SIKKIM MANIPAL UNIVERSITY -DDE BBA 301- Legal and Regulatory Framework-4 credits (Book Id- B1595) Model

question paper Duration: 2hrs Total Marks: 140

_________________________________________________________________________ Part A- One Mark Questions (1-50) 1*50=50 Marks

1. _________ source of law is usually a constitutional process by which a legal rule comes into existence. a. Material b. Formal c. Legal d. Historical

2. A contract that can be nullified at the option of an authorised party is called a _________ contract. a. Unenforceable b. Valid c. Voidable d. Unlawful

3. A____________ is a mercantile agent who is given a general right of lien on the goods entrusted to him for selling. a. Factor b. Banker c. Broker d. Auctioneer

4. The contract in which the property in the goods is transferred from the seller to the buyer, is called _____________. 1

a. Agreement to sell b. Sale c. Warranty d. Wharfinger's Certificate

5. The person who promises to pay the amount stated in a promissory note is the ____________. a. Payee b. Endorser c. Drawer d. Endorsee

6. The contract entered into between the partners, based on which the firm is founded, is called as _________. a. Executed contract b. Partnership deed c. Sale deed d. Quasi contract

7. Which among the following categories of company is required to file an application with stock exchange? a. Government company b. Foreign company c. Unlisted company d. Listed company

8. According to the consumer protection act which of the following is true? a. The consumer should go to the court of law b. Speedy and simple redressal of the consumers complaints. c. Appoint a lawyer to represent him/her and fight the case d. Follow the rules and undergo long drawn out procedures 2

9. Which of the following Act was formulated in order to be compatible with the proliberalisation economic policies of the Indian government? a. Indian Contract Act b. Foreign Exchange Management Act c. Sale of Goods Act d. Negotiable Instruments Act

10. Which of the following Act has been promulgated to make trade and business free of governmental control and protection? a. Indian Contract Act b. Foreign Exchange Management Act c. The Competition Act d. Negotiable Instruments Act

11.

The

Environmental

Protection

Act

(EPA),

1986

mentions

rules

___________________________________. a. Relating to consumer rights b. Relating to foreign exchange transactions c. Relating to trading d. Relating to batteries

12. Which of the following is defined as a statutory privilege granted by the government to inventors and to other persons deriving their rights from the inventor? a. Copyright b. Trademark c. Patent d. Invention

13. Which of the following act deals with laws of transfer of data through electronic means of communication? 3

a. Industries (Development and Regulation) Act b. Sales of Goods Act c. Information Technology Act d. The Indian Contract Act

14. _____________________ is a very important aspect of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. a. Cluster development b. Delivery c. Goods d. Price

15. Which of the following laws deals with the relationship between the employer and employees?" a. Statutory law b. Commercial law c. Labour law d. Corporate law

16. _________

act is a voluntary organisation of workers pertaining to a particular

trade, industry or a company. a. Factories b. Industrial employment c. Industrial disputes d. Trade union

17. Which of the following contract is a promise to do or not to do something in case of a contingency? a. Express contract b. Executory contract c. Wagering contract 4

d. Contingent contract

18. According to which of the following right agent has the rights to retain the goods, paper and property until the amount due to him for commission has been paid? a. Right to be indemnified against consequences of lawful acts b. Right to receive remuneration c. Right of lien d. Right of retainer

19. Which of the following goods are identified and agreed upon at the time a contract of sale is made? a. Specific goods b. Generic goods c. Future goods d. Contingent goods

20. ______________ is one on which two parallel transverse lines with or without the words & Co. are drawn. a. Cross cheque b. Open cheque c. Promissory note d. Hundi

21. The persons who have entered into a partnership with one another are collectively called as ______________. a. Partners b. Business c. Firm d. Unit of business

22. ________ is that part of nominal value of issued capital which has been called up or demanded by the company. a. Called up capital b. Paid up capital c. Reserve capital d. Subscribed capital

23. Which of the right includes the right to basic goods and services? a. Right to safety b. Right to choose c. Right to be informed d. Right to be heard

24. The head-office of FEMA is known as ____________________. a. National Commission b. District Forum c. Central Consumer Protection Council d. Enforcement Directorate

25. Which of the following Act was introduced after the Bhopal Gas Tragedy? a. Indian Contract Act b. Foreign Exchange Management Act c. The Environmental Protection Act d. Negotiable Instruments Act

26. The Parliament enacted the ______________________, replacing the Trade and Merchandise Marks Act 1958. a. Customs Act, 1962 b. Foreign Exchange Management Act, 1999 c. Trade Marks Act, 1999 d. The Competition Act, 2002 6

27. Which of the following agreement has been in force since 1995 and to date is the most comprehensive multilateral agreement on intellectual property? a. Bilateral investment treaty (BIT) b. Trade and Investment Framework Agreement (or TIFA) c. Trade-Related Aspects of Intellectual Property Rights agreement d. Preferential trade area

28. Identify the person in whose name the Digital Signature Certificate is issued. a. Controller b. Addressee c. Certifying authority d. Subscriber

29. The cost of ____________________ should be excluded while calculating the extent of investment in an enterprise. a. Import duty b. Installation of plant and machinery c. Shipping charges d. Value added tax

30. Which of the following means failure of the employer to give employment to a workman due to shortage of raw material or the break-down of machinery? a. Retrenchments b. Lock-out c. Lay-off d. Muster Roll

31. Which of the following sources of Indian business laws contains all laws enacted to facilitate, regulate or clarify the process of governance? a. English mercantile law b. Statutory law 7

c. Judicial decisions d. Customs and usages

32. According to which of the following modes of termination agency is automatically terminated when the business of agency is completed? a. By performance of contract of agency b. By agreement and mutual consent c.By revocation of authority by the Principal d. By renunciation by the Agent by giving reasonable notice

33. Which of the following is an essential element for a bill of exchange? a. It requires three parties. b. It may be payable on demand, after a definite period of time. c. It cannot be made payable to bearer on demand. d. It is always drawn on a specified banker.

34. Which among the following types of preference shares gives a right to a fixed percentage of dividend or profit each year? a. Participating b. Irredeemable c. Redeemable d. Non-cumulative

35. Which of the following is a salient feature of FEMA ? a. A contract of sale may be absolute or conditional b. An agreement to sell becomes a sale when the time elapses c. It allows and regulates the setting up of branches or offices by foreign companies in India. d. A negotiable instrument is freely transferable

36. Which of the following is an offences under FEMA? 8

a. Limit up to which any person may possess foreign currency or foreign coins b. Non-repatriation of the proceeds of the exported goods c. Acquisition or transfer of immovable property in India d. Giving guarantee or surety in respect of any debt obligation

37. Which of the following is a salient feature of Trade Mark Act, 1999? a. Combinations regulation b. Abuse of dominance c. Anti - competition agreements d. Multi class applications are allowed in India.

38. Which of the following Act is not enforced in States/Union Territories of Arunachal Pradesh, Mizoram, Nagaland, Sikkim, Daman and Diu, and Lakshadweep? a. Factories Act, 1948 b. Industrial Dispute Act, 1947 c. Information Technology Act, 2000 d. Workmen Compensations Act, 1923

39.

The

Competition

Act,

2002

is

more

market

oriented

than

the

_____________________________. a. The Trade Unions Act, 1926 b. Industrial Disputes Act, 1947 c. MRTP Act, 1969 d. Foreign Exchange Regulation Act, 1973

40. The headquarters of FEMA is in ________________. a. Jalandhar b. Calcutta c. Bombay d. New Delhi

41. When one or all the parties cancel the contract, it is called _________. a. Remission b. Rescission c. Waiver d. Alteration

42. Every person possessing the facility for collection, treatment or storage of the waste, should seek authorisation from the which of the following? a. District Forum b. Central Consumer Protection Council c. Competition Commission of India d. State Pollution Control Board

43. The ______________ is a right of unpaid seller. a. Right of lien b. Right to repudiate c. Right to examine d. Right to reject the goods

44. Which of the following is the usual mode of discharges of an instrument? a. By party primarily liable becoming holder b. By payment in due course c. By release d. By cancellation

45. Which among the following types of partners does not has unlimited liability? a. Active partners b. Minor Partners c. Dormant partners d. Special partners

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46. ________ is the first meeting of the shareholders of a public company and is held only once in the life time of a company. a. Statutory meeting b. Annual general meeting c. Extraordinary general meeting d. Board meeting

47. The disqualification of members of the District Forum can take place if ______________________. a. He is more than 35 years of age b. He is declared solvent c. He has been government servant d. He has been convicted or sent to imprisonment for a crime

48.

The

Competition

Commission

of

India

is

the

successor

to

the

_______________________. a. National Commission b. MRTP Commission c. State Commission d. Consumer Council

49. Which among the following is one of the notable offices that has been set up for promoting various MSMEs? a. National Commission on Enterprises in the Unorganised Sector (NCEUS) b. District Industry Centres (DICs) c. State Financial Corporations (SFCs) d. Non-governmental organisation (NGO)

50. Who are given the responsibility of mediating and promoting the settlement of industrial disputes? a. Occupiers 11

b. Conciliation officers c. Controllers d. Deputy controllers Part B 2 MARK QUESTIONS (51-75) 51. A _________ or _________ state legislature. a. Law , Act b. Rules, regulations c. Law , rules d. Act, regulation

2*25 = 50 Marks

is a bill passed by both houses of parliament or the

52. Which of the following options are the types of breach of contract ? 1. Express 2. Implied 3. Merge 4. Insolvency a. Option 1 & 2 b. Option 3 & 4 c. Option 1 & 4 d. Option 2 & 3

53. Which of these following are the general rights and duties of the Principal? 1. To pay remuneration to the agent. 2. To act according to directions or custom of trade. 3. To receive any extra profit made by the agent. 4. To render accounts. a. Option 2 & 4 b. Option 1 & 3 c. Option 1 & 4 d. Option 2 & 3 12

54. Which of the following are the aspects related to the performance of a contract of sale? 1. Effect of part delivery 2. The passing of the risk 3. Delivery of wrong quantity 4. The transfer of property in the goods

a. Options 1 & 3 b. Options 2 & 3 c. Options 1 & 4 d. Options 2 & 4

55. Which of the following are modes of discharge of an instrument? 1. By express waiver 2. By discharge as a simple contract 3. By allowing drawee more than 48 hours 4. By non-presentment of cheque a. Option 1 & 2 b. Option 3 & 4 c. Option 1 & 4 d. Option 2 & 3

56. Which of the following are features of partnership? 1. Existence of business 2. Protection of interest of each partner 3. Contractual relationship 4. Flexibility in operations a. Option 1 & 2 b. Option 2 & 3 c. Option 1 & 3 d. Option 3 & 4 13

57. Consider the below mentioned statements: 1. Equity share holders receive dividend out of profits after preference shares have been paid their fixed dividend. 2. Equity shares are entitled to a fixed rate of dividend. State True or False: a. 1-False, 2-False b. 1-True, 2-False c. 1-True, 2-True d. 1-False, 2-True

58. Which of the following is present at the central level? a. State Consumer Disputes Redressal Commission b. District Consumer Protection Council c. National Commission d. District Forum

59. Which of the following are functions of the Directorate? 1. To realise the penalties imposed in departmental adjudication 2. To ensure that all the rights of consumers are protected 3. To conduct searches of suspected persons, conveyances and premises for seizing incriminating materials 4. To seek redressal against unfair trade practices

a. Options 1 & 4 b. Options 2 & 3 c. Options 1 & 3 d. Options 2 & 4

60. Which of the following is an objective of vertical agreements? 1. Tie-in sales 14

2. Fix (determine) prices 3. Exclusive supply or distribution 4. Allocate areas or customers

a. Options 1 & 4 b. Options 2 & 3 c. Options 1 & 3 d. Options 2 & 4

61. Which of the following powers the central government has as per the Environmental Protection Act? 1. Prohibition and restrictions of location of industries 2. Prohibition of anti-competitive agreements 3. Laying of the procedures and safeguards for handling of hazardous substances. 4. Prohibit abuse of dominant position through unfair and discriminatory prices restricting production

a. Options 1 & 4 b. Options 2 & 3 c. Options 1 & 3 d. Options 2 & 4

62. The Intellectual Property Act gives which of the following rights to the person? 1. Make copies of the film 2. To make a film or record in respect of copyrighted right 3. To communicate the film to the public by any means of broadcasting 4. To make a film or record in respect of copyrighted right

a. Options 1 & 4 b. Options 2 & 3 c. Options 1 & 3 15

d. Options 2 & 4

63. In which of the following options a computer is used to attack other computers? 1. Hacking 2. IPR violations 3. Virus/worm attacks 4. EFT frauds

a. Options 1 & 4 b. Options 2 & 3 c. Options 1 & 3 d. Options 2 & 4

64. Which among the following are the main objectives of Reservation Policy? 1. Ensuring increased production of consumer goods in the small scale sector. 2. Extending the loan limit 3. Expanding employment opportunities through setting up of small scale industries. 4. Reducing interest rates for borrowing by micro enterprises.

a. Options 1 & 3 b. Options 2 & 3 c. Options 1 & 4 d. Options 2 & 4

65. Consider the below mentioned statements: 1. The Trade Union Act, 1926 tries to settle down any type of dispute between the employer and employee, employer and employer, employee and employee. 2. The Board of Conciliation consists of a Chairman and two or four other members, as the appropriate government may think fit. State True or False:

16

a. 1-False, 2-False b. 1-True, 2-True c. 1-True, 2-False d. 1-False, 2-True

66. Consider the below mentioned statements. 1. Promise can be one sided. 2. Only a mutual promise forming consideration for each other is an agreement. State True or False: a. 1-True, 2-True b. 1-False, 2-False c. 1-True, 2-False d. 1-False, 2-True

67. Consider the below mentioned statements. 1. An unregistered firm cannot take any legal action against third parties to recover its dues. 2. A third party can file a suit against the firm for the recovery of dues even if the firm is unregistered. State True or False: a. 1-True, 2-True b. 1-False, 2-False c. 1-True, 2-False d. 1-False, 2-True

68. Consider the following statements: 1. The authorisation granted can be revoked by the RBI on the grounds of public interest. 2. RBI can impose any restrictions on the withdrawal of foreign exchange for payments due on account of loans or depreciation of direct investments, in the ordinary course of business. State True or False: 17

a. 1-False, 2-False b. 1-True, 2-True c. 1-True, 2-False d. 1-False, 2-True

69. Which of the following is true with respect to the Competition Act, 2002? 1. Penalties for offences 2. Proactive and flexible 3. No penalties for offences 4. Reactive and rigid a. Options 1 & 2 b. Options 2 & 3 c. Options 1 & 4 d. Options 2 & 4

70. Which of the following are the main objectives of the Factories Act, 1948? 1. To secure the safety of the person. 2. To safeguarding consumers against various types of exploitations. 3. To make trade and business free of governmental control and protection 4. To protect the environment. a. Options 1 & 3 b. Options 2 & 3 c. Options 1 & 4 d. Options 3 & 4

71. Which of the following are the responsibilities of Central Board of Direct Taxes (CBDT) ? 1. Providing essential inputs for policy and planning of direct taxes in India. 2. Imposes a duty of excise on goods manufactured or produced in India. 3. Maintain confidence in the financial system. 18

4. Administration of direct tax laws through the Income tax department. a. Option 1 & 2 b. Option 2 & 3 c. Option 3 & 4 d. Option 1 & 4

72. Consider the below mentioned statements: 1. The Consumer Protection Act relies on compensatory rather than punitive or preventive approach. 2. The Consumer Protection Act applies to only exempted goods and services. State True or False: a. 1-True, 2-True b. 1-False, 2-True c. 1-False, 2-False d. 1-True, 2-False

73. Match the following sets: Part A 1. MRTP Act, 1969 2. Competition Act, 2002 3. Salient features of the Competition Act, 2002 4. Remedies for restoring competition

Part B A. Based on the post liberalisation scenario B. Passing cease and desist order C. Abuse of dominance D. Based on the pre liberalisation scenario

a. 1D, 2A, 3C, 4B b. 1A, 2C, 3D, 4B 19

c. 1B, 2D, 3A, 4C d. 1C, 2A, 3B, 4D

74.

Term

loans

are

provided

by

______________________

and

________________________. a. State Financial Corporations (SFCs), Scheduled Banks b. Small Industries Development Bank of India (SIDBI), Scheduled Banks c. National Small Industries Corporation, State Financial Corporations (SFCs) d. National Small Industries Corporation, Scheduled Banks

75. Which of the following are advantages of copyright registration? 1. By registering the copyright work, a public record of the work and a concrete proof of the ownership are established. 2. To reproduce the work in any material form, even in the electronic medium. 3. If someone copies your work, you can sue them for copyright infringement. 4. To perform the work in public. a. Options 1 & 3 b. Options 2 & 3 c. Options 1 & 4 d. Options 2 & 4

Part C Answer all the Questions 4*10=40 Marks

76. Explain in detail the major commercial and corporate laws prevailing in India. 77. Write a note on the incorporation of the company. 78. Distinguish between MRTP Act, 1969 and Competition Act, 2002. 79. Copy right is an important part of IPR. Explain the definition of copyright and the rights of the owner.

20