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Contents
1 COMMERCIAL LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 COMMERCIAL LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. COMMERCIAL LAW
NARAYAN CHANGDER
1.1 COMMERCIAL LAW
1. Which two of the following descriptions re- 4. Person who gives offer
garding hire purchase are true? I. Interest A. Offeror
is charged by seller on cash priceII. Hire
Purchase Price = Cash Price + Total Inter- B. Offeree
estIII. Once the deposit is paid, the own- C. Acceptor
ership of goods is held by the buyerIV. In-
D. baths
stalment = (Amount To Be Financed + Total
Interest) / Total Number Of Instalments 5. What follow-up actions should be taken
A. I, II by the company owner after the establish-
ment of the company?
B. I, III
A. Forming the components of the
C. II, IV
company-directors, members, s/u, audi-
D. III, IV tors and other officers
2. Sale of Goods Act in the year B. Establish a registered office within 14
days after the company is registered
A. 1935
C. The company must have an official
B. 1931 seal/stamp
C. 1850 D. none of above
D. 1930
6. Choose all that apply. An agricultural lien
3. He developed the principle of comparative means an interest in farm products:
advantage
A. which secures payment or perfor-
A. Sancho de Moncada mance of an obligation for goods or
B. Adam Smith services furnished in connection with a
debtor’s farming operation; or rent on
C. David Ricardo real property leased by a debtor in connec-
D. St. Thomas Aquinas tion with its farming operations
1. C 2. D 3. C 4. A 5. A 5. B 5. C 6. A 6. B
1.1 COMMERCIAL LAW 3
B. which is created by statute in favor of 10. uniform rules-

a person that:in the ordinary course of its
A. body of legal principles that govern
business furnished goods or services to a

business transactions deriving from the
debtor in connection with a debtor’s farm-
established customs of merchants
ing operation; or leased real property to
a debtor in connection with the debtor’s B. the many interpretative and non-
farming operation binding statements, for example by treaty
monitoring bodies, that can contribute to
C. whose effectiveness does not depend
an understanding and greater compliance
on the person’s possession of the per-
of the law
sonal property
D. none of above C. norms drafted by authoritative bodies,
e.g. UNCITRAL, to create a standard,
7. Agent which may be adopted by various jurisdic-
tions, to govern a particular area of the
A. is the individual employed by the prin-
law, e.g. transport of goods
cipal to work with the third party.
B. is an agent that is given the authority D. co-operation between governments
to perform a variety of tasks. and organizations to make laws more uni-
form and coherent
C. is the individual who gives authority to
the agent. 11. What does the words “due stamping”
D. is the person or company whom the mean as per the Stamp Act?
agent deals with on behalf of the principal. A. Improper stamping
8. Taxpayer Identification Number (NPWP) is B. Stamped with appropriate stamp of
a document requisite value
A. Personal C. No such term
B. Individual D. Expired stamp
C. Law E. None of the above
D. Company
12. A corporation that has less that 30 share-
E. Must
holders is
9. Which of the following statements is NOT A. LLC
correct?
B. C Corporation
A. Guarantees must be evidenced in writ-
ing to be enforceable in English law C. Close
B. Guarantees and indemnities are es- D. S Corporation
sentially without legal difference in En-
glish law 13. What is the difference between a limited
company and an unlimited company?
C. Guarantees can be given by limited
companies A. The member’s liability is stated as un-
limited in the Memorandum
D. A guarantor cannot be exposed to ad-
ditional liability by the debtor without his B. The member’s liability is stated as un-
consent limited in the Memorandum
6. C 7. A 8. C 9. B 10. C 11. B 12. C 13. A 14. A

14. Economic policy that advocates non- 19. “the law of relations between individuals
intervention by the state in international and the state” is the definition for
trade, allowing flows of goods to be deter- A. Private law
mined by the advantages of each country
and the competitiveness of companies. B. Business Entities
A. Free trade C. Public Law

D. Commercial Law
B. Invisible hand
20. When someone is authorized to act on be-
NARAYAN CHANGDER
C. Theory of value
half of another it governed by law
D. Just price
A. Agency
15. “Agent” Means: B. Tort
A. Party that has express (oral or written) C. Statutory
or implied authority to act for another (the
principal) so as to bring the principal into D. Administrative
contractual relationships with other par- 21. According to Legal Positivism, what is the
ties. law’s validity based on?
B. the official power to make legal deci- A. Morality
sions and judgements
B. Social acceptance
C. the number of customers who buy or
C. Legislative enactment
may buy products and services offered by
companies within their own country D. Natural order
D. International conventions are treaties 22. Dissolution means
or agreements between countries
A. wound up the company
16. In a contract of indemnity there are B. Start up the company
A. 3 parties and 1 contract C. Agreement between the companies
B. 2 parties and 2 contracts D. Contract between the companies
C. 3 parties and 3 contracts 23. In a pledge, the general property or own-
D. 2 parties and 1 contract ership in goods
A. Transferred to the pawnee
17. St. Thomas Aquinas did not defend private
property B. Cannot be transferred to the pawnee
A. True C. Continues in the pawnor
B. False D. None of the above

24. When is the principle of “nemo dat quod
18. Who are the people protected by law and
non habet” applicable?
limited in their ability to do legal acts?
A. When the seller is a mercantile agent
A. minor
B. When goods are sold under a voidable
B. incompetent person
contract
C. Virtually incompetent person C. When a person sells goods he doesn’t
D. All correct. own
15. A 16. D 17. B 18. D 19. C 20. A 21. C 22. A 23. C 24. C 25. A
D. When the buyer has consent from the A. Astrolabe

owner
B. X rays

25. In the UCC 2-200s explains what? C. Printing press
A. Formation of a contract D. Vaccine
B. Content of the contract
30. Which of the following is a bailment plus
C. Performance of the contract agreement to sell?
D. Breach and remedies of the contract
A. Pledge
26. One of the ways to terminate an offer is B. Hire purchase
A. Fulfill the condition precedent to ac- C. Mortgage
ceptance
D. None of the above
B. Offeree died
C. Giving notice 31. What is the primary purpose of the Law in
society?
D. The time has not lapse
A. To promote inequality
27. According to the Sale of Goods Act 1957,
what is the key difference between a con- B. To restrict individual freedoms
dition and a warranty? C. To favor certain groups over others
A. Conditions are explicitly stated in the D. To maintain order, justice, and protect
contract, while warranties are implied. rights
B. Conditions are always written in capi-
tal letters, while warranties are not. 32. What does the term deposit according to
the Civil and Commercial Code mean?
C. Conditions give rise to a right to claim
damages, while warranties may warrant A. It is a contract where one party is
the parties to repudiate the ccontract called the depositor and the other side is
called the depositary.
D. Conditions are essential to the main
purpose of the contract, while warranties B. The essence of a deposit must be the
are not. delivery of the deposited property.
28. Which of the following is an example of a C. The custodian of property from the de-
unilateral contract? positor must keep the deposited property
in his or her custody.
A. A sales contract where both parties
promise to pay each other D. All correct.
B. A reward offer for the return of a lost 33. The law that regulates cooperatives is
item
A. UU No. 17/2013
C. A lease agreement for an apartment
B. UU No. 17/2014
D. A partnership agreement between two
businesses C. UU No. 17/2012
D. UU No. 17/2015
29. One of the main modern inventions that
led to a historical breakthrough E. UU No. 17/2019
26. C 27. D 28. B 29. C 30. B 31. D 32. D 33. C 34. B

34. Novation means B. False

A. Alteration Explanation:According to Article 183.1,
Commercial Law 2005:“Processors may
B. Substitution receive processing remunerations paid in
C. Cancellation cash or in processed products, or machin-
ery and equipment used for the process-
D. Remission
ing”
35. in a transaction involving both goods and 40. Mercantilism favours economic liberalism
NARAYAN CHANGDER
services, U.C.C. Article 2 applies if the
transaction is predominantly for the sale A. True
of goods, B. False
A. predominant purpose test 41. Processees can sell, destroy, donate or
B. predominant rule test give as gifts on the spot processed prod-
ucts, leased or lent machinery and equip-
C. the predominant test ments, raw materials, auxiliary materials,
D. none of above redundant supplies, faulty products and
discarded materials according to agree-
36. Instruments such as UNCITRAL’s Model ments and provisions of law.
Laws on International Commercial Arbitra-
A. True
tion provide a model which a state can
into law, either in whole or in part.(?) B. False
Explanation:Article 181.3 LoC 2005
A. adopt
B. adapt 42. Under the Hire-Purchase ACt 1967, which
one of the following is not one of the
C. amend hirer’s rights?
D. none of above A. To appropriate payment
37. Which of the following listed would be an B. To determine the hiring
example of a partnership? C. To be supplied with the relevant docu-
A. the fire service ments and information
B. lawyer’s office D. To assign his right, title and interest

without the owner’s consent
C. local councils
43. Unilateral means
D. supermarkets
A. One sided
38. Substituted agent is B. Two sided
A. Agent’s agent C. Both 1 & 2
B. Principal’s agent D. None
C. None of the above 44. The owners of a corporation are known as:
D. Both (A) and (B) A. Shareholders
39. Processors recipients only receive process- B. Stockholders
ing remunerations in cash C. Stakeholders
A. True D. Board of Directors
35. A 36. A 37. B 38. B 39. B 40. B 41. A 42. D 43. A 44. A
45. What is the meaning of “fructus natu- and negotiate international trade agree-
rales”? ments?

A. Natural and organic fruits A. Cryptocurrency regulation
B. Fruits harvested to be sold to con- B. Trade policy analysis
sumers C. Tax policy regulation
C. fruits grown on the land naturally D. none of above
D. Natural fruits sold in the market
50. Mr. A was born in 1997, but the date or
46. Course of dealing- month is not known. In counting Mr. A’s
age, what date of birth is considered?
A. beyond national boundaries, at a level
above national governments A. Born on January 31, 1997
B. body of legal principles that govern B. Born on March 31, 1997

business transactions deriving from the C. Born on December 31, 1997
established customs of merchants D. Born on January 1, 1997
C. the many interpretative and non-
binding statements, for example by treaty 51. Section of Indian Contract Act defines
monitoring bodies, that can contribute to a contract of Indemnity.
an understanding and greater compliance A. Section 127
of the law B. Section 124
D. recognizable pattern of previous con- C. Section 125
duct between the parties of a more re-
D. Section 139
cent transaction from which a dispute has
arisen 52. In order for a contract to be enforceable it
must have
47. Compensation payments not related to
personal injury, life insurance payments A. Acceptance
received before bankruptcy, inheritances, B. Consideration
shares, dividends, lottery prizes, gifts,
C. Offers
tax refunds and cryptocurrency may also
be claimed or taken by the trustee. D. Legal Purpose
A. yes, true 53. to give rise to
B. no, false A. formal to give something such as a ser-
vice, a personal opinion or expression, or
48. Section 10 of Indian Contract 1872 deals a performance of a song or poem, etc. to
with people
A. Void contract B. to make people obey a law, or to make
B. Voidable contract a particular situation happen or be ac-
cepted
C. Valid contract
C. to act as judge in a competition or
D. Illegal contract
argument, or to make a formal decision
49. What does the OECD provide to member about something
countries to help shape their trade policies D. to solve or end a problem or difficulty
45. C 46. D 47. A 48. C 49. B 50. D 51. B 52. D 53. E

E. to make something happen or begin, A. Venetian laws

especially something unpleasant or unex- B. Customs of the land
pected.
C. Customs of the sea
54. A minor has the capacity to contract when D. Perfectum usus of Pisa
A. Always 58. An agreement made without consideration

is
B. Only valid on contracts valuing over $1
NARAYAN CHANGDER
Million A. void
C. For necessities like food, clothing, and B. voidable

lodging 59. Surety is a person who
D. It depends on the state you live in A. Who gives the guarantee
55. a right to payment or performance B. To whom the guarantee is given
manifested in a written or electronic C. In respect of whose default the guar-
record. antee is given
A. instrument D. None of the above
B. chattel paper
60. Jacob negotiates with Herman over the
C. letter-of-credit-right purchase of his car. How is this contract
D. document accepted?
Explanation:9-102(a)(51). In practice, the A. novation
letter of credit is recognizable by its letter
format, most often on a bank’s letterhead. B. refusal
The letter will generally inform the poten- C. counteroffer
tial beneficiary that the debtor has a par- D. mirror image rule
ticular amount of money available for its
use, whether or not the beneficiary has 61. Where it is headquartered?
yet demanded payment or performance A. Paris
from the debtor.i.e. preapproval letter for
a mortgage when looking for a house B. Ottawa
C. Rome
56. ONE of the following is NOT a valid reason
for using debt over equity as a source of D. London
finance: 62. State the 2 types of shari’at that can be in-
A. Cost of capital corporated under the Companies Act 1965.
B. Reputational reasons/Big-player syn- A. A company limited by shares
drome B. Unlimited companies
C. Contractual control
63. Wager means
D. Gearing Ratio
A. Competition
57. The oldest compilations of medieval trade B. Betting
usages are maritime law texts and are as-
sociated with the statutes of cities, such C. Puzzle
as: D. None
54. C 55. C 56. B 57. C 58. A 59. A 60. C 61. A 62. A 62. B 63. B 64. B
64. Which of the following is NOT included in C. Italian city-states

a Deed of Partnership? D. Hansa

A. How the profit is to be split between
the partners 69. In respect of loan against a life insurance
policy, which of the following value is
B. The name of the partnership’s accoun-
taken as the basis for fixation of the loan
tant
limit
C. The responsibilities of each partner
A. Face value of policy
D. The date the partnership started up
B. Net asset value of policy
65. What is consensus ad idem? C. Maturity value of policy
A. identity of subject
D. Surrender value of policy
B. price
E. Any of the above whichever is lower
C. identity of minds
D. agreement 70. To start a partnership business, what
should be the minimum number of part-
66. Which of the following is a contract? ners?
A. Betty offers to give a book to Lou. Lou A. 2
accepts. B. 10
B. Betty offers Lou the book in exchange
C. 4
for Lou’s promise to pay twenty-five dol-
lars. Lou accepts. D. 20
C. Betty offers to give Lou the book if Lou 71. Which of the following claimants enjoys
promises to pick it up at Betty’s house. the HIGHEST PRIORITY in corporate insol-
Lou agrees. vency?
D. None of the above A. Preferential Creditors
67. In a partnership agreement, how are prof- B. Prescribed part creditors
its and losses generally shared in the ab-
C. General unsecured creditors
sence of specific provisions?
D. Secured creditors holding a floating
A. Equally among all partners
charge
B. Proportionate to capital contributions
C. According to each partner’s age 72. The Ministry of Republic of Indonesia in-
stitution that has the authority to issue a
D. Randomly determined each year deed of establishment of a Business Entity
68. They are a political phenomenon character- is
istic of the north of the Italian peninsula A. Minister of Education and Culture
(10th-15th centuries):cities, with a small
B. Minister of Law and Human Rights
territory but great political and financial
power, were the main political entities dur- C. Minister of Defense
ing the Middle Ages D. Coordinating Minister for Political, Le-
A. Guilds gal and Security Affairs
B. Faire of Champagne E. Minister of Social Affairs
65. C 66. B 67. A 68. C 69. D 70. A 71. A 72. B 73. C

73. arises where a person by his words or B. a mutual understanding between two
conducts induces third persons to believe parties
that a certain person is his agent.
C. a verbal understanding between two
A. Agency by Holding-out parties
B. Agency by Necessity D. a written agreement between two or
C. Agency by Estoppel more parties
D. None of these
NARAYAN CHANGDER
78. Who are included as Business Actors?
74. Which of the followings are not considered
A. Entrepreneurs, Employees, and En-
as ‘Goods’ under the Sale of Goods Act
trepreneurs’ Assistants
1957?
A. B. Directors, Commissioners and Employ-
ees
B.
C. Consumers, Suppliers, Producers
C.
D. Competitors, Markets and En-
D.
trepreneurs
75. Juristic persons under civil and commercial E. Employees, Leaders and Government
law include:
A. limited partnership 79. is every promise, and every set of
B. Office of the Prime Minister promises, forming consideration for each
other
C. Provincial Administrative Organization
A. Offer
D. Sukhothai Thammathirat Open Univer-
sity B. Agreement
76. substitution C. Transaction

A. referring to something previously men- D. Acceptance
tioned, usually with a pronoun (e.g. it,
they) a determiner (e.g., this, that) or 80. In postal rule, the contract is created when
by using formulaic expressions (e.g. the the letter is
eforementioned, the former)
A. Delivered
B. to know someone or something be-
cause you have seen, heard or experi- B. Received
enced them before C. Read
C. replacing a word mentioned previously D. Posted
with another, usually more general one
(e.g. such things) 81. What does the term legal person mean?
D. to make people obey a law, or to make
A. Mr. A and Mr. B
a particular situation happen or be ac-
cepted B. Individuals with companies
77. Contract is a C. Natural person and juristic person

A. a legally binding agreement D. Mr. A and Limited Partnership
74. C 75. A 76. C 77. A 78. A 79. B 80. D 81. C 82. A

82. Which is not a reason that the court would 86. A producer of Surajmukhi claimed in an ad-
use to pierce the corporate veil of a busi- vertisement in a national newspaper that
ness: his product has large amount of vitamins,

A. Not following corporate formalities Minerals and Proteins. However, tests in-
(i.E. holding annual shareholder and direc- dicated that it was a false claim. Whose
tor meetings) example is this?
B. Not timely filing tax returns A. Exploitation of consumer
C. Owners commingling corporate funds B. Welfare of consumer

with personal funds C. Information for consumer
D. Entity inadequately capitalized D. None of these
Explanation:The remaining answers are
typically reasons why a court may deter- 87. The age of discoveries strengthen the
mine that the corporate veil has been Mediterranean ports
pierced. A. True
83. When a court hears a case with foreign el- B. False
ements, it applies its own law to the
88. Agreement is equal to
proceedings before it.(?)
A. Offer+Acceptance
A. substantive
B. Contract+Agreement
B. hard
C. Agreement+Consideration
C. procedural
D. All of the above
D. none of above
84. Which one of the following is a party to a 89. Unwritten law mainly comprised of
contract of guarantee? A. Federal Constitution and State Consti-
A. Principal Debtor tution
B. Creditor B. English Law, Federal Constitution and

State Constitution
C. Surety
C. State Constitution, Federal Constitu-
D. Pawnor tion and District Constitution
85. resolve D. English Law, Judicial Decisions or
A. to give something such as a service, a Precedent and Customs
personal opinion or expression, or a per- 90. Conciliation-
formance of a song or poem, etc. to peo-
ple A. similar to mediation, in which an impar-
tial third party helps the parties to a dis-
B. to make people obey a law, or to make pute to resolve their problem, but which
a particular situation happen or be ac- unlike arbitration does not lead to a deci-
cepted sion to which the parties are bound
C. to act as judge in a competition or B. a sovereign state which is a member of
argument, or to make a formal decision a confederation of other such states, such
about something as the European Union or the United Na-
D. to solve or end a problem or difficulty tions
83. C 84. D 85. D 86. A 87. B 88. A 89. D 90. A

C. a court of law or judicial tribunal B. 1961

where disputes are heard and decided
C. 1971
D. co-operation between governments
and organizations to make laws more uni- D. 1981
form and coherent
94. harmonisation
91. When determining product liability under a A. norms drafted by authoritative bodies,
theory of strict liability: e.g. UNCITRAL, to create a standard,
NARAYAN CHANGDER
which may be adopted by various jurisdic-
B. body of legal principles that govern
A. The injured party is not required to binding statements, for example by treaty
prove that the defendant breached a duty monitoring bodies, that can contribute to
of care an understanding and greater compliance
of the law
B. The injured party can assert a strict
liability claim for injuries which resulted D. co-operation between governments
from both products and services and organizations to make laws more uni-
form and coherent
C. The injured party may only assert a
claim against the manufacturer in the
95. For federal tax purposes, the default tax
chain of discretion
classification of a limited liability company
D. Privity of contract is an element that that has 3 members is:
must exist between the injured party and
the manufacturer in order for the injured
party to prevail
Explanation:Duty and breach of duty are
not elements for recovery under a strict
liability theory of products liability
92. Under what circumstance can coins and

notes be considered as goods? A. Partnership
A. Always B. Corporation
B. Only when they are used for transac- C. Association
tions
D. Disregarded entity
C. Only when they are traded for collec- Explanation:The default tax classification
tion purposes for an LLC with 2 or more members is a
D. Never. partnership. An LLC can make an election
to be taxed as something other than its de-
93. When was OECD founded? fault classification by filing the form 8832
A. 1951 with the IRS
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96. What does the term “goods” as defined in 101. On the threshold of the 16th century, the
the Sale of Goods Act 1957 exclude? first colonial empires emerged:
A. Portugal and England

A. Selling and buying of automobile
B. Money exchange B. Germany and the Netherlands
C. England and Germany
C. Fruit picking
D. Portugal and Spain
D. Purchasing airconditioner
102. First law came in to India
97. The court may direct the party in breach A. 1773
of a contract to actually carry out the
B. 1784
promise, exactly according to the terms of
the contract. This is called C. 1780
A. Specific Performance D. 1772
B. Exemplary Damages 103. A written order used primarily in interna-

tional trade that binds one party to pay
98. Which of the following is not a duty of an a fixed sum of money to another party
agent to the principal? on demand or at a predetermined date is
called a
A. Acting in good faith
A. bill of lading
B. Rendering accurate account
B. bill of exchange
C. Disclosing all profit made
C. bill of promise
D. Making secret profit D. bill of payment
99. A proposal upon acceptance becomes? 104. Waiver means
A. Contract A. Relinquishment
B. Agreement B. Cancellation
C. Alteration
C. Offer
D. None
D. Promise
105. A bid at an auction sale is
100. Following the reasoning in Salomon v Sa- A. An implied offer to buy
lomon & Co [1897] AC 22, a limited liabil-
B. An implied acceptance of the offer to
ity company:
buy
A. Will be deemed to be validly incorpo- C. An express offer to buy
rated once there has been compliance
with the statutory requirement for form- D. An express acceptance of the offer to
ing a valid company buy
B. Will not be deemed to be an agent of 106. A business run by one person is a(n)
its shareholders A. Corporation
C. Will not be deemed to be a trustee or B. LLC
nominee of its directors’ estate C. Sole proprietorship
D. All of the above D. Partnership

107. is mandatory for the Insurer and in- C. to make uniform the law among the
termediaries. various jurisdictions
A. Compliance D. to ensure merchants are operating in
good faith practices
B. Non-Compliance
C. Both of the above 112. Venetian trade policy was based on the
protection and promotion of trade by the
state
NARAYAN CHANGDER
108. Rules created by the repeated, uniform A. True
and constant observance of the traders of
B. False
a given place in their business and which
are binding on them 113. if the agent fails to obey the principle’s
A. Customs instruction
B. Proof of usage A. the agent will not be liable for any loss
incurred
C. Type of uses
B. the agent will be liable for any loss in-
D. Trade usages curred
109. The power of attorney is an example of C. nothing can be do
agency by D. none of above
A. Express agreement
114. Which of the following statements is true
B. implied agreement regarding an invitation to treat?
C. Ratification A. It is a definite proposal to enter into a
D. Special agreement contract.
B. It is a preliminary communication that
110. The Italian city-states were NOT tipi- invites others to make an offer.
cally:
C. It is the same as an offer in contract
A. Rural urban migration law.
B. Construction of cathedrals D. It is legally binding once communi-
C. Large cities cated.
D. Weak demographic increase 115. The bailment of goods as security for pay-
E. Enormous development of trade ment of debt or performance of a promise
is called?
111. Choose all that apply. The UCC must be A. Special bailment
liberally construed and applied to promote
its underlying purposes and policies which B. Pledge
are: C. Pledge by Trust agent
A. to simplify, clarify, and modernize the D. Both (a) and (b)
law governing commercial transactions E. . None of these.
B. to permit the continued expansion of
commercial practices through custom, us- 116. A partnership has between 2 and 20
age, and agreement of the parties A. employees

B. shareholders A. Trial of residence

C. owners B. Gracia

D. customers C. Encomienda
117. Ram and Ravi Maintain a SB account D. Distribution
payable to former or survivor and a
121. The economy functions better without
cheque is presented for payment by Ram
state intervention. It uses the metaphor
after his declaration as insolvent?
of the
A. Bank should pay the cheque
A. Free market
B. Bank should not pay the cheque
B. Invisible hand
C. Pay after obtaining confirmation from
C. Theory of value
Ravi
D. Just price
E. A & C 122. There are rules on alternative judicial
venues in a number of international
118. What does the “rule of privity of con- and agreements to which Denmark is a
tract” pertain to in a contract of sale? party, namely the Brussels Convention,
A. The enforceability of oral contracts the Lugano Convention and the Brussels I
B. The parties who can enforce the terms Regulation.
of a contract A. conventions
C. The requirement for a written contract B. negotiations
for certain agreements C. meetings
D. The terms and conditions within a con-
D. none of above
tract
123. Theory of value:If the price exceeds the
119. When using assessment services, do
value or if the value is greater than the
state agencies have the obligation to pay
price, there is no justice and therefore it is
assessment remunerations to traders pro-
not permissible to sell something at a price
viding assessment services?
higher than its value or to buy it at a lower
A. Yes price.
B. No A. True
Explanation:State agencies or organiza-
B. False
tions have the obligation to “pay assess-
ment remunerations to traders providing 124. What are the requisites of the contract of
assessment services according to agree- sale:
ments between the two parties on the ba-
sis of market prices” (Art. 268.2) A. An Offer and delivery of goods
B. An Offer to buy or sell goods, for a
120. It was a judicial procedure in Castilian price and their acceptance
and Indian law, which consisted in the fact
that at the end of the public official’s term C. An Offer, delivery, possession, and ac-
of office, his actions were subject to re- ceptance
view and all the charges against him were D. An Offer, price, delivery, and accep-
heard. tance

125. An agreement between two parties that 129. The exclusive right granted to an inven-
creates an obligation is a(n) tor to manufacture, use, or sell an inven-
A. Contract tion is a
B. Tort A. Trademark
B. Trade secret
C. Offer
C. Copyright
D. Purpose
D. Patent
NARAYAN CHANGDER
126. Render
130. Who can be a principal as accordance to
A. to solve or end a problem or difficulty
Section 136 of Contracts Act 1950?
B. to act as judge in a competition or argu- A. minor and soundmind
ment, or to make a formal decision about
something B. adult and soundmind
C. to make people obey a law, or to make C. minor and unsoundmind
a particular situation happen or be ac- D. adult and unsoundming
cepted
131. includes a guarantor or other secondary
D. to give something such as a service, a obligor
personal opinion or expression, or a per-
formance of a song or poem, etc. to peo- A. Bond
ple B. Surety
C. Fund
127. Before the owner can repossess the hire
purchase goods from the hirer, the owner D. Agreement
must
132. The age of discoveries were led by:
A. serve a 4th schedule notice after the
A. Francisco Pizarro
default of the last installments
B. Basque da Gama
B. serve a 4th schedule notice after 2
successive defaults of the monthly install- C. Hernan Cortes
ment D. Crhistopher Columbus
C. serve a 2nd schedule notice after 2 133. Which of the following is necessary to
successive defaults of the monthly install- make an valid offer?
ments
A. Intention to create legal relationship
D. serve a 4th schedule notice after 3
B. Conditional terms
successive defaults of the monthly install-
ments C. Communication to offeree
D. Both intention to create legal relation-
128. St. Thomas Aquinas justified trade be-
ship and Communication to offeree
cause:
A. He did not justify trade 134. Bankruptcy normally lasts for:
B. Trade allowed the expansion of Chris- A. 3 years and 1 day
tianism B. 5 years and 1 day
C. The State is not self-sufficient C. 7 years and 1 day
D. Trade brought about wealth D. 10 years and 1 day

135. Abbreviation for CV in business is C. Mercantilism

A. Curriculum vitae D. English Classical School (Economic lib-

B. Limited Partnership eralism)
C. Virma Sponsor 141. Characteristics of Lex Mercatoria:

D. Curriculum Company A. Formed by the customs and practices
E. Comanditaire Life of traders
B. It evolves from the traders’ own busi-
136. arises where the law treats one per- ness practice
son as an agent of another
C. Necessary for a fast and efficient
A. Agency by Express Agreement competition, administered by specialised
B. Agency by Implied Authority courts
C. Agency by Operation of Law D. Not all participants were treated
equally
D. None of these
142. Events that create/remove rights or obli-
137. When does a contract of sale by descrip-
gations are called ?
tion imply that the goods must correspond
with the description? A. Legal Events
A. Only when the buyer has not seen the B. Legal Subjects
goods C. Legal Objects
B. Only when the buyer has seen the D. Legal Evidence
goods
E. Legal Witness
C. In all cases, regardless of whether the
buyer has seen the goods or not 143. A lends RM500 to B. He later tells B that
he need not repay the amount, the contract
D. Never, it depends on the negotiation is discharged by-
between the parties
A. breach
138. A person who owes another person B. waiver
money is known as a secured creditor.
C. novation
A. True
D. love
B. False
144. Mario and his brother Luigi started a
139. In a contract of guarantee, the liability of plumbing company together. They split the
surety is profits and the expenses.
A. Primary
B. Collateral and Secondary
C. Does not rise
140. Modern economic thought

A. Scholasticism
B. Arbitrism A. Sole Proprietorship

B. Partnership 150. Ivan worked as driver for Lucas. Ivan

C. Corporation recklessly droves the car and caused an ac-
cident. During the accident he hit Robert’s
D. none of above car. Robert claimed damages for his car.
145. Which of the following is NOT a way to Can Robert do so?
discharge a contract? A. Yes, Robert may claimed damages
A. Hall burnt down from Lucas
B. One party breaches the duty B. Yes, Robert may claimed damages
NARAYAN CHANGDER
C. Parties have performed the contract from Ivan
D. Parties did not bankrupt C. Not sure

D. none of above
146. What is required for a buyer to obtain a
good title to goods sold under a voidable 151. A prospectus is valid within days af-
contract? ter the copy of prospectus is delivered to
A. The buyer must pay the full price for Registrar of Companies (RoC).
the goods. A. 30
B. The seller must notify the buyer of the B. 45
defect of title.
C. 60
C. The buyer must purchase the goods in
D. 90
good faith.
E. None of the above
D. The buyer must obtain the consent of
the seller. 152. jurisdiction-
147. the parties in agency contract is A. the power, right or authority to inter-
A. offeror and offeree pret and apply the law
B. seller and buyer B. non-profit and/or voluntary organiza-
tion that is not part of government
C. agent and principle
D. none of above
binding statements, for example by treaty
148. Coercion refers under monitoring bodies, that can contribute to
A. Section 14 an understanding and greater compliance
of the law
B. Section 15
D. a court of law or judicial tribunal where
C. Section 16 disputes are heard and decided
D. Section 17
153. What is contract discharge by agree-
149. B is assured by A:if C failed to pay the ment?
loan to ‘B’, ‘A’ would pay the debt?
A. elements of offer and acceptance.
A. B is the guarantor;
B. voidable contract at the options of par-
B. B is Beneficiary ties of contract.
C. C is Debtor C. a thing may be destroyed in the same
D. .‘A’ is the promisor manner in which it is constituted.
E. C & D are correct D. halfway contract

154. The object of the deposit contract is prop- 158. is a legal document authorizing one
erty. What must it look like? person (called an agent) to act on behalf
of another (the principal).

A. Must be a form of property
A. Special power of attorney
B. It must be an asset that has shape and
has a price. B. Particular power of attorney
C. It must be property that can be seized. C. General power of attorney
D. All correct. D. all the above
155. Which statement is the CORRECT one? 159. Which is considered death as a result of
the law?
A. A partner in a limited liability partner-
ship is an agent of the firm but is not an A. It is a contagious disease.
agent of the other partners. B. was extrajudicially murdered
B. Limited partnerships come with the C. Insane death
twin benefit of separate legal personality
D. The court ordered him to be a missing
and limited liability.
person.
C. Sole proprietorships enjoy perpetual
succession. 160. How many people own a sole proprietor-
ship business?
D. A company cannot be a member of a
partnership. A. 3
B. 2
156. What is the OECD?
C. 1
A. is an international organization that
promotes economic cooperation and reg- D. 20
ulates global commerce to foster growth 161. If parties in a contract are not , the
and improve living standards. contract can be canceled
B. is a unique global partnership fight- A. Accepting
ing poverty worldwide through sustain-
able solutions. B. Competent
C. is the international organization C. Offering

whose primary purpose is to open trade D. Offering compensation
for the benefit of all.
162. Bankruptcy is the legal process under-
D. none of above
taken when
157. Section of Indian Contract Act defines A. the bankrupt cannot pay their out-
a contract of Indemnity. standing debts
A. Section 127 B. whereby the bankrupt gives up control
of their finances and possession of assets
B. Section 124
C. cannot pay outstanding debts and give
C. Section 125
up control of finances and possession of
D. Section 130 assets
E. Section 140 D. none of above

163. An offer which is expressed by conduct is A. businessmen-satisfy all the conditions-

called are granted business registration certifi-
A. Express offer cates
B. Implied Offer B. traders-satisfy all the conditions-are

granted business registration certificates
164. supranational-
C. traders-satisfy some conditions-are
A. beyond national boundaries, at a level granted business registration certificates
above national governments
NARAYAN CHANGDER
D. businessmen-satisfy some conditions-
B. body of legal principles that govern
are granted business registration certifi-
cates
C. non-profit and/or voluntary organiza- 168. Public law refers to law which
A. governs the relationship between
D. norms drafted by authoritative bodies, state and another state
which may be adopted by various jurisdic- B. governs the relationship between indi-
tions, to govern a particular area of the viduals and the state
law, e.g. transport of goods C. deals with matters that affect rights
and duties of individuals among them-
165. The power given to agent
selves
A. reasonable and unreasonable
D. governs the relationship between var-
B. expressed and implied ious offences committed by individuals
C. legal and illegal
D. all of these 169. “Tansnational Commercial Law” refers
A. to a set of international conventions,
166. In contract law, an “offer” is best de-
model laws and uniform trade terms that
fined as:
govern international commercial transac-
A. An expression of willingness to negoti- tions.
ate.
B. To treaties or agreements between
B. A promise to pay a certain amount of countries.
money
C. To a formally concluded and ratified
C. A proposal indicating a person’s will-
agreement between states.
ingness to enter into a contract on specific
terms D. To the law of relations between individ-
D. An implied agreement between par- uals and the state
ties.
170. Liability of surety is
167. According to Article 256:“Only that
A. Independent on default
satisfy provided for by law and for
provision of commercial assessment ser- B. Conditional on default
vices shall be allowed to provide assess-
C. Either conditional or independent
ment services and issue assessment certifi-
cates. D. None of the above

171. An instrument in writing containing an un- 175. The case of Venkata Chinnaya v
conditional order signed by the maker, di- Verikataramaya is about
recting the certain person to pay certain

A. Acceptance
some of money only to or order of a cer-
tain person is called as B. Offer
A. Cheque C. Capacity
B. Promissory note D. Consideration
C. Bill of exchange 176. Can gas, water, or electricity be sold as
D. none of above goods?
A. Yes
172. What type of implied warranty ensures
that the goods sold are in good condition B. No
and can be used? C. It depends
A. Implied warranty as to time Explanation:All 3 are considered movable
goods found in the UCC and case law
B. Implied term as to merchantable qual-
ity D. none of above
C. Implied warranty as to quiet posses- 177. In the event of a partnership’s dissolu-

sion tion, how are the remaining assets typi-
D. Implied warranty of fitness for a par- cally distributed among the partners?
ticular purpose A. Equally among all partners
B. In proportion to their original capital
173. forum
contributions
A. a court of law or judicial tribunal where
C. Based on their age
disputes are heard and decided
D. Randomly assigned by the court
B. non-profit and/or voluntary organiza-
tion that is not part of government 178. Down payment is the payment made
C. the power, right or authority to inter- A. At the time of paying the first instal-
pret and apply the law ment
D. norms drafted by authoritative bodies, B. At the time of signing the agreement
which may be adopted by various jurisdic- C. At the time of paying the second instal-
tions, to govern a particular area of the ment
law, e.g. transport of goods D. At the time of paying the last instal-
ment
174. Indian contract Act 1872 came into force
from 179. Valid contract means
A. 1st August A. illegal Contract
B. 1st September B. Enforceable by law
C. 1st October C. Undue influence
D. 1st November D. Void contract

180. Insolvency rules are governed by? 186. True or false:The postal rule applies to
A. State Insolvency Act 1920 modern, instantaneous forms of communi-
cation.
B. Presidency Towns Insolvency Act
C. Insolvency Act 1879
D. A & B
E. all of the above
NARAYAN CHANGDER
181. One of the many options available for
insolvent individuals to resolve their per-
sonal insolvency is a debt agreement.
A. true A. True
B. false B. False
182. Means how much he earned
187. Which statement is FALSE?
A. As much as deserve
B. As much as earned A. A general partner manages the busi-
ness of a private fund limited partnership.
C. Both 1 & 2
D. None B. A limited partner may take action on
the general nature of the private fund lim-
183. The act of placing one’s signature on an ited partnership’s business.
instrument, usually on the back, to trans-
C. A limited partner may not take action
fer it to another:
on whether a person should become or
A. drawee cease to be a partner in a private fund lim-
B. schedule ited partnership.
C. negotiation D. A general partner has unlimited liabil-
D. endorsement ity in a private fund limited partnership
184. An agency which has to be understood 188. what is void ab initio

from the conduct and behavior of the par-
ties is called A. void
A. Expressed agency B. voidable
B. Implied agency C. void from very beginning
C. none of the above
D. can be made valid
D. both a and b
185. What is the legal term for an agree- 189. Home Industry Company is
ment in which both parties make mutual A. A business entity
promises to each other?
B. An individual business
A. Unilateral contract
C. A state-owned enterprise
B. Bilateral contract
C. Executed contract D. A legal entity business
D. Express contract E. A government-owned business

190. Which of the following is not considered B. equal level in dealings

a legal act?
C. directly arranged sales

A. Borrowing
D. good reputation
B. mortgage
C. making a will 196. The sale of goods Act deals only with
D. selling drugs goods which are in nature.
A. Immovable
191. Below are NOT the basic principles of le-
gal systems in the world, except B. Specific
A. America Kontinental C. Movable
B. Australian Saxon
D. All the options
C. Continental Europe
D. Asia Saxon 197. What is the meaning of “fixtures”?
E. Antarctic Saxon A. things attached to a car
192. The various modes to create the contract B. things that forms part of the land
of agency C. things that needs to be fixed
A. By Express Agreement
D. things that can be moved from one
B. By Implied Agreement place to another
C. By operation of law
198. Offer, acceptance and consideration are
D. By ratifications
all parts of a
E. All the above
A. Covers
193. Who will be responsible for accuracy of
B. Loans
results and conclusions in assessment cer-
tificates? C. Applications
A. The party requesting the assessment D. Contract
B. Traders providing assessment ser-
vices 199. The main economic activity for the Span-
ish Empire was silver mining:
C. None of them
D. Both of them A. True
194. Up until the mid-14th century, Europe B. False

had experienced steadily increasing urban-
isation 200. In case of ratification the principal must
ratify
A. True
A. Part transaction based on necessity
B. False
B. the agreement of agency
195. Flat rate is
C. whole transaction
A. a commission payed for agent’s ser-
vices D. the third party about agency

201. The late Middle Ages saw the develop- 206. The rule “No consideration, no con-
ment of large urban centres run by mer- tract”is not applicable to
chants in A. Agency
A. North sea coast, Flemish cities, North- B. charitable subscription
ern Italy and France
B. Eastern Europe, Flemish cities, South- 207. Acceptance of an offer, can be
ern Italy and Germany A. Conditional
NARAYAN CHANGDER
C. North sea coast, Flemish cities, South- B. No conditions to be added to original
ern Italy and France offer
D. Eastern Europe, Flemish cities, North- C. Conditions can be modified only of orig-
ern Italy and Germany inal offer
202. The ownership of goods under hire pur- D. All of these

chase agreement belongs to the
208. The European Community and Denmark
A. seller entered into a parallel under which the
B. purchaser rules set out in the Brussels I Regulation
were applicable between Denmark and the
C. seller and purchaser other Member States.
D. purchaser and financial institution A. agreement
203. Every Agreement is B. detail
A. law based C. confidential
B. Enforceable by law D. none of above
C. Agreement bases 209. A person who takes a risk to produce
D. Contract based goods and services in search of a profit
is an entrepreneur. In which kind of busi-
204. Which of the following is not an essential ness structure may entrepreneurs estab-
of a valid contact? lish a business?
A. Agreement
B. Adequate consideration
C. Lawful object
D. Not barred by law
205. The amount of capital required to run a

business is a requirement of
A. Business Type Considerations
A. Partnerships and Corporations
B. Consideration of Business Entity Form
B. Sole Proprietorships, Partnerships,
C. All wrong and Corporations
D. Business Ownership Considerations C. Only Corporations
E. All True D. Sole Proprietorships and Corporations

210. Where there is a contract for the sale of 215. The bankrupt’s house and any property
specific or ascertained goods the property they own may be sold to repay creditors.
in them is transferred to the buyer at the

A. true
time when the:
B. false
A. Parties intend the property in goods to
pass 216. In contract law, an invitation to treat is:
B. The contract is entered into A. A valid contract
C. Price is paid B. An offer that can be accepted immedi-
D. Delivery of goods has been made ately
C. A preliminary negotiation or invitation
211. One of the following is true about the for others to make an offer
Pari Passu rule:
D. A legally binding commitment
A. Effects a pro rata scheme of distribu-
tion among company creditors 217. After talking to the salesman on the
phone, Molley agree to buy a set of glass-
B. Is not mandatory and hence, parties
ware. What type of contract is this?
can avoid it.
A. Oral
C. Secured creditors are not affected by
the operation of the pari passu principle. B. Unenforceable
D. None of the above. C. Valid
D. Written
212. Which of the following elements is NOT
required for a valid contract to exist? 218. A WRONG statement regarding the Is-
A. Offer and acceptance lamic Legal System is
B. Legal purpose A. Adopted by Arab Society, Developing in
Asia, Africa, Europe and America individu-
C. Capacity of the parties
ally/groups
D. Written agreement
B. Based on Al Quran, Sunnah of the
213. The Foundation is Prophet, Qiyyas, and Ijma
A. Legal entity business entity C. Triggered by Wali 9
B. Non-Legal Business Entities D. The legal basis regulates development,
social, political and economic
C. Individual Business Entities
E. All wrong
D. Privately Owned Enterprises
E. Government Owned Enterprises 219. Mary opened a dance studio. She re-
ceives all the profits from her students’
214. ‘He is a person for whom such act is done, lessons.
or who is so represented in dealing with a
third party.’ ‘He’ refers to
A. Principal
B. Agent
C. Boss
D. 3rd party

A. Sole Proprietorship 223. What is the primary legal instrument that

B. Partnership holds the status of the paramount legal
document in Sri Lanka?
C. Corporation
D. none of above A. Vinay Pitaka was
220. Give the steps before setting up a com- B. Supreme Court Rules
pany.
C. The Mahavamsa
NARAYAN CHANGDER
A. Name search-bookings are made at
the office of the Registrar of Companies D. The Constitution of Sri Lanka
B. Prepare company establishment docu-
ments
224. What are the requirements to incorpo-
C. Submit complete documents and a rate a company for a company limited by
copy of the memorandum and articles of shares?
association of the company with the reg-
istration fee (10% of the authorized capi- A. At least two founders to the company
tal) to the Registrar of Companies within shares
3 months after the name is approved
D. The company gets a certificate of in- B. At least two directors
corporation which certifies its existence
C. Company secretary
which is automatically subject under US
1965
D. none of above
221. Choose all that are true about a security
agreement:
225. Characteristics of the consulate:
A. a document that provides a creditor
a security interest in aspecified asset or A. They could deal with matters of land or
property that is pledged as collateral maritime trade (consulates of the sea).
B. agreement must be signed by both
B. Located in cities with important trade
the creditor and the debtor, contain the
and in merchant colonies abroad.
debtor’s name and address, and provide
a description of the collateral. (SAND) C. Legal-mercantile institution that arose
C. is effective according to its terms be- from the merchant corporations.
tween the parties, againstpurchasers of
the collateral, and against creditors D. Controlled by the State
D. none of above
226. Under the Model Buisness Corporation
222. In Bailment contact, the relationship be-
Act, shareholders of a small or close cor-
tween parties
poration (corporation owned by a small
A. Bailor and Bailee number of shareholders) may enter into a
B. Landlord and tenant shareholder agreement which allows the
corporation to dispense with certain corpo-
C. Broker and agent rate formalities except for one of the fol-
D. Buyer and seller lowing:

ing the existence of B’s authority.’ A is

agent by

A. necessity
B. ratification
C. holding out
D. estoppel
229. Which is NOT a disadvantage of a corpo-

ration:
A. Expensive to start
B. Regulated by the government
A. the board of directors C. Double taxation
B. discretion or powers of the board of di- D. Unlimited life
rectors
230. Section 15 of Indian contract Act 1872
C. annual meeting of the board of direc- deals with
tors
A. Mistake
D. electing officers of the corporation
B. Coercion
Explanation:Under Section 7.32 of the
Model Business Corporation Act, Share- C. Undue Influence
holder Agreements are authorized to let D. Fraud
Shareholders dispense with the formality
of a board of directors and holding annual 231. Which one of the statement below de-
Shareholder meetings. This section of the scribe Quantum Meruit?
Act does not allow for the Corporation to A. it is described as loss of bargain
dispense with officers.
B. the amount he deserves or as much as
227. Choose all that apply. Accounting means he has earned
a record: C. it is described as discomfort and dis-
A. authenticated by a secured party agreement
D. cases it denotes a claim for a reason-
B. indicating the aggregate unpaid se-
able sum in respect of services or goods
cured obligations as of a date not more
supplied to the defendant.
than 35 days earlier or 35 days later than
the date of the record 232. Novation means
C. identifying the components of the obli- A. Alteration
gations in reasonable detail
B. Relinquishment
D. none of above
C. Cancellation
228. ‘A person, by his words/conducts, al- D. Substitution
lows a 3rd party to believe that B is his
agent even when B is not, and the 3rd 233. The Indian Contract Act came into force
party relies on it to his detriment, that per- on
son will be estopped/precluded from deny- A. 1 st September 1872

B. 1 st September 1972 238. Which of the following is TRUE with re-

gard to a partnership?
C. 1 st July 1932
A. A minimum of 20 partners is required
D. 1 st July 1930
B. A certification by a Notary Public is re-
E. 1 st June 1956 quired
C. Registration with the government is re-
234. What is the primary purpose of deter-
quired
mining the precise moment when the prop-
NARAYAN CHANGDER
erty in goods passes from the seller to the D. There is no separate legal personality
buyer in a contract of sale of goods?
239. When the hire purchaser makes default in
A. To determine when risk passes to the paying the instalment the hire vendor has
buyer. A. The right to take repossession of the
B. To establish the payment schedule. asset
C. To allocate shipping costs. B. No right to take repossession
C. The option to reposses the assets
D. To ensure the buyer takes physical pos-
session. D. He has to approach the court
240. soft-norms-
235. negotiable instrument means
A. the many interpretative and non-
A. promissory notes binding statements, for example by treaty
B. bills of exchange monitoring bodies, that can contribute to
an understanding and greater compliance
C. cheque of the law
D. All of the above B. non-profit and/or voluntary organiza-
236. The provision that an agreement not en-
C. the power, right or authority to inter-
forceable by law is said tobe void, is con-
pret and apply the law
tained in
D. norms drafted by authoritative bodies,
A. Section 2 (j) e.g. UNCITRAL, to create a standard,
B. Section 2 (f) which may be adopted by various jurisdic-
C. Section 2 (g)
D. Section 2 (i)
241. Which statement is MOST accurate of Re
237. A holder in due course is one who has Spectrum Plus [2005] UKHL 41?
a negotiable instrument by fulfilling three A. Fixed charges over circulating assets
conditions i) Good faith ii) Negotiability iii) is commercially inconvenient
Valid consideration iv) Without negligence B. Floating charges are the only form of
A. i & ii security that can be taken over circulating
assets
B. ii & iv
C. Fixed charges can be taken over circu-
C. i, ii & iii lating assets
D. i, iii & iv D. A and C above

242. Proofs of Identity and Residence includes A. Rejection

current passbook with details of perma- B. Failure to satisfy or perform condi-
nent/present residence address.

tions.
A. TRUE C. Counter offer or rejection of the offer.
B. False D. The offer may be terminated by
C. None of the above passage of time or death of the of-
D. none of above feree/offeror
E. All of the above are correct.
243. What is a contract for the benefit of out-
siders? 246. Conflict of laws, also known as , is
A. house rental contract the body of law that deals with disputes
that implicate the laws of more than one
B. loan contract country or state.(?)
C. life insurance contract A. private international law
D. road construction contract B. public international law
244. arbitration- C. transnational commercial law
A. the principle under which countries D. none of above
recognize and enforce each other’s legal
decrees 247. is the concept of “LET THE BUYER BE-
WARE”
B. form of dispute resolution (an alterna-
tive to litigation through the court system A. Information Centre
in which disputes are heard and decided B. Unfair Trade Practices
by an impartial arbitrator or arbitrators, C. Caveat Emptor
chosen by the parties to the dispute
D. Buyer Kingdom
C. similar to mediation, in which an impar-
tial third party helps the parties to a dis- 248. Which type of contract would be consid-
pute to resolve their problem, but which ered a contract for the sale of goods?
unlike arbitration does not lead to a deci-
A. A contract for the supply and installa-
sion to which the parties are bound
tion of curtains
D. a sovereign state which is a member of
B. A contract for painting a portrait
a confederation of other such states, such
as the European Union or the United Na- C. A contract for printing special design
tions debentures
D. A contract for a chattel to be made and
245. Which of the following describes a revo-
delivered
cation or termination of an offer?
Explanation:Chattel is the tangible per-
sonal property that is movable between
locations. It can refer to property such
as mobile homes, furniture, and automo-
biles. The other types of contract mainly
concern with a contract of service, there-
fore they are not considered as a contract
for the sale of goods.

249. An owner can repossess the goods from C. on demand

the hirer if: D. definite time
A. if the hirer pays two days late
252. Which type of contract cannot be entered
B. the hirer fails to pay the first payment
by a minor?
C. the hirer fails to pay two successive in-
A. Food
stallmenmts
B. Insurance
D. upon the hirer’s death, the personal
NARAYAN CHANGDER
representative fails to pay two successive C. Fire cracker
installments D. Shelter
250. Which of the following is NOT a task a
253. An agreement without consideration will
paralegal can undertake relating to corpo-
be
rate minutes or documents?
A. Void
B. Voidable
C. Illegal
D. Inoperative
254. a document of title issued by a person en-

gaged in the business of storing goods for
hire
A. Bill of lading
B. Invoice
C. Warehouse receipt
A. Provide legal advice as to actions pro-
posed by the corporation D. none of above
B. Record votes and resolutions of the 255. What is a counter offer?

corporate board
C. Make note of activity relating to tax,
financial or legal issues which must be
voted on by the corporate board or share-
holders
D. Note the name or type, location, date
and time of the meeting
Explanation:Generally, a paralegal provid-
ing legal advice is considered unlicensed
practice of law
A. A further offer made by the original of-
251. Negotiable instruments must be feror.
payable
B. Where a party seeks to introduce a
A. never secondary or ancillary agreement to the
B. at issuance original contract.

C. Where a party seeks to change or vary 260. Which of the following is an advantage
terms of the original offer or seeks to in- of being in a partnership?
troduce a new term(s).

A. Ideas and decision making can be
D. A rejection and withdrawal of the orig- shared
inal offer.
B. The most senior partner has responsi-
256. Express contract means bility for running the business
A. Agreed upon at the time of start up C. Partners can have responsibility for
many different areas of the business
B. Agreed upon at the time of wound up
D. Each partner gets the same share of
C. Agreed upon at the time of formation the profits
D. Agreed upon at the time of contrat
261. In which statute will you find the permis-
257. It is not essential element of contract of sion to apply English Sales of Goods Act to
bailment Sabah and Sarawak?
A. doing contract A. Federal Constitution
B. return of goods in specific time B. Civil Law Act 1956
C. delivery of goods C. Contracts Act 1950
D. Purchase of goods D. Sales of Goods Act 1950
E. None of the above
262. of foreign judgments in some coun-
258. What does the word “void karma” tries depends on whether the court applied
mean? the law that would have been chosen un-
der the choice-of-law rules.(?)
A. Legal acts that are provided by law to
be void. A. Accreditation
B. Legal acts that the law provides are B. Commendation
void. C. Recognition
C. A juristic act that is provided by law to
D. none of above
be complete when it is annulled.
D. Legal acts that have been established 263. AGENCY LAW IS
by law have been wasted since the begin- A. Party that has express (oral or written)
ning. or implied authority to act for another (the
principal) so as to bring the principal into
259. Domicile Permit is one of the require-
contractual relationships with other par-
ments that must be fulfilled in matters
ties.
A. Fulfillment of credit matters
B. is an area of commercial law deal-
B. Fulfillment of KUA affairs ing with a set of contractual, quasi-
C. Fulfillment of Legal Documents mat- contractual and non-contractual fiduciary
ters relationships that involve a person, called
the agent, that is authorized to act on be-
D. All wrong half of another (called the principal) to cre-
E. Fulfillment of Regulatory Documents ate legal relations with a third party

C. :the number of customers who buy or

may buy products and services offered by
companies within their own country
D. the official power to make legal deci-
264. What is the legal act that is considered

A. Duration of the Corporation
to be a suspension of rights?
NARAYAN CHANGDER
B. Name of the resident or registered
A. Buy and sell agent
B. borrow C. Number of issued shares
C. Pay off debt D. Address of the resident or registered
D. exchange agent
Explanation:The number of authorized
shares (or Treasury shares) is required in
265. A contract of sale of contingent goods is
the formation documents. The number of
shares issued to the shareholders is not
A. Sale required in the charter document.
B. Agreement to sell 268. A contract to perform the promise, or dis-
C. Unlawful charge the liability, of a third person in
case of default is known as
D. All of the above
A. Contract of indemnity
E. none of the above
B. . Contract of guarantee
266. PRIVATE LAW IS C. Contingent contract
A. the wide body of law that relates to D. Like a Contract
business and trade between business en- E. None of these
tities and between people engaged in busi-
ness. 269. Which of the following is true of the
bankruptcy procedure?
B. the law of relations between individu-
als and the state
C. the official power to make legal deci-
D. a branch of the law that deals with the
relations between individuals or institu-
tions, rather than relations between these
and the state. A. A debtor must receive repetition coun-
seling within 180 days prior to filing his or
her bankruptcy petition
267. When forming a corporation, the follow-
ing items will be required in the charter B. A complaint is filed by creditors of a
document (I.e. Articles of Incorporation or debtor alleging that the debtor is not pay-
Certificate of Incorporation) except for: ing his or her bills as they become due

C. The debtor may choose to file a peti- C. Barcelona

tion for bankruptcy in other state or fed- D. Sevilla
eral court

274. NPII stands for:
D. A bank may file a bankruptcy petition
for a debtor who has fallen behind on his A. National Personal Insolvency Initiative
or her mortgage payments B. National Personal Identifiable Index
Explanation:11 U.S.C. 109 (h)(1) requires
C. National Personal Insolvency Index
a debtor to receive repetition credit coun-
seling within 180 days before filing a D. National Personal Insolvency Informa-
bankruptcy petition. tion
270. law is the area of law that guides 275. A valid contact requires reasonable
real property, personal property, and in- for essential terms
tellectual property. A. Certainty
A. Tort B. Acceptance
B. Property C. Offer
C. Oral contracts D. Consideration
D. Agency 276. An agreement enforceable by law
271. The is the party who authorizes the A. Agreement

other to act in their place, and the agent B. Contract
is the person who has the authority to act C. Offer
on behalf of the principal.
D. Contingent contract
A. Principal
277. Lexical cohesion:
B. Agent
A. relating to words
C. Seller
B. united and working together effec-
D. buyer tively
272. In the PT Law regulations regarding C. in an unfriendly way and without emo-
types of capital, what is the minimum tion
nominal authorized capital that a PT must D. repeating the same word or using syn-
have? onyms to refer to it
A. 100 Million
278. What type of agreement is used to form
B. 50 million a partnership business?
C. 150 Million A. Written agreement
D. 30 million B. Oral Agreement
E. 20 Million C. Written or Oral Agreement
D. No Agreement required
273. The consulates appeared at the end of
13th century in Spain, more specifically in: 279. Acceptance can be done in
A. Burgos A. 2 ways
B. Valencia B. 1 ways

280. Contract of indemnity is? 284. is a Stipulation which is Collateral to

purpose of contract.
A. Void agreement
A. Condition
B. As if contracted
B. Warranty
C. Contingent contract
C. Guarantee
D. Wagering contract
D. As if contracted
281. Which of the following is NOT an essen-
285. Customary Law can be found in the
NARAYAN CHANGDER
tial requirement for title to pass in a sale
country ?
by a mercantile agent under s2 of the Fac-
tors Act 1889? A. Asia
A. The mercantile agent must in posses- B. Asean
sion of the goods or documents of title to C. Europe
the goods when he sells, pledges or dis- D. America
poses of the goods
E. Indonesia
B. The mercantile agent must be in pos-
session of the goods or documents of title 286. State the effects and characteristics of
with the owner’s consent. company incorporation
C. The mercantile agent must have the A. Separate Entity Principle
owner’s express or implied actual author- B. Authority of a corporation
ity to sell the goods.
C. Companies can sue and be sued
D. The mercantile agent must be acting in
D. Continuity of life
his capacity as mercantile agent and in the
ordinary course of business E. The power to own property
E. The third party must acquire the goods 287. Partnership is the relation which subsists
in good faith. between persons who have agreed to com-
bine their property, labour or skill in some
282. Who is the head of the judiciary in Sri business and to share the profits there
Lanka? from between them.
A. The President A. True
B. The Prime Minister B. False
C. The Chief Justice C. Partly true
D. The Attorney General D. None of the above
283. A PRINCIPAL IS 288. What is the effect of the exception to

“nemo dat” rule in a sale of goods con-
A. a customer who is ordering a product text?
B. a person who has controlling authority A. It protects the buyer from fraud
or is in a leading position
B. It ensures the bona fide buyer to get a
C. a lawyer who regulates the relation- good title from the seller
ship in goods and services transactions
C. It voids the contract if the seller
D. none of above doesn’t own the goods

D. It allows the seller to claim the goods B. Courts will always follow the classifi-
back from the buyer cation made by the parties.
C. Courts will determine whether a term

289. The Lanham Act relating to trademarks:
is a condition or a warranty based on var-
ious factors.
D. Only the seller has the right to deter-
mine if a term is a condition or a warranty.
292. The Natural Law theory suggests that an
unjust law is:
A. Always morally valid
A. Gives protection to a recognizable B. Valid if it serves the greater good
sign, design or expression that distin- C. Invalid and should be challenged
guishes a product or service of a particu- D. Valid if enacted by a democratic gov-
lar trader for similar products or services ernment
of other traders
293. what the parties do in performing this
B. Gives protection to the creator of an
one particular contract, especially impor-
original work exclusive rights to it for a
tant where the contract goes on over a pe-
limited time and applies to a wide range
riod of time and creates its own history
of creative, intellectual or artistic forms
and expectations
C. Gives protection to visual design of ob-
A. usage of trade
jects that are not purely utilitarian, includ-
ing shape, pattern or color give aesthetic B. course of dealing
value C. course of performance
D. Gives protection to a trade formula, Explanation:Under common law it was re-
process, design, pattern or practice that ferred to as practical construction and
is not generally known or reasonably as- found that it gave great guidance to the
certainable. true boundaries of a contract
Explanation:15 USC 1051 et seq. provides D. none of above
protection to recognizable marks used in
a commercial setting 294. Commercial Law is
A. the wide body of law that relates to
290. is the central idea that both parties business and trade between business en-
in a contract need to benefit from it. tities and between people engaged in busi-
A. Consent ness.
B. Implied B. a branch of the law that deals with the
C. Unilateral relations between individuals or institu-
D. Consideration and the state.
291. How is the distinction between a condi- C. is an organization created by one or
tion and a warranty be determined in a more natural persons to carry on a trade
contract? or business.
A. Only parties can decide whether a D. treaties or agreements between coun-
term is a condition or a warranty. tries.

295. In which circumstances the original con- B. Voidable contract

tract need not be performed
C. Bilateral contract
A. If the parties to a contract agree to al-
ter it D. Unilateral contract
B. If the parties to a contract agree to 300. Once the person is declared bankrupt,
substitute a new contract generally the appointed trustee is given le-
C. If the parties to a contract agree to re- gal ownership or interest in all the prop-
erty and assets.
NARAYAN CHANGDER
scind it
D. All of these A. true
296. What characteristic of a corporation is B. false

missing from the diagram on the below?
301. What the parties did in their past con-
tracts with one another. If the parties
have dealt with each other in prior deal-
ings, that history creates an expectation
of what will happen in this contract
A. usage of trade
B. course of dealing
A. Owner shares the profits with family
members only C. course of performance
B. Stockholders share the profits D. none of above
C. Main owner receives the majority of
profits 302. Which of the following is not a subject
matter in a Sale of Goods Act?
D. Board of Supervisors has the final say
on new products A. Trademark
B. Goodwill
297. Which of these is an expectation that
commercial law tries to meet? You can C. Money
choose more than one.
D. Water
A. Predictability
B. Flexibility 303. Which is not a key factor when using the
predominant factor test
C. Morality
A. the language of the contract
D. Efficient dispute resolution
B. the nature of the business of the sup-
298. Uncertain agreement are void plier of goods and services
A. True
C. the reason the parties entered into the
B. False contract
299. Agreement which can be enforced or can- D. the amounts paid for the edition of the
celled at the option of aggrieved party is services and goods
called E. were there any express terms that the
A. Valid contract parties did not adhere to

304. hard norms 308. How many parties are normally involved
A. the principle under which countries when using a check?

recognize and enforce each other’s legal A. two
decrees
B. three
B. contract clause providing that any dis-
C. four
pute arising under the contract will be sub-
mitted to arbitration, in the place and ac- D. five
cording to the laws and rules specified in
the clause 309. NGO (non-governmental organization)
C. binding international treaty provisions A. co-operation between governments

and organizations to make laws more uni-
D. recognizable pattern of previous con- form and coherent
duct between the parties of a more re-
cent transaction from which a dispute has B. norms drafted by authoritative bodies,
arisen e.g. UNCITRAL, to create a standard,
which may be adopted by various jurisdic-
305. The case of Roscorla v Thomas describe tions, to govern a particular area of the
about law, e.g. transport of goods
A. Past consideration is a good consider- C. the power, right or authority to inter-
ation pret and apply the law
B. Past consideration is a rule of consid- D. non-profit and/or voluntary organiza-
eration tion that is not part of government
C. Past consideration is not a good con-
sideration 310. Having generally ceased to pay debtes in
the ordinary course of business other than
D. Past consideration is not a type of con-
as a result of bona finde dispute; being un-
sideration
able to pay debts as they become due
306. mark which statement is true? A. Overdue
A. all agreements are contracts B. Overdrawn
B. all contracts are agreements C. Insolvent
C. all agreements are legal D. Broke
D. all agreements are not illegal
311. A hire purchase agreement consists of the
307. Under what circumstances can a sale by a following elements EXCEPT
mercantile agent be valid according to the
Sale of Goods Act 1957? A. deferred payment
A. The seller must be the owner of the B. full payment in cash

goods. C. scheduled payment
B. The buyer must have no notice of the D. payment by installments
previous sale.
312. If the goods are lent free for the bailee
C. The sale must be approved by the
for his use it is known as
owner.
D. The goods must be in the possession A. Commodation
of a third party. B. Gratuitous Bailment

C. Non-Gratuitous Bailment A. The offer will be accepted once the let-

D. Deposition ter is received by the offeror.
B. When the seal of the letter is broken
313. Below is one of the characteristics of Or- by the offeror.
gan Theory, namely:
C. When the letter is posted by the of-
A. Having an organization or tools to man- feree.
age and carry out activities to achieve
goals (managers and assets), has the na- D. When the offeree gets notification
NARAYAN CHANGDER
ture of continuity that remains attached from the Royal Mail or Courier that his let-
even though its members change ter has been received.
B. All the assets of the legal entity be- 316. When does personhood begin and end?
come the joint property of the managers A. Starting from birth ends when death
or members
B. Starting from birth Even though it died
C. Having a specific purpose, it must be immediately after birth
separate from the assets of its adminis-
trators and members C. Starting from birth and survive as a
baby for at least 1 minute, with all organs
D. Legal entities are considered the same intact ends when death
as humans as legal subjects, and the law
also provides rights and obligations D. Starting from birth and survive as a
baby ends when death
E. All True
317. An offer is revoked
314. Original works are protected by
A. By the death or insanity
A. Copyrights
B. By lapse of time
B. Trademark
C. By communication of notice of revoca-
C. Patent tion
D. Contract D. All of these
315. What is the general rule of the postal ac- 318. In the stage, illegal funds/assets are
ceptance rule? brought into the financial system.
A. Placement
B. Integration
C. layering
D. Compliance
319. Collateral includes which of the follow-

ing? Check all that apply.
A. proceeds to which a security interest
attaches
B. accounts, chattel paper, payment in-
tangibles, and promissory notes that have
been sold

C. goods that are the subject of a consign- 324. An oral contract is

ment (that are movable) A. Legal

D. consumer goods B. Not enforceable
E. inventory includes goods that are kept C. Not for money
by a person for sale or lease D. Not legal
320. There are a number of statutory excep- 325. What is the definition of an invitation to
tions where a non-owner can pass title to treat?Select all options that apply!
a buyer. Which statute does not include
any such exceptions?
A. Sale of Goods Act 1979
B. Factors Act 1889
C. Law Reform (Frustrated Contracts)
Act 1943
D. Hire Purchase Act 1964
321. What is the legal term for a contract that

is missing one or more essential elements A. An invitation to another party to nego-
and is not enforceable by a court? tiate.
A. Voidable contract B. An indication of one party’s willingness

to enter into a contract with the party to
B. Unilateral contract whom its addressed as soon as the latter
C. Void contract accepts its terms.
D. Executed contract C. It is not an offer, it falls short of being

an offer.
322. Under s.31(1) of Hire Purchase Act 1967 D. An invitation to the other party to make
the down payment is not less than of an offer.
the cash price of the goods
326. St. Thomas Aquinas was always against
A. fifty percent charging interest on loans
B. ten percent A. True
C. five percent B. False
D. twenty percent 327. A set of legal rules established to reg-
ulate and resolve problems in human-to-
323. “To systematically, and judiciously, exer- human activities in the field of trade. This
cise executive power” is statement is a definition of ?
A. To Govern A. Civil law
B. Acts of Commerce B. Business Law
C. the official power to make legal deci- C. Criminal law
sions and judgements D. Criminal Law
D. Agent E. Nature rule

328. Shareholder Agreements do not allow a 331. Performance of contract means

corporation to dispense with: A. Fulfilling all the obligations by a party
B. Fulfilling all the obligations by the
promisor
C. Performing all the promises and fulfill-
ing all the obligations by all the parties
D. Both a) and b)
NARAYAN CHANGDER
E. None of these
A. The Board of Directors 332. is a person employed by, and acting

under the control of, the original agent in
B. Discretion or power of the Directors the business of the agency.
C. The election of officers A. subordinate agent
D. Annual meetings of the Directors B. sub agent
Explanation:Under Section 7.32 of the C. Del credere agent
Model Business Corporation Ave, Share-
holder Agreements are authorized to let D. general agent
shareholders dispense with the formal- 333. In the stage, multiple accounts, inter-
ity of a Board of Directors (which in- mediaries, banks, trusts, countries used to
cludes holding an annual meeting of the disguise source of the funds.
Directors) and holding annual shareholder
meetings. This section of the act does not A. Placement
allow for the Corporation to dispense with B. Integration
officers. C. Compliance
329. What is the place of domicile of a natural D. layering
person?
334. Deposit contract in the case of no compen-
A. Place of birth sation or no compensation What are the
duties of the depositary?
B. Place of work, place of residence,
place of residence which is an important A. It is your duty to contact the depositor
source to receive the item back.
C. Place of residence B. It is your duty to take care of the de-

posits as much as your time allows.
D. Location according to house registra-
C. Has a duty to maintain the deposited
tion
assets as he used to maintain his own as-
sets.
330. What is the effect of a hire purchase
agreement which is made verbally? D. There is no correct answer.
A. Void 335. Following the decision in Prest v Petrodel
B. Valid Resources [2013] UKSC 34
A. Separate personality could be disre-
C. Voidable
garded if the company was interposed to
D. Enforceable evade contingent liability

B. Separate personality could be disre-

evade existing liability

C. Separate personality could be disre-
evade future liability
D. All of the above A. Offer, Acceptance, Consideration, In-
tention, Certainty.
336. The consideration in case of contract of B. Duty, Breach, Causation, Damages
agency
C. Offer, Acceptance, Collateral, Suffi-
A. Can be past, present, future ciency.
B. Need not be adequate D. Invitation to treat, Offer, Counter Of-
fer, Acceptance.
C. Need to be real
341. A partnership arrangement is commonly
D. Not mandatory
found in
337. Most courts deem the sale of goods pre- A. the fire service
dominant when the value exceed what per- B. dentists’ surgeries
centage of the transaction’s total cost
C. local councils
A. 25% D. supermarkets
B. 50%
342. A contract of Indemnity is
C. 51% A. Void Agreement
D. 75% B. Like a Contract
338. Advocates are classified as C. Contingent Contract

D. Wagering Contract
A. general agent
B. Special agent 343. Bailment is defined under section if
Indian contract Act 1872.
C. mercantile agent
A. 144
D. Non-mercantile agent B. 146
339. When a person invites the other party to C. 148

make an offer, this is known as D. 149
A. Offer 344. The person making the proposal is called
B. Invitation of offer and the person accepting the proposal
is called
C. Invitation to offer
A. Propose, proposed
D. None of these B. Propose, propose
340. What is required to form a legally binding C. Promisor, promisee

contract? D. Promisee, promisor

345. Which one of the following is rights of 350. CONSENSUS AD IDEM means
consumer A. Mutual Understanding
A. Right to sleep B. Mutual agreement
B. Right to Eat
C. Mutual contract
C. Right to walk
D. Mutual fund
D. Right to heard
351. In a contract for the sale of specific goods,
NARAYAN CHANGDER
346. Check all of the following that define a the goods, without the knowledge of the
debtor seller perished at the time when the con-
A. a person having an interest, other than tract was made, the contract is:
a security interest or other lien, in the col- A. A voidable contract at the instance of
lateral, whether or not the person is an the seller
obligor
B. A voidable contract at the instance of
B. a seller of accounts, chattel paper, pay- the buyer
ment intangibles, or promissory notes
C. A voidable contract subject to approval
C. consignee of the civil court
D. none of above D. A void contract
347. Which of the five major rights protects 352. His greatest work is the Summa Theolog-
customer from fraudulent advertising, mis- icae, a reference work of medieval philos-
labeling and misrepresentation? ophy with great influence on Catholicism.
A. The right to be informed A. Francisco de Vitoria
B. The right to choose
B. Sancho de Moncada
C. The right to safety
C. Aristotle
D. The right to be heard
D. St. Thomas Aquinas
348. custom within the industry and this cus-
353. G is the guarantor of a loan. But he died
tom binds all of those who should know
on 10.11.2020. Bank issued a notice to
about it, sometimes including even cus-
guarantor claiming his estates for Rupees
tomers
10, 12, 588-which was the balance on
A. usage of trade 10.11.2021?
B. course of dealing A. Bank has no right over his estates (as-
C. course of performance sets) after death of G
D. none of above B. G has no responsibility since he is
dead.
349. The term is utmost importance in the
sale of goods. C. Bank can claim the balance plus inter-
est as on date of death
A. transfer
D. Bank can claim all balance up to date
B. goods even after the death since the liability is
C. price co-extensive
D. ownership E. None of these

354. protect the names and identifying C. Contract is made bu law

marks of products and companies.
D. Valid Contract

A. Patents
360. Section 6 of the Negotiable Instruments
B. Trademarks
Act defines
C. Trade secrets
A. Cheque
D. Copyrights
B. Bill of Exchange
355. In partnership, partners liabilities are
C. Promissory Notes
A. Limited
D. Dishonour by non-payment
B. Unlimited
E. Dishonour by non-acceptance
C. Limited to the capital invested
D. Limited to the amount mentioned 361. A time draft is when a buyer has paid off
a debt in full.
356. How do you define goods?
A. True
A. every kinds of moveable property
other than actionable claims and money. B. False
B. every kinds of items that can be ex- 362. A contract to charge a set price with com-
changed from one hand to another. petitors violates which element?
C. every kinds of property that can be A. capacity
passed from one person to another.
B. consideration
D. when someone behaves properly and
doing something pleasant. C. legality
D. offer
357. Which school of law is concerned with the
intersection of law and gender, advocating 363. Choose all that apply. Inventory are
for legal changes to address gender-based goods other than farm products which:
inequalities?
A. are leased by a person as lessor
A. Legal Realism
B. are held by a person for sale or lease
B. Feminist Legal Theory
or to be furnished under a contract of ser-
C. Historical School vice
D. Natural Law C. are furnished by a person under a con-
tract of service
358. Intellectual Property can be protected by
A. Patents D. consist of raw materials, work in pro-
cess, or materials used or consumed in a
B. Agency business
C. Tort
364. An agent is personally liable
D. Statues
A. Where the agent has agreed to person-
359. Void Contract meaning ally liable to the third party
A. Agreement not Enforceable by law B. Where the agent acts for a principal re-
B. Agreement is Enforceable by law siding abroad

C. When the agent signs a negotiable in- B. Two parties voluntarily enter into legal
strument in his own name without making acts with each other.
it clear that he is signing it only as agent C. Several parties voluntarily enter into
D. all the above legal acts with each other.
D. All correct.
365. If the bankrupt has a mortgage over a
property, the secured creditor (bank or 369. Which of the following is the main source
lender) may repossess and sell this prop- of law in Malaysia?
NARAYAN CHANGDER
erty.
A. Federal Constitution
A. true B. State Constitution
B. false C. Legislation
366. comity- D. Subsidiary Legislation
A. a sovereign state which a member of a 370. At what age can a minor make a will?
confederation of other such states, such
A. 15 years of age
as the European Union or the United Na-
tions B. 16 years of age
B. similar to mediation, in which an impar- C. 17 years of age
tial third party helps the parties to a dis- D. 18 years of age
pute to resolve their problem, but which
unlike arbitration does not lead to a deci- 371. Below are components that are legal sub-
sion to which the parties are bound jects, except
C. form of dispute resolution (an alterna- A. Fetus in the womb

tive to litigation through the court system B. Man
in which disputes are heard and decided C. Enterprise
by an impartial arbitrator or arbitrators,
chosen by the parties to the dispute D. Action
E. Dead Things
D. the principle under which countries
recognize and enforce each other’s legal 372. In the main European modern countries,
decrees commercial law is becoming a unified na-
tional law under the authority of
367. When an LC is opened for procurement of
goods, on the backing of an export LC, it A. The bourgeoisie
is called B. The Lex Mercatoria (Law Merchant)
A. Revocable C. The merchants
B. Irrevocable D. The State
C. Transferable 373. What condition must be met for an im-
D. Back to Back plied warranty of fitness for a particular
purpose to apply?
E. Sight
A. The buyer must disclose the purchase
368. The legal act was performed by which price to the seller.
person? B. The buyer must rely on the seller’s skill
A. Only one party can carry out legal acts. and judgment.

C. The buyer must purchase the goods un- 377. One of the potential consequences of
der a patent or trade name. bankruptcy is it may affect the person’s
(bankrupt’s) ability to obtain future credit

D. The buyer must pay in advance for the
goods. A. true
B. false
374. Which of the following statements is
TRUE of the limited liability company? 378. In the UCC 2-700s refers to what?
A. It is a business vehicle that was al- A. Formation of the contract
ways recognised at common law. B. Content of the contract
B. It is a business vehicle that is recog- C. Performance of the contract
nised as the principal unit of commercial D. Breach and remedies of the contract
life.
C. It is a business vehicle that always en- 379. Main philosophical movements of the
joyed both separate legal personality and Early Modern period
limited liability in English law. A. Phenomenology
D. It is a business vehicle that is exempt B. Scholasticism
from tax regulations C. Rationalism
D. Enlightenment
375. member state-
A. form of dispute resolution (an alterna- 380. In case of order instrument, two things
tive to litigation through the court system are required for a valid transfer: and
in which disputes are heard and decided
by an impartial arbitrator or arbitrators, A. Transferability & Negotiability
chosen by the parties to the dispute
B. Endorsement & delivery
B. a sovereign state which is a member of C. Transferability & Delivery
a confederation of other such states, such
as the European Union or the United Na- D. Endorsement & Negotiability
tions 381. Which of the following is NOT Legal rem-
C. body of legal principles that govern edy for breach of contract?
business transactions deriving from the A. Damages
B. Specific Performance
D. the power, right or authority to inter- C. Recession
D. Injunctions
376. What are the stages of money laundering
382. Which component of a computer system
which are resorted to by the launderers &
is described as goods governed by the
insurance institutions
Sales of Goods Act 1950?
A. Integration-Layering-Placement A. Programs
B. Layering-Placement-Integration B. Instructions or commands
C. Placement-Layering-Integration C. Algorithm
D. None of the above D. Physical medium

383. This type of business organization ac- 388. In Eastern Distributors Ltd v Goldring,
counts for the most revenue in the United which exception to nemo dat allowed title
States: to pass to the Claimant?
A. Franchises A. s.27 Hire Purchase Act
B. Partnerships B. Estoppel by representation, s.21(1)
C. Corporations SGA
D. Sole Proprietorships C. Consent of the owner
NARAYAN CHANGDER
384. Which of these businesses is a sole D. Sale by a mercantile agent, s2 Factors
trader? Act 1889
A. Domino’s
389. Which is NOT a disadvantage of a sole
B. Marks & Spencer
proprietorship:
C. Amazon
A. Limited Life
D. Local Newsagent
B. Difficulty raising financial capital
385. lex mercatoria
C. Limited Liability
A. non-profit and/or voluntary organiza-
tion that is not part of government D. Long Hours
B. the power, right or authority to inter-
390. A partnership can be dissolved by:
C. body of legal principles that govern A. agreement of the partners
business transactions deriving from the B. lapse of time
C. a court order
D. co-operation between governments
and organizations to make laws more uni- D. All of the above
form and coherent
391. Under which of the following circum-
386. Implied contract stances will the asset of hire purchase
A. Acts or conduct of the Creditor legally belong to the purchaser?
B. Acts or conduct of the parties A. When the deposit is paid
C. Acts or conduct of the Debtor B. When the hire purchase agreement is
D. Acts or conduct of the person signed
387. Which option is CORRECT about Partner- C. When the first instalment is paid
ships under the Partnership Act 1890? D. When the final instalment is paid
A. Every partner in a firm is liable jointly
with the other partners 392. In the UCC the 2-300s talks about?
B. Every partner lacks the benefit of lim- A. Formation of a contract
ited liability
B. Contents of a contract
C. Every partner’s act may bind the firm
and other partners C. Performance of a contract
D. All of the above D. Breach and remedies for a contract

393. To provide protection to the consumers E. The third party must buy the goods
against the improper behaviour of the pro- in good faith without notice of the hire-
ducers and sellers is called purchase agreement.

A. Consumers Protection Act 398. A limited liability partnership for doing
B. Consumer Protection business is:
C. Consumer Welfare
D. Consumer Education
394. A contract is said to be made without con-

sent when the contract is caused by
A. Coercion A. A partnership in which some or all of
the parties have limited liability and one
B. Undue influence partner is neither responsible nor liable
for another partner’s misconduct
395. Which is a legal contract?
B. A single owner of a business who re-
A. Mr. Aod agrees to enter into a car ceives all the profits for the business and
rental agreement with Mr. Aed. is legally responsible for activities of the
B. Mr. Aod agrees to hire Mr. Aed to act business
as a lawyer in the divorce case. C. A company where the shares are
C. Mr. Aod agrees to enter into a loan traded on a stock exchange and dividends
agreement with Mr. Aed. are paid to the shareholders
D. All correct. D. A voluntary association of two or more
persons for carrying on a business as co-
396. The consideration may be owners for profit where the partners are
personally liable for all debts and obliga-
A. Past
tions
B. Present Explanation:A limited liability partnership
C. Future shields an innocent partner from negli-
gence claims against another partner.
D. All of these
399. When a customer draws a cheque on his
397. Which of the following is NOT an essen- banker, the banker is known as
tial requirement for title to pass under
A. the collecting banker
s.27 of the Hire Purchase Act 1964?
B. the paying banker
A. The seller must have the authority
of the owner before be disposes of the C. the customer banker
goods to another person. D. none of above
B. The goods must be a motor vehicle.
400. The term quasi means
C. The seller must be in possession of the A. Similar to real contract
goods as a hirer under a hire-purchase
agreement B. Resemble to real contract
D. The third party must be a ‘private pur- C. Both 1 & 2

chaser’ D. None

401. if something is vulnerable more important than both course of deal-

A. it is closely terminated ing or usage of trade and course of deal-
ing beats out an inconsistent usage of
B. it is prevailing among the other trade
C. it is rather significant
406. When forming a nonprofit corporation,
D. easy to damage or attack once the charter document has been filed
with the state of domestic jurisdiction, the
402. of an offer is agreement to the terms nonprofit corporation:
NARAYAN CHANGDER
of the offer.
A. Competency
B. Consideration
C. Acceptance
D. Offer
403. Abbreviation of CPA

A. Consumer production Act A. Is exempt from federal taxes
B. Consumer protection Act B. Can solicit for tax exempt charitable

donations
C. Consumer profit Act
C. Files form 990 with the IRS
D. City Parliament Act
D. Applies for federal employer identifi-
404. Legal acts without compensation corre- cation number
spond to which of the following? Explanation:All nonprofit corporations
must obtain a federal employer identifica-
A. making a sales contract tion from the IRS. A nonprofit corporation
B. Making a contract for work is not automatically exempt from federal
C. making a contract taxes. The nonprofit must be qualified to
apply for exemption and then must prop-
D. Contracting a property rental contract erly apply to the IRS for tax exemption. If
the nonprofit obtains tax exemption from
405. Put these in order of importance when
the IRS, then the nonprofit will have to
creating a contracta. express termsb.
annually file form 990 with the IRS. If tax
course of dealingc. usage of traded.
exemption is granted by the IRS, then the
course of performance
nonprofit can solicit for charitable dona-
A. a, d, b, c tions.
B. b, a, c, d 407. Which category below is a requirement
C. c, d, a, b for someone to be considered an adult ac-
D. d, b, a, c cording to Article 330 of the Civil Code?
Explanation:1-303(e) there is a hierar- A. Someone who is 20 years old
chy of importance of these construction B. Someone who is married
terms, with the more relevant ones beat-
ing out the less relevant. Under this C. Someone who can make a will
idea, express terms control course of per- D. Someone who has been born into the
formance, but course of performance is world

E. Someone who is physically and men-

tally healthy

408. A company wants to computerize its ac-
counting system. It issues stocks to raise
additional funds.
A. Federal Law
B. State Law
C. Municipal Law
D. International Law
Explanation:In the U.S., Bankruptcy is ex-
clusively governed by federal law pur-
suant to Article I, Section 8, Clause 4 of
A. Sole Proprietorship
the U.S. Constitution
B. Partnership
412. Are cats, dogs, cows, and race horses
C. Corporation
goods?
D. none of above
A. Yes
409. enforce B. No
A. formal to give something such as a ser- C. In depends
vice, a personal opinion or expression, or D. none of above
a performance of a song or poem, etc. to
people 413. What type of business is described in the
B. to make people obey a law, or to make diagram below?
cepted
C. to act as judge in a competition or
argument, or to make a formal decision
about something
D. to solve or end a problem or difficulty
410. Goods exclude the following things, ex- A. Sole Proprietorships

cept: B. Partnerships
A. herd of cattle C. Corporation
B. Fruits still attached to a tree D. none of above
C. Money
414. Portugal was the first European country
D. Seeing a doctor at a clinic to build a trading empire in America:
A. True
411. Bankruptcy Law in the U.S. is exclu-
sively: B. False

415. Which one of the following has the cor- C. The Crowther Committee on Consumer
rect sequence? Credit (1971)
A. Offer, acceptance, consideration D. Lord Walker, Shogun Finance Ltd v
B. Offer, acceptance, consideration, con- Hudson (2003)
tract
419. law deals with situations where a
C. Contract, acceptance, consideration, person’s behavior has caused someone
offer else to suffer a loss orharm.
NARAYAN CHANGDER
D. Offer, consideration, acceptance, con- A. Tort
tract
B. Regulatory
416. Who is assessment-authorizing parties? C. Agency
A. Traders D. Statues
B. Traders providing assessment service
in Vietnam 420. To create an agency is not required
C. Foreign traders providing assessment A. Principal

services having no license to operate in B. Agent
Vietnam
C. consideration
D. none of above
D. third party
417. In case of overdraft / CC accounts where
421. The parties to a hire purchase agreement
several transactions are there, both deb-
are
its as well as credits, each credit entry is
deemed to be appropriated against debit A. the owner and the hirer
in chronological order is called rule B. the buyer and the seller
A. LIFO-CLAYTONS C. the owner and the seller
B. FIFO-CLAYTONS D. the buyer and the agent
C. SIFO-LATON
422. The acceptance of a proposal should be
D. THE GIRL
A. Express
E. THE GIRL
B. Implied
418. “In the development of our law, two
C. Given by consent
principles have striven for mastery. The
first is for the protection of property:no D. All of these
one can give a better title than he himself
possesses. The second is for the protec- 423. Which is NOT a characteristic of a com-
tion of commercial transactions:the person pany according to Molengraff Polak?
who takes in good faith and for value with- A. Incidental
out notice should get a good title.” Who
B. Sustainable
said this?
C. Bookkeeping
A. Lord Cairns, Cundy v Lindsay (1878)
B. Denning, LJ, Bishopsgate Motor Fi- D. Enterprise
nance Corp v Transport Brakes (1949) E. Overtly Operational

424. In Shogun Finance v Hudson, why could 428. guarantees to the principal that if the
the defendant not rely on s.27 of the Hire third party does not pay then the agent
Purchase Act 1974? will pay

A. The contract between Shogun Finance A. Broker
and the rogue was held to be void for mis- B. General agent
take.
C. Of believing in agency
B. Hudson knew about the hire purchase
agreement, so was not a bona fide pur- D. Subagent
chaser.
429. What does nemo dat quod non habet
C. The case did not involve a hire pur- mean in English?
chase agreement.
A. No habit should preclude the law
D. Mr Hudson did not pay for the car in
B. No one can give what he doesn’t have
cash.
C. The innocent party must triumph
425. Reference:-
D. He who asserts must prove
A. to make something happen or begin,
especially something unpleasant or unex- 430. and informal standards govern much
pected. transnational commercial law. These are
B. to act as judge in a competition or argu- persuasive rather than binding, and can
ment, or to make a formal decision about sometimes harden over time into more for-
something mal laws.(?)
C. to make people obey a law, or to make A. Treaties

a particular situation happen or be ac- B. Soft norms
cepted C. Uniform rules
D. referring to something previously men- D. none of above
tioned, usually with a pronoun (e.g. it,
they) a determiner (e.g., this, that) or 431. The Consumer Protection Act
by using formulaic expressions (e.g. the
A. 1990
eforementioned, the former)
B. 1986
426. Established by the state, Merchant law
C. 1993
was the product of custom and practice
among merchants, and could be enforced D. 1984
through local courts
432. A business organization that has mem-
A. True bers is a(n)
B. False A. Sole proprietorship
427. Which of the following are NOT ITT? B. Partnership
A. Advertisement C. LLC
B. Tender D. Corporation
C. Acceptance 433. Money in the bankrupt’s bank account
D. Auction may be taken by the trustee, but the

trustee must leave enough for modest liv- D. when it is impossible for the agent to
ing expenses. get the principal’s instruction
A. true 438. Condition is a stipulation which is
B. false
A. Collateral to the main purpose of the
434. According to Section 71 of the Contract contract
Act, a person who finds goods belonging B. Essential to the main purpose of con-
to another and takes them into his custody, tract
NARAYAN CHANGDER
is subject to the same responsibility as a
C. Not essential to the main purpose of
contract
A. Bailee
D. None of the options
B. baths
439. Which school of law asserts that law is a
C. Surety
reflection of the will of the sovereign au-
D. Pawnor thority and must be obeyed regardless of
E. Lessee its content?
A. Legal Realism
435. Recent decades have seen a growing de-
mand for the of the legal rules and prin- B. Positivist Law
ciples governing international commercial C. Utilitarianism
transactions.(?)
D. Feminist Legal Theory
A. orchestration
B. harmonisation 440. Which of the following two are non-
possessory securities?
C. collectivization
A. Lien and Pledge
D. none of above
B. Pledge and Mortgage
436. A business organization where the own- C. Mortgages and Charges
ers are personally responsible for the busi-
ness debts a(n) D. Lien and Mortgages
A. C Corporation 441. All Illegal agreements are void but all

B. LLC void agreements are not necessarily illegal
C. Partnership A. False
D. Sole proprietorship B. True
C. Half true and Half false
437. In which of the following circumstances,
an agency by necessity may be created? D. All of the above
A. when an agent signed an estoppel 442. Person below the age of 18 years
agreement
A. Major
B. when a person who is with authority
act as an agent B. Minor
C. when an agent breaches the agree- C. Lunatic

ment with the principal D. Drunkard

443. Who has responsibility for the D. None

bankruptcy policy, the Bankrupty Act and
AFSA in Australia? 448. In case of Sale the risk is associated with

A. State Premier
A. Money
B. Attorney-General
B. Goods
C. Law Institute of Victoria
C. Ownership
D. none of above
D. Possession
444. Which of the following is not an insol-
vency principle: 449. Common seal is used as
A. Maximizing return to creditors A. Agreement
B. Providing a fair and equitable ranking B. Signature
of creditor claims C. Approved agreement
C. Termination of directors powers D. Non approved agreement
D. Non-creation of a statutory trust
450. One way that the court upholds party au-
445. To fulfill civil law proficiency require- tonomy in commercial transactions is by re-
ments, what is the minimum age limit for a specting the
person according to Article 330 of the Civil A. sanctimony of contract
Code?
B. sanction of contract
A. 18 years
C. sanctity of contract
B. 21 years
D. sanity of contract
C. 15 years
D. 17 years 451. when a contract is made expressed, it in-
cludes
E. Starting from Birth
A. written agreement
446. “Today, Tuesday, the 18th of August,
B. spoken agreement
two thousand and twenty-two in Blitar”
is an example of the anatomy of an Agree- C. both
ment/Contract called ? D. either written or spoken
A. Conditions
452. a fact means the burden of persuading
B. Title the trier of fact that the existence of the
C. Head fact is more probable than its nonexistence
D. Closing A. Burden of persuading
E. Comparison B. Burden of production
C. Burden of establishing
447. Voidable contract can be cancelled or en-
forced at the option of D. none of above
A. Aggrieved party 453. Artist commissioned to draw a portrait is
B. Other party considered as
C. Stranger A. sale of goods

B. selling a product 459. At what age does a person cease to be a

C. selling a movable property minor or reach the age of majority?
D. contract for works and services A. 17 years of age
B. 18 years of age
454. An instrument in writing containing an un-
conditional order signed by the maker, di- C. 20 years of age
recting the certain person to pay certain D. 21 years of age
some of money only to or order of a cer-
460. In the stage, laundered money is
NARAYAN CHANGDER
tain person is called as
made available as apparently legitimate
A. Promissory note funds
B. Cheque A. Placement
C. Bill of exchange B. Integration
D. none of above C. layering
455. Who is buyer? D. None of the above
A. a person who buys or agrees to buy 461. Which of the following is NOT a require-
goods. ment for negotiability?
B. a person who is still negotiating A. Must be written
C. a person who offers to sell goods B. Must be signed
D. a person who is disagree to buy goods C. Must contain a condition of payment
456. The creates legal relationship be- D. Must be for an exact amount of money
tween the principal and third party.
462. If a person jointly owns assets with
A. Contractor another person, such as a partner, the
B. Agent trustee has:
C. Principal A. ownership of the bankrupt’s share in
the property.
D. Owner
B. ownership of the bankrupt’s share and
457. A void contract the partner’s share in the property
A. does not exist
463. The abbreviation of GMS is
B. is a crime
A. General Meeting of Shareholders
C. is a tort
B. General Meeting of Shareholders
D. is not legally binding
C. General Meeting of Business Leaders
458. What does a property deposit agreement D. General Meeting of Private Employees
mean?
E. General Meeting of Share Sellers
A. There is no need for a specified letter.
464. Courts can enforce
B. Must make a book to keep together.
A. LLC
C. Must be made in writing to employees
and officials. B. Partnership
D. Must be made in writing and regis- C. Defense
tered with the competent official. D. Contracts

465. In case of breach of condition, the breach C. Either A or B

gives rise to: D. None of these

A. Claim for damages
471. Partnership Act
B. Rejection of goods
A. 1987
C. A right to repudiate the contract
B. 1985
D. A right of indemnification
C. 1932
466. Law can be classified into THREE (3) D. 1933
broad divisions which are
A. Public law, international law and crim- 472. The medieval compilations are the result
inal law of law produced directly by the State:
B. Public law, private law and interna- A. True
tional law B. False
C. Criminal law, constitutional law and in-
473. It was a convoy system of sea routes or-
ternational law
ganized by the Spanish Empire from 1566
D. International law, criminal law and to 1790, which linked Spain with its terri-
common law tories in the Americas across the Atlantic.
467. Powers of trustees are contained in sec- A. State of India
tion 134 of the Bankruptcy Act 1966 (Cth) B. Contracting House
and include powers such as selling the
C. West Indies Fleet
bankrupt’s property.
D. Manila Galleon
A. true
B. false 474. This historical period corresponds to the
values of modernity:progress, communica-
468. In the UCC 2-600s refers to what? tion and reason, confronted with those of
A. Formation of the contract the Ancient History:isolation and intellec-
tual obscurity
B. Content of the contract
A. True
C. Performance of the contract
B. False
D. Breach and remedies of the contract
475. Below is a systematic anatomy of an
469. In a contract of Indemnity there are agreement/contract, namely
A. 3 parties and one contract
A. 1. Title2. Head3. Comparison 4.
B. 2 parties and 2 contracts Cause/Basis 5. Conditions. Closing. Sig-
C. 3 parties and 3 contracts nature
D. 2 parties and one contract B. 1. Title 2. Head. Comparison 4.
Cause/Basis 5. Conditions. Closing
470. A contract of Guarantee is a agree- C. 1. Title. Comparison 3. Cause/Basis 4.
ment. Conditions. Closing. Signature
A. Bipartite Agreement D. 1. Title 2. Head 3. Comparison 4.
B. Tripartite Agreement Cause/Basis 5. Closing. Signature

E. 1. Title 2. Head. Comparison 4. Terms. C. formal to give something such as a ser-

Closing. Signature vice, a personal opinion or expression, or
a performance of a song or poem, etc. to
476. The owners in an LLC are called: people
D. to solve or end a problem or difficulty
E. to know someone or something be-
cause you have seen, heard or experi-
NARAYAN CHANGDER
enced them before
A. Members 480. For jointly owned houses or property

such as a vehicle, the trustee may:
B. Managers
C. Shareholders A. 1.) sell the property (or vehicle) and
take the bankrupt’s share of the value
D. Partners
Explanation:Owners in an LLC are called B. 2.) the co-owner or partner may ne-
Members. Managers can be members of gotiate with the trustee to buy out the
the LLC but are not required to be mem- bankrupt’s share
bers. Shareholders are owners of stock
in a corporation and partners are owners C. both 1.) and 2.)
of interest in partnerships. D. none of above
477. Which one of the following is rights of
partner 481. What is the partnership written agree-
ment known as?
A. Willing to write
A. Partnership Contract
B. Willing to read
C. Share profit B. Partnership Act
D. Willing to eat C. Agreement
478. Any action that does not comply with D. Partnership Deed
the regulations regarding a person’s abil-
ity What do you say about that? 482. A partner is one does not take part
A. void in the day to day running of the business.
B. void A. Active
C. Useless B. Sleeping
D. unenforceable
C. Secret
479. adjudicate D. Nominal
A. to act as judge in a competition or argu-
ment, or to make a formal decision about 483. Under the FCA rule, the buyer is respon-
something sible for export clearance.
B. to make people obey a law, or to make
A. True
cepted B. False

484. When a cheque is crossed with Two par- A. True

allel lines or with word ‘& Co.’ etc. this B. False
crossing is known as

A. general crossing 490. It is a standard rule that risk follows
B. special crossing A. Seller
C. restrictive crossing B. Buyer
D. Non-Negotiable crossing C. Possession
E. none of the above D. Ownership
485. When does an acceptance take effect in a 491. Commercial capitalism replaces feudalism
contract formed by post? and guild organisation
A. True
A. At the moment, it is posted.
B. False
B. When it is received by the offeror.
C. Upon confirmation by a notary public. 492. Are free items given in conjunction with
paid items apart of the total sale (i.e. gro-
D. After the expiration of a reasonable
cery bags given to customers to carry their
time.
groceries)
486. Sale of goods act was passed in the year A. Yes
A. 1940 B. No
B. 1930 C. It depends
C. 1997 D. none of above
D. 1960
493. Characteristics of mercantilism
487. An is one in which some of the terms A. Quest of a positive trade balance
are not expressed in words
B. It appears in countries with absolute
A. Oral contract monarchies
B. Verbal contract C. Linked politically to the emergence of
C. Written contract the nation-state
D. Implied contract D. International trade is a win-win game
488. The Prevention of Money Laundering Act, 494. A business organization that has some li-
2002 (PMLA) came into effect from ability protection for the owner is a(n)
A. 1-Jul-2005 A. Corporation
B. 1-Jul-2004 B. Partnership
C. 1-Jul-2006 C. LLC
D. None of the above D. Sole proprietorship
489. Lex mercatoria had its origin in the prob- 495. What is the bankruptcy threshold that
lem that civil law was not sufficiently re- applies to bankruptcy notices issued after
sponsive to the growing demands of com- January 2021?
merce A. $2, 000

B. $5, 000 to pass title without the consent of the

C. $10, 000 true owner.
D. $20, 000 B. A bona fide purchaser for value should

always get title.
496. arbitration clause- C. The loss should be divided between
A. binding international treaty provisions the two innocent parties in a way that is
just on the facts of any particular case.
B. recognizable pattern of previous con-
NARAYAN CHANGDER
duct between the parties of a more re- D. Neither party should have title to the
cent transaction from which a dispute has goods, and the goods should be requisi-
arisen tioned and sold by bailiffs at a public auc-
tion.
C. contract clause providing that any dis-
pute arising under the contract will be sub- 500. What is the limitation period of Mortgage
mitted to arbitration, in the place and ac-
cording to the laws and rules specified in A. 3 years
the clause B. 5 years
D. the principle under which countries C. 4 years
recognize and enforce each other’s legal D. 12 years
decrees
E. 10 years
497. Contract Act
501. The lien of an unpaid seller depends on
A. 1872
A. Title
B. 1873
B. Possession
C. 1994
D. 1990 502. Section 10 of Indian contract Act 1872
deals with
498. How to terminate an acceptance? A. Valid contract
A. Offeree sends acceptance letter to of- B. Void contract
feror
C. Voidable contract
B. Offeror sends notice to terminate an
acceptance before offeree receives ac- D. Illegal contract
ceptance letter
503. Which of the following cases illustrate an
C. Offeree send notice of termination be- invitation to treat?Select all that apply!
fore offeror receives acceptance letter
D. Offeror died or insane
499. In Ingram v Little (1961), Devlin LJ sug-

gested an alternative approach to deciding
which of the two innocent parties should
suffer for the fraud of a third. What was
it?
A. There should be no exceptions to nemo A. Carlil v Carbolic Smokeball Company
dat, i.e. a non-owner should never be able [1892] EWCA Civ 1.

B. Fisher v Bell [1961] 1 QB 394. C. it is a conditional order in writing

C. Partridge v Crittenden [1968] 2 All ER D. it orders the banker to pay a sum cer-

421 (QB). tain in money or on demand
D. Donoghue v Stevenson [1932] UKHL 508. What is the name given to a corporation
100. that is registered to do business in a state
E. Grainger Son v Gough (Surveyor of other than the one in which it was origi-
Taxes) [1896] AC 325 HL. nally incorporated?
504. an intermediary
A. mediator
B. agent
C. principal
D. subsidiary
A. Foreign corporation
505. recognize B. Domestic corporation
A. to give something such as a service, a C. Subsidiary corporation
personal opinion or expression, or a per-
formance of a song or poem, etc. to peo- D. Subchapter S corporation
ple Explanation:A foreign corporation is one
operating in a state other than the one
B. to make people obey a law, or to make in which it was originally incorporated. A
a particular situation happen or be ac- domestic corporation is one incorporated
cepted and operating in its state of incorpora-
C. to act as judge in a competition or tion. A subsidiary corporation is one that
argument, or to make a formal decision is owned and operated by a parent corpo-
about something ration. A subchapter S corporation is one
D. to know someone or something be- that has elected pass-through taxation by
cause you have seen, heard or experi- registering with the IRS.
enced them before 509. Which of the following cannot form a pro-
fessional service corporation:
506. The rights of the processor are the obli-
gations of the processee and vice versa
A. True
B. False
Explanation:Because a commercial pro-
cessing contract is a bilateral contract
(the definition of a bilateral contract is
specified in Clause 1, Article 406 of the
A. Attorneys
Civil Code 2015)
B. Paralegals
507. The following are the characteristics of a C. Doctors
cheque EXCEPT
D. Architects
A. it is drawn on a banker Explanation:Professional service corpora-
B. it is signed by the drawer tions are formed under special statutes

regarding the regulation and use of the delivery (in the aggregate) and (2) must
professional service corporate form by li- not be consumer goods immediately be-
censed professionals such as attorneys, fore delivery.
architects, engineers, public accountants C. Third, the transaction must not create
and doctors. Paralegals are not licensed a security interest that secures an obliga-
professionals under the statutes regulat- tion.
ing professional corporations.
D. All these requirements must be met
510. The first law came in to india by for a transaction to be a consignment un-
NARAYAN CHANGDER
A. Mahatma Gandhi der Article 9.
B. Jawaharlal Nehru 514. In Moorgate Mercantile Co Ltd v Twitch-

C. Ambeder ings, was the defendant able to establish
estoppel by negligence?
D. British East India Company
A. No, because Moorgate did not owe
511. An offer which can be accepted by anyone a duty of care to register hire purchase
is called agreements.
A. Cross offer B. No, because Twitchings could not
prove causation,
B. General offer
C. Yes, Moorgate owed a duty of care
512. It is a set of political and economic ideas and the defendant was able to establish
that developed between the 16th and breach and causation.
18th centuries in Europe. It consisted of
D. No, because Twitchings was able to es-
strong state intervention in the economy,
tablish estoppel by representation
and developed during monarchical abso-
lutism 515. What is the main objective of the OECD in
A. Communism promoting economic cooperation and regu-
lating international commercial relations?
B. Mercantilism
A. To promote unfair trade practices
C. Capitalism
B. To cause economic instability
D. Feudalism
C. To foster global economic growth
513. Choose all that apply concerning consign-
D. To discourage international trade
ments.
A. First, for the parties, there must be a 516. Wager means
person who delivers goods to a merchant A. Contingent
for sale. That merchant must be one that
B. Betting
(1) deals in goods of that kind under a
name other than the name of the person C. Illegal
making the delivery, (2) is not an auction- D. Valid
eer, and (3) is not generally known by its
creditors to be substantially engaged in 517. What is the definition of law?
selling the goods of others. A. A set of rules which are enforced by
B. Second, to be a qualifying consign- the law
ment, each delivery of goods both (1) must B. A set of rules which are enforced by
be worth $1, 000 or more at the time of the state

C. A set of rules which are enforced by B. Unlimited for the debts of the partner-
the authorities ship.

D. A set of rules which are enforced by C. Limited to the amount of their invest-
the country ment, unless they have agreed to be liable
for more.
518. What are the effects of legal acts with
D. Unlimited for the debts of the partner-
illegal conditions?
ship, unless they have agreed to be liable
A. complete for less.
B. Void
522. Terms of offer must be
C. void
A. Certain
D. incomplete
B. Vague
519. What is the definition of an offer? C. Indefinite
D. Ambiguous
523. Can a minor becomes an agent?

A. Yes because a minor can enter into a
contract
B. No because he still a minor
C. Yes. A minor will be responsible for his
A. An expression of willingness to negoti- act
ate. D. Yes. A minor will not be responsible
B. A declaration that one party will con- for his act
tract with another.
524. Sale under sale of goods Act is a/an
C. Expression of willingness to contract Contract
with the party to whom it is addressed, as
A. Executory
soon as the latter accepts its terms.
B. Executable
D. An invitation for other parties to con-
sider whether they are able to purchase C. Executed
the goods/services. D. None of the above
520. Contract defines under section 525. Early Modern period coincides with
A. 2(e) A. The emergence of absolute monar-
B. 2(f) chies
C. 2(h) B. The emergence of feudalism
D. 2(g) C. The emergence of dictatorhips

D. The emergence of slavery
521. The liability of a partner in a general part-
nership is: 526. What is the action that is considered le-
A. Limited to the amount of their invest- gal?
ment A. dance

B. Chemistry test in the science room 532. “Subject to this Act, where goods are
C. Meet in a restaurant sold by a person who is not their owner,
and who does not sell them under the au-
D. Shopping in department stores thority or with the consent of the owner,
the buyer acquires no better title to the
527. A valid contract requires each party to
goods than the seller had, unless the
give something up which is called
owner of the goods is by his conduct pre-
A. consideration cluded from denying the seller’s author-
ity to sell.” Where can this statement be
NARAYAN CHANGDER
B. capacity
found?
528. As per Section 182 of the Contract Act,
A. s.21 Sale of Goods Act 1979
an agent is one
B. s.9 Consumer Rights Act 2015
A. Who is employed by another
C. s.1 Factors Act 1889
B. To do any act for another
D. s.8 Hire Purchase Act 1964
C. To represent another in dealing with
third person 533. Below is a legal reference source that reg-
D. All the above ulates Engagement Law, namely
A. Article 1314 of the Civil Code and the
529. Quasi contract means
1945 Constitution
A. Similar to real contract
B. Article 1319 of the Civil Code and the
B. Dissimilar 1945 Constitution
C. Invalid contract C. Article 1317 of the Civil Code and the
D. Illegal contract 1945 Constitution
D. Article 1316 of the Civil Code and the
530. There are a number of situation in which 1945 Constitution
a case can be brought before a Norwegian
court, even if the defendant is not in E. Article 1315 of the Civil Code and the
Norway. 1945 Constitution
A. person 534. The plaintiff who always has the choice
B. resident of where to file the lawsuit, may shop for
the most forum, a technique known as
C. they inhabit forum shopping.(?)
D. none of above A. international
531. According to section 71 of the Contract B. conventional
Act, a person who finds goods belonging C. advantageous
to another and takes them into his custody,
is subject to the same responsibility as a D. none of above
535. According to Law no. 1 of 1995 is a busi-

A. baths ness entity that is a legal entity?
B. Bailee A. CV
C. Surety B. UD
D. Pawnor C. Business

D. PT 541. a document of title evidencing the receipt

of goods for shipment issued by a person
E. Cooperative
engaged in the business of directly or indi-

536. The foundation of a contract is rectly transporting or forwarding goods
A. Valid contract A. Warehouse Receipt

B. Bill of Lading
B. Agreement
C. Invoice
537. Which Act applies to bankruptcies in Aus- D. none of above
tralia?
A. Bankruptcy and Insolvency Act 1976 542. When forming a partnership between 2
or more individuals, which of the follow-
B. Bankruptcy Act 1966 ing is required:
C. The Bankrupts Act 1969
D. Bankruptcy Act 1967
538. Conjunction:
A. to connect or fasten things together
B. using connecting words to show the in-
terrelationship of a previously stated idea A. The partnership must obtain a federal
with a new one (e.g. consequently, in so employer identification number from the
doing) IRS
C. replacing a word mentioned previously B. The partners must enter into a written
with another, usually more general one partnership agreement
(e.g. such things C. The partners must file the appropriate
D. use of a source of information in order charter or formation document with the
to ascertain something. state in which they form
D. The partnership must open a bank ac-
539. Lien means count
A. A charge Explanation:The partnership will need to
obtain a federal employer identification
B. A particular status from the IRS in order to file appropriate
C. A guarantee tax returns. Although it is best business
practice, the model act does not require
D. A legal claim to hold property as secu-
partners to enter into partnership agree-
rity
ment or require the partnership to open a
540. Paying assessment service charges and bank account. There is no formal charter
other reasonable expenses is: document required to form a partnership.
A. Customer’s obligation 543. DOMESTIC MARKET IS

B. Trader’s obligation A. a branch of the law that deals with the
relations between individuals or institu-
C. Customer’s right
D. Trader’s right and the state

B. the number of customers who buy or B. Sale of goods act 1957

may buy products and services offered by C. Contracts Act 1950
companies within their own country
D. Agency Act 1950
C. the law of relations between individu-
als and the state 549. Who is a person whose ability to exer-
D. a formally concluded and ratified cise their rights is curtailed or restricted
agreement between states. by law?
NARAYAN CHANGDER
A. minor
544. Under hire purchase system the initial
payment is known as B. old people
A. First instalment C. amputee
B. Down payment D. sick person
C. Purchase price 550. Under the EXW rule, the seller is respon-
D. Hire charges sible for loading the goods onto a vehicle.
545. Indeminity and Grantee Example A. True
A. Buyer and seller B. False

B. Contractor and contractee 551. A check is a(n)
C. Insurer and Insrance company A. intention to pay
D. Debtor and Creditor B. promise to pay
546. Which statement is INCORRECT? C. order to pay
A. A limited partnership requires two or D. none of above
more persons to do business
552. What is a hire purchase agreement or con-
B. An ordinary partnership requires two tract?
or more persons to do business
C. A limited liability partnership requires
two or more persons to do business
547. If the offeror mails an offer to the of-

feree, and the offeree faxes the accep-
tance, when will the offer go into affect?
A. When offered
B. When received
C. When sent
D. When written
548. What is the law governs law of agency A. A hire purchase agreement is an
in Malaysia? agreemnet between a hire person and an
A. Agency Act 1961 average person

B. A hire purchase agreement is an 556. What is one prohibition that a depositor

agreement between an owner and a hirer is prohibited from keeping?

C. A hire purchase agreement is an A. It is forbidden to arbitrarily use de-
agreement between two people who are posited assets.
friends
B. Do not take deposited property for out-
D. none of above siders to maintain.
553. Types of principal C. Do not return deposited property to an-
A. General principles other person.
B. Disclosed principal D. All correct.
C. Special principal
557. On the threshold of the 16th century,
D. Universal principal absolute monarchies supported the bour-
geoisie
554. Which is not a feature of a partnership
business? A. True
A. Easy Formation B. False
B. Mutual Agency
558. Sylvester bought a new laptop in Vi-
C. Limited Liability vacity Megamall, Kuching. The laptop’s
D. Two or more person charger, however, was not working prop-
erly. The seller said it was Sylvester’s
555. In the case of computer software, is it
fault because he exposed the charger to
typically considered “goods” under the
the sun. Sylvester wished to bring a claim
Sale of Goods Act?
against the seller. The correct law to be
A. Yes, always applied in this case would be:
B. No, never A. Sale of Goods Act 1957
C. It depends on the physical form and
B. Sales of Goods Act 1979 (UK)
the context of the sale
C. Contracts Act 1950
D. Software is covered by a separate le-
gal framework D. Civil Law Act 1956

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PRACTICE BOOK» NOT FOR SALE

DESIGNED FOR SURE SUCCESS

JAI SHREE RAM

PRACTICE BOOK» NOT FOR SALE

It is my deepest gratitude and warmest

To my mother JOYTSNA CHANGDER

who has been a constant source of Knowledge and in-

The aim of this publication is to sup-

PRACTICE BOOK» NOT FOR SALE

B. which is created by statute in favor of 10. uniform rules-

PRACTICE BOOK» NOT FOR SALE

6. C 7. A 8. C 9. B 10. C 11. B 12. C 13. A 14. A

A. Free trade C. Public Law

A. True C. Continues in the pawnor

B. False D. None of the above

D. When the buyer has consent from the A. Astrolabe

PRACTICE BOOK» NOT FOR SALE

26. C 27. D 28. B 29. C 30. B 31. D 32. D 33. C 34. B

34. Novation means B. False

B. lawyer’s office D. To assign his right, title and interest

PRACTICE BOOK» NOT FOR SALE

B. body of legal principles that govern B. Born on March 31, 1997

45. C 46. D 47. A 48. C 49. B 50. D 51. B 52. D 53. E

E. to make something happen or begin, A. Venetian laws

A. Always 58. An agreement made without consideration

C. For necessities like food, clothing, and B. voidable

64. Which of the following is NOT included in C. Italian city-states

PRACTICE BOOK» NOT FOR SALE

65. C 66. B 67. A 68. C 69. D 70. A 71. A 72. B 73. C

76. substitution C. Transaction

77. Contract is a C. Natural person and juristic person

74. C 75. A 76. C 77. A 78. A 79. B 80. D 81. C 82. A

PRACTICE BOOK» NOT FOR SALE

B. Not timely filing tax returns A. Exploitation of consumer

C. Owners commingling corporate funds B. Welfare of consumer

B. Creditor B. English Law, Federal Constitution and

83. C 84. D 85. D 86. A 87. B 88. A 89. D 90. A

C. a court of law or judicial tribunal B. 1961

92. Under what circumstance can coins and

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PRACTICE BOOK» NOT FOR SALE

B. Exemplary Damages 103. A written order used primarily in interna-

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B. shareholders A. Trial of residence

PRACTICE BOOK» NOT FOR SALE

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135. Abbreviation for CV in business is C. Mercantilism

PRACTICE BOOK» NOT FOR SALE

C. Virma Sponsor 141. Characteristics of Lex Mercatoria:

140. Modern economic thought

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B. Partnership 150. Ivan worked as driver for Lucas. Ivan

D. Parties did not bankrupt C. Not sure

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PRACTICE BOOK» NOT FOR SALE

C. is the international organization C. Offering

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163. An offer which is expressed by conduct is A. businessmen-satisfy all the conditions-

B. Implied Offer B. traders-satisfy all the conditions-are

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