Students should practice Auction Sale – CA Foundation Business Law MCQ Questions with Answers based on the latest syllabus.
Auction Sale – Business Law MCQ Questions with Answers
1. An auction sale is complete on the _________.
(a) delivery of goods
(b) payment of price
(c) fall of hammer
(d) None of the above
Answer:
(c) fall of hammer
2. 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)
Answer:
(b) a separate contract of sale
3. 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
Answer:
(a) not more than one agent to bid on his behalf
4. 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)
Answer:
(c) either (a) or (b)
5. X purchased a VCD at a public auction. Neither Auctioneer nor X knew at that time that the VCD was a stolen property. In such case, the true owner can _________.
(a) recover the goods from X
(b) sue the Auctioneer for fraud
(c) both (a) and (b)
(d) either (a) or (b)
Answer:
(a) recover the goods from X
6. At an auction sale, the bidder can withdraw his bid _________.
(a) before fall of hammer
(b) at any time during auction
(c) before payment of price
(d) cannot withdraw bid
Answer:
(a) before fall of hammer
7. 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
Answer:
(b) Damping
8. _________ is a form of combination of buyers to prevent competition among themselves at an auction sale.
(a) Knock-out agreement
(b) monopoly agreement
(c) oligopoly agreement
(d) puffing agreement
Answer:
(a) Knock-out agreement
9. 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
Answer:
(c) voidable at the option of the buyer
10. Unless excluded by an agreement to the contrary, where after a contract has been made but before it has 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’
Answer:
(d) Both ‘a’ and ‘c’
11. Any imposition, increase, decrease or remission of (i) Customs or Excise Duty on Goods and (ii) Tax on the Sale or Purchase of Goods, subsequent to the sale, in case of decrease of tax, shall be deducted from the contract price by the Buyer and he shall not be liable to pay or be sued for such deduction.
(a) True
(b) Depends on the contract
(c) False
(d) Both ‘a’ and ‘b’
Answer:
(d) Both ‘a’ and ‘b’
State Whether The Following are True or False:
- In case of sale by auction, a bid can be recalled at any time before the fall of hammer.
- An auctioneer shall be liable for damages if the auctioneer had no authority to sell the goods.
- If the buyer’s possession is disturbed by the auctioneer or the seller then buyer has a right to claim compensation.
Answer:
- True
- True
- True