BACHEOR OF BUSINESS MANAGEMENT

M.C.Q. BUSINESS REGULATORY FRAMEWORK

1. Contract of Indemnity is defined under :
a. Under Section 123
b. Under Section 124
c. Under Section 125
d. Under Section 126
2. Contract of guarantee is defined under :
a. Under Section 123
b. Under Section 124
c. Under Section 125
d. Under Section 126
3. Surety is a person
a. In respect of whose default the guarantee is given.
b. Who gives the guarantee
c. To whom the guarantee is given
d. None of the above.
4. Liability of the surety is
a. Conditional on default
b. Independent of default
c. Can be conditional and can be independent.
d. Either (a) or (b)
5. A Guarantee
a. Has to be in writing
b. Can be oral
c. Can be oral or in writing
d. Neither (a) nor (b)
6. A Continuing guarantee applies to
a. A specific transaction
b. A specific number of transactions
c. Any number of transactions
d. Reasonable number of transactions
7. Surety is discharged
a. By revocation
b. By death
c. By variance in terms of contract without his consent
d. All of the above.

8. In a contract of guarantee,
a. There are 2 parties and one contract
b. There are 2 parties and 2 contracts
c. There are 3 parties and 3 contracts
d. There are 3 parties and 1 contract
9. A promises to make a sculpture of B
a. A must perform this promise personally.
b. As son can perform the promise.
c. As servant can perform the promise.
d. As employer can perform the promise.
10. Goods may be pledged
a. By owner of goods
b. By servant in absence of owner
c. By person who is left with the goods for some purpose
d. All of the above.
11. Bailment involves
a. Change of custody
b. Change of possession
c. Change of custody and possession both
d. Neither change of custody nor possession.
12. Bailee is a person
a. Who carries the goods
b. To whom goods are delivered.
c. Through whom the good are delivered
d. None of the above.
13. Bailee is bound to take care of goods
a. As an expert
b. As a lay man
c. As a man of ordinary prudence
d. Both b and c.
14. Finder of goods is
a. Entitled to claim compensation
b. Entitled to retain goods
c. Not entitled to claim compensation and thus not entitled to retain the goods.
d. Both a and b.
15. For purpose of pledge, delivery of possession of goods
a. Has to be actual
b. May be constructive
c. Either actual or constructive
d. May be symbolic.
16. In pledge, general property of ownership of goods is
a. Continues in pledgor
b. Transferred to pledge
c. Cannot be transferred to pledge
d. Either a or b.
17. In event of default of payment of debt by pawner, Pawnee has the right to
a. To retain the goods pledged as collateral security.
b. To sue the pawner
c. To sell the goods pledge.
d. All of the above.
18. An employer asks his servant to sell the servants goods at a price less than market price.
Servant can avoid the contract on grounds of
a. Undue influence
b. Coercion
c. Mistake
d. Fraud
19. Under contract of guarantee
a. If principal debtor is not liable, guarantor is not liable.
b. If principal debtor is not liable, guarantor is liable.
c. If principal debtor is liable, guarantor is liable.
d. All of the above.
20. On payment of performance, surety
a. Is invested with all the rights that creditor has against principal debtor
b. Is entitled to the security that creditor has against the principal debtor.
c. Is entitled to be indemnified by principal debtor.
d. All of the above.