Section –A 1 mark

1
An agreement becomes enforceable only when it is coupled with
a) legal obligation
b) moral obligation
c) social obligation
d) duty obligation
2
-----------------of the parties would render the agreement entered into
between them unenforceable in a court of law.

a) person capability

b) legal disability

c) understandability

d) affinity

3
Discharge of contract implies
a) breach of contract
b) retention of contract
c) restitution of liabilities
d) extinguishing of rights and obligations

4 A material alteration made without the consent of the other will make the
whole contract
a) void
b) voidable
c) invalid
d) valid

5 In a contract of guarantee, the primary liability is with the principal

a) guarantor
b) indemnifier
c) creditor
d) debtor

7 Negotiable instrument means

a) payable by delivery
b) deliverable instrument
c) payable to negotiator
d) transferable by delivery
8 A promissory note is containing
a)an unconditional undertaking
b)conditional undertaking
c)certain undertaking
d)payment undertaking

9 A company which controls another company is called

a) subsidiary company
b) holder company
c) statutory company
d) holding company

10 To invite public subscription to subscribe to its shares, the company has

to issue
e) share certificates
f) debenture warrants
g) legal notices
h) prospectus

11 The Information Technology Act has been passed with a view to

a) usage of computers
b) use of information
c) promote efficient delivery of govt. services
d) give model law

12 The IT Act among other things, will enable

a)legal framework for computer applications

b) legal recognition to electronic transaction/ record
c) legal interpretation of commercial transaction
d) legal solution for computer problems

13 Digital signature can be verified by the use of

a) locker key
b) public key
c) private key
d) key pair

14 cyber crime refers to

a) all criminal activities

b) activities done with criminal intent in cyber space
 c) offending human sensibilities
d) committing cognizable offence

15 Under the following circumstance the award passed by the arbitration can be set
aside when

a) procedure violates the fundamental principle

b) procedure is equally treated
c) evidence is not sufficient
d) dispute can not be solved

16 The basic rights of consumers has been defined by

a) International human rights organsiation
b) International organsiation of consumers
c) International consumer forum
d) International consumer education foundation

17 The liability in CPA extends from

a) Marketer to consumer
b) manufacturer to retailer
c) manufacturer to wholesaler
d) marketer to retailer

18 unfair trade practices means

a) falsely selling goods

b) falsely representing the first hand goods
c) falsely representing a good service
d) misleading advisement and false representation

19 The Shops and Establishments Act is a

a) Central Legislation
b) State Legislation
c) Provincial Legislation
d) Concurrent Legislation

20 Transfer of property in the goods implies

a) goods transfer
 b) price transfer
c) ownership transfer
d) sale transfer

Section –B 2 mark
1
State whether True or False

1. Coercion involves both physical and moral force

2. Active concealment of facts amounts to fraud

3. Every agreement of which the object or consideration is unlawful is void.
4. The term alien enemy means a person non-resident in the enemy country
or the enemy-occupied territory
a- true b. false
2 When a contract is performed by both the parties, the contract is
discharged
a)by due performance
b)by abondonment
c)by remission
d)by discharging rights and obligations

3 If there are several joint promisees, an offer to any one of them is a

a) legal tender
b) voidable tender
c) valid tender.
d) Illegal tender

4 The following are the two main characteristics of negotiable instruments

a) transferability
b) easy negotiability
c) receivability
d) better title to a bonafide transferee for value

5 The ‘holder’ of a negotiable instrument means any person entitled to

a) receive or recover the amount due thereon from the parties liable
 b) get the payment up on receiving it
c) the possession of the instrument in his own name
d) take the possession of an instrument for value

6 Articles of association contains

a) agreement of the company

b) rules and regulations
c) scope of the company
d) internal management

7 Preference shares are those which

e) depend upon the amount of profits available

f) are entitled for fixed rate of dividend
g) a right to be paid the amount of capital paid up
h) may issue bonus shares

8 Shifting business from paper to electronic form is facing two legal hurdles.
They are

a) new communication system

b) requirements as to writing
c) signature for legal recognition
d) increasing use of internet

9 The IT Act does not apply to

a) legally valid electronic contracts

b) cyber laws
c) Negotiable instrument Act
d) Indian Trusts Act

10 Causing intentional damage or altering information is known as

a) tracking and searching

b) tampering with information
c) affixing crime
d) hacking

11 The matters which are not arbitral are

 a) taxation

b) criminal matters

c) suits for recovery of payment obligations

d) suits for settlement of claims

Section –C 4 mark
1
Match the following

1. Social structure a) some thing in return

2. privity of contract b) void ab-initio

3. Minor’s agreement c) public policy

4. Consideration d) stranger to contract

2 Match the following

1. Abandonment a) supervening impossibility
2. frustration b) as much as is earned
3. insolvency c) waiver
4. quantum merit d) discharge by operation of law

3 Match the following

1. invalid guarantee a) insurance company

2. revocation of guarantee b) against creditor
3. indemnifier c) by notice
4. right of surety d) misrepresentation

4 Match the following

1. Holder in due course a) instrument becoming useless

2. presentment for acceptance b) dishonour by non payment
3. default in payment c) possessor for consideration
4. discharge of instrument d) bill of exchange
5 Match the following
1. Private company a) meeting
2. Perpetual succession b) restriction for membership
3. Director c) continuity
4. Resolution d) manages the affairs of the
company

6 Match the following

1. cyber crime a) asymmetric crypto system

2. encrypting b) e-tendering
3. E-commerce c) misuse of internet
4. authentication of records d) digital signature

7 Match the following

1. cost of arbitrator a) bringing parties together

2. capacity to make reference b) provisional award on
procedure
3. interim award c) capacity to contract
4. conciliation d) expenses towards arbitration