Business Law MCQ Questions with Answers pdf

Multiple choice questions of Subject Commerce Business Law MCQ Questions with Answers pdf ( Business Law MCQ Questions with Answers pdf Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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1. Harish makes the following statement while negotiating the sale of his car, “This is the sharpest car in the market”. His statement may support a claim for

(a) misrepresentation

(b) fraud

(c) fraud and misrepresentation

(d) None of the above

Ans. d

2. Ram and Shyam entered into a contract whereby Ram agreed to sell Shyam ? 1,000 worth of heroin, an illegal substance. This is an example of a

(a) quasi contract

(b) void contract

(c) voidable contract

(d) secondary party beneficiary contract

Ans. b

3. Which of the following is not a consumer?

(a) The insurance company

(b) A licensee to run a phone

(c) A lottery ticket holder

(d) All of these

Ans. d

4. Which of the following is not covered under Consumer Protection Act?

(a) Aircraft

(c) Electricity

(b) Buildings

(d) All of these

Ans. b

5. By taking out insurance cover, an individual

(a) reduces the certainty of major loss

(b) reduces the risk of an accident

(c) transfers the risk to someone else

(d) converts the possibility of large losses to certainty of a small loss

Ans. d

6. Quasi contracts are the type of….. contract.

(b) void

(d) None of these

(a) valid

(c) voidable

Ans. a

7. Who can accept the bill?

(a) The drawer of the bill

(b) A drawer in case of need

(c) An acceptor for honour

(d) All of the above

Ans. d

8. Which of the following statements about the Consumer Protection Act, 1987 is false?

(a) The Act came into force on 1st March, 1988 and applies to damage caused by defective goods circulated after that date

(b) The Act imposes liability on businesses and private individuals

(c) The Act places strict liability for defective products on a number of possible defendants

(d) Liability under the Act cannot be limited or excluded

Ans. b

9. The body of law which establishes rights between persons and provides for redress for violation of those rights is known as

(a) criminal law

(b) civil law

(c) the uniform commercial code

(d) stare decisis

Ans. b

10. In case of the sale of motor cycle, if defects are related to engine, what it will be called?

(b) Latent defects

(d) All of these

(a) Technical defects

(c) Patent defects

Ans. b

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11. The number of members of state consumer protection council should not exceed

(a) 2

(c) 7

(b) 5

(d) 10

Ans. d

12. When did the Indian Contract Act come into force?

(b) 1928

(d) 1827

(a) 1982

(c) 1872

Ans. c

13. Any person prefers an appeal to state commission shall be deposited amount in prescribed manner

(a) 50% of that amount

(b) ? 20.000

(c) whichever is less out of the above

(d) None of the above

Ans. c

14. How many rights are there with consumer in India

(a) 5

(c) 8

(b)6

(d) 7

Ans. d

15. In most states, which of the following types of contract are within the statute of frauds?

(a) Contracts for the sale of an interest in personal property

(b) Contracts that can be performed within a year from the date of their formation

(c) Contracts tor the sale of goods

(d) Contracts for the sale of goods for a price of $500 or more

Ans. d

16. When a person is employed to represent another dealing with the third person, it is a contract of

(a) agency

(c) piedge

(b) guarantee

(d) None of these

Ans. a

17. Which of the following is a bailment situation?

(a) A conditional sale of goods

(b) The lease of an apartment

(c) A driver parks and locks his car in a self- service parking lot and takes the keys

(d) Property held by a lender as collateral

Ans. d

18. Jurisdiction of district forum is

(a) exceed rs. 20 lakhs

(c) upto rs. 20 lakhs

(b) exceed rs. 50 lakhs

(d) rs. 20 to rs. 50 lakhs

Ans. d

19. Sale of future good is called

(a) normal sale

(b) contingent sale

(d) sale on approval

(c) agreement to sale

Ans. c

20. Consideration must be there in terms of

(a) a return promise

(b) ar abstinence or forbearance

(c) doing of an act

(d) All of the above

Ans. d

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21. Why is fraud a more advantageous remedy for the plaintiff to pursue than misrepresentation?

(a) Fraud is generally easier to prove

(b) Only fraud can be the basis for recession

(c) Punitive damages may be awarded when fraudis proven

(d) Misrepresentation offers no possibility of punitive damages

Ans. c

22. Who will work as President in case of absence of the President of State Commission?

(a) Governor

(c) A sitting judge of HC

(b) Chief minister

(d) Chief justice of HC

Ans. c

23. The presentment for acceptance is required only in case of which of the following?

(a) Promissory note

(c) Bills of exchange

(b) Cheque

(d) All of these

Ans. c

24. Any instrument can be discharged

(a) by renunciation

(b) by material alternation

(c) by payment in due course

(d) All of the above

Ans. d

25. A surety ship contract is

(a) involved with liquidated debts

(b) governed exclusively by the UCC

(c) rarely enforceable

(d) generally a co-signer agreement

Ans. d

26. What are the rights to an aggrieved party in case of brea of contract? To cancel the contract

(b) To reject the goods

(d) All of these

(a)

(c) To claim damages

Ans. c

27. Under which of the following situations, does product liability apply?

(a) Sale of a defective arid unreasonably dangerous product

(b) Manufacture of a defective and unreasonably dangerous product

(c) Both (d) Neither ‘a’ nor ‘b’ and b’

Ans. c

28. Which of the following is related to secondary legislation?

(a) The Unfair Terms in Consumer Contrats Regulations 1990

(b) The Partnership Act

(c) The Communications Act, 2003

(d) The Companies Act

Ans. b

29. What defines the contract as an agreement enforceable law?

(a) The Companies Act

(b) The Indian Contract Act, 1872

(c) Partition Act, 1863

(d) Partnership Act, 1932

Ans. d

30. What is not required in case of contingent contract?

(b) Mutual chances of gain or

(a) Uncertain event

(c) Both ‘a’ and ‘b’

(d) None of the above

Ans. b

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31. The act of buying any asset with making full payment known as

(a) hire purchase

(b) lease financing

(d) None of these

(c) operating lease

Ans. a

32. Which of the following would not make distinction between a hire purchase and a normal purchase?

(a) Trade discounts cannot be offered on hire purchase

(b) Purchases pay for item by instalments over a period of time

(c) Cost to buyer is likely be high as compare to normal purchase

(d) None of the above

Ans. a

33. The goods which have not been acquired by the seller are known as

(a) existing goods

(c) unascertained goods

(b) contingent goods

(d) future goods

Ans. d

34. During the contract of sale, the property will be

(a) raw material

(c) ownership

(b) movable property

(d) immovable property

Ans. c

35. A contract of sale includes 

(a) normal sale

(c) Both ‘a’ and ‘b’

(b) agreement to sale

(d) None of these

Ans. c

36. When repaying by instalments to a supplier for a hire purchase, the double entry to record this repayment would be in

(a) profit and loss

(c) supplier

(b) cash book

(d) None of these

Ans. c

37. Which of the following would account for the interest charges relating to hire purchase? Debit Credit

(a) Hire purchase interest

(b) Hire purchase interest

(c) Profit and loss

(d) Cash book Supplier Profit and loss Supplier Hire purchase interest

Ans. a

38. In which of the cases, the bailee is liable for the loss?

(a) Right to claim damages

(b) Right to terminate

(c) Right to claim compensation

(d) Right to file a suit for injunction

Ans. d

39. An agreement without consideration based on natural love and affection is valid if the agreement is

(a) in writing and registered

(b) ratified by the court of law

(c) with the consent of the family members

(d) None of the above

Ans. a

40. What is the meaning of consideration in India?

(a) Present consideration

(c) Future consideration

(b) Past consideration

(d) All of the above

Ans. d

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41. An agreement without consideration between the parties, who are in near relation to each other is valid if the agreement is

(a) in writing

(b) registered

(c) based on natural love and affection

(d) All of the above

Ans. d

42. Generally, a minor’s agreement is

(a) valid

(c) voidable

(b) void ab initio

(d) unlawful

Ans. b

43. When does the property of the specific goods in a deliverable state passes?

(a) When contract is made

(b) When payment is made

(c) When possession is transferred

(d) All of the above

Ans. c

44. Delivery by acknowledgement is called

(a) symbolic delivery

(b) actual delivery

(c) constructive delivery

(d) future delivery

Ans. c

45. Which of the following statements is incorrect?

(a) A firm is compulsorily dissolved when all the partners become insolvent

(b) A firm is compulsorily dissolved when all the partners except one have become insolvent

(c) A firm is not compulsorily dissolved when all the partners except one have become insolvent

(d) A partner ceases to be a partner from the date of his insolvency

Ans. c

46. Every partner has the right to

(a) take part in the business operations

(b) share the profit in the decided proportion

(c) use the property of the firm for personal purposes

(d) pay taxes

Ans. a

47. The damages which are not natural and direct are known as

(a) penalty

(b) liquidated damages

(c) ordinary damages

(d) remote damages

Ans. d

48. In case of part delivery in lieu of whole, the buyer may .. . the goods.

(a) accept

(b) reject

(c) demand for the balance amount of goods

(d) Either ‘a’ or ‘b’

Ans. d

49. In case of a sale, the buyer

(a) cannot pass a good title to bonafide purchaser

(b) can pass a good title to bonafide purchaser

(c) Both ‘a’ and ‘b’

(d) None of the above

Ans. b

50. Rights of the seller against the buyer personally are called

(a) rights against goods

(b) rights against appropriation

(C) rights in personam

(d) None of the above

Ans. c

For More Commerce MCQs Topic Wise Click Here

1. Bookkeeping and Accounting 2. Not-for-Profit Organisations
3. Partnership4. Accounting for Specific Business and Transactions
5. Corporate Accounting6. Cost Accounting
7. Management Accounting8. Business Communication
9. Business Organisation and Management10. Business Environment
11. Marketing Management12. Financial Management
13. Human Resource Management14. Office Management
15. Consumer’s Theory and Demand16 Production, Cost, Revenue
17. Supply18. Forms of Market
19. National Income20. Government Budget
21. Theory of Income & Employment and Inflation22. Money and Banking
23. International Trade24. India’s Foreign Trade and international Organisations
25. Industrial Policy26. Statistics
27. Business Law28. Company Law
29. Auditing30. Entrepreneurship Development
31. Income Tax32. Insurance
33. International Business34. Company Secretary and Secretarial Methods
35. Stock Exchange

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