MODEL QUESTION PAPER BBA-301- Legal &Regulatory Framework SECTION A 1 MARK QUESTIONS 1*40=40 Marks

1. _________ into existence. a. Material b. Formal c. Legal d. Historical

source of law is usually a constitutional process by which a legal rule comes

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 factor 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 _____________. 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

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?

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 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 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 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? 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

SECTION B 2 MARK QUESTIONS 1. A _________ or _________ legislature. a. Law , Act b. Rules, regulations c. Law , rules d. Act, regulation

2*20=40Marks is a bill passed by both houses of parliament or the state

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

11. 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

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

12. 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 d. Options 2 & 4

13. 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 14. 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 15. 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.

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"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:

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

16. 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

17. 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

18. 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:

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

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d. 1-False, 2-True 19. 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 20. 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

SECTION C 4 MARK QUESTIONS

4*15=60 Marks

1. Assume that you recently took an admission in law collage and as it was the first day, the collage lecturer wants you to go through the source of laws so he gave the assignment question asking which of the following source laws have force and validity as instruments of state governance? a. Historical sources b. Legal sources c. Formal sources d. Material sources 2. Which of these following types of contracts are the contract classified according to the mode of creation? 1. Executed contract 2. Express contract 3. Implied contract 4. Contingent contract

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

3. "Assume that you are working as an agent in some agency and due to some reason you want to assign your work to some other person. So, you want to know under which of the following circumstances you can lawfully employ another person to perform acts which you have undertaken to perform yourself?" 1. Where the nature of agency requires delegation. 2. Where the Principal permits delegation. 3. In case of breach of legal obligation. 4. In an emergency where delegation becomes necessary. a. Options 1, 2 & 3 b. Options 2, 3 & 4 c. Options 1, 2 & 4 d. Options 1, 3 & 4

4. Assume a car manufacturing company buys spare parts in bulk from XYZ company. XYZ company sells the goods on credit. However, the car manufacturer continuously delays the payment and finally terms of credit expires. Which of the following rights is XYZ company entitled to exercise? a. Right of lien b. Right of stoppage in transit c. Right of re-sale d. Right of withholding the delivery

5. Which of the following is correct regarding stamping bills of exchange and promissory notes? 1. Stamping of bills of exchange is mandatory. 2. Stamping of bills of exchange and promissory notes is required as per the Indian Stamp Act, 1899. 3. The value of stamp depends upon the value of the promissory note or bill and the time of their payment. 4. Stamping of promissory is not essential for both negotiable instruments. a. Options 1, 2 & 3 b. Options 2, 3 & 4 c. Options 1, 2 & 4 d. Options 1, 3 & 4 6. Which of the following are the ways a firm can be dissolved? 1. By the adjudication of a partner as insolvent.

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2. By the death of the partner 3. Rescission 4. By notice a. Options 1, 2 & 3 b. Options 2, 3 & 4 c. Options 1, 2 & 4 d. Options 1, 3 & 4

7. Assume that you want to incorporate a company in India. What is the initial process that you have to follow and what should be included in memorandum of association? 1. Get the name of the proposed company approved from Registrar of Companies (ROC). 2. Submit the memorandum of association and articles of association with ROC. 3. Memorandum of association should include rules, regulations and laws for internal management of the company. "4. Memorandum of association should include name, object, situation, liability clauses." a. Options 1, 2 & 4 b. Options 1, 2 & 3 c. Options 2, 3 & 4 d. Options 1, 3 & 4 8. Assume you have purchased a induction stove from an online shopping store. After few weeks the stove consumes lot of electricity and stops working. You have informed the online personnels about this defect many times and they always assure to replace the device but no steps are taken in this regard. Then according to the which of the following act you can file a case against the online personnels? a. Sale of Goods Act, 1930 b. Indian Contract Act, 1872 c. Consumer Protection Act, 1986 d. Negotiable Instruments Act, 1881 9. Assume that you are working in a organisation as a manager. The Managing Director has realised that the company contravenes a provision of FEMA and hence is liable to pay the penalty.You are asked to determine and make a report of the amount which the company needs to pay to the government as penalty. Which of the followings points will you include in the report so that the amount to be paid to the government as penalty becomes clear? 1. Civil Imprisonment. 2. In case of unquantifiable sums it is liable to pay up to two lakh rupees. 3. If the contravention is a continuing one, further penalty which may extend to five thousand rupees for every day after the first day during which the contravention continues. 4. A penalty up to thrice the sum involved in contravention if the amount is quantifiable. a. Options 1, 2, 3 & 4 b. Options 1, 2 & 3 c. Options 2, 3 & 4 d. Options 1, 3 & 4 10. 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

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

11. Match the following sets: Part A 1. Sound Pollution 2. Air Pollution 3. Soil Pollution 4. Global Warming Part B A. Industries such as thermal power plant B. Use of plastic bags C. Increase of urbanisation through deforestation D. Man-made noises from machines a. 1B, 2A, 3D, 4C b. 1A, 2C, 3D, 4B c. 1B, 2C, 3D, 4A d. 1D, 2A, 3B, 4C

12. Match the following sets: Part A 1. Patentee 2. Patent 3. Invention 4. Trademark registration

Part B "A. Issued to the true inventor of the product. "B. A new product or process involving an inventive step and capable of industrial application. C. Most important piece of a company's intellectual property protection program, which remains complex for most people. D. To whom the patent has been granted.

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

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

13. Consider the below mentioned statements: "1. The Information Technology Act, 2000 is applicable to the whole of India. "2. According to Section 3 of the Act, the mode of verifying the electronic records is through digital signature. 3. The primary source of cyber law in India is the Patent Act 1970. 4. The Information Technology Act deals with the provisions relating to electronic governance. State True or False: a. Statements 1, 2 & 4 are true b. Statements 1, 3 & 4 are true c. Statements 2, 3 & 4 are false d. Only statement 4 is false 14. Assume that you own a small enterprise manufacturing wooden furniture. You need some help in procurement of raw material, product marketing, and acquisition of technologies. According to you, which among the following public sector enterprises would help in fulfilling the needs? a. National Small Industries Corporation Ltd (NSIC) b. Micro, Small and Medium Enterprises Development Organisation (MSME-DO) c. National Commission on Enterprises in the Unorganised Sector (NCEUS) d. Khadi and Village Industries Commission (KVIC)

15. Part A 1. Worker 2. Occupier 3. Manager 4. Chief Inspector Part B A. The person who has got the ultimate control over the affairs of the factory. B. The person responsible to the occupier for the working of the factory "C. Any person appointed by State Government "D. A person employed directly or through any agency with or without the knowledge of the principal employer. a. 1B, 2A, 3D, 4C b. 1A, 2C, 3D, 4B c. 1B, 2C, 3D, 4A d. 1D, 2A, 3B, 4C

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