Legal Aspects Of Business Quiz
Navigate the complex intersection of law and business with our quiz, 'Legal Aspects of Business.' This quiz delves into the essential legal principles shaping the corporate landscape, testing your knowledge on contracts, liability, intellectual property, and more.
Whether you're a business student looking to reinforce your understanding of legal frameworks or a professional seeking to stay informed about legal intricacies in the corporate world, this quiz provides a comprehensive exploration of key concepts.
From the intricacies of contract law to the nuances of intellectual property protection, challenge yourself with real-world scenarios. Take the 'Legal Aspects of Business Quiz' to assess Read moreyour grasp of legal considerations in business and gain valuable insights into navigating the legal terrain of the corporate world.
- 1.
Poonam is an unpaid seller enjoying some rights. Which of the following right of seller is not correct here?
- A.
Lien on goods
- B.
Right of stoppage in transit
- C.
Right of resale
- D.
Suit for price
Correct Answer
D. Suit for priceExplanation
The right of the unpaid seller to file a suit for price is not applicable in this scenario. This right allows the seller to take legal action against the buyer to recover the unpaid amount for the goods sold. However, since Poonam is an unpaid seller, it implies that the buyer has not yet purchased the goods from her, and therefore, the right to file a suit for price does not apply.Rate this question:
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- 2.
X purchased goods on behalf of Y by paying from his own pocket for the time being. X is about to deliver goods to Y his principal and came to know that Y became insolvent. In this case X as an agent is entitled to imply which right?
- A.
Right of indemnification
- B.
Right of stoppage in transit
- C.
Right of retainer
- D.
Right to remuneration
Correct Answer
B. Right of stoppage in transitExplanation
In this case, X acted as an agent for Y and purchased goods on Y's behalf. However, before delivering the goods to Y, X learns that Y has become insolvent. The right of stoppage in transit allows an agent to retain possession of the goods until the principal (Y) pays for them. Since Y is insolvent, X can exercise this right to protect their own interests and prevent further losses. This right ensures that X can recover the cost of the goods they purchased on behalf of Y.Rate this question:
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- 3.
X guarantees the repayment of a loan of Rs. 10,000 to Y by Z (a banker). Later Y is planning to gift something from that money to A. Who is surety here?
- A.
A
- B.
X
- C.
Z
- D.
Y
Correct Answer
B. XExplanation
X is the surety in this scenario because they have guaranteed the repayment of the loan from Y to Z. As the surety, X is responsible for ensuring that the loan is repaid if Y is unable to do so. Therefore, X has the obligation to repay the loan on behalf of Y and is the one who is ultimately liable for the debt.Rate this question:
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- 4.
Arzoo went into a restaurant and took a cup of tea. In this case there is:
- A.
No contract by Arzoo to pay for the cup of tea
- B.
An implied contract that she will pay for the cup of tea
- C.
An express contract to pay for the cup of tea
- D.
A quasi-contract to pay for the cup of tea
Correct Answer
B. An implied contract that she will pay for the cup of teaExplanation
Arzoo going into a restaurant and taking a cup of tea implies that she intends to pay for it. Although there may not have been a formal agreement or verbal contract, the act of taking the tea creates an expectation that she will pay for it. This expectation is based on the common understanding and custom in a restaurant setting where customers are expected to pay for the items they consume. Therefore, the correct answer is an implied contract that she will pay for the cup of tea.Rate this question:
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- 5.
Out of the following what type of suit is not valid or seller cannot sue it?
- A.
Suit for price
- B.
Suit for damages for non-acceptance
- C.
Suit for interest
- D.
Suit for paying partially
Correct Answer
D. Suit for paying partiallyExplanation
A suit for paying partially is not valid or the seller cannot sue for it because when a buyer pays only a part of the agreed price, it does not fulfill the contractual obligation of full payment. Therefore, the seller can only sue for the remaining unpaid amount or take legal action to enforce the full payment.Rate this question:
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- 6.
Which of the following circumstances will not cause the agency relationship to terminate?
- A.
The bankruptcy of the agent
- B.
The bankruptcy of the principal
- C.
The death of the principal
- D.
The death of the agent
Correct Answer
A. The bankruptcy of the agentExplanation
The bankruptcy of the agent will not cause the agency relationship to terminate because bankruptcy does not affect the agent's ability to act on behalf of the principal. The agent may still continue to carry out their duties and obligations as long as they are able to do so.Rate this question:
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- 7.
A finder of lost property:
- A.
May throw the goods away after three days.
- B.
Is a constructive bailee who is bound to take reasonable care of the property under the circumstances?
- C.
Has the no liability to the owner if the property is damaged.
- D.
Has expressly contracted to care for the goods.
Correct Answer
B. Is a constructive bailee who is bound to take reasonable care of the property under the circumstances?Explanation
A constructive bailee is someone who comes into possession of another person's property without their consent, such as a finder of lost property. As a constructive bailee, they have a duty to take reasonable care of the property under the circumstances. This means that they are responsible for ensuring the safety and security of the property while it is in their possession. The other options are incorrect because throwing away the goods after three days would not be considered reasonable care, having no liability for damaged property would go against the duty of care, and there is no mention of an express contract in the given information.Rate this question:
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- 8.
…………. means to make good the loss or to compensate the party who has suffered some loss.
- A.
Indemnity
- B.
Contract of Indemnity
- C.
Contract of Guarantee
- D.
Continuing Guarantee
Correct Answer
A. IndemnityExplanation
Indemnity refers to the act of making up for a loss or compensating the party who has suffered a loss. It is a legal concept that involves providing financial protection or reimbursement to the affected party. In the context of the given options, "Indemnity" is the most appropriate choice as it directly aligns with the definition provided. The other options, such as "Contract of Indemnity," "Contract of Guarantee," and "Continuing Guarantee," are related concepts but do not specifically capture the idea of compensating for a loss.Rate this question:
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- 9.
An agreement is an ………………….
- A.
Offer + enforceability
- B.
Offer + legal obligation
- C.
Offer + acceptance
- D.
Offer only
Correct Answer
C. Offer + acceptanceExplanation
An agreement is formed when there is an offer made by one party and accepted by another party. This means that one party proposes certain terms or conditions, known as the offer, and the other party agrees to those terms, known as acceptance. The combination of an offer and acceptance is necessary for the formation of a valid agreement. The other options, such as offer + enforceability or offer + legal obligation, do not capture the essential element of acceptance, which is required for an agreement.Rate this question:
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- 10.
Which of the following is not a remedy available to buyers?
- A.
Right to damages
- B.
Right to reject the goods
- C.
Right to specific performance
- D.
Right to demand replacement goods
Correct Answer
D. Right to demand replacement goodsExplanation
The right to demand replacement goods is not a remedy available to buyers. This means that if a buyer receives defective or unsatisfactory goods, they do not have the right to request a replacement. Instead, they may have other remedies such as the right to reject the goods, the right to damages (compensation for any losses incurred), or the right to specific performance (forcing the seller to fulfill their obligations). However, the option of demanding replacement goods is not one of the available remedies in this scenario.Rate this question:
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- 11.
If a buyer finds that goods have been incorrectly described, what can the buyer do?
- A.
Accept the goods, but claim compensation
- B.
Accept the goods, but sue for damages
- C.
Reject the goods, even if not defective
- D.
Only reject the goods if defective
Correct Answer
C. Reject the goods, even if not defectiveExplanation
The buyer can reject the goods, even if they are not defective, if they find that the goods have been incorrectly described. This means that the buyer has the right to refuse to accept the goods and can choose not to proceed with the purchase if the description provided does not match the actual product. This gives the buyer the option to not be bound by the purchase agreement and seek alternative options.Rate this question:
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- 12.
When a particular course of conduct is followed again and again, it becomes …………..
- A.
Statutes
- B.
Judicial precedents
- C.
Personal law
- D.
A custom
Correct Answer
D. A customExplanation
When a particular course of conduct is followed again and again, it becomes a custom. Custom refers to a practice or behavior that is widely accepted and followed within a specific community or society. It is not enforced by any formal legal system but is considered as a traditional norm or way of doing things. Customary practices often hold significant cultural and social value and may influence the behavior and beliefs of individuals within the community.Rate this question:
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- 13.
…………… lay down the rules which determine when property passes from the seller to the buyer.
- A.
Secs.18 to 25
- B.
Secs 16 to 30
- C.
Secs. 15 to 35
- D.
Secs 17 to 34
Correct Answer
A. Secs.18 to 25 -
- 14.
A ………………… is a mercantile agent engaged to buy and/or sell property.
- A.
Broker
- B.
Advisor
- C.
Agent
- D.
Principal
Correct Answer
A. BrokerExplanation
A broker is a mercantile agent engaged to buy and/or sell property. They act as intermediaries between buyers and sellers, facilitating transactions and negotiating deals on behalf of their clients. Brokers have specialized knowledge and expertise in their field, allowing them to provide valuable advice and assistance to their clients. They are typically compensated through commissions or fees based on the value of the transactions they facilitate.Rate this question:
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- 15.
An ……………… is a person employed to do any act for another or to represent another Agent in dealing with the third persons.
- A.
Agent
- B.
Agency by Express Agreement
- C.
Agency by Estoppel
- D.
Sub-agent
Correct Answer
A. AgentExplanation
An agent is a person employed to do any act for another or to represent another in dealing with third persons. An agent is authorized to act on behalf of the principal and has the power to create a legal relationship between the principal and third parties. The agent acts under the control and direction of the principal and is bound to act in the best interests of the principal.Rate this question:
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- 16.
Right to sell comes under which section:
- A.
Sec.168
- B.
Sec.167
- C.
Sec.169
- D.
Sec.170
Correct Answer
C. Sec.169Explanation
The correct answer is Sec.169. This section refers to the right to sell, which means the authority or permission granted to an individual or entity to sell a particular item or property. It is important to understand the different sections of a legal document or law in order to accurately determine the rights and responsibilities associated with specific actions or situations.Rate this question:
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- 17.
Every person is competent to contract if he is:
- A.
Major
- B.
Lunatic
- C.
Indulge in illegal act
- D.
Drunk
Correct Answer
A. MajorExplanation
The correct answer is "Major." In contract law, a person is considered competent to enter into a contract if they are of legal age, which is typically referred to as being a major. This means that they have reached the age of majority, which is usually 18 years old. Being of legal age signifies that the person has the capacity and understanding to make informed decisions and be held responsible for their contractual obligations.Rate this question:
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- 18.
Here are some essentials or characteristics of contract. Out of these, which statement is incorrect?
- A.
A contract is an agreement
- B.
A contract is enforceable by law
- C.
A contract comprises 1 party
- D.
A contract can be done in writing as well as oral.
Correct Answer
A. A contract is an agreementExplanation
A contract is not just an agreement, but a legally binding agreement between two or more parties. It is incorrect to say that a contract comprises only one party, as a contract requires the mutual consent and obligations of multiple parties.Rate this question:
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- 19.
Contracts may be classified in 4 parts according to their validity. Out of the following which 1 is not the part of contract classification?
- A.
Valid
- B.
Voidable
- C.
Void
- D.
Invalid
Correct Answer
D. InvalidExplanation
The classification of contracts based on their validity includes three categories: valid, voidable, and void. Invalid is not a part of contract classification as it does not represent a separate category. A contract is either valid, voidable, or void based on specific legal criteria. Invalid is not a recognized classification for contracts.Rate this question:
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- 20.
The doctrine of judicial precedent is also known as the doctrine of:
- A.
Stare decisis
- B.
Obiter dicta
- C.
Stare decisis & Obiter dicta
- D.
Obiter dicta & Stare decisis
Correct Answer
A. Stare decisisExplanation
The correct answer is "Stare decisis." Stare decisis is a Latin term that means "to stand by things decided." It refers to the principle in law where courts are bound to follow the precedents set by higher courts in similar cases. This doctrine ensures consistency, predictability, and stability in the legal system. It allows for the development of legal principles over time and provides guidance for judges when deciding cases.Rate this question:
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Current Version
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Aug 06, 2024Quiz Edited by
ProProfs Editorial Team -
Oct 12, 2015Quiz Created by
Abhishekydikshit
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