SALE OF GOODS ACT, 1930
1.A contract for the sale of goods where property would pass to the
buyer on payment of total price would be
(a)sale
(b)agreement to sell
(c)hire-purchase contract
(d)sale on approval.
2.The term "goods" under Sale of Goods Act, 1930 does not include
(a)Goodwill. (b) Actionable claims.
(c)Stocks and shares.(d) harvested
3.A contract for the sale of "future goods" is
(a)sale (b) agreement to sell.
(c)Void. (d) hire-purchase contract
4.A stipulation in a contract of sale of goods whose violation by
seller gives a right of rescission to buyer, is called.
(a)Guarantee. (b) warranty.
(c)Condition. (d) term.
5.The unpaid seller has right of stoppage of goods in transit only
where the buyer
(a)Becomes insolvent.
(b)Refuses to pay price.
(c) acts fraudulently.
(d) all of these.
6.The sale of Goods Act, 1930 deals with the
(a)Movable goods only.
(b)Immovable goods only.
(c)Both movable and immovable goods.
(d)All goods except ornaments.
7.Under Sale of Goods Act, 1930 the terms "Goods" means every kind of
movable property and it includes
(a)stock and share. (b) growing crops, grass
(b)both (a) and (b) (d) none of the above
8.A stipulation which is collateral to the main purpose of the
contract, and if proves false, gives the buyer only a right to claim
damages, is known as
(a) Conditions. (b) guarantee.
(c) warranty. (d) none of these.
9.Which of the following is not an implied condition in a contract of sale?
(a) Condition as to title.
(b) Condition as to description.
(c) Condition as to free from encumbrance.
(d) Condition as to sample.
10.The Sale of Goods Act, 1930 deals with
(a) sale (b) mortgage.
(c) pledge (d) all of the above.
11.Which one of the following is true?
(a) the provisions of Sale of Goods were originally with the Indian
Contract Act, 1872,
(b) the Sale of Goods Act, 1930 deals with mortgage.
(c) the Sale of Goods Act restricts the parties to modify the
provisions of law.
(d) none of the above.
12.The conditions and warranties may be in the form of
(a) express. (b) implied.
(c) either (a) or (b). (d) none of the above.
13.Goods which are in existence at the time of the Contract of Sale is known as
(a) present Goods. (b) existing Goods.
(c) specific Goods. (d) none of the above.
14.Which of the following is not a form of delivery?
(a) constructive delivery.(b) structured delivery.
(c) actual delivery. (d) symbolic delivery.
15.Which one of the following is/are document of title to goods?
(a) railway receipt.
(b) wharfinger's certificate.
(c) warehouse keeper's certificate
(d) all of the above
16.Which one of the following is not true?
(a) document showing title is different from document of title.
(b) bill of lading is a document of title to goods.
(c) specific goods can be identified and agreed upon at the time of
the contract of Sale.
(d) none of the above
17.Mercantile Agent is having an authority to
(a) sell or consign goods.
(b) raise money on the security of goods.
(c) sell or buy goods.
(d) any of the above.
18.Contract of Sale is
(a) executor Contract. (b) executed Contract.
(c) both of the above. (d) none of the above.
19.In which form of the contract, the property in the goods passes to
the buyer immediately?
(a) agreement to sell. (b) hire purchase.
(c) sale (d) installment to sell.
20.Which one of the following is not an implied warranty?
(a) warranty as to undisturbed possession.
(b) warranty as to existence of encumbrance.
(c) disclosure of dangerous nature of goods.
(d) warranty as to quality or fitness by usage of trade.
21.Doctrine of Caveat Emptor means
(a) let the seller beware.(b) let the buyer beware.
(c) let the creditor beware(d) none of the above.
22.Under the doctrine of Caveat emptor the seller is
(a) responsible for the bad selection of goods by the buyer.
(b) not responsible for the bad selection of goods by the buyer.
(c) both (a) and (b)
(d) none of the above.
23.The doctrine of Caveat Emptor does not apply when
(a) the goods are bought by sample.
(b) the goods are bought by sample as well as description.
(c) the goods are purchased under its brand name.
(d) all of the above.
24.Where there is an unconditional contract for the sale of specific
goods in a deliverable state-
(a) property in the goods passes to the buyer when the contract is made
(b) property in the goods does not pass to the buyer when the contract is made.
(c) property in the goods remains with the seller when the contract is made.
(d) none of the above.
25.Selection of goods with the intention of using them in performance
of the contract and with the mutual consent of the seller and the
buyer is known as
(a) distribution (b) appropriation.
(c) amortization. (d) storage.
26.Acceptance of delivery of goods is deemed to take place when the buyer
(a) intimates to the seller that he had accepted the goods.
(b) does any act to the goods, which is inconsistent with the
ownership of the seller.
(c) retains the goods after the lapse of a reasonable time, without
intimation to the seller that he was rejected them.
(d) any of the above.
27.An unpaid seller is having rights against
(a) goods only.
(b) the buyer only.
(c) both goods and buyer.
(d) none of the above.
28.Under which of the circumstances unpaid seller loses his right of lien
(a) by estoppel
(b) where seller waived the right of lien.
(c) where the buyer or his agent lawfully obtains possession of the goods.
(d) any of the above.
29.When the unpaid seller has parted with the goods to a carrier and
the buyer has become insolvent the can exercise
(a) right of lien.
(b) right of stoppage in transit.
(c) right of resale.
(d) none of the above.
30.The essence of a right of lien is to
(a) deliver the goods. (b) retain the possession.
(c) regain the possession(d) none of the above.
31.A stipulation which is collateral to the main purpose of the
contract, and if proves false, gives the buyer only a right to claim
damages, is known as
(a) 1 & 2 (b) 2 & 3
(c) 3 & 4 (d) 1 & 4
32.Which of the following right can be exercised by an unpaid seller
against the seller in case of breach of contract?
(a) suit for non-delivery.
(b) suit for specific performance.
(c) suit for damages for breach of warranty.
(d) all of the above.
33.An auction sale is complete on the
(a) delivery of goods (b) payment of price.
(c) fall of hammer (d) none of the above.
34.If a seller handed over the keys of a warehouse containing the
goods to the buyer results in
(a) constructive delivery(b) actual delivery
(c) symbolic delivery (d) none of the above
35.If A agrees to deliver 100 kg of sugar to B in exchange of 15 mts
of cloth, then it is
(a) contract of sale. (b) agreement to sell.
(c) Sale on Approval. (d) Barter.
36.In a hire-purchase agreement, the hirer
(a) has an option to buy the goods.
(b) must buy the goods.
(c) must return the goods.
(d) is not given the possession of goods.
37.A agrees to deliver his old car valued at Rs. 80,000 to B, a car
dealer, in exchange for a new car, and agrees to pay the difference in
cash it is
(a) contract of sale. (b) Agreement to sell.
(c) Exchange. (d) Barter.
38.If the buyer rejects the whole quantity of goods due to short
delivery or excess delivery, the contract is treated as
(a) subsisting (b) cancelled
(c) void. (d) invalid.
39.Seller has right of resale where
(a) goods are perishable
(b) seller has reserved such right.
(c) seller gives notice
(d) all of these.
40.Legally, a contract of sale includes
(a) sale (b) agreement to sell.
(c) barter. (d) both (a) and (b)
41.In case of goods sold by sample, the goods should correspond with
the sample other wise
(a) buyer can reject the goods.
(b) buyer cannot reject the goods.
(c) contract is automatically terminated
(d) seller is liable to punishment.
42.A contact for the sale of goods which provide that the property
would pass to the buyer on full payment of price and execution of sale
deed, is known as
(a) sale
(b) agreement to Sell
(c) hire-purchase Agreement
(d) sale of approval
43.M, a shopkeeper, sold a Television set to N, who purchased it in
good faith. The set has some manufacturing defect and it did not work
after a few days in spite of repairs. In this case, the television was
not merchantable as it was not fit for ordinary purpose
(a) the buyer has no right to reject the television.
(b) the buyer has the right to reject the television and to have
refund of the price.
(c) both of the above.
(d) none of the above [(a) & (b)]
44.The Sale of Goods Act, 1930 came into force on
(a) 15th March, 1930 (b) 1st July, 1930
(c) 30th July, 1930 (d) 30th June, 1930.
45.The person who buys or agrees to buy goods is known as
(a) consumer. (b) buyer.
(c) both (a) and (b) (d) none of the above.
46.Voluntary transfer of possession by one person to another is
popularly known as
(a) transfer. (b) possession.
(c) delivery. (d) none of the above
47.Under which circumstances, the right of stoppage can be exercised
by the unpaid seller
(a) the buyer has become insolvent
(b) the goods are in transit
(c) the seller must be unpaid
(d) all of the above.
48.Under which circumstances the unpaid seller can exercise right of re-sale
(a) when the goods are of perishable nature.
(b) when he gives notice to the buyer.
(c) when he gives notice to the buyer of his intention to re-sale and
the buyer does not within a reasonable time pay the price.
(d) both (a) and (c)
49.Where the seller wrongfully neglects to deliver the goods to the
buyer, then the buyer
(a) cannot sue the seller for damages for non-delivery.
(b) may sue the seller for damages for non-delivery.
(c) either (a) or (b)
(d) none of the above
50.Where the buyer is deprived to goods by their true owner, then the buyer
(a) may recover the price for breach of the condition as to title.
(b) cannot recover the price for breach of the condition as to title.
(c) either (a) or (b)
(d) none of the above
51.Where the buyer wrongfully neglects or refuses to accept and pay
for the goods, then
(a) the seller may sue buyer for damages for non-acceptance.
(b) the seller cannot sue buyer for damages for non-acceptance.
(c) the seller can sue buyers' banker for damages
(d) none of the above
52.In an auction sale, the property shall be sold to the
(a) Lowest bidder. (b) Highest bidder.
(c) All bidders (d) None of the above.
53.In an auction sale, if the seller makes use of pretended bidding to
raise the price, then the sale is
(a) valid (b) void
(c) voidable (d) illegal
54.If X commissioned Y, an artist, to paint a portrait of A for 200
dollars & Y uses his own canvas & paint then it is
(a) Contract of sale.
(b) Contract of work & materials.
(c) Sale on approval.
(d) Hire-Purchase agreement.
55.The implied condition that goods shall be fit to buyer's specific
purpose, is applicable only where the buyer tells his purpose to the
seller and relies upon seller's skill and judgment as
(a) It is the requirement of law.
(b) It is buyer's duty to select goods, which serve his purpose.
(c) Seller can be silent
(d) All of the above.
56.In case, a condition is changed to the status of a warranty, then the buyer
(a) loses the right to reject goods
(b) retains right to claim damages only
(c) both (a) and (b) are true
(d) both (a) and (a) are false.
57.The property in the goods means the
(a) Possession of goods (b) custody of goods
(c) ownership of goods (d) both (a) and (c)
58.The goods are at the risk of a party who has the
(a) Ownership of goods (b) Possession of goods
(c) Custody of goods (d) both (b) and (c)
59.In case of unconditional contract of sale, the property passes to
the buyer at the time of making the contract. For this rule to apply,
the goods must be
(a) specific
(b) in a deliverable state
(c) physically transferred to buyer
(d) both (a) and (b)
60.In case of sale of standing trees, the property passes to the buyer
when trees are
(a) felled and ascertained
(b) not felled but earmarked
(c) counted and ascertained
(d) both (b) and (c)
61.In case of sale of unascertained goods, the ownership is
transferred to the buyer when the goods are
(a) ascertained
(b) appropriated to the contract
(c) weighed and measured
(d) both (a) and (b)
62.In case of sale on approval, the ownership is transferred to the
buyer when he
(a) accepts the goods (b) adopts the transaction
(c) fails to return goods (d) in all the above cases.
63.Which of the following modes of delivery of goods is considered
effective for a valid contract of sale?
(a) Actual delivery (b) symbolic delivery
(c) Constructive delivery (d) all of these.
64.Where the goods are delivered to a carrier or wharfinger for the
purpose of transmission to the buyer, the delivery is
(a) invalid and ineffective
(b) valid and effective
(c) conditional
(d) none of these.
65.In which of the following case, the unpaid seller loses his right of lien?
(a) delivery of goods to buyer
(b) delivery of goods to carrier
(c) tender of price by buyer
(d) all of these.
66.The bidder at an auction sale can withdraw his bid
(a) any time during auction
(b) before fall of hammer
(c) before payment of price
(d) none of these.
67.Where in an auction sale, the seller appoints more than one bidder,
the sale is
(a) void (b) illegal
(c) conditional (d) voidable
68.Where in an auction sale notified with reserve price, the
auctioneer mistakenly knocks down the goods for less than the reserve
price, then the auctioneer is
(a) bound by auction (b) not bound by auction
(c) liable for damages (d) both (a) and (c)
69.A contract for the sale of "future goods" is ------
(a) Sale (b) agreement to sell.
(c) Void (d) hire-purchase contract
70.A stipulation in a contract of sale of goods whose violation by
seller gives a right of rescission to buyer, is called--------
(a) guarantee. (b) warranty.
(c) condition. (d) term.
71.Goods which are in existence at the time of the Contract of Sale is
known as-------
(a) present Goods. (b) existing Goods.
(c) specific Goods. (d) none of the above.
72.Contract of sale is---------
(a) executor Contract. (b) executed Contract.
(c) both of above (d) none of the above
73.Doctrine of Caveat Emptor means--------
(a) let the seller beware. (b) let the buyer beware.
(c) let the creditor beware.(d) none of the above
74.The essence of a right of lien is to -------
(a) deliver the goods. (b) retain the possession
(c) regain the possession.(d) none of the above.
75.The Sale of Goods Act, 1930 came into force on----
(a) 15th March, 1930 (b) 1st July, 1930
(c) 30th July, 1930 (d) 30th June, 1930
76.Under the Sale of Goods Act, 1930, which of the following is/are
the implied warranty (ies)?
1.Warranty of quiet possession
2.Warranty of freedom from encumbrances
3.Warranty of title
4.Warranty as to wholesomeness.
(a) 1 & 2 (b) 1 & 3
(c) 2 & 4 (d) 3 & 4
77.Which of the following is/are necessary constituents(s) of a
contract of sale?
1.Three distinct parties – seller, buyer and a mediator
2.Movable goods for a price
3.Transfer of general property
4.Exchanging of goods without money
(a) 1 & 2 (b) 2 & 3
(c) 2 & 4 (d) 3 & 4
78.The term 'goods' for the purpose of Sale of Goods Act, does not
include
1.Money
2.Actionable claims
3.Stocks & Shares
4.Growing crops, grass
(a) 1 & 2 (b) 1 & 3
(c) 2 & 4 (d) 3 & 4
79.A buyer may make some payment in advance to the seller as a
guarantee for performance of contract, This money is known as
1.Earnest money
2.Security deposit
3.Fixed deposit
4.Deposit
(a) 1 & 2 (b) 1 & 3
(c) 2 & 4 (d) 3 & 4
80.Which of following is a document of title to goods
1.Bill of Lading
2.Railway Receipt
3.Dock Warrant
4.Performa invoice
(a) 2, 3 (b) All the above
(c) 1, 2, 3 (d) 2, 3,4
81.A seller is unpaid when
1.Whole of the price have not been tendered
2.A negotiable instrument given has been dishonored
3.A bill of exchange given was dishonored
4.A part of the price has only been paid
(a) 1, 2, 3 (b) 2, 3, 4
(c) 1, 2, 3, 4 (d) 1, 3, 4
82.Which of the following is the Right of Unpaid Seller
1.Right to re-sale
2.Right to stop the goods in transit
3.Right of lien
4.Right to demand back the goods
(a) 2, 3, 4 (b) 1, 2, 3
(c) 1, 3, 4 (d) 1, 2, 3, 4
83.A sold a tin of disinfectant powder to K without warning knowing
fully that if the tin was not opened with care, it will likely to
cause injury. K was injured while opening the tin. Which of the
following statements(s) is/are correct?
(a) A is not liable to under the Doctrine of caveat emptor.
(b) A is liable for the damages.
(c) A has no duty to disclose the facts to K.
(d) The buyer has the responsibility to enquire about all the things
before purchasing
84.A purchased a refrigerator on hire purchase from B and pledged with
C. D purchased the refrigerator from C in good faith, on knowing the
facts B wants to recover the refrigerator from D. Which of the
following statements(s) is/are correct?
(a) B can recover the refrigerator from D.
(b) B can recover the refrigerator from A only.
(c) B cannot recover the refrigerator from D.
(d) D will get good title for the refrigerator as he bought it in good faith.
85.A timber merchant agreed to supply best teak at a certain agreed
price to a builder. Later the merchant supplied timber which was
identified as ordinary class of timber and demanded the payment from
the builder. Which of the following statements is/are true?
(a) Builder can reject the goods.
(b) Builder has to accept the goods.
(c) Builder has to pay the price by taking delivery of teak wood.
(d) Timber merchant cannot plead the docrine of caveat emptor.
86.'A' acquired certain goods from 'C' by falsely representing that he
was acting on behalf of 'B' and was authorized to collect the goods.
'A' later sold the goods to 'D'. Is the sale valid?
(a)The sale is valid as 'D' is not supposed to inquire the status of
'A' as a seller.
(b)The sale is valid because 'D' has purchased the goods in good faith.
(c) The sale is valid as 'A' has acquired the goods by way of fraud.
(d) The sale is not valid because it a sale by non-owner and
therefore, 'D' the buyer, will not acquire any good title of the
goods.
87.In a concluded sale, if the goods are destroyed, the loss is to be borne by
(a) The seller
(b) The buyer
(c) Both seller and buyer in agreed proportions
(d) The party who is in possession of goods.
88.R, a grain merchant, displays wheat of different varieties. A after
satisfying himself of the quality buys the wheat in belief that the
wheat is of earlier harvest. In fact the wheat is of recent harvest. A
wants to return the wheat and refuses to pay the price. Which of the
following is/are true?
(a) A can return the wheat.
(b) A can refuse to pay the price.
(c) A cannot return the wheat.
(d) R cannot sue A to recover the money.
89.Match the following:
(i) Goods were there at the time of Sale
(ii) Goods were not specifically identified
(iii) Good not in existence at the time of contract of sale
(iv) Goods depend upon certain events which may or may not happen
(a) Unascertained goods
(b) Future goods
(c) Contingent Goods
(d) Existing Goods
90.Match the following:
(i) Goods sold on the fall of hammer
(ii) Right to withhold
(iii) Delivery of goods
(iv) Deliver to a caretaker
(a) Right of Lien
(b) Constructive Delivery
(c) Wharf finger
(d) Auction Sale
91.Match the following:
(i) Sale
(ii) Agreement to sell
(iii) Condition
(iv) Warranty
(a) Ownership is transferred at some future date
(b) A stipulation which is essential
(c) Stipulation which is collateral.
(d)Ownership is transferred immediately
92.Match the following
(i) Right to Sell
(ii) Goods must be properly packed
(iii) Goods must be the same as wanted by the seller
(iv) Buyer having right / opportunity to compare
(a) Condition as to description
(b) Condition as to sample
(c) Condition as to wholesomeness
(d) Condition as to title
Answers:
1. (b)
2. (b)
3. (b)
4. (c)
5. (a)
6. (a)
7. (c)
8. (c)
9. (c)
10. (a).
11. (a)
12. (c)
13. (b)
14. (b)
15. (d)
16. (d)
17. (d)
18. (c)
19. (c)
20. (b)
21. (b)
22. (b)
23. (d)
24. (a)
25. (b)
26. (d)
27. (c)
28. (d)
29. (b)
30. (b)
31. (a)
32. (d)
33. (c)
34. (c)
35. (d)
36. (a)
37. (a)
38. (a)
39. (d)
40. (d)
41. (a)
42. (b)
43. (b)
44. (b)
45. (b)
46. (c)
47. (d)
48. (d)
49. (b)
50. (a)
51. (a)
52. (b)
53. (c)
54. (b)
55. (a)
56. (c)
57. (c)
58. (a)
59. (d)
60. (a)
61. (d)
62. (d)
63. (d)
64. (b)
65. (d)
66. (b)
67. (d)
68. (b)
69. (b)
70. (c)
71. (b)
72. (c)
73. (b)
74. (b)
75. (b)
76. (a)
77. (b)
78. (a)
79. (a)
80. (c)
81. (c)
82. (b)
83. (b)
84. (a)
85. (a)
86. (d)
87. (b)
88. (c)
89. (i) (d) (ii) (a) (iii) (b) (iv) (c)
90. (i) (d) (ii) (a) (iii) (b) (iv) (c)
91. (i) (d) (ii) (a) (iii) (b) (iv) (c)
92. (i) (d) (ii) (c) (iii) (c) (iv) (b)
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