Quiz: Legal Aspects Of Business

20 Questions | Total Attempts: 476

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Business Law Quizzes & Trivia

Questions and Answers
  • 1. 
    Poonam is an unpaid seller enjoying some rights. Which of the following right of seller is not correct here?
    • A. 

      Lien on goods

    • B. 

      Right of stoppage in transit

    • C. 

      Right of resale

    • D. 

      Suit for price

  • 2. 
    X purchased goods on behalf of Y by paying from his own pocket for the time being. X is about to deliver goods to Y his principal and came to know that Y became insolvent. In this case X as an agent is entitled to imply which right?
    • A. 

      Right of indemnification

    • B. 

      Right of stoppage in transit

    • C. 

      Right of retainer

    • D. 

      Right to remuneration

  • 3. 
    X guarantees the repayment of a loan of Rs. 10,000 to Y by Z (a banker). Later Y is planning to gift something from that money to A. Who is surety here?
    • A. 

      A

    • B. 

      X

    • C. 

      Z

    • D. 

      Y

  • 4. 
    Arzoo went into a restaurant and took a cup of tea. In this case there is:
    • A. 

      No contract by Arzoo to pay for the cup of tea

    • B. 

      An implied contract that she will pay for the cup of tea

    • C. 

      An express contract to pay for the cup of tea

    • D. 

      A quasi-contract to pay for the cup of tea

  • 5. 
    Out of the following what type of suit is not valid or seller cannot sue it?
    • A. 

      Suit for price

    • B. 

      Suit for damages for non-acceptance

    • C. 

      Suit for interest

    • D. 

      Suit for paying partially

  • 6. 
    Which of the following circumstances will not cause the agency relationship to terminate?
    • A. 

      The bankruptcy of the agent

    • B. 

      The bankruptcy of the principal

    • C. 

      The death of the principal

    • D. 

      The death of the agent

  • 7. 
    A finder of lost property:
    • A. 

      May throw the goods away after three days.

    • B. 

      Is a constructive bailee who is bound to take reasonable care of the property under the circumstances?

    • C. 

      Has the no liability to the owner if the property is damaged.

    • D. 

      Has expressly contracted to care for the goods.

  • 8. 
    …………. means to make good the loss or to compensate the party who has suffered some loss.
    • A. 

      Indemnity

    • B. 

      Contract of Indemnity

    • C. 

      Contract of Guarantee

    • D. 

      Continuing Guarantee

  • 9. 
    An agreement is an ………………….
    • A. 

      Offer + enforceability

    • B. 

      Offer + legal obligation

    • C. 

      Offer + acceptance

    • D. 

      Offer only

  • 10. 
    Which of the following is not a remedy available to buyers?
    • A. 

      Right to damages

    • B. 

      Right to reject the goods

    • C. 

      Right to specific performance

    • D. 

      Right to demand replacement goods

  • 11. 
    If a buyer finds that goods have been incorrectly described, what can the buyer do?
    • A. 

      Accept the goods, but claim compensation

    • B. 

      Accept the goods, but sue for damages

    • C. 

      Reject the goods, even if not defective

    • D. 

      Only reject the goods if defective

  • 12. 
    When a particular course of conduct is followed again and again, it becomes …………..
    • A. 

      Statutes

    • B. 

      Judicial precedents

    • C. 

      Personal law

    • D. 

      A custom

  • 13. 
    …………… lay down the rules which determine when property passes from the seller to the buyer.
    • A. 

      Secs.18 to 25

    • B. 

      Secs 16 to 30

    • C. 

      Secs. 15 to 35

    • D. 

      Secs 17 to 34

  • 14. 
    A ………………… is a mercantile agent engaged to buy and/or sell property.
    • A. 

      Broker

    • B. 

      Advisor

    • C. 

      Agent

    • D. 

      Principal

  • 15. 
    An ……………… is a person employed to do any act for another or to represent another Agent in dealing with the third persons.
    • A. 

      Agent

    • B. 

      Agency by Express Agreement

    • C. 

      Agency by Estoppel

    • D. 

      Sub-agent

  • 16. 
    Right to sell comes under which section:
    • A. 

      Sec.168

    • B. 

      Sec.167

    • C. 

      Sec.169

    • D. 

      Sec.170

  • 17. 
    Every person is competent to contract if he is:
    • A. 

      Major

    • B. 

      Lunatic

    • C. 

      Indulge in illegal act

    • D. 

      Drunk

  • 18. 
    Here are some essentials or characteristics of contract. Out of these, which statement is incorrect?
    • A. 

      A contract is an agreement

    • B. 

      A contract is enforceable by law

    • C. 

      A contract comprises 1 party

    • D. 

      A contract can be done in writing as well as oral.

  • 19. 
    Contracts may be classified in 4 parts according to their validity. Out of the following which 1 is not the part of contract classification?
    • A. 

      Valid

    • B. 

      Voidable

    • C. 

      Void

    • D. 

      Invalid

  • 20. 
    The doctrine of judicial precedent is also known as the doctrine of:
    • A. 

      Stare decisis

    • B. 

      Obiter dicta

    • C. 

      Stare decisis & Obiter dicta

    • D. 

      Obiter dicta & Stare decisis

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