Here is the continuation of the MCQs on the Sale of Goods Act, 1930, along with answers and explanations:
- Under the Sale of Goods Act, 1930, which goods are NOT included in the term “goods”?
a) Crops
b) Machinery
c) Patents
d) Immovable property
Answer: d) Immovable property
Explanation: “Goods” under Section 2(7) includes movable property, but excludes immovable property like land and buildings.
- The term “future goods” means goods:
a) That are already in existence
b) To be manufactured or produced in the future
c) Sold by sample
d) That are defective
Answer: b) To be manufactured or produced in the future
Explanation: Future goods, as per Section 2(6), refer to goods that will be manufactured, produced, or acquired after the contract is made.
- The right of stoppage in transit arises when:
a) The buyer becomes insolvent
b) The goods are destroyed
c) The seller is unpaid
d) Both a) and c)
Answer: d) Both a) and c)
Explanation: An unpaid seller has the right to stop goods in transit if the buyer becomes insolvent (Section 50).
- In which of the following cases can a seller resell the goods?
a) If the buyer delays payment
b) If the buyer refuses to accept delivery
c) If the seller exercises the right of lien or stoppage in transit
d) All of the above
Answer: d) All of the above
Explanation: An unpaid seller may resell the goods if the buyer defaults or delays, as per Section 54.
- A warranty is:
a) An essential stipulation to the contract
b) A collateral stipulation to the contract
c) A condition precedent to the contract
d) The main objective of the contract
Answer: b) A collateral stipulation to the contract
Explanation: A warranty is a minor term of the contract that does not affect the core objective (Section 12).
- In case of a breach of condition, the buyer can:
a) Treat the contract as repudiated
b) Recover damages
c) Waive the condition and accept the goods
d) All of the above
Answer: d) All of the above
Explanation: Section 13 allows the buyer multiple remedies in case of a breach of condition, including treating it as a breach of warranty.
- The term “merchantable quality” implies:
a) Goods are of reasonable quality
b) Goods are fit for the ordinary purpose for which they are used
c) Goods can be resold in the market
d) All of the above
Answer: d) All of the above
Explanation: Merchantable quality means goods are of reasonable standard and fit for resale (Section 16).
- A person who buys goods for resale is considered:
a) A buyer under the Sale of Goods Act
b) Not a buyer under the Act
c) A wholesaler
d) A retailer
Answer: a) A buyer under the Sale of Goods Act
Explanation: The Act defines a buyer as anyone who purchases goods, regardless of the purpose.
- A contract of sale involving the exchange of goods and no money is:
a) Sale
b) Barter
c) Void
d) Agreement to sell
Answer: b) Barter
Explanation: A barter involves the exchange of goods for goods, whereas a sale involves goods exchanged for money.
- The Sale of Goods Act, 1930, applies to:
a) Only domestic sales
b) Only international sales
c) Both domestic and international sales
d) Neither domestic nor international sales
Answer: c) Both domestic and international sales
Explanation: The Act applies to all contracts of sale in India unless excluded by agreement.
- Which section of the Sale of Goods Act deals with implied conditions and warranties?
a) Section 10
b) Section 12
c) Section 14
d) Section 16
Answer: d) Section 16
Explanation: Section 16 outlines the implied conditions and warranties, such as fitness for purpose and merchantable quality.
- What is the remedy available to the buyer in case of delivery of defective goods?
a) Reject the goods
b) Accept the goods and claim damages
c) Replace the goods
d) Either a) or b)
Answer: d) Either a) or b)
Explanation: The buyer can reject defective goods or accept them and claim damages.
- The Sale of Goods Act, 1930, is based on:
a) Indian Contract Act, 1872
b) English Sale of Goods Act, 1893
c) Transfer of Property Act, 1882
d) None of the above
Answer: b) English Sale of Goods Act, 1893
Explanation: The Indian Sale of Goods Act is modeled on the English Sale of Goods Act, 1893.
- When does ownership of unascertained goods pass to the buyer?
a) At the time of contract
b) When goods are ascertained
c) On payment of price
d) On delivery of goods
Answer: b) When goods are ascertained
Explanation: Ownership of unascertained goods passes only after the goods are identified and appropriated to the contract (Section 18).
- An unpaid seller can exercise the right of lien when:
a) Ownership has not passed to the buyer
b) Ownership has passed but payment is due
c) Goods are in transit
d) Goods are defective
Answer: b) Ownership has passed but payment is due
Explanation: The right of lien is available when the seller is unpaid and retains possession of the goods.