McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
Chapters
| 1. |
The Sale of Goods Act, 1930 came into force on |
| A. | 1st day of july 1930 |
| B. | 1st day of january 1930 |
| C. | 1st day of august 1930 |
| D. | 1st day of september 1930 |
| Answer» A. 1st day of july 1930 | |
| 2. |
Which law governs the sale of movable property in India? |
| A. | transfer of property act, 1872 |
| B. | sale of goods act, 1930 |
| C. | indian contract act, 1872 |
| D. | all of the above |
| Answer» B. sale of goods act, 1930 | |
| 3. |
A contract of sale may be |
| A. | oral |
| B. | written |
| C. | always expressed |
| D. | either (a) & (b) |
| Answer» D. either (a) & (b) | |
| 4. |
‘Delivery’ within the meaning of the Sale of Goods Act can be |
| A. | symbolic |
| B. | actual |
| C. | actual |
| D. | either (a) or (b) or (c) |
| Answer» D. either (a) or (b) or (c) | |
| 5. |
The term ‘possession of goods’ means |
| A. | ownership of goods |
| B. | custody of goods |
| C. | both (a) & (b) |
| D. | none of these |
| Answer» B. custody of goods | |
| 6. |
The term ‘Goods’ in the Sale of Goods Act means |
| A. | subject matter of the contract of sale |
| B. | specific goods only |
| C. | ascertained goods only |
| D. | unascertained goods only |
| Answer» A. subject matter of the contract of sale | |
| 7. |
The goods which are to be produced by the seller after the contract of sale is made are known as |
| A. | contingent goods |
| B. | unascertained goods |
| C. | future goods |
| D. | none of the above |
| Answer» C. future goods | |
| 8. |
Where money is exchanged by one person for some money with another person, the transaction is known as |
| A. | barter |
| B. | exchange |
| C. | money sale |
| D. | none of the above |
| Answer» B. exchange | |
| 9. |
A Sale of Goods under the Sale of Goods Act, 1930 includes |
| A. | a jus in personam |
| B. | a jus in rem |
| C. | both (a) & (b) |
| D. | neither (a) & (b) |
| Answer» B. a jus in rem | |
| 10. |
Where no price is fixed by express agreement, the buyer shall pay the seller |
| A. | lowest price |
| B. | reasonable price |
| C. | suitable price |
| D. | adhoc price |
| Answer» B. reasonable price | |
| 11. |
A stipulation in a contract may be |
| A. | condition |
| B. | warranty |
| C. | neither (a) & (b) |
| D. | both (a) & (b) |
| Answer» D. both (a) & (b) | |
| 12. |
A ‘Condition’ under the Sale of Goods Act has been defined as a stipulation |
| A. | collateral to the main purpose of the contract |
| B. | main purpose of contract |
| C. | essential to the main purpose of the contract |
| D. | all of the above |
| Answer» C. essential to the main purpose of the contract | |
| 13. |
Which of the following is correct? |
| A. | a condition is a stipulation, not essential to the main purpose of the contract. |
| B. | a warranty is a stipulation, collateral to the main purpose of the contract. |
| C. | breach of a warranty, gives rise to a right to treat the contract as repudiat |
| Answer» B. a warranty is a stipulation, collateral to the main purpose of the contract. | |
| 14. |
When the buyer’s right of quiet possession of goods is affected by the seller’s fault, the buyer can |
| A. | reject the goods |
| B. | claim for damages |
| C. | repudiate the contract |
| D. | all of the above |
| Answer» B. claim for damages | |
| 15. |
The buyer shall have and enjoy quiet possession of goods. This is an __________ |
| A. | implied warranty as to title |
| B. | implied condition as to title |
| C. | implied warranty as to possession |
| D. | implied condition as to possession |
| Answer» C. implied warranty as to possession | |
| 16. |
The general rule is that the buyer of goods is responsible for his choice or selection. This doctrine is |
| A. | ignorantia juris non excusat |
| B. | quid pro quo |
| C. | nemo dat quad non habet |
| D. | caveat emptor |
| Answer» D. caveat emptor | |
| 17. |
The process of identifying the goods and setting apart is called |
| A. | identification |
| B. | procurement |
| C. | ascertainment |
| D. | allocation |
| Answer» C. ascertainment | |
| 18. |
‘Nemo Dat Quod Non Habet’ means |
| A. | no man can pass a better title than what he himself possesses. |
| B. | let the buyer beware. |
| C. | void from the beginning. |
| D. | ignorance of law is no excuse. |
| Answer» A. no man can pass a better title than what he himself possesses. | |
| 19. |
According to the Sale of Goods Act ‘fault’ means |
| A. | refusal to pay price |
| B. | refusal to deliver goods |
| C. | any wrongful act or default |
| D. | any fraud |
| Answer» C. any wrongful act or default | |
| 20. |
An unpaid seller loses his right of lien in case of |
| A. | delivery of goods to buyer |
| B. | delivery of goods to carrier or wharfinger |
| C. | tender of price by buyer |
| D. | any of the above |
| Answer» D. any of the above | |
| 21. |
An unpaid seller can exercise his right of stoppage of goods in transit |
| A. | by giving notice to the carrier |
| B. | by taking actual possession of the goods |
| C. | by notice of his claim to the bailee who is in possession of the goods |
| D. | either (a) or (b) or (c) |
| Answer» D. either (a) or (b) or (c) | |
| 22. |
Auction sale is also known as |
| A. | public sale |
| B. | private sale |
| C. | cash sale |
| D. | none of the above |
| Answer» A. public sale | |
| 23. |
Where the seller appoints his person to bid at the auction sale without informing to bidder, it is called as |
| A. | prepared bidding |
| B. | pretend bidding |
| C. | power bidding |
| D. | both (a) & (c) |
| Answer» B. pretend bidding | |
| 24. |
In contract through sea route, where the seller has to put the goods on board a ship at his own expenses, the contract is known as |
| A. | cif contract |
| B. | fob contract |
| C. | board obligatory contract |
| D. | ex-ship contract |
| Answer» B. fob contract | |
| 25. |
In a contract through sea route where the seller has to deliver the goods to the buyer at the port of destination |
| A. | fob contract |
| B. | cif contract |
| C. | ex-ship contract |
| D. | destination contract |
| Answer» C. ex-ship contract | |
| 26. |
The remedies available to a person, suffering from the breach of contract are |
| A. | suit for damages |
| B. | suit for injunction |
| C. | quantum meruit |
| D. | all of the above |
| Answer» D. all of the above | |
| 27. |
Where the court orders the defaulting party to carry out the promise according to the terms of the contract, it is called as a/an |
| A. | quantum meruit |
| B. | rescission |
| C. | injunction |
| D. | specific performance |
| Answer» D. specific performance | |
| 28. |
_________ means an order of the court restraining a person from doing what he promised not to do |
| A. | quantum meruit |
| B. | rescission |
| C. | specific performance |
| D. | injunction |
| Answer» C. specific performance | |
| 29. |
Quantum meruit means |
| A. | a non-gratuitous promise |
| B. | as gratuitous promise |
| C. | as much as is earned |
| D. | as much as is paid |
| Answer» C. as much as is earned | |
| 30. |
Hadley versus Baxendale case is a leading case on |
| A. | the breach of implied term |
| B. | the anticipatory breach |
| C. | the remoteness of damages |
| D. | the bilateral mistake of fact |
| Answer» C. the remoteness of damages | |
| 31. |
Exemplary damage is also known as |
| A. | a vindictive damage |
| B. | a punitive damage |
| C. | a direct damage |
| D. | either (a) or (b) |
| Answer» D. either (a) or (b) | |
| 32. |
Vindictive damages have been awarded |
| A. | for a breach of the promise to marry |
| B. | for a wrongful dishonour of a cheque |
| C. | either (a) or (b) |
| D. | neither (a) nor (b) |
| Answer» C. either (a) or (b) | |
| 33. |
Liquidated damages means an amount of the _________ that may result from the breach of contract |
| A. | actual loss |
| B. | loss suffered |
| C. | pre-estimated probable loss |
| D. | pre-estimated actual loss |
| Answer» C. pre-estimated probable loss | |
| 34. |
A stipulation for increased interest from the date of default is known as |
| A. | a compensation |
| B. | a penalty |
| C. | liquidated damages |
| D. | damages |
| Answer» D. damages | |
| 35. |
A quasi-contract |
| A. | is a contract |
| B. | is an agreement |
| C. | has only a legal obligation |
| D. | is not any of these |
| Answer» D. is not any of these | |
| 36. |
Claim for necessaries supplied to a person incompetent to contract, from the property of such person. It is covered under the concept of |
| A. | quasi-contract |
| B. | caveat emptor |
| C. | contingent contract |
| D. | wagering agreement |
| Answer» A. quasi-contract | |
| 37. |
A finder of goods |
| A. | a person who finds the goods belonging to another |
| B. | a person who returns any goods to the owner |
| C. | a person who finds the goods belonging to another and takes them into his custody |
| D. | any of the above |
| Answer» C. a person who finds the goods belonging to another and takes them into his custody | |
| 38. |
A contract in which one person promises to compensate the other for the loss suffered by him, due to the conduct of the promisor or of any other person, is known as |
| A. | contract of indemnity |
| B. | quasi-contract |
| C. | contract of guarantee |
| D. | none of these |
| Answer» A. contract of indemnity | |
| 39. |
The party who gives the indemnity is known as |
| A. | the indemnity-holder |
| B. | the indemnifier |
| C. | the surety |
| D. | the principal debtor |
| Answer» B. the indemnifier | |
| 40. |
A contract in which a person promises to discharge the liability of another person, in case of default by such person, is known as a |
| A. | quasi-contract |
| B. | contract of indemnity |
| C. | contract of guarantee |
| D. | none of the above |
| Answer» C. contract of guarantee | |
| 41. |
In a contract of guarantee, a person who promises to discharge another’s liability is known as |
| A. | the principal debtor |
| B. | the creditor |
| C. | the indemnified |
| D. | the surety |
| Answer» D. the surety | |
| 42. |
Liability of the surety is |
| A. | coextensive with the principal debtor |
| B. | primary with the principal debtor |
| C. | secondary to the principal debtor |
| D. | all of these |
| Answer» A. coextensive with the principal debtor | |
| 43. |
A surety is discharged from the liability by |
| A. | revocation notice by surety |
| B. | material alteration in terms |
| C. | discharge of principal by the creditor |
| D. | all of the above |
| Answer» D. all of the above | |
| 44. |
The delivery of goods by one person to another for some specific purpose is known as a |
| A. | bailment |
| B. | pledge |
| C. | pledge |
| D. | mortgage |
| Answer» A. bailment | |
| 45. |
The delivery of goods by one person to another as a security for the repayment of a debt is known as a |
| A. | bailment |
| B. | hypothecation |
| C. | pledge |
| D. | mortgage |
| Answer» C. pledge | |
| 46. |
Which of the following persons does not have a right of general lien? |
| A. | bankers |
| B. | wharfingers |
| C. | finder of goods |
| D. | factors and policy brokers |
| Answer» C. finder of goods | |
| 47. |
X lent his car to his friend Y for two days without any charges. It is a |
| A. | non-gratuitous bailment |
| B. | gratuitous bailemnt |
| C. | hypothecation |
| D. | beneficial bailment |
| Answer» B. gratuitous bailemnt | |
| 48. |
Out of following, which is/are duty of a bailee? |
| A. | to take care |
| B. | to take a reasonable care |
| C. | to sell the goods |
| D. | to retain the goods |
| Answer» B. to take a reasonable care | |
| 49. |
Out of following, which is/are rights of a bailee? |
| A. | to indemnify |
| B. | to claim necessary expenses |
| C. | to delivery of goods to any one of the joint bailor of the goods |
| D. | all of the above |
| Answer» D. all of the above | |
| 50. |
A person appointed to contract on behalf of another person is known as a/an |
| A. | principal |
| B. | agent |
| C. | independent contractor |
| D. | servant |
| Answer» B. agent | |
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