CBSE Questions for Class 12 Commerce Legal Studies Topics Of Law Quiz 13 - MCQExams.com

Express contract is made by __________________.
  • words in writing only
  • words spoken only
  • words spoken or written
  • None of these
LEGAL PRINCIPLE: Attempt is an act done with an intent to commit crime, and forming part of the series of acts which would constitute actual commission of the crime, if not interrupted.
FACTS: A intending to murder B by poison purchases poison and mixes the same with a glass of water. He gave to the bearer to serve B. The bearer while approaching B, loses the balance and the glass drops out of his tray.
DECISION will be _____.
  • A has not committed any offence
  • A has committed the offence of murder
  • A has committed the offence of attempt to murder
  • A has not committed an offence of attempt to murder because nothing happened to B
The Railway authorities allowed a train to be over-crowded. In consequence, a legitimate passenger, Mr.X got his pocket picked. Choose appropriate answer.
  • Mr. X can sue the railway authorities for the loss sufferef
  • Mr. X cannot sue because he had given his consent to travel in a over-crowded train.
  • Mr. X cannot sue the railway authorities because there was no infringement of legal right and mere fact that the loss was caused does not give rise to a cause of action.
  • None of the above.

Collateral agreements also become void in case of ________________.
  • void agreements
  • illegal agreements
  • void contracts
  • voidable contracts
Implied contract is made _______________.
  • by spoken words only
  • by written words only
  • otherwise than by words spoken or written
  • None of these
A bid at an auction is _____________.
  • an express offer
  • an implied offer
  • a general offer
  • None of these
There is a counter-offer when ________________.
  • the offeree gives conditional acceptance or introduces a fresh term in acceptance
  • the offerer makes a fresh offer
  • the offeree makes some query
  • the offeree accepts it
Choose the correct answers from the following alternatives given
Cross offers by two parties to each other:
  • amount to acceptance of ones offer by the other
  • do not amount to acceptance of ones offer by the other
  • amount to an agreement
  • amount to a contract
A person is usually of unsound mind, but occasionally of sound mind ______________.
  • He may enter into a contract when he is of sound mind.
  • He may not make a contract even when he is of sound mind.
  • He cannot enter into a Contract at all.
  • None of the above
A prospectus issued by a company for subscription of its shares and debentures is _______________.
  • an express offer to sell, the shares/debentures
  • an implied offer to sell the shares/debentures
  • a general offer to sell the shares/debentures
  • an invitation to make an offer to buy
An agreement enforceable by law is a _______.
  • Promise
  • Contract
  • Obligation
  • Lawful Promise
Choose the correct answers from the following alternatives given
Mr. X invited all his close friends for a dinner on the occasion of the successful completion of his research. He wanted to take good care of his friends and accordingly be arranged a very lavish dinner in a star hotel. On the day, to his shock and surprise the friends could not turn up to the dinner, consequently all the dishes and money were wasted. He was terribly disappointed. In the above situation which of the following remedies is/are available to Mr. X for the los caused to him?
  • Mr. X can file a suit against his friends for not attending to the dinner
  • Mr. X cannot have any remedy
  • Mr. X can recover the expenses incurred for the arrangements from his friends
  • Mr. X can file a suit for the special damages
A promise to subscribe to a charity is a ___________.
  • valid contract
  • voidable contract
  • void agreement
  • void contract
A proposal when accepted becomes a ________________.
  • promise
  • contract
  • offer
  • acceptance
Choose the correct answer from the alternatives given.
Ordinarily, a minors agreement is ____________.
  • Void ab initio
  • Voidable
  • Valid
  • Unlawful
Choose the correct answers from the following alternatives given
Sanju took a medical insurance from Deadly Diseases Insurance & Claim Corporation of Asia (DDICCA) through one of Its agent, Manju. Sanju singed whatever documents were placed before her by Manju in good faith. The documents contained the fact that Sanju was healthy, fit and fine whereas she was actually suffering from chronic asthma and acute allergy. Sanju did not take care to suggest the changes in the documents and the policy was issued based on the above submissions.
  • Sanju is well protected because she relied on Manju in all good faith.
  • Sapju is well, protected because Manju never specifically. asked here. about the above issues and so she remained silent.
  • Sanju has a duty to speak and disclose the above issues.
  • Sanju has no duty to speak and disclose the above issues It is the duty of DDICCA and its representatives to ask whatever is required
LEGAL PRINCIPLE: A master is liable for those acts of his servant which are committed in the course of employment.

FACTUAL SITUATION: A travelling agency asked its driver to drop a customer at the Delhi University. After dropping the customer, when he was returning back to the office of agency, he found his girlfriend on the way who was waiting for a bus to her residence which is one kilometer away from the office of agency. The driver offered her the lift. On the way, the car met with an accident and the girl got severely injured. She now claims compensation from the agency.

DECIDE.
  • The girl will succeed as the driver was driving in the course of employment.
  • The girl will not succeed as the driver was not driving in the course of employment.
  • The girl will succeed on the basis of strict liability of the agency.
  • The girl will succeed as she took free lift from her boyfriend. She would rather be liable to pay the fare to the agency and be prosecuted.
Choose the correct answers from the following alternatives given
If there is a unilateral mistake as regards identity of a party caused by fraud of the other party, the contract is __________.
  • void
  • voidable
  • illegal
  • none of the above
Given below are Legal Principles followed by a Factual Situation. Apply the principles followed by a factual Situation. Apply the principle to it and select the most appropriate answer for question among the four choices given.

LEGAL PRINCIPLE: A right of action cannot arise out of an illegal activity.

FACTUAL SITUATION: A and B were thieves engaged in stealing cars and other vehicles. One day they stole a car and while driving through a city, they engaged a driver to drive them through the city, as they did not know the route inside the city. As the indicator lamp of the car was not working and the thieves were unaware of this, they did not tell about it to the driver due to which another car belonging to X was damaged and his driver suffered injuries. X and his driver filed a suit for damages against A and B.
DECIDE:
  • X and his driver would lose, because he was injured by a stolen car.
  • X and his driver would win, because they were not a party to the stealing.
  • X and his driver would win, because their car was illegally hit.
  • None of the above.
PRINCIPLE: Whoever intending to take dishonestly (with in intention to cause wrongful loss to another or wrongful gain to himself) any movable property without that person's consent, moves that property in order to such taking, is said to commit theft.
FACTUAL SITUATION: A had lent his watch to B for a period of a month. Two days after he had done so, he walked into B's office to find the watch on B's table. He decided to take the watch back. A was prosecuted for theft.
  • A is not guilty of the offence since he owned the watch
  • A is not guilty of the offence since he was not doing the act dishonestly
  • A is guilty of the offence since he caused wrongful loss to B
  • A is not guilty of the offence since he had lent the watch to B only for a short period of time
LEGAL PRINCIPLE:  Consent is a good defence in a civil action for tort but the act should be the same for which consent was given.

FACTUAL SITUATION: 'B' was formally invited by 'A' to his house. B after sitting for some time in drawing room, moved to the bed room of the house. A sued B for trespass.
  • 'B' has offended 'A' by moving to bed room.
  • 'B' has interfered with privacy of 'A'.
  • 'B' has committed trespass as there was no consent of 'A' for entry in the bedroom.
  • 'B' has committed no trespass as he entered the house with A's consent.
An offer which is allowed to remain an offer for acceptance over a period of time is known as ___________.
  • Standing Offer
  • Specific Offer
  • Express Offer
  • Implied Offer
LEGAL PRINCIPLE:  Consent is a good defence for civil action in tort. But consent must include both knowledge of risk and assumption of risk, i.e. readiness to bear harm.

FACTUAL SITUATION: A lady passenger was aware that the driver of the cab, in which she opted to travel was little intoxicated. The met with an accident and lady got injured.

Decide
  • Lady can refuse to pay the fare as she had suffered injuries.
  • Lady is entitled to claim compensation as she only knew about the risk and there was no assumption of risk.
  • Lady is not entitled to claim compensation as she had knowledge of the risk.
  • Driver can take plea that he was lightly intoxicated.
The maxim 'Res Ipsa Loquitor' means __________________.
  • In law there is a remedy for every wrong.
  • The aim of law is to seek justice.
  • Facts speak for themselves.
  • Justice is blind.
LEGAL PRINCIPLE: Everybody is under a legal obligation to take reasonable care to avoid act or omission which he can foresee would injure his neighbour, the neighbour for this purpose is any person whom he should have in his mind as likely to be affected by his act.

FACTUAL SITUATION: Krish, while driving a car at a high speed in a crowded road, knocked down a cyclist. The cyclist died on the spot with a lot of blood spilling around, Lekha, a pregnant woman passing by, suffered from a nervous shock, leading to absorption. Lekha filed a suit against Krish claiming damages.

DECIDE.
  • Krish will be liable to pay damages because he owed a duty of reasonable care to everybody on the road including Krish.
  • Krish will not be liable to pay damages because he could not have foreseen Lekha suffering from nervous shock as a result of his act.
  • Krish will be liable to pay damages to Lekha because he failed to drive carefully.
  • None of the above.
 Law of Torts deals with _____________.
  • Defamation
  • Trespass
  • Negligence
  • All of the above.
LEGAL PRINCIPLE: There are certain acts which, though harmful, are not wrongful in law; therefore, do not give legal right to bring action in law, to the person who suffers from such acts.
FACTUAL SITUATION: 'Prakash' has a rice mill. His neighbour, Shanti, sets up another rice mill and offers a tough competition to Prakash. As a consequence, Prakash's profits fall down, he brings a suit against Shanti for damages.
  • Prakash can succeed in his claim as it is a case of actual damages.
  • Prakash cannot succeed in his claim for damages, as it is a case of damage without infringement of any legal right.
  • Prakash can succeed in his claim for damages, as it is a case of damage as a result of infringement of his legal right.
  • Prakash may succeed in his claim for damages, as it is a case of loss to his business.
LEGAL PRINCIPLE: In cases where there is an infringement of legal right even without any actual loss or damage, the person whose right is infringed has a cause of action.
FACTUAL SITUATION: P was wrongfully prevented by the Returning Officer from exercising his vote in an assembly election. However, the candidate for whom he wanted to caste his vote won the election. Still, he (P) brought an action claiming damages. Which of the following derivations is correct?
  • P would succeed in his action, as it is mandatory to cast vote.
  • P would not succeed in his action, as the candidate for whom he wanted to give his vote won the election.
  • P would not succeed in his action, as he did not suffer any loss in that election.
  • P would succeed in his action, as he was wrongfully prevented from exercising his legal right of voting in that election.
PRINCIPLE: Vicarious liability is the liability of the Master or Principal for the tort committed by his servant or agent, provided the tort is committed in the course of employment. The Master or Principal is not liable for private wrongs of the servant/agent.

FACTS: 'X' hands over some cash money at his house to Y, who is his (X's) neighbour and is also, cashier in a bank, to be deposited in A's account in the bank. Instead of depositing the money, 'Y' misappropriates it.

Which of the following statements depicts correct legal position in this given situation?
  • The bank would not be liable because 'Y' did not do commit wrong in the course of his employment.
  • The bank would be vicariously liable because 'Y' was the employee of the bank.
  • The bank would not be liable because 'Y' did not do any wrong.
  • The bank would be liable because 'Y' acted as bank's agent.
PRINCIPLE: A person has no legal remedy for an injury caused by an act to which he has consented.

FACTS: 'R', a cricket enthusiast, purchases a ticket to watch a T20 match organised by the Indian Premier League (IPL). During the match, a ball struck for six hit 'R' on his body and injures him. He sues IPL for compensation for the medical expenses.

Which of the following derivations is CORRECT?
  • R should be compensated as he purchased the ticket to get entertainment and not to get injured.
  • R would fail in his action, as he voluntarily exposed himself to the risk.
  • IPL would be liable as it did not ensure that the spectators were protected from the risk of such injuries.
  • None of the above.
LEGAL PRINCIPLE: The master/principal is liable for all acts done by his duly appointed servant/agent for all acts done by him lawfully in the course of his employment.

FACTUAL SITUATION: A, B and C carried on a business in partnership. While making a deal with another company, B bribed the clerk there. Is the partnership firm vicariously liable?

DECIDE.
  • No, as bribing is not a course or employment of the partners.
  • Yes, as partners are agent of the firm.
  • Yes, as B can be said to have implied authority for the same.
  • No, as this act was not authorised by the others.
LEGAL PRINCIPLE: The master/principal is liable for all acts done by his daily appointed servant/agent for all acts done by him lawfully in the course of his employment.

FACTUAL SITUATION: A had an agency which used to lend carpenters to people on need basis. A deputed B to do some repair work in C's shed. While doing so, B lit up a cigarette and threw it as soon as he saw someone coming down there. The cigarette remaining lit caused a fire and the shed was reduced to ashes. C sued A and B.

Decide.
  • A is liable as B was his servant.
  • A is liable as he should have chosen responsible people.
  • A is not liable as B's act was not an authorized act.
  • A is not liable but B is liable.
LEGAL PRINCIPLE: A person is responsible for that which he could have reasonably foreseen or prevented.

FACTUAL SITUATION: A chemist sold a hair conditioner to Jyoti. The conditioner was locally manufactured and the contents, harmful chemicals, were listed on the bottle. The chemist, however, represented to Jyoti that the chemicals used were harmless and beneficial for the hair. On using it. Jyoti's hair got badly damaged and she had to get a hair treatment done for the same. Jyoti filed a complaint against the chemist. 
Will the chemist be liable?

DECIDE.
  • Yes, as he should have informed Jyoti that the ingredients are not known.
  • Yes, as he was aware of the side effects of the ingredients.
  • Not liable because it was the buyer's duty to be aware about the product she is buying.
  • Not liable as it is a natural tendency of shopkeepers to exaggerate the virtues of the product they are selling.
PRINCIPLE: Trespass to land means direct interference with the possession of land without lawful justification. Trespass could be committed either by a person himself entering the land of another person or doing the same through some tangible object(s).

FACTS: 'A' throws some stones upon his neighbour's (B's) premises.

Which of the following derivations is CORRECT?
  • 'A' has committed trespass.
  • 'A' has not committed trespass, as he has not entered 'B's premises.
  • 'A' has committed nuisance.
  • None of the above.
The offence of "Defamation" is ____________.
  • A Crime
  • A Tort
  • Both (a) and (b)
  • Not a legal offence.
PRINCIPLE: Damage without the violation of a legal right is not actionable in a court of law. If the interference with the rights of another person in not unlawful or unauthorized, but a necessary consequence of the exercise of defendant's own lawful rights, no action should lie.
FACTS: There was an estbalished school ('ES') in a particular locality. Subsequently, a new school ('NS') was set up in the same locality, which charged lower fee on account of which people started patronising the new school. Because of the competition 'ES' had to reduce its fees. 'ES' filed a case against 'NS' saying that 'NS' had caused it ('ES') financial loss and thus, claimed compensation.
Which of the following derivations is CORRECT?
  • Since no legal right of 'ES' had been violated, therefore, as such, no compensation could be granted.
  • Since damage is caused to 'ES', therefore, it should be awarded compensation.
  • 'ES' should be awarded compensation, as opening of school in competition is not good.
  • No compensation could be granted, as reduction in fees is good for the public.
LEGAL PRINCIPLE: The occupier of premise owes a duty of care to all his invitees and visitor.

FACTUAL SITUATION: Radhika's brother, Akash, had come to visit at her place. After seeing her wealth. Akash decided to commit theft that night. While he was trying to escape that night he got electrocuted by the wires, which were fixed on the boundary walls. Akash plans sue Radhika. Will his claim succeed?
  • Yes, because in Indian tradition, guests are like Gods.
  • No, because one has to be himself cautious about his safety.
  • Yes, because it is the occupiers' duty to take care of its visitors.
  • No, because he himself is guilty of theft. He is no longer an invitee or visitor.
PRINCIPLE: Master is liable for the wrongful acts committed by his servant, provided the acts are committed during the course of employment. However, the master is not liable if the wrongful act committed by his servant has no connection, whatsoever, with the servant's contract of employment.

FACTS: 'D' is a driver employed by 'M', who is the owner of a company. During the lunch time 'D' goes to a close by tea shop to have a cup of tea. There he ('D') picks up fight with the tea shop owner 'T', which resulted in some damage to his shop. 'T' wants to sue 'M' for claiming compensation for the damage caused by the fight.

Which of the following derivations is CORRECT?
  • 'M' will be liable because 'D' is his servant.
  • Both 'M' and 'D' will be liable.
  • 'M' will not be liable because the wrongful act (picking up fight) was not committed in the course of D's employment.
  • 'M; will be liable albeit the wrongful act (picking up fight) was not committed in the course of D's employment.
PRINCIPLE: Ignorance of law excuses no one. 

FACTS: 'X' fails to file his income-tax returns for a considerable number of years. The Income Tax department serves upon him a 'show-cause notice' as to why proceedings should not be initiated against him for the recovery of the income tax due from him with interest and penalty.

Which of the following derivations is CORRECT?
  • X may defend himself by taking the plea that his legal advisor had not advised him to file the return.
  • X would have to pay the due, as ignorance of law and failure to comply with law is not legal ground of defence.
  • X may defend himself successfully by taking the plea that he was unaware of any such a law being in force.
  • None of the above.
K advertises in paper that any person who found his lost pet dog can get a reward of Rs.Any person who finds the dog can claim the reward. This is a case of _________.
  • General Offer
  • Specific Offer
  • Standing Offer
  • Invalid Offer
One person wants to travel from Tirupati to Chittagong. The bus travelling from Tirupathi to Chittgong arrives at the bust station. This is an example of ________.
  • implied offer
  • express offer
  • specific offer
  • none
Drawing cash from ATM is an examples of ______.
  • express contract
  • illegal contract
  • tacit contract
  • unlawful contract
M/S Law Book Company offered books only to ICAI Council members. This Offer is generally known as _________.
  • general offer
  • specific offer
  • both A and B
  • neither A and B
Where the obligation or promise in a contract is outstanding on the part of both parties, it is called ______.
  • Void Contract
  • Illegal Contract
  • Unilateral Contract
  • Bilateral Contract
PRINCIPLE: Qui facit per alium facit per se, i.e. he who does things through others does it himself.

FACT: Nisha, the owner of a car, asked her friend Saurabh to take her car and drive the same to her office. As the car was near her office, it hit a pedestrian  Srikant on account of Saurabh's negligent driving and injured him seriously. Now Srikant files a suit for damages against Nisha.

Decide.
  • Nisha is not liable as it was the negligence of Saurabh.
  • Saurabh is solely liable as Nisha was not driving the car.
  • Nisha is liable as Saurabh was driving under her authority and for her purpose.
  • Saurabh will be exempted from liability under the principle of inevitable accident.
PRINCIPLE: Whenever there is an invasion of a legal right, the person in whom the right is vested, is entitled to bring an action though he has suffered no actual loss or harm, and may recover damages (compensation).

FACTS: 'A' was qualified voter for the Lok Sabha election. However, a returning officer wrongfully refused to take A's vote. In spite of such wrongful refusal, the candidate, for whom, 'A' wanted to vote, won the election. But, 'A' brought an action for damages.

Which of the following derivations is CORRECT?
  • Since no legal right of 'A' had been violated, therefore, as such, no compensation could be granted.
  • Since legal right of 'A' had been violated, therefore, compensation should be granted.
  • No compensation could be granted, as 'A' had suffered no loss as his candidate won the election.
  • Since no fundamental right of 'A' had been violated, therefore, as such, no compensation.
LEGAL PRINCIPLE: (i) An occupier is not responsible to a trespass except in respect of wilful act intended to cause harm or done with reckless disregards, (ii) Master is liable for the acts of the employee/servant.
FACTS: A farmhouse is located in South Delhi on 2 acre plot of land. The owner of the farmhouse keeps a specially trained ferocious dog to guard his property. He also employs a dog-handler to handle this dog and instructs all his other employees to avoid the dog. A sign is also put up on the gate saying "Beware of Dog". On the afternoon of 26th January, a group of poor boys playing cricket in a nearby park hit the ball into the farmhouse. A 14-year boy enters the farmhouse to get the ball. The dog attacks the boy and he dies of the injuries. The family of the boy sues farmhouse owner for damages.
  • The owner is liable because the dog had a vicious or savage propensity and he had knowledge of the same
  • The owner should pay the damages because he is rich and the boy killed was poor
  • The owner is not liable because the boy committed trespass
  • The owner is not liable because a 14 years old boy ought to have known about the presence of the ferocious dog
LEGAL PRINCIPLEs: (1) Master/ Principal is vicariously liable for the tort committed by a servant/agent, in performance of his duties as an servant/agent.
(2) Negligence is the omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs, would do or doing something which is prudent or reasonable man would not do.

FACTS: A patient is brought to a hospital maintained by B. The patient is to be operated upon. As a result of faulty oxygen supply, the patient dies on the operation theatre table, then ______.
  • B would not be liable because the surgeon was negligent
  • B would be liable because there is master and servant relationship between B and the surgeon
  • B would not be liable because there is no master and servant relationship between B and the surgeon
  • B would not be vicariously liable because surgery is a highly skilled work which B would have no control
LEGAL PRINCIPLE: An act of God is an operation of natural forces so unexpected that no human foresight or skill could reasonably be expected to anticipate it.
FACTUAL SITUATION: The Surya Club was celebrating its 50th anniversary and arranged for a concert by a leading musical group. The event was to be organized in Great Palace auditorium in the coastal area. All the tickets were sold out. On the day of the event, the tsunami destroyed many of the buildings including the auditorium. People who purchased the tickets asked for refund from the Club as the show could not take place.
DECIDE.
  • The management of the Auditorium must refund the cost of tickets as they got money from the Club
  • The Club must refund the cost of tickets as the people were not at fault
  • The Club is not liable to refund the ticket but the ticket holders can demand the show to be organized at a later point of time
  • Neither the management of the Auditorium nor the Club is liable to refund the money
"Pull blood" under the Hindu Succession Act, 1956 means ________________________.
  • When two persons are descended from a common ancestor by the same wife
  • When two persons are descended from a common ancestor by separate wife
  • When two persons are descended from a separate ancestor by different wives
  • When two persons are descended from a separate ancestor by same wife.
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