Business Law

Amity Centre for eLearning

ASSIGNMENT
PROGRAM: SEMESTER:
Subject Name : Permanent Enrollment Number (PEN) : Roll Number(SEN) : Student Name : INSTRUCTIONS a) Students are required to submit all three assignment sets. ASSIGNMENT Assignment A Assignment B Assignment C b) c) d) e) DETAILS Five Subjective Questions Three Subjective Questions + Case Study 45 Objective Questions MARKS 10 10 10

Total weightage given to these assignments is 30%. OR 30 Marks All assignments are to be completed as typed in word/pdf. All questions are required to be attempted. All the three assignments are to be completed by due dates (specified from time to time) and need to be submitted for evaluation by Amity University. ( √ ) Tick mark in front of the assignments submitted Assignment ‘A’ Assignment ‘B’ Assignment ‘C’

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Q3 What are the rights of a finder of a good under the Indian contract Act? Q4 For every valid agreement there should be a consideration. Copyright© 2010 Amity University . Explain any four element of a contract. Comment Q5 Explain the rights of an unpaid seller under Indian sales of goods Act.Business Law ASSIGNMENT ‘A’ Q1 What is business environment? What are the benefits & limitations of environmental analysis? Q2 Define contract.

Q2 Explain various types of companies. 100 should be paid by him immediately and Rs 200 more in two monthly equal installments. It was further agreed that if the radio is found defective the customer may return it within a week but not later.Business Law ASSIGNMENT ‘B’ Q1 What is a negotiable instrument. The customer makes default in paying the last installment. Is the bookseller bound to sell the book to X? Copyright© 2010 Amity University . The bookseller refuses to sell saying that the book has already been sold to someone else and he does not have another copy of that book in the stock. CASE STUDY: Case1 A dealer in radios gives a ‘Murphy’ radio to a customer on the terms that Rs. explain its characteristics. Can the radio dealer take back the radio on his default? Case2 X sees a book displayed in a shelf of a book shop with a price tag of Rs. 85 on the counter and asks for the book. 85. X tenders Rs. Q3 What relief is/are available to the consumer under Consumer Protection Act.

Copyright© 2010 Amity University .Business Law ASSIGNMENT ‘C’ Q1 Any person is a holder in due course if he has obtained the negotiable instrument a) b) c) d) For consideration By gift Before its maturity Both (a) & (c) above Q2 Michael Porte’s 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. Q6 Which of the following amounts to reduction of share capital under section 100 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. Consumer Forums do adjudicate dispute-involving scale of pay Q5 In which of the following instances. 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. However subsequently. the UTI extended the maturity date by two years. The essence of the scheme was that the sum of money deposited with the UTI would grow 21 times in 28 years. Can I approach a Consumer Court? a) Yes you can seek relief in a consumer court b) No you can’t seek relief in a consumer court Q4 Can Consumer Forums adjudicate disputes involving scale of pay? a) Yes. 1956? (a)Redemption of redeemable preference shares under the provisions of Section 80 and 81 of the Companies Act. the collecting banker shall not be liable for conversion to the true owner under the Negotiable Instruments Act. Consumer Forums do adjudicate dispute-involving scale of pay b) No.

Q11 The articles of association of Rathi Informatics Ltd. Presently there are 12 directors on the Board of the company. 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. there cannot be a guarantee (d) There are always three parties in a contract of guarantee (e)Where the principal debtor’s liability becomes unenforceable because of illegality. Q10 Which of the following statements is false in respect of a contract of sale under the Sale of Goods Act. 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. 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. provided for a maximum of 18 directors on the Board. Which of the following statements is correct in respect of these circumstances under the Companies Act. the buyer may rescind the contract (d)In a sale. therefore. 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 surety cannot be made liable on the said debt. The maximum period for which Mr. Q8 Mr. Q9 Which of the following statements is false in respect of a contract of guarantee under the Indian Contract Act.Business Law Q7 Which of the following statements is false in respect of offer and it’s acceptance under the Indian Contract Act. if there is no existing liability. 1956? (a)As the proposed increase is within the maximum permissible number fixed by the articles only an ordinary resolution is required Copyright© 2010 Amity University . 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. Dheeraj is a director of Laxmi Ltd. The company wishes to increase the strength of its Board to 15.. 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. which failed to file its annual returns from the year 2003-04.

Q13 Which of the following statements is false in respect of consideration under the Indian Contract Act. Q15 Which of the following statements is false in respect of dividend under the Companies Act. 1872? (a) Consideration given at the behest of third parties will not be valid consideration (b)Inadequacy of consideration invalidates a contract (c) Consideration must be real and not illusory (d) Performance of an existing legal duty will not constitute valid consideration (e) Forbearance or abstinence amounts to valid consideration. a special resolution as well as approval of the National Company Law Tribunal (NCLT) is required. only the amount of dividend which is due in the current year will have to be paid to the holders (e)The preference shareholder cannot sue the company for dividends. all the faults in the goods bailed to the bailee. a special resolution as well as approval of the Central Government is required (e)As the proposed increase is beyond 12. 1872? (a)The bailor is bound to disclose. the shareholders of the class which has priority are entitled to their preferential dividend before any dividend is paid to other shareholders (b)Cumulative preference shareholders are entitled to receive all dividends which are in arrears before any dividend is paid on equity shares (c)Where cumulative preference shares have been issued at different times. 1956? (a)Dividend is to be paid only in cash (b)Before payment of interim dividend a company must transfer to reserves the prescribed percentage of estimated profits arrived at after providing for current year’s depreciation and arrears of depreciation/loss Copyright© 2010 Amity University . a special resolution is required (c)As the proposed increase is within the maximum permissible number fixed by the articles only an ordinary resolution as well as approval of the Central Government is required (d)As the proposed increase is beyond 12.Business Law (b)As the proposed increase is beyond 12. of which the bailor is aware (b)The bailee will have to bear all the ordinary expenses incurred by vitue of the bailment (c)The bailor is responsible to the bailee for any loss sustained by him in case the bailor is not entitled to make the bailment or to receive back the goods (d)The bailor is not responsible to the bailee for any loss sustained by him in case of premature termination of a gratuitous bailment (e)It is the duty of the bailor to receive back the goods after the purpose is achieved. Q12 Which of the following statements is false in respect of dividend on preference shares? (a)Where there are two or more types of preference shares. Q14 Which of the following statements in respect of bailment is false under the Indian Contract Act. the arrears of dividend will have to be paid to all the preference shareholders equally (d)In case of non-cumulative preference shares. unless the company has declared the same and did not pay the amount.

Q20 Which of the following is not a foreign bill under the Negotiable Instruments Act. payable in Kuala Lumpur. payable in India (c) A bill drawn in India upon a resident of Kuala Lumpur. 1881? (a) A bill drawn in Singapore upon a resident of India.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 company’s properties (e)Power to appoint sole selling agents. payable in Kuala Lumpur (b) A bill drawn in Kuala Lumpur upon a resident of Singapore. payable in Singapore (d) A bill drawn in India upon a resident of India. 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. 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. payable in Kuala Lumpur (e) A bill drawn in Singapore upon a resident of Singapore. Q19 Which of the following is not excluded for the purpose of counting maximum number of directorships under section 275 of the Companies Act. Q17 Which of the following agreements is not valid under the Contract Act. Q18 As per section 166 of the Companies Act.Business Law (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. 1956.50. 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. Copyright© 2010 Amity University . 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.

Mr. 2006 at the same Board meeting. then he can retain the bailed goods until his dues are paid Copyright© 2010 Amity University . 1956? (a)Mr. Pankaj shall hold the office as an additional director as long as he intends to (d)Mr. the pawnee can retain the pledged goods as collateral security (b)When the pawnor fails to perform his part of the promise. Q24 Which of the following statements is false under the Companies Act. 1872? (a)When the pawnor defaults in payment of the principal debt . Pankaj shall vacate the office of the managing director (e)Mr. 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. Pankaj shall hold the office as an additional director upto the conclusion of any general meeting (c)Mr. Pankaj who was appointed as an additional director at the Board meeting held on December 31. 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. Q25 Which of the following statements is false in respect of rights of a bailee under the Indian Contract Act. Q22 Which of the following statements is false in respect of a pawnee under the Indian Contract Act. Pankaj was also appointed as a managing director for a period of five years with effect from January 01. Which of the following statements is true in respect of an additional director under the Companies Act. 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.Business Law 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. Pankaj shall hold the office of the managing director till the completion of five years. Q23 Mr. 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. Pankaj shall hold the office as an additional director till the completion of five years (b)Mr. 1872? (a)Where the bailee has rendered any service or exercised his skill in respect of the goods bailed.

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. Q26 Section 165 of the Companies Act. Hiten Desai paid the expenses incurred by Premchand and asked him to return the diamond ring to him. The true owner wishes to obtain possession of the car. the manager of Divya Jewellers. This fact was also not known to the auctioneer. Q29 At a public auction a car was put up for sale and as Mr. Ramlal was the highest bidder. Surat and handed it over to Premchand Bhatia. with a request to hand it over to the true owner. Ramlal did not get any title against the true owner Copyright© 2010 Amity University . 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.Business Law (b)If the bailee has agreed to refrain from exercising the right of lien or has waived his right. Q27 Hiten Desai picked up a diamond ring from the floor of Divya Jewellers. The true owner could not be traced in spite of best efforts of Premchand. Under these circumstances which of the following statements is true under the Sale of Goods Act. it was discovered that the car was a stolen one. but also other goods in the possession of the bailee belonging to the bailor. Q28 Under the Companies Act. Later. 1956. 1930? (a)Mr. in whose place he is appointed. 1956. he got the car. 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. 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. Which of the following statements is true under the Indian Contract Act. then he cannot exercise the same (c)The right of particular lien will be revived. 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 it’s members unlimited (d) An independent private company (e) A government company registered as a private company.

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. New Delhi’ within two transverse parallel lines (e)A cheque bearing across its face the words ‘Citi Bank. Ramlal had bought at a public auction (c)As Mr. Daryaganj Branch. Mr.5. 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.Business Law (b)The true owner cannot recover any possession as Mr. voluntarily residing in a foreign country. 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 auditor’s 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. Q32 Which of the following persons is incompetent to enter into a valid contract under the Indian Contract Act.000 Copyright© 2010 Amity University .5. New Delhi’ without two transverse parallel lines. 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. 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.000 or the nominal value of one share where it exceeds Rs. Q31 Which of the following instances is not treated as ‘crossing’ under the Negotiable Instruments 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.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. Ramlal had purchased the car in good faith. Karol Bagh Branch.

Ankit. But the company neglected to reply/ respond for a period of two months. Ankit has to conduct the general meeting and pass resolutions for changing the directors. Which of the following statements is true in respect of consequences of failure of Silktech Ltd. Q34 Mr. to reply under the provisions of the Companies Act. Ankit can sell the assets of the company and take his money (c)Mr. 1872? (a)Agreements by way of wager (b)Agreements contingent on impossible events (c)Agreements made under a mutual mistake of fact (d)Agreement induced by fraud (e)Agreements by incompetent parties.000 (along with interest). a creditor of Silktech Ltd. Ankit has to file a complaint to the Central Government (d)Mr. issued a demand notice by registered post at the company’s registered office to payback his loan amount worth Rs. Q36 Which of the following agreements is voidable under the Indian Contract Act.50. Q35 Which of the following casual vacancies of directors cannot be filled by Board of directors under the Companies Act.Business Law (c)The qualification shares required to be taken up by a director must be purchased from the company (d)Share warrants will not count for the purpose of share qualification (e)Any provision in the articles requiring a person to obtain qualification shares before his appointment as director or within a period shorter than two months of his appointment shall be void.1. Q37 Which of the following statements is true under the Negotiable Instruments Act. Q38 Which of the following is an illegal agreement under the Indian Contract Act. 1881? (a) Every holder is a holder in due course (b) Every holder in due course is a holder for value (c) Every holder for value is a holder in due course (d) A holder in due course need not have taken the instrument in good faith (e) Holder in due course may be party to the fraud. 1956? (a) A vacancy caused by the death of a director (b) A vacancy caused by the resignation of a director (c) A vacancy caused by the resignation of nominee director of a financial institution (d) A vacancy caused due to disqualification of a director (e) A vacancy caused due to failure of an elected director to assume office. Ankit has no remedy for the negligent conduct of the company (b)Mr. 1872? (a)Agreement by way of wager (b)Agreeing to sell a house for paying money lost in gambling (c)Hire of a truck knowingly for bringing goods which are prohibited Copyright© 2010 Amity University . 1956? (a)Mr. Ankit can approach the National Company Law Tribunal (NCLT) for winding up of the company (e)Mr.

Q40 Which of the following matters requires passing of special resolution and also the approval of the Central Government under the Companies Act. it is called an (a) Inchoate instrument (b) Escrow (c) Accommodation bill (d)Trade bill (e) Ambiguous instrument. Q39 Under the Negotiable Instruments Act. and not for the purpose of transferring absolutely property therein. 1956? (a) Increase in the paid up capital (b) Rectification of name of the company under section 22 of the Companies Act. 1881.Business Law (d)Agreement not to enforce promise through legal means (e)Agreements in restraint of trade.1956 (c) Payment of interest out of capital (d) Sub-division of shares (e) Appointment of company secretary. Copyright© 2010 Amity University . when a negotiable instrument is delivered conditionally or for a special purpose as a collateral security or for safe custody only.