MCQ Bank Business Laws and Ethics (Paper - 5)

Key terminology and concepts from Business Laws and Ethics relevant for exam preparation.

Right to Property

A Constitutional Right.

Constitution of India

Describes India as a Union of states.

Law of the land

Refers to the Constitution.

Chief source of legal authority in India

Constitution of India.

Soul of the Constitution

Described as the Preamble.

Preamble to the Indian Constitution

Based on the Objectives Resolution drafted by Pandit Nehru.

The term ‘We’ in Preamble

Refers to The People of India.

Justice in the Indian Constitution

Ensured in Social, Economic, and Political forms.

42nd Constitutional Amendment

Added Socialist and Secular to the Preamble.

Preamble case law

In Berubari Union case, it was held that Preamble is not a part of the Constitution.

Preamble integral part

In Kesavananda Bharati case, it was held that Preamble is an integral part of the Constitution.

Authority from the Constitution

The Constitution derives its authority from The People of India.

Date of adoption of the Constitution

26th November 1949.

'Economic Justice' in Constitution

Provided in the Preamble and the Directive Principles of State Policy.

Sequence of Preamble words

Sovereign, Socialist, Secular, Democratic, Republic.

First Constitution with a Preamble

USA.

Ideal of Justice in Preamble

Inspired by the Russian Revolution.

Ideals of liberty, equality, and fraternity

Taken from the French Revolution.

True about Preamble

None of the above.

Preamble terms added

All of the above.

Words not in Preamble

Indians.

Meaning of Sovereign

India is independent and free to conduct its own affairs.

Statements true about Sovereignty

All of the above.

Basic aims and objectives

Discussed in the Preamble.

Meaning of equality

Absence of special privileges and provision of adequate opportunities for all.

Terms not included in ‘union of trinity’

Flexibility.

Acceptance validity

Must be both absolute and unqualified.

Proposal acceptance options

All of the above.

Competency to contract factors

Both age and soundness of mind.

Unlawful contract consideration

If only part of the consideration or object is unlawful, the contract is void.

Consent under undue influence

Invalidates a contract, making it voidable.

Contract with a minor

Is void.

Clause of indemnity under the law

Specified in Section 24 of the Indian Contract Act,1872.

A promise without trial

A fraud if made without intention of performing it.

Rights of a bailee over goods

A right of particular lien.

Status of a finder of lost goods

Acts as a bailee.

Liability of bailee for loss of goods

Will fall on the bailee if they fail to return goods.

Pledge validity with misrepresentation

It’s valid if the buyer does not know of the misrepresentation.

Nature of a contract of indemnity

A contingent contract based on certain events.

Caveat emptor doctrine

It applies when the buyer depends upon their own skill and judgement.

Effect of misrepresentation

Buyer can claim damages only.

Contract of sale main objective

Transfer of property in goods.

When does risk follow ownership

Even if delivery has not been made.

Acceptance of goods in specific sales

Buyer's acceptance implies agreement.

Constructive delivery definition

When a third party acknowledges the buyer holds goods on their behalf.

Auction status of lots

Each lot is a separate contract of sale.

Contingent goods definition

Acquisition dependent on certain events.

Promissory note definition

A formal financial document under the Negotiable Instruments Act.

Rights of bearer in a transaction

The right to exchange for payment under the bill of exchange.

Shares suitable for partnerships

Partnership-related provisions govern partnerships.

Powers of a designated partner

Responsible for compliance with the Act.