BUSINESS LAW- MARKS_2

NEGOTIABLE INSTRUMENTS ACT (NIA)

Q1. What does NIA stand for?

Negotiable instruments act
Q2. What does the term negotiable indicate in NIA?
The word negotiable means ‘transferable by delivery’, and the word instrument means
‘a written document by which a right is created in favor of some person’. Thus, the
term “negotiable instrument” literally means ‘a written document transferable by
delivery’
Q3. State any two presumptions applicable to negotiable instruments?
1) Presumption of Consideration
2)Presumption of Date
Q4. What is a promissory note?
A promissory note is a financial instrument that serves as a written promise by one
party (the "maker" or "issuer") to pay a specified sum of money to another party (the
"payee") at a predetermined future date, or on demand. It is a legally binding
document that outlines the terms and conditions of the loan or financial obligation.
Q5. Show the usual form of promissory note?
Rs 1000 Kolkata, 24th December,2010
1)Sixty days after date I promise to pay to Mr. Marc Antony or order the sum of
rupees one thousand only with interest thereon at 12% per annum for value received.
2) It must contain a promise or undertaking to pay e.g., Mr. B I.O.U. (I owe you) Rs.
1000/- or I am liable to pay to B Rs 1000/- etc.
3) Promise to pay must be unconditional
4) It must be signed by the maker.
5) The maker must be a certain person
Q6. What is the bill of exchange?
Ans: A bill of exchange is a written order used in international trade that instructs one
party to pay a specific amount of money to another party at a predetermined future
date. It involves three main parties: the drawer (who issues the bill), the drawee (who
is obligated to pay), and the payee (to whom the payment is made). This financial
instrument helps facilitate transactions and credit between parties in different
locations.
Q7. Present a specimen of bill of exchange
Specimen of a bill of exchange is shown below -
Q8. Is check a bill of exchange?
Yes, check is a bill of exchange.
Q9. What is a draft?
It is an order issued by one bank on another bank or on its own branch (usually drawn
on its own branch) instructing the latter to pay a specified sum of money to a specified
person or his order.

WORKMAN COMPENSATION

Q10. What is the year of enactment of workmen compensation act?

The Workmen's Compensation Act was enacted in India in the year 1923.
Q11. When can an employee claim for a compensation from the employer?
In case a personal injury is caused to a workman by accident arising out of and in the
course of his employment, his employer is liable to pay compensation in accordance
with the provision of the Act within 30 days from the date when it fell due otherwise,
he would also be liable to pay interest and penalty.
Q12. Where can an employee on his dependent approach in case of
refusal/failure of the employer to give the compensation?
Upon the failure or refusal of an employer to give compensation, an application is to
be made in Form - F to the Commissioner under the Workmen's Compensation Act,
1923 who is the Assistant Labour Commissioner or the Labour-cum-Conciliation
Officer.
Q13. What is the main purpose of formation of ESI?
The main purpose behind the formation of the Employees' State Insurance (ESI)
scheme is to provide social security and comprehensive healthcare benefits to
employees and their dependents in India.
Q14. When and where was ESI scheme first started?
ESI scheme was first implemented at Kanpur and Delhi on 24th February, 1952.
Q15. Name any two accounts where direct tax can be implemented?
Ans: Personal Income Tax and Corporate Income Tax
Q16. Full form of NRI?
NRI stands for Non-Resident Indian
Q17. What is meant by general tax for industries?
General tax for industries refers to various taxes that industries or businesses, in
general, are subject to pay as part of their operations and compliance with tax laws
and regulations.
Q18. Where is CENVAT applicable?
Central VAT (CENVAT) is applicable to practically all manufactured goods, so as to
avoid cascading effect on duty.
Q19. What kind of products invite custom duty?
Customs duty is imposed on goods that are imported or exported across international
borders.

CYBER LAW

Q20. Mention the year of enactment of Cyber Law?

Cyber Law was enacted in India in the year 2000
Q21. The law relating to information technology is contained to IT
Act? State the main purpose of designing the IT Act?
IT Act,2000 has been designed to give boost to e-commerce and trade and also to
facilitate e-Governance by means of reliable electronic records.
Q22. What does the term e-governance refer to?
The term e-commerce refers to the business transacted electronically. In common
usage, the term refers to trading of goods over the Internet.
Q23. What is the main purpose of digital signature?
The main purpose of a digital signature is to provide a secure and legally recognized
way to authenticate the identity of the sender of a digital message or document,
ensuring its integrity and preventing tampering.
Q24. Where does the "Asymmetric crypto system" and "Hash
function" is used for?
An asymmetric crypto system and hash function envelop and transform the initial
electronic record into another record which affects the authentication of the record.
Q25. What does the term T stand for in SMART in the context of
information technology?
Simple, Moral, Accountable, Responsive and Transparent (SMART) governance.
Q26. How is electronic record authenticated?
Electronic record authenticated by means of digital signature.
Q27. What is the main purpose of e-governance?
The basic purpose of e-governance is to simplify processes for all, i.e. government,
citizens, businesses, etc. at National, State and local levels. Also, the purpose of e-
governance is to bring in SMART governance implying: simple, moral, accountable,
responsive and transparent governance.
Q28. What are the security procedures incorporated in digital
signature? State any two?
Digital signatures do this by generating a unique hash of the message or document
and encrypting it using the sender's private key.
Q29. State any two types of penalties imposed against cybercrimes?
The two types of penalties imposed against cybercrimes are- fines and Imprisonment
or Jail Sentences
Q30. What is cyber regulation appellate tribunal?
The Cyber Regulation Appellate Tribunal (CRAT) is an independent body established
under the Information Technology Act, 2000 in India to adjudicate disputes related to
cybercrime, cybersecurity, and electronic transactions.
COMPANY ACT

Q31. Mention the year of enactment of company act?

Company act was enacted in the year 1956.
Q32. The term business is also known as a Company, Enterprise, and
Firm? State any two features of proprietor firm?
⮚ Single Ownership
⮚ No sharing of Profit and Loss
⮚ One-man’s Capital
⮚ One-man Control
⮚ Unlimited Liability
⮚ Less legal formalities
⮚ Freedom from Government regulations
Q33. Name any two types of proprietor business?
Sole Proprietorship, Partnership
Q34. What are the minimum number of partners required in a
partnership firm?
Minimum two partners are required in a partnership firm
Q35. State any two reasons why a partnership firm is dissolved?
⮚ The partners themselves decide to do so.
⮚ A new partner is admitted.
Q36. Specify the taxation rule for a partnership firm?
If the firm is registered under the Income Tax Act, the income will be divided among
partners and each partner will be assesses separately & if it is not registered then the
firm will be required to pay tax on its total profit.
Q37. What are the different types of partners in a partnership firm?
State any 2?
The different types of partners in a partnership firm are:
Active /Actual Partner
Dormant / Sleeping partner
Nominal partner
Partner In profits
Partner by estoppel / holding out
Secret Partner
Active/Actual Partner: Partner who takes active part in the day-to-day management of
the business
Dormant / Sleeping partner: A dormant partner contributes capital, shares profits and
losses of the firm but takes no part in the day-to-day management of the affairs of the
firm.

Q38. What are the characteristics of dormant partner?

The characteristics of a dormant partner are:
❑ A dormant partner contributes capital, shares profits and losses of the firm but
takes no part in the day-to-day management of the affairs of the firm.
❑ A dormant partner has money to invest but cannot spare time for the business.
❑ A dormant partner is liable for the liabilities of the business-like other partners.
❑ Public notice on retirement is not needed.
Q39. What is HUF stand for?
HUF stand for “A Hindu Joint Family or Hindu undivided family”.

ARBITRATION & RECONCILIATION

Q40. Arbitration & reconciliation was enacted in the year 1996.

Q41. What does "arbitral award" include?
"Arbitral award" includes an interim award.
Q42. What is the meaning of "arbitral tribunal"?
"Arbitral tribunal" means a sole arbitrator or a panel of arbitrators.
Q43. What is the role of arbitrator?
An arbitrator plays a crucial role in the arbitration process, serving as a neutral third
party responsible for resolving disputes between conflicting parties outside of formal
court proceedings.

CONSUMER PROTECTION ACT

Q43. Consumer protection act contains features relating to consumer

protection? State any two rights of consumers as per consumer
protection act?
Right to safety, right to information.
Q44. What do you mean by right to safety, in the context of consumer
protection act?
Right to Safety means to be protected against the sale of goods and services which are
spurious or hazardous to life and property.
Q45. What does a consumer mean as per consumer protection act?
Any person who buys goods for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payment and
includes any person who uses such goods with the approval of the buyer. It does not
include a person who buys goods for resale or for any commercial purpose
Q46. What do you understand by a complaint?
Complaint is an allegation made in writing to the National Commission, the State
Commission or the District Forum, by a person competent to file it, with a view to
obtaining relief provided under the Act.
Q47. State the main features of unfair trade practices?
Unfair business practices include misrepresentation, false advertising or
representation of a good or service, tied selling, false free prize or gift offers,
deceptive pricing, and noncompliance with manufacturing standards.
Q48. Define in two lines: “restrictive trade practices”?
Restrictive trade practices refer to agreements, actions, or behaviors among businesses
that limit competition or control market conditions, often through collusion,
monopolistic behavior, price-fixing, or unfair market division, thereby restricting
consumer choices and fair market access.
Q49. Who is a trader?
Trader in relation to any goods means a person who sells or distributes any goods for
sale and includes the manufacturer thereof, and where such goods are sold or
distributed in package form, includes the packer thereof.
Q50. What is consumer protection Council?
The Consumer Protection Council (CPC) typically refers to a governmental or non-
governmental organization established to safeguard consumer rights and interests.

SALE OF GOODS ACT

Q51. Mention the year of enactment of sales of goods act?

Sales of goods act was enacted in the year 1930
Q52. Name the parties involved in contract of sales?
Buyer and seller
Q53. What is meant by "transfer of property "as per sale of goods
act?
The "transfer of property" in the context of the Sale of Goods Act refers to the passing
of ownership or title from the seller to the buyer for a specific item or goods.
Q54. What do you mean by goods?
The term "goods" refers to tangible, movable items that are capable of being bought,
sold, or exchanged. These items can be physical and touchable, typically something
that can be seen, touched, felt, and transferred from one person to another.
Q55. What is the meaning of caveat emptor?
The principle termed as ‘caveat emptor’ means ‘buyer be aware’. Generally, buyer is
expected to be careful while purchasing the goods and seller is not liable for any
defects in goods sold by him.
Q56. What do you mean by auction sale?
Auction sale is special mode of sale. The sale is made in open after making public
announcement. Buyers assemble and make offers on the spot. Person offering to pay
highest price gets the goods. Usually, auctioneer is appointed to conduct auction.
Higher and higher bids are offered and sale is complete when auctioneer accepts a bid
Q57. State main duties of buyer as per sales of goods act?

LAW OF CONTRACT

Q58. What are the sources of Mercantile law?

The sources of Mercantile law are English Mercantile Law, Indian Statute Law,
Judicial Decisions, Customs & Usages.
Q59. What is agreement?
Every promise and every set of promises forming the consideration for each other is
an agreement.
Q60. What is the difference between agreement and contract?
➢ An agreement constitutes Offer & its acceptance whereas a contract
constitutes agreement & its enforceability.
➢ An agreement may or may not create a legal obligation whereas a contract
necessarily create a legal obligation.
Q61. What is an added feature of contract as compared to agreement?
A contract typically involves an additional element of enforceability through legal
means, whereas an agreement may lack the same level of legal binding.
Q62. Buying a flat should involve agreement or contract and why so?
➢ Buying a flat typically involves both an agreement and a contract, each
serving a distinct purpose in the process of purchasing real estate.
➢ An agreement, in the context of buying a flat, refers to the initial mutual
understanding or arrangement between the buyer and the seller regarding the
terms and conditions of the sale.
Q63. What is an express contract?
Express contract is a contract made by words spoken or written.
Q64. What do you mean by executed contract?
Contract where both the parties to the contract have fulfilled their respective
obligations under the contract.
Q65. What is mean by void-ab-initio?
"Void ab initio" is a legal term that denotes an action, contract, or legal provision that