MBAG-204

Sri Sathya Sai Institute of Higher Learning

(Deemed to be University)
Vidyagiri, Prasanthi Nilayam
Master of Business Administration
Second Semester Examinations, May 2021
Business Law
Duration: 3 Hours 21/05/2021 Max. Marks: 100
Note: 1. Answer Sections A, B & C in the answer book provided.
2. Comply with the instructions given in the Main Answer Book carefully.

SECTION – A
(4x5=20 Marks)
I. Answer the following questions. Each question carries FIVE Marks.

1. Define Prospectus as given under Companies Act, 2013. Enunciate the “Golden Rule of Issue of
Prospectus”.

2. Briefly discuss the Provisions relating to Bouncing of Cheques as given under the Negotiable Instruments
Act, 1881.

3. Briefly Explain the various Sources of Law, based on which the legislations are enacted.

4. Rahul deals in foreign Currency. He needs counselling on maintenance of Accounts and foreign currency
under FEMA, 1999. Clearly guide him on the concept and relevant provisions relating to Authorised
Dealers.

SECTION – B
(4x10=40 Marks)
II. Answer ANY FOUR of the following questions. Each question carries TEN Marks.

5. Satish wants to enter into a contract with his vendors. The deal is made Online and they propose to enter
into a contract. You are required to counsel Satish on various essential elements to contract under section
10 of the Indian Contract Act 1872.

6. Write Short Notes on the following:

a) One Person Company Versus Sole Proprietorship.

b) Public Limited Versus Private Limited Company. (3+7 =10 Marks)

7. XYZ company have been ruling the markets in real estate sectors for 20 years. They have recently been
accused of entering into Anti-Competitive Agreement to maintain their Position in the markets. In view of
the above statement, you are required to explain provisions of Anti-Competitive Agreements under Section
3 of the Competition Act, 2002. Quote Case law wherever possible.

8. What are the Principles of Insurance on which contracts were made? Also explain various kinds of Insurance
Liability. Give Hypothetical example to illustrate your answer.

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9. “Memorandum of Association is the Charter based on which the Outsiders interact with the Companies. It
is an important tool in the hands of the shareholders to know their Company”. Do you agree with this
statement? In the light of the above statement, explain the features and Clauses of the Memorandum of
Association.

SECTION – C
(2x20=40 Marks)
III. Answer ANY TWO of the following questions. Each question carries TWENTY Marks.

10. The Indian Companies Act, 2013 has given birth to a new institution of Independent Directors. The
Provisions enacted for Powers of Directors have also been strengthened. In the light of the above statement:

a) Who are Independent Directors and what is their liability?

b) Discuss the Powers and Functions of the Directors on the Board? (10+10=20 Marks)

11. a) Mr. X executed a Bills of Exchange in favour of Mr. Y. He wishes to get it discounted before the due
date . Is he entitled to do so? Distinguish between Bills of Exchange and Promissory Note.

b) “Contract of Bailment is completed when the goods are delivered”. In view of this statement explain
the concept of Bailment and Pledge. (10+10=20 Marks)

12. FEMA is an improvisation of the provisions over FERA. The management of foreign currency is better
adhered in FEMA. In this regard:

a) Compare the features of FEMA over FERA.

b) Compare the Current account and Capital Account Transaction.

c) Provisions relating to Foreign Currency under FEMA 1999. (7+7+6=20 Marks)

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