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CA CPT Mercantile Law - The Sale of Goods Act, 1930 Important Questions

Mercantile Law - The Sale of Goods Act, 1930

Exam Duration: 45 Mins Total Questions : 30

1 )

The Sale of Goods Act, 1930 extends to the whole of India, except the state of

(a)
Maharashtra
(b)
Jammu and Kashmir
(c)
Tamilnadu
(d)
Uttar Pradesh

2 )

"Delivery" within the meaning of the Sale of Goods Act, can be

(a)
Symbolic
(b)
Actual
(c)
Constructive
(d)
either (a) or (b) or (c)

3 )

The definition of the term "Documents of Title to Goods" given in the Sale of Goods Act, is descriptive

(a)
True
(b)
Partly True
(c)
False
(d)
Subject to conditions

4 )

"Goods" under the Sale of Goods Act, includes-----

(a)
Money
(b)
Actionable Claim
(c)
Both (a) and (b)
(d)
Neither (a) nor (b)

5 )

The definition of "Goods" as given in Sale of Goods Act, is the same as given to Movable Property under the Indian contract Act, 1872.

(a)
True
(b)
Partly true
(c)
False
(d)
None of the above

6 )

In a Contract of Sale, where Seller becomes insolvent after the Buyer has paid the price, the Buyer can

(a)
claim the goods from Official Receiver of the Seller
(b)
claim a rateable dividend for price paid
(c)
either (a) or (b)
(d)
sue the Official Receiver for refund of entire price paid.

7 )

A contract for sale of goods to be delivered at a future date shall be ---- even if the Seller has got the goods in present possession.

(a)
Invalid
(b)
Illegal
(c)
Valid
(d)
Voidable at the option of the Buyer

8 )

Contract of Sale of goods under Section 5 of the Sale of Goods Act, may provide for -

(a)
Delivery of goods and payment by instalments
(b)
Immediate payment and immediate delivery
(c)
Either (a) or (b)
(d)
Neither (a) nor (b)

9 )

A Contract of Sale which provides that delivery of goods and payment of price shall both be postponed is -

(a)
called as an Agreement to Sell
(b)
called as a Contingent Contract
(c)
Valid as a Contract of Sale
(d)
Voidable at the option of either party

10 )

Where no price is fixed by express agreement or by implication, the Buyer shall pay the Seller -

(a)
Net Realisable Value
(b)
Reasonable Price
(c)
Resale Price
(d)
Adhoc Price

11 )

Where a party in whose favour the stipulations as to time in a contract of sale operates, waives the stipulations, then that party afterwards cannot treat the failure to comply with them by the other party, as giving right to rescind the contract.

(a)
True
(b)
Partly True
(c)
False
(d)
None of the above

12 )

Which of the following is not correct regarding appropriation of goods for unascertained goods?

(a)
The assent must be given either before or after appropriation
(b)
Buyer or seller can make appropriation.

13 )

Sec.14 of the Sale of Goods Act recognises ----- as to right of the Seller to sell the goods

(a)
Implied Warranty as to Title
(b)
Implied Condition as to Title
(c)
Implied Warranty as to Possession
(d)
Implied Condition as to Possession

14 )

Jn a sale of specific or ascertained goods, the property therein is transferred to the Buyer -

(a)
upon delivery of goods
(b)
upon payment of price
(c)
at such time as the parties intend it to be transferred
(d)
at such time as decided by the Court.

15 )

In case of sale on "sale or return" or "approval" basis, property passes to the Buyer when -

(a)
Buyer retains the goods for more than the contract-stipulated time
(b)
Buyer retains the goods for more than a reasonable time
(c)
neither (a) nor (b)
(d)
either (a) or (b)

16 )

In case of a sale of goods by a person in possession of goods under a voidable contract, he can pass a valid title to the Buyer, as provided in Section ----of the Sale of Goods Act.

(a)
26
(b)
27
(c)
28
(d)
29

17 )

Under Sec.35 of the Sale of Goods Act,----- is bound to deliver goods, upon Buyer's application

(a)
Seller
(b)
Agent of Seller
(c)
carrier
(d)
Agent of carrier

18 )

What is the appropriate place of delivery in respect of goods agreed to be sold

(a)
At the place at which they are at the time of sale
(b)
At the place at which they are at the time of the agreement to sell.
(c)
At the place at which they are manufactured or produced
(d)
At the place determined by the carrier

19 )

Where goods are delivered to the Buyer which he has not previously examined, acceptance is not complete unless and until -

(a)
Seller gives a reasonable opportunity to the Buyer for examining the goods
(b)
Seller examines the goods on behalf of the Buyer
(c)
Seller issues a quality certificate in respect of the goods
(d)
Seller does all of the above

20 )

A agreed to sell 100 quintals of rice to B, B does not like that quality and refuse them -

(a)
B can do so and he is not liable for any loss
(b)
B can do so, but he is liable to pay for care and custody of goods
(c)
B has no right to do so but he is liable to pay damages
(d)
None of the above

21 )

Buyer is not bound to return rejected goods. It is sufficient if the Buyer -

(a)
returns the goods to the Carrier / Transporter
(b)
returns the goods to the Seller's Agent
(c)
intimates the Seller that he refuses to accept the goods
(d)
dishonours the Bill of Exchange drawn for the price

22 )

For exercising right of stoppage in transit, notice of stoppage may be given -

(a)
to the person in actual possession of Goods
(b)
to the Principal of the person mentioned in (a)
(c)
either (a) or (b)
(d)
both (a) and (b)

23 )

The Unpaid Seller's right of lien is to -

(a)
re-organize possession of goods
(b)
re-sell the goods
(c)
regain possession of goods
(d)
retain possession of goods

24 )

To exercise the Unpaid Seller's right of lien, the possession of goods should be with -

(a)
Buyer or his agent
(b)
Carrier or Transporter or Bailee
(c)
Seller or his agent
(d)
Any of the above

25 )

Where the goods are of perishable Nature, unpaid seller can

(a)
Sue for price
(b)
Repudiate the contract before due date
(c)
Resell the goods
(d)
Sue for damages

26 )

Buyer has a right to recover money paid to the Seller where consideration for payment of it has failed, e.g. where the Buyer is deprived of Goods by their true owner, he may recover the price for breach of condition as to title.

(a)
True
(b)
Partly True
(c)
False
(d)
None of the above

27 )

Where under a contract of sale, the price is payable on a certain day irrespective of delivery and Buyer wrongfully neglects or refuses to pay the price, the Seller can sue the Buyer for the price of goods, if the property in goods -

(a)
has not passed to Buyer
(b)
has passed to Buyer
(c)
either (a) or (b)
(d)
neither (a) nor (b)

28 )

Under Sec.57, where Buyer sues the Seller for damages for non-delivery of goods, damages may be determined based on -

(a)
the price of similar goods available in the market
(b)
the price of same kind of goods in other contracts relating to the same period
(c)
the profit which the Buyer would have made if the contract had been carried out
(d)
anyone or more of the above

29 )

In the case of sale by auction, the Seller of goods has a right to bid at the auction -