Commerce MCQs
Topic Notes: Commerce
MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
91
Which specific form is required to be submitted when filing an application for a patent?
Answer:
Form 1
Under the Patents Rules, Form 1 is the prescribed application form for the grant of a patent. It contains the essential details of the applicant, the inventor, and the title of the invention. While Form 2 is used for the submission of the provisional or complete specification, Form 1 serves as the formal request to the Controller of Patents to initiate the examination and grant process.
92
Under what circumstances does an unpaid seller's right of lien terminate?
Answer:
All of the above
The right of lien is a possessory right. It terminates when the seller loses possession of the goods, such as when they are delivered to the buyer, the buyer's agent, or a carrier for transmission to the buyer, or if the seller explicitly waives the right.
93
In which month and year did the Competition Act, 2002, receive presidential assent?
Answer:
January 2003
The Competition Act, 2002, was enacted to replace the Monopolies and Restrictive Trade Practices Act (MRTP Act). It was passed by the Parliament of India and received the formal assent of the President of India in January 2003, marking the beginning of a new regulatory framework for competition in the Indian market.
94
Which of the following options does not constitute a legal right of a buyer against a seller under the Sale of Goods Act?
Answer:
Both A and B
A suit for price and a suit for non-acceptance of delivery are legal remedies available to the seller against the buyer, not the other way around. Therefore, both options A and B represent rights belonging to the seller in the event of a breach.
95
If a seller fails to deliver goods to the buyer as per the contract, what legal remedy is available to the buyer against the seller?
Answer:
damages for non-delivery
Under the Sale of Goods Act, when a seller wrongfully neglects or refuses to deliver goods, the buyer is entitled to sue for damages resulting from the non-delivery. This remedy aims to put the buyer in the financial position they would have occupied had the contract been performed correctly, covering the loss directly resulting from the breach.
96
What is the linguistic origin of the legal doctrine 'caveat emptor'?
Answer:
Latin word
The term 'caveat emptor' is a Latin phrase that translates to 'let the buyer beware.' It is a fundamental principle in commercial law, particularly in the sale of goods, implying that the buyer is responsible for checking the quality and suitability of goods before making a purchase, rather than relying solely on the seller's representations.
97
In the legal principle of 'quid-pro-quo' regarding patents, what does the term 'quo' represent?
Answer:
monopoly granted for the term of the patent
The 'quid-pro-quo' (something for something) in patent law refers to the exchange between the inventor and the state. The inventor provides the 'quid' (full disclosure of the invention to the public), and in return, the state provides the 'quo' (a temporary monopoly or exclusive right to exploit the invention).
98
Which type of agreement is characterized by the eventual transfer of ownership upon the purchase of goods?
Answer:
credit agreement
A credit agreement allows a buyer to take possession of goods immediately while paying for them over time. The ownership typically transfers to the buyer once the full payment or a specific number of installments has been completed, distinguishing it from simple cash transactions.
99
Which of the following statements regarding the Competition Commission of India (CCI) is considered incorrect?
Answer:
1 only
The Competition Commission of India is a statutory body established by an Act of Parliament, not a constitutional body. It is indeed responsible for enforcing the Competition Act, 2002, making the first statement incorrect and the second statement correct.
100
What are the necessary conditions required to exercise the right of stoppage in transit under the Sale of Goods Act?
Answer:
Both A and B
The right of stoppage in transit allows an unpaid seller to resume possession of goods while they are in transit if the buyer becomes insolvent. For this right to be validly exercised, two conditions must be met: the goods must still be in the course of transit, and the buyer must have been declared insolvent. This protects the seller from losing both the goods and the payment.