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CORPORATE LAW XIBMS EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
CORPORATE LAW XIBMS EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
CORPORATE LAW XIBMS EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
CORPORATE LAW XIBMS EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
CORPORATE LAW XIBMS EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
Xaviers Institute of Business Management
Studies
MARKS: 80
COURSE: MBA
SUB:
CORPORATE LAW
N.B.: 1 Attempt any Twelve
Questions
2) Last two Questions are compulsory
Q.1. In the following statements only one is correct
statement. Explain Briefly?
(5 Marks)
i) An
invitation to negotiate is a good offer.
ii) A
quasi-contract is not a contract at all.
iii) An
agreement to agree is a valid contract.
Q.2. A ship-owner agreed to carry to cargo of sugar belonging to A from
Constanza to Busrah. He knew that there
was a sugar market in Busrah and that A was a sugar merchant, but did not know
that he intended to sell the cargo, immediately on its arrival. Owning to Shipment’s default, the voyage was
delayed and sugar fetched a lower price than it would have done had it arrived
on time. A claimed compensation for the
full loss suffered by him because of the delay.
Give your decision. Explain Briefly?
(5 Marks)
Q.3. The proprietors of a medical preparation called the “Carbolic Smoke
Ball” published in several newspapers the following advertisement:-
“£
1000 reward will be paid by the Carbolic Smoke Ball Co. to any person who
contracts the increasing epidemic influenza after having used the Smoke Ball
three times daily for two weeks according to printed directions supplied with
each ball. £ 1000 is deposited with the Alliance Bank showing our sincerity in
the matter.
On
the faith in this advertisement, the plaintiff bought a Smoke Ball and used it
as directed. She was attacked by influenza.
She sued the company for the reward.
Will she succeed? Explain Briefly (5
Marks)
Q.4. Fazal consigned four cases of Chinese crackers at Kanpur
to be carried to Allahabad
on the 30th May,
1987. He intended to sell
them at the Shabarat festival of 5th
June 1987. The railway
discovered that the consignment could not be sent by passenger train and asked
Fazal either to remove them or authorize their dispatch by goods train. He took no action and the goods arrived at Allahabad a month after
they were booked.
Fazal
filed a suit against Railways for damages due to late delivery of the goods
which deprived him of the special profits at the festival sale. Decide & explain briefly ?
(5 Marks)
Q.5. ‘Lifeoy’ Soap company advertised that it would give a reward of Rs.
2000 who contracted skin disease after using the ‘Lifeoy’ soap of the company
for a certain period according to the printed directions. Mrs. Jacob purchased the advertised ‘Lifeboy’
and contracted skin disease inspite of using this soap according to the printed
instructions. She claimed reward of Rs.
2000. The claim is resisted by the company on the ground that offer was not
made to her and that in any case she had not communicated her acceptance of the
offer. Decide whether Mrs. Jacob can
claim the reward or not. Give reasons.
Explain briefly?
(5 Marks)
Q.6. In each set of statements, only one is correct. State the correct statements & Explain
briefly?
a) i) A bailee has a
general lien on the goods bailed.
ii) The ownership of goods pawned passes to the
pawnee.
iii)
A gratuitous bailment can be
terminated by the bailor even
before
the stated time.
b) i) A
substituted agent is as good an agent of the agent as a sub-
agent.
ii)
An ostensible agency is as
effective as an express agency.
iii)
A principal can always revoke an
agent’s authority. (5 Marks)
Q.7. A, an unpaid seller, sends goods to B by
railway. B becomes insolvent
And
A sends a telegram to Railway authorities not to deliver the goods to B. B.
goes to the Parcel office of Railway Yard and by presenting R. R. (Railway Receipt) takes delivery of the goods
and starts putting them in the cart.
Meanwhile the Station Master comes running with the telegram in hand and
takes possession of the goods from B.
Discuss the rights of A and B to the goods in possession of Railway
authorities. (5 Marks)
Q.8. X needs Rs. 10,000 but cannot raise this amount because his credit
is not good enough. Y whose credit is
good accommodates. X by giving him a
pronote made out in favour of X, though Y owes no money to X. X endorses the pronote to Z for value
received. Z who is holder in due
course demands payment from Y. Can Y refuse
and plead the arrangement between him and X Explain briefly? (5 Marks)
Q.9. Will C has the right of further negotiation in the following cases:
(B signs the endorsements) Explain
briefly? (5 Marks)
i) ‘Pay C for my use’
ii) ‘Pay C’)
iii)
‘Pay C or order for the account
of B’
Q.10. A promissory note was made without mentioning any time for
payment. The holder added the words’ on
demand on the face of the instrument.
State whether it amounted to material alteration and explain the effect
of such alteration. Explain briefly? (5 Marks)
Q.11. State whether the following instruments are valid promissory
notes:
i) I promise to pay Rs. 5000 to B on the dearth of ‘B’s uncle
provided that D in his will gives me a legacy sufficient for the promise of
payment of the said sum.
ii) I hereby acknowledge that I owe X Rs. 5,000 on account of rent
due and I agree that the said sum will be paid be me in regular installments.
iii)
I acknowledge myself indebted to
B in Rs. 5000 to be paid on demand for value received. (5 Marks)
Q.12. A Payee holder of a bill of exchange. He endorses it in blank and delivers it to
B. B endorses in full to C or
order. C without endorsement transfers
the bill to D. State giving reasons
whether D as bearer of the bill of exchange is entitled to recover the payment
from A or B or C. Explain briefly?
(5 Marks)
Q.13. Write a short note on the Doctrine of Indoor Management?
Explain briefly? (5 Marks)
Q.14. The shareholders at an annual general meeting passed a
resolution for the payment of dividend at a rate higher than that recommended
by the Board of Directors. Examine the
validity of the resolution. Explain briefly?
(5 Marks)
Q.15. In a prospectus issued by a company the Managing Director
stated that the company had paid dividend every year during 1921 – 27, which
was a fact. However, the company had
sustained losses during the relevant period and had paid dividends out of
secret reserves accumulated in the past.
Examine the consequences of the observation made by the Managing
Director. Explain briefly? (5 Marks)
Q.16. In a prospectus issued by a company the Managing Director
stated that the company had paid dividend every year during 1921-27, which was
a fact. However, the company had
sustained losses during the relevant period and had dividends out of secret
reserves accumulated in the past.
Examine the consequences of the observation made by the Managing
Director. Explain briefly? (5 Marks)
Q.17. A buys from B 400 shares in a company on the
faith of a share certificate issued by the company. A tender to the company a transfer deed duly
executed together with B’s share certificate.
The company discovers that the certificate in the name of B has been
fraudulently obtained and refuses to register the transfer. Advise A. Explain
briefly? (5 Marks)
Q.18. A insured his house against fire. Later while insure, A killed his wife,
severely injured his only son, set fire to the house and died in the fire. The son survived and sued the insurer for the
fire loss, advice the insurer. Explain
briefly? (5 Marks)
Q.19. a) Satrang Singh admitted
his only infant son in a private nursing home.
As a result of strong dose of medicine administered by the nursing
attendant, the child has become mentally retarded. Satrang Singh wants to make
a complaint to the District Forum under the Consumer Protection Act, 1986
seeking relief by way of compensation on the ground that there was deficiency
in service by the nursing home. Does his
complaint give rise to a consumer dispute?
Who is the consumer in the instant case? Explain briefly?
b) Smart booked a motor vehicle through one of the dealers. He was informed subsequently that the
procedure for purchasing the motor vehicle had changed and was called upon to
make further payment to continue the booking before delivery. On being aggrieved, Smart filed a complaint
with the State Commission under the Consumer Protection Act, 1986. Will he succeed? Explain briefly?
c) Brittle and Company, a small-scale industry, sought nursing and
financing facilities from its bankers by means of grant of further advances and
adequate margin money in anticipation of good demand for its products. In failing to obtain this and having become
sick, it proceeds against its bankers under the Consumer Protection Act, 1986,
Will it succeed? Explain briefly?
(5 Marks)
Q.20. X who was working as a truck driver had taken a general
insurance policy to cover the risk of injuries for a period from 1.11.1998 to
30.11.1999. He renewed the policy for a
further period of one year on 10.11.1999.
On the same day, he met with an accident and suffered multiple injuries
including fractures. X submitted the
claim along with documents to the insurance company. The insurance company
repudiated the claim on the ground that the premium for the renewed policy was
received in the office only at 2.30
p.m. on 10.11.1999, while the accident had taken place at 10.00 a.m. on that day and hence
there was no policy at the time of accident.
Will X succeed if he files a complaint against the insurance company for
this claim? Explain briefly? (5
Marks)
Q.21. Avinash booked his goods with Superfast Freight Carriers at Delhi for being carried to
Ferozabad. The goods receipt note
mentioned that all the disputes would be subject to jurisdiction of the Mumbai Court. Avinash lodged a complaint for certain
deficiency in service against the transporter in the District Forum at Delhi. Superfast Carriers contested that District
Forum at Delhi had no jurisdiction to entertain the complaint as the head
office of the transporter was at Mumbai and the jurisdiction has been clearly
stated in the goods receipt not. Is the
contention of the transporter tenable? Explain briefly? (5 Marks)
Q.22. With reference to the provisions of the Consumer Protection
Act, 1986, decide the following giving reasons in support of your answer.
i) Sukh Dukh Ltd. dispatched certain consignments of goods by road
through Fastrack Roadways Ltd. The goods were unloaded and stored in a godown
enroute on the suggestion of consignee. A
fire broke out in the neighbouring godown spread to the godown and goods were
destroyed. The Fastrack Roadways Ltd.
claimed that there was neither negligence nor deficiency in service on their
part and goods were being carried at “Owner risk” and since no special premium
was paid, they were not responsible for the loss caused by fire. Whether Fastrack Roadways Ltd. is liable to
pay damages to consignor?
ii) Life Insurance Corporation (LIC) formulated a scheme called
‘salary saving scheme’ under which employees of an organisation could buy an
insurance policy. Premium due on each
policy was collected by the employer from the salary of the employees nor did
it issue any premium notice. When the
widow of the deceased employee made a claim to LIC on the death of her husband,
the LIC repudiated the claim on the ground that four installments of premium
had not been paid. The widow was
approached the consumer forum for redressal. Is the LIC liable for deficiency
in service? Explain?
iii) Raman booked a ticket from Delhi to
New York by
Lufthansa Airlines. The airport
authorities in New Delhi
did not find any fault in his visa and other documents. However, at Frankfurt airport authorities
instituted proceedings of verification because of which Raman missed his flight
to New York. After necessary verification, Raman was able
to reach New York
by the next flight. The airline
authorities’ tendered apology to Raman for the inconvenience caused to him and
also paid as goodwill gesture a sum of Rs. 5,000. Raman intends to institute proceedings under
the Consumer Protection Act, 1986 against Lufthansa Airlines for deficiency in
service. Will he succeed? (10 Marks )
Q.23. With reference to the provisions of the Consumer Protection
Act, 1986, decide the following giving reasons in support of your answer.
i) Sohn sent all relevant documents in an envelope regarding
consignment of goods to a buyer in the USA through Fast Service
Couriers. The documents did not reach
the buyer as a consequence of which the buyer could not take delivery of the
goods. By the time the duplicate copies
of the document had been received by the buyer, the season of the goods was
over. He claimed that he had suffered a
loss of US $ 5,000 as a result of the negligence of the courier. The State Commission ordered the payment to
be made by the Fast Service Couriers, but the National Commission in appeal
reversed the order and ordered payment of US $ 100 only as per the receipt
issued by the Fast Service Courier to the consignor at the time of the dispatch
of the latter. Advise Sohan.
ii) Mahesh purchased a machine from Astute Ltd. to operate it
himself for earning his liverhood. He
took the assistance of a person to assist him in operating the machine. The machine developed fault during the
warranty period. He filed a claim in the consumer forum against the company for
deficiency in service. Astute Ltd.
alleged that Mahesh did not operate the machine himself but had appointed a
person exclusively to operate the machine.
Will Mahesh succeed?
iii) Pillai purchased a car by taking a loan from Kerala cooperative
Bank Ltd. and gave post-dated cheques to the bank not only in respect of
repayment of loan instalments but also of premium of insurance policy for two
succeeding years. On the expiry of the policy.
Pillai’s car met with an accident.
Will Pillai succeed in getting a claim against the
Bank
? (10
Marks)
