FYUG Even Semester Exam, 2024
COMMERCE (2nd Semester)
Business Law (COMDSC-152T)
Paper Code: COMDSC-152T | Full Marks: 70 | Time: 3 Hours
SECTION-A: Short Answer Type
Answer any ten questions. (10 x 2 = 20 Marks)
Question 1
[2 Marks]
Define contingent contract.
A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.
Question 2
[2 Marks]
What is quasi-contract?
A quasi-contract is a legal obligation imposed by law to prevent unjust enrichment of one person at the expense of another, even though there is no formal agreement between the parties.
Question 3
[2 Marks]
Point out any two distinctions between valid contract and voidable contract.
- Enforceability: A valid contract is enforceable by law from the beginning, while a voidable contract is enforceable only at the option of the aggrieved party.
- Consent: In a valid contract, consent is free; in a voidable contract, consent is caused by factors like coercion or undue influence.
Question 4
[2 Marks]
Mention any two rights of an unpaid seller.
- Right of Lien: The right to retain possession of goods until payment is made.
- Right of Stoppage in Transit: The right to regain possession while goods are with a carrier if the buyer becomes insolvent.
Question 5
[2 Marks]
State any two elements of contract of sale.
- Two Parties: There must be a buyer and a seller.
- Transfer of Property: The seller must transfer or agree to transfer ownership of the goods to the buyer.
Question 6
[2 Marks]
Point out any two distinctions between condition and warranty.
- Essentiality: A condition is a stipulation essential to the main purpose of the contract, whereas a warranty is collateral to the main purpose.
- Remedy: Breach of condition allows the contract to be repudiated; breach of warranty only allows for a claim for damages.
Question 7
[2 Marks]
Write any two natures of Limited Liability Partnership (LLP).
- Separate Legal Entity: The LLP is distinct from its partners.
- Perpetual Succession: Changes in partners do not affect the existence of the LLP.
Question 8
[2 Marks]
Write a short note on minimum number of partners in an LLP.
Every LLP must have at least two partners. If at any time the number falls below two and the LLP carries on business for more than six months, the remaining partner may be held personally liable for the obligations incurred during that period.
Question 9
[2 Marks]
Point out any two distinctions between LLP and Partnership Firm.
- Liability: In an LLP, liability is limited to the partner's contribution; in a partnership firm, partners have unlimited personal liability.
- Governing Law: LLPs are governed by the LLP Act, 2008, while firms are governed by the Indian Partnership Act, 1932.
Question 10
[2 Marks]
State any two rights of the consumers.
- Right to Safety: Protection against marketed goods and services that are hazardous to life.
- Right to be Informed: The right to know the quality, quantity, and price of goods to prevent unfair trade practices.
Question 11
[2 Marks]
Who, under the Consumer Protection Act, can file a complaint?
A complaint can be filed by a consumer, any voluntary consumer association, the Central or State Government, or one or more consumers having the same interest.
Question 12
[2 Marks]
Point out any two features of the Competition Act, 2002.
- Prohibition of Anti-Competitive Agreements: Prevents agreements that cause an adverse effect on competition.
- Prohibition of Abuse of Dominant Position: Prevents enterprises from using their market power to restrict competition.
Question 13
[2 Marks]
What is a 'patent'?
A patent is an exclusive right granted by the government for an invention, providing the owner the legal authority to exclude others from making, using, or selling the invention for a limited period.
Question 14
[2 Marks]
Write a note on the term of 'copyright'.
In India, for literary, dramatic, musical, and artistic works, the term of copyright is generally the lifetime of the author plus sixty years from the beginning of the calendar year following the author's death.
Question 15
[2 Marks]
Point out two functions of 'trademark'.
- Identification: It identifies the origin of the product or service.
- Quality Assurance: It guarantees that the product meets a consistent standard of quality associated with that mark.
SECTION-B: Descriptive Answer Type
Answer any five questions. (5 x 10 = 50 Marks)
Question 16
[10 Marks]
Define contract. "All agreements are not contracts, but all contracts are agreements." Elucidate the statement.
Definition: According to Section 2(h) of the Indian Contract Act, "An agreement enforceable by law is a contract."
Elucidation:
- Agreements as the Base: Every contract begins as an agreement, which is a promise or set of promises forming consideration for each other.
- The Enforceability Filter: For an agreement to become a contract, it must satisfy the requirements of Section 10 (free consent, capacity, lawful consideration, etc.).
- Social Agreements: Many agreements (like an invitation to dinner) are not intended to create legal obligations and thus remain mere agreements, not contracts.
- Conclusion: Thus, while the contract is the final legal form (making all contracts agreements), not every informal agreement attains the status of a contract.
Question 18
[10 Marks]
What is sale under the Sale of Goods Act? Explain the points of difference between 'Sale and Agreement to Sell'.
Definition of Sale: A contract of sale where the property in the goods is transferred from the seller to the buyer immediately.
| Basis |
Sale |
Agreement to Sell |
| Transfer of Property |
Immediate transfer of ownership. |
Transfer takes place at a future date. |
| Nature of Contract |
Executed contract. |
Executory contract. |
| Risk of Loss |
Lies with the buyer. |
Lies with the seller. |
| Right of Resale |
Seller cannot resell. |
Seller can resell to a third party. |
Question 19
[10 Marks]
Who is an unpaid seller? What are the rights of unpaid sellers?
An unpaid seller is one who has not been paid the whole of the price or to whom a bill of exchange or other negotiable instrument has been given as conditional payment, and the condition has not been fulfilled.
Rights of Unpaid Seller:
- Against Goods:
- Lien: Retaining goods for the price.
- Stoppage in Transit: Stopping goods in the hands of a carrier.
- Resale: Selling the goods under certain conditions.
- Against Buyer Personally:
- Suit for Price: Suing the buyer if property has passed.
- Suit for Damages: Suing for non-acceptance of goods.
- Suit for Interest: Claiming interest on the unpaid amount.
Question 20
[10 Marks]
Define the LLP Act, 2008. State in brief the major contents of LLP agreement.
The Limited Liability Partnership Act, 2008 was enacted to provide a corporate business vehicle that combines the benefits of limited liability of a company with the flexibility of a partnership.
Major Contents of LLP Agreement:
- Name of the LLP and the nature of its business.
- Names and addresses of all partners.
- Amount of contribution (capital) by each partner.
- Profit and loss sharing ratio.
- Rights and duties of partners.
- Provisions for admission, resignation, and retirement of partners.
Question 23
[10 Marks]
What are the objectives of the 'Competition Act, 2002'? Point out five distinctions between 'Competition Act and MRTP Act'.
Objectives:
- To prevent practices having adverse effects on competition.
- To promote and sustain competition in markets.
- To protect the interests of consumers.
- To ensure freedom of trade carried on by other participants in markets in India.
Distinctions:
| Feature |
MRTP Act |
Competition Act |
| Focus |
Curbing Monopolies. |
Promoting Competition. |
| Dominance |
Dominance itself was restricted. |
Abuse of dominance is restricted. |
Registration of agreements was mandatory under MRTP; not required under Competition Act.
Penalties under MRTP were mild; Competition Act provides for heavy fines.
Competition Act includes the concept of "Combinations" (Mergers/Acquisitions).