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CBSE Questions for Class 12 Commerce Business Studies Consumer Protection Quiz 8 - MCQExams.com
CBSE
Class 12 Commerce Business Studies
Consumer Protection
Quiz 8
Partnership arises by the way of_______.
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Statute
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Parties
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Contract
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Status
Explanation
A partnership arises by the way of a contract. A contract refers to an agreement. It may be a verbal contract or a written contract.
Hence, option (C) is the correct answer.
The process of identifying the goods and setting apart as per the intended quality or description is called _________.
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Identification
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Procurement
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Ascertainment
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Allocation
Explanation
The process of identifying the goods and setting them apart as per the intended quality or description is called ascertainment. Ascertained goods are those goods that are to be identified when the contract is made.
Hence, option (C) is the correct answer.
The doctrine of caveat emptor is applicable where __________.
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There is no implied warranty or condition as to the quality or fitness of goods
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The buyer discloses to the seller the particular purpose for which goods are required
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Goods are bought by sample as well as description
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The seller sells the goods by making fraud and the buyer believes it
Explanation
Caveat Emptor means let the buyer beware before buying the goods. The principle of " Caveat Emptor" as found in Section 16 of the Sale of Goods Act, means that buyer must take care.
The doctrine of caveat emptor is applicable where there is no implied warranty or conditionn as to the quality or fitness of goods.
The property, in case of sale of unascertained goods, passes when ______.
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Pucca delivery order is entered
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Goods are identified and appropriated to the contract
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Goods are so far ascertained that the parties have agreed that they shall be taken from some specific larger stock
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Transfer is made in the books of the warehouse-man
Explanation
The property, in case of sale of unascertained goods, passes when goods are identified and appropriated to the contract. The goods must be identified when the contract is made.
Hence, option (B) is the correct answer.
The principle of "Caveat Emptor" as found in Sec. $$16$$ of the Sale of Goods Act, means that the __________.
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Buyer must take care
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Buyer must take a chance
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Seller must take care
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Seller must take a chance
Explanation
Caveat Emptor means let the buyer beware before buying the goods. The principle of " Caveat Emptor" as found in Section 16 of the Sale of Goods Act, means that buyer must take care.
Hence, option (A) is the correct answer.
Under the sale of goods act, $$1930$$. The risk prima facie passes with _________.
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Ownership
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Transit
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Discharge of contract
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Delivery of goods
Explanation
Under the sale of goods act, 1930. The risk prima facie passes with ownership. It states that the risk of the goods has to be bear by sellers before the transfer of ownership.
Hence, option (A) is the correct answer.
Caveat emptor means _________.
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Let the buyer beware before buying the goods
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Let the Seller beware before Selling the goods
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Let the buyer beware after buying the goods
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Let the seller beware after the goods
Explanation
Caveat Emptor means let the buyer beware before buying the goods. The principle of " Caveat Emptor" as found in Section 16 of the Sale of Goods Act, means that buyer must take care.
Hence, option (A) is the correct answer.
By transferring the Property, the Rights and Liabilities will transfer to _______.
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Buyer
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Seller
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Both (a) and (b)
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None of these above
Explanation
By transferring the Property, the Rights and Liabilities will transfer to the buyer. It means that after the transfer of ownership of goods, the buyer bears all the liabilities related to the goods.
Hence, option (A) is the correct answer.
For transfer of property in ascertained goods, the basic condition is that ______.
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Goods must be ascertained and appropriated
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Goods must be defined by description
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Buyer must received a sample of the goods
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Seller must have produced / purchased the goods
Explanation
For transfer of property in ascertained goods, the basic condition is that goods must be ascertained and appropriated. Ascertained goods must be specifically identified when the contract is made.
Hence, option (A) is the correct answer.
In a sale on "approval" basis, any act of the Buyer exercising domination over the goods, showing an unequivocal intention to buy is called _______.
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adopting the transaction
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adapting the transaction
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revoking the transaction
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rejecting the transaction
Explanation
In a sale on "approval" basis, any act of the Buyer exercising domination over the goods, showing an unequivocal intention to buy is called adopting the transaction.
Sale on approval basis implies a change of possession only and not a transfer of ownership unless the specified period expires without return.
In case of sale on "sale or return" or "approval" basis, property passes to the buyer when __________.
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Buyer approves or accepts the goods
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Buyer does any act adopting the transaction
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Buyer retains the goods for more than the contract-stipulated time or reasonable time, without giving notice of rejection
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All of the above
Explanation
When the goods are sold on approval basis, these goods are not treated as a sale until it is approved by the customer. In case of sale on a "sale or return" or "approval" basis, the property passes to the buyer when:-
a) buyer approves or accepts the goods.
b) buyer does any act adopting the transaction.
c) buyer retains the goods for more than the contract-stipulated time or reasonable time, without giving notice of rejection.
Hence, option (D) is the correct answer.
A Finder of goods has the power to sell the goods to give good title to the Buyer, if the owner of goods cannot be found with __________.
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ordinary diligence
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reasonable diligence
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due diligence
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lack of diligence
Explanation
A Finder of goods has the power to sell the goods to give good title to the Buyer, if the owner of goods cannot be found with reasonable diligence. Reasonable diligence refers to the due diligence. It refers to he care expected from a logical and reasonable person.
In case of sale of specific goods in a deliverable state, the property in goods passes to the buyer when _________.
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Contract in entered
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Payment is made by the buyer
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Goods are delivered and payment is made
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Goods are delivered to buyer
Explanation
In case of sale of specific goods in a deliverable state, the property in goods passes to the buyer when the contract is entered.
Specific goods or ascertained goods are those goods that are to be specifically identified when the contract is made.
Hence, option (A) is the correct answer.
Ram of Chennai took a Bill of Lading in the name of Suman of Maldives, but sent it to Tarun, Ram's Agent in Maldives. The goods were destroyed while in sea. Who has to bear the loss of goods?
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Ram
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Suman
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Tarun
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All of the above
Explanation
Ram of Chennai took a Bill of Lading in the name of Suman of Maldives, but sent it to Tarun, Ram's Agent in Maldives. The goods were destroyed while in sea. Ram has to bear the loss of goods since Ram holds the Bill of Lading.
As per sales of goods Act, $$1930$$ implied condition as to merchantable quality _________ where the buyer has examined the goods.
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Is applicable
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Is presumed
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Is not applicable
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None of the above
Explanation
As per sales of goods act, 1930 implied condition as to merchantable quality is applicable where the buyer has examined the goods. Merchantable quality goods refers to the goods which are not damaged and of sufficient quality. Thus, when buyer has examined the goods, implied condition as to merchantable quality is applicable.
Hence, option (A) is the correct answer.
For passing of property in respect of specific or ascertained goods, the intention of the parties can be ascertained from _________.
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Terms of the contract
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Conduct of the parties
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Circumstances of the case
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All of the above
Explanation
Ascertained goods or specific goods are those goods that are specifically identified at the time of the contract. For the passing of property in respect of specific or ascertained goods, the intention of the parties can be ascertained from the following:-
a) terms of the contract
b) conduct of the parties
c) circumstances of the case
Hence, option (D) is the correct answer.
Q sells $$100$$ tonnes of Rice to P at Rs. $$50,000$$ per tonne. P makes the full payment and says that he will take the Goods by next week. Before P could take the Goods, the Goods are destroyed. The Loss will be borne by _____.
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P
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Q
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both P & Q equally
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none
Explanation
Q sells 100 tonnes of rice to P at Rs 500,000 per tonne. P makes the full payment and says that he will take the Goods by next week. Before P could take the Goods, the Goods are destroyed. The loss will be borne by P.
In cases of goods sent on an approval basis, the goods are at the seller's risk if they perish in an inevitable accident. If the goods are sold on an approval basis, if the damage is done to the goods, it is to be borne by the seller.
Hence, option (A) is the correct answer.
In cases of goods sent on approval basis, the goods are at the __________, if they perish in an inevitable accident.
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buyer's risk
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seller's risk
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combined risk of buyer and seller
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carrier's risk
Explanation
In cases of goods sent on an approval basis, the goods are at the seller's risk, if they perish in an inevitable accident. If the goods are sold on an approval basis, if the damage is done to the goods, it is to be borne by the seller.
Hence, option (B) is the correct answer.
Delivery of goods to the Carrier for the purpose of transmission to the Buyer automatically means that the property in goods vest in the Buyer.
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True
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Partly True
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False
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None of the above
Explanation
Delivery of goods to the Carrier for the purpose of transmission to the Buyer automatically means that the property in goods vest in the Buyer- this statement is false since the delivery of goods to the carrier for the purpose of transmission to the buyer does not mean that the property in goods vest in the buyer.
When goods are shipped or delivered to a railway administration for carriage by railway, the Seller is prima facie deemed to have reserved the right of disposal, if, by the Bill of Lading or Railway Receipt, the goods are deliverable to the order of ______.
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Buyer
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Seller
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Buyer or his agent
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Seller or his agent
Explanation
When goods are shipped or delivered to a railway administration for carriage by railway, the Seller is prima facie deemed to have reserved the right of disposal, if, by the Bill of Lading or Railway Receipt, the goods are deliverable to the order of the seller or his agent. According to the order of the seller or his agent, the goods are to be delivered.
Hence, option (D) is the correct answer.
Giving document of title of goods is which type of delivery?
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Symbolic
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Constructive
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Actual
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None of these
Explanation
Giving document of the title of goods is a symbolic type of delivery Symbolic delivery refers to the type of delivery when goods are delivered by way of gift or sale as the actual delivery becomes cumbersome.
Hence, option (A) is the correct answer.
When goods are physically handed over to the Buyer or his authorised agent i.e., transfer of physical custody, it is a case of _______.
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Actual delivery
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Constructive delivery
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Symbolical delivery
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Forward delivery
Explanation
When goods are physically handed over to the Buyer or his authorized agent i.e., transfer of physical custody, it is a case of actual delivery. Hence, actual delivery happens when the goods are taken by the buyers physically at the time of purchasing them.
Hence, option (A) is the correct answer.
To enable the Buyer to get good title, in case of sale by Mercantile Agent, the _______________, that the Seller/Agent has no authority to sell.
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buyer has notice at the time of contract
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buyer has no notice at the time of contract
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true owner has notice at the time of contract
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true owner has no notice at the time of contract
Explanation
To enable the Buyer to get good title, in case of sale by Mercantile Agent, the buyer has no notice at the time of contract, that the seller or agent has no authority to sell.
Sale by Mercantile agent is not valid when the buyer knows that the agent has no authority to sell. Merchantile agent refers to that event when the seller sells goods wihout any authority.
A obtains a necklace from B, a jeweller, by playing fraud upon him. This contract is voidable at the option of B. But before B could terminate the contract, A sells the necklace to C who buys it in good faith and without notice of A' defective title.
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A gets a goods title to goods
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B gets a good title to goods
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C gets a good title to goods
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There is no sale at all
Explanation
A obtains a necklace from B, a jeweller, by playing fraud upon him. This contract is voidable at the option of B. But before B could terminate the contract, A sells the necklace to C who buys it in good faith and without notice of A' defective title. C gets a good title to goods.
Sale by Mercantile agent is not valid when _________.
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The buyer is acting in ordinary course of business
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The buyer knows that the agent has no authority to sell
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The buyer must act in good faith
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The possession of the goods must be with the consent of the owner
Explanation
Sale by Mercantile agent is not valid when the buyer knows that the agent has no authority to sell. Merchantile agent refers to that event when the seller sells goods wihout any authority.
Hence, option (B) is the correct answer.
A person finds goods belonging to another person in a public place. In such a case, the finder _______.
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becomes owner of the goods
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does not become owner of the goods, but can use them
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is under duty to trace the owner and return the goods to him
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can sell them with out taking any effort to trace the owner
Explanation
A person finds goods belonging to another person in a public place. In such a case, the finder is under duty to trace the owner and return the goods to him. A person who finds the lost goods should return the goods to the owner by tracing hiim.
A sells to B $$100$$ bags of wheat lying in C's warehouse. A makes a delivery order to C to transfer the wheat to B. C transfers and holds the $$100$$ bags on behalf of B and by making necessary entries in his books. This is a case of _________.
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actual Ddlivery
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constructive delivery
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symbolical delivery
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forward delivery
Explanation
A sells to B 100 bags of wheat lying in C's warehouse. A makes a delivery order to C to transfer the wheat to B. C transfers and holds the 100 bags on behalf of B and by making necessary entries in his books. This is a case of constructive delivery. Constructive delivery refers to a transfer of title when actual delivery cannot be done. It is a operation by law.
When the property in Goods is transferred to Buyer, Goods are at the ________ risk, irrespective of whether delivery has been made or not.
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Buyer's
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Seller's
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Carrier's
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All of the above
Explanation
When the property in Goods is transferred to Buyer, Goods are at the buyer's risk, irrespective of whether delivery has been made or not since the ownership of goods is transferred to the buyer at the time of the sale.
Hence, option (A) is the correct answer.
Risk prime facie passes with ________.
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Property or ownership
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Completed agreement
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Verification and delivery of goods
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Payment of price
Explanation
Risk prime facie passes with property or ownership. Goods remain at seller's risk, which means, any damage done to the goods is to be borne by the sellers.
Hence, option (A) is the correct answer.
The keys of Warehouse where the goods are stored is handed over to the Buyer. It is called _________.
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actual
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symbolic
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constructive
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conditional
Explanation
Symbolic delivery refers to the type of delivery when goods are delivered by way of gift or sale as the actual delivery becomes cumbersome.
The keys of Warehouse where the goods are stored is handed over to the Buyer. It is called symbolic.
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Practice Class 12 Commerce Business Studies Quiz Questions and Answers
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