209 + Mcqs in Fundamentals of Laws and Ethics Page 3 McqOptions

101.	Any person who supplies false information to the Registrar of firms, shall be liable to punishment with imprisonment upto
A.	Three months
B.	Six months
C.	Nine months
D.	Twelve months
Answer» B. Six months

Discussion

102.	In a Book depot a catalogue of book enlisting the price of each book and specifying the place where the particular book is available is
A.	An invitation to offer
B.	An offer
C.	An invitation to visit the book shop
D.	None of these
Answer» B. An offer

Discussion

103.	As per the provisions of section 93, when a cheque is dishonoured by non-acceptance or non-payment the holder
A.	may or may not give notice to the parties whom the holder seeks to make liable thereon
B.	must give notice to the parties whom the holder seeks to make liable
C.	must give notice to the parties whom the holder seeks to make liable, but after noting
D.	must not give any notice to anyone
Answer» C. must give notice to the parties whom the holder seeks to make liable, but after noting

Discussion

104.	The particulars of the accident should be entered in separate registers kept as Accident Book From for ESI office.
A.	From No 14
B.	From No 15
C.	From No 21
D.	From No 20
Answer» C. From No 21

Discussion

105.	When the contract is perfectly valid in its substance but which cannot be enforced because of certain technical defects. This is called a
A.	Unilateral contract
B.	Bilateral contract
C.	Unenforceable contract
D.	Void contract
Answer» D. Void contract

Discussion

106.	The employment of young person on dangerous machines shall be prohibited the section . . of Factories Act1947.
A.	Section 21
B.	Section 22
C.	Section 23
D.	Section 24
Answer» D. Section 24

Discussion

107.	An accident report shall be confirmed by the manager by sending a separate report in Form No. . with details of number of person killed or injured to the inspector of factory.
A.	12
B.	14
C.	16
D.	18
Answer» E.

Discussion

108.	In case of employee covered under the ESI, the accident report shall be sent in Form No. .. to Local office of the ESI to which the company attached
A.	Form No. 18
B.	Form No. 18A
C.	Form No. 25
D.	Form No. 16
Answer» E.

Discussion

109.	Employee's State Insurance Act, . is a pioneering measure in the field of social insurance of our country.
A.	1948
B.	1950
C.	1952
D.	1954
Answer» B. 1950

Discussion

110.	Where or more workers are employed in a factory, then there shall be a Safety Committee in the factory.
A.	100 or more workers
B.	150 more workers
C.	200 or more workers
D.	250 or more workers
Answer» E.

Discussion

111.	If the factory employees more than 1000 workers, they should appoint qualified .. to carry out the prescribed duties
A.	Safety Officer
B.	Welfare Officer
C.	Security Officer
D.	None of these
Answer» B. Welfare Officer

Discussion

112.	As per the child labour (prohibition & regulation) Act1986, child means a person who has not completed his
A.	11 years
B.	12 years
C.	13 years
D.	14 years
Answer» E.

Discussion

113.	Government has placed certain awards like Indira Gandhi Paryavaran Puruskar; the Indira Gandhi Priyadarshini Award for those individuals who carry on . in India.
A.	Profitable business
B.	Ethical business
C.	Good corporate governance
D.	All of above
Answer» C. Good corporate governance

Discussion

114.	Where under a contract of sale the property in goods is to be transferred at a future time, the contract is called.
A.	an agreement to sell
B.	a sale
C.	neither 'a' nor 'b'
D.	both 'a' and 'b'
Answer» B. a sale

Discussion

115.	The provision for cooling water during hot weather should be made by the organization if it employees or more employees.
A.	200
B.	250
C.	300
D.	150
Answer» C. 300

Discussion

116.	A person who is not an Indian citizen is an Alien. Contracts with an alien friend, subject to certain restrictions are
A.	Void
B.	Unenforceable
C.	Valid
D.	Invalid
Answer» D. Invalid

Discussion

117.	Upon dissolution of firm, losses, including deficiencies of Capital, shall be paid first out of Profits and then out of Capital and finally
A.	Out of Profits
B.	Out of Capital
C.	By the partners individually in their profit sharing ratio
D.	By the partners equally
Answer» D. By the partners equally

Discussion

118.	When a person signifies his assent to a proposal made to him to refrain from doing something, the resultant transaction is known as
A.	Promise
B.	Agreement
C.	Contract
D.	Understanding
Answer» B. Agreement

Discussion

119.	If A unlawfully detains B's son in order to coerce B to enter into the agreement, the case would be covered within:
A.	Section 10
B.	Section 14
C.	Section 15
D.	Section 16
Answer» D. Section 16

Discussion

120.	P renders some service to D at D's desire. After a month D promises to compensate P for the service rendered to him, it is a
A.	Present consideration
B.	Past consideration
C.	Future consideration
D.	None of these
Answer» C. Future consideration

Discussion

121.	When a person without expressing his final willingness, proposes certain terms on which he is willing to negotiate, he makes
A.	Counter offer
B.	Standing offer
C.	Offer
D.	Invitation to treat
Answer» E.

Discussion

122.	Minimum wages are not to be fixed in an industry which employs less then how many employees in the entire state?
A.	500
B.	1000
C.	1500
D.	2000
Answer» C. 1500

Discussion

123.	If A sells, by auction to B a horse which A knows to be unsound and A says nothing to B about the horse's unsoundness, this amounts to:
A.	Fraud
B.	Not fraud
C.	Unlawful
D.	Illegal
Answer» C. Unlawful

Discussion

124.	The process where a person informs on another or makes public disclosure of corruption or wrongdoing-
A.	Endeavour
B.	Whistle blowing
C.	Dilemmas
D.	Veteran
Answer» C. Dilemmas

Discussion

125.	Fraudulent asset valuations, insider trading, securities fraud leading to manipulation of the financial markets and executive compensation etc are a part of scope in
A.	Production
B.	Compliance
C.	Finance
D.	HR
Answer» D. HR

Discussion

126.	Where a person is in a position to dominate the will of another person and uses that position to obtain on unfair advantage it is called:
A.	Fraud
B.	Coercion
C.	Undue influence
D.	Misrepresentation
Answer» D. Misrepresentation

Discussion

127.	When a person, who is in dominating position, obtains the consent of the other by exercising his influence on the other, the consent is said to be obtained by:
A.	Fraud
B.	Intimidation
C.	Coercion
D.	Undue influence
Answer» E.

Discussion

128.	The exhaustion suffered by an individual due to continuous exposure to a stress-causing situation is normally known as
A.	Entrapment
B.	Tiredness
C.	Irritability
D.	Burn-out
Answer» E.

Discussion

129.	If the agreement is made by obtaining consent by doing an act forbidden by the Indian Penal Code, the agreement would be caused by:
A.	Coercion
B.	Fraud
C.	Misrepresentation
D.	Undue influence
Answer» B. Fraud

Discussion

130.	If the consideration or object of an agreement is regarded by the court to be immoral or opposed to public policy. The agreement is
A.	Void
B.	Voidable
C.	Unenforceable
D.	None of these
Answer» B. Voidable

Discussion

131.	While obtaining the consent of the promisee, keeping silence by the promisor when he has a duty to speak about the material facts, amounts to consent obtained by:
A.	Coercion
B.	Misrepresentation
C.	Mistake
D.	Fraud
Answer» E.

Discussion

132.	If the performance of contract becomes impossible because the subject matter of contract has ceased to exist then :
A.	Both the parties are liable
B.	Neither party is liable
C.	Only offerer is liable
D.	Only acceptor is liable
Answer» C. Only offerer is liable

Discussion

133.	When the employee perceives threat in the environment even if there is no such threat existing in the environment, it is normally described as ..
A.	Organizational stress
B.	Individual stress
C.	Extra-organizational stress
D.	None of the above
Answer» C. Extra-organizational stress

Discussion

134.	When the person making a false statement believes the statement to be true and does not intend to mislead the other party to the contract it is known as:
A.	Free consent
B.	Misrepresentation
C.	Fraud
D.	None of these
Answer» C. Fraud

Discussion

135.	Can the mere writing on bills of medical practitioners that interest at one per cent, per mensum be charged, amount to a contract?
A.	Yes
B.	No
C.	Depends
D.	None of the above
Answer» C. Depends

Discussion

136.	A contract without consideration is void. There are exceptions. Which one of the following exceptions is correct?
A.	Promise to pay disputed debt
B.	Promise to pay time-barred
C.	Promise to pay time-barred debt which is in writing and signed ; (d)
D.	Promise to pay any debt
Answer» D. Promise to pay any debt

Discussion

137.	A promises to deliver goods at B's warehouse on the 1st January. On that day, A brings the goods to B's warehouse but after the usual hour for closing it and they are not received. Which one of the following is correct?
A.	A has not kept his promise
B.	A kept his promise as time was not specified
C.	A performs his duty as the time is not the essence of the contract
D.	All of these
Answer» B. A kept his promise as time was not specified

Discussion

138.	A, a Hindu already married with a living wife B, enters into a marriage agreement with a widow of 30 years of age. This agreement is
A.	Void, because of being opposed to public policy ; (b)
B.	Valid and can be enforced by either party
C.	Voidable, because A has obtained B's consent by exercising undue influence against her
D.	Void, because of being forbidden by law
Answer» E.

Discussion

139.	Can a mere mental resolve to make an offer unless such intention is also communicated to the other party has agreed to make such statement?
A.	Yes
B.	No
C.	In normal cases
D.	Not in normal cases
Answer» C. In normal cases

Discussion

140.	A agrees to sell to B 'my white horse for `500 or ` 1,000'. There is nothing to show which of the two prices was to be given. The agreement is
A.	Valid
B.	Void
C.	Voidable
D.	Unenforceable
Answer» C. Voidable

Discussion

141.	A agrees to sell to B a 'hundred tons of oil'. There is nothing whatever to show what kind of oil was intended. The agreement is
A.	Valid
B.	Void for uncertainty
C.	Voidable
D.	Illegal
Answer» C. Voidable

Discussion

142.	A man cannot acquire rights under a contract to which he is not a party. Which one of the following is not an exception to this rule
A.	Beneficiaries under trust
B.	Family settlement
C.	Gift
D.	Assignment of rights
Answer» D. Assignment of rights

Discussion

143.	X, a tailor, employed Y as his assistant under an agreement that Y, on termination of his employment shall not start the business of a tailor. This restraint is
A.	Void
B.	Valid
C.	Illegal
D.	Voidable
Answer» B. Valid

Discussion

144.	Sale of goods by a mercantile agent gives a good title to the purchaser even in cases where the agent acts beyond his authority, provided the following conditions are satisfied-
A.	The agent is in possession of the goods or of a document of title to the goods.
B.	The agent sells the goods in the ordinary course business.
C.	The purchaser acts in good faith and has no notice that the agent had no authority to sell.
D.	All the above
Answer» E.

Discussion

145.	In the absence of any express or implied directions from the offeror to the contrary, can an offer be accepted by a letter?
A.	Yes
B.	No
C.	Depends
D.	None of the above
Answer» B. No

Discussion

146.	Unless excluded by an agreement to the contrary, where after a contract has been made but before it has been performed, excise duty is increased
A.	The buyer would have to pay increased price
B.	The seller cannot charge increased price
C.	The seller can charge increased price
D.	Both 'a' and 'c'
Answer» E.

Discussion

147.	The authority of a partner to bind the firm for his acts as contained in section 19 of the Partnership Act is known as:
A.	Express authority
B.	Legal authority
C.	Implied authority
D.	Managerial authority
Answer» D. Managerial authority

Discussion

148.	Where goods are known to be dangerous to the seller, and he also knows that the buyer is ignorant about it, there is an implied warranty
A.	that buyer must be informed about the dangerous nature of goods
B.	that the buyer must examine the goods before taking delivery
C.	the seller must warn the buyer
D.	both 'a' and 'c'
Answer» E.

Discussion

149.	Under the Sale of Goods Act, 1930, the term "Mercantile Agent" means a mercantile agent, having as such agent, authority to
A.	sell goods or consign goods for the purposes of sale
B.	buy goods
C.	raise money on the security of goods
D.	do all of the above
Answer» E.

Discussion

150.	Agreement in restraint of trade is void. But if an outgoing partner agrees with the firm that he will not carry on any competing business, such an agreement will be valid if:
A.	Such restraint is in respect of carrying of any business similar to that of the firm
B.	Such agreement is made by the partners beforehand i.e. well in advance
C.	Such agreement is made without any specific reference to time period.
D.	Such agreement is made without reference to local limits
Answer» B. Such agreement is made by the partners beforehand i.e. well in advance

Discussion

Explore topic-wise MCQs in Cost Accounting.

Any person who supplies false information to the Registrar of firms, shall be liable to punishment with imprisonment upto

In a Book depot a catalogue of book enlisting the price of each book and specifying the place where the particular book is available is

As per the provisions of section 93, when a cheque is dishonoured by non-acceptance or non-payment the holder

The particulars of the accident should be entered in separate registers kept as Accident Book From for ESI office.

When the contract is perfectly valid in its substance but which cannot be enforced because of certain technical defects. This is called a

The employment of young person on dangerous machines shall be prohibited the section . . of Factories Act1947.

An accident report shall be confirmed by the manager by sending a separate report in Form No. . with details of number of person killed or injured to the inspector of factory.

In case of employee covered under the ESI, the accident report shall be sent in Form No. .. to Local office of the ESI to which the company attached

Employee's State Insurance Act, . is a pioneering measure in the field of social insurance of our country.

Where or more workers are employed in a factory, then there shall be a Safety Committee in the factory.

If the factory employees more than 1000 workers, they should appoint qualified .. to carry out the prescribed duties

As per the child labour (prohibition & regulation) Act1986, child means a person who has not completed his

Government has placed certain awards like Indira Gandhi Paryavaran Puruskar; the Indira Gandhi Priyadarshini Award for those individuals who carry on . in India.

Where under a contract of sale the property in goods is to be transferred at a future time, the contract is called.

The provision for cooling water during hot weather should be made by the organization if it employees or more employees.

A person who is not an Indian citizen is an Alien. Contracts with an alien friend, subject to certain restrictions are

Upon dissolution of firm, losses, including deficiencies of Capital, shall be paid first out of Profits and then out of Capital and finally

When a person signifies his assent to a proposal made to him to refrain from doing something, the resultant transaction is known as

If A unlawfully detains B's son in order to coerce B to enter into the agreement, the case would be covered within:

P renders some service to D at D's desire. After a month D promises to compensate P for the service rendered to him, it is a

When a person without expressing his final willingness, proposes certain terms on which he is willing to negotiate, he makes

Minimum wages are not to be fixed in an industry which employs less then how many employees in the entire state?

If A sells, by auction to B a horse which A knows to be unsound and A says nothing to B about the horse's unsoundness, this amounts to:

The process where a person informs on another or makes public disclosure of corruption or wrongdoing-

Fraudulent asset valuations, insider trading, securities fraud leading to manipulation of the financial markets and executive compensation etc are a part of scope in

Where a person is in a position to dominate the will of another person and uses that position to obtain on unfair advantage it is called:

When a person, who is in dominating position, obtains the consent of the other by exercising his influence on the other, the consent is said to be obtained by:

The exhaustion suffered by an individual due to continuous exposure to a stress-causing situation is normally known as

If the agreement is made by obtaining consent by doing an act forbidden by the Indian Penal Code, the agreement would be caused by:

If the consideration or object of an agreement is regarded by the court to be immoral or opposed to public policy. The agreement is

While obtaining the consent of the promisee, keeping silence by the promisor when he has a duty to speak about the material facts, amounts to consent obtained by:

If the performance of contract becomes impossible because the subject matter of contract has ceased to exist then :

When the employee perceives threat in the environment even if there is no such threat existing in the environment, it is normally described as ..

When the person making a false statement believes the statement to be true and does not intend to mislead the other party to the contract it is known as:

Can the mere writing on bills of medical practitioners that interest at one per cent, per mensum be charged, amount to a contract?

A contract without consideration is void. There are exceptions. Which one of the following exceptions is correct?

A promises to deliver goods at B's warehouse on the 1st January. On that day, A brings the goods to B's warehouse but after the usual hour for closing it and they are not received. Which one of the following is correct?

A, a Hindu already married with a living wife B, enters into a marriage agreement with a widow of 30 years of age. This agreement is

Can a mere mental resolve to make an offer unless such intention is also communicated to the other party has agreed to make such statement?

A agrees to sell to B 'my white horse for `500 or ` 1,000'. There is nothing to show which of the two prices was to be given. The agreement is

A agrees to sell to B a 'hundred tons of oil'. There is nothing whatever to show what kind of oil was intended. The agreement is

A man cannot acquire rights under a contract to which he is not a party. Which one of the following is not an exception to this rule

X, a tailor, employed Y as his assistant under an agreement that Y, on termination of his employment shall not start the business of a tailor. This restraint is

Sale of goods by a mercantile agent gives a good title to the purchaser even in cases where the agent acts beyond his authority, provided the following conditions are satisfied-

In the absence of any express or implied directions from the offeror to the contrary, can an offer be accepted by a letter?

Unless excluded by an agreement to the contrary, where after a contract has been made but before it has been performed, excise duty is increased

The authority of a partner to bind the firm for his acts as contained in section 19 of the Partnership Act is known as:

Where goods are known to be dangerous to the seller, and he also knows that the buyer is ignorant about it, there is an implied warranty

Under the Sale of Goods Act, 1930, the term "Mercantile Agent" means a mercantile agent, having as such agent, authority to

Agreement in restraint of trade is void. But if an outgoing partner agrees with the firm that he will not carry on any competing business, such an agreement will be valid if: