Business Law MCQ Multiple Choice Questions Answers

Q: 2. A contract of Indemnity is a contract for

Correct Answer is: New offer against Old Offer

Q: 4. A promissory note must contain

Correct Answer is: can be Conditional undertaking or Unconditional undertaking

Q: 5. A..........is a contract to perform the promise or discharge the liability of third person in a case of principal debtor‟s default.

Correct Answer is: Contract of pledge

Q: 8. Appeal against the national forum can be done in

Correct Answer is: Taluka Court

Q: 11. Consumer Protection Act is applicable to whom?

Correct Answer is: Specific Goods

Q: 12. Contract of bailment is done for

Correct Answer is: All of the Above

Q: 13. Guarantee Contract Extends to Series of transactions is called

Correct Answer is: Alternative Guarantee

Q: 14. Guarantee which is limited to a single transaction is called

Correct Answer is: Separate Guarantee

Q: 15. How company‟s name can be Changed?

Correct Answer is: The approval of the central government

Welcome to our Business Law MCQs section, designed to help students and exam aspirants master key legal concepts and prepare effectively for assessments and interviews.

About Business Law MCQ Questions

Business Law MCQs cover essential topics such as contracts, intellectual property, corporate governance, and more. These questions are crafted to enhance your understanding of legal principles and their practical applications in the business world.

Why Practice Business Law Objective Questions?

Practicing Business Law MCQs offers numerous benefits, including better preparation for school and college exams, improved performance in competitive exams, and enhanced readiness for job interviews. Regular practice helps reinforce your knowledge and builds confidence in applying legal concepts.

Who Should Use These MCQs?

Business Law MCQ Questions for Practice

1. ............bailment would be either for the exclusive benefits of either bailor or Bailee.

Gratuitous Bailment
Non- Gratuitous Bailment
General Bailment
None

2. A contract of Indemnity is a contract for

Rectification of Mistake
Increase of Damages
Protection Against Loss
New offer against Old Offer

3. A person cannot work as a managing director of more than how many companies at a time?

Two
Three
Four
Five

4. A promissory note must contain

Undertaking
Conditional Undertaking
Unconditional Undertaking
can be Conditional undertaking or Unconditional undertaking

5. A..........is a contract to perform the promise or discharge the liability of third person in a case of principal debtor‟s default.

Contract of Indemnity
Contract of guarantee
Contract of agency
Contract of pledge

6. An appeal against the order of state consumer dispute redressal commission can be done in

30 Days
15 Days
7 Days
21 Days

7. Any person who for consideration became the possessor of a promissory note, bill of exchange or cheque is called as

Acceptor in due Course
Acceptor
Holder in due Course
Holder

8. Appeal against the national forum can be done in

District Court
High Court
Supreme Court
Taluka Court

9. As per schedule I, form of Memorandum of Unlimited Company not having share capital is mentioned in which Table?

Table A
Table B
Table C
Table D

10. Can minor be a Principal debtor in case of contract of guarantee?

True Statement
False Statement
Both
None

11. Consumer Protection Act is applicable to whom?

Immovable Goods
Movable Goods
Specific Goods
All Goods and Services

12. Contract of bailment is done for

Money
Building
Motor Car
All of the Above

13. Guarantee Contract Extends to Series of transactions is called

Specific Guarantee
Special Guarantee
Continuing Guarantee
Alternative Guarantee

14. Guarantee which is limited to a single transaction is called

Continuous Guarantee
Continuing Guarantee
Specific Guarantee
Separate Guarantee

15. How company‟s name can be Changed?

An ordinary Resolution
By a Special Resolution
The approval of the central government
A Special Resolution and with the Approval of the Central Government

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

One
Two
Three
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?

7 days
3 days
30 Days
2 days

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

Three
Two
Four
Five

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

One
Two
Three
Four

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

Seven
Eight
Five
Six

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

Will
Will not
Partly
Can

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

Free Consent
Not to be Consent
To be Implied Consent
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

True Statement
False Statement
Both
None

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

Two
Three
Four
Five

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

Permanent
Temporary
Long term
None

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

Fiction
Primary
Secondary
None

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

When principal debtor makes payment
When principal debtor promises to make payment
When principal debtor defaults the payment
When creditor denies to accept payment

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

By giving a notice
By death of surety
By loss of security
All of the Above.

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

Unlimited
50
200
7

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

Outsiders
Shareholders
Employees
Management

Business Law MCQ Multiple Choice Questions Answers | Quiz for Practice

About Business Law MCQ Questions

Why Practice Business Law Objective Questions?

Who Should Use These MCQs?

Business Law MCQ Questions for Practice

1. ............bailment would be either for the exclusive benefits of either bailor or Bailee.

2. A contract of Indemnity is a contract for

3. A person cannot work as a managing director of more than how many companies at a time?

4. A promissory note must contain

5. A..........is a contract to perform the promise or discharge the liability of third person in a case of principal debtor‟s default.

6. An appeal against the order of state consumer dispute redressal commission can be done in

7. Any person who for consideration became the possessor of a promissory note, bill of exchange or cheque is called as

8. Appeal against the national forum can be done in

9. As per schedule I, form of Memorandum of Unlimited Company not having share capital is mentioned in which Table?

10. Can minor be a Principal debtor in case of contract of guarantee?

11. Consumer Protection Act is applicable to whom?

12. Contract of bailment is done for

13. Guarantee Contract Extends to Series of transactions is called

14. Guarantee which is limited to a single transaction is called

15. How company‟s name can be Changed?

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

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?

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

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

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

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

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

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

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

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

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

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

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

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

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

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Business Law MCQ Multiple Choice Questions Answers | Quiz for Practice

About Business Law MCQ Questions

Why Practice Business Law Objective Questions?

Who Should Use These MCQs?

Business Law MCQ Questions for Practice

1. ............bailment would be either for the exclusive benefits of either bailor or Bailee.

2. A contract of Indemnity is a contract for

3. A person cannot work as a managing director of more than how many companies at a time?

4. A promissory note must contain

5. A..........is a contract to perform the promise or discharge the liability of third person in a case of principal debtor‟s default.

6. An appeal against the order of state consumer dispute redressal commission can be done in

7. Any person who for consideration became the possessor of a promissory note, bill of exchange or cheque is called as

8. Appeal against the national forum can be done in

9. As per schedule I, form of Memorandum of Unlimited Company not having share capital is mentioned in which Table?

10. Can minor be a Principal debtor in case of contract of guarantee?

11. Consumer Protection Act is applicable to whom?

12. Contract of bailment is done for

13. Guarantee Contract Extends to Series of transactions is called

14. Guarantee which is limited to a single transaction is called

15. How company‟s name can be Changed?

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

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?

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

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

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

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

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

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

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

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

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

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

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

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

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

Your Score

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