Definition Of An Unpaid Seller And His Rights

58 Questions | Total Attempts: 145

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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.

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