Date : 18/11/2023 CA-FOUNDATION-NOV-2023 Time : 3 hr.

Sub : LAW and BCR Marks : 100

Prelims-I
SECTION-A: BUSINESS LAW (60 MARKS)
Question No. 1 is Compulsory. Answer any four question from the
remaining five questions. Wherever necessary, suitable assumptions should
be made and disclosed by way of note forming part of the answer.
Working Notes should from part of the answer.

Question 1:
(a) X agrees to sell to Y "100 tons of oil."
State the legal position of this agreement in each of the following alternative
cases:
Case (a) If X, who is a dealer in coconut oil only, decides to sell @ Rs. 10,000 per
ton.
Case (b) If X is a dealer in coconut oil and price is to be fixed by Z.
Case (c) If X who is a dealer in coconut oil agrees to sell at Rs. 10,000 per ton or
Rs. 11,000 per ton.
Case (d) If X is a dealer in coconut oil and mustard oil. (4 Marks)
Answer:-
According to Section 29 of Indian Contract Act, 1872.
Case Decision Reason
(a) Valid There is no uncertainty as to the description of oil
because the nature of X‘s trade indicated that this
contract is for sale of coconut oil.
(b) Valid There is no uncertainty because in this case the price
fixed by Z shall be payable.
(c) Void There is no certainty as to which of the two price shall be
payable.
(d) Void There is no certainty as to which of the two oils has been
sold.

(b) The Memorandum of Association of a company was presented to the Registrar of

Companies for registration and the Registrar issued the certificate of
incorporation. After complying with all the legal formalities a company started a
business according to the object clause, which was clearly an illegal business. The
company contends that the nature of the business cannot be gone into as the
certificate of incorporation is conclusive. Answer the question whether company‟s
contention is correct or not.? (4 Marks)
Answer:
Section 3 of the Companies Act, 2013 states that a company may be formed for
any lawful purpose by 7 or more persons in case of public company, 2 or more
persons in case of private company and 1 person in case of a one person
company. Hence, a company cannot be formed for an unlawful purpose or for
carrying on illegal business.
Section 9 of the Act further provides that from the date of incorporation
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 mentioned in the certificate of incorporation, such subscribers to the
memorandum and all other persons, as may from time to time, become members
of the company, shall be a body corporate capable of exercising all the functions
of an incorporated company under this Act. Under this Act a company can be
formed for a lawful purpose. Hence, a company cannot be formed in the first
place for an illegal business activity.
In the present case the Registrar was at fault in issuing the certificate of
incorporation but the issue of the certificate of incorporation does not give the
company the right to do illegal business.
On applying the above provisions in the present problem, the company‘s
contention is wrong. Though a certificate of incorporation is a conclusive evidence
of its formation and existence,, it does not render its illegal objectives as legal. In
Bowman v. Secular Society Ltd., the court held that the statute does not
provide that all or any of the objects specified in the memorandum, if otherwise
illegal, would be rendered legal by the certificate. Therefore, the contention of the
company that the nature of business cannot be gone into after the certificate of
incorporation has been obtained is not tenable. Moreover, the illegality of its
objects is adequate grounds for the Registrar to rectify his gross mistake and suo
motto take necessary steps to cancel the certificate of incorporation.

(c) For the purpose of making uniform for the employees, Mr. Yadav bought dark
blue coloured cloth from Vivek, but did not disclose to the seller the purpose of
said purchase. When uniforms were prepared and used by the employees, the
cloth was found unfit. However, there was evidence that the cloth was fit for
caps, boots and carriage lining. Advise Mr. Yadav whether he is entitled to have
any remedy under the sale of Goods Act, 1930? (4 Marks)
Answer:
Fitness of Cloth: As per the provision of Section 16(1) of the Sale of Goods Act,
1930, an implied condition in a contract of sale that an article is fit for a particular
purpose only arises when the purpose for which the goods are supplied is known
to the seller, the buyer relied on the seller‘s skills or judgment and seller deals in
the goods in his usual course of business.
In this case, the cloth supplied is capable of being applied to a variety of
purposes, the buyer should have told the seller the specific purpose for which he
required the goods. But he did not do so. Therefore, the implied condition as to
the fitness for the purpose does not apply. Hence, the buyer will not succeed in
getting any remedy from the seller under the Sale of Goods Act, 1930.

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Question 2:
(a) Give differences between LLP and Limited Liability Company? (6 Marks)
Answer:-
Distinction between LLP and Limited Liability Company LLC
Basis LLP Limited Liability
Company
1. Regulating Act The LLP Act, 2008. The Companies Act, 2013.
2. Members/Partners The persons who contribute to The persons who invest
LLP are known as partners of the money in the shares
the LLP. are known as members of
the company.
3. Internal The internal governance The internal governance
governance structure of a LLP is governed structure of a company is
structure by agreement between the regulated by statute (i.e.,
partners. Companies Act, 2013).
4. Name Name of the LLP to contain the Name of the public
word ―Limited company to contain the
Liability partnership‖ or ―LLP‖ as word ―limited‖ and
suffix. Private company to
contain the word― Private
limited‖ as suffix.
5. Number of Minimum – 2 members Private company:
members/ Maximum – No such limit on Minimum – 2
partners the members in the Act. The members Maximum
members of the LLP can be – 200 members
individuals/or body corporate Public company:
through the nominees. Minimum – 7 members
Maximum – No such limit
on the members.
Members can be
organizations, trusts,
another business form or
individuals.
6. Liability of Liability of a partners is limited Liability of a member is
members/ to the extent of agreed limited to the amount
partners contribution except in case of unpaid on the shares held
willful fraud. by them.
7. Management The business of the company The affairs of the company
managed by the partners are managed by board of
including the designated directors elected by the
partners shareholders.
authorized in the agreement.
8. Minimum number Minimum 2 designated Private Co. – 2
of partners. directors Public Co.
directors/designat – 3 directors
ed partners

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(b) The object clause of the Memorandum of Association of LSR Private Ltd, Lucknow
authorized it to do trading in fruits and vegetables. The company, however,
entered into a Partnership with Mr. J and traded in steel and incurred liabilities to
Mr. J. The Company, subsequently, refused to admit the liability to J on the
ground that the deal was „Ultra Vires‟ the company. Examine the validity of the
company‟s refusal to admit the liability to J. Give reasons in support of your
answer. (6 Marks)
Answer:
In terms of section 4(1)(c) of the Companies Act, 2013, the powers of the
company are limited to:
(i) Powers expressly given in the ―Objects Clause‖ of the Memorandum (which is
popularly known as ‗express‘ power), or conferred by the Companies Act, or
by any other statute and
(ii) powers reasonably incidental or necessary to the company‘s main objects
(termed as ―Implied‘ powers).
The Act further provides that the acts beyond the powers of a company are
ultra vires and void and cannot be ratified even though every member of the
company may give his consent [Ashbury Railway Carriage Company Vs
Richee]
The objects clause enables the shareholders, creditors or others to know what its
powers are and what is the range of its activities. The objects clause therefore is
of fundamental importance to the shareholders, creditors and every other person
who deals with the company in any manner what so ever. A company being an
artificial legal person can act only within the ambit of the powers conferred upon
it by the Memorandum through the ―Objects Clause‖ .
Every person who enters into a contractual relationship with a company on any
matter is presumed to be aware of its objects and is supposed to have examined
the Memorandum of Articles of the company to ensure proper contractual
agreement. If a person fails to do so, it is entirely at his own peril.
M/s LSR Pvt. Ltd is authorised to trade directly on fruits and vegetables. It has no
power to enter into a partnership for Iron and steel with Mr. J. Such act cannot be
treated as being within either the ‗express‘ or ‗implied‘ powers of the company. Mr J
who entered into partnership is deemed to be aware of the lack of powers of M/s
LSR (Pvt) Ltd. In the light of the above, Mr, J cannot enforce the agreement or
liability against M/s LSR Pvt. Ltd under the Companies Act. Mr. J should be advised
accordingly.

Question 3:
(a) M promised to pay N for his services at his (M) sole discretion found to be fair and
reasonable. However, N dissatisfied with the payment made by M and wanted to
sue him. Decide whether N can sue M under the provisions of the Indian Contract
Act, 1872? (2 Marks)
Answer:
N‘s suit will not be valid because the performance of a promise is contingent upon
the mere will and pleasure of the promisor; hence, there is no contract.
As per section 29 of the Indian Contract Act, 1872 – agreements, the meaning of
which is not certain, or capable of being made certain, are void‖.
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(b) Mr. X, in association with his relative formed a company to promote education
for the children of poor section. A licence was issued by the Central Government
allowing the said company to be registered under section 8 of the Company.
Government aids and lot of funds were contributed by public for the fulfillment of
the benevolent object. However, on the compliant against the company, CG came
to know about the manipulation of the funds in the company and so order to
revoke the licence of the company. Further, directed for the amalgamation with
another company registered under this section with an object to save girl child.
Examine the legal position as to the order passed by the Central government in
the given situation in the light of the Companies Act, 2013. (5 Marks)
Answer:
As per the Section 8 of the Companies Act, 2013, the Central Government may
by order revoke the licence of the company where the company contravenes any
of the requirements or the conditions of this sections subject to which a licence is
issued or where the affairs of the company are conducted fraudulently, or
violative of the objects of the company or prejudicial to public interest.
Where a licence is revoked, the Central Government may, by order, if it is
satisfied that it is essential in the public interest, direct that the company be
wound up under this Act or amalgamated with another company registered under
this section.
Where a licence is revoked and where the Central Government is satisfied that it
is essential in the public interest that the company registered under this section
should be amalgamated with another company registered under this section and
having similar objects, then, the Central Government may, by order, provide for
such amalgamation to form a single company with such constitution, properties,
powers, rights, interest, authorities and privileges and with such liabilities, duties
and obligations as may be specified in the order.
According to the given situation, on revocation of licence, the Central Government
ordered for the amalgamation of the company with the separate entity registered
under the section 8 of the Companies Act, 2013. However, an object for which
both the Companies formed were promoting different objects. Accordingly, the
order passed by the Central Government after the revocation of license, is not in
compliance of the Section 8 of the Companies Act, 2013.

(c) At an auction sale, C made the highest bid for an article of P. State the legal
position in each of the following alternative cases:
Case (a) If C withdrew the bid before the fall of the hammer though he knew that
one of the condition of the sale was 'bid once made cannot be
withdrawn'.
Case (b) If P refused to accept the highest bid. The sale was not notified subject
to a reserve price.
Case (c) If P appointed two persons A and B, to bid on his behalf. The sale was
notified subject to a right to bid.
Case (d) If C was allowed to take it away on (i) giving a cheque for the price (ii)
signing an agreement that ownership should not pass to him until the
cheque was cleared. The cheque was dishonoured but in the meantime
C sold the article to Z.
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 Case (e) If the sale was notified subject to a reserve price and the auctioneer by
mistake accepted the C's highest bid (which was lower than the reserve
price) by striking the hammer. Later, auctioneer refused to deliver the
goods. (5 Marks).
Answer:
According to Section 64 of Sale of Goods Act, 1930, the legal position is follows:-
Case (a): C's bid was an offer to buy and he was entitled to withdraw his bid
before the sale is completed as per express provision of Section 64(2).
Such a condition in an auction sale was inoperative because it was
against the provisions of the law.
Case (b): C's bid was an offer to buy which may or may not be accepted by the
auctioneer. Hence, P could refuse to accept the highest bid.
Case (c): It amounts to fraud and sale is voidable at the option of the buyer
because the seller could appoint only one person to bid on his behalf.
Here intention of the seller was not to protect his interest but to raise
the price.
Case (d): Z had a good title because the property passed to C on the fall of the
hammer. The ownership of specific goods in a deliverable state
passes on the completion of contract of sale.
Case (e):The sale was not valid and C was not entitled to goods. It was held
that the auctioneer could not effectively accept such a bid (which was
lower than reserve price) because he could not make a contract so as
to bind his principal to accept less than the reserve price.

Questions 4:
(a) Mr. M, Mr. N and Mr. P were partners in a firm, which was dealing in
refrigerators. On 1st October, 2018, Mr. P retired from partnership, but failed to
give public notice of his retirement. After his retirement , Mr. M, Mr. N and Mr. P
visited a trade fair and enquired about some refrigerators with latest techniques.
Mr. X, who was exhibiting his refrigerators with the new techniques was
impressed with the interactions of Mr. P and requested for the visiting card of the
firm. The visiting card also included the name of Mr. P as a partner even though
he had already retired. Mr.
X. supplied some refrigerators to the firm and could not recover his dues from the
firm. Now, Mr. X wants to recover the dues not only from the firm, but also from
Mr. P.
Analyse the above case in terms of the provisions of the Indian Partnership Act,
1932 and decide whether Mr. P is liable in this situation. (4 Marks)
Answer:
A retiring partner continues to be liable to third party for acts of the firm after his
retirement until public notice of his retirement has been given either by himself or
by any other partner. But the retired partner will not be liable to any third party if
the latter deals with the firm without knowing that the former was partner. (1M)
Also, if the partnership is at will, the partner by giving notice in writing to all the
other partners of his intention to retire will be deemed to be relieved as a partner
without giving a public notice to this effect.
Also, as per section 28 of the Indian Partnership Act, 1932, where a man holds
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 himself out as a partner, or allows others to do it, he is then stopped from
denying the character he has assumed and upon the faith of which creditors may
be presumed to have acted. (2M)
In the light of the provisions of the Act and facts of the case, Mr. P is also liable to
Mr. X. (1M)

(b) Ram, Mohan and Gopal were partners in a firm. During the course of partnership,
the firm ordered Sunrise Ltd. to supply a machine to the firm. Before the machine
was delivered, Ram expired. The machine, however, was later delivered to the
firm. Thereafter, the remaining partners became insolvent and the firm failed to
pay the price of machine to Sunrise Ltd.
Explain with reasons:
(i) Whether Ram‟s private estate is liable for the price of the machine
purchased by the firm?
(ii) Against whom can the creditor obtain a decree for the recovery of the price?
(5 Marks)
Answer:
Partnership Liability: The problem in question is based on the provisions of the
Indian Partnership Act, 1932 contained in Section 35. The Section provides that
where under a contract between the partners the firm is not dissolved by the
death of a partner, the estate of a deceased partner is not liable for any act of the
firm done after his death. Therefore, considering the above provisions, the
problem may be answered as follows: (2M)
Ram‘s estate in this case will not be liable for the price of the Machinery
purchased. The creditors in this case can have only a personal decree against the
surviving partners and decree against the partnership assets in the hands of
those partners. However, since the surviving partners are already insolvent, no
suit for recovery of the debt would lie against them. A suit for goods sold and
delivered would not lie against the representative of the deceased partner. (2M)
This is because there was not debt due in respect of the goods in Ram‘s life.

(c) A, B and C are partners in a firm. As per terms of the partnership deed, A is
entitled to 20 percent of the partnership property and profits. A retires from the
firm and dies after 15 days. B and C continue business of the firm without settling
accounts. Explain the rights of A‟s legal representatives against the firm under
the Indian Partnership Act, 1932? (3 Marks)
Answer:
Section 37 of the Indian Partnership Act, 1932 provides that where a partner
dies or otherwise ceases to be a partner and there is no final settlement of
account between the legal representatives of the deceased partner or the firms
with the property of the firm, then, in the absence of a contract to the contrary,
the legal representatives of the deceased partner or the retired partner are
entitled to claim either. (2M)
(1) Such shares of the profits earned after the death or retirement of the
partner which is attributable to the use of his share in the property of the
firm; or
(2) Interest at the rate of 6 per cent annum on the amount of his share in the
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 property.
Based on the aforesaid provisions of Section 37 of the Indian Partnership
Act, 1932, in the given problem, A‘s Legal representatives shall be
entitled, at their option to:
(a) the 20% shares of profits (as per the partnership deed); or
(b) interest at the rate of 6 per cent per annum on the amount of A‘s
share in the property. (1M)

Question 5:
(a) P sells by auction to Q a horse which P known to be unsound. The horse appears
to be sound but P knows about the unsoundness of the horse. Is this contract
valid in the following circumstances:
(a) If P says nothing about the unsoundness of the horse to Q.
(b) If P says nothing about it to Q who is P‟s daughter who has just come of
age.
(c) If Q says to P “If you do not deny it, I shall assume that the horse is
sound.” P says nothing. (6 Marks)
Answer:-
According to section 17 of the Indian Contract Act, 1872, mere silence as to
facts likely to affect the willingness of a person to enter into a contract is not
fraud, unless the circumstances of the case are such that, regard being had to
them, it is the duty of the person keeping silence to speak, or unless his silence
is, in itself, equivalent to speech. Hence, in the instant case, (1.5 M)
(a) This contract is valid since as per section 17 mere silence as to the facts
likely to affect the willingness of a person to enter into a contract is not
fraud. Here, it is not the duty of the seller to disclose defects. (1.5 M)
(b) This contract is not valid since as per section 17 it becomes P‘s duty to tell Q
about the unsoundness of the horse because a fiduciary relationship exists
between P and his daughter Q. Here, P‘s silence is equivalent to speech and
hence amounts to fraud. (1.5 M)
(c) This contract is not valid since as per section 17, P‘s silence is equivalent to
speech and hence amounts to fraud. (1.5 M)

(b) The paid-up share capital of Saras Private Limited is Rs. 1 crore, consisting of 8
lacs Equity Shares of Rs. 10 each, fully paid-up and 2 lacs Cumulative Preference
Shares of Rs.10 each, fully paid-up. Jeevan (JVN) Private Limited and Sudhir
Private Limited are holding 3 lacs Equity Shares and 50,000 Equity Shares
respectively in Saras Private Limited. Jeevan Private Limited and Sudhir Private
Limited are the subsidiaries of Piyush Private Limited. With reference to the
provisions of the Companies Act, 2013 examine whether Saras Private Limited is
a subsidiary of Piyush Private Limited? Would your answer be different if Piyush
Private Limited has 8 out of 9 Directors on the Board of Saras Private Limited?
(6 Marks)
Answer:
In terms of section 2 (87) of the Companies Act 2013 "subsidiary company" or
"subsidiary", in relation to any other company (that is to say the holding

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 company), means a company in which the holding company—
(i) controls the composition of the Board of Directors; or
(ii) exercises or controls more than one-half of the total share capital either at
its own or together with one or more of its subsidiary companies: (2M)
Provided that such class or classes of holding companies as may be prescribed
shall not have layers of subsidiaries beyond such numbers as may be prescribed.
Explanation.—For the purposes of this clause,—
(a) a company shall be deemed to be a subsidiary company of the holding
company even if the control referred to in sub-clause (i) or sub-clause (ii) is
of another subsidiary company of the holding company;
(b) the composition of a company's Board of Directors shall be deemed to be
controlled by another company if that other company by exercise of some
power exercisable by it at its discretion can appoint or remove all or a
majority of the directors. (2M)
In the present case, Jeevan Pvt. Ltd. and Sudhir Pvt. Ltd. together hold less than
one half of the total share capital. Hence, Piyush Private Ltd. (holding of Jeevan
Pvt. Ltd. and SudhirPvt) will not be a holding company of Saras Pvt. Ltd.
However, if Piyush Pvt. Ltd. has 8 out of 9 Directors on the Board of Saras Pvt.
Ltd. i.e. controls the composition of the Board of Directors; it (Piyush Pvt. Ltd.)
will be treated as the holding company of Saras Pvt. Ltd.

Question 6:
(a) Ms. R owns a Two Wheeler which she handed over to her friend Ms. K on sale or
return basis. Even after a week Ms. K neither returned the vehicle nor made
payment for it. She instead pledged the vehicle to Mr. A to obtain a loan. Ms. R
now wants to claim the Two wheeler from Mr. A. Will she succeed?
(i) Examine with reference to the provisions of the Sale of Goods Act, 1930,
what recourse is available to Ms. R?
(ii) Would your answer be different if it had been expressly provided that the
vehicle would remain the property of Ms. R until the price has been paid?
(6 Marks)
Answer:
As per the provisions of Section 24 of the Sales of Goods Act, 1930, when goods
are delivered to the buyer "on sale or return" or other similar terms, the property
therein passes to the buyer-
(a) When the buyer signifies his approval or acceptance to the seller or does any
other act adopting the transaction;
(b) If he doesnot signify his approval or acceptance to the seller but retains the
goods without giving notice of rejection then if a time has been fixed for the
return of goods, on expiration of such time and if no time has been fixed, on
expiration of reasonable time; of
(c) He does somting to the goods which is equivalent to accepting the goods e.g.
he pledges or sells the goods.

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 Referring to the above provisions, we can analyse the situation given in the
question as follows :-
(i) Since Ms. R has given the delivery of motor cycle to Ms. K on sale or
return basis and she pledged the vehicle to Mr. A to obtain the loan, has
attracted the third condition that she does something to goods which is
equivalent to accepting the goods. Therefore the property therein passes
to Ms. K. Now in this situation Ms. R can't claim back the vehicle from Mr.
A but she can claim the price of the vehicle from Ms. K.
(ii) If it has been expressly providect that the vehicle would remain the
property of Ms. R until price has been paid then in that case property will
not pass to Ms. K until cash is paid. So Ms. R can claim back the vehicle
from Mr. A in this situation.

(b) What are the significant points of Section 8 Company which are not applicable for
other companies? Briefly explain with reference to provisions of the Companies
Act, 2013. (6 Marks)
Answer:
Formation of companies with charitable objects etc. (Section 8 company): Section
8 of the Companies Act, 2013 deals with the formation of companies which are
formed to promote the charitable objects of commerce, art, science, sports,
education, research, social welfare, religion, charity, protection of environment
etc. Such company intends to apply its profit in
 promoting its objects and
 prohibiting the payment of any dividend to its members.
Examples of section 8 companies are FICCI, ASSOCHAM, National Sports Club of
India, CII etc.
Section 8 Company- Significant points
 Formed for the promotion of commerce, art, science, religion, charity,
protection environment, sports, etc.
 Requirement of minimum share capital does not apply.
 Uses its profits for the promotion of the objective for which formed.
 Does not declare dividend to members.
 Operates under a special licence from Central Government.
 Need not use the word Ltd./ Pvt. Ltd. in its name and adopt a more suitable
name such as club, chambers of commerce etc.
 Licence revoked if conditions contravened.
 On revocation, Central Government may direct it to
– Converts its status and change its name
– Wind – up
– Amalgamate with another company having similar object.
 Can call its general meeting by giving a clear 14 days notice instead of 21
days.
 Requirement of minimum number of directors, independent directors etc. does
not apply.
 Need not constitute Nomination and Remuneration Committee
and Shareholders Relationship Committee.
 A partnership firm can be a member of Section 8 company.

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0
 SECTION-B: BUSINESS CORRESPONDENCE & REPORTING (40 MARKS)
The Question Paper comprises of 5 questions of 10 marks each.
Question No. 7 is compulsory. Out of questions 8 to 11, attempt any 3.

Question 7:
(a) Read the passage carefully and answer the questions that follow:
Three years ago, technophobic Sushmi Ghosh refused to exchange her feature
phone for a smart phone. But last month, the 45-years-old high schoolteacher
ordered a front-loading washing machine through an e-retailer‟s app on her iPhone.
“I was pleasantly surprised,” she said, “It was not only delivered in a day but also
installed immediately. I didn‟t have to walk to a shop in this heat. I saved some
money too because I bought it during a sale.” Online sales of large appliances have
boomed in the past two years as e-retailers have addressed buyers‟ delivery and
installation concerns. While they also offered discounts earlier, delivery took days
and installation was another waiting game, with further uncertainty about warranty.
During its recently concluded sale, Amazon claimed in the first day it sold around
half (20,000 units) of the average daily TV sales in India. “There has been a huge
shift in the number of brands that want to do business with us,” said Manish
Tiwary, VP (category management), Amazon India. Some manufacturers have even
teamed up with e-retailers to officer TVs, refrigerators and washing machines with
specific features. “This helps bring down prices,” said Sandeep Karwa, head of large
appliances at Flipkart. From being a negligible part of its business, the large
appliances category has become one of the top three earners for Flipkart. It
acquired Jeeves, a repair services and maintenance company, for providing after-
sales services. At present, Flipkart o ers one-day delivery on 72% of large
appliances through 10 dedicated warehouse. “We are working on a pilot that will
enable installation of 70% of our large appliances at the time of delivery,” said
Karwa. Exchange offers and financing options provided by e-retailers have also
pushed sales. “During our last sale 35% of shoppers opted for no-interest EMIs,”
said Karwa. Amazon has also created a home services arm to synchronise delivery
and installation of products. Amazon‟s Tiwary said, “We created our group of
technicians who will get the installation done according to the convenience of the
customer. In smaller towns, this is a big help since many brands don‟t have a
robust presence.” Amazon has nine warehouses from which it can reach 80% of the
country. Most manufacturers, however, are tight-lipped about online sales as e-
retailers‟ discounts and freebies eat into the margins of their brick-and-mortar
dealers. While a spokesperson for LG turned down an interview request for this
story, Samsung India did not reply to an email.
Ajay Seth, director of sales and service at Panasonic India, said, “It‟s still early
days for online. Customers want to have a look and feel of the product before
buying. Most of our online sales consist of small appliances.” Companies such as
BPL, Vu and TCL, which follow an online- first model, are optimistic, though of
favourable response from buyers.. Devita Saraf, founder of Vu Technologies, which
sells 40% of all TVs sold on Flipkart, said, “When I started selling Vu televisions we
did a business of Rs. 35 crore in 2013-14. After going online, we ended 2016-17 at
Rs 500 crore.”

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1
 1. Sushma Ghosh says, “I was pleasantly surprised.” She was surprised
a. By the promptness of the service for the washing machine.
b. Because she managed to save money while buying the washing machine.
c. By the warranty offered for the washing machine.
d. By the quick delivery and instant installation of the washing machine.
2. Some manufacturers have even teamed up with e-retailers to
(a) Give special discounts
(b) Have special sale offers on large appliances like T.V.s with specific
features
(c) Get discounts from e retailers
(d) To give discounts to e retailers Q3.
3. One of the top three earners of Flipkart is
(a) Household goods
(b) Clothes brands
(c) Large appliances
(d) Mobile phones
4. The two factors that are promoting sales of e retailers are
(a) Exchange offers and easy financing options available.
(b) Quick delivery and good products.
(c) Ease of service and no disturbance of any kind.
(d) Many options to choose from and ability to view products from home Q
5. Brick and mortar stores are affected by e retailers
(a) Promoting their sales
(b) In no major way
(c) By starting a price war
(d) By eating into their profits
(5 x 1 M Each = 5 Marks)
Answer:
1. 2. 3. 4. 5
(D) (B) (C) (A) (D)

(b) Read the Passage :

Recycling is simply the process of reusing the items from which utility can still be
derived. It is important to recycle waste so that we can at least conserve some of
our natural resources for the generations to come. Many products such as paper,
cardboards, and cups come from trees. In fact trees are our natural assets: you can
conserve trees by recycling the paper products as by doing so we can minimize the
number of trees cut down a year. This is one form of waste recycling.
Recycling waste will not only save our natural resources but will also help save
energy. By simply recycling an item or making a basic fix to it, we can save all the
energy that would have been consumed in the process of making it. The same
example can be taken with plastic items. A large amount of energy can be saved by
simply reusing the plastic items. To recycle waste is to simply reduce pollution. By
recycling plastic material, we can reduce air pollution as well as water pollution.
Plastic factories produce a large amount of smoke while producing plastic material
at same time; if we don't have a proper waste disposal system then those waste
emissions will cause water pollution. Recycling helps reduce pollution too.
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 In simple words, recycling waste is essential for both the natural environment and
humans. To sum up, recycling minimizes the need for raw materials so that the
rainforests can be preserved. Great amounts of energy are used when making
products from raw materials. Recycling requires much less energy and therefore helps
to preserve natural resources. One needs to know the importance of recycling; at
the same time being earth friendly can help make our planet a better place to live in.
(i) Make Notes, using Headings, Subheadings and abbreviations whether
necessary. (3 Marks)
(ii) Write Summary (2 Marks)
Answer:
(i) Recycling
1. Meaning
1.1 Prcs. of reusing
1.2 Imp. to recycle
1.2.1 to save natural resources
2. Waste recycling
2.1 Help to save energy
2.2 Reduce pllutn.
2.3 Imp for envt. & humans
3. Plastic Material
3.1 Reduce Pollution
3.1.1 Water Pollution
3.1.2 Air Pollution
3.2 Imp to have waste disposal system
Key Note-
1. prcs – Process
2. Imp – Important
3. Envt – Environment
4. & - And
5. Sysm- System

(ii) Summary :
Recycling is regarded as the process of reusing the items which are generally
regarded as waste but are of great utility. It ensures the conservation of
natural resources for future generation along with saving energy. Recycling
of plastic material also helps in reducing air and water pollution. In short,
we can say that recycling is the best way to have ecofriendly environment.

Question 8:
(a) Explain physical non-verbal communication (3 Marks)
Answer:
Physical non-verbal communication: An individual's body language that is, facial
expressions, stances, gestures, touches and other physical signals constitute this
type of communication. For example, leaning forward may mean friendliness,
acceptance and interest, while crossing arms can be interpreted as antagonistic
or defensive posture.
Research estimates show that physical, non-verbal communication accounts for
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 55 percent of all communication. Smiles, frowns, pursing of lips, clenching of
wrists etc. transmit emotions which are not expressed through verbal
communication.

(b) Convert the following sentences into active voice:

(i) A story was written on the wall by Rohit.
(ii) A song was sung by Ravi.
(iii) What was eaten by you for breakfast? (3 1 M Each=3 Marks)
Answer :
(i) Rohit wrote a story on the wall.
(ii) Ravi Sang a Song.
(iii) What did you eat for breakfast?

(c) Précis Writing

Read the following passages and write a précis for the same.
There are approx. 6000 languages spoken worldwide. Out of them only some
languages have script while others exist only in spoken form. Language diversity
is common phenomena to the human. But Language death is equal to human
death. In this regard, we need to work for language documentation, making new
language policy, and new application to enhance the vitality of languages. A
language is endangered when it is on a path toward extinction. Indeed, without
proper documentation, a language that is extinct can never be revived. A
language is in danger when its speakers cease to use it, use it in an increasingly
reduced number of communicative domains, and cease to pass it on from one
generation to the next. That is, there are no new speakers, adults or children.
About 97% of the world‟s people speak about 4% of the world‟s languages; and
conversely, about 96% of the world‟s languages are spoken by about 3% of the
world‟s people (Bernard 1996: 142). Many indigenous peoples, associating their
disadvantaged social position with their culture, have come to believe that their
languages are not worth retaining. For linguist, each language is unique and each
language is a unique expression of the human experience of the world. Thus, the
knowledge of any single language may be the key to answering fundamental
questions of the future. Every time a language dies, we have less evidence for
understanding patterns in the structure and function of human language, human
prehistory, and the maintenance of the world‟s diverse ecosystems. Raising
awareness about language loss and language diversity will only be successful
when meaningful contemporary roles for minority languages can be established,
for the requirements of modern life within the community as well as in national
and international contexts. External Specialists and Speech Communities External
language specialists, primarily linguists, educators, and activists see their first
task as documentation. (5 Marks)
Answer:
Language Endangerment: An Alarming Situation {1 M}
Language endangerment is an alarming situation worldwide. Language teachers
should be well trained linguistically and language documentation should be
encouraged by state authorities. Similarly, linguists, language activists, and
language policy makers have a long-term task to compile and disseminate the
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 most effective and viable mechanisms for sustaining and revitalizing the
endangered languages.

Question 9:
(a) Body language speaks the truth while speaker may play with words to hide the
truth, comment? (2 Marks)
Answer:
Non-verbal communications such as body language and visual cues affect the
quality of interaction among individuals or group. An individual's facial
expressions, stances, gestures, touches, and other physical signals constitute
body language of communication. For example, leaning forward may mean
friendliness, acceptance and interest, while crossing arms can be interpreted as
antagonistic or defensive posture.

(b) (i) Choose the word which best expresses the meaning of the given word :
SCINTILLATING
(1) Smoldering (2) Glittering (3) Touching (4) Warming
(1 Mark)
(ii) Select a suitable antonym for the word given under:
FIDELITY
(1) Commitment (2) Inconstancy (3) Ambitious (4) Devotion.
(1 Mark)
(iii) Change the following sentence to indirect speech:
Varun said, ‘’Every Kid should learn coding.’’ (1 Mark)
Answer:
(i) Glittering
(ii) Inconstancy
(iii) Varun said that Every Kid should learn coding.

(c) You bought a printer a few days back from a leading chain of electronic stores.
Now you found a few defects in its working. Write a letter to the dealer
complaining about the problem and requesting him to rectify the problem or
replace the printer. (5 Marks)
Answer:-
XYZ Electronics
New Delhi. Date: 20th Dec, 2018
Manager, Customer Care XYZ Electronics
New Delhi.
Dear Sir/Ma‘am
Sub: Complaint regarding the printer model CanXR 0987, Invoice No:
Prin/CanXR/6 - 12- 2018.
This is regarding the printer that I bought on Dec 6, 2018. After installation, it
worked fine for a few days. But lately every time a print command is given, it
paper gets stuck and the scanning/photocopying option is not working at all.
Please send your executive to examine the problem and rectify it at the earliest
or get it replaced. I had bought the equipment to take print-outs at home for an
urgent project work submission.
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 I request you to look into the problem urgently and send the expert tomorrow
evening by 7PM. You can send the name and mobile number of the executive at
my number XXXXXXXXXX. Looking forward to a prompt response.
(Signed)
ABC

Question 10:
(a) Explain how listening for Understanding helps in communication. (2 Marks)
Answer 10:
Listening for Understanding: We are bombarded by noise and sound in all our
waking hours. We 'hear' conversations, news, gossips and many other forms of
speech all the time. However, most of it is not listened to carefully and therefore,
not understood, partially understood or misunderstood. A good listener does not
only listen

(b) (i) Change the sentence from Active to Passive Voice.

Question – The crew cleaned the entire stretch of highway (1 Marks)

(ii) Change the sentence from Passive to Active Voice.

Question – The house was remodeled by the homeowners to help it sell.
(1 Marks)
(iii) Change the following sentence to indirect speech.
Question – Socrates said, "Virtue is its own reward." (1 Marks)
Answer:
(i) The entire stretch of highway was cleaned by the crew.
(ii) The homeowners remodeled the house to help it sell.
(iii) Socrates said that virtue is its own reward.

(c) Write an article of about 250 words on the topic, "The Pros and cons of online
education in India". (5 Marks)
Answer:
The Pros and cons of online education in India
- By XYZ
Pros and Cons of Online Classes – The widespread outbreak of coronavirus
has led to moving towards online classes by schools, colleges, coaching's,
etc. Although online classes were already in place in many places, COVID-19 has
paved a new way of teaching all over the country through online classes. Almost
all schools, colleges, universities, etc. have now started online classes for the
students so as to continue the studies in this time of pandemic. These online
classes are being helpful for the teachers and students in completing the
syllabus of the class which has not been possible in any other way. At present,
both teachers and students have adopted this new model of education and are
trying to get used to it with each passing day. But along with various
advantages of online classes, there are some disadvantages too. Students are
facing some difficulties in online classes like difficulty in clearing doubts properly,
network issues and many more. Along with this, many still belive that online
classes can never be an alternative to brick and mortar classes. Here, we have
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listed some of the pros and cons of online classes. Read the full article to know
about all the pros and cons of online classes.
Pros of Online Classes
Following are the pros of online classes-
Study Anywhere – Online classes are available to a student sitting anywhere in
the world provided he/she has a proper internet connection. So, if students are
not in the city of their school or college then also they can avail the online
classes easily. All they need to have is a working internet connection.
Elimination of travel time and Cost –
Online classes have eliminated the time and cost required to reach the school or
college. In this way students are saving a lot of their precious time which they
can utilize in any other productive work. Also, the cost incurred in daily travel to
school and back to home has been totally eliminated with online classes.
Prevention of loss of studies – In this time of pandemic, online classes have
come up as a boon for students. This is because if schools and colleges did not
use online classes for studies, students would have wasted a lot of time in the
session and it would have been really difficult to cover the entire course later.
Through online classes, the session is going on at a similar pace as it would have
been in offline classes.
Individualized study – Online classes provide an individualized study
environment to a student where he/she can study alone. Many times, students
become shyt in asking queries in front of the entire class but in online classes no
one is around, so students can easily ask questions.
Moreover, this individualized study also prevents students from any kind of
disturbance.
Monitoring by Parents – With the help of online classes, parents are also able to
check and know what their children are studying, how teachers are teaching in
the class. Also, they can also motivate their children to take up doubts.
Basically, online classes also involve parents in the studies of students which
was not the same in case of offline classes.
Introduction to new technologies – Online classes have introduced students to
new technologies. They now know how to use a particular software through
which the school is teaching or have knowledge about various other platforms
which are being used for online classes. So, these classes are also making the
students technologically advanced.
Cons of Online Classes
As online classes have emerged as the only solution for education during
lockdown, there are many cons related to it. However these can be minimized
with a little care. Network Issues - One of the biggest problems of online
classes is network issues. It has been seen students struggle a lot to connect
to the session due to internet issues. Many times, teachers are not audible, not
visible and much more. In such cases of network disruption, all the students
start to talk at the same time which again creates another mess. So, network
issues must be resolved for proper conduction of online classes.
Lacks One to One teaching - Online classes lack one to one teaching means
these lack proper communication between students and teachers. Although
students have the option to ask their queries in the online classes also but
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 students find it difficult to get their doubts solved in a proper way. So many
students are asking or putting their queries in the chat section that some are
missed.
Continuous Use of Mobile/Laptop - One major concern of online classes is
that students have to be on electronic devices like mobile phones, laptops or
tablets continuously for 5-6 hours. This is not beneficial for students and will
also cause health issues like eye strain to the students.
Requires Self-Discipline - In online classes, teachers are not able to monitor the
students in the same way as offline classes, so these require a student to be
self- disciplined. If a student is not disciplined, he/she may not pay attention to
what the teacher is teaching in the class.
Proper utilization of online classes can lead to a new model of education
involving online classes along with offline classes. But, proper care should be
taken to minimize the cons of online classes.

Question 11:
(a) Letter Writing
Write a letter from xyz pvt ltd confirming the order placed and other details.
(5 Marks)
Answer 11:
Writing Formal Letters and Official Communication
Kalu Sarai, New Delhi
August 09, 2019
MR. Ramesh
Director, Sales and Marketing
XYZ Pvt. Limited
Dear Sir/Ma‘am,
Sub: Order Confirmation (No: XYZ/0012/Jun 2019)
I would like to take the opportunity to thank you for giving us a business
opportunity. It is an honour for us to be serving your esteemed organization that
enjoys a formidable reputation.
I would like to inform you that the 1800 units of machinery ordered vide Order
no. XYZ/0012/Jun 2019, will be delivered as per the mutually decided date. In
addition, our experts would come to install the machinery and give a detailed
demo of its working. We would also provide a free for the next two years,
taking care of any wear and tear or products damage. The products has two year
warranty period.
For any other query regarding the machinery ordered and its functioning, please
feel free to contact us. We would be happy to serve you at the earliest.
Thanks and Regards,
Ashita Bhargava
Sr. Manager
Operations and Admin Department

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(b) Explain verbal communication. (3 Marks)
Answer:
Verbal: Verbal communication involves the use of words and language in
delivering the intended message. Though ‗verbal‘ primarily refers to
communication through the spoken medium, while categorizing ‗types‘ of
verbal communication the written and oral form of communication are included.
 Written communication includes letters and documents, e-mails, reports,
handbooks, brochures, various chat platforms, SMS and any form of written
interaction between people. The written form of communication is essential
and indispensable for formal business interactions (contracts, memos, press
releases, formal business proposals etc.) and legal instructions and
documentation. The effectiveness of written communication depends on the
writing style, grammar, vocabulary, and clarity.
 Oral Communication refers to communication through the spoken word, either
face-to-face, telephonically, via voice chat, video conferencing or any other
medium. Formal medium like lectures, conferences, seminars, meetings and
informal conversations, chit-chat, gossip etc. are part of oral communications.
Effective of oral communication depends on clear speech and the tone used
by the speaker. Speaking in too high/ low volume or too fast/slow can also
impair communication between people. Even non-verbal communications such
as body language and visual cues effect the quality of interaction among
individuals or group.

(c) Change the following sentences to indirect speech.

1. She said, “I shall be taking a test.”
2. The clerk asked his manager, “Shall I email this letter again, Sir?”
(2 Marks)
Answer:
1. She said that she would be taking a test.
2. The clerk asked his manager if he should email that letter again.

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