SMT KG MITTAL COLLEGE OF COMMERCE & ARTS

ADDITIONAL EXTERNAL EXAMINATION

DURATION: 2 ½ hrs. MAX MARKS: 75
SUBJECT: BUSINESS LAW CLASS:
FYBAF
Q1 A. Answer the following multiple choice questions: (any 8) 08
1) When two persons, agree to the same thing in the same sense, it is called ______.
1. Consensus ad idem
2. offer
3. acceptance
4. consideration
2) A Mortgage was executed in favour of a minor. can the minor get a Decree for the
enforcement of mortgage?
a. Yes
b. No
c. Can't say
d. Mortgage is invalid
3) Moral pressure is exercised in case of _______
a. Coercion
b. Undue influence
c. fraud
d. Misrepresentation
4) if unknown to both the parties, the goods were destroyed by party at the time of agreement
_______
a. Void on the ground of one's mistake
b. Void on the ground of mutual mistake
c. Void on the ground of supervening impossibility
5) Goods means every kind of movable property including _________
a. Actionable claim and currency money
b. old currency notes
c. Goodwill and copyright
d. Both (b) and (c)

6) A milk-vendor supplied X with milk which contained typhoid gem. X got infected after
consuming the milk, is the milk vendor bound to pay damages?
 a. Yes, breach of condition as to wholesomeness
b. Yes, Condition as to merchantability
c. No, milk vendor never knew himself
d. No, X should have seen it

7) Suresh and Pranav go into a shop Suresh says to shopkeeper, "Ganesh, let Pranav have the
goods and if he does not pay you, I will. This is a ________
a. Contract of guarantee
b. Contract of indemnity
c. Quasi contract
d. None of the above
8) The property in a negotiable instrument passes frorn one person to another in case of an
instrument payable to order _________
a. by delivery
b. by endorsement
c. by endorsement and delivery
d. All of the above
9) A person who purchases goods for resale purpose ________
a. is a consumer
b. is a not consumer
c. a trader
d. none of them
10) Maturity of an instrument is ________
a. Date on which instrument is created
b. Date on which instrument is payable
c. Date on instrument is signed
d. none of the above

Q1 B. State the following statements are True or False (Any 07 ) 07

1. Whew mode of acceptance is prescribed, acceptance can be in a usual and reasonable
manner.
2. All agreement between parties are enforceable in a court of law.
3. A contract guarantee should not be in writing.
4. A stipulation as to time of payment can only be a warranty in a contract of sale
5. In case where unpaid seller exercises the right of resale the second Buyer does not
acquire a valid little to the goods
6. Delivery means voluntary transfer possession of goods from one person to another
 7. In a contract of sale, payment of price may take place at a future date
8. Naresh promise to pay Bharat Rs. 5,000/- seven day after his Marriage with chandrika is
promissory note
9. Any person who consumes anything is called a consumer
10. For Bouncing/Dishonor of cheque the maximum imprisonment can be two years.

Q2 A. “No Consideration, no Contract” Discuss and state exceptions to the rule 08

B. What are the various ways in which a contract may be discharged? 07
OR
C. Define bailment and state the rights of bailor 08
D. Define “Contract of indemnity and state the essential of it
07

Q3 A. State the implied conditions under sale of Goods Act. Explain any two of them.08
B. What are the rights of unpaid seller? 07
OR
C. Explain “Sale and distinguish it from "Agreement to sell" under the Indian sale of
Goods Act.
08
D. “Rise Prima facie passes with propriety” Explain.
07

Q4 A. State the features of Negotiable Instruments Also distinguish between a cheque and a
bill of exchange.
08
B. What do you mean by crossing of a choque? State its different types 07
OR
C. Under what circumstances cheque is considered as dishonored? 08
D. What do you mean by Bills in sets. Stats essentials of a bills in sets 07

Q5 A. Explain the various unfair Trade Practices

08
B. What is "Deficiency of service"? Explain Consumer Dispute. 07
OR
C. Write short notes on any three 15
a. Kinds of offer
b. Rules of Auction sales
c. Drawee in case of need
d. Object of Consumer Protection Act
e. Hire Purchase Agreement