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
141
Which of the following business practices is classified as a horizontal agreement?
Answer:
Cartel
A horizontal agreement occurs between enterprises operating at the same level of the production or distribution chain. A cartel is a classic example of a horizontal agreement where competitors collude to fix prices, limit production, or allocate markets, thereby restricting competition within the same industry sector.
142
Which of the following items is explicitly excluded from the definition of 'goods' under the Sale of Goods Act, 1930?
Answer:
Actionable claims
The Sale of Goods Act defines goods as every kind of movable property other than actionable claims and money. Actionable claims are rights that can only be enforced by a legal action or suit, such as a debt, and therefore do not fall under the definition of goods that can be sold.
143
What are the defining characteristics of a trademark under intellectual property law?
Answer:
All of the above
A trademark is a unique identifier used in commerce. Legally, it must be capable of graphical representation and serve to distinguish the goods or services of one enterprise from those of others. Modern trademark laws are broad, allowing for non-traditional marks such as specific shapes, colors, or combinations thereof, provided they function as a source identifier for consumers.
144
When a seller attempts to sell future goods, how is the contract legally characterized?
Answer:
an agreement to sell the goods
A contract for the sale of future goods cannot be a 'sale' because the property in the goods cannot pass until they exist. Therefore, it is legally classified as an 'agreement to sell,' which matures into a sale once the goods are acquired or produced by the seller.
145
Which type of warranty arises when a seller or lessor explicitly affirms that goods meet specific standards of quality, description, or performance?
Answer:
Express
An express warranty is created by the seller's or lessor's affirmative statement, promise, or description regarding the goods. This can be in the form of a written statement, an oral promise, or a sample/model provided to the buyer. It becomes part of the basis of the bargain, legally binding the seller to the stated quality or performance standards.
146
Under a hire-purchase agreement, at what point does the buyer legally acquire ownership of the goods?
Answer:
first installment
In a hire-purchase arrangement, the buyer typically gains possession of the goods immediately upon signing the agreement and paying the initial deposit or first installment. However, legal ownership (title) usually transfers only after the final installment is paid. This structure protects the seller's interest until the full purchase price is recovered. Note: Legal definitions may vary by jurisdiction.
147
What is the legal term for the right of an unpaid seller to retain possession of goods until the full purchase price is settled?
Answer:
lien
A lien is the legal right of a seller to retain possession of goods until the buyer pays the price. This right is available to an unpaid seller when the goods are in their possession, the credit period has expired, or the buyer has become insolvent. It is a fundamental protection for sellers in commercial transactions.
148
Which of the following statements justify why an invention should be patented?
Answer:
2, 3 and 4
Patenting an invention provides legal recognition (2), establishes clear ownership (3), and facilitates the dissemination of technical data for further research (4). While protection (1) is a primary benefit, the provided answer key focuses on the combination of recognition, ownership, and research utility. Patents serve as a balance between private rights and public knowledge sharing.
149
In a legal dispute regarding trademark infringement under Section 29 of the Trademarks Act, 1999, which party bears the burden of proof?
Answer:
Plaintiff
In civil litigation involving trademark infringement, the burden of proof lies with the plaintiff. The plaintiff must demonstrate that they are the registered proprietor of the trademark and that the defendant's use of a deceptively similar mark is likely to cause confusion among the public or damage the brand's reputation.
150
Prior to the enactment of the Sales of Goods Act in 1930, which legislation governed the provisions related to the sale of goods?
Answer:
Indian Contract Act, 1872
Before the specific Sales of Goods Act was passed in 1930, the legal provisions concerning the sale of goods were contained within Chapter VII of the Indian Contract Act, 1872. These sections were repealed and replaced by the 1930 Act to provide a more comprehensive and specialized legal framework.