BUSNIESS ENVIRONMENT AND LAW

Assignment A

Question1: “The fundamental attribute of corporate personality is that company is a legal entity distinct from the members.’’ Elucidate the statement. Also specify the important features of a company.

Question2:  Discuss the essential elements of a valid contract.

 
3.     Explain - ‘different modes of crossing of a cheque’ and section 138 as per the provisions of the Negotiable Instrument Act, 1881.      

Question4: What are the characteristics of negotiable instrument? Discuss the privileges of holder in due course as per the provision of the Negotiable Instrument Act.

 
5.       Elaborately explain the essential features of the consumer protection act 1986. Also briefly discuss unfair trade practice and restrictive trade practice as discussed under consumer protection Act?      

  
     
Assignment B

Read the case study given below and answer the questions given at the
                                                         
                                                       Case Study
 
 
                                     Aditya Mass Communication Private Limited
                                                                   Vs.
                                       A.P. state Road Transport Corporation
 
A.P. State Road Transport Corporation, Hyderabad advertised tender notice on calling for tenders for display of advertisements on the buses owned by it. According to the condition of the Tender Notice, each tender form had to be accompanied by a demand draft for Rs 20 lakhs and tender forms completed in all respects had to be put in the tender box. The accompanying sum of money was the Earnest Money Deposit (E.M.D). Clause (10) of the terms provided that the tender will be opened at 3:00 p.m. on October 31, 1996, in presence of the tenderers or their authorized agents. Clause (14) provided that tenderers will not be permitted to withdraw their tender after the tenders were opened .Clause (15) provided that if the highest tenderer backs out from taking up the agency , for whatsoever reason, the E.M.D. paid by him will be forfeited.
Aditya mass Communication Private Limited submitted its duly filled tender along with demand draft of Rs. 20 lakhs. In relation to this tender, another person approached the High Court and got an order restraining the Transport Corporation from proceeding further with the tender. Following the order, the A.P. State Road Transport Corporation opened the tender box at 3 p.m. and found six sealed covers. In view of the directions of the High Court, the covers were again placed back in the tender box without opening the seals. The signature of the tenderers and their agents was taken to this effect .The tenders were not opened to find out the highest bidder. Aditya Mass Communication Private Limited wrote a letter on November 11, 1996 stating that no reasons were given to him for non-opening of the tenders and that he could not keep the huge amount of Rs 20 lakhs locked in with all the uncertainty associated with the tender. It, thus, requested for return of the Earnest Money Deposit. A.P. State Road Transport Corporation replied on November 14, 1996 that the Aditya Mass communication had signed on the note recording the proceedings of opening the tender box and putting back sealed covers. Thus, it could not put up the argument that no reasons for non-opening of the tender was given on it. The letter notified that the tenders would be opened on November 16, 1996 at 11:30 hrs. Aditya Mass Communication once again wrote a letter on November 15, 1996 that the question of their participation in the opening of tenders did not arise as they asked for the return of E.M.D. The A.P. State Road Transport Corporation went ahead with the opening of the tender, found Aditya Mass Communication to be the highest bidder and awarded the tender to it. Aditya Mass Communication was informed of this but it demanded refund of Earnest Money Deposit. The A.P. State Road Transport Corporation following the terms of tender forfeited the earnest money deposit of Aditya Mass Communication.

Question1: Elaborately state the important legal issue/s covered under this case. 

Q 2: What are the essential features of a tender?

Question 3: Give your reasons in support of your decision for the issue discussed in this case.

Assignment c

 
1.    Annual – general Meeting is required to be held---    

a.    By a private company only
b.    By a public company only
c.    By a company limited by guarantee only
d.    By all kinds of companies

2.    An acceptance is complete and effective only when it has been---  

a.    Communicated to the offerer
b.    Merely mentally accepted
c.    Externally manifested
d.    Kept in the drawer

3.    Name of a company can be changed by passing a special resolution and with the approval of

a.    The company law tribunal
b.    The Central Government
c.    The Registrar of Companies
d.    None of these

4.    Which of the following is a mode of discharge of contract---  

a.    By impossibility of performance
b.    By lapse of time
c.    By breach of contract
d.    All of above

5.    Limited liability means liability of its---  

a.    Debtors is limited
b.    Creditor is limited
c.    Members is limited
d.    Debenture holder is limited

6.    In a contract of sale, property means
a.    Raw-materials
b.    Moveable goods
c.    Ownership
d.    Immovable property

7.    The goods which are yet to be acquired by the seller, are called

a.    Existing goods
b.    Contingent goods
c.    unascertained goods
d.    future goods

8.    A contract becomes voidable if it has been caused by---  
a.    Coercion
b.    Fraud
c.    Undue influence
d.    All of them

9.    If the goods have perished, the contract of sale of such specific goods, will become---  
a.    Voidable
b.    Void 
c.    Illegal
d.    None of these

10.    Articles can be altered by
a.    Ordinary resolution
b.    Special resolution
c.    Resolution requiring special notice      
d.    Unanimous resolution

11.    A contract entered into between the parties by words is called---  
a.    An express contract
b.    An implied contract
c.    A quasi contract
d.    An excited contract

12.    Acceptance of an offer is complete as against the offeror as soon as
a.    The offerer knows about it
b.    The letter of acceptance is posted
c.    The letter of acceptance is signed by offeree
d.    The letter is handed over to a delivery person

13.    If a company fails to pay its debts suit can be filed against the---  

a.    Directors
b.    Members
c.    Officers
d.    Company

14.    A contract with a minor is

a.    Illegal
b.    Valid
c.    Void
d.    Voidable

15.    Who is liable for the supply of necessaries to a minor---  

a.    His guardian
b.    His manager
c.    His property
d.    He himself

16.    A prospectus is issued--- 

a.    By a private limited company
b.    By a public limited company 
c.    By a company limited by guarantee
d.    None of these

17.    When, before the contract becomes due for performance, the promisor declares his intention of not performing his promise, it is called---  

a.    Remission
b.    Waiver
c.    Alteration
d.    Anticipatory breach

18.    A bailment cannot be made about---  

a.    Car
b.    Furniture
c.    Money
d.    Television

19.    The damages which arise in the usual course of things happening from the breach of contract, are called---  

a.    Remote damages
b.    Ordinary damages
c.    Special damages
d.    Nominal damages

20.    When a person is employed to represent another in dealings with third person, it is a contract of---  

a.    Bailment
b.    Guarantee
c.    Agency
d.    Pledge

21.    Which of the following is not an essential element of a contract of sale---  
a.    Goods as a subject matter
b.    Transfer of property in goods
c.    Price
d.    Railway receipt

22.    In return for a new television, Raju agrees to give his old television valued at Rs. 3,000 and an amount of cash worth Rs. 5,000 to Ganesh. This is a---
a.    Barter
b.    Exchange
c.    Contract of sale of goods
d.    Sale of approval

23.    Which of the following rights is held by an unpaid seller---  
a.    Right of lien
b.    Right of stoppage in
c.    Right of resale
d.    All of these

24.    After exercising the right of lien, the seller can resell the goods of perishable nature---  
a.    After giving 7 days notice of resale to buyer
b.    After giving 1 days notice of resale to buyer
c.    Without giving any notice
d.    None of these

25.    Which of the following is not a remedy for breach of contract---  

a.    Rescission of the contract
b.    Restitution of benefit
c.    Suit for damages
d.    Alteration of the contract

26.    A contract by which one party promises to save the other from loss is called---  
a.    Contract of guarantee
b.    Contract of indemnity
c.    A quasi contract

27.    Surety’s liability is

a.    Primary
b.    Secondary
c.    Absolute
d.    None of these

28.    Crossed cheques payable to bearer are negotiated by

a.    Endorsement and delivery
b.    Delivery
c.    Assignment
d.    None of these

29.    In a contract of sale, which of the following is treated as implied condition

a.    That the seller has title to goods
b.    That goods are similar to description
c.    That goods are according to sample shown
d.    All of these

30.    Consideration must move at the desire of---  

a.    The promisor
b.    The promise
c.    A third party
d.    None of them

31.    Which of the following does not relate to ‘termination of agency by operation of law’

a.    Death of principal
b.    Insolvency of principal
c.    Destruction of subject-matter
d.    Revocation of authority by the principal

32.    Which of the following sentence is a valid promissory note---  

a.    I promise to pay Mohan or order Rs. 1,000.
b.    I promise to pay Hari Rs. 2,000 worth of shares
c.    I promise to pay Naraynan in East India Bonds
d.    I promise to pay Rakesh Rs. 5,000 and to deliver 50 kg of sugar.

33.    A stipulation collateral to the main purpose of the contract, is called a---  

a.    Condition
b.    Warrenty
c.    Guarantee
d.    None of these

34.    A person who receives a negotiable instrument for consideration, before maturity, and in good faith, is called
a.    Holder for value
b.    Holder
c.    Holder in due course
d.    None of these

35.    A director must vacate his office if he fails to obtain qualification shares within
a.    1 week
b.    2 week
c.    1 month
d.    2 month

36.    Which of the following rights are available to a finder of goods---
a.    Right of lien
b.    Right to file a suit for reward
c.    Right of sale of goods
d.    All of these

37.    A private company has at least---  
a.    7 members
b.    3 members
c.    3 director
d.    2 member

38.    A cheque payable to order may be negotiated---  

by delivery
By endorsement
By endorsement & delivery
None of these
39    Which of the following endorsements is invalid---     
 Options     
a.         Restrictive endorsement     
b.         Conditional endorsement     
c.         Special endorsement     
d.         Partial endorsement

40.    When a cheque bears across its face an addition of the words “&” between two parallel transverse lines, it is called---  
a.    Special crossing
b.    Restrictive crossing
c.    general crossing
d.    double crossing