of stoppage of goods in transit for
    • A. 

      Price of goods

    • B. 

      Storage charges

    • C. 

      Any lawful charges

    • D. 

      All of these.

  • 26. 
    The 'stoppage in transit' means the stopping of the goods while they are in the course of transmission to the
    • A. 

      Seller

    • B. 

      Buyer

    • C. 

      Seller's agent

    • D. 

      None of these

  • 27. 
    Where the buyer becomes insolvent and the unpaid seller has parted with the possession of the goods sold, he can stop the goods in transit until
    • A. 

      Price is paid

    • B. 

      Price is tendered

    • C. 

      Seller sues for price 1

    • D. 

      Either (a) or (b).

  • 28. 
    The right of stoppage of goods in transit is exercised by an unpaid seller in order to
    • A. 

      Retain possession of goods

    • B. 

      Regain possession of goods

    • C. 

      Recover damages

    • D. 

      Punish the buyer.

  • 29. 
    The unpaid seller can exercise the right of stoppage in transit where the middleman i.e., carrier holds the goods as an
    • A. 

      Agent of seller

    • B. 

      Agent of buyer

    • C. 

      Independent person i.e., in his own name.

    • D. 

      Both (a) and (b).

  • 30. 
    Where by exercising the right of stoppage in transit, the unpaid seller regains the possession of the goods, then
    • A. 

      Buyer's lien revives

    • B. 

      Buyer's lien does not revive

    • C. 

      Seller's possessiort is unlawful

    • D. 

      Contract of sale of terminated.

  • 31. 
    Where the goods are rejected by the buyer and the carrier or other bailee continues to be in possession of the goods, then he transit
    • A. 

      Comes to an end

    • B. 

      Does not come to an end

    • C. 

      Commences

    • D. 

      Is illegal.

  • 32. 
    The transit commences form the time when the goods are delivered to the carrier or other bailee and it continues till the buyer
    • A. 

      Takes the delivery of goods

    • B. 

      Refuses to pay the price

    • C. 

      Becomes insolvent

    • D. 

      Pays the full price.

  • 33. 
    The unpaid seller's right of stoppage in transit is lost when the
    • A. 

      Possession of goods is regained

    • B. 

      Buyer refuses to pay price

    • C. 

      Transit comes to an end

    • D. 

      Both (a) and (b).

  • 34. 
    In which of the following cases, seller's right of stoppage in transit is lost ?
    • A. 

      Buyer's act of taking delivery form carrier.

    • B. 

      Carrier's acknowledgement to the buyer.

    • C. 

      Carrier's wrongful refusal to deliver the goods to the buyer.

    • D. 

      All of these.

  • 35. 
    If the carrier wrongfully (i.e., without any just cause) refuses to deliver the goods to the buyer. Then the
    • A. 

      Transit comes to an end

    • B. 

      Right of stoppage in transit is lost

    • C. 

      Transit does not come to an end

    • D. 

      Both (a) and (b)

  • 36. 
    If after arrival of the goods at appointed destination, the carrier acknowledges to the buyer that he is now holding the goods on his behalf, but the buyer instructs the carrier to carry the goods to some other destination, then.
    • A. 

      Transit comes to an end

    • B. 

      Transit does not come to an end

    • C. 

      Seller's right of lien revives

    • D. 

      None of these.

  • 37. 
    If the buyer takes a seat in the same ship which is carrying the goods to the buyer's destination, then the buyer's taking seat amounts to
    • A. 

      End of transit

    • B. 

      Loss of stoppage in transit right

    • C. 

      Revival of seller's lien

    • D. 

      None of these.

  • 38. 
    The unpaid seller can exercise his right of stoppage in transit by giving notice to the carrier to stop the goods and redeliver them to the seller or according to his directions.
    • A. 

      True, as this is also the recognised mode of exercising this right.

    • B. 

      False, as this right can be exercised only by taking the actual possession.

  • 39. 
    On buyer's failure to pay the price within reasonable time the unpaid seller can resell the goods to someone else, where
    • A. 

      Goods are perishable

    • B. 

      Seller has reserved such right

    • C. 

      Both (a) and (b)

    • D. 

      None of these.

  • 40. 
    The unpaid seller has the right to resell the goods where he has exercised his right of lien or stoppage in transit.
    • A. 

      True, as it is recognised under the Sale of Goods Act 1930.

    • B. 

      False as no such right is given to him under the Sale of Goods Act, 1930.

  • 41. 
    After exercising his right of lien, the unpaid seller may give a notice to pay or ender the price within
    • A. 

      15 days

    • B. 

      30 days

    • C. 

      Reasonable time

    • D. 

      None of these.

  • 42. 
    After regaining possession of the goods by exercising his right of stoppage in transit, the unpaid seller can also resell the goods to someone else.
    • A. 

      True, if after notice, the buyer fails to pay or tender the price within reasonable time .

    • B. 

      False, as in this case no right of resale is available to the unpaid seller.

  • 43. 
    Where the unpaid seller resells the goods without giving a notice to the buyer and there is loss on resale, then the unpaid seller.
    • A. 

      Is guilty of breach of contract.

    • B. 

      Can recover the loss from the buyer.

    • C. 

      Cannot recover the loss form the buyer.

    • D. 

      Can recover the loss form mercantile association.

  • 44. 
     Where he unpaid seller resells the goods without giving a notice to the buyer and  there is profit on resale, then the unpaid seller is
    • A. 

      Bound to return it to the original a buyer

    • B. 

      Not bound to return it to the original buyer.

    • C. 

      At liberty to retain it for his own use.

    • D. 

      Guilty of breach of contract.

  • 45. 
    Which of the following statements is correct if an unpaid seller results the goods after giving a notice to the buyer of his intention to resell the goods?
    • A. 

      The unpaid seller can recover the loss form the original buyer, if the resale price is less than the original contract price.

    • B. 

      The unpaid seller cannot recover any loss form the original buyer.

    • C. 

      The unpaid seller can retain the profit if the resale price is higher than the original contract price.

    • D. 

      Both (a) and (c) are correct.

  • 46. 
    Where the seller has expressly reserved his right of resale and resells the goods without giving a notice to the buyer, then incase of loss on resale the seller is
    • A. 

      Entitled to recover the same from the original buyer.

    • B. 

      Not entitled to recover the same form the original buyer.

    • C. 

      Guilty of breach of contract of sale.

    • D. 

      Entitled to recover the same from mercantile association.

  • 47. 
    The unpaid seller can withhold the delivery of the goods where the buyer
    • A. 

      Fails to a pay the price

    • B. 

      Become insolvent

    • C. 

      Fails to pay damages

    • D. 

      Both (a) and (b).

  • 48. 
    The rights of withholding deliver in is similar to and coextensive with the right of
    • A. 

      Lien

    • B. 

      Stoppage in transit

    • C. 

      Both (a) & (b)

    • D. 

      None of these.

  • 49. 
    Which of the following rights are available to an unpaid seller against the buyer?
    • A. 

      Suit for price

    • B. 

      Suit for interest

    • C. 

      Suit for damages

    • D. 

      All of these

  • 50. 
    On the transfer of ownership, rf the buyer fails to accept tne gooes and pay for them, then the seller can file a suit for recovery of
    • A. 

      Price

    • B. 

      Interest

    • C. 

      None of these

    • D. 

      Both (a) and (b).

  • 51. 
    The unpaid seller is entitled to claim interest only when he is entitled to recover
    • A. 

      Price

    • B. 

      Damages

    • C. 

      Either (a) or (b)

    • D. 

      None.

  • 52. 
    Where seller's only remedy is for damages, he cannot file a suit for interest.
    • A. 

      True

    • B. 

      False

  • 53. 
    Before the transfer of ownership. If the buyer wrongfully fails to accept the goods delivered by the seller, then the seller can file a suit for the recovery of
    • A. 

      Price

    • B. 

      Damages

    • C. 

      Both (a) and (b)

    • D. 

      None of these

  • 54. 
    Where the buyer repudiates the contract before the due date of delivery of goods. The seller may treat the contract as
    • A. 

      Subsisting and wait till the due date of delivery.

    • B. 

      Repudiated and bring an immediate action for recovery of damage.

    • C. 

      Either (a) or (b).

    • D. 

      Only option (a) is available to the seller.

  • 55. 
    The right of lien is exercised to________ of goods.
    • A. 

      Retain the possession

    • B. 

      Regain possession

    • C. 

      Hand over possession

    • D. 

      Check the quantity

  • 56. 
    Contains unpaid seller's right of lien.
    • A. 

      Sec 45

    • B. 

      Sec 46(1)

    • C. 

      Sec 47 (1)

    • D. 

      Sec 48.

  • 57. 
    Right of lien is lost when______ of goods is lost.
    • A. 

      Ownership

    • B. 

      Possession

    • C. 

      Face value

    • D. 

      Market value.

  • 58. 
    Unpaid seller's right to recover ___________ also entitles his to recover interest. 
    • A. 

      Goods

    • B. 

      Lawful charges

    • C. 

      Price

    • D. 

      Damages

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