MCQ Chapter I

1) Law of contract is—

a) not the whole of agreements nor is it the whole law of obligations
b) the whole law of agreements
c) the whole law of obligations
d) none of the above.

2)An agreement is a voidable contract when it is –

a) enforceable if certain conditions are fulfilled.
B)enforceable bylaw at the option of the aggrieved party .
c)enforceable by both parties
d)not enforceable at all.

3)An agreement not enforceable by law is said to be

a)void ,
b)voidable,
c)valid,
d)unenforceable,
e) illegal.

4)A contract is
a) a legal obligation
b) an agreement plus a legal obligation
c) consensus ad idem,
d) agreement plus a legal object.

5)A specific offer can be accepted by

a)any person
b)any friend of offerer
c) the person to whom it is made
d)any friend of offeree.

6)A letter of acceptance sufficiently stamped and duly addressed is put into course of
transmission. There is
a) a contract voidable at the option of acceptor
b)a contract voidable at the option of offerer,
c)no contract at all,
d)a valid

7)Acceptance may be revoked by the acceptor

a) any time
b)before the letter of acceptance reaches the offerer
c)after the letter of acceptance reaches the offeree
d)before the death of the acceptor.
8)An offer is made to Mani in crowd It –
a) can be accepted by him alone,
b)may be accepted by any person who hears it.
C)may be accepted by his brother
d)may be accepted by his friends.

9)A makes an offer to B on 10th by a letter which reaches B on 12th B posts letter of acceptance
on 14th which reaches A on 16th . The communication of acceptance is complete as against A on
–
a) 12th
b) 14th
c)16th

10)Considerationa)
must be adequate to the promise made,
b)need not be adequate to the promise made
c)must be of reasonable value
d) must be of more value than the value of promise made.

11)A promise to compensate ,wholly or in part , a person who has already voluntarily done
something for the promisor is
a)enforceable
b)not enforceable because it is without consideration,
c) void
d) voidable.

12)Consideration in a contract –
a) may be past ,present or future,
b)may be present or future only .
c)must be present only.
D)must be future only.

13)An agreement made without consideration is

a)valid,
b)illegal ,
c)voidable
d)void

14) An agreement with or by minor is –

a)void
b)voidable at the option of the minor
c) voidable at the option of the other party
d) valid.
15)A minor enters into a contract for the purchase of certain necessaries , in such case –
a) he is not personally liable to pay
b)he is liable to pay
c)his estate is liable to pay
d) his guardian is liable to pay.

16)The contractual capacity of a company is regulated by –

a)its memorandum of association and the provisions of the companies act, 1956
b)the terms of contract entered into with a third party
c)its articles of association
d) its prospectus.

17)Flaw in a capacity to contract may arise from –

a) want of consideration
b)unsoundness of mind
c)illegality of object
d) uncertainty of object.

18) Where consent is caused by fraud or misrepresentation , the contract is –

a) voidable at the option of the aggrieved party
b) void
c) unenforceable
d) not affected in any manner .

19)Where both the parties to an agreement are under a mistake as a matter of fact essential to the
agreement ,the agreement Is –
a) void
b) voidable
c)illegal
d) not affected at all.

20)Consent given to a contract under some misrepresentation by the other party makes the
contract –
a) void
b) invalid
c) unenforceable
d) voidable

21)When a person positively asserts that a fact is true when his information does not warrant it to
be so, though he believes it to be true , there is –
a) misrepresentation
b) fraud
c) undue influence
d) coercion.
.
22)When consent to an agreement is obtained by undue influence, the agreement is a –
a)contract voidable at the option of the party whose consent was so obtained
b) void contract.
C) valid contract
d)void agreement.

23)A promise made without the intention of performing it amounts to –

a)innocent misrepresentation
b) fraud
c)negligent Misrepresentation
d) wrongful misrepresentation

24) The unlawful detention of any property of a person to obtain his consent to a contract
amounts to –
a) misrepresentation
b) fraud
c) undue influence
d) coercion.

25)An agreement made with an alien enemy is

a)unlawful on the ground of public policy
b)unlawful because it becomes difficult to be performed
c) valid,
d)voidable.

26) An agreement to do an impossible act is,

a) void
b) voidable
c) illegal
d) enforceable under certain circumstances.

27)A wagering agreement is .

a) forbidden by law,
b) immoral,
c) opposed to public policy
d) none of the above.

28) If a contract contains an undertaking to perform an impossibility , the contract is –

a) void ab initio
b)void
c)voidable at the option of the plaintiff
d) illegal
29)If a new contract is substituted in place of an existing contract , it is called –
a)alteration
b)rescission
c) novation
d)waiver ,
e)remission

30) In case of a wrongful dishonour of a cheque by a banker having funds to the credit of the
customer ,the court may award----
a) ordinary damages ,
b) nominal damages
c)exemplary damages
d) contemptuous damages.

31) A quasi contract –

a) is a contract
b) as an agreement
c)creates only legal obligation
d)is none of these

32)Quantum meruit means –

a)a non gratuitous promise
b)an implied promise
c)as mush as earned
d)as much as is paid.

33) A contract of indemnity is a –

a) a contingent contract
b) wagering contract
c)quasi contract
d) void contract

34)Where there are co-sureties ,a release by the creditor of one of them –

a) discharges the other co-sureties
b) does not discharge the other co-sureties
c)makes all the co-sureties immediately liable
d) makes the contract of guarantee void.

35) The right of subrogation in a contract of guarantee is available to the

a) creditor
b) principal debtor
c) surety
d)indemnified
 MCQ Chapter II

1. In a sale, the property in goods –

a) is transferred to the buyer ,
b) is yet to be transferred to the buyer
c) may be transferred at a future time
d) is transferred when goods are delivered to the buyer
e)is transferred when the buyer pays the price

2. In a sale ,if the goods are destroyed , the loss falls on –

a) the buyer
b) the seller
c) partly on buyer and partly on seller
d)the seller if price has not been paid by the buyer.

3. The term property as used in the sale of goods act means

a) possession
b ) ownership
c) ownership and possession both
d) the subject matter of contract of sale.

4. If a price is not determined by the parties in a contract of sale , the buyer is bound to pay
a)the price demanded by the seller ,
b) a reasonable price
c) the price which the buyer thinks is reasonable
d) the price to be determined by a third independent person.

5. A condition is a stipulation which is a –

a) essential to the main purpose of contract of sale
b) not essential to the main purpose of contract of sale ,
c) collateral to the main purpose of contract of sale d) none of the above.

6. In case of breach of a warranty , the buyer can –

a) repudiate the contract
b) claim damages only
c) return the goods
d) refuse to pay the price
e) refuse to take delivery of the goods .

7. Which of the following is not a remedy available to buyers?

a. Right to damages
b. Right to reject the goods
c. Right to specific performance
d. Right to demand replacement goods
 MCQ Chapter III

1. In the case of partnership firm. Audit is

a) Compulsory
b) Optional
c) None of the above.

2. Property of the company belongs to

a) Company
b) Share holders
c) Members
d) Promoters

3. Minimum paid up share capita l in case of a private company is _______

a) 1 Lakh
b) 2 Lakhs
c) 3 Lakhs
d) 4 Lakhs

4. Age limit of Directors in case of private company is ________

a) 65
b) 70
c) 75
d) No limit

5. The liability of members if company is limited by guarantee.

a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above

6. The liability of members if company is limited by shares

a) Unpaid value of shares
b) Guarantee amount
c) Unlimited liability
d) None of the above

7. A company is named as govt. company if it is holds ______ % of paid up share capital

a) more than 30
b) more than 40
c) more than 50
d) None

8. Central Government permission is required in case of _______ conversion __________

a) Private to public
b) Public to private
c) Both (a) or (b)
d) None of the above
9. In case of Non –Profit making Companies notice of general meeting should be given with
in ______days
a) 14
b) 15
c) 21
d) 22

10. If the guarantee Co. having no share capital the liability of shareholders will be
a) To the extent of guarantee
b) Unpaid value of shares
c) Unlimited
d) None of the above

11. Maximum members in case of private company

a) 50
b) 100
c) 75
d) None of these

12. Maximum paid up capital in case of public company.

a) 50 Lakhs
b) 100 Lakhs
c) 125 Lakhs
d) None of these

13. Any change in the address of the registered office must be communicated to the registrar
with in:
a) 15 days
b) 30 days
c) 1 Month
d) 12 months

14. In case of forgeries acts done in the name of the company are
a) Valid
b) Void
c) Void ab initio
d) None of the above

15. Signature of memorandum and articles should be done by ___________ number of

persons in case of public company
a) 7
b) 5
c) 4
d) None of these
16. Address of the registered office is situated in
a) MOA
b) AOA
c) Prospectus
d) None of these

17. The date of the opening of the subscription list means the beginning of the ________from
the day of the issue of prospectus.
a) 5 th
b) 3 rd
c) 10 th
d) 20 th

18. When the shares are transferred to X from Y. Y will be a __________ of the company
a) Member
b) Shareholder
c) Partner
d) None of these

19. A company can become a members of another company if it is so authorized by

_________
a) MOA
b) AOA
c) Both (a) & (b)
d) None of the above

20. A company can create ‘reserve capital’ by passing __________

a) an ordinary resolution
b) a special resolution
c) a board resolution
d) None of the above

21. Paying back of capital is called

a) Redemption
b) Conversion
c) Participation
d) None

22. For reducing its share capital it should give notice to whom?
a) Debtors
b) Creditors
c) Both a) & b)
d) None of the above

23. With in 30 days of completion of buy back company shall file the details with whom
_________
a) Registrar
b) SEBI
c) Both a) & b)
d) None of the above
24. Forfeiture can be made only if it is authorized by ________
a) AOA
b) MOA
c) ROC
d) C.G

25. _________ is voluntary passage of the rights and duties of member from a share holder.
a) Transfer
b) Transmission
c) Both (a) & (b)
d) None of the above

26. What is the time limit for conducting statutory meeting?

a) 1 to 5 months
b) 1 to 6 months
c) 1 to 9 months
d) None of these

27. In which one of the following cases an ordinary resolution may be passed _________
a) Commencement of a new business
b) alteration of articles
c) Compulsory winding up of the company
d) none of the above

28. In which one or more of the following company a member does not have a right to
appoint
proxy:
a) Public company having share capital
b) Public company not having share capital
c) Private company not having a share capital
d) None of the above

29. Directors are __________ of the company

a) Employees
b) Employers
c) Both a) & b)
d) None of the above

30. ________ is the official recording of the proceedings of a meeting

a) Quorum
b) Minutes
c) Both a) & b)
d) None of the above
 MCQ Chapter IV

1. In a promissory note, the amount of money payable

(a) must be certain
(b) may be certain or uncertain
(c) is usually uncertain
(d) none of the above.

2. The 1. The Negotiable Instruments Act, 1881 applies to

(a) the whole of India
(b) the whole of India except the State of Jammu and Kashmir
(c) those states as notified by the Union Government from time to time in the Official Gazette
(d) the whole of India except the State of Jammu and Kashmir and the North- Eastern States.
Negotiable Instruments Act, 1881 came into force on
(a) 9th December, 1881
(b) 19th December, 1881
(c) 1st March, 1882
(d) none of the above.

3. The undertaking contained in a promissory note, to pay a certain sum of money is

(a) conditional
(b) unconditional
(c) may be conditional or unconditional depending upon the circumstances
(d) none of the above.

4. A bill of exchange contains a/an

(a) unconditional undertaking
(b) unconditional order
(c) conditional undertaking
(d) conditional order.

5. Cheque is a
(a) promissory note
(b) bill of exchange
(c) both (a) and (b) above
(d) None of the above.

6. The term "a cheque in the electronic form" is defined in the Negotiable Instruments Act,
1881 - under
(a) section 6(a)
(b) section 6(l)(a)
(c) explanation 1(a) of section 6
(d) section 6A.
7. The term 'Negotiable instrument' is defined in the Negotiable Instruments Act, 1881,
under section
(a) 12
(b) 13
(c) 13A
(d) 2(d).

8. The term 'negotiation' in section 14 of the Negotiable Instruments Act, 1881 refers to
(a) the transfer of a bill of exchange, promissory note or cheque to any person, so as to constitute
the person the holder thereof
(b) the payment by a bank on a negotiable instrument after due verification of the instrument
(c) the bargaining between the parties to a negotiable instrument
(d) all of the above.

9. If an instrument may be construed either as a promissory note or bill of exchange, it is

(a) a valid instrument
(b) an ambiguous instrument
(c) a returnable instrument
(d) none of the above.

10.If in an instrument the amount undertaken or ordered to be paid is stated differently in

figures and in words
(a)the instrument is void due to uncertainty
(b)the amount stated in figure shall be the amount undertaken or ordered to be paid
(c) the amount stated in words shall be the amount undertaken or ordered to be paid
(d) none of the above.

11. Under section 16 of the Negotiable Instrument Act, 'indorsement in blank' of an

instrument means
(a) where the indorser does not write anything on the instrument
(b) where the indorser signs his name only on the instrument
(c) where the indorser writes the name of the person who is directed to pay
(d) none of the above.

12. 'At sight' under section 21 of the Negotiable Instrument Act, 1881, means
(a) on presentation
(b) on demand
(c) on coming into vision
(d) none of the above.

13. A promissory note or bill of exchange which is not expressed to be payable on demand,
at sight or on presentment is at maturity
(a) on the 30th day after the day on which it is expressed to be payable
(b) on the 3rd day after the day on which it is expressed to be payable
(c) on the 5th day after the day on which it is expressed to be payable
(d) on the 4th day after the day on which it is expressed to be payable.

14. If a minor draws, indorses, deliver or negotiates an instrument, such instrument binds
(a) all parties to the instrument including the minor
(b) only the minor and not other parties to the instrument
(c) all parties to the instrument except the minor
(d) none of the above.

15. In a promissory note, the amount of money payable

(a) must be certain
(b) may be certain or uncertain
(c) is usually uncertain
(d) none of the above.

16. An authority to draw bills of exchange

(a) itself import an authority to indorse
(b) does not itself import an authority to indorse
(c) sometime import an authority to indorse
(d) none of the above.

17. The term 'legal representative' in section 29 of the Negotiable Instruments Act, 1881
(a) does not include executors or administrator (Rama v. Pravin, AIR 1926 Mad 389)
(b) includes executors or administrator (K. Subbanna v. K. Subbarayudu, AIR 1926 Mad 390)
(c) includes executors but does not include administrators (P. Nayar v. T. Ramanna, AIR 1929
Mad 389)
(d) includes only administrators but does not include executors (P.K. Pati v. Damodar Sahu, AIR
1953 Ori 179).

18. Can a drawer escape from his liability?

(a) no, a drawer can never escape from his liability
(b) yes, a drawer can limit or exclude his liability by inserting in the bill an express stipulation to
that effect
(c) in certain cases although he can escape from his liability but always he cannot so escape
(d) none of the above.

19. In which of the following case the elementary law is laid down that where there is no
acceptance, no cause of action can have arisen to the payee against the drawee
(a) Khandas Narandas v. Dahiabhai, ILR 3 Bom 182 (183)
(b) Venkayya Pantulu v. Sun/a Prakasamma, AIR 1940 Mad 879
(c) Karak Rubber Co. Ltd. v. Burden, (1972) 1 All ER 1210
(d) K.A. Lona v. D.H. Ibrahim, AIR 1981 Ker 816 (DB).

20. A bill is drawn payable to 'A' or order. 'A' indorses it to 'B', the indorsement not
containing the words '"or order" or any equivalent words. Can 'B' negotiate the
instrument?
(a) yes
(b) no
(c) not always
(d) none of the above.

21. Where an indorser of an instrument excludes his liability and afterwards becomes the
holder of the instrument, who are liable to him?
(a) no one is liable to him
(b) all intermediate indorsers are liable to him
(c) only the immediate prior indorser is liable to him
(d) none of the above.

22. Can the legal representative of a deceased person negotiate a promissory note, bill of
exchange or cheque payable to order by delivery only which was indorsed by the deceased
but not delivered by him?
(a) yes, the legal representative can negotiate the instrument by delivery only
(b) no, the legal representative can not negotiable an instrument by delivery only. He must re-
indorse and deliver the instrument for negotiating it
(c) an instrument indorsed by a deceased person has no legal validity and is void
(d) none of the above.

23. Can the holder of a negotiable instrument indorsed in blank convert the indorsement
into an indorsement in full?
(a) no, such a conversion is not possible under the Negotiable Instruments Act, 1881 (Section 49)
(b) yes, the holder can, without signing his own name, and by writing above the indorser's
signature a direction to pay to any other person as indorsee, convert the indorsement in blank
into an indorsement in full (Section 49)
(c) yes, the holder can by signing his own name and by writing above the indorser's signature a
direction to pay to any other person as indorsee, convert the indorsement in blank to an
indorsement in full (Section 49)
(d) none of the above.

24.The indorsement of a negotiable instrument followed by delivery

(a) transfers to the indorsee the property in the bill, provided the indorsement must be an
indorsement in full
(b) does not transfer the property in the bill to anyone
(c) transfers to the indorsee the property in the bill
(d) transfers to the holder the property in bill.

25. When presentment for payment is to be made under section 65 of the Act?
(a) Presentment for payment can be made at any reasonable time.
(b) Presentment for payment must be made during the usual hours of business and, if at a
banker's, within banking hours.
(c) There is no such stipulation on the time for presentment.
(d) none of the above.

26. In determining reasonable time for the purpose of payment of a negotiable instrument
(a) public holidays are included
(b) public holidays are excluded
(c) only the holidays observed by the banks are excluded
(d) none of the above.

27. The question of the reasonableness of the time for presenting a bill of exchange for
payment is a
(a) question of law
(b) question of fact
(c) mixed question of law and fact
(d) none of the above.

28. Under section 76(b) of the Negotiable Instruments Act, 1881, the engagement to pay
must have been entered into
(a) at maturity (Mehar v. Hari Gaur, AIR 1935 Lah 666)
(b) after maturity (Sivaram v. Jayaram, AIR 1960 Mad 297 (DB)
(c) prior to maturity (Thakur Din v. Oudh Commercial Bank Ltd., AIR 1999 Oudh 16)
(d) none of the above.

29. A note under section 99 of the Negotiable Instruments Act should contain among other
things
(a) place of the notary
(b) charges of notary
(c) both (a) and (b)
(d) none of the above.

30. A notice of protest under section 102 of the Negotiable Instruments Act, 1881
(a) may be given by the notary public who makes the protest
(b) must always be given by the notary public who makes the protest
(c) must be given by the holder
(d) none of the above.

31. Under section 118 of the Negotiable Instruments Act, 1881, it is presumed, until the
contrary is proved, that every transfer of a negotiable instrument was made
(a) after its maturity
(b) before its maturity
(c) at its maturity
(d) none of the above.

32. To whom of the following, payment of the amount due on a promissory note, bill of
exchange or cheque must be made in order to discharge the maker or acceptor
(a) holder of the instrument
(b) indorser of the instrument
(c) indorsee of the instrument
(d) none of the above.

33. The provisions of section 87 of the Negotiable Instruments Act, 1881, are subject to the
provisions of
(a) sections 20,48, 68 and 125 of the Act
(b) sections 20, 49, 68 and 122 of the Act
(c) sections 20, 49, 86 and 125 of the Act
(d) sections 20, 49, 66 and 125 of the Act.

34. Under section 118 of the Negotiable Instruments Act, the onus of proving absence of
consideration in the execution of a negotiable instrument is on the
(a) indorser (Zohra Jan v. Rajan Bibi, 28 IC 402)
(b) executant (Zohra Jan v. Rajan Bibi, 28 IC 402)
(c) drawee (R.S. Rajeswara Sethupathi v. Chidambaram Chettiar, AIR 1938 PC 123)
(d) none of the above.

35. Which of the following is not a justified round of dishonouring of cheque by anker?
(a) the cheque is post-dated and presented before the ostensible date
(b) the banker had sufficient funds, but the funds are not properly applicable towards the
payment of the cheque
(c) if the cheque is altered in parts
(d) if the cheque is duly presented.

36. When the acceptor of an instrument is also a drawer, notice of dishonour is

(a) necessary (section 98A)
(b) not necessary [section 98(e)]
(c) not always necessary but under certain circumstances mentioned in section 98A of the Act, it
is a must
(d) none of the above.
37. Under section 97, of the Negotiable Instruments Act when the party to whom notice of
dishonour is dispatched is dead, but the party despatching the notice is ignorant of his
death, the notice is
(a) sufficient
(b) not sufficient
(c) null and void and has no effect
(d) none of the above.

38. If the words "not negotiable" are used with special crossing in a cheque, the cheque is
(a) not transferable
(b) transferable
(c) negotiable under certain circumstances
(d) none of the above.

39. Crossing of a cheque effects the

(a) negotiability of the cheque
(b) mode of payment on the cheque
(c) both (a) and (b)
(d) none of the above.

40. What is the presumption under section 137 of the Negotiable Instruments Act, 1881?
(a) a negotiable instrument drawn in a foreign country is genuine
(b) the law of any foreign country regarding promissory notes, bills of exchange and cheques is
same as that of India
(c) both (a) and (b)
(d) none of the above.

41. Who among the following cannot cross a cheque?

(a) drawer
(b) holder
(c) banker
(d) foreigner.

42. As per section 147 of the Negotiable Instruments Act, 1881, every offence punishable
under the Act are
(a) compoundable
(b) non-compoundable
(c) cognizable
(d) both (b) and (c) above.

43. Under the provisions of section 143 of the Negotiable Instruments Act, 1881, all offences
under the Act are to be tried by
(a) any Judicial Magistrate
(b) Judicial Magistrate of the First Class or by a Metropolitan Magistrate
(c) only a District Judge
(d) none of the above.
44. For what term of imprisonment an offender under section 138 of the Negotiable
Instruments Act can be punished?
(a) for a term which may extend to two years
(b) for a term which may extend to one year
(c) for a term not exceeding three years
(d) none of the above.

45. Dishonour by non-acceptance takes place

(a) when the bill is properly presented for acceptance, except where presentment is excused, but
the drawee makes the default in accepting it
(b) when the Dill is properly presented for acceptance, except where presentment is excused, but
the drawee makes the default in paying it
(c) when the bill is properly presented for payment, except where presentment is excused, but the
drawee fails to accept it
(d) none of the above.

46. The presumption as to the date of a negotiable instrument under section 118 is that,
every negotiable instrument bearing a date was made or drawn
(a) prior to that date
(b) on such date
(c) may be on or prior to that date
(d) none of the above.

47. In the absence of a contract to the contrary, the liability of the maker or drawer of a
foreign negotiable instrument is regulated in all essential matters
(a) by the law of the place where the instrument is made payable (section 134)
(b) by the law of the place where the instrument is indorsed (section 134)
(c) by the law of the place where the instrument is made (section 134)
(d) none of the above.

48. Chapter XVII was inserted into the Negotiable Instruments Act, 1881, by amendment
of the Act in the year
(a) 1888
(b) 1988
(c) 1998
(d) none of the above.

49. Chapter XVII contain sections

(a) 138 to 142
(b) 136 to 142
(c) 112 to 124
(d) none of the above.

50. With effect from which date, the term of imprisonment under section 138 was increased
to two years from one year?
(a) from 6-2-2002
(b) from 6-2-2003
(c) from 1-4-1989
(d) none of the above.
51.Section 138 of the Negotiable Instruments
Act, 1881,................ mens rea
(a) partially excludes
(b) includes
(c) sometime includes
(d) none of the above.

52.When a cheque has become invalid because of the expiry of the stipulated period, can it
be re-validated by the drawer by alteration of dates?
(a) yes, the drawer can re-validate the cheque by alteration of dates
(b) no, the drawer cannot re-validate it by so alteration of dates
(c) although the drawer cannot revalidate the cheque, but the drawee can at his discretion
revaliate it
(d) none of the above.

53. For the purpose of attracting the provisions of section 138 of the Negotiable
InstrumentsAct, 1881, a cheque has to be presented to the bank
(a) within a period of six months
(b) within a period of six months from the date on which it is drawn or within the period of its
validity, whichever is earlier
(c) within a period of 15 days from the date on which it is drawn
(d) none of the above.

54.Cognizance of an offence under section 138 can be taken by a court only on a/an
(a) police report (section 142)
(b) complaint (section 142)
(c) application to the District Judge (section
(d) none of the above.

55. Who should make a complaint to a court for the purpose of taking cognizance of an
offence under section 138?
(a) the payer or as the case may be, the holder in due course of the cheque
(b) any person who is effected can make a complaint
(c) the payee with the written permission of the drawee
(d) none of the above.

56. A complaint against an offence under section 138 of the Negotiable Instrument Act,
1881
(a) must be in writing (section 142) -
(b) may be oral or in writing (section 142)
(c) must be in writing containing a declaration by the drawee that he consents to such filing of
the complaint (section 142)
(d) none of the above.

57. In the trial of an offence under section 138 of the Negotiable Instruments Act, the
provisions of sections 262 to 265 of the Code of Criminal Procedure
(a) shall apply (section 143)
(b) shall not apply (section 143)
(c) sometimes shall apply (section 143)
(d) none of the above.
58. Under section 143 of the Negotiable Instruments Act, an endeavour shall be made to
conclude the trial within.......................... months from the date of filing of the complaint.
(a) 9
(b) 3
(c) 6
(d) 12.

59. Can a 'notice in writing' envisaged in section 138(b) of the Negotiable Instruments Act,
1881, be sent by telegraph?
(a) no (V. Raju v. P. Subbarama Naidu, AIR 1931 Mad 301)
(b) yes [M.V. Muthuramlingam v. D. Narayanswamy, (1995) 3 Comp Cas 77 Mad]
(c) yes [A.B. Steels v. Krishna Finance, (1996) 86 Comp Cas 295 (Mad)]
(d) none of the above.

60. The provision of section 147 of the Negotiable Instruments Act, 1881, that every offence
punishable under this Act shall be compoundable was inserted by the
(a) amending Act of 1988
(b) amending Act of 1980
(c) amending Act of 2002
(d) none of the above.

61. The liability under section 138 of the Negotiable Instruments Act, 1881, is
(a) strict liability
(b) vicarious liability
(c) both (a) and (b)
(d) none of the above.

62. A Magistrate issuing a summons to an accused or a witness can send it

(a) by speed post
(b) by courier services
(c) by a courier services as are approved by a court of session
(d) both (a) and (c).

63. Under the Limitation Act, 1963 the period of limitation for filing a suit by the payee
against the drawer of a bill of exchange which has been dishonoured by non- acceptance is
(a) 3 years from the date of the refusal to accept
(b) 2 years from the date of the refusal to accept
(c) 3 years from the date of the signing by the drawer
(d) 3 years from the date of presentment.

64. A post-dated cheque remaines only a bill of exchange till the date on its face and only
from that date it becomes a cheque being payable on demand. The statement is-
(a) false [Anil Kumar Sawhney v. Gidshan Rai, (1993) 4 SCC 424]
(b) true [Anil Kumar Sawhneu v. Gidshan Rai, (1993) 4 SCC 424]
(c) true [Jogy David v. K.K. Babu, (1998) 94 CompCas 711 (Ker)]
(d) true [Punna Devi v. John Inpex Pvt. Ltd., (1996) 2 Bank CLR 482],
65. As per the provisions of section 93, when a cheque is dishoroured by non-acceptance or
non-payment the holder
(a) may or may not give notice to the parties whom the holder seeks to make liable thereon
(b) must give notice to the parties whom the holder seeks to make liable
(c) must give notice to the parties whom the holder seeks to make liable, but after noting
(d) must not give any notice to anyone.

66. In which of the following case the Supreme Court held that "the persons who are
sought to be made vicariously liable for a criminal offence under section 141 should be, at
the time the offfence was committed, was in charge of, and was responsible to the company
for the conduct of the business of the company. Every person connected with the company
shall not fall within the ambit of the provision"?
(a) National Small Industries Corporation Ltd. v. Harmeet Singh Paintal, (2010) 3 SCC 330
(b) State of Bihar v. Kalyanpur Cement Ltd., (2010) 3 SCC 274
(b) both (a) and (b)
(d) none of the above.

67. The provisions regarding summary procedure relating to suits upon bills of exchange,
huttdies and promissory notes are laid down in
(a) Order 37 of CPC
(b) Order 38 of CPC
(c) Order 39 of CPC
(d) none of the above.

68. A protest must contain

(a) the name of the person for whom the instrument has been protested
(b) the name of the person against whom the instrument has been protested
(c) the instrument itself or its literal transcript
(d) all of the above.

69. A protest is made by

(a) the drawer
(b) the indorser
(c) a notary
(d) none of the above.

70. Where a cheque is crossed generally the banker on whom it is drawn

(a) shall not pay it otherwise than to a banker
(b) shall not pay it otherwise than to the holder
(c) shall not pay it to a banker
(d) none of the above.
 MCQ Chapter V

1. . …………… means right to be assured, wherever possible, access to a variety of goods and
services at competitive prices.
a. Right to be heard
b. Right to choose
c. Right to be informed
d. Right to safety

2. If the value of goods or services and the compensation, if any, claimed exceeds Rs one
crore, then where should a consumer file the complaint?
a. State Commission
b. National Commission
c. District Forum
d. Supreme Court

3. All of the following are the power and functions of commission EXCEPT
a. Power to award compensation
b. Power to review its own orders
c. Inquiring into certain agreements
d. Power to reject the orders

4. CCI stands for

a. Consumer Commission of India
b. Competition Commission of India
c. Competition Collaboration of India
d. Computer Competition of India

5. IPC stands for

a. International Personal Computer
b. Indian Personal Computer
c. International Penal Code
d. Indian Penal Code

6. The Consumer protection act 1986 enacted in

a. 15-Jun-05
b. 24-Oct-86
c. 24-Dec-86
d. 1 Jan 1986

7. Appropriate laboratory means a laboratory or organization

a. Recognized by Central Government
b. Recognized by state government
c. Both the above
d. None of the above
8. Complainant means

a. Consumer
b. Any voluntary consumer association registered under the companies act 1956
c. The central govt or any state govt
d. All the above

9. Complaint means allegation in writing made by a complainant that

a. An unfair trade practice or restrictive trade practice has been adapted by any traders or
service provider
b. The goods bought by him or agreed to be bought by him suffer from one or more defect
c. A traders or the service provider as the case may be has charged for the goods or for the
services mentioned in the complaint a price in excess of the price
d. All the above

10. The following is not a consumer

a. The insurance company

b. A licensee to run a phone
c. A lottery ticket holder
d. All the above

11. The central consumer protection council shall consist of the following members

a. The minister in charge of consumer affairs in the central govt, who shall be its chairman
b. Such member of other official or non official members representing such interest as may be
prescribed
c. The Chief justice of high court
d. Both A&B

12. The central council shall meet as and when necessary but at least ___ meeting of the
council shall be held every year

a. One
b. Two
c. Three
d. Four

13. Members of state consumer protection council should not exceed

a. Two
b. Five
c. Ten
d. Three
14. Chairman of the district consumer protection council is

a. District magistrate
b. Collector of the District
c. MP of the district
d. None of these

15. Which one of the following know as Consumer disputes redressal agency?

a. District forum
b. State commission
c. National commission
d. All the above

16. President of district forum is

a. Collector of the district

b. A person who are qualified as advocate
c. A person who are qualified to be a district judge
d. None of these

17. Mark the correct option relating to district forum

a. It should have two member , one of whom shall be a woman

b. Members age shall not be less than 35 years old
c. Possess a bachelors of degree from recognized university
d. Ten year knowledge and experience in dealing with problems relating to economics, law,
commerce, accountancy, industry& public affairs
e. All the above

18. The disqualification of the member is

a. Has been convicted and sentenced to imprisonment for an offence which , in the opinion of
the state govt involves moral turpitude
b. Is an undercharged insolvent
c. Is of unsound mind
d. All the above

19. Every appointment of district forum shall be made by the state govt on the
recommendation of a selection committee consisting of the following

a. President of the state commission shall be a chairman

b. Secretary, law dept of the state shall be a member
c. Secretary, incharge of dept dealing with consumer affair shall be a another member
d. All the above
20. Who will working as president in case absence of the president of state commission

a. Governor
b. Chief minister
c. A sitting judge of High court
d. Chief justice of highcourt

21. Mark the correct option

a. Every member of district forum shall hold office a term of 5 years or up to age 65 years
b. The member of district forum shall eligible for reappointment for another term
c. Members of district forum may resign his office in writing addressed to state government
d. All the above

22. Any person aggrieved by an order made by the District forum may prefer an appeal such
order to the State commission within

a. 60 days
b. 90 days
c. 1 month
d. Thirty days

23. Any person prefer an appeal to state commission shall be deposited amount in prescribed
manner

a. Fifty percent of that amount

b. Twenty five thousand rupees
c. Whichever is less of the above A&B
d. None of these

24. Information Technology (IT) Act 2000 came into force on ...... ?
A. 17 October 2000
B. 9 June 2000
C. 1 June 2000
D. 1 October 2000

25. What is/are component of IT Act 2000 ?

A. Legal Recognition to Digital Signatures
B. Regulation of Certification Authorities.
C. Digital Certificates
D. All the above

26. Information Technology (Amendment) Act, 2008 has come into force in ?
A. January 2008
B. October 2009
C. October 2008
D. January 2009
27. Controller of Certifying Authorities (CCA) work under ?
A. Prime Minister office
B. Reserve Bank of India
C. Ministry of Communication & IT
D. autonomous body

28. Which of the following is an example of Intellectual property ?

A. Patent
B. Trade Marks
C. Copyright
D. All of above
Ans: D

29. Intellectual Property Rights (IPR) protect the use of information and ideas that are of

a. Ethical value
b. Moral value
c. Social value
d. Commercial value

30. The term ‘Intellectual Property Rights’ covers

a. Copyrights
b. Know-how
c. Trade dress
d. All of the above

31. The following can not be exploited by assigning or by licensing the rights to others.

a. Patents
b. Designs
c. Trademark
d. All of the above

32. The following can be patented

a. Machine
b. Process
c. Composition of matter
d. All of the above

33. Trade mark

a. is represented graphically
b. is capable of distinguishing the goods or services of one person from those of others
c. may includes shapes of goods or combination of colours
d. All of the above

34. Symbol of Maharaja of Air India is

 a. Copyright
b. Patent
c. Trademark
d. All of the above

35. In India, the literary work is protected until

a. Lifetime of author
b. 25 years after the death of author
c. 40 years after the death of author
d. 60 years after the death of author

36. Design does not include

a. features of shape
b. composition of lines or colours
c. mode or principle of construction
d. None of the above

37. The agreement that is enforceable by law is known as

a. Valid agreement
b. Void agreement
c. Illegal agreement
d. Unenforceable agreement

38. Which of the following is (are) included in Geographical indications of Goods

a. Handicraft
b. Foodstuff
c. Manufactured
d. All of the above