Top 1000+ Solved Fundamentals of Laws and Ethics MCQ Questions Answer
Q. In an auction sale of goods, the seller makes use of pretended bidding to raise the price, the sale is —
a. Valid
b. void
c. voidable at the instance of the buyer
d. unenforceable
Q. An auction sale is complete on the -
a. delivery of goods
b. payment of price
c. fall of hammer
d. None of the above
Q. In the case of sale by auction, where goods are put for sale in lots, each lot is prima facie the subject of—
a. a single contract of sale
b. a separate contract of sale
c. either (a) or (b)
d. both (a) and (b)
Q. In the case of sale by auction, the seller of goods has a right to bid at the auction
a. with the permission of the auctioneer
b. only when the right to bid has been expressly reserved
c. even when the right to bid has been impliedly reserved
d. with the permission of the bidder
Q. Where a right to bid at the auction has been expressly reserved by the seller, the seller can depute —
a. not more than one agent to bid on his behalf
b. not more than two agents to bid on his behalf
c. not more than three agents to bid on his behalf
d. any number of agents to bid on his behalf
Q. In case of sale by auction, a bid can be recalled at any time before the fall of hammer.
a. True
b. Depends on the auctioneer
c. False
d. None of the above
Q. In the case of sale by auction, as soon as the hammer falls, goods become the property of the buyer —
a. even if there is a condition that the goods shall be" removed before payment
b. only on payment
c. only if there is a condition that the goods shall not be removed before payment
d. only on delivery
Q. Where the sale is not notified to be subject to a right to bid on behalf of seller, it shall not be lawful for the seller—
a. to bid for himself
b. to employ any person to bid at such sale
c. either (a) or (b)
d. neither (a) nor (b)
Q. An act by which an intending bidder is discouraged or dissuaded from bidding in the auction sale is called
a. Puffer
b. Damping
c. Dumping
d. Knockout
Q. …………….is a form of combination of buyers to prevent competition among themselves at an auctionsale.
a. Knock-out agreement
b. monopoly agreement
c. oligopoly agreement
d. puffing agreement
Q. In pretended bidding, sale is
a. voidable at the option of the seller
b. valid
c. voidable at the option of the buyer
d. illegal
Q. In an auction sale, the property shall be sold to be
a. Lowest bidder
b. Highest bidder
c. Any bidder
d. All bidders
Q. On auctioneer will be liable for damages:
a. If the auctioneer had no authority to sell the goods.
b. If there is a defect in principal's title.
c. If the buyer's possession is disturbed by auctioneer principal or auctioneer himself.
d. All the above
Q. Unless excluded by an agreement to the contrary, where after a contract has been made but before ithas been performed, excise duty is increased
a. The buyer would have to pay increased price
b. The seller cannot charge increased price
c. The seller can charge increased price
d. Both 'a' and 'c'