WorksheetsMCQs on Negotiable Instruments and Laws
Total questions: 30
Worksheet time: 10mins
A negotiable instrument includes:
Promissory note
Bill of exchange
Cheque
All the above
Which of the following is NOT an essential feature of a negotiable instrument?
Freely transferable
Payable in money
Conditional payment
Must be in writing
A cheque is drawn on a:
Customer
Drawer
Banker
Payee
A person who is in possession of a negotiable instrument and entitled to receive the amount is called:
Holder
Holder in due course
Endorser
Drawee
To become a Holder in Due Course, a person must acquire the instrument:
For consideration
Before maturity
In good faith
All the above
When a cheque is crossed generally, it must be paid only to:
Bearer
Drawer
Banker
Government
A special crossing contains:
Two parallel lines
The name of a banker
Account payee words
Not negotiable words
Endorsement in blank converts the instrument into:
Order instrument
Bearer instrument
Conditional instrument
Non-transferable
The liability of the drawer of a cheque arises when:
The cheque is honoured
The cheque is dishonoured
The cheque is endorsed
The cheque is lost
Dishonour of a cheque for insufficiency of funds is punishable under:
Section 125
Section 138
Section 45
Section 302
Notice of dishonour is necessary in case of:
Cheque
Bill of exchange
Promissory note
Both b and c
Negotiation means:
Making an agreement
Transferring the instrument
Payment to the payee
Demanding money
Holder in Due Course enjoys:
Better title
Same title
No title
Limited title
A cheque payable to "A or order" is negotiated by:
Delivery only
Delivery with endorsement
Writing only
None
The person on whom a bill of exchange is drawn is called:
Drawer
Drawee
Payee
Endorser
Goods are defined as:
Money
Actionable claims
Movable property
Immovable property
A contract of sale includes:
Sale
Agreement to sell
Both a and b
Exchange
A condition is a stipulation:
Essential to the contract
Collateral to the contract
Optional
Not part of the contract
When property in goods is transferred at once, it is called:
Agreement to sell
Hire purchase
Sale
Bailment
When the buyer breaches the contract, the unpaid seller has the right to:
Lien
Stoppage in transit
Resale
All the above
Warranty is:
Essential condition
Collateral stipulation
Not enforceable
Equal to condition
The rights of an unpaid seller arise when:
Price is not paid
Delivery is refused
Goods perish
Ownership changes
Transfer of property depends on:
Intention of parties
Price paid
Date of payment
Form of contract
A consumer is a person who:
Buys goods for resale
Buys goods for personal use
Receives free service
Works in a company
Right to be protected against hazardous goods is known as:
Right to safety
Right to choose
Right to be heard
Right to seek redressal
The District Forum can entertain complaints up to:
₹20 lakh
₹1 crore
₹50 lakh
₹10 lakh
National Consumer Disputes Redressal Commission is headed by:
President
Judge of Supreme Court
Prime Minister
District Collector
Complaint can be filed by:
Consumer
Legal heir
Consumer association
All the above
Redressal under CPA includes:
Replacement of goods
Compensation
Removal of defects
All of the above
The main objective of Consumer Protection Act is:
Protect sellers
Protect buyers
Promote exports
Increase business profits
