Legal Aspects Unit - 9 Commerce Expected MCQ PDF
Legal Aspects Unit - 9 Commerce Expected MCQ PDF
Legal Aspects Unit - 9 Commerce Expected MCQ PDF
UNIT -9 HAS MANY BREIF TOPICS INCLUDE, ALL ARE VERY IMPORTANT THROUGH THIS
PDF WE JUST TRY TO GIVE A IDEA WHAT KIND OF QUESTION EXPECTED TO ASK ITS
DO NOT MEAN THAT SAME QUESTION OR ONLY THE TOPIC WHICH ARE INCLUDED IN THIS
PDF EXPECTED TO ASK MAY BE NONE OF THESE QUESTION WILL ASKED IN EXAM ,BUT
AS PER EXPERTISE OF DIWAKAR SIR & TEAM WE PROVIDE YOU DATA
Legal Aspects Unit -9 Commerce
D. None of these
Ans. (B)
2. A stipulation in a bond for payment of compound interest on failure to pay simple interest at
the same rate as was payable upon the principal is not a penalty within the meaning of:
D. None of these
Ans. (A)
D. None of these
Ans. (C)
4. A successful plaintiff in an action for detenue, is, therefore entitled to the return of the goods
or recovery of its value and damages for detention and is entitled to have been assessed
separately:
D. None of these
Ans. (C)
D. None of these
Ans. (A)
6. A supplies the wife and children of B, a lunatic, with necessaries suitable to their condition in
life.
D. None of these
Ans. (A)
B. This is a contract
D. None of these
Ans. (B)
8. A surety is discharged if the creditor, without consent, unconditionally releases the principal-
debtor; the reason for this principle being that:
B. Such release adversely affects the right of the surety to sue the principal-debtor and deprives
the surety of his right to compel the debtor to perform his own obligation to the creditor
D. None of these
Ans. (C)
9. A transaction by which A promised to pay B and C for consideration during their joint lives
and after the death of one of them, to the survivor, the consideration moved from B but the
agreement was signed by all three, i.e., A, B and C.
C. There was privity between A on one side and B and C on the other
D. None of these
Ans. (C)
10. A undertakes to deliver a thousand maunds of jute to B on a fixed day Applying Section 47,
Indian Contract Act:
A. A need not apply to B to appoint a reasonable place for the purpose of receiving it, and must
deliver it to him at such place
B. A must apply to B to appoint a reasonable place for the purpose of receiving it, and can
choose to later change the place
C. A must apply to B to appoint a reasonable place for the purpose of receiving it, and must
deliver it to him at such place
D. None of these
Ans. (C)
11. A undertakes to repay B a loan of Rs.1,000 by five equal monthly instalments with a
stipulation that, in default of payment of any instalment, the whole shall become due.
A. This stipulation is by way of penalty, and the contract cannot be enforced according to its
terms
B. This stipulation is not by way of penalty, and the contract cannot be enforced according to its
terms
C. This stipulation is not by way of penalty, and the contract may be enforced according to its
terms
D. None of these
Ans. (C)
12. A, a builder, contracts to erect and finish a house by the first of January, in order that B may
give possession of it at that time to C, to whom B has contracted to let it. A is informed of the
contract between B and C. A builds the house so badly that, before the first of January, it falls
down and has to be rebuilt by B, who in consequence, loses the rent which he was to have
received from C, and is obliged to make compensation to C for the breach of his contract.
D. All of them
Ans. (D)
13. A, a decree-holder, and entitled to execution of B’s goods, requires the officer of the court
to seize certain goods, representing them to be the goods of B. The officer seizes the goods,
and issues by C, the true owner of the goods.
A. A is not liable to indemnify the officer for the sum which he is compelled to pay to C, in
consequence of obeying A’s directions
B. A is partially liable to indemnify the officer for the sum which he is compelled to pay to C, in
consequence of obeying A’s directions
C. A is liable to indemnify the officer for the sum which he is compelled to pay to C, in
consequence of obeying A’s directions
D. None of these
Ans. (C)
14. A, a man enfeebled by disease or age, is induced, by B’s influence over him as his medical
attendant, to agree to pay B an unreasonable sum for his professional services.
D. None of these
Ans. (B)
15. A, a merchant in Calcutta, has an agent, B, in London to whom a sum of money is paid on
A’s account, with orders to remit. B retains the money for considerable time. A, in consequence
of not receiving the money, becomes insolvent.
A. B is not liable for the money and interest, from the day on which it ought to have been paid,
according to the usual rate
B. B is liable for any further direct loss – as e.g. by variation of rate of exchange
C. B is liable for the money and interest, from the day on which it ought to have been paid,
according to the usual rate, and for any further direct loss – as e.g. by variation of rate of
exchange – but not further
D. None of these
Ans. (C)
16. A, a merchant in England, directs B, his agent or Bombay, who accepts the agency, to send
him 100 bales of cotton by a certain ship. B, having it in his power to send the cotton, omits to
do so. The ship arrives safely in England. Soon after her arrival, the price of cotton rises.
A. B is not bound to make good to A profit which he might have made by 100 bales of cotton at
the time the ship arrived
B. B is bound to make good to A any profit he might have made by the subsequent rise
C. B is bound to make good to A profit which he might have made by 100 bales of cotton at the
time the ship arrived. But not any profit he might have made by the subsequent rise
d. None of these
Ans. (C)
A. The Court will not set the bond aside and not take any legal action against B
B. The Court may set the bond aside, ordering B to repay the Rs. 100/- with such as may seem
just
d. None of these
Ans. (B)
18. A, a ship-owner, contracts with b to convey him from Calcutta to Sydney in A’s ship, sailing
on the first of January, and B pays to A, by way deposit, one-half of his passage money. The ship
does not sail on the first of January and B, after being, in consequence, detained in Calcutta for
some time, and thereby put to some expense, proceeds to Sydney in another vessel, and, in
consequence, arriving too late in Sydney, loses a sum of money.
A. A is liable to repay to B his deposit, with interest and the expense to which he is put by his
detention in Calcutta, and the excess, if any, of the passage-money paid for the second ship
over that agreed upon the first
B. A is liable to repay to B his deposit, with interest and the expense to which he is put by his
detention in Calcutta, and the excess, if any, of the sum of money which B lost by arriving in
Sydney too late
C. A is liable to repay to B his deposit, with interest and the excess, if any, of the passage-money
paid for the second ship over that agreed upon the first, but not the sum of money which B lost
by arriving in Sydney too late
D. None of these
Ans. (A)
19. A, a signer, contracts with B, the manager of a theatre for two nights in every week during
the next two months, and B engages to pay her a hundred rupees for each night’s performance.
On the sixth night, A willfully absents herself from the theatre, and B, in consequence rescinds
the contract.
A. B must pay A for the three nights on which she had sung
B. B must pay A for the four nights on which she had sung
C. B must pay A for the five nights on which she had sung
d. None of these
Ans. (C)
20. A, a singer, contracts with B, the manager of a theatre, to sing at his theatre for two nights
in every week during the next two months, and B engages to pay her 100 rupees for each
night’s performance. On the sixth night, A wilfully absents herself from the theatre, and B, in
consequence, rescinds the contract.
A. B is not entitled to claim compensation the damage which he has sustained through the non-
fulfilment of the contract
B. B is entitled to claim compensation the damage which he has sustained through the non-
fulfilment of the contract
C. A is entitled to claim compensation the damage which she has sustained due to the
rescinding of the contract by B.
D. None of these
Ans. (B)
21. A, a singer, enters into a contract with B, the manager of a theatre, to sing at his theatre
two nights in every week during the next two months, and B engages to pay her 100 rupees for
each night’s performance. On the sixth night A willfully absent herself from the theatre.
D. None of these
Ans. (A)
22. A, a singer, enters into a contract with B, the manager of a theatre, to sing at his theatre
two nights in every week during the next two months, and B engages to pay her at the rate of
100 rupees for each night. On the sixth night A wilfully absents herself. With the assent of B, A
sings on the seventh night.
A. B has signified his acquiescence in the continuance of the contract, and cannot now put an
end to it, but is entitled to compensation for the damage sustained by him through A’s failure
to sing on the sixth night
B. B has signified his acquiescence in the continuance of the contract, and but can still put an
end to it, but is entitled to compensation for the damage sustained by him through A’s failure
to sing on the sixth night
C. B has signified his acquiescence in the continuance of the contract, and cannot now put an
end to it, but is not entitled to compensation for the damage sustained by him through A’s
failure to sing on the sixth night
D. None of these
Ans. (A)
23. A, a tradesman, leaves goods at B’s house by mistake. B treats the goods as his own.
D. None of these
Ans. (C)
24. A, an agent engaged in carrying on for B a business, in which it is the custom to invest from
time-to-time, at interest, the moneys which may be in hand, omits to make such investments.
A. A need not make good to B the interest usually obtained by such investments
B. A can partially make good to B the interest usually obtained by such investments
D. None of these
Ans. (C)
25. A, an agent for the sale of goods, having authority to sell on credit, sells to B on credit,
without making the proper and usual inquires as to the solvency of B. B at the time of such sale
is insolvent.
A. A need not make compensation to his principal in respect of any loss thereby sustained
B. A can partially make compensation to his principal in respect of any loss thereby sustained
C. A must make compensation to his principal in respect of any loss thereby sustained
D. None of these
Ans. (C)
1. What is the purpose behind the enactment of Sale of Goods Act, 1930?
C. To consolidate, amend and define the laws relating to the sale of goods
E. Ans- D
2. To define and amend the laws relating to the sale of goods Section 2(1) of Sale of
Goods Act defines ‘buyer’ as:
E. ANS- C
3. Before the enactment of Sale of Goods Act, the provisions regarding Sale of Goods
were contained in:
E. ANS- A
4. Which of the following cannot be said to be included in the term “goods” defined
under section 2(7) of the Sale of Goods Act, 1930:
A. Stock
B. Shares
C. Growing crops
D. Actionable claims
E. Ans- D
5. Which of the following most appropriately describes the term “sale” as per Sale of
Goods Act, 1930:
E. ANS- B
6. When does an agreement to sell become a sale as per the provisions of Sale Of Goods
Act, 1930:
C. When the time elapses or the conditions subject to which the property in the
goods is to be transferred are fulfilled
E. ANS- C
7. What can be the subject matter of the contract of sale as per section 6 of Sale of
Goods Act:
C. Existing goods which are neither owned nor possessed by the owner
E. ANS- D
8. Where in a contract of sale the seller purports to effect the present sale of the future
goods, the contract operates as:
A. A Contract of sale
E. ANS- C
9. In a contract for sale of specific goods, the goods, without the knowledge of seller
perished at the time when the contract was made, the contract is:
D. A void contract
E. ANS- D
10. Can the agreement be avoided when there is an agreement to sell specific goods but
subsequently the goods perish or become so damaged without any fault of the seller
or buyer:
D. It can be avoided only if there is a contract in this regard between the parties
E. ANS- A
E. ANS- D
12. A is a stipulation essential to main purpose of the contract and the breach of which
gives rise to a right to treat the contract as repudiated:
A. Condition
B. Warranty
C. Disclaimer
D. Guarantee
E. Ans- a
13. A is a stipulation collateral to main purpose of the contract and the breach of which
gives rise to a right to claim for damages but not to a right to reject goods and treat
the contract as repudiated:
A. Condition
B. Warranty
C. Terms of contract
D. Disclaimer
E. Ans- b
14. When can a breach of condition be treated as a breach of warranty by the seller as per
the provisions of Sale of Goods Act, 1930:
A. When the buyer fulfils the condition stipulated to the contract of sale
B. When the contract of sale is severable and the buyer has accepted the entire
goods
C. When the contract of the sale is not severable and the buyer has accepted the
goods or part thereof, subject to an express or implied term in the contract
D. When the contract of the sale is severable and the buyer has accepted the
entire goods or part thereof
E. Ans- C
B. The buyer has the right to have and enjoy the quiet possession of goods only.
D. The buyer has the right to have and enjoy the quiet possession of goods and
that the goods shall be free from any charge or encumbrance
E. ANS- D
16. In a Contract for Sale of goods by sample and description, it is necessary that:
A. The bulk of goods shall correspond with the sample as well as description
B. The bulk of goods shall correspond with sample while it is not necessary that
the bulk of goods shall correspond with the description
C. The bulk of goods shall correspondent with the description and it is not
necessary that the bulk of goods correspond with the sample
D. Variation of the bulk of goods with the sample and description of goods is only
to be treated as a breach of warranty
E. ANS- A
17. In which of the following cases, there is an implied condition as to particular quality or
fitness of goods:
A. When buyer makes known to the seller the particular purpose for which goods
are required as to show that buyer relies on seller’s skill and judgment and the
goods are of description which it is in the ordinary course of seller’s business to
supply
B. When buyer makes known to the seller the particular purpose for which goods
are required as to show that buyer relies on seller’s skill and judgment though
the seller does not, in the ordinary course of its business, supply such goods
C. When goods are bought by description from seller who deals in goods of that
description, whether as a manufacturer or otherwise and the buyer has
examined the goods and found defects in the same
D. When there is a contract for sale of a specified article under its patent or other
trade name
E. ANS- A
18. When does the property in the goods pass to the buyer in case of contract for the sale
of specific or ascertained goods:
E. ANS- B
F.
19. When does the property in the goods pass to the buyer in case of an unconditional
contract for the sale of specific goods in a deliverable state:
A. When the contract is made irrespective of whether the time of payment of price
or delivery of goods is postponed or not
E. ANS- A
20. When does the property in the goods pass to the buyer in case of a contract for the
sale of unascertained or future goods by description:
B. When the goods of that description and in a deliverable state are conditionally
appropriated to the contract either by the seller or by the buyer with the assent
of each other
E. ANS- A
21. In which of the following cases property in the goods does not pass to the buyer when
the goods are delivered to the buyer on approval or “on sale or return” or other
similar terms:
A. When the buyer signifies his approval or acceptance to the seller as to goods
B. When the buyer retains the goods without giving a notice of rejection and upon
expiry of reasonable time
E. ANS- C
22. Choose the most appropriate answer. Unless otherwise agreed, the goods remain at
seller’s risk until:
E. ANS- C
23. When is the sale by mercantile agent who is in the possession of the goods or
documents of the title to the goods not valid:
C. When the buyer acts in good faith and has notice that the seller has no
authority to sell at the time of the contract of sale
E. ANS- C
24. When the seller has obtained possession of goods under a voidable contract, what
title does the buyer acquire when the goods are passed under the contract of sale:
A. Buyer acquires good title to the goods if he acts in good faith though he had
notice of seller’s defect of title
B. Buyer acquires good title to the goods if he had no notice of seller’s defect of
title though he did not act in good faith
C. Buyer does not acquire a good title to the goods even though he acts in good
faith and without notice of seller’s defect of title
D. Buyer acquires good title to the goods if he acts in good faith and without notice
of seller’s defect of title
E. ANS- D
25. Which of the following cannot be treated as ‘Delivery’ under the Sale of Goods Act,
1930:
A. Doing anything which has the effect of putting goods in possession of legal
representatives of seller
B. Doing anything which has the effect of putting goods in possession of any
person authorised by the buyer
C. Doing anything which has the effect of putting goods in possession of the buyer
E. ANS- A
26. What is the effect of part delivery of goods made in the progress of delivery of the
whole of the goods as per section 34 of the Sale of Goods Act, 1930:
C. Part delivery has the same effect as the delivery of the whole only in case of
perishable goods.
D. Part delivery has the same effect as the delivery of the whole irrespective of the
type of goods unless part delivery is made with intention of severing it from
whole
E. Ans- d
27. Which of the following statement is correct with regard to delivery of goods by a
seller:
B. The seller is bound to deliver the goods when there is either an express contract
or when the buyer applies for delivery
C. The seller is bound to deliver the goods only when there is an express contract
to that effect
D. The seller is bound to deliver the goods only when the buyer applies for delivery
E. Ans- B
A. Where the goods are in the possession of a third person, the goods are not
delivered to buyer unless such third person acknowledges to the buyer that the
goods are held by him on seller’s behalf
B. Where no time is fixed for sending the goods it should be delivered within a
reasonable time
C. The expenses of and incidental to putting the goods into a deliverable state
shall be borne by the buyer
E. ANS- D
29. As per the provisions of Sale of Goods Act, 1930 which of the following is not a
consequence of delivery of wrong quantity of goods to the buyer:
A. Where the seller delivers less than the contracted quantity the buyer may reject
the same
B. Where the seller delivers more than the contracted quantity, the buyer can only
reject the goods not included in the contract
C. Where the seller delivers the contracted goods mixed with the goods of a
different description, the buyer can reject the goods of different description or
may reject the whole of the goods.
D. Where the seller delivers more than the contracted quantity, the buyer may
accept the goods included in the contract and reject the rest, or he may reject
the whole. If the buyer accepts the whole of the goods so delivered, he shall pay
for them at the contract rate
E. ANS-B
30. Which of the following is true as regards delivery of goods in instalments as provided
under Sale of Goods Act:
A. The buyer is bound to accept the instalment deliveries only in case of perishable
goods
B. The buyer is bound to accept the instalment deliveries only in case of sale of
goods by description
C. The buyer is bound to accept the instalment deliveries only if agreed between
the parties
E. ANS- C
E. ANS- A
A. 3
B. 4
C. 6
D. 2
E. ANS- B
3. Which is the Act which provides legal framework for e-Governance in India
C. IT Act 2000
E. ANS- C
4. Which section of IT Act deals with the legal recognition of electronic records?
A. Section 2
B. Section 5
C. Section 6
D. Section 4
E. ANS- D
C. Digital Certificates
E. ANS- D
A. Section 3
B. Section 5
C. Section 6
D. Section 4
E. ANS- B
7. The section deals with the use of electronic records and digital signature in
Government and its agencies
A. Section 3
B. Section 5
C. Section 6
D. Section 7
E. ANS- C
8. Major amendments to IT Act 2000 was introduced in the form of IT (amendment) Act
2008, which came into effect on
A. 01 June 2008
B. 27 October 2009
C. 27 October 2008
D. 03 July 2009
E. ANS- B
C. Indian Evidence Act 1872 & Bankers Book Evidence Act 1891
E. ANS- D
10. Which among following Act is not ammended in Information Technology Act 2000 ?
B. BSNL IT Policy
E. Ans- B
D. autonomous body
E. ANS- C
12. Which Act in India focuses on data privacy and information technology?
B. IT Act 2000
E. ANS- D
13. Which section of IT Act deals with the appointment of Controller of certifying
authorities
A. Section 17
B. Section 15
C. Section 10
D. Section 5
E. ANS- A
14. Which section of IT Act 2000 deals with the punishment for cheating by impersonation
by using computer resources?
A. Section 66D
B. Section 66C
C. Section 66B
D. Section 66F
E. ANS- A
15. The following punishment is mentioned in which section of IT Act 2000 '3 years of
imprisonment and/or 5 lakh repees penalty for first conviction & 5 years of
imprisonment and/or 10 lakh rupees penalty
A. Section 67
B. Section 66
C. Section 65
D. Section 64
E. ANS- A
16. Which section of IT Act deals with Hacking of computer systems and its penalties?
A. Section 65
B. Section 66
C. Section 62
D. Section 67
E. ANS- 66
B. Life Imprisonment
E. ANS- C
A. Section 66C
B. Section 66B
C. Section 66F
D. Section 66A
E. ANS- C
A. Section 66F
B. Section 66B
C. Section 66D
D. Section 66A
E. ANS- D
20. The date on which Supreme Court of India invalidated Section 66A of IT Act 2000:
A. 24.03.2015
B. 31.03.2015
C. 01.01.2015
D. 01.06.2015
E. ANS- A
21. What is the penalty for publishing images of a person's private parts without consent,
as per IT Act 2000?
B. Life imprisonment
E. ANS- C
E. ANS- B
E. ANS- D
24. Which are the sections of IT Act applicable for Cyber pornography?
E. ANS- B
A. Section 67F
B. Section 67D
C. Section 67C
D. Section 67B
E. ANS- B
26. What is the maximum penalty for damage to Computer, Computer systems,
unauthorized access, download of data, infecting with virus, denial of access etc as per
Section 43
A. Rs. 50 lakh
B. Rs.1 crore
C. Rs. 5 crore
D. Rs.75 lakh
E. ANS- B
A. Section 66F
B. Section 66C
C. Section 66B
D. Section 66A
E. ANS- A
28. Which are the section of the IT Act deals with Credit card fraud?
E. ANS- C
A. Patent
B. Trade Marks
C. Copyright
D. All of above
E. ANS- D
30. What is the time limit for filing appeal against the order of Cyber appellate tribunal?
A. 30 days
B. 90 days
C. 60 days
D. 45 days
E. ANS- C
31. Which is the appeal court on the orders issued by Cyber appellate tribunal?
A. Munsiff Court
B. District Court
C. High Court
D. Supreme Court
E. ANS- C
32. What is the term of the office of the presiding officer of Cyber appellate tribunal?
A. 3 years
B. 4 years
C. 6 years
D. 5 years
E. ANS- C