ca cpt

http://www.pappulal.com/practice-papers/index.html of 5

CA CPT SAMPLE PAPER

MERCANTILE LAWS (40MARKS)

1. Which company shares can be freely transferable

(a) Private Company (b) Public Company (c) Both (a) & (b) (d) None of the above

2. Age limit of Directors in case of private company is _________

(a) 65 (b) 70 (c) 75 (d) No limit

3. Where in a partnership firm the partners are entitled to interest on their capital balance

such interest is payable.

(a) Only out of partners capital

(b) Only out of cash brought in by a new partners towards goodwill

(c) Only out of profits of the firm

(d) None of the above

4. Mere silence as to fraud likely to affect the willingness of a party to enter into a contract is not fraud unless.

(a) The circumstances of the case imposed the duty of the person to speak

(b) The circumstances do not show that silence is equivalent to speech

(c) The circumstances such that silence is not fraudulent

(d) Obligations are not imposed by the law

5. Which of the following sales is valid?

(a) Sale by mercantile agent.

(b) Sale by one of the Joint owners.

(c) Sale by a person who has possession of goods under a voidable contract but still

rescinded.

(d) both (a) & (b).

6. A contract cannot be performed by

(a) Parties to the contract (b) Agents to the parties

(c) Stranger (d) Promisor

7. An unpaid seller can exercise the right of resale

(a) if the goods are of durable nature (b) if the goods are of perishable

(c) with the consent of buyer (d) without the consent of buyer

8. In case of misrepresentation the party who has suffered, can avoid the contract even if he had the means of discovering the truth with ordinary diligence.

(a) true (b) partly true (c) totally false (d) None of the above

9. Who of the following can be a party to enter into contract?

(a) A convict undergoing sentence (b) A joint stock company

(c) A minor (d) All of the above


10. In contract of sale, the goods destroyed after delivery thus risk bears by

(a) The buyer (b) The seller

(c) Partly by the seller or buyer (d) Neither buyer Nor seller

11. The liability of members if company is limited by shares

(a) Unpaid value of shares (b) Guarantee amount

(c) Unlimited liability (d) None of the above

12. The doctrine of indoor management is an ______to the doctrine of constructive notice

(a) Exception (b) Extension (c) Alternative (d) None of the above

13. Where the goods are delivered to a carrier or wharfinger for the purpose of transmission to the buyer, the delivery is

(a) Invalid & effective (b) Valid & effective

(c) Conditional (d) None

14. Impossibility arising subsequent to entering in to a contract is called____

(a) Supervening impossibility (b) Irregular impossibility

(c) Perpetual impossibility (d) None

15. ______ is included in the implied authority of a partner.

(a) To submit to arbitration a dispute relating to the firm’s business.

(b) To pledge a security goods of the firm for obtaining loan for the firm

(c) To enter into another partnership on behalf of the firm

(d) To open a bank account on behalf of the firm in the partner own name

16. To constitute a partnership, the agreement must be in:

(a) In writing (b) In Oral

(c) Either in written or in Oral (d) Neither in writing Nor in Oral

17. Impossibility arising subsequently to formation of a contract is

(a) Pre-contractual contract (b) Supervening impossibility

(c) Initial Impossibility (d) None of these

18. Jus in Personam is Right Against

(a) Specific person (b) Specific thing (c) Public at large (d) None

19. _____ is one sided contract in which only one party has to perform his part of promise

(a) Unilateral contract (b) Illegal

(c) Bilateral (d) enforceable

20. Iverson Jewelers wrote a letter to Miller, “We have received an exceptionally fine self

winding Rolox watch which we will sell to you at a very favorable price.”

(a) The letter is an offer to sell. (b) A valid offer cannot be made by letter.

(c) The letter contains a valid offer which will terminate within a reasonable time.

(d) The letter lacks one of the essential elements of an offer.


21. Bill purchased a can of Sipep from the Ajax Minimart. After he finished drinking the

Sipep, Bill noticed that the can contained dead insects stuck on the inside bottom of the

can. In a strict product liability tort action against Ajax, Bill must prove, among other things, that:

(a) Ajax is a merchant selling Sipep.

(b) Ajax knew or should have known of the defective condition.

(c) Ajax had prior notice of other similar problems with Sipep products.

(d) Ajax actually placed the dead insects into the can.

22. The body of law which establishes rights between persons and provides for redress for

violation of those rights is known as:

(a) Criminal Law (b) Civil Law

(c) The Uniform Commercial Code (d) Stare decisis

23. Donny threw a knife at Sally, intending to injure her severely. However, Donny missed

Sally. Sally saw the knife just as it whizzed by her head, missing it by about one inch. As

a result, Sally was very scared. Sally sued Donny for assault and battery. Which of the following is most correct?

(a) Donny will be liable for battery, but not assault.

(b) Donny will be liable for assault, but not battery.

(c) Donny will be liable for assault and for battery.

(d) Donny will not be liable for either assault or battery because this is only a criminal

matter.

24. Which of the following statements is correct concerning the "reasonable person" standard in tort law?

(a) The reasonable person standard varies from person to person.

(b) The reasonable person standard focuses on the defendant’s subjective mental state

rather than on the defendant’s behavior.

(c) A person with a physical disability must act as would a reasonable person with the same disability.

(d) A person with a mental disability must act as would a person with the same mental

disability.

25. Robert makes the following statement while negotiating the sale of his car, “This is the sharpest car on the market.” His statement may support a claim for:

(a) misrepresentation (b) fraud

(c) fraud and misrepresentation (d) none of the above

26. Tom and Jerry entered into a contract whereby Tom agreed to sell Jerry $1,000 worth of

heroin, an illegal substance. This is an example of a:

(a) quasi contract (b) void contract

(c) voidable contract (d) secondary party beneficiary contract

27. Employer shall contribute towards Insurance Fund _________% of basic wages, dearness allowance, and retaining allowance.

(a) 2% (b) 3% (c) 1% (d) None of these


28. What is minimum bonus u/s 10 of the payment of Bonus Act if employee has not completed 15 years of age?

(a) 8.33% or Rs.60 ↑ (b) 8.33% or Rs.60 ↓

(c) 8.33% or Rs.100↓ (d) 8.33% or Rs.100 ↓

29. While calculating Direct tax payable u/s 7 of the payment of Bonus Act which of the

following should not be considered?

(a) Profits (b) Capital gains

(c) Speculation loss (d) Unabsorbed depreciation

30. Which one or more of the following resolution need not be filed with the registrar

(a) Special resolution

(b) A resolution of Board relating to appointment of a managing director

(c) A resolution approving the appointment of a sole selling agent

(d) An ordinary resolution

31. Which of the following meeting can be held more than once in a calendar year?

(a) E.G.M. (b) S.G.M. (c) A.G.M. (d) None of the above

32. Majority rule is not applicable when

(a) The act done is illegal (b) The act done is ultra vires the company

(c) The act done constitutes a fraud (d) all the above

33. Which of the following company can held the AGM on public holiday ____________

(a) Public company (b) Private company

(c) Govt. company (d) Association not for profits

34. Quorum should be present at the

(a) Commencement of meeting (b) Middle of the meeting

(c) End of the meeting (d) Any time during meeting

35. Unsecured debentures does not require any registration because it is not secured by _________

(a) Fixed (b) Floating charge (c) Both (a) & (b) (d) None of the above

36. Which of the following charge is not registered with the ROC _________

(a) Charge on immovable property (b) Charge on uncalled share capital

(c) Charge on called made but not paid (d) Charge on call made but paid

37. The amount unclaimed on redemption is transferred to ________fund.

(a) Investor education & protection (b) Children welfare

(c) Workmen compensation fund (d) None of the above

38. Return of partly paid shares by the shareholders to the company is _______

(a) Surrender (b) Forfeiture (c) Lien (d) None of the above

39. C.G. approval is necessary in case of issue of __________

(a) Share certificate (b) Share warrant (c) Both (a) & (b) (d) None of the above

40. Duplicate certificate obtained if original certificate lost in case of

(a) Share Certificate (b) Share warrant (c) Dividend warrant (d) None of these


ANSWERS

MERCANTILE LAWS

1. A 2. D 3. C 4. A 5. D

6. C 7. B 8. C 9. B 10. A

11. A 12. B 13. B 14. A 15. B

16. C 17. B 18. A 19. A 20. C

21. A 22. C 23. B 24. C 25. D

26. B 27. C 28. A 29. D 30. C

31. A 32. D 33. D 34. A 35. C

36. A 37. A 38. A 39. B 40. A