Legal Aspects Of Business Online Line Examination
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 LawExplanation
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.Rate this question:
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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 offerExplanation
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.Rate this question:
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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 promisorExplanation
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.Rate this question:
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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 beginningExplanation
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.Rate this question:
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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 idemExplanation
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.Rate this question:
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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.Rate this question:
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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. SuretyExplanation
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.Rate this question:
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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. IndemnifierExplanation
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.Rate this question:
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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. FactorExplanation
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.Rate this question:
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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 sellerExplanation
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.Rate this question:
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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 saleExplanation
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.Rate this question:
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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 awareExplanation
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.Rate this question:
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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 buyerExplanation
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.Rate this question:
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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.Rate this question:
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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 deliveryExplanation
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.Rate this question:
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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. DampingExplanation
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.Rate this question:
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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 DecemberExplanation
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.Rate this question:
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- 18.
________________ laws are contained in Information Technology Act 2000.
- A.
Criminal
- B.
Civil
- C.
Company
- D.
Cyber
Correct Answer
D. CyberExplanation
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.Rate this question:
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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.Rate this question:
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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 CapitalExplanation
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.Rate this question:
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Mar 18, 2023Quiz Edited by
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Oct 17, 2016Quiz Created by
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