Business Law Multiple Choice Questions and Answers for Practice

16. How many contracts can be formed under the contract of indemnity?

1. One
2. Two
3. Three
4. Four

17. How many days of grace are allowed where a note or bill, which Is not expressed to be payable on demand, at sight or on presentment?

1. 7 days
2. 3 days
3. 30 Days
4. 2 days

18. How many members exist in the district level forum?

1. Three
2. Two
3. Four
4. Five

19. How many parties Should be in the case of bill of exchange?

1. One
2. Two
3. Three
4. Four

20. How Many Rights are avail to consumers under consumer ProtectionAct?

1. Seven
2. Eight
3. Five
4. Six

21. If principal debtor is adjudged insolvent as per law, the surety...........be discharged from its liability.

1. Will
2. Will not
3. Partly
4. Can

22. If Surety remains silent after informing him about the changes in the terms of contract of guarantee is said

1. Free Consent
2. Not to be Consent
3. To be Implied Consent
4. Consent

23. If the Loss occurs because of an accident and not in the manner stated in the contract, Compensation must be paid by Indemnifier. The Given Statement is

1. True Statement
2. False Statement
3. Both
4. None

24. In a contract of guarantee there are...........parties.

1. Two
2. Three
3. Four
4. Five

25. In case of Bailment, Delivery of Goods will be done...............Purpose.

1. Permanent
2. Temporary
3. Long term
4. None

26. In case of contract of indemnity, the liability of promiser is of.............Nature.

1. Fiction
2. Primary
3. Secondary
4. None

27. In contract of guarantee, the liability of surety will arise

1. When principal debtor makes payment
2. When principal debtor promises to make payment
3. When principal debtor defaults the payment
4. When creditor denies to accept payment

28. In which of the following circumstances surety will be discharged from his responsibility?

1. By giving a notice
2. By death of surety
3. By loss of security
4. All of the Above.

29. Maximum number of members in case of Private Company?

1. Unlimited
2. 50
3. 200
4. 7

30. Memorandum of Association regulates the relationship with which parties?

1. Outsiders
2. Shareholders
3. Employees
4. Management