Students should practice Transfer of Ownership – CA Foundation Business Law MCQ Questions with Answers based on the latest syllabus.
Transfer of Ownership – Business Law MCQ Questions with Answers
1. Property in the goods ‘in the Sale of Goods Act means’ _________.
(a) ownership of goods
(b) possession of goods
(c) asset in the goods
(d) custody of goods
Answer:
(a) ownership of goods
2. It is necessary to determine the precise moment of time at which the ownership of goods passes from seller to the buyer because _________.
(a) risk passes with property
(b) action can be taken only by the owner
(c) suit for price by the seller does not lie unless the property has passed to the buyer
(d) all the above
Answer:
(d) all the above
3. The ownership in specific goods to be put in deliverable state passes _________.
(a) When the seller has brought the goods into a deliverable state and the buyer has notice thereof
(b) When the goods are brought in deliverable state by the seller
(c) The contract is made
(d) When the intention is clear
Answer:
(a) When the seller has brought the goods into a deliverable state and the buyer has notice thereof
4. For passing of property in goods, the goods must be in _________.
(a) deliverable state
(b) manufacturing stage
(c) consumable state
(d) marketing state
Answer:
(a) deliverable state
5. When the goods are sent on sale or return basis, the property in the goods passes to the buyer:
(a) When the buyer signifies his approval or acceptance to the seller
(b) When the buyer pledges the goods
(c) When the buyer resells the goods
(d) All the above
Answer:
(d) All the above
6. A seller sends the goods and takes the railway receipt in his own name at the buyer’s place the seller has _________.
(a) Reserved the right of disposal of goods
(b) Not reserved the right of disposal of goods
(c) May reserve the right of disposal of goods
(d) The question of reserving the right of dis-posal does not arise
Answer:
(a) Reserved the right of disposal of goods
7. “Nemo dat quad non habet”, means:
(a) no one is greater than god
(b) none can give who does not himself possess
(c) every one can give everything he has
(d) everyone is bound by is habit
Answer:
(b) none can give who does not himself possess
8. Sale of goods by a mercantile agent gives a good title to the purchaser even in cases where the agent acts beyond his authority, provided the following conditions are satisfied _________.
(a) The agent is in possession of the goods or of a document of title to the goods.
(b) The agent sells the goods in the ordinary course business.
(c) The purchaser acts in good faith and has no notice that the agent had no authority to sell.
(d) All the above.
Answer:
(d) All the above.
9. For passing of property in respect of specific or ascertained goods, the intention of the parties can be ascertained from _________.
(a) Terms of the contract
(b) Conduct of the parties
(c) Circumstances of the case
(d) All of the above
Answer:
(d) All of the above
10. Under the Sale of Goods Act, 1930, the term “Mercantile Agent” means a mercantile agent, having as such agent, authority to _________.
(a) sell goods or consign goods for the purposes of sale
(b) buy goods
(c) raise money on the security of goods
(d) do all of the above
Answer:
(d) do all of the above
11. Transfer of documents of title to the goods sold to the buyer, amounts to _________.
(a) actual delivery
(b) symbolic delivery
(c) constructive delivery
(d) none of these.
Answer:
(b) symbolic delivery
12. A Share Certificate is a _________.
(a) Document of Title to Goods
(b) Bill of Exchange
(c) Document Showing Title to Goods
(d) Instrument of Transfer
Answer:
(c) Document Showing Title to Goods
13. A Bill of Lading is a _________.
(a) Bill of Exchange
(b) Promissory Note
(c) Cheque
(d) Document of Title to Goods.
Answer:
(d) Document of Title to Goods.
14. When a bill of exchange in sent together with documents of title, the property in goods passes when the buyer.
(a) Receives the Bill of Exchange
(b) Returns the Bill of Exchange
(c) Accepts the Bill of Exchange
(d) None of these
Answer:
(c) Accepts the Bill of Exchange
15. Under the Sale of Goods Act, 1930, “Wharfinger’s Certificate” is a _________.
(a) Document of Title
(b) Document showing Title
(c) Certificate equivalent to a Negotiable Instrument
(d) Delivery Order
Answer:
(a) Document of Title
16. Which of these is NOT a Document of Title to Goods?
(a) Bill of Lading
(b) Railway Receipt
(c) Dock Warrant
(d) Bearer Cheque
Answer:
(d) Bearer Cheque
17. Which of these is NOT a Document of Title to Goods?
(a) Warehouse Keeper’s Certificate
(b) Wharfinger’s Certificate
(c) Bill of Exchange
(d) Dock Warrant
Answer:
(c) Bill of Exchange
18. Dock Warrant is a _________.
(a) Document showing title to Goods.
(b) Document of Title to Goods
(c) Bill of Exchange
(d) Warrant for Arrest of a Person
Answer:
(b) Document of Title to Goods
19. For transfer of property in unascertained goods, the basic condition is that _________.
(a) Goods must be ascertained and appropriated.
(b) Goods must be defined by description.
(c) Buyer must receive a sample of the goods
(d) Seller must have produced/purchased the goods
Answer:
(a) Goods must be ascertained and appropriated.
20. The property, in case of sale of unascertained goods, passes when _________.
(a) Delivery Order is entered
(b) Goods are identified and appropriated to the contract
(c) Goods are so far ascertained that the parties have agreed that they shall be taken from some specific larger stock.
(d) Transfer is made in the books of the ware house man.
Answer:
(b) Goods are identified and appropriated to the contract
21. In case of sale of unascertained goods, the property in goods passes _________.
(a) when the contract provides that the property in goods shall pass
(b) when the goods are ascertained
(c) when the contract is made
(d) all of the above
Answer:
(b) when the goods are ascertained
22. There was a contract to supply “waste coal and ash for the next six months, as and when the waste is generated by the Seller’s Factory”. The Buyer paid the lumpsum price for the next six months in advance. When does the property in the goods pass to the Buyer?
(a) After the lapse of six months period
(b) At the time of entering into the contract
(c) At the time of paying advance money
(d) As and when the Factory discharges the waste
Answer:
(d) As and when the Factory discharges the waste
23. The process of identifying the goods and setting apart as per the intended quality or description is called _________.
(a) Identification
(b) Procurement
(c) Ascertainment
(d) Allocation
Answer:
(c) Ascertainment
24. In a sale of specific or ascertained goods, the property therein is transferred to the buyer _________.
(a) upon delivery of goods
(b) upon payment of price
(c) at such time as the parties intend it to he transferred
(d) at such time as decided by the Court.
Answer:
(c) at such time as the parties intend it to he transferred
State Whether The Following are True or False:
- The general rule of Sale of Goods Act is, risk prima facie passes with the delivery of goods.
- Risk and ownership cannot be separated.
- Parties may agree that risk will pass sometimes before the property has passed.
- Promissory note is a document of title to goods.
- Pledging of goods obtained under a “sale or return” contract completes the contract of sale.
- A contract of sale of future goods will always be an agreement to sell.
- When there is a contract for the sale of unascertained goods, the property in the goods is not transferred to the buyer unless and until the goods are ascertained.
- The seller in possession of the goods after sale can make a valid second sale even if he is not in the possession of the goods or document of title to the goods.
- A agrees to sell to B 20 tonnes of oil of a certain description in his cisterns and he has more than 20 tonnes of oil of description in his cisterns, then no property will pass to B unless the 20 tonnes are separated from the rest and they are appropriated to the contract.
Answer:
- False
- False
- True
- False
- True
- True
- True
- False
- True