Sikkim Manipal University Subject: Legal Aspects of Business Subject code: MB0051 Book ID B1725 Question Paper Code:

Time: 2 hours Max.Marks:140 PART A 1 MARK QUESTIONS Answer all questions. Each question carries 1 mark 50 * 1= 50 Marks 1. The ___________of a business is a major factor regulating the conduct of business.(Unit1, Page 9) a. Geographical Environment b. Technological Environment c. Legal Environment d. Economic Environment 2. The doctrine of judicial precedent is also known as the doctrine of ___________.(Unit1, Page 5) a. Stare decisis b. Star diases c. Obiter dicta d. Statute 3. ___________consists of all those unwritten legal doctrines embodying customs and traditions developed over centuries by the English courts.(Unit1, Page 6) a. Statute b. Common Law c. Personal Law d. Civil Law 4. _____ is a one of the chief sources of English Law.(Unit1, Page 6) a. Criminal Law b. Common Law c. Civil Law d. Indian Law 5. _____ is an agreement enforceable by law made between at least two parties as per which rights and obligations are mutually created.(Unit2, Page 22) a. Agreement b. Contract c. Consent d. Consideration 6. ____________ is an offer made by conduct such as positive acts or signs, so that the person acting or making signs conveys something.(Unit2, Page 24) a. Express Offer b. General Offer

c. Implied Offer d. Abstinence Offer 7. One of the essential elements of a valid contract is that it must be supported by _______________.(Unit2, Page 30) a. Consent b. Consideration c. Agreement d. None of the above 8. A contract may be discharged because of impossibility of ___________ .(Unit2, Page 32) a. Presentation b. Agreement c. Performance d. Consideration 9. A_____ may arise either by an express promise or by an operation of law.(Unit3, Page 42) a. Guarantee b. Contract of Indemnity c. Contract d. Indemnifier 10. The person who gives the guarantee is called ___________.(Unit3, Page 45) a. Surety b. Indemnifier c. Indemnified d. Promisor 11. The one who promises to make good the loss of the indemnified is called ___________.(Unit3, Page 42) a. Promisee b. Indemnifier c. Promisor d. Guarantor 12. The word bailment is derived from the French word ___________.(Unit4, Page 61) a. Bailor b. Bailer c. Bailee d. Baileor 13. In law, ___________ is a voluntary change of possession from one person to another.(Unit4, Page 61) a. Pledge b. Agreement c. Bailment d. Contract 14. ___________ means the right to retain goods in respect of the claim that is due.(Unit4, Page 65) a. Particular Lien b. Star diases c. Obiter dicta d. Statute

15. A ___________ is terminated on the expiry of the stipulated period.(Unit4, Page 67) a. Contract of Guarantee b. Pledge c. Contract of Bailment d. Consideration 16. The person for whom or on whose behalf an agent acts is called the ___________.(Unit5, Page 81) a. Head Agent b. Principal c. Secretary d. None of the above 17. An agent is the ________ between the principal and the third party.(Unit5, Page 82 a. Problem b. Pledge c. Agreement d. Connecting link 18. What is the usual form of a written contract of agency?(Unit5, Page 84) a. Power of attorney on a stamped paper b. A hand written document by the Principal c. A hand written document by the third party d. Power of attorney on a plain paper 19. ______________ agency arises from the conduct, situation or relationship of parties.(Unit5, Page 84) a. Express b. Implied c. Excellent d. None of the above 20. ______________is a timehonoured form of business organisation and one that is still in use in India.(Unit6, Page 101) a. Contract b. Partnership c. Acquisition d. Public Sector 21. The term ___________ includes every trade, occupation or profession.(Unit6, Page 102) a. Business b. Reading c. Acting d. Pointing 22. A partnership firm cannot be a ___________ of another partnership firm.(Unit6, Page 101) a. Well wisher b. Partner c. Mentor

d. Care taker 23. The ___________ is required to be stamped according to the provisions of the Stamp Act, 1899.(Unit6, Page 105) a. Special Contract b. General Agreement c. Partnership Deed d. None of the above 24. A sale has to be ___________ because the property in goods has to pass from one person to another.(Unit7, Page 122) a. Equilateral b. Bilateral c. Unique d. Reversible 25. The sale of ___________ property is not covered under Sale of Goods Act.(Unit7, Page 122) a. Irreversible b. Irrevocable c. Immovable d. None of the above 26. ___________ means every kind of movable property, other than actionable claims and money.(Unit7, Page 124) a. Goods b. Reading c. Acting d. Services 27. There is a compulsory treatment of breach of condition as a breach of ___________.(Unit7, Page 127) a. Guarantee b. Warranty c. Contract d. None of the above 28. ________ is the person, to whom the amount of the promisory note is payable.(Unit8, Page 146) a. The payee b. The holder c. The maker d. None of the above 29. ___________ may be construed either as a promissory note or as a bill of exchange.(Unit8, Page 144) a. Inchoate Instrument b. Negotiable Instrument c. Ambiguous Instrument d. None of the above 30. ___________ is an instrument in writing containing an unconditional undertaking, signed by

the maker to pay a certain sum of money to a specified person or to his order.(Unit8, Page 145) a. Promissory Note b. Bill of Exchange c. Ambiguous Instrument d. None of the above 31. A ________ in due course is the one who receives the instrument for value and without any notice as to the defect in the title of the transferor.(Unit8, Page 143) a. Holder b. Endorser c. Guarantor d. None of the above 32. In which Act do the laws relating to negotiable instruments are contained?(Unit8, Page 142) a. Negotiable Instruments Act 1881 b. Negotiable Instruments Act 1818 c. The Promissory Note Act 1881 d. None of the above 33. ___________ Act provides the definition of banking.(Unit9, Page 166) a. The Insurance Act 1949 b. The Banking Regulation Act 1949 c. The Mutual Fund Act d. The Reserve Bank of India Act 1934 34. A bank has two major functions of accepting deposits and ___________ such deposits.(Unit9, Page 166) a. Using b. Diverting c. Lending d. None of the above 35. The ___________ was created as a corporate body and is a legal person headed by a Governer.(Unit9, Page 168) a. RBI b. LIC c. SBI d. None of the above 36. ___________ came into existence in the year 1956.(Unit9, Page 177) a. Life Insurance Corporation (LIC) b. General Insurance Corporation of India (GIC) c. Reserve Bank of India (RBI) d. None of the above 37. The RBI has issued the ________ guidelines,

according to which banks are required to follow certain procedures for identifying customers before opening accounts.(Unit9, Page166) a. Know Your Customer (KYC) b. Protect Your Customer (PYC) c. Serve Your Customer (SYC) d. None of the above 38. The Consumer Protection Act, 1986, is a unique __________enacted in India to protect consumers.(Unit10, Page 187) a. Legislation b. Regulation c. Act d. None of the above 39. The Consumer Protection Act was passed by the ________ in 1986.(Unit10, Page 187) a. Indian Parliament b. Supreme Court of India c. President of India d. None of the above 40. The Consumer Protection Act applies to all goods and services unless specifically exempted by the ______________.(Unit10, Page 187) a. State Government b. Central Government c. Supreme Court d. None of the above 41. The ___________ Act of 1969 served as a watchdog to ensure that businesses did not indulge in underhanded practices to establish monopoly or constrain competition.(Unit11, Page 204) a. Competition b. Negotiable Instrument c. Monopolies and Restrictive Trade Practices (MRTP) d. None of the above 42. A ___________ includes an association of producers, sellers, distributors, traders or service providers who limit/control/attempt to control production/ distribution/sale/price/trade of any goods or services, by mutual arrangement.(Unit11, Page 205) a. Cartel b. Union c. Trade Association

d. None of the above 43. FEMA stands for ___________.(Unit12, Page 226) a. Foreign Exchange Manipulation Act b. Foreign Exchange Management Act c. Foreign Export Management Act d. None of the above 44. FERA stands for __________.(Unit12, Page 226) a. Foreign Exchange Regulation Act b. Foreign Export Regulation Act c. Final Exchange Regulation Act d. None of the above 45. The ___________ deals with the formation and transaction of business of a company.(Unit13, Page 247) a. Competition Act 1999 b. Companies Act 1956 c. Companies Act 1999 d. Competition Act 1956 46. The persons who register the company subscribe their names to ________ and comply with other formalities for registration.(Unit13, Page 249) a. Memorandum of Association (MoA) b. Trade Union c. Owners Association d. Financial Corporation 47. Which is the Act that enables the general public to know about important decisions of the government and other administrative bodies?(Unit14, Page 272) a. Right to Competition Act 2000 b. Right to Information Act 2005 c. Information Technology Act 2000 d. Competition Act 48. To ensure that the rights of individuals are not violated with the use of technology, the ___________ was passed in 2000.(Unit14, Page 272) a. Right to Information Act b. Information Technology Act c. Competition Act d. None of the above 49. The Patents Act, 1970, was passed to protect the __________of a person to whom the patent

has been granted.(Unit15, Page 293) a. Internal Property Rights b. Intellectual Property Rights c. Intellectual Proprietary Rights d. Intellectual Privacy Rights 50. The Patent Act, 1970 describes the procedure for the grant of patent and protects his rights against ___________.(Unit15, Page 293) a. Imitation b. Injustice c. Infringement d. None of the above Section-B Answer all questions. Each question carries 2 marks 25 * 2 = 50 Marks 51. Laws may include ________ or _________the non-observance of which may lead to public ridicule(Unit1, Page 3) a. Relations, Agreements b. Moral rules, etiquette c. Creativity, Equity d. Facts, Fictions 52. A business person can resort to various _______and_________ authorities against the government in case his/her legal rights have been violated.(Unit1, Page 11) a. Government, NonGovernment b. Judicial, Government c. Judicial, state d. Judicial, quasi-judicial 53. Discharge refers to the termination of contractual relationship between the ___________ and the _____________.(Unit2, Page 32) a. Promise, Promisee b. Promisor, promisee c. Promise, Promisor d. Offeror, Offeree 54. Contracts may be classified according to formation as _____________and _____________.(Unit2, Page 23) a. Implied, General b. Express, General c. Express, Implied d. General, Spoken 55. Contract between _________ and __________ is the foundation of the guarantee. a. Debtor and Creditor.(Unit3, Page 45)

b. The principal debtor and The creditor c. Debtor and Surety d. Creditor and Surety 56. If the goods are of an abnormal character like_________ or __________ the pledgee must be informed.(Unit4, Page 73) a. Extra ordinary goods, Fragile goods b. Explosives, Fragile goods. c. Extra ordinary goods, Explosives d. Fragile goods, Common goods 57. State the following statements as True/False.(Unit5, Page 83) (i) An ostensible agency is as effective as an express agency. (ii) Ratification tantamounts to prior authority. a. (i)- True, (ii)- False b. (i)- True, (ii)- True c. (i)- False, (ii)- False d. (i)- False, (ii)- True 58. A _______ or a _______ cannot contract through an agent since they cannot contract themselves personally either.(Unit5, Page 82) a. Major, Lunatic b. Lunatic, Fool c. Principal, Minor d. Minor, lunatic 59. Consider the following statements in the context of Indian business, some of the transactions and relations concern the: (Unit1, Page 10) i. Regulation of restrictive and unfair business practices ii. Promotion of conciliation and arbitration for settlement of business disputes State True or False: a. (i)- True, (ii)- True b. (i)- False, (ii)- False c. (i)- False, (ii)- True d. (i)- True, (ii)- False 60. State the following statements as True/False (Unit6, Page 104) i. There will be at least one general partner whose liability is unlimited. ii. One or more special partners whose liability is limited. a. (i)- True, (ii)- True b. (i)- True, (ii)- False c. (i)- False, (ii)- False d. (i)- False, (ii)- True

61. Conditions and warranties may be either _______ or _______ .(Unit7, Page127) a. Direct, Indirect b. General, Specific c. Principal, General d. Express, Implied 62. Which is the Act that came into force on July 1st 1930 to deal with the concept of sale of goods ?(Unit7, Page 122) a. The Goods Act 1930 b. The Sale of Goods Act 1930 c. The Saleable Goods Act 1930 d. None of the above 63. State the following statements as True/False(Unit9, Page 170) i. Banks can lend to their directors freely. ii. Banking companies are free from external control of RBI and other statutory bodies. a. (i)-True, (ii)-True b. (i)-True, (ii)-False c. (i)-False, (ii)-False d. (i)-False, (ii)-True 64. The modern institution of insurance is broadly of two kinds, that is_______ and _______.(Unit9, Page 175) a. Voluntary, Non-commercial b. General, specific c. General, Social d. Voluntary or commercial , Compulsory or social 65. The Consumer Protection Act refers to all _______ and _______ .(Unit10, Page 187) a. Banking, IT b. IT, financial services c. Goods, Services d. Tourism, IT 66. An enterprise is said to abuse its dominant position in instances such as imposing unfair/discriminatory conditions or price in the _______ or _______ of goods and services.(Unit11, Page 208) a. Production, marketing b. Marketing, Sale c. Production, sale d. Sale, purchase 67. Section 3 of the Foreign Exchange Management Act prohibits any person other than an authorised person from dealing in or transferring any ________ or _______ to any person.(Unit12, Page 229) a. Foreign products, Foreign Markets b. Foreign products, Foreign Machinery

c. Foreign exchange, Foreign security d. None of the above 68. State the following statements as True/False(Unit13, Page 248) i. Before the formation of a company, preliminary decisions regarding the type of company, share capital, etc. have to be decided by the promoters ii. Before registration, it is necessary to ascertain from the Registrar of Companies (ROC), whether the proposed company name is approved. a. (i)- True, (ii)- True b. (i)- False, (ii)- True c. (i)- True, (ii)- False d. (i)- False, (ii)- False 69. Promotion denotes the preliminary steps undertaken for the purpose of __________ and _________ of the company. (Unit13, Page 248) a. Registration, Filing b. Registration, floatation c. Application, registration d. None of the above 70. A prospectus, as per Section 2(36), refers to any document ___________ or ___________ as prospectus.(Unit13, Page 248) a. Issued, delivered b. Described, issued c. Prescribed, issued d. None of the above 71. Consider the following statements: (Unit 14, Page 272) (i). Right to Information Act, 2005, empowers every citizen to pose any questions to the Government or seek any information (ii). Right to Information Act, 2005, empowers every citizen to obtain copies of any Government documents State True or False: a. (i). - True, (ii) - True b. (i). - False, (ii) - False c. (i). - False, (ii) - True d. (i). - True, (ii) - False 72. The Information Technology Act was enacted so as to provide legal infrastructure for ecommerce and alternatives to paper-based methods of information __________ and __________.(Unit14, Page 275) a. Storage, Extention

b. Storage, communication. c. Application, registration d. None of the above 73. RTI Act, 2005, was implemented in our country on _______ and became operational on _______ .(Unit14, Page 272) a. 15 June 2000, 12 October 2005 b. 15 July 2005, 12 October 2005 c. 15 June 2005, 12 October 2006 d. 15 June 2005, 12 October 2005 74. State the following statements as True/False (Unit15, Page 297) i. The application for a patent must be filed at the Patent Office branch corresponding to the territorial jurisdiction in which the applicant resides or has his/her place of business. ii. A foreign applicant should file in the Patent Office that has jurisdiction where the applicant has his/her address for service. a. (i) - False, (ii)- True b. (i) - False, (ii)- False c. (i) - True, (ii)- True d. (i) - True, (ii)- False 75. In India, patents are applied through the ________ or alternatively, through a______. (Unit15, Page 294) a. Local Court, Patent Attorney b. Indian patent office, Patent agent c. District Court, Patent Attorney d. None of the above