220+ Business Regulations Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .

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101.	An unlawful act by which an intending purchaser is prevented from bidding or raising the price at an auction sale is known as
A.	decoy ducking
B.	puffering
C.	damping
D.	none of these
Answer» C. damping

discuss

102.	The right of lien is exercised
A.	to retain possession of goods
B.	to regain possession of goods
C.	to resell the goods
D.	none of these
Answer» A. to retain possession of goods

discuss

103.	Which of the following rights are available to the unpaid seller against the buyer
A.	suit for price
B.	suit for interest
C.	suit for repudiation
D.	all of these
Answer» D. all of these

discuss

104.	Delivery of the key of the warehouse by the seller to the buyer will amount to
A.	actual delivery
B.	symbolic delivery
C.	constructive delivery
D.	none of these
Answer» B. symbolic delivery

discuss

105.	In case the buyer rejects the whole quantity of goods due to short delivery or excess delivery, the contract is treated as
A.	subsisting
B.	cancelled
C.	void
D.	invalid
Answer» A. subsisting

discuss

106.	The effect of refusal to accept a properly made offer of performance is that:
A.	the promisor is not responsible for non-performance and can sue the promisee for the breach of contract.
B.	such offer lapses on rejection by the offeree.
C.	the contract is rendered voidable at the option of promisor.
D.	the contract is discharged by anticipatory breach.
Answer» A. the promisor is not responsible for non-performance and can sue the promisee for the breach of contract.

discuss

107.	In which of the following circumstances a contract can be treated as discharged under the concept of supervening impossibility?
A.	spurt in prices
B.	change in import policy
C.	non-receipt of raw material from the supplier
D.	shortage of working capital
Answer» B. change in import policy

discuss

108.	The consent is said to be free when:
A.	two or more persons agree upon same thing in the same sense.
B.	all parties to the contract benefit from the contract.
C.	it is not the result of coercion or undue influence or fraud or misrepresentation or
D.	all of the above.
Answer» C. it is not the result of coercion or undue influence or fraud or misrepresentation or

discuss

109.	Which of the following may employ an agent?
A.	any person who is capable of understanding the contract and forming a rational judgment as to its effect upon his interest.
B.	any person who is engaged in business or profession.
C.	any person who is of the age of majority according to the law to which he is subject and who is of sound mi
Answer» C. any person who is of the age of majority according to the law to which he is subject and who is of sound mi

discuss

110.	Fraud means
A.	suggestion as a fact, of something which is not true, by a person who does not believe it to be true
B.	active concealment of a fact
C.	promise made without any intention of performing it
D.	all of the above
Answer» D. all of the above

discuss

111.	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

discuss

112.	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

discuss

113.	A contract of sale may be
A.	oral
B.	written
C.	always expressed
D.	either (a) & (b)
Answer» D. either (a) & (b)

discuss

114.	‘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)

discuss

115.	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

discuss ⁽¹⁾

116.	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

discuss

117.	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

discuss

118.	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

discuss

119.	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

discuss ⁽²⁾

120.	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

discuss

121.	A stipulation in a contract may be
A.	condition
B.	warranty
C.	neither (a) & (b)
D.	both (a) & (b)
Answer» D. both (a) & (b)

discuss

122.	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

discuss

123.	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.

discuss

124.	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

discuss

125.	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

discuss

126.	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

discuss

127.	The process of identifying the goods and setting apart is called
A.	identification
B.	procurement
C.	ascertainment
D.	allocation
Answer» C. ascertainment

discuss

128.	‘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.

discuss

129.	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

discuss

130.	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

discuss

131.	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)

discuss

132.	Auction sale is also known as
A.	public sale
B.	private sale
C.	cash sale
D.	none of the above
Answer» A. public sale

discuss

133.	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

discuss

134.	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

discuss

135.	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

discuss

136.	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

discuss

137.	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

discuss

138.	_________ 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

discuss

139.	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

discuss

140.	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

discuss

141.	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)

discuss

142.	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)

discuss

143.	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

discuss

144.	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

discuss

145.	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

discuss

146.	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

discuss

147.	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

discuss

148.	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

discuss

149.	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

discuss

150.	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

discuss

220+ Business Regulations Solved MCQs

An unlawful act by which an intending purchaser is prevented from bidding or raising the price at an auction sale is known as

The right of lien is exercised

Which of the following rights are available to the unpaid seller against the buyer

Delivery of the key of the warehouse by the seller to the buyer will amount to

In case the buyer rejects the whole quantity of goods due to short delivery or excess delivery, the contract is treated as

The effect of refusal to accept a properly made offer of performance is that:

In which of the following circumstances a contract can be treated as discharged under the concept of supervening impossibility?

The consent is said to be free when:

Which of the following may employ an agent?

Fraud means

The Sale of Goods Act, 1930 came into force on

Which law governs the sale of movable property in India?

A contract of sale may be

‘Delivery’ within the meaning of the Sale of Goods Act can be

The term ‘possession of goods’ means

The term ‘Goods’ in the Sale of Goods Act means

The goods which are to be produced by the seller after the contract of sale is made are known as

Where money is exchanged by one person for some money with another person, the transaction is known as

A Sale of Goods under the Sale of Goods Act, 1930 includes

Where no price is fixed by express agreement, the buyer shall pay the seller

A stipulation in a contract may be

A ‘Condition’ under the Sale of Goods Act has been defined as a stipulation

Which of the following is correct?

When the buyer’s right of quiet possession of goods is affected by the seller’s fault, the buyer can

The buyer shall have and enjoy quiet possession of goods. This is an __________

The general rule is that the buyer of goods is responsible for his choice or selection. This doctrine is

The process of identifying the goods and setting apart is called

‘Nemo Dat Quod Non Habet’ means

According to the Sale of Goods Act ‘fault’ means

An unpaid seller loses his right of lien in case of

An unpaid seller can exercise his right of stoppage of goods in transit

Auction sale is also known as

Where the seller appoints his person to bid at the auction sale without informing to bidder, it is called as

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

In a contract through sea route where the seller has to deliver the goods to the buyer at the port of destination

The remedies available to a person, suffering from the breach of contract are

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

_________ means an order of the court restraining a person from doing what he promised not to do

Quantum meruit means

Hadley versus Baxendale case is a leading case on

Exemplary damage is also known as

Vindictive damages have been awarded

Liquidated damages means an amount of the _________ that may result from the breach of contract

A stipulation for increased interest from the date of default is known as

A quasi-contract

Claim for necessaries supplied to a person incompetent to contract, from the property of such person. It is covered under the concept of

A finder of goods

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

The party who gives the indemnity is known as

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