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This set of Business Regulations Multiple Choice Questions & Answers (MCQs) focuses on Sales of Goods ACT 1930 Set 1
Q1 | An unpaid seller loses his right of lien in case of
- delivery of goods to buyer
- delivery of goods to carrier or wharfinger
- tender of price by buyer
- any of the above
Q2 | An unpaid seller can exercise his right of stoppage of goods in transit
- by giving notice to the carrier
- by taking actual possession of the goods
- by notice of his claim to the bailee who is in possession of the goods
- either (a) or (b) or (c)
Q3 | Auction sale is also known as
- public sale
- private sale
- cash sale
- none of the above
Q4 | Where the seller appoints his person to bid at the auction sale without informing to bidder, itis called as
- prepared bidding
- pretend bidding
- power bidding
- both (a) & (c)
Q5 | In contract through sea route, where the seller has to put the goods on board a ship at hisown expenses, the contract is known as
- cif contract
- fob contract
- board obligatory contract
- ex-ship contract
Q6 | In a contract through sea route where the seller has to deliver the goods to the buyer at theport of destination
- fob contract
- cif contract
- ex-ship contract
- destination contract
Q7 | The remedies available to a person, suffering from the breach of contract are
- suit for damages
- suit for injunction
- quantum meruit
- all of the above
Q8 | Where the court orders the defaulting party to carry out the promise according to the termsof the contract, it is called as a/an
- quantum meruit
- rescission
- injunction
- specific performance
Q9 | _________ means an order of the court restraining a person from doing what he promisednot to do
- quantum meruit
- rescission
- specific performance
- injunction
Q10 | Quantum meruit means
- a non-gratuitous promise
- as gratuitous promise
- as much as is earned
- as much as is paid
Q11 | Hadley versus Baxendale case is a leading case on
- the breach of implied term
- the anticipatory breach
- the remoteness of damages
- the bilateral mistake of fact
Q12 | Exemplary damage is also known as
- a vindictive damage
- a punitive damage
- a direct damage
- either (a) or (b)
Q13 | Vindictive damages have been awarded
- for a breach of the promise to marry
- for a wrongful dishonour of a cheque
- either (a) or (b)
- neither (a) nor (b)
Q14 | Liquidated damages means an amount of the _________ that may result from the breach ofcontract
- actual loss
- loss suffered
- pre-estimated probable loss
- pre-estimated actual loss
Q15 | A stipulation for increased interest from the date of default is known as
- a compensation
- a penalty
- liquidated damages
- damages
Q16 | A quasi-contract
- is a contract
- is an agreement
- has only a legal obligation
- is not any of these
Q17 | Claim for necessaries supplied to a person incompetent to contract, from the property ofsuch person. It is covered under the concept of
- quasi-contract
- caveat emptor
- contingent contract
- wagering agreement
Q18 | A finder of goods
- a person who finds the goods belonging to another
- a person who returns any goods to the owner
- a person who finds the goods belonging to another and takes them into his custody
- any of the above
Q19 | A contract in which one person promises to compensate the other for the loss suffered byhim, due to the conduct of the promisor or of any other person, is known as
- contract of indemnity
- quasi-contract
- contract of guarantee
- none of these
Q20 | The party who gives the indemnity is known as
- the indemnity-holder
- the indemnifier
- the surety
- the principal debtor
Q21 | A contract in which a person promises to discharge the liability of another person, in case ofdefault by such person, is known as a
- quasi-contract
- contract of indemnity
- contract of guarantee
- none of the above
Q22 | In a contract of guarantee, a person who promises to discharge another’s liability is knownas
- the principal debtor
- the creditor
- the indemnified
- the surety
Q23 | Liability of the surety is
- coextensive with the principal debtor
- primary with the principal debtor
- secondary to the principal debtor
- all of these
Q24 | A surety is discharged from the liability by
- revocation notice by surety
- material alteration in terms
- discharge of principal by the creditor
- all of the above
Q25 | The delivery of goods by one person to another for some specific purpose is known as a
- bailment
- pledge
- pledge
- mortgage