Exam-preparation4u: TYBCOM SEM 5|| Business Law MCQ of Sales of Goods Act ,1930

TYBCOM SEM 5|| Business Law MCQ of Sales of Goods Act ,1930

1. The Sale of Goods Act, 1930 came into force on

A. 1st day of july 1930

B. 1st day of january 1930

C. 1st day of august 1930

D. 1st day of september 1930

Ans:

A. 1st day of july 1930

2. Which law governs the sale of movable property in India?

A. transfer of property act, 1872

B. sale of goods act, 1930

C. indian contract act, 1872

D. all of the above

Ans:

B. sale of goods act, 1930

3. A contract of sale may be

A. oral

B. written

C. always expressed

D. either (a) & (b)

Ans:

D. either (a) & (b)

4. ‘Delivery’ within the meaning of the Sale of Goods Act can be

A. symbolic

B. actual

C. actual

D. either (a) or (b) or (c)

Ans:

D. either (a) or (b) or (c)

5. The term ‘possession of goods’ means

A. ownership of goods

B. custody of goods

C. both (a) & (b)

D. none of these

Ans:

B. custody of goods

6. The term ‘Goods’ in the Sale of Goods Act means

A. subject matter of the contract of sale

B. specific goods only

C. ascertained goods only

D. unascertained goods only

Ans:

A. subject matter of the contract of sale

7. The goods which are to be produced by the seller after the contract of sale is made areknown as

A. contingent goods

B. unascertained goods

C. future goods

D. none of the above

Ans:

C. future goods

8. Where money is exchanged by one person for some money with another person, thetransaction is known as

A. barter

B. exchange

C. money sale

D. none of the above

Ans:

B. exchange

9. A Sale of Goods under the Sale of Goods Act, 1930 includes

A. a jus in personam

B. a jus in rem

C. both (a) & (b)

D. neither (a) & (b)

Ans:

B. a jus in rem

10. Where no price is fixed by express agreement, the buyer shall pay the seller

A. lowest price

B. reasonable price

C. suitable price

D. adhoc price

Ans:

B. reasonable price

11. A stipulation in a contract may be

A. condition

B. warranty

C. neither (a) & (b)

D. both (a) & (b)

Ans:

D. both (a) & (b)

12. A ‘Condition’ under the Sale of Goods Act has been defined as a stipulation

A. collateral to the main purpose of the contract

B. main purpose of contract

C. essential to the main purpose of the contract

D. all of the above

Ans:

C. essential to the main purpose of the contract

13. Which of the following is correct?

A. a condition is a stipulation, not essential to the main purpose of the contract.

B. a warranty is a stipulation, collateral to the main purpose of the contract.

C. breach of a warranty, gives rise to a right to treat the contract as repudiat

Ans:

B. a warranty is a stipulation, collateral to the main purpose of the contract.

14. When the buyer’s right of quiet possession of goods is affected by the seller’s fault, thebuyer can

A. reject the goods

B. claim for damages

C. repudiate the contract

D. all of the above

Ans:

B. claim for damages

15. The buyer shall have and enjoy quiet possession of goods. This is an __________

A. implied warranty as to title

B. implied condition as to title

C. implied warranty as to possession

D. implied condition as to possession

Ans:

C. implied warranty as to possession

16. The general rule is that the buyer of goods is responsible for his choice or selection. Thisdoctrine is

A. ignorantia juris non excusat

B. quid pro quo

C. nemo dat quad non habet

D. caveat emptor

Ans:

D. caveat emptor

17. The process of identifying the goods and setting apart is called

A. identification

B. procurement

C. ascertainment

D. allocation

Ans:

C. ascertainment

18. ‘Nemo Dat Quod Non Habet’ means

A. no man can pass a better title than what he himself possesses.

B. let the buyer beware.

C. void from the beginning.

D. ignorance of law is no excuse.

Ans:

A. no man can pass a better title than what he himself possesses.

19. According to the Sale of Goods Act ‘fault’ means

A. refusal to pay price

B. refusal to deliver goods

C. any wrongful act or default

D. any fraud

Ans:

C. any wrongful act or default

20. An unpaid seller loses his right of lien in case of

A. delivery of goods to buyer

B. delivery of goods to carrier or wharfinger

C. tender of price by buyer

D. any of the above

Ans:

D. any of the above

21. An unpaid seller can exercise his right of stoppage of goods in transit

A. by giving notice to the carrier

B. by taking actual possession of the goods

C. by notice of his claim to the bailee who is in possession of the goods

D. either (a) or (b) or (c)

Ans:

D. either (a) or (b) or (c)

22. Auction sale is also known as

A. public sale

B. private sale

C. cash sale

D. none of the above

Ans:

A. public sale

23. Where the seller appoints his person to bid at the auction sale without informing to bidder, itis called as

A. prepared bidding

B. pretend bidding

C. power bidding

D. both (a) & (c)

Ans:

B. pretend bidding

24. In contract through sea route, where the seller has to put the goods on board a ship at hisown expenses, the contract is known as

A. cif contract

B. fob contract

C. board obligatory contract

D. ex-ship contract

Ans:

B. fob contract

25. In a contract through sea route where the seller has to deliver the goods to the buyer at theport of destination

A. fob contract

B. cif contract

C. ex-ship contract

D. destination contract

Ans:

C. ex-ship contract

1. A contract for the sale of goods where property would pass to the buyer on payment of total price would

be;

(a) sale (b) agreement to sell

2. The term “goods” under Sale of Goods Act, 1930 does not include

(a) goodwill. (b) actionable claims.

3. A contract for the sale of “future goods” is

(a) sale (b) agreement to sell.

4. The sale of Goods Act, 1930 deals with the

(a) movable goods only. (b) immovable goods only.

5. Under Sale of Goods Act, 1930 the terms “Goods” means every kind of movable property and it includes

(a) stock and share. (b) growing crops, grass

6. The Sale of Goods Act, 1930 deals with

(a) sale (b) mortgage.

7. Which one of the following is true?

(a) the provisions of Sale of Goods were originally with the Indian Contract Act, 1872.

(b) the Sale of Goods Act, 1930 deals with mortgage.

(d) none of the above.

8. Goods which are in existence at the time of the Contract of Sale is known as

(a) present Goods. (b) existing Goods.

9. Which of the following is not a form of delivery?

(a) constructive delivery. (b) structured delivery.

10. Which one of the following is/are document of title to goods?

(a) railway receipt. (b) wharfinger’s certificate.

11. Which one of the following is not true?

(a) document showing title is different from document of title.

(b) bill of lading is a document of title to goods.

d) none of the above.

12. Mercantile Agent is having an authority to

(a) sell or consign goods. (b) raise money on the security of goods.

c) sell or buy goods. (d) any of the above.

13. Contract of Sale is

(a) executory Contract. (b) executed Contract.

14. In which form of the contract, the property in the goods passes to the buyer immediately:

(a) agreement to sell. (b) hire purchase.

15. In case of hire purchase the hirer can pass title to a bona fide purchaser.

(a) true. (b) false.

16. In a contract of sale, the agreement may be expressed or implied from the conduct of the parties.

(a) true. (b) false.

17. In a contract of sale, subject matter of contract must always be money.

(a) true. (b) false.

18. If a seller handed over the keys of a warehouse containing the goods to the buyer results in

(a) constructive delivery (b) actual delivery

19. If A agrees to deliver 100 kg of sugar to B in exchange of 15 mts of cloth, then it is

(a) Contract of sale. (b) Agreement to sell.

20. In a hire-purchase agreement, the hirer

(a) has an option to buy the goods. (b) must buy the goods.

21. A agrees to deliver his old car valued at ` 80,000 to B, a car dealer, in exchange for a new car, and

agrees to pay the difference in cash it is

(a) Contract of sale. (b) Agreement to sell.

22. Legally, a contract of sale includes

(a) sale. (b) agreement to Sell.

23. The Sale of Goods Act, 1930 came into force on

(a) 15th March, 1930. (b) 1st July, 1930.

24. The person who buys or agrees to buy goods is known as

(a) consumer. (b) buyer.

25. Voluntary transfer of possession by one person to another is popularly known as

(a) transfer. (b) possession.

26. If X commissioned Y, an artist, to paint a portrait of A for 200 dollars & Y uses his own canvas & paint

then it is

(a) Contract of sale. (b) Contract of work & materials.

27. The property in the goods means the

(a) possession of goods. (b) custody of goods.

28. The goods are at the risk of a party who has the

(a) Ownership of goods. (b) Possession of goods.

29. In case of sale of standing trees, the property passes to the buyer when trees are

(a) felled and ascertained. (b) not felled but earmarked.

Answers to MCQs

1. (b) 2. (b) 3. (b) 4. (a) 5. (c)

6. (a) 7. (a) 8. (b) 9. (b) 10. (d)

11. (d) 12. (d) 13. (c) 14. (c) 15. (b)

16. (a) 17. (b) 18. (c) 19. (d) 20. (a)

21. (a) 22. (d) 23. (b) 24. (b) 25. (c)

26. (b) 27. (c) 28. (a) 29. (a) 30. (a)

31. (d)

1. A stipulation which is essential to the main purpose of the contract is called-

(a) Warranty (b) Guarantee

2. Breach of condition gives the aggrieved party-

(a) Right to sue for damages (b) Right to repudiate the contract

3. Condition may be treated as a warranty when there is –

(a) Waiver of condition by the buyer

(b) Buyer elects to treat breach of condition as a breach of warranty

(d) All the above

4. The doctrine of Caveat Emptor does not apply, when

(a) the goods are bought by sample.

(b) the goods are bought by sample as well as description.

(d) all of the above

5. Which of the following is not an implied condition in a contract of sale?

(a) condition as to title. (b) condition as to description

6. The conditions and warranties may be in the form of

(a) express. (b) implied.

7. Which one of the following is not an implied warranty

(a) warranty as to undisturbed possession.

(b) warranty as to existence of encumbrance.

(d) warranty as to quality or fitness by usage of trade.

8. In case of goods sold by sample, the goods should correspond with the sample other wise

(a) buyer can reject the goods. (b) buyer cannot reject the goods.

9. M, a shopkeeper, sold a Television set to N, who purchased it in good faith. The set had some

manufacturing defect and it did not work after a few days in spite of repairs. In this case, the television

was not merchantable as it was not fit for ordinary purpose

(a) the buyer has no right to reject the television.

(b) the buyer has the right to reject the television and to have refund of the price.

(d) none of the above [(a) & (b)]

10. Where the buyer is deprived to goods by their true owner, then the buyer

(a) may recover the price for breach of the condition as to title.

(b) can not recover the price for breach of the condition as to title.

(d) none of the above.

11. Where goods are bought by description from a seller who deals in goods of that description, what is the

implied condition?

(a) That goods shall be of merchantable equality

(b) That the buyer shall have reasonable opportunity of comparing the bulk with the sample

(d) The goods shall be free from defects

12. A warranty is stipulation

(a) Essential to the main purpose of the contract

(b) Collateral to the main purpose of the contract

(d) Very important to the buyer

13. In a sale by sample and description, there is an implied condition

(a) That bulk of the goods correspond with the sample

(b) That bulk of goods must correspond to the description as well as the sample thereof

(d) The bulk of goods must correspond to the description only

Answers to MCQs

1. (c) 2. (c) 3. (d) 4. (d) 5. (c)

6. (c) 7. (d) 8. (a) 9. (b) 10. (a)

11. (a) 12. (b) 13. (b)

1. The property in the goods means-

(a) Possession of the goods (b) Ownership of the goods

2. In case of sale on approval, the ownership is transferred to the buyer when he-

(a) Accepts the goods (b) Adopts the transaction

3. If a seller hands over the keys of a ware house containing goods to the buyer, it results in-

(a) Constructive delivery (b) Actual delivery

4. A sells to B 100 bags of wheat lying in C’s ware house. A orders to C to deliver the wheat to B. C agrees

to hold the 100 bags on behalf of B and makes the necessary entry in his books. This is a –

(a) Actual delivery (b) Constructive delivery

5. Selection of goods with the intention of using them in performance of the contract and with the mutual

consent of the seller and the buyer is known as-

(a) distribution (b) appropriation

6. In contract of sale of goods, if the seller is not the owner of goods, then the title of the buyer shall-

(a) Not be same as that of the seller (b) Be same as that of the seller

7. Nemo dat quad non habet means-

(a) One cannot give what one does not have

(b) Let the buyer be beware

(d) None of these

8. The goods are at the risk of the party who has the-

(a) Ownership of the goods (b) Possession of the goods

9. If the seller delivers to the buyer a quantity less than he contracted to sell, the buyer may

(a) Reject the goods, (b) Accept the goods

10. Appropriation of goods means

(a) Separating the goods sold from other goods

(b) Putting the quantity of goods sold in suitable receptacles

without reserving the right of disposal

(d) All the above

11. Which of the following is true as regards delivery of goods in instalments as provided under Sale of

Goods Act:

(a) The buyer is bound to accept the instalment deliveries only in case of perishable goods

(b) The buyer is bound to accept the instalment deliveries only in case of sale of goods by

description

(d) Delivery of goods can’t be made in instalments

Answer to MCQs

1. (b) 2. (d) 3. (c) 4. (b) 5. (b)

6. (b) 7. (a) 8. (a) 9. (c) 10. (d)

11 (c)

1. The unpaid seller has right of stoppage of goods in transit only where the buyer

(a) become insolvent. (b) refuses to pay price.

2. An unpaid seller is having rights against

(a) goods only. (b) the buyer only.

3. Under which of the circumstances unpaid seller loses his right of lien

(a) by estoppel.

(b) where seller waived the right of lien.

(d) any of the above.

4. When the unpaid seller has parted with the goods to a carrier and the buyer has become insolvent he

can exercise

(a) right of lien. (b) right of stoppage in transit.

5. The essence of a right of lien is to

(a) deliver the goods. (b) retain the possession.

6. Which of the following right can be exercised by an unpaid seller against the buyer, who is not insolvent

(a) right of lien. (b) right of stoppage in transit.

7. Which of the following is a buyer’s right against the seller in case of breach of contract?

(a) suit for non-delivery. (b) suit for specific performance.

8. An auction sale is complete on the

(a) delivery of goods (b) payment of price

9. Seller has right of resale where

(a) goods are perishable. (b) seller has reserved such right.

10. The aggrieved party can claim only damages in case of breach of warranty.

(a) true.

(b) false.

11. Under which circumstances, the right of stoppage can be exercised by an unpaid seller

(a) the buyer has become insolvent. (b) the goods are in transit.

12. Under which circumstances the unpaid seller can exercise right of re-sale

(a) when the goods are of perishable nature.

(b) when he gives notice to the buyer.

reasonable time pay the price.

(d) both (a) and (c)

13. Where the seller wrongfully neglects to deliver the goods to the buyer, then the buyer

(a) cannot sue the seller for damages for non-delivery.

(b) may sue the seller for damages for non-delivery.

(d) none of the above.

14. Where the buyer is deprived to goods by their true owner, then the buyer

(a) may recover the price for breach of the condition as to title.

(b) can not recover the price for breach of the condition as to title.

(d) none of the above.

15. Where the buyer wrongfully neglects or refuses to accept and pay for the goods,

(a) the seller may sue buyer for damages for non-acceptance.

(b) the seller cannot sue buyer for damages for non-acceptance.

(d) none of the above.

16. In an auction sale, the property shall be sold to the

(a) Lowest bidder. (b) Highest bidder.

17. In an auction sale, if the seller makes use of pretended bidding to raise the price, then the sale is

(a) valid. (b) void.

18. In which of the following cases, the unpaid seller loses his right of lien?

(a) delivery of goods to buyer. (b) delivery of goods to carrier.

19. The bidder at an auction sale can withdraw his bid

(a) any time during auction. (b) before fall of hammer.

20. Where in an auction sale, the seller appoints more than one bidder, the sale is

(a) void. (b) illegal.

21. Where in an auction sale notified with reserve price, the auctioneer mistakenly knocks down the goods

for less than the reserve price, then the auctioneer is

(a) bound by auction. (b) not bound by auction.

Answers to MCQ’S

1 (a) 2. (c) 3. (d) 4. (b) 5. (b)

6. (a) 7. (d) 8. (c) 9. (d) 10. (a)

11. (d) 12. (d) 13. (b) 14. (a) 15. (a)

16. (b) 17. (c) 18. (d) 19. (b) 20. (d)

21. (b)

Exam-preparation4u

TYBCOM SEM 5|| Business Law MCQ of Sales of Goods Act ,1930

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