Q1 The bailment of goods as security for payment of a debt is called

a) Lien
b) Mortgage
c) Hypothecation
d) Pledge
Q2 Which of the following agents are treated as non-mercantile agents?
a) Factors
b) Auctioneer
c) Broker
d) Insurance agent
Q3 In which of the following cases an agency is terminated other than by operation of Law?
a) On performance of the contract
b) By mutual agreement
c) On the insolvency of the principal
d) On the destruction of the subject matter
Q4 The right of a person to retain possession of some goods belonging to another until some
debt or claim of the person in possession is satisfied, is known as
a) Bailment
b) Pledge
c) Hypothecation
d) Lien
Q5 Who enjoys the right of subrogation in a contract of indemnity?
a) Creditor
b) Principal debtor
c) Indemnifier
d) Indemnified
Q6 General Insurance is a
a) Voidable contract
b) Wager
c) Contract of guarantee
d) Contract of indemnity

Q7 Which of the following is not a contract of bailment?
a) Lease
b) Money deposited in a bank account
c) Acceptance of articles by post office as V.P.P.
d) Acceptance of goods by a transport company
Q8 If the goods of the bailor gets mixed up with the like goods of the bailee by the act of an
unauthorized third party, the cost of separation will have to be borne by
a) Bailor
b) Bailee
c) The third party
d) Bailor & bailee in proportion of their share of goods
Q9 In case of a pledge, the pawnee
a) Can retain the goods, until the debt is paid
b) Can retain the goods for payment of interest due on debt
c) \can not retain the goods for necessary expenses incurred in respect of goods pledged
d) Both (a) & (b) above
Q10 The liability of a hotel keeper in respect of goods belonging to a guest is that of a
a) Pawnee
b) Surety
c) Bailee
d) Acceptor