Here are the next set of MCQs on the Sale of Goods Act, 1930, continuing from the previous list:
- A stipulation in a contract of sale may be:
a) A condition
b) A warranty
c) Either a condition or a warranty
d) None of the above
Answer: c) Either a condition or a warranty
Explanation: A stipulation may be a condition (essential to the main purpose of the contract) or a warranty (collateral to the main purpose).
- The doctrine of caveat emptor means:
a) Let the seller beware
b) Let the buyer beware
c) Seller is responsible for defects
d) Buyer has no rights
Answer: b) Let the buyer beware
Explanation: The doctrine of caveat emptor places the responsibility on the buyer to inspect goods before purchase unless the seller provides a warranty.
- Which of the following is NOT an implied condition under the Sale of Goods Act, 1930?
a) Condition as to title
b) Condition as to fitness for purpose
c) Condition as to free from encumbrances
d) Condition as to sample
Answer: c) Condition as to free from encumbrances
Explanation: Condition as to free from encumbrances is an implied warranty, not a condition.
- In case of a sale by sample, the goods should:
a) Match the sample in quality
b) Be better than the sample
c) Be of merchantable quality
d) Both a) and c)
Answer: d) Both a) and c)
Explanation: Under Section 17, goods must correspond with the sample and be of merchantable quality.
- The risk in goods sold passes to the buyer when:
a) The ownership is transferred
b) The payment is made
c) Delivery is completed
d) The contract is signed
Answer: a) The ownership is transferred
Explanation: As per Section 26, the risk follows ownership, not possession, unless otherwise agreed.
- The right of an unpaid seller is:
a) To stop goods in transit
b) To retain possession of goods
c) To resell the goods
d) All of the above
Answer: d) All of the above
Explanation: Sections 45–54 describe the rights of an unpaid seller, including lien, stoppage in transit, and resale.
- When goods are sold on approval, the ownership passes to the buyer:
a) When the buyer signifies approval
b) When the buyer does any act adopting the goods
c) When the buyer retains the goods beyond the agreed time
d) All of the above
Answer: d) All of the above
Explanation: As per Section 24, in a sale on approval, ownership passes upon approval, adoption, or lapse of the agreed time.
- What is the legal consequence of selling goods that belong to someone else without their permission?
a) The sale is valid
b) The sale is voidable
c) The sale is void
d) The buyer acquires good title
Answer: c) The sale is void
Explanation: Under Section 27, a seller cannot transfer ownership of goods they do not own unless authorized by the owner.
- Which of the following is NOT a type of delivery under the Sale of Goods Act, 1930?
a) Actual delivery
b) Symbolic delivery
c) Constructive delivery
d) Implied delivery
Answer: d) Implied delivery
Explanation: The Act recognizes actual, symbolic, and constructive delivery, but not implied delivery.
- A contract of sale is void if:
a) The goods are stolen
b) The seller has no right to sell the goods
c) The goods are perished before the contract is made
d) All of the above
Answer: c) The goods are perished before the contract is made
Explanation: Under Section 7, if goods are perished at the time of the contract, the contract is void.
- The implied warranty of quiet possession means:
a) The seller has the title to goods
b) The buyer shall enjoy possession without disturbance
c) The goods are of merchantable quality
d) None of the above
Answer: b) The buyer shall enjoy possession without disturbance
Explanation: Section 14(b) provides that the buyer is entitled to quiet possession of goods.
- When is stoppage in transit NOT possible?
a) When goods are delivered to the buyer
b) When goods are still in possession of the carrier
c) When goods are in transit
d) When the seller becomes insolvent
Answer: a) When goods are delivered to the buyer
Explanation: The seller’s right to stoppage in transit ends when the buyer takes delivery.
- Who bears the risk of loss when goods are delivered at the buyer’s risk?
a) Seller
b) Buyer
c) Carrier
d) Insurance company
Answer: b) Buyer
Explanation: When goods are delivered at the buyer’s risk, the buyer bears the risk of loss.
- The contract of sale becomes void when:
a) Goods are damaged after the contract but before delivery
b) Goods perish before the contract without the knowledge of the seller
c) Goods are delivered late
d) The buyer refuses to pay the price
Answer: b) Goods perish before the contract without the knowledge of the seller
Explanation: As per Section 7, the contract is void if goods perish before the contract is made and the seller was unaware.
- What happens if the buyer defaults on payment in a contract of sale?
a) The seller loses all rights
b) The seller can sue for the price
c) The seller can terminate the contract
d) Both b) and c)
Answer: d) Both b) and c)
Explanation: The seller can sue for the price or terminate the contract if the buyer defaults, depending on the situation.