Business Laws Multiple Choice
Questions and Answers (MCQs)
Dibrugarh University
Covering Question Papers from 2011 to
2021
1. Amount of a crossed cheque is
not paid at the counter.
2. Only Bearer cheque can be encashed on the
counter. True
3. An agent cannot work for more than one principal. False
4. Registration of limited liability partnership shall be with the
Registrar of Companies. True
5. Agreement with a
person of unsound mind is
void. True
6. A sale is an
Executory
contract. False, Executed Contract
7. The Bill of
Exchange has three
parties. Three, Drawer, Drawee and Payee
8. A Promissory
note has two
parties. Maker and Payee
9. Offer and
acceptance make contract.
10. To execute a contract of sale, price is not
essential / essential element. False
11. Implied warranties are not
written in a contract of sale.
12. Days of grace is not counted in cheque.
13. Negotiable instruments payable on demand do
not have days of grace. True
14. Bill of Exchange and promissory note are not
same.
15. The Consumer Protection Act was passed in 1986.
16. FEMA came into force from June 1, 1999/2000.
17. Indian contract act was passed in
1872. True
18. A contract dependent on happening or
non-happening of a future uncertain event is called contingent contract. True
19. Offer and acceptance make
agreement. True
20. Quasi-contracts are created by
circumstances. True
21. Sale of goods Act was passed in
1930. True
22. Implied warranties are written/ not written in
a contract of sale. Ans: Not written in a contract of sale
23. Expressed warranties are written in a contract
of sale. True
24. An unpaid seller obtains right against goods
only. True
25. An unpaid seller obtains the right against
buyer. True
26. In promissory note there are two
parties. True
27. In bills of exchange there are three
parties. True
28. Days of grace is allowed in
cheque. False
29. Consumer protection Act recognizes six rights
of consumers. True (Sec. 6)
30. FEMA came into force from June 1,
2000. True
31. A contract is discharged by commercial
impossibility. Yes
32. A quasi-contract is a contract created by low
not by the
parties. Yes
33. Condition is a stipulation unessential to the
main purpose of a
contract. False, Essential
34. To execute a contract of sale, seller and
buyer must be
there. True
35. To execute a contract of sale, price is an
essential
element. True
36. A cheque is not payable on
demand. False
37. A promissory note is payable on demand or
after a definite period of
time. True
38. A promissory note is always in
writing. True
39. Definition of consumer does not include a
person who obtains goods for resale or for any commercial purpose. True
40. A promissory note may not be in
writing. False
41. The Consumers’ Protection Act was passed in
1986. True
42. Offer may be
implied. True
43. Acceptance may be conditional. False, it is unconditional
44. An agreement to sell is an executory contract
not executed
contract. True
45. Agreement with a minor is
void. Void
46. Consideration from stranger to contract is
valid. False
47. Money cannot be a subject matter of sale under
the Sale of Goods Act
1930. True
48. Breach of warrantees by one party entitles the
other party to repudiate the
contract. False
49. Share warrants are Negotiable Instruments but
share certificate is not a negotiable
instrument. True
50. A government hospital is considered as an
industry under the Industrial Disputes Act,
1947. True
51. The definition of industry was amended in the
year
1981. False
52. A probationer is a workman under industrial
dispute
act. True
53. Maximum age limit of a member of a district
forum is 65
years. True
54. Quasi-contracts are created by circumstances, not by the parties. True, Peculiar circumstances
55. A specific offer can be accepted by any party. True
56. Money is considered as ‘goods’ under the Sale of Goods Act. False,
Money and actionable claim are not goods.
57. An insolvent cannot enter into a contract. True
58. An agent is a link in between the principal and the third
parties. True
59. Registration of a partnership firm is compulsory. False
60. An agreement to sale is an executory contract. True
61. The Indian Contract Act was enacted at 1972. False, 1872
62. The Indian Contract Act was passed in1873. False, 1872
63. A quasi-contract is a contract created bylaw, not by the
parties. True
64. Registration of a partnership firm is notcompulsory. True
65. The rights and liabilities of partners ofLLP are stated in the
LLP agreement.
66. A cheque is not payable on demand. False
67. Days of grace is counted in cheque. False
68. To execute a contract of sale; seller andbuyer must be there. True
69. Implied warranties are not written in acontract of sale. True
70. The Indian Contract Act, 1872 came into force on
Ans: 1st September, 1872.
71. In a sale there is an implied condition on the part of the
seller that he
Ans: has a right to sell the goods.
72. The provisions regarding maximum number of members in a
partnership are given in
Ans:The Companies Act.
73. The Right to Information Act, 2005 came into force on
Ans: 12th October, 2005.
74. A contract of indemnity is a
Ans: contingent contract.
75. A bill of exchange needs acceptance. True
76. The Sale of Goods Act, 1930 came into force from 1st July,
1930. True
77. A contract with or by a minor is a valid contract. False
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