(Please write your Exam Roll No.) Exam Roll No. ………………………..

END TERM EXAMINATION

FIRST SEMESTER [BBA (MOM)] JANUARY-2010
Paper Code: BBA (MOM) 105 Subject: Business Law

Time: 3 Hours Maximum Marks: 75

Note: Attempt all questions.

Q1. (a) State whether the following statements are true or false:-

(1 Mark Each)

(i) Agreement and contract is one and the same thing.

(ii) If performance becomes difficult the contract is automatically discharged.
(iii) A servant is an agent.
(iv) In a contract of indemnity one party promises to save the other from loss caused
to him by the conduct of the promisor.
(v) A one-man company is legal entity in the eyes of law.
(vi) An advertisement by a company in newspaper to sell its share may amount to
prospectus.
(vii) A special resolution is passed by at least three-fourth (3/4) majority of members
who are entitled to vote in person or by proxy.
(viii) Cheques are always payable on demand.
(ix) The term ‘contact of sale’ includes both a ‘sale’ and an ‘agreement to sell’.
(x) Contingent goods are a type of future goods.

(b) Rewrite the following sentences after deleting the wrong alternative:

(1 Mark Each)

(i) A continuing guarantee can be/can never be revoked.

(ii) A government company can be/cannot be a ‘private’ company in form.
(iii) A ‘foreign company’ and a ‘foreign controlled company’ are/are not one and the
same thing.
(iv) There are two three parties in a bill of exchange.
(v) In discharge of a contract, rescission/remission means cancellation of the
contract.

Q2. Explain the doctrine of ‘caveat emptor’. Discuss the cases in which the rule of caveat emptor
does not apply.

(10,5)
 Or

“No seller of goods can pass a better title than what he himself has”. Explain. Discuss the
exceptions to this rule.

Q3. When shall a person under Negotiable Instruments Act, 1881, be called ‘a holder in due
course’? Explain the privileges available to a holder in due course.

(5,10)

Or

What is crossing of a cheque? Does “not Negotiable” crossing render a cheque non-
transferable? What is the effect of not negotiable crossing? Explain.

(3,2,10)

Q4. “Memorandum is the constitution of a company”. Explain this statement and discuss the
clauses which are required to be mentioned in the Memorandum under the Companies Act,
1956.

(5,10)

Or

What is the minimum number of directors in case of a public company and a private company?
Explain the various methods of appointment of directors.

(3,12)

Q5. Write explanatory notes on any three of the following:-

(5,5,5)

(a) Articles of association

(b) Essential characteristics of a company
(c) Essentials of a negotiable instrument
(d) Conditions and warranties
(e) Bailment and pledge

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