Here is the continuation of MCQs on the Sale of Goods Act, 1930, with answers and explanations:
- The transfer of property in goods means:
a) The transfer of possession of goods
b) The transfer of ownership of goods
c) The transfer of risk associated with goods
d) The transfer of delivery charges
Answer: b) The transfer of ownership of goods
Explanation: “Property in goods” refers to ownership and the rights associated with the goods, as per the Act.
- Which of the following is an implied condition in a contract of sale?
a) Quiet possession
b) Right to sell
c) Goods shall correspond to description
d) Both b) and c)
Answer: d) Both b) and c)
Explanation: Conditions as to the right to sell and correspondence to description are implied under Sections 14(a) and 15.
- The Sale of Goods Act applies to:
a) Movable goods only
b) Immovable goods only
c) Both movable and immovable goods
d) None of the above
Answer: a) Movable goods only
Explanation: Section 2(7) specifies that the Act applies only to movable goods.
- The term “price” in the context of a sale means:
a) Any monetary consideration
b) The cost of production
c) A combination of money and goods
d) None of the above
Answer: a) Any monetary consideration
Explanation: Price refers to the consideration in money for the transfer of ownership of goods (Section 2(10)).
- A sale by auction is governed under:
a) Section 59
b) Section 60
c) Section 64
d) Section 65
Answer: c) Section 64
Explanation: Section 64 of the Act provides rules for sales by auction, including the acceptance of bids.
- If the goods are perishable in nature, the unpaid seller can:
a) Retain the goods
b) Resell the goods immediately
c) Destroy the goods
d) File a suit for damages
Answer: b) Resell the goods immediately
Explanation: Under Section 54, the seller can resell perishable goods without notice if the buyer defaults.
- When is delivery considered complete?
a) When the buyer receives goods
b) When the seller loads the goods for transportation
c) When the buyer pays for the goods
d) When the risk is transferred
Answer: a) When the buyer receives goods
Explanation: Delivery is considered complete when possession of the goods is transferred to the buyer (Section 33).
- If the buyer refuses to take delivery of goods, the seller may:
a) Sue the buyer for damages
b) Destroy the goods
c) Cancel the contract
d) Both a) and c)
Answer: d) Both a) and c)
Explanation: The seller has remedies such as suing for damages and canceling the contract if the buyer refuses delivery.
- In a sale by sample, the bulk of goods must:
a) Be of superior quality
b) Correspond with the sample
c) Be inspected by the buyer
d) Be delivered in parts
Answer: b) Correspond with the sample
Explanation: Section 17 requires that goods in a sale by sample correspond with the sample.
- The risk in goods passes to the buyer:
a) When possession is transferred
b) When payment is made
c) When ownership is transferred
d) When the contract is signed
Answer: c) When ownership is transferred
Explanation: Risk generally passes with ownership, as per Section 26.
- Goods that are yet to be manufactured are known as:
a) Existing goods
b) Future goods
c) Unascertained goods
d) Contingent goods
Answer: b) Future goods
Explanation: Future goods are those that will be manufactured or acquired after the contract is made (Section 2(6)).
- What does “lien” mean under the Sale of Goods Act?
a) The right to resell goods
b) The right to hold goods until payment is made
c) The right to reject defective goods
d) The right to cancel the contract
Answer: b) The right to hold goods until payment is made
Explanation: Lien is the seller’s right to retain possession of goods until payment is made (Section 47).
- An unpaid seller can exercise the right of stoppage in transit when:
a) The buyer is insolvent
b) The goods are defective
c) The price is reduced
d) The buyer refuses delivery
Answer: a) The buyer is insolvent
Explanation: The seller can stop goods in transit if the buyer becomes insolvent, as per Section 50.
- A condition in a contract of sale may be treated as a warranty if:
a) The seller agrees
b) The buyer waives the condition
c) The contract is rescinded
d) None of the above
Answer: b) The buyer waives the condition
Explanation: As per Section 13, a buyer may waive a condition and treat it as a warranty instead.
- The Sale of Goods Act was originally part of which Act?
a) Transfer of Property Act, 1882
b) Indian Contract Act, 1872
c) Companies Act, 1913
d) Partnership Act, 1932
Answer: b) Indian Contract Act, 1872
Explanation: The provisions related to the sale of goods were initially part of the Indian Contract Act but were separated in 1930.
- Who bears the risk of loss if goods are damaged during transit?
a) Buyer, if ownership has passed
b) Seller, if ownership has not passed
c) Carrier, in all cases
d) Both a) and b)
Answer: d) Both a) and b)
Explanation: Risk follows ownership unless agreed otherwise (Section 26).
- When goods are sold on a “sale or return” basis, ownership passes to the buyer when:
a) The buyer signifies approval
b) The buyer retains goods beyond the agreed time
c) The buyer adopts the transaction
d) All of the above
Answer: d) All of the above
Explanation: Ownership passes upon approval, adoption, or expiration of the agreed time (Section 24).