MGT611 Business & Labor Law Spring 2009 Final Term Paper

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FINALTERM EXAMINATION
Spring 2009
MGT611- Business & Labor Law

Marks: 81

Question No: 1 ( Marks: 1 ) - Please choose one
A promise made without intention of performing it will result in:

• Coercion
  
• Innocent misrepresentation
  
• Wrongful misrepresentation
  
• Fraud
  

Question No: 2 ( Marks: 1 ) - Please choose one
A contract which ceases to be enforceable by law becomes _______ contract.

• Void
  
• Unenforceable
  
• Illegal
  
• Executory
  

Question No: 3 ( Marks: 1 ) - Please choose one
When the performance of promise by one party depends on the prior performance of the
promise by the other party, the promises are:

• Mutual and independent
  
• Mutual and dependent
  
• Mutual and concurrent
  
• Dependent and concurrent
  

Question No: 4 ( Marks: 1 ) - Please choose one
When a lender tells the borrower afterwards not to return money, the contract is
________.

• Discharged
  
• Breached
  
• Performed
  
• Altered
  

Question No: 5 ( Marks: 1 ) - Please choose one
Definition of contract of indemnity as given in Contract Act includes:

• Implied promise to indemnify
  
• Express promise to indemnify
  
• Cases where loss arises by events depending on conduct of promisee
  
• Cases where loss arises from conduct of promisor
  

Question No: 6 ( Marks: 1 ) - Please choose one
The Primary Contract in a contract of guarantee is:

• A contract between creditor and surety
  
• A contract between creditor and principal debtor
  
• A contract between surety and principal debtor
  
• A contract between creditor, surety and principal debtor
  

Question No: 7 ( Marks: 1 ) - Please choose one
Section 126 of Contract Act provides that a contract of guarantee ___________.

• May be oral
  
• May be written
  
• May either be oral or written
  
• Must be written
  

Question No: 8 ( Marks: 1 ) - Please choose one
Mr. X takes a loan of Rs. 5000 from Mr. Y on Guarantee of Mr. Z. The contract between
Mr. X and Mr. Y is the _______.

• Contract of bailment
  
• Principal contract
  
• Secondary contract
  
• Contract of indemnity
  

Question No: 9 ( Marks: 1 ) - Please choose one
According to section 142 of Contract Act, a guarantee obtained by means of
misrepresentation made by the creditor, concerning a material part of the transaction is
_____.

• Valid
  
• Invalid
  
• Indemnity
  
• Secondary contract
  

Question No: 10 ( Marks: 1 ) - Please choose one
A pledge can also be called as __________.

• Bailment
  
• Guarantee
  
• Indemnity
  
• Pawn
  

Question No: 11 ( Marks: 1 ) - Please choose one
In which sections of Contract Act, 1872 the law relating to contract of agency is
contained?

• ss12-75
  
• ss76-123
  
• ss124 181
  
• ss182-238
  

Question No: 12 ( Marks: 1 ) - Please choose one
An agent appointed to do all acts in connotation with a particular business identification
is called __________.

• Special agent
  
• General agent
  
• Universal agent
  
• Mercantile agent
  

Question No: 13 ( Marks: 1 ) - Please choose one
At the first annual general meeting of the company directors shall be elected in
accordance with section 178 for a term of:

• 1 year
  
• 2 years
  
• 3 years
  
• 5 years
  

Question No: 14 ( Marks: 1 ) - Please choose one
Which of the following is not true about dividends?

• Dividends shall be paid out of profits of the year or any other undistributed profits.
  
• The directors can not pay interim dividends to the members.
  
• The directors may set aside a reserve out of the profits before recommending any dividend.
  
• All dividends shall be declared and paid according to the amounts paid on the shares.
  

Question No: 15 ( Marks: 1 ) - Please choose one
Which of the following is put into business by partners while formulating a partnership?

• Money
  
• Property
  
• Labour and skill
  
• Any or all of given options
  

Question No: 16 ( Marks: 1 ) - Please choose one
The Partnership Act, 1932 repealed which of the following?

• Contract Act, 1872
  
• Section 239-266 of the Contract Act, 1872
  
• Section 72-144 of the Contract Act, 1872
  
• Law of trust
  

Question No: 17 ( Marks: 1 ) - Please choose one
Which of the following is true about a firm?

• A firm has no legal existence.
  
• A firm has a legal status if its own.
  
• A firm has legal existence separate from its partners.
  
• A firm has no legal existence separate from its partners.
  

Question No: 18 ( Marks: 1 ) - Please choose one
Preparation of required documents of the company is done during which phase?

• Inauguration phase
  
• Promotion phase
  
• Registration phase
  
• None of the given options
  

Question No: 19 ( Marks: 1 ) - Please choose one
Which of the following is a legal document on the basis of which the company conducts
its external affairs?

• Memorandum of association
  
• Article of association
  
• Share certificate
  
• Certificate of commencement of business
  

Question No: 20 ( Marks: 1 ) - Please choose one
Memorandum of association of a new public company is required to be subscribed by
how many persons?

• At least one person
  
• Three persons
  
• At least three persons
  
• Seven persons
  

Question No: 21 ( Marks: 1 ) - Please choose one
What should be last words in the name of the private limited company?

• Limited
  
• (Private) Limited
  
• & company
  
• Any of the given options
  

Question No: 22 ( Marks: 1 ) - Please choose one
Which of the following is most probably a company limited by guarantee?

• A multinational company
  
• A commercial bank
  
• A stock exchange
  
• A local manufacturing concern
  

Question No: 23 ( Marks: 1 ) - Please choose one
In which of the following situation, a company can not be wound up by the Court?

• If the company is unable to pay its debts
  
• If the company does not commence its business within a year from its incorporation
  
• If the company suspends its business for a whole year
  
• If the number of members of a private company is reduced to five
  

Question No: 24 ( Marks: 1 ) - Please choose one
Within how many days from the date of the making of the winding up order, a certified
copy of the order shall be filed with the registrar?

• 7
  
• 10
  
• 15
  
• 30
  

Question No: 25 ( Marks: 1 ) - Please choose one
A committee of the Securities and Exchange Policy Board constituted under section 15 is
termed as _______ in SECP Act, 1997.

• Committee
  
• Commission
  
• Board
  
• Clearing house
  

Question No: 26 ( Marks: 1 ) - Please choose one
The Securities and Exchange Commission when exercising its powers under SECP Act,
1997, shall have regard to which of the following?

• The quality and capability of the management of the company
  
• The general public interest
  
• The interest of potential public investors in the company
  
• All of the given options
  

Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following is not a party in cheque?

• Payee
  
• Maker
  
• Drawer
  
• Drawee
  

Question No: 28 ( Marks: 1 ) - Please choose one
If the endorser signs his name only, the endorsement is said to be:

• Blank
  
• Full
  
• Special
  
• Restrictive
  

Question No: 29 ( Marks: 1 ) - Please choose one
Within how many days from the receipt of the application to register a trade union, the
registerar shall issue a registration certificate?

• 7 days
  
• 10 days
  
• 15 days
  
• 30 days
  

Question No: 30 ( Marks: 1 ) - Please choose one
According to Industrial Relations Ordinance, which establishment shall set up a Joint
Works Council?

• Private limited company
  
• That has no shop steward
  
• Listed in stock exchange
  
• Having more than fifty employees
  

Question No: 31 ( Marks: 1 ) - Please choose one
What shall be the extent of workers' participation in Joint Works Council?

• 25%
  
• 40%
  
• 50%
  
• 60%
  

Question No: 32 ( Marks: 1 ) - Please choose one
Which shares are issued to the promoters or the underwriters of the company?

• Deferred shares
  
• Cumulative preference shares
  
• Ordinary shares
  
• Equity shares
  

Question No: 33 ( Marks: 1 ) - Please choose one
The Securities and Exchange Commission monitors the general financial condition of a
Non Banking Finance Company and may order ________.

• To present annual report
  
• To appoint internal auditor
  
• To cease the business
  
• For special audit
  

Question No: 34 ( Marks: 1 ) - Please choose one
All of the following included in the procedure of examining any person by the Securities
and Exchange Commission, EXCEPT:

• Any person concerned with the case may be called by written notice
  
• Such person shall be examined orally
  
• Such person shall be examined in written
  
• Any statement made by such person shall be prepared in writing
  

Question No: 35 ( Marks: 1 ) - Please choose one
Who defines the roles and responsibilities of the Chairman and Chief Executive of a
listed company?

• Majority shareholders
  
• Executive directors
  
• The Board of Directors
  
• Securities and Exchange Commission
  

Question No: 36 ( Marks: 1 ) - Please choose one
Which of the following may not be included in the Directors Reports of listed
companies?

• The fact along with reasons that the company is considered to be a going concern
  
• Significant deviations from last year in operating results of the company
  
• Key operating and financial data of last six years in summarized form
  
• The reason that the company has not declared dividend
  

Question No: 37 ( Marks: 1 ) - Please choose one
An agent may draw an instrument on behalf of the principal subject to following
conditions, except:

• That the agent has been authorized by the principal to that effect
  
• That the principal is not a competent person to enter into a contract
  
• That the agent acts in the name of the principal
  
• That the agent has not exceeded his authority
  

Question No: 38 ( Marks: 1 ) - Please choose one
According to Halsbury, which of the following is a relation that subsists between persons
carrying on a business in common with a view of profit?

• A proprietorship
  
• A partnership
  
• An enterprise
  
• A company
  

Question No: 39 ( Marks: 1 ) - Please choose one
As per Industrial Relations Ordinance, 2002, the determination by a Labour Court,
Arbitrator or an Appellate Court of competent jurisdiction of any industrial dispute or any
matter relating thereto is called:

• Judgment
  
• Award
  
• Decision
  
• Ruling
  

Question No: 40 ( Marks: 1 ) - Please choose one
An award of the Labour Court, in case of strike and lockout, shall not be for a period:

• Less than one year
  
• More than one year
  
• Less than two years
  
• More than two years
  

Question No: 41 ( Marks: 1 ) - Please choose one
Labour courts are established by whom?

• Provincial Government
  
• Federal Government
  
• High Court
  
• Supreme Court
  

Question No: 42 ( Marks: 1 ) - Please choose one
Which of the following is not a bench of National Industrial Relations Commission?

• Single bench
  
• Division bench
  
• Half bench
  
• Full bench
  

Question No: 43 ( Marks: 3 )
Describe the essentials of an endorsement.

Question No: 44 ( Marks: 3 )
Who is qualified to be a presiding officer of a labour court? How a presiding officer is
appointed?

Question No: 45 ( Marks: 3 )
When the winding up of a company is considered to be commenced? Discuss the effects
of voluntary winding up on the status of company.

Question No: 46 ( Marks: 5 )
How can a Non Banking Finance Company be incorporated? Discuss with reference to
section 282 of Companies Ordinance, 1984.

Question No: 47 ( Marks: 5 )
Describe the conditions to create a trust which should be fulfilled by the author of trust as
contained in section 6 of the Trusts Act, 1882.

Question No: 48 ( Marks: 10 )
There are certain conditions that a public company must fulfill to commence the business
or to exercise any borrowing powers. Discuss these conditions.

Question No: 49 ( Marks: 10 )
What are the powers of investigating officer of the Securities and Exchange Commission
under section 30 of SECP Act, 1997?