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ASSIGNMENTS
PROGRAM:
SEMESTER-I
Subject Name
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Study COUNTRY
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Permanent Enrollment Number (PEN) :
Roll Number
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Student Name
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INSTRUCTIONS
a) Students are required to submit all three assignment sets.
ASSIGNMENT
Assignment A
Assignment B
Assignment C
DETAILS
Five Subjective Questions
Three Subjective Questions + Case Study
45 Objective Questions
MARKS
10
10
10
b)
c)
d)
e)
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ASSIGNMENT C
Q1 Any person is a holder in due course if he has obtained the negotiable instrument
a) For consideration
b) By gift
c) Before its maturity
d) Both (a) & (c) above
Q2 Michael Portes Five Forces Model includes:
a) Threat of Substitutes
b) Bargain Power of supplier
c) Bargain Power of Government
d) Both (a) & (b)
Q3 I had applied for subscription in Rajlakshmi scheme of UTI. The essence of the
scheme was that the sum of money deposited with the UTI would grow 21 times in 28
years. However subsequently, the UTI extended the maturity date by two years. Can I
approach a Consumer Court?
a) Yes you can seek relief in a consumer court
b) No you cant seek relief in a consumer court
Q4 Can Consumer Forums adjudicate disputes involving scale of pay?
a) Yes, Consumer Forums do adjudicate dispute-involving scale of pay
b) No, Consumer Forums do adjudicate dispute-involving scale of pay
Q5 In which of the following instances, the collecting banker shall not be liable for
conversion to the true owner under the Negotiable Instruments Act, 1881?
(a)The collecting bank advances money to the customer against the cheque even before
the cheque is realized
(b)The uncrossed cheque given to the collecting bank for collection is crossed by the
banker
(c)The payment is received by the collecting bank on behalf of a person who is not a
customer of the bank
(d)The collecting bank is a holder for value
(e)The collecting bank is acting as an agent for receiving the payment.
Q6 Which of the following amounts to reduction of share capital under section 100 of the
Companies Act, 1956?
(a)Redemption of redeemable preference shares under the provisions of Section 80 and
81 of the Companies Act, 1956
(b)Forfeiture of shares for non-payment of calls
(c)Payment of dividend out of share premium
(d)Surrender of shares to a company
(e)Reduction of nominal share capital of a company by canceling any shares which have
not been taken by any person.
Q7 Which of the following statements is false in respect of offer and its acceptance
under the Indian Contract Act, 1872?
(a) An offer will be valid only if it is communicated to the offeree
(b)A person who acts according to the terms of an offer which has not been
communicated to him will not be deemed to have accepted the offer
(c)The communication of the offer must be made with an intention to obtain the assent of
the offeree
(d)A mere intent of acceptance will not suffice, the acceptance must be communicated to
the offeror
(e)The mode of rejection of an offer must be specified in order to constitute a valid offer.
Q8 Mr. Dheeraj is a director of Laxmi Ltd., which failed to file its annual returns from
the year 2003-04. The
maximum period for which Mr. Dheeraj will be disqualified from becoming a director in
any public limited
company is
(a) 3 years
(b) 5 years
(c) 7 years
(d) 8 years
(e) 10 years.
Q9 Which of the following statements is false in respect of a contract of guarantee under
the Indian Contract Act,
1872?
(a) Guarantee given for a time barred debt is valid
(b) A guarantee may be given retrospectively for an existing debt
(c)A contract of guarantee presupposes the existence of a debt, therefore, if there is no
existing liability, there cannot be a guarantee
(d) There are always three parties in a contract of guarantee
(e)Where the principal debtors liability becomes unenforceable because of illegality, the
surety cannot be made liable on the said debt.
Q10 Which of the following statements is false in respect of a contract of sale under the
Sale of Goods Act, 1930?
(a)Title to goods is immediately transferred to the buyer
(b)A contract of sale is an executed contract
(c)In case of default by the seller, the buyer may rescind the contract
(d)In a sale, a breach of condition can only be treated as a breach of warranty
(e)In a contract of sale the goods are specified and ascertained.
Q11 The articles of association of Rathi Informatics Ltd. provided for a maximum of 18
directors on the Board. Presently there are 12 directors on the Board of the company. The
company wishes to increase the strength of its Board to 15. Which of the following
statements is correct in respect of these circumstances under the Companies Act, 1956?
(a)As the proposed increase is within the maximum permissible number fixed by the
articles only an ordinary resolution is required
(c)A final dividend for any financial year can be declared and paid only when the balance
sheet and profit and loss account are presented to the shareholders at the AGM
(d)The shareholders can approve the recommended rate of dividend or lower the same,
but cannot increase the amount of dividend
(e)A dividend once declared cannot be revoked even with the consent of all the
shareholders.
Q16 Which of the following powers may be exercised by the board of directors without
obtaining consent of the company at a general meeting?
(a)Power to contribute to the welfare of its employees any amount less than Rs.50,000
(b)Power to borrow in excess of capital and reserves of the company
(c)Power to remit debt due by a director
(d)Power to invest compensation amounts received on compulsory acquisition of any of
the companys properties
(e)Power to appoint sole selling agents.
Q17 Which of the following agreements is not valid under the Contract Act, 1872?
(a)An agreement for training a minor in a particular trade
(b)An agreement between a minor agent and his major principal
(c)An agreement made by the certified guardian of a minor with authority for benefit of
minor
(d)An agreement made by a minor agent on behalf of his principal
(e)An agreement by a minor to repay a loan taken for supply of necessaries to him during
his minority.
Q18 As per section 166 of the Companies Act, 1956, the first annual general meeting of a
company should be held within
(a) 6 months of its incorporation
(b)12 months of its incorporation
(c)15 months of its incorporation
(d)18 months of its incorporation
(e)24 months of its incorporation.
Q19 Which of the following is not excluded for the purpose of counting maximum
number of directorships under section 275 of the Companies Act, 1956?
(a)Directorship in a private company
(b)Directorship in a private company which is the holding company of a public company
(c)Directorship in a unlimited company
(d)Directorship as an alternate director
(e)Directorship in an association not carrying on business for profit.
Q20 Which of the following is not a foreign bill under the Negotiable Instruments Act,
1881?
(a) A bill drawn in Singapore upon a resident of India, payable in Kuala Lumpur
(b) A bill drawn in Kuala Lumpur upon a resident of Singapore, payable in India
(c) A bill drawn in India upon a resident of Kuala Lumpur, payable in Singapore
(d) A bill drawn in India upon a resident of India, payable in Kuala Lumpur
(e) A bill drawn in Singapore upon a resident of Singapore, payable in Kuala Lumpur.
Q21 A prospectus once registered with the Registrar Of Companies (ROC) should be
issued within
(a) 14 days from the date of registration with ROC
(b) 21 days from the date of registration with ROC
(c) 30 days from the date of registration with ROC
(d) 60 days from the date of registration with ROC
(e) 90 days from the date of registration with ROC.
Q22 Which of the following statements is false in respect of a pawnee under the Indian
Contract Act, 1872?
(a)When the pawnor defaults in payment of the principal debt , the pawnee can retain the
pledged goods as collateral security
(b)When the pawnor fails to perform his part of the promise, the pawnee may sell the
pledged goods after giving the pawnor a reasonable notice of sale
(c)When the pawnor defaults in payment of the principal debt the pawnee cannot recover
from the pawnor any deficit between the debt due and sale price
(d)When the pawnor defaults in payment of the principal debt, the pawnee can file a suit
for breach of contract against the pawnor
(e)The pawnee can sue the pawnor for any extraordinary expenses incurred by him for
the preservation of the goods pledged.
Q23 Mr. Pankaj who was appointed as an additional director at the Board meeting held
on December 31, 2005 continues to be in his office on the ground that the annual general
meeting of the company for the year 2006 was not held as required under the Act. Mr.
Pankaj was also appointed as a managing director for a period of five years with effect
from January 01, 2006 at the same Board meeting. Which of the following statements is
true in respect of an additional director under the Companies Act, 1956?
(a)Mr. Pankaj shall hold the office as an additional director till the completion of five
years
(b)Mr. Pankaj shall hold the office as an additional director upto the conclusion of any
general meeting
(c)Mr. Pankaj shall hold the office as an additional director as long as he intends to
(d)Mr. Pankaj shall vacate the office of the managing director
(e)Mr. Pankaj shall hold the office of the managing director till the completion of five
years.
Q24 Which of the following statements is false under the Companies Act, 1956?
(a) A director must be a member of the company
(b) Minimum seven persons are required for incorporation of a public company
(c) Proxy has no right to speak in the general meeting
(d) Company having profits need not declare dividends
(e) A private company cannot issue prospectus.
Q25 Which of the following statements is false in respect of rights of a bailee under the
Indian Contract Act, 1872?
(a)Where the bailee has rendered any service or exercised his skill in respect of the goods
bailed, then he can retain the bailed goods until his dues are paid
(b)If the bailee has agreed to refrain from exercising the right of lien or has waived his
right, then he cannot exercise the same
(c)The right of particular lien will be revived, if the bailee gets possession of the bailed
goods after parting with the same in the first place
(d)The right of lien can be exercised so long as the bailee has the possession of the goods
(e)The bailee may retain not only those goods of the bailor in respect of which some
particular service has been rendered, but also other goods in the possession of the bailee
belonging to the bailor.
Q26 Section 165 of the Companies Act, 1956, in respect of conduct of statutory meeting
is applicable to
(a) A private company converted into a Public Company within 6 months of its
incorporation
(b) A private company, which is a subsidiary of a public company
(c) A public company having liability of its members unlimited
(d) An independent private company
(e) A government company registered as a private company.
Q27 Hiten Desai picked up a diamond ring from the floor of Divya Jewellers, Surat and
handed it over to Premchand Bhatia, the manager of Divya Jewellers, with a request to
hand it over to the true owner. The true owner could not be traced in spite of best efforts
of Premchand. Hiten Desai paid the expenses incurred by Premchand and asked him to
return the diamond ring to him. Which of the following statements is true under the
Indian Contract Act, 1872?
(a)Premchand is under no obligation to return the ring to Hiten Desai as the ring was
found on the floor of his shop
(b)Premchand is under an obligation to return the diamond ring only to the true owner
(c)Premchand and Hiten Desai can share the value of the diamond ring equally
(d)Hiten Desai being the finder of lost goods can retain the diamond ring against
everyone except the true owner
(e)Premchand can retain the diamond ring against everyone including the true owner.
Q28 Under the Companies Act, 1956, up to what date a director appointed to fill casual
vacancy shall hold office?
(a) The last day on which the annual general meeting should have been held
(b) Until the original director, in whose place he is appointed, returns back
(c) Till the date up to which the director in whose place he is appointed would have held
office
(d) Up to the next extraordinary general meeting
(e) Up to the conclusion of the annual general meeting.
Q29 At a public auction a car was put up for sale and as Mr. Ramlal was the highest
bidder, he got the car. Later, it was discovered that the car was a stolen one. This fact was
also not known to the auctioneer. The true owner wishes to obtain possession of the car.
Under these circumstances which of the following statements is true under the Sale of
Goods Act, 1930?
(a)Mr. Ramlal did not get any title against the true owner
(b)The true owner cannot recover any possession as Mr. Ramlal had bought at a public
auction
(c)As Mr. Ramlal had purchased the car in good faith, Mr. Ramlal can enjoy possession
of the car
(d)The true owner can file a suit against the auctioneer for fraudulently selling a stolen
car
(e)The auctioneer is personally liable to the true owner for damages only and the true
owner has no right to
obtain possession of the car.
Q30 Which of the following statements is false under the Companies Act, 1956?
a)The Board of directors should authenticate the accounts before submission to auditors
(b)The Profit and Loss account should reveal the details of auditors remuneration
(c)The provision of depreciation is necessary to show true and fair picture of the accounts
(d)Company with a paid up capital of Rs.2 crores is required to form an audit
committee
(e)The first auditor usually holds office till the conclusion of the first annual general
meeting.
Q31 Which of the following instances is not treated as crossing under the Negotiable
Instruments Act, 1881?
(a)A cheque bearing across its face the words account payee without two transverse
parallel lines
(b)A cheque bearing across its face the words not negotiable with two transverse
parallel lines
(c)A cheque bearing across its face the words not exceeding rupees two hundred within
two transverse parallel lines
(d)A cheque bearing across its face the words HDFC Bank, Karol Bagh Branch, New
Delhi within two transverse parallel lines
(e)A cheque bearing across its face the words Citi Bank, Daryaganj Branch, New Delhi
without two transverse parallel lines.
Q32 Which of the following persons is incompetent to enter into a valid contract under
the Indian Contract Act, 1872?
(a)The official assignee of an adjudged insolvent
(b)A person of the age of twenty years for whose estate a guardian has been appointed by
the Court
(c)A person who is a foreign diplomat
(d)A convict after the expiry of his sentence
(e)An Indian, voluntarily residing in a foreign country.
Q33 Which of the following statements is false in respect of qualification shares to be
held by a director of a company under the Companies Act, 1956?
(a)A director will have to take up qualification shares only if required by the articles of
association
(b)The nominal value of the qualification shares shall not exceed Rs.5,000 or the nominal
value of one share where it exceeds Rs.5,000