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1. _______are made to ensure that members of the society may live and work together in an orderly manner. A)customs B) traditions C)regulations D) rules

2.. if ______embodied in the law are violated, obedience needs to be enforced.

A)conduct B) rules C)regulaions D) norms

3. ________of laws is not dependent on the will of individual members.

A) obedience B) following C)abiding D)prosecuting

4. the force used to secure obedience of citizens for law is termed as ____.

A)penalizing B) sanction C) parole D)sentence

5. unless a law is_______, it ceases to be a law as it is not recognized by those persons subject to it.

A) abided B) enforced C)applied D)forced upon

6. laws can never be____.

A)rigid B)flexile C) static D) dynamic

7. _______are created for a purpose-social, economic or political.

A) laws B)rules C)regulations D)code of conduct

8. when a particular course of conduct is followed again and again, it become a______..

A) custom B)tradition C) law D)rule

9.the literal meaning of the term equity is natural_____.

A) fairness

B)balance C) justice D)equal

10. the authority of the parliament is supreme but is subject to limitations laid down by the ____

A) constitution. B)people C)rules D) statutes

11. ______are almost a universal human need.

A) gratification B)validation C) laws D)rules

12. law and business are _______disciplines.

A) complementary B)supplementary C)similar D)identical

13.________ laws have social objective.

A) corporate B) business C)mercantile


14. a trademark a copy right or a patent right are _______assets.

A) non-phsical B)tangible C) incorporeal D)real

15. the concept of _____is very important for business law.

A) lien B)services C)goods D) property

16. to constitute a contract, there must be an______ between two or more parties.

A) agreement B)commonality C) principles D)rules

17. an _____with a minor is void and cannot be ratified by him/her until he/she attains majority.

A) agreement B)contract C)pledge D) promise is essential that both parties to a contract agree to the same thing in the same sense for the creation of the________.

A) bond B) contract C)pledge D)promise

19. for a contract to be_____, it is necessary that the parties provide free consent to its terms.

A) valid B) enforceable C)legal D) binding

20. a mistake of fact is excused but a mistake of ____is inexcusable.

A) law B)terms C)conditions D)rules

21. ______refers to the termination of contractual relationship between the parties.

A)maturity B)referencing C) discharge D) breach

22. a _____of contract is one partys failure to live up to the promises under a contract without a legal excuse.

A) Renagading B) breach C) breaking D) moving back

23. a contract of indemnity must have all the essentials of a ____contract.

A)business B) sale C) valid D)future

24. a contract of guarantee is made for the _____ security. A)owners B) creditors C) receiver D)debtors

25. a_____ is entitled to demand payment from the surety as soon as the principle debtor refuses to pay or defaults in payment.

A) creditor B)owner C)debtor D)owner

26. the _________ must have acted in good faith. a) oath b) testimony c) pledge d) pledger

27. the general rule is that an agent cannot appoint an ___ a) sub-agent b) attorney c)lawyer d) agent

28. the termination of the authority of the _______causes the termination of authority of all sub-agent appointed by him. a) attorney b)lawyer c) agent d)caretaker

29. as a general rule, ______of power of attorney is not necessary.

A) registration B)notary C)notification D)stamping

30. if the deed conferring power by one to another relates to one single transaction, it is known as _____power of attorney. a) single b) one purpose c) special d) partiular

31. power of attorney is required to be embossed on non-judicial ____paper.

a) stamp b)bond c)legal d) government

32. every partner shall _______the firm for loss caused to it by his/her fraud in the conduct of the business of the firm.

.a) indemnify b)compensate c) repay d)surety

33. a ___ authority may be express or implied. a) shareholders b) partners c)stakeholders d) owners

34. partners also have to act as ______of the firm for the purpose of the firms business. a) owners b) agents c) lawyers d) representatives

35. liability of a partner stems from not complying with his duties under the ______act. .a) public enterprise b) JV c) partnership

d) SEBI outgoing partner means a partner who has ______from a firm. a) retired b)left c) died d)no issue

37._____ may be classified as existing, future and contingent. a)laws b) rules c) goods d) servces

38. goods means every kind of movable property, other than actionable claims and____. a) situations b)conditions c)terms d) money

39. _______goods means goods identified and agreed upon at the time a contract of sale is made. a) contractual b) particular c) specific d) specified

40. ______goods are a part of future goods a)sold b) existing

c) contingent d) pre-existing

41. ______goods may be either specific or generic.

A) existing B) pre existing C)sold D) particular

42. _____means the money consideration for sale of goods.

A) price B)monetary C)fiscal D)terms

43.______ is an integral part of a contract of sale.

A) price B)date C) conditions D)terms

44. the phrase property in goods means _______of goods.

A) ownership B) possession C)transfer


45 . the doctrine of caveat emptor is a fundamental principle of the law of_______ of goods. A)transfer B)possession C)title D) sale

46. section 27 lays down a general rule as to transfer of_____.

A) title B)goods C)services D)products

47.______ is defined as a voluntary transfer of possession from one person to another.

A)relinquishing B)transferring C) dispatch D) delivery

48. a _______comprises reciprocal promises.

A) pledge B)promise C) oath D) contract

49. the word ________means to retain possession of .

A) ownership B) lien C)cul-de-sac D)achoate

50. ________is where both endorsement and delivery are require for transfer of property.

A) order instrument B)bearer instrument C)negotiable instrument D)non-bearer instrument

51.________ is where the property passes to transfer by mere delivery of the instrument.

A)non-bearer instrument B) negotiable instrument C) bearer instrument D)non negotiable instrument ______instrument means an instrument that is incomplete in certain respects..

A) inchoate B)redundant C)short D)negotiable

53. a _______note is an instrument in writing containing an unconditional undertaking.

A) blank

B)power of attorney C)bank D) promissory

54. the person to whom the amount of the bill is payable is called a______.

A) payer B) payee C) drawer D)drawee

55. a ______is the usual method of withdrawing money from an account with a banker.

A)OD B) cash order C) cheque D)money order

56. a ______must be an instrument in writing.

A) cheque B) DD C)OD D)money order

57. a cheque without a _________is considered incomplete and is returned unpaid by banks.

A) amount B)name C)signature

D) date

58.______ is the process by which ownership of an instrument is transferred from one person to another.

A) negotiation B) acceptance C)transferring D)acknowledging

59. an _____is the mode of negotiating a negotiable instrument.

A)rejection B)acceptance C) endorsement D) acknowledging

60.consideration is always presumed and it is governed by _______instrument act.

A) negotiable B)non negotiable C) musical D)financial

61.the date on which the payment of an instrument falls due is called_______.

A)payday B) mayday C) maturity D)due date

62.a _______-may be dishonoured either by non-acceptance or by non-payment.

A) bill of exchange B)cheque C) DD D)OD

63. notaring is a convenient method of authenticating the fact of____.

A) misuse B) dishonor C)abuse D)honor

64.a ________ is the formal notarial certification attesting the dishonor of the bill and based on the nothing.

A) protest B) complaint C)grievance D)token

65._______ is defined as the act of drawing two diagonal or transverse parallel lines on the face of the cheque .

A) ac payee B) crossing C)drawing D)ordering

66. a paying banker is a banker on whom a _____is drawn.

A) cheque B)demand C)order D) draft

67. a bank has two major function of accepting _____and lending or investment of such deposits.

A) deposits B)fixed deposit C)term deposit D)current deposit

68.the RBI was created as a ____body and is a legal person, like any other company.

A) corporate B)legal C)government D) regulatory

69.the RBI was created under section 3 of the reserve bank of india act,_____.

A) 1934 B) 1948 C)1951 D)1956

70.section 13 imposes a _____on commission and brokerages o the sale of shares of banking companies.

A)limit B) bind

C) ceiling D)reference

71.the circulars issued by the RBI, pertaining to its _____power are binding banks.

A) mandatory B)compliant C) statutory D)legislative

72. section 21 provides that ____has the right to issue direction for controlling advances by banking companies.

A) RBI B)central bank C)commercial bank D)state bank

73. the _______rates differ for differing types of industries such as small-scale industries, agriculture etc.

A)growth B)investment C)returns D) lending

74.agreeing to the______ of an insurance policy creates a contract between the insure and the insurer.

A)payment B)condition C) terms


75.just as defect relates to goods deficiency is relevant in case of______.

A)products B) brands C) services D)providence

76. at the district level, the _______ forum is called as district forum..

A) redressal B)complaint C) consumer D)customer

77.______ includes value of sale of goods or services.

A)total B) gross C)net D) turnover

78. section 104-115 deal with the subject of suits concerning infringement of______.

A)intellectual property B)trademarks C) patents D) design

79. section 43-53 deal with the grant of _______and the rights conferred on the patentee.

A) ownership B) patents C)trademarks D)logo

80. a expression convention country is defines in section____.

A)132 B) 131 C) 133 D)134

81. ________refers to the controller general of patents, design and trade marks.

A) solicitor B)lawyer C) controller D)comptroller

82. a ______is defined as the legal monopoly provided by law to the owner of an invention or idea for limited period of time.

A)IP B)trademark C) patent D) symbol

83. authentication is a process used to confirm the _____of a person.

A)credentials B) identity C)qualification D)credibility

84. a trust as defined in section 3 of the Indian trust act, ______ A) 1882 B)1886 C)1891 D) 1894

85.every citizen of india is empowered to seek information from _______authority.

A) public B) private C)district D)municipal

86.the _______ act has been in existence for over a year


87. ______act played a signification role in creating conditions for good governance.



88.the statutory process by which winding up in achieved is called_____.

A) liquidation B)rites C)dissolution D) unravel

89. an administrator at the time of winding up is called a_______.

A) liquidator B)caretaker C)supervisor D)undertaker

90.section 291 empowers the board of directors to manage the ______of the company.

A) business B)working C) affairs D) assets

91. section 2(13) defines a_____.

A) manager B)owner C) director D) supervisor

92.equity share means a share that is not _______share (section 85).

A) unique B)ownership C)normal D) preference

93. the holders of _______shares have voting rights in proportion to the paid-up equity capital of the company.

A)rights B) preferential C) equity D)ownership

94.article of association of a company acts as a _______force between company and its member

A) contractual B)regulatory C) disciplinary D)compliant

95. ________denotes the preliminary steps undertaken for the purpose of registration and floatation of the company.

A)canvassing B)scouting C)prospectus D) promotion

96.a ______is a unique legal entity that is created by the due process of law.

A) corporation B) company C)firm D)HUF

97.the companies act________, deals with the formation and transaction of business of a company.

A)1857 B) 1952 C)1931 D) 1956

98. directorate of ______ makes provision under section 36-38

A) enforcement B) ordinance C)law D)order

99. the power of the appellate tribunal are provided under section ___ A)22 B)21 C) 28 D)26

100. section 7 deals with ______of goods and services

A) export B)import C)transfer


101.the place of head office of the commission shall be decided by the _____government.

A) state B) central C)provincial D)municipal

102.____- law is created by legislation of bodies such as the parliament.

A)mandatory B) statutory C)voluntary D)customary

103.the ___sources of Indian law are English law and principles of justice, equity and good conscience.

A)primary B)tertiary C) secondary D)

104.the ________environment of a business is a major factor regulating the conduct of business.

A) social B political C) legal D)natural

105.the idea of_______ law originates from the idea of property.

A)mercantile B)lease C) corporate D) business

106.the term _______may be describes as a bundle of right.

A)right B) ownership C)law D)rules

107._______ are subject of law.

A) persons B)people C)individuals D)groups

108.the freedom of parties is limited by ________factors.

A)three B) no C) two D)few

109.the _____contracts act makes no mention of the commencement of the indemnifiers liability.

A) french B)business C)british D) Indian

110. contracts of guarantee are sometime called ______bonds.

A) performance B)sale C)pledge D)bail

111. a contract of ______is not a contract Uberrimae fidei

A) guarantee B)sale C) promise D) pledge

112. the creditor is under an _____not to release or discharge the principal debtor.

A)agreement B) obligation C)oath D)pledge

113.the provisions of section 171 empower certain categories of bailees to exercise a _____ lien.

A) general B)special

C)particular D)non

114._______ has the authority to represent the principal in contracts. A)representative B)seller C) dealer D) agent

115. the duration of partnership may or may not be___.

A) fixed B)tenured C)variable D)transformed

116.a ____may transfer his interest in the firm by sale, mortgage or change.

A) partner B)shareholder C)bondholder D) debentureholder

117.when the relationship between all the partners of the firm comes to an end it is called _____of the firm.

A) closing B)end C) dissolution D)winding

118. condition and warranties may be either_____ or implied.

A) express B)vague C) laid-out D)explicit

119.the _____of goods is different from possession of goods.

A) ownership B) warehousing C)transferring D)owning

120. _________is to be distinguished from an agreement to sell.

A)selling B) sale C)trading D)mercantile


121.the______ is a body of rules that prescribes the conduct standard or pattern according to which people residing in that state are required to conform.

A)constitution B) law C)statutes

D) legislations

122. ________law in its application in india has to conform to the circumstances and conditions prevailing in our country.

A)french B)american C) English D) greek 123. ______law may be defined as a branch of law that prescribes a set of rules for the governance of certain transactions.

A) business B)mercantile C)criminal D)diwaani

124. ______management is incomplete without the proper study of its laws.

A)financial B)marketing C) resource D) business

125.valid means that the contract possesses all the elements of a contract as mentioned in section _ of the contracts act..

A) 10 B)11a C)11 D)10a

126.lunatics and drunks can enter into valid contracts during periods of _____but not otherwise.

A)sanity B)insanity C)somber D) lucidity

127.the word _______is derived from the French word bailer which means to deliver.

A) bailment B) bail C)surety D)bailing

128._______ is a special contract in which goods are pawned for some monetary value

A) undertaking B)agreement C)bond D) pledge

129.a _____is a mercantile agent engaged to buy and or sell property or to make bargains and contracts between the engager and third party for a commission. A) broker B)dalal C)person D)entity

130. a ______agent is one who, in consideration of an extra remuneration, called a del credere commission, guarantees the performance of the contract by the other party.

a)patent b)commission c) del credere d) omission

131. a _______is defined as the relationship between persons who have agreed to share profits of a business carried on by all, or by any of them acting for all.

a) HUF b) company c) firm d) partnership

132. all the essential elements of a valid contract must be present in a partnership as it is based on an________.. a)law b)rule c)regulation d) agreement

133.section ____ provides that a retired partner continues to be liable for all the acts of the firm done before his retirement unless he is discharged from his liability.

a) 31 b) 32 c) 23 d) 22

134. dissolution of firm always implies dissolution of_______, but dissolution of parternership need no lead to dissolution firm . a) corporation b) company c) HUF d) partnership

135.section_____ of the act defines a contract of sale as a contract whereby the seller transfer or agrees to transfer the property in goods to the buyer for a price. a) 4 b)2a c)6 d)3b

136. it is the duty of the seller to deliver goods and the buyer to accept and pay for them, in accordance with the terms of the contract of_____. a)trade b) sale c)selling d)buying

137. documents that are freely used in commercial transaction and monetary dealings are known as _______instrument. a)tradable b) ambiguous c) legal d) negotiable _______instrument is one that may be construed either as a promissory note or as a bill of exchange. a) negotiable b) ambiguous

c)tradable d)exchangeable

139_______ are an important type of negotiable instrument which is used in day to day mercantile transaction a)DD b) cheque c)OD d)FD

140.the companies are expected to hold the required amount of _____so as to carry on their business. a) credit b) debt c) capital d) money

141.______ can accept both time and demand deposits from customer.

A)NBFC B) banks C)insurance D)bonds

142. the _____has the authority to issue guidelines on internet banking that covers security, technology legal and regulatory aspect.


143)________ insurance is usually provided in four main divisions namely, life, fire, marine and accident insurance.

A)human B) commercial C)business D)mercantile 144. A _______is defined to mean any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard that is required to be maintained by any law in force or under any express or implied contract.

A)error B)fault C) defect D)deformity 145.the district forum should send a copy of admitted complaint to the opposite party mentioned in the complaint within ____days of admission.

A)20 B)7 C)14 D) 21

146. in order to ensure fair play in ______amongst businesses, the Indian parliament has passed the monopolies and restrictive trade practices act of 1969.

A)dealings B)tradings C) competition D)market

147. _____has been enacted to consolidate and amend the law relating to foreign exchange.

A) FEMA B)FERA C)FORE D)MNREGA 148. The _____Directors serves as the authority to monitor the regulation of foreign exchange.

A)FEMA B) Enforcement C)forex D)hedge fund 149. The Memorandum of association of a company is its charter that contains the fundamental conditions on which the company is_________.

A) incorporated B)made C)resolute D)formed 150. The Articles of association of a company and its bylaws are regulations that govern the ________of its internal affairs and conduct of its business

A)firm B)HUF C) management D)company

151. section _____ states that a public company limited by shares may register AOA signed by the subscribers to the memorandum.

A)23 B) 26 C)23a D)26a

152. the _______business of the company is conducted by its directors, with the participation of shareholders by way of meetings.

A)daily B) routine C)special D)particular

153. free flow_______ of enables sustained development and growth.

A)goods B)labour C)capital D) information

154. ______of the act was enacted so as to provide legal infrastructure for e-commerce and alternatives to paper-based methods of information storage and communication.

A)vision B)mission C) preamble D)goals

155. the company can raise capital by the issue of the document called______.

A)bond B)shares C)debentures D) prospectus

156.the notice for a statutory meeting should be sent ______ days prior to the meeting to every member of the company.

A) 21 B)22 C)30 D)19

157. the memorandum of association of a company is its charter that contains the fundamental conditions on which the company is______.

A) incorporated B)formed C)made D)resoluted

158. the equitable principles of law developed by the English equity court are the guiding force behind most Indian statutes on______ laws.


B) business C)mercantile D)land

159. quasi-contracts are types of agreements which ______a contract.

A) resemble B)seem C)look D)like

160. ________to contract is a legal myth as parties are constrained by the terms of the contract and contract law.

A) freedom B)leisure C)getting in D)making

161. a contract of _____is defined as a contract to perfume the promise or discharge the liability of a third person in case of his default.

A)surety B) guarantee C)promise D)sale 162. The contract of surety is not collateral to the contract of the principal debtor, but is an ______contract.

A)dependent B) independent C)legal D)void

163. a factor is a ______agent who is entrusted with the possession of goods with an authority to sell the same.

A)patent B)commission C) mercantile D)special

164. an ________ is said to be coupled with interest when authority is given for the purpose of securing some benefit to the agent.

A)royalty B)omission C)commission D) agency

165. __________can be done by delivery or endorsement and delivery depending on whether bearer or order instrument.

A)transfer B) negotiation C)exchange D)passing

166. sections 21 and 35a of the act empower the ______to regulate the business of banks by issuing directions controlling various aspects of banking.


167. the right to seek _______against unfair practices or restrictive trade practices or unscrupulous exploitation of consumer.

A)royalty B)compensation C)justice D) redressal

168. _________of practices that result in adverse effects on healthy competition is important.

A) prevention B)avoidance C)penalizing D)criminalizing

169.________ has responded to globalization by opening up its economy removing controls and resorting to liberalization.

A)north korea B) india C)nepal D)bhutan

170. ______is a contract to perform the promise or discharge the liability of a third person, in case of his/her default.

A)surety B) guarantee C)liability D)conformity

171.the essence of________ is delivery of goods by one person to another for some temporary purpose.

A) bailment B(bond C)transferring D)right

172. right to sale for a finder of lost goods is covered under section______.

A)164 B)166 C) 169 D)168

173. a pledge has a right to recover any extraordinary expenditure incurred for the________ of the goods pledge.

A) preservation B)conservation C)warehousing D)storage

174. a _--------agent is a person appointed to do some particular act or enter into some particular contract.

A)patent B) special C)commission D) particular

175. an agency is said to be coupled with _______when authority is given for the purpose of securing some benefit to the agent.

A)beneficiary B)fringe C)profit D) interest may be provided by a power of ______which follows certain principles of law.

A) attorney B)authority C)transfer D)representation

177. agency by ________arises where a person by his words or conduct with third persons leads us to believe that a certain person is his agent.

A)commission B)consent C) estoppels D)implication

178. a _______partnership is one that is formed for a particular adventure or an undertaking.

A)special B) particular C)unique D)important

179. section 2(13) defines a________.

A)manager B) director C)supervisor D)authority

180. non-voting shares as the term suggests are the shares that carry _______rights.

A)voting B)limited C) non voting D)unlimited

181. The holders of _______-shares have voting rights.

A)public B) equity C)preferential D)rights

182. The inventor can prevent others from using, replacing or selling the idea or design without _______. A) permission B)commission C)royalty D)fee

183. The expression convention country is defined in section______.

A) 133 B)132 C)131 D)142

184. ________agent refers to a person registered under the act as a patent agent for a period of time.

A) Patent B)copy right C)commission D)IP

185. The relationship of partnership arises from an ________between the persons concerned.

A)memorandum B)deed C) agreement D)resolution

186. _________, in law, means to end a legal entity or agreement such as a marriage, adoption or corporation.

A)winding up B) Dissolution C)shutting down D)closing

187. A _________ is a company that is not registered with the state as a limited liability company or corporation.

A) proprietorship B)firm C)HUF D)partnership

188. A ________may transfer his interest in the firm by sale, mortgage or charge.

A)shareholder B) partner C)stakeholder D)bondholder

189. Particular _______means the right to retain goods in respect of the claim that is due.

A) lien B)claim C)claimant D)surety

190. where a debt has been guaranteed by more than one person, they are called_______.

A) duo-sureties B)mono-sureties C) bi-sureties D) co-sureties


191. Explain the meaning of law and give its characteristics.

Answers: Page No. 2

192. What are the basic legal concepts?

Answers: Page No. 12-14

193. What is Valid contract? Give its characteristics.

Answers: Page No. 22

194. Define and explain quasi contract.

Answers: Page No. 35

195. Write the meaning and purpose of contract of guarantee.

Answers: Page No.43, 44

196. Explain the circumstances under which a surety may be discharged from the liability by the conduct of the creditor.

Answers: Page No. 53-55

197. Write and explain the duties of bailor an bailee.

Answers: Page No. 63-65

198. what are the respective rights and duties of a pawnor and a pawnee?

Answers: Page No.73-75

199. Describe the rights of an agent against his principle.

Answers: Page No. 89, 90

200. write the classification of agents.

Answers: Page No. 85-87

201. What is partnership? Briefly explain its features.

Answers: Page No. 101, 102

202. Explain the procedure for registering a partnership firm.

Answers: Page No. 104

203. Explain the term Dissolution of partnership firm and write the ways in which it dissolve.

Answers: Page No. 112, 113

204. what are the essentials of a contract of sale under the sales of goods act, 1930?

Answers: Page No. 122-124

205. What are the remedies available to a seller for breach of contract of sale?

Answers: Page No. 134-136

206. What do you mean by negotiable instruments? What are the various types of negotiable instruments recognized by the Negotiable Instrument Act, 1881?

Answers: Page No. 142,143

207. Define the term Holder and Holder in due Course.

Answers: Page No. 150-152

208. what are the powers of the central government with respect to regulation of banking sector?

Answers: Page No. 169-174

209. What are the key recommendations of Malhotra Committee report?

Answers: Page No. 180, 181, 182

210. Describe the main feature of the Consumer Protection Act, 1986.

Answers: Page No. 187, 188

211. Examine the rights of a consumer enshrined under the consumer protection act, 1986.

Answers: Page No. 191, 192

212. Describe the provision as regards prohibition of anti-competitive agreement.

Answers: Page No. 207

213. Explain the powers and functions of competition commission of India.

Answers: Page No. 211-213

214. what are the duties and powers of an authorised person under FEMA?

Answers: Page No 230,231

215. members of the Appellate Tribunal are public servants, justify.

Answers: Page No. 237, 238

216. What do you mean by memorandum of association? What does it contain?

Answers: Page No. 250, 251

217. What are the different kinds of general meetings of a company?

Answers: Page No. 261-263

218. Explain the procedure for seeking information under RTI Act, 2005.

Answers: Page No. 273, 274

219. What are the limitations of the Information Technology Act, 2000.

Answers: Page No. 286-288

221. Define a patent. Describe the procedure for obtaining a patent.

Answers: Page No. 294-298

221. what are the acts that are not infiringement of copyright?

Answers: Page No. 304-308

222. what are the rights that a patentee acquires under the Act?

Answers: Page No. 299, 300

223. Explain the process of winding up of a company.

Answers: Page No. 265

224. what are the methods in which banking business is regulated in india?

Answers: Page No. 172-174

225. define Goods and classify them.

Answers: Page No. 124, 125