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
111
Can a contract for the sale of specific goods be avoided if the goods perish without the fault of either party before the risk passes to the buyer?
Answer:
It can be avoided by the parties
Under the Sale of Goods Act, if specific goods perish or are damaged so severely that they no longer correspond to the description in the contract, and this occurs without the fault of the seller or the buyer before the risk passes, the contract is rendered void. Consequently, the parties are discharged from their obligations, and the contract can be legally avoided.
112
Which of the following is recognized as a geographical indication?
Answer:
Champagne
A geographical indication (GI) is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin. Champagne is a protected GI because it refers to sparkling wine produced specifically in the Champagne region of France, adhering to strict production standards associated with that location.
113
Under the Sale of Goods Act, if a buyer rejects goods and the carrier retains possession, does the transit period conclude?
Answer:
is not deemed to be at an end
According to the Sale of Goods Act, if the buyer rightfully rejects the goods and the carrier continues to hold them, the transit is not considered to have ended, even if the seller refuses to accept the return. The goods remain in transit until they are either delivered to the seller or the carrier acknowledges holding them on behalf of the seller.
114
How is the term 'public domain' defined in the context of intellectual property?
Answer:
Work belonging to the public as a whole
Public domain refers to creative materials that are not protected by intellectual property laws such as copyright, trademark, or patent laws. The public owns these works, not an individual author or artist. Anyone can use a public domain work without obtaining permission, but no one can ever own it.
115
In a contract for the sale of specific or ascertained goods, at what point does the property in the goods transfer to the buyer?
Answer:
When the parties to the contract intend it to be transferred
According to the Sale of Goods Act, the transfer of ownership (property) in specific goods occurs at the time the parties to the contract intend it to be transferred. This intention is determined by the terms of the contract, the conduct of the parties, and the circumstances of the case.
116
Which form of intellectual property protection is specifically designed for inventions created by inventors?
Answer:
Patents
A patent is an exclusive right granted for an invention, which is a product or a process that provides a new way of doing something or offers a new technical solution to a problem. It protects the inventor by preventing others from commercially using, making, or selling the invention without permission for a limited period.
117
Under the Sale of Goods Act, 1930, in what specific circumstance is a breach of condition legally treated as a breach of warranty?
Answer:
When the contract of the sale is not severable and the buyer has accepted the goods or part thereof, subject to an express or implied term in the contract
According to the Sale of Goods Act, if a contract is not severable and the buyer has accepted the goods (or part thereof), the breach of a condition is reduced to a breach of warranty. This means the buyer can no longer reject the goods but can claim damages for the breach.
118
Which section of the Competition Act, 2002 provides the legal provisions regarding combinations?
Answer:
Section 5
Section 5 of the Competition Act, 2002, defines 'combinations' in the context of mergers, acquisitions, and amalgamations. It sets the thresholds for assets and turnover that trigger the requirement for regulatory approval from the Competition Commission to ensure that such combinations do not adversely affect market competition.
119
According to the Sale of Goods Act, which of the following are recognized as conditions of a contract?
Answer:
1 and 2 only
Under the Sale of Goods Act, conditions are stipulations essential to the main purpose of the contract. The implied conditions include the right to sell (Title) and sale by description. While quiet possession and freedom from encumbrances are warranties, the Act specifically highlights title and description as fundamental conditions of the contract of sale.
120
Under which legislation is the requirement that goods sold by description must match that description enforced?
Answer:
the trade description act 1968
The Trade Descriptions Act 1968 was specifically enacted to prevent manufacturers and retailers from making false or misleading statements about the goods they sell. It mandates that any description provided must be accurate, protecting consumers from deceptive marketing practices.