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Business Law - Exam prep

Total questions: 35

Worksheet time: 18mins

Name
Class
Date
1.

When A parks the car in paid parking lot, there is a _________ contract

a)

Bilateral

b)

Executory

c)

Implied

d)

Express

2.

Mark the statements that are true

a)

Consideration must be adequate

b)

Agreement without consideration is valid

c)

Contract of agency is valid without consideration

d)

Agreement to compensate for past voluntary service is valid

3.

Which statement is false

a)

Promise to give a gift is valid

b)

Completed gift is valid

4.

Unsoundness of mind may arise from..

a)

Idiocy

b)

Drunkenness

c)

Old age

d)

Hypnotism

5.

Which statement is false?

a)

Minor can be made a partner for profits

b)

Minor can be an agent

c)

Minor is personally liable for necessaries

d)

There is no estoppel against minors

6.

Which of the following are not fiduciary relationship

a)

Guru and devotee

b)

Creditor and debtor

c)

Solicitor and client

d)

Mother and daughter

7.

__________ leads to a voidable contract

a)

Fraud

b)

Coercion

c)

Misrepresentation

d)

All of the above

8.

Mistake of law of the country leads to ...

a)

Valid Contract

b)

Void contract

c)

Voidable contract

d)

Void agreement

9.

Termination of a contract is called

a)

Restitution

b)

Ratification

c)

Remission

d)

Rescission

10.

Which of the following does not fall under the category of an invitation to treat?

a)

An advertisement

b)

An auctioneer inviting bids for a particular item

c)

An advertisement of reward for the return of a lost pet

d)

A display of goods with price tags in a self-service supermarket

11.

Can a minor become an agent?

a)

Yes, it is not necessary for an agent to attain the age of majority

b)

Yes, but the agency contract must be in writing

c)

No, the minor has no legal capacity to do so

d)

No, the minor must obtain permission from the court

12.

Which of the following are goods covered under the Sale of Goods Act 1957?

a)

An island

b)

A RM50 note

c)

A banana tree

d)

A plate

13.

There are a number of exceptions to the nemo dat quad non habet rule. Which of the following is not an exception to this rule?

a)

sale by estoppel

b)

sale by one of joint-owners

c)

sale by a mercantile agent

d)

sale under a void contract

14.

All sum received on behalf of the principal by the agent must be paid to the

a)

principal

b)

agent

c)

third party

d)

owner

15.

The followings are the exception to the general rule in which the acceptance need not be communicated except

a)

unilateral contract

b)

an offer made to the public at large

c)

acceptance made by the offeree

d)

acceptance through postal rule

16.

A principal can terminate his agent's authority by giving ______ notice.

a)

immediate

b)

reasonable

c)

delayed

d)

no

17.

Suraya offers to sell her car to Amalina for RM51,000 or RM55,000. The offer is_________.

a)

Valid because it is communicated to the offeree.

b)

Void because the term of the offer is uncertain.

c)

Valid because the term of the offer is certain.

d)

Void because of inadequacy of consideration.

18.

Ibrahim ordered a special shampoo for scalp care from a catalogue, but the one delivered to him was for normal and dry hair. Ibrahim can sue the supplier for _________.

a)

Breach of implied condition as to merchantable quality

b)

Breach of implied condition as to fitness for particular purpose

c)

Breach of implied condition that goods correspond with description

d)

Breach of implied term as to title

19.

The following are characteristics of a cheque EXCEPT

a)

It is a conditional order in writing

b)

it is signed by the drawer

c)

it is drawn on the banker

d)

It orders the banker to pay a certain sum of money on demand.

20.

Section 60 of the Bills of Exchange Act 1949 provides legal protection for a paying bank in the event the bank had paid

a)

a cheque that has been altered

b)

a cheque where the drawer's signature was forged

c)

a cheque that has expired

d)

a cheque that has a forged endorsement

21.

An order of the court to stop a person from committing a specific act is called

a)

rescission

b)

payment of quantum meruit

c)

specific performance

d)

injunction

22.

What does plaintiff mean?

a)

 a person who makes a formal complaint against somebody in court

b)

A judge

c)

 the person in a trial who is accused of committing a crime, or who is being sued by another person

23.

An oral contract is _______

a)

Legal

b)

Not enforceable

c)

Not for money

d)

Not legal

24.

Offer, acceptance and consideration are all parts of a

a)

Covers

b)

Loans

c)

Applications

d)

Contract

25.

An agreement between two parties that creates an obligation is a(n)

a)

Contract

b)

Tort

c)

Offer

d)

Purpose

26.

When someone is authorized to act on behalf of another it governed by _______ law

a)

Agency

b)

Tort

c)

Statutory

d)

Administrative

27.

In order for a contract to be enforceable it must have

a)

Acceptance

b)

Consideration

c)

Offers

d)

Legal Purpose

28.

The person to whom an offer is made is termed the offeror.

a)

True

b)

False

29.

All contracts have to be in writing to be enforceable.

a)

True

b)

False

30.

A store display of a MP3 player marked $121.00 would be an offer.

a)

True

b)

False

31.

A clear rejection terminates an offer.

a)

True

b)

False

32.

If the offeree gives the offeror something of value in return for a promise to keep the offer open, this agreement is itself a binding contract and is called a counteroffer.

a)

True

b)

False

33.

A failure to respond at all to an offer can be construed as an acceptance.

a)

True

b)

False

34.

Which of the following is not one of the major requirements for a contract?

a)

offer and accomodation

b)

genuine assent

c)

capacity

d)

consideration

35.

Capacity to contract means that the person

a)

has a genuine need for the goods or service purchased

b)

has ample room to store goods that are purchased

c)

has the ability, according to law, to understand the contract and the consequences thereof.

d)

all of these