Legal Aspects Of Business Online Line Examination

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Legal Aspects Of Business Online Line Examination - Quiz


AES's Anekant Institute of Management Studies (AIMS)
Mid Term Internal Online Examination
October 2016
Legal Aspects of Business (103)


Questions and Answers
  • 1. 

    A contract comes into existence by:

    • A.

      Proposal+Assent to the Proposal+Enforceability by Law

    • B.

      Proposal+Acceptance of some conditions by the offeree+Other essentials of a contract

    • C.

      Promise+Consideration+Free consent of the parties

    • D.

      Agreement+Consideration+Certainity

    Correct Answer
    A. Proposal+Assent to the Proposal+Enforceability by Law
    Explanation
    A contract comes into existence by the proposal made by one party and the assent to that proposal by the other party. However, for a contract to be valid and enforceable, it must also meet the requirement of being enforceable by law. This means that the terms and conditions of the contract must be legally binding and can be enforced in a court of law if necessary. Therefore, the correct answer is Proposal+Assent to the Proposal+Enforceability by Law.

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  • 2. 

    An acceptance is valid:

    • A.

      When offeree adds his condition with acceptance

    • B.

      When offeree accepts all the conditions of the offer

    • C.

      When it is not against the interest of any person

    • D.

      When acceptance is caused by coercion

    Correct Answer
    B. When offeree accepts all the conditions of the offer
    Explanation
    An acceptance is valid when the offeree accepts all the conditions of the offer. This means that the offeree agrees to all the terms and requirements set forth in the offer without any modifications or additions. By accepting all the conditions, the offeree demonstrates their willingness to be bound by the terms of the offer, indicating a clear and unambiguous acceptance. This ensures that both parties are in agreement and can proceed with the terms of the offer as originally presented.

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  • 3. 

    Consideration means:

    • A.

      Doing or abstaining from doing something at the desire of the promisor

    • B.

      Doing or abstaining from doing something voluntarily

    • C.

      Doing or abstaining from doing something which the promisee is already under a duty to do.

    • D.

      All of the above

    Correct Answer
    A. Doing or abstaining from doing something at the desire of the promisor
    Explanation
    Consideration refers to the act of doing or abstaining from doing something at the request or desire of the promisor. In other words, it involves fulfilling a request or following a specific instruction from the person making the promise. This is the correct answer because consideration is an essential element in the formation of a valid contract, and it requires some form of exchange or benefit between the parties involved.

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  • 4. 

    Minor's Agreement is:

    • A.

      Voidable

    • B.

      Valid

    • C.

      Void when Court declares it void

    • D.

      Void from beginning

    Correct Answer
    D. Void from beginning
    Explanation
    A minor's agreement is considered void from the beginning because minors are not legally capable of entering into a binding contract. This means that any agreement made by a minor is not enforceable by law. The rationale behind this is to protect minors from being taken advantage of or making decisions that they may not fully understand. Therefore, the agreement is deemed invalid and has no legal effect from the moment it is made.

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  • 5. 

    Consent means:

    • A.

      Consensus proxima

    • B.

      Consensus ad idem

    • C.

      Consensus in general

    • D.

      Consensus on causes

    Correct Answer
    B. Consensus ad idem
    Explanation
    Consent means "consensus ad idem," which refers to a meeting of the minds or a mutual agreement between parties. It implies that all parties involved have a clear understanding and agreement on the same terms and conditions. This term is often used in legal contexts to ensure that all parties have given their informed and voluntary consent to a particular agreement or contract. It emphasizes the importance of shared understanding and agreement between parties to avoid misunderstandings or disputes in the future.

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  • 6. 

    The following contracts are contingent contracts:

    • A.

      Contract of insurance

    • B.

      Contract of guarantee

    • C.

      Contract to deliver goods on receipt from the factory

    • D.

      Both (A) and (B)

    Correct Answer
    D. Both (A) and (B)
    Explanation
    The correct answer is both (A) and (B). Contingent contracts are those where the performance of the contract depends on the occurrence of a specific event. In this case, both the contract of insurance and the contract of guarantee are contingent contracts because the obligations of the parties are dependent on certain events happening, such as an accident or default. The contract to deliver goods on receipt from the factory is not a contingent contract as it does not depend on any specific event, but rather on the receipt of goods from the factory.

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  • 7. 

    In contract of guarantee, a person who promises to discharge another's liability, is known as:

    • A.

      Principal debtor

    • B.

      Creditor

    • C.

      Surety

    • D.

      Indemnified

    Correct Answer
    C. Surety
    Explanation
    A person who promises to discharge another's liability in a contract of guarantee is known as a surety. The surety is legally bound to fulfill the obligations of the principal debtor if they fail to do so. The surety acts as a form of security for the creditor, ensuring that they will be compensated if the principal debtor defaults on their obligations.

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  • 8. 

    The party who gives indemnity is known as:

    • A.

      Indemnity-holder

    • B.

      Surety

    • C.

      Indemnifier

    • D.

      Principal debtor

    Correct Answer
    C. Indemnifier
    Explanation
    The party who gives indemnity is known as the indemnifier. This means that they are the one who provides compensation or protection against any loss or damage that may occur to the indemnity-holder. The indemnifier takes on the responsibility of covering any potential liabilities or risks that the indemnity-holder may face.

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  • 9. 

    A merchantile agent to whom the possession of the goods is given for the purpose of selling the same , is known as:

    • A.

      Broker

    • B.

      Factor

    • C.

      Commission agent

    • D.

      Insurance agent

    Correct Answer
    B. Factor
    Explanation
    A factor is a merchantile agent who is given possession of goods for the purpose of selling them. They act as an intermediary between the seller and the buyer, handling the sales process and ensuring that the goods are sold at the best possible price. Factors often provide additional services such as credit checks, financing, and collection of payments. Unlike brokers who simply facilitate the transaction, factors take possession of the goods and assume some level of risk. Therefore, the correct answer is factor.

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  • 10. 

    In a sale, if the goods are destroyed, the loss falls on:

    • A.

      The buyer

    • B.

      The seller

    • C.

      To both - seller and buyer

    • D.

      Party who is in the possession of goods

    Correct Answer
    B. The seller
    Explanation
    In a sale, if the goods are destroyed, the loss falls on the seller. This is because until the goods are delivered to the buyer, the seller retains ownership and responsibility for the goods. Therefore, any loss or damage that occurs before the transfer of ownership is the seller's liability.

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  • 11. 

    A condition is a stipulation which is:

    • A.

      Essential to the main purpose of the contract of sale

    • B.

      Not essential to the main purpose of the contract of sale

    • C.

      Collateral to the main purpose of the contract of sale

    • D.

      None of the above

    Correct Answer
    A. Essential to the main purpose of the contract of sale
    Explanation
    A condition that is essential to the main purpose of the contract of sale means that it is a crucial requirement or provision that must be fulfilled in order for the contract to be valid. This condition directly affects the core objective or intention of the contract and is necessary for its fulfillment.

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  • 12. 

    The expression "Caveat Emptor" means:

    • A.

      Let Government Be aware

    • B.

      Let the vendor be aware

    • C.

      Let the buyer be aware

    • D.

      Let the creditor be aware

    Correct Answer
    C. Let the buyer be aware
    Explanation
    The expression "Caveat Emptor" is a Latin phrase that translates to "Let the buyer be aware." This phrase is often used in the context of commerce and serves as a warning to buyers that they are responsible for assessing the quality and condition of a product before making a purchase. It emphasizes the importance of conducting due diligence and being cautious when entering into a transaction, as the buyer assumes the risk and cannot hold the seller accountable for any defects or issues that may arise after the purchase.

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  • 13. 

    The main object 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

    Correct Answer
    B. Transfer of property in goods from seller to buyer
    Explanation
    The main object of a contract of sale is the transfer of property in goods from the seller to the buyer. This means that the ownership and legal rights of the goods are transferred from the seller to the buyer. It goes beyond just the transfer of possession or delivery of goods, as it involves the transfer of ownership and all associated rights and responsibilities. Payment of price is also an important aspect of a contract of sale, but it is not the main object as it is dependent on the transfer of property in goods.

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  • 14. 

    Appropriation of goods must be:

    • A.

      Either by buyer or seller

    • B.

      Unconditional

    • C.

      With the consent of the other party

    • D.

      As per (A), (B) and (C)

    Correct Answer
    D. As per (A), (B) and (C)
    Explanation
    The correct answer is "as per (A), (B) and (C)". This means that the appropriation of goods must comply with conditions (A), (B), and (C) that have been previously mentioned. It is essential for both the buyer and seller to agree on the appropriation, and it must be unconditional. This ensures that both parties are in consent and that the goods are allocated appropriately.

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  • 15. 

    Following is not a mode of delivery:

    • A.

      Quality delivery

    • B.

      Constructive delivery

    • C.

      Actual delivery

    • D.

      Symbolic delivery

    Correct Answer
    A. Quality delivery
    Explanation
    The question asks for a mode of delivery that is not included in the given options. The options include constructive delivery, actual delivery, and symbolic delivery. However, "quality delivery" is not a mode of delivery. Quality refers to the standard or level of excellence, but it does not describe a specific method or mode of delivery. Therefore, quality delivery is not a valid option in this context.

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  • 16. 

    An unlawful act by which an intending purchaser is prevented from bidding or raising the price at an auction sale, is known as :

    • A.

      Decoy ducking

    • B.

      Puffing

    • C.

      Damping

    • D.

      None of these

    Correct Answer
    C. Damping
    Explanation
    Damping refers to an illegal practice where an intending purchaser is prohibited from bidding or increasing the price at an auction sale. This could be done by intimidating or threatening the potential buyer, thereby preventing them from participating in the auction process. It is a deceptive tactic used to manipulate the auction and restrict fair competition among buyers.

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  • 17. 

    In India, the date of National Consumer Day is :

    • A.

      24 December

    • B.

      25 December

    • C.

      26 December

    • D.

      27 December

    Correct Answer
    A. 24 December
    Explanation
    National Consumer Day in India is celebrated on 24th December. This day is observed to promote consumer rights and raise awareness about the importance of consumer protection. It commemorates the enactment of the Consumer Protection Act, 1986, which aims to safeguard the rights of consumers and provide them with a platform to address grievances. On this day, various programs and campaigns are organized to educate consumers about their rights and responsibilities and to ensure fair trade practices.

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  • 18. 

    ________________ laws are contained in Information Technology Act 2000.

    • A.

      Criminal

    • B.

      Civil

    • C.

      Company

    • D.

      Cyber

    Correct Answer
    D. Cyber
    Explanation
    The correct answer is "Cyber." The laws contained in the Information Technology Act 2000 pertain to cyber-related activities and offenses. This act was established to address various cybercrimes such as hacking, data theft, online fraud, and other cyber-related offenses. It provides legal provisions and guidelines for dealing with cybercriminal activities and ensuring the security and integrity of electronic transactions and information.

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  • 19. 

    A statutory company or corporation is one which is incorporated:

    • A.

      By an Act of Parliament

    • B.

      By an act of State legislature

    • C.

      Under the Companies Act 1956

    • D.

      By either (A) or (B)

    Correct Answer
    D. By either (A) or (B)
    Explanation
    A statutory company or corporation is one that is incorporated either by an Act of Parliament or by an act of State legislature. This means that the company is created and governed by specific legislation passed by either the central government or the state government. This distinguishes a statutory company from other types of companies that are incorporated under the Companies Act 1956, which is a general law governing the formation and operation of companies in India.

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  • 20. 

    Primarily share of any company is a piece of property conferring right in relation to distribution of ____________  _________________.

    • A.

      Taxes and of Liabilities

    • B.

      Credit and of Debits

    • C.

      Income and of Capital

    • D.

      Income and of Expenditure

    Correct Answer
    C. Income and of Capital
    Explanation
    A share of any company is a form of ownership in the company, which entitles the shareholder to a portion of the company's profits, also known as income, and the right to participate in the distribution of the company's capital. This means that shareholders have the right to receive dividends from the company's income and may also benefit from any increase in the value of the company's capital.

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  • Current Version
  • Mar 18, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 17, 2016
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    Draydikshit
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