SET I

Business Law Course

code: U13MSY55
1. A contract based on the equitable principle that a person shall not be allowed to
enrich himself at the expense of another. A. Both movable& Immovable Goods B.
Movable goods only
C. Immovable goods only D. All goods except ornaments.
2. The term goods for the purpose of sale of goods Act does not include
A. Money B. Actionable claims C. Immovable property d. All of these
3. A contract for the sale of future goods is
B. Sale B. Agreement to sell C. Void D. Voidable
4. In a hire purchase agreement, the hirer
C. Has an option to buy the goods B. Must buy the goods C. Must return the goods
D. Is not given the possession of the goods
5. A Stipulation which is collateral to the main purpose of the contarct, and if proved
false, give the buyer only a right to claim damages is known as
D. Condition B. Guarantee C. Warranty D. None of these.
6. Which of the following is not an implied condition in a contract of sale
A. Condition as to title B. Condition as to description C. Condition as to freedom
from encumbrance
D. Condition as to sample
7. The term goods exclude A. Stock & Share B. Growing crops C. Actionable claims
D. None
8.A contract of sale may be A. Absolute only B. Condition only C. Absolute &
Conditional D. None
9. The sale of goods act, 1930 does not cover A. Existing goods B. Immovable goods
C. Future goods D. None
10.A contract which cannot be enforceable in a court of law A. Voidable contract B.
Void contract C. Valid contract D. None
11.Who is competent to enter into a contract A.Minor B. Person of sound mind C. A
Lunatic D. A Purdanasheen women
12. When one person signifies to another his willingness to do or to abstain from
doing anything, it is known as A. Proposal B. Offer C. Agreement D. Contract
13.In commercial & business agreements, the presumption is that the parties
intended to create A. Legal relations B. Performance C. Agreement D. Both A & C.
14.A contract is based on A. Executed B. Implied C. Agreement D. All the above
15.All _______ are agreements, but all agreements are necessarily contracts A. Legal
relations B. Consents C. Unconditional D. Contract
16.An ______ contract is a contract in which both the parties have performed their
respective obligations A. Executed B. Implied C. Agreement D. None
17. ______ depends on an agreement but not necessarily on contract A. Agency B.
Agent C. Quasi contract D. None
18. No valid ratification can be made by a person whose knowledge of facts of the
case is materially A. Clear B. Defective C. Confusing D. None
19._______ does his work under the contract of the agent A. Principal B. Partners C.
Promisor D. Sub Agent
20._______ agent is a person who has authority to do all acts connected with a
particular trade or business A. Special agent B. General agent C. Sub agent D. Both
A&B.
21.________ agent occupies the position of both a guarantor & an agent. A.
Delcredere B. General C. Special D. Sub agent
22.________ authority is the authority of an agent as it appears to others. A
.Principal B. General
C. Apparent D. None
23. No consideration is necessary to create ______ A. Agreement . B. agency
Contract C. An agency D. None
24. Agency by operation of law is said to arise when the law treats one person as an
agent of ________ A. Another B. The principal C. Both A&B D. None
25.________ are essential for partnership. A. Association of 20 more persons B.
Aggreement C. Business D. All the above.
26.The object of partnership must be to make _______. A. Profit B. Agreement C.
Uncondition D. All the above.
27.Partner is _______ . A. An agent B. Promisor C. Promisee D. None.
28. A partnership is based on _______ A. Desire B. Willing C. Relationship D.
Agreement
29. Minor may be admitted to the benefits of partnership with the _______ of all the
other parties. A. Adjustment B. Willing C. Consent D. None
30. Partnership is merely _______ Between the partners. A. An abstract legal relation
B. An agent C. Ownership D. All the above.
31. __________ Person cannot enter into a contract of partnership. A. Unsound mind
B. Alien enemy C. Minor without the consent of all the other partners D. All the
above.
32. Every partner has a right to prevent the introduction of a _______. A. New partner
B. Minor C. Both A & B D.None
33. In which year IRDA was constituted?
A. 19 April, 2000 B. 19 April, 2001 C. 19 April, 2002 D.19 April, 2003
34. Headquarter of General Insurances Public Sector Association of India is
situated?
A. Delhi B. Mumbai C. Kolkata E. None Of These
35. IRDA is associated with?
A. Railways B. Insurance Sector C. Banking D. Tele
Communication
36. Which of the following term is not used in insurance sector?
A. Indemnity B. Coverage C. Misuse Alert D. Casualty
37. Which of the following Public Sector companies provides insurance cover
to exporters?
A. ECGC B.NABARD C. SIDBI D. IRDA
38. The main feature of the National Agricultural Insurance Scheme is to
insure which of the following?
A. Life of the farmer B. Crop of the farmer C. Animals who are used in
agricultural activities
D. Land of the farmer
39. IFRS Stands for?
A. Indian Financial Reporting Standards
B. Indian Financial Reporting System
C. International Financial Reporting Standards
D. International Financial Reporting System

40. Expand the term FSDC which is used in financial sectors?

A. Financial Security and Development Council
B. Financial Stability and Development Council
C. Fiscal Security and Development Council
D. Fiscal Stability and Development Council

ANSWER
1. C 15. D 29. C
2. B 16. A 30. A
3. B 17. A 31. D
4. A 18. B 32. C
5. C 19. D 33. A
6. C 20. B 34. A
7. C 21. A 35. B
8. C 22. C 36. C
9. B 23. C 37. A
10. B 24. C 38. B
11. B 25. D 39. C
12. A 26. A 40. b
13. A 27. A 41.
14. C 28. A
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.

57. SET II
58. Business Law
Course code: U13MSY55
59.1._______ is an agreement between two or more parties enforceable in a court
of law. A. Partnership B. Contract C. Agent D. None.
60.2. _________ is a contract which is entered into, between parties via internet.
A. Modern contract B. Technical contract C. Advance contract D. E-Commerce.
61.3. An offer may be communicated by A. Orally B. By conduct only C. By a
written mode D. By all the above modes
62.4. Acceptance may be communicated by A. Any person B. A person who has
the authority to accept C. His agent D. all the above
63.5.An offer is said to be general when it is made A. To a definite person B. To
the public at large C. To a group of persons D. None of the above.
64.6.An offer can be communicated A. At any time B. Before it can be accepted
C. After acceptance D. None of the above
65.7. Newspaper advertisements are not ______. A. Offer B. Proposal C. Contract
D. None
66.8. An offer may come to an end by ______ A. Lapse B. revocation C. Both A&B
D. None
67.9. Ratification is tantamount to prior ______ A. Authority B. Agreement C.
Contract D. None
68.10. An agency coupled with interest is _________ A. Irrevocable B. Revocable
C. Acceptable D. None
69.11. A minor can be an agent but cannot be ______ A. A partner B. An agent C.
Promisee D. A principal
70.12. ________ is the agent of the original agent. A. General agent B. Universal
agent C. Special agent D. Sub agent.
71.13. _______ is an agent appointed by a seller to sell his goods by public
auction for a commission. A. auctioneer B. Subagent C. Special agent D.
General agent
72.4. Non mercantile agents include ______ A. Solicitors agents B. Special agents
C. Sub agent D. General agent.
73.15. When the agent or principal dies, the agency ________ A. Is terminated B.
Appoint another C. Continuing D. None
74.16. An agency may be terminated by ________ A. Act of the parties B.
Operation of law C. By mutual agreement D. All the above.
75.17. Partner must act with utmost good faith as the very basis of partnership is
_______ A. Mutual trust B. Confidence c. Both A&B D. None
76.18. A partner is not entitled to receive any _______ A. Remuneration B. Profit
C. Goodwill D. None
 77.19. It is the duty of every partner to contribute to the _____ of the firm. A.
Business B. Losses C. Credit D. None
78.20. A partner cannot assign his rights & interest in the firm to _______ A. An
outsider B. Partner C. Third parties D. None
79.21. The authority of a partner may be _______ A. Express B. Implied C. Both
A&B D. Legal authority
80.22. Partners may be _________ A. Actual partner B. Nominal partner C. Partner
by estoppel or hilding out D. All the above
81.23. Reconstitution of a firm may be of _______ A. Introduction of a new
partner B. Retirement of a partner C. death of a partner D. All of these
82.24. A retired partner ____ give a public notice of his retirement to persons
who are ignorant of his being a partner in the firm. A. Need not B. Need to C.
Optional D. None
83.25. The sale of goods act, 1930 does not cover A. Existing goods B.
Immovable goods C. Future goods D. None
84.26. An agreement to sell is an ____ A. Executory contract B. Executed contract
C. Contingent contract D. None
85.27. Which of the following is not regarding as goods under the sale of goods
Act, A. Copyright B. Trademark C. Money
86.28. In the case of hire-purchase agreement, the positioning of the hire-
purchaser is that of the ___ A. Agent B. Principal C. Bailee D. Promisor
87.29. An _______ means a claim to any debt or any beneficial interest in a
movable property not in possession. A. Acutionable claim B. Agreement claim
C. Stipulation & Warranty D. None
88.30. The sale of goods Act applies to a contract of sale, and not to a contract
for ______ and ________. A. Work & Material B. Executed & Executory C.
Implied & Express D. None
89.31. Document of titled goods include _______ . A. Bill of lading B. Railway
Receipt C. Both A&B D. Balance of payment.
90.32. A ________ is a stipulation which is essential to the main purpose of the
contract. A. Agreement B. Claim C. Condition D. All
91. 33. The insurance companies collect a fixed amount from its
customers at a fixed interval of time. What it is called?
A. Installment B. Contribution C. Premium D. EMI
92. 34. Anmol Jeevan is a ..of the LIC. A. Basic Life Insurance Plan
B. Term Insurance Plan C. Childrens Plan D. Pension Plan
93. 35.In case of fire & accident insurance, Insurable interest must
exist.
94. A. At the time of loss only B. At inception of insurance only C. Both
at inception of insurance & at the time of loss D. No insurable interest is
required.
95. 36. Floater policy can be given under which situations. i. Where
sum insured exceeds 2 crores. ii.Where goods are placed at different
godowns at different locations. iii. Where goods are placed at different
godowns at different locations in the same compound. iv. Sum insured
cannot be ascertained at all locations.
96. A. A&B are correct B. A,B&C are correct C. A,B,C,D are correct D.
None is correct
97. 37. Which of the following perils can be add-on cover under the
fire policy at extra premium. A. Spontaneous combustion B. Flood C.
Impact damage D. Explosion
98. 38. Insurable interest must be present at the time of insurance
proposal and payment of claims in
A. Fire Insurance B. Marine Insurance C. Life Insurance D. Motor
Insurance
99. 39. When was the Insurance Regulatory and Development
Authority constituted?
a) 1938 b) 1971 c) 1993 d) 1999
100. 40. Which one of the following does not belong to the main
products of life insurance?
a) Endowment b) Personal accident insurance c) Term d) Whole life
101.
102.
103.
104.
105.
106.
107. ANSWER
1. b 15. a 29. a
2. d 16. d 30. a
3. d 17. c 31. a
4. b 18. a 32. c
5. b 19. b 33. a
6. b 20. a 34. b
7. a 21. c 35. c
8. c 22. d 36. d
9. a 23. d 37. a
10. a 24. a 38. c
11. d 25. b 39. d
12. d 26. a 40. b
13. a 27. c
14. a 28. c
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.

60. SET III

61. Business Law
Course code: U13MSY55
1. When two parties make identical offers to each other in ignorance of each
others offer the offers are known as _____ A. Cross offers B. Consent C.
Mistake D. None
2. Once an offer is accepted, there can be no revocation of _______ A.
Acceptance B. Contract C. Agreement D. None
3. A standing offer is in the nature of a _______ A. Tender B. Offer C. Executory D.
None
4. Insanity/death of the proposer automatically _____ the proposal A. Continue B.
Revokes C. Appoint a person D. None
5. Minors agreements are ____ A. Valid B. Void Abinito C. Voidable D. Both A&C
6. A Minor is a person who has not completed A. 16 yrs B. 18 yrs C. 21 yrs D.
Both B&C
7. Persons disqualified by law do not include A. Convicts B. Insolvents C. Agents
D. None
8. A minor can be a _______ A. Promisee B. Beneficiary C. Both A&B D. None
9. Sub Agent is responsible for his acts to the _____ A. Agent B. Principal C. Both
A&B D. None
10.The agent is responsible to the ___ for the acts of _______. A. Sub agent :
Principal B. Principal : sub agent C. Third party : Sub agent D. None
11.Sub agent can demand his remuneration from ____ A. Principal B. Original
Agent C. Third party D. None.
12.An agent acts on behalf of the principal, the third parties can proceed only
against _______. A. The principal B. Agent C. Sub Agent D. None
13.Partner agrees to share his profit with Third parties that 3 rd person is known
as a _______ A. Sub partner B. Partner C. Third parties D. None
14.The act done by the partner must relate to the ____ Business of the firm. A.
Normal B. Usual C. Both A&B D. None
15.A partner shall not carry on any _____. A. Business B. Authority C. Profit D.
None
16.Every partner is bound to ______ the firm for any loss. A. Protect B. Indemnify
C. Secure D. All of these.
17.A warranty is a stipulation which is ______ to the main purpose of the
contract. A . An agreement B. Relevant C. Collateral D. None
18.An implied condition as to quality or fitness for a particular purpose may be
annexed by the _______ A. Usage of trade B. Quasi contract C. Contractual
relationship D. None.
19.In the case of _______ and ________, there is an implied condition that the
goods shall be wholesome and fit for human consumption. A. Eatable,
Provisions B. movable, Immovable C. Executed, Executory D. None
20._______ is the process by which the goods answering the description are
identified and set apart. A. Ascertainment B. Trademark C. Copyright D. None
21.The contract of fire & marine insurance is a contract of _______ . A. Agreement
B. Indemnity C. Certainty D. None
22.The assured must have insurable interest in ______ . A. Life insurance B.
Marine Insurance C. Fire Insurance D. None
23.A contract of _______ is a contarct from year to year. A. Life Insurance B.
General Insurance C. ELSS D. Both A&B
24.The surrender value of the policy goes on increasing as more & more ______
are paid. A. Volumes B. Premiums C. Coverage D. None
25.The subject matter of fire insurance A. Property B. Goods C. Life D. Both A&B
26.A warranty in a contract of marine insurance is substantially the same as a
condition in a contract of ________ . A. Agency B. Partnership C. Quasi D. sale
of goods
27.In marine policies, Mixed policy is a combination of ________ . A. Voyage &
Value policy B. Voyage & Floating policy C. Unvalued & Wagering policy D.
Voyage & Time policies.
28.In Life Insurance, A nomination may be _____ before the policy matures for
payment. A. Changed B. Cancelled C. Both A&B D. None
29.In Life Insurance, the Annity policy is useful to those who desire to provide a
________. A. High returns B. Safe returns C. Regular Income D. None
30.Types of Life Insurance policies comprises __________ A. Endowment policy B.
Whole Life policy C. Anticipated policy D. All of these.
31.Future goods means goods to be manufactured/ produced or acquired by the
seller. A. In future prescribed time B. After making of contract C. Before
making of contract D. None
32.The sale of goods act, 1930 contains A. 66 Sections B. 68 Section C. 70
Section D. None
33.The term Goods in the sale of goods means A. Specific goods B.
Ascertained goods C. Ownership D. Subject Matter
34. A Bill of landing is _____ A. A negotiable instrument like Bill of Exchange B. A
negotiable instrument like promissory note C. Either A or B D. Neither A nor B
35.The sale of goods act 1930, applies to the whole of India except ____ A.
Jammu & Kashmir B. Jharkhand C. Orissa D. Goa Daman & Diu.
36.When the consent of a person is obtained by fraud, the contract is _______. A.
Valid B. Illegal C. Void D. None
37.A false statement of facts made without any intention to deceive the other
party falls under the category of ________ A. Fraud B. Coercion C.
Misrepresentation D. Undue Influence
38.A minor is not personally _________ A. Liable B. Capable C. Competent D. None
39. Capacity to contract means _______ A. Competency of parties to enter into a
contract B. Performance C. Minor D. None
40.A minor can be ______ A. Promise B. Beneficiary C. Both A&B D. None
62.
63. ANSWER
1. A 15.A 29.C
2. A 16.D 30.D
3. A 17.C 31.B
4. B 18.A 32.A
5. B 19.A 33.D
6. B 20.A 34.D
7. C 21.B 35.A
8. C 22.A 36.C
9. A 23.B 37.C
10.B 24.B 38.A
11.B 25.D 39.A
12.A 26.A 40.c
13.A 27.D
14.C 28.C
41.