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
121
Which legislation mandates that goods sold must be of merchantable quality?
Answer:
the sale of goods act 1979
The Sale of Goods Act 1979 is a significant piece of legislation in UK law that governs the sale and supply of goods. It establishes implied terms in contracts, specifically requiring that goods sold in the course of a business must be of satisfactory quality and fit for their intended purpose.
122
Which of the following is NOT a primary objective of the Competition Act 2002?
Answer:
Prohibition of Restrictive trade practice
The Competition Act 2002 was enacted to promote competition and prevent practices that have an appreciable adverse effect on competition. While it addresses anti-competitive agreements, abuse of dominance, and combinations, the specific term 'Restrictive Trade Practices' was the focus of the older MRTP Act, which this legislation replaced.
123
Which of the following functions are primary objectives of the Competition Commission of India (CCI)?
Answer:
1, 2 and 3
The CCI is tasked with promoting fair competition, regulating market interactions, and ensuring the efficient use of economic resources. Statement 4 is incorrect because the mandate of the CCI is to protect consumer welfare and market integrity, not to serve the interests of politicians. Therefore, the combination of functions 1, 2, and 3 represents the core mission of the commission.
124
What elements are included in the definition of 'prior art' within the context of intellectual property?
Answer:
All the above
Prior art encompasses all information made available to the public before a given date that might be relevant to a patent's claims of originality, including prior publications, public use, and existing knowledge.
125
In the context of the Sale of Goods Act, when are goods considered to be in the process of transit between the seller and the buyer?
Answer:
transit
Goods are deemed to be in transit from the time they are delivered to a carrier or other bailee for the purpose of transmission to the buyer, until the buyer or their agent takes delivery of them. This legal status is significant for determining the seller's right of stoppage in transit in the event of buyer insolvency.
126
According to the Sale of Goods Act, which of the following are classified as implied conditions?
Answer:
1 and 2 only
Under the Sale of Goods Act, implied conditions include the condition as to title (the seller has the right to sell) and the condition as to description (the goods must correspond with the description). Quiet possession and freedom from encumbrances are typically classified as implied warranties rather than conditions, though legal interpretations can vary based on specific jurisdiction.
127
Which of the following scenarios does not qualify as a valid 'delivery' of goods under the Sale of Goods Act?
Answer:
Doing anything which has the effect of putting goods in possession of legal representatives of seller
Delivery is defined as the voluntary transfer of possession from one person to another. For a delivery to be valid under the Sale of Goods Act, it must transfer control to the buyer or an authorized agent. Transferring goods to the seller's own legal representatives does not constitute a delivery to the buyer, as the possession remains within the seller's sphere of control.
128
Which of the following scenarios serve as exceptions to the doctrine of caveat emptor?
Answer:
All of the above
The doctrine of caveat emptor ('let the buyer beware') places the burden of quality assessment on the buyer. However, exceptions exist where the seller is responsible, such as when there is a known usage of trade, when the goods do not match a provided sample, or when the seller has engaged in fraudulent misrepresentation regarding the goods.
129
Under the Sale of Goods Act, which section allows a buyer to initiate a lawsuit against a seller specifically for a breach of warranty?
Answer:
Section 59
Section 59 of the Sale of Goods Act provides the buyer with the remedy to sue for damages in the event of a breach of warranty. This section allows the buyer to set up the breach of warranty in diminution or extinction of the price payable, or to maintain an action against the seller for damages for the breach, ensuring the buyer is compensated for the loss suffered.
130
What is the statutory time limit for the Competition Commission of India (CCI) to initiate an inquiry into a combination after it has taken effect?
Answer:
one
According to the Competition Act, the Competition Commission of India is empowered to investigate combinations. The law stipulates that the Commission cannot initiate an inquiry into a combination after the expiry of one year from the date on which the combination has taken effect.