Here is the continuation of MCQs on the Sale of Goods Act, 1930, with answers and explanations:
- A buyer may reject goods if they are:
a) Defective
b) Do not correspond with the contract
c) Delivered late without the buyer’s consent
d) All of the above
Answer: d) All of the above
Explanation: The buyer has the right to reject goods if they do not meet the terms of the contract, as per Section 37.
- In case of installment deliveries, the buyer:
a) Can reject all installments if one is defective
b) Must accept all installments
c) Can reject the defective installment without affecting the entire contract
d) Has no rights under the Act
Answer: c) Can reject the defective installment without affecting the entire contract
Explanation: Section 38 allows rejection of a defective installment while keeping the remaining contract valid, depending on its terms.
- When does risk pass to the buyer in a contract of sale?
a) When the goods are delivered
b) When the contract is signed
c) When the property is transferred
d) When payment is made
Answer: c) When the property is transferred
Explanation: Risk generally passes with ownership unless agreed otherwise (Section 26).
- The unpaid seller’s right of resale is mentioned in which section?
a) Section 52
b) Section 54
c) Section 56
d) Section 58
Answer: b) Section 54
Explanation: Section 54 allows the unpaid seller to resell the goods under specified circumstances.
- Which of the following is a remedy available to the buyer for breach of contract?
a) Specific performance
b) Rescission of contract
c) Damages for non-delivery
d) All of the above
Answer: d) All of the above
Explanation: Sections 57 and 58 provide remedies such as specific performance, rescission, and damages to the buyer.
- The term “reasonable time” under the Sale of Goods Act, 1930, is:
a) Fixed by the court
b) Determined by the circumstances of the case
c) 30 days
d) Not defined in the Act
Answer: b) Determined by the circumstances of the case
Explanation: The term “reasonable time” is interpreted based on the facts and circumstances of each case (Section 63).
- In a sale by sample, which of the following is NOT required?
a) The bulk must correspond with the sample
b) The buyer must have the opportunity to compare the bulk with the sample
c) The goods must be of merchantable quality
d) The goods must be fit for a specific purpose
Answer: d) The goods must be fit for a specific purpose
Explanation: Fitness for a specific purpose is an implied condition only if the buyer relies on the seller’s expertise, not a requirement for a sale by sample (Section 17).
- The buyer can rescind the contract in case of:
a) Breach of warranty
b) Breach of condition
c) Delivery of the wrong quantity
d) Late delivery
Answer: b) Breach of condition
Explanation: A breach of condition allows the buyer to treat the contract as repudiated, as per Section 13.
- When can the seller recover the price of goods?
a) When ownership has passed to the buyer
b) When the goods are ready for delivery
c) When the buyer refuses delivery
d) Both a) and c)
Answer: d) Both a) and c)
Explanation: The seller can recover the price if the ownership has passed, even if the buyer refuses delivery (Section 55).
- A buyer’s right to examine goods before accepting them is covered under:
a) Section 35
b) Section 36
c) Section 37
d) Section 38
Answer: a) Section 35
Explanation: Section 35 gives the buyer the right to examine goods to ensure they conform to the contract before accepting them.
- The right of stoppage in transit ends when:
a) The buyer takes delivery of the goods
b) The goods are delivered to the carrier
c) The seller gives notice of stoppage
d) The goods reach the buyer’s city
Answer: a) The buyer takes delivery of the goods
Explanation: The right of stoppage in transit ends once the buyer takes possession of the goods (Section 51).
- Which of the following constitutes a valid delivery under the Act?
a) Delivery by hand
b) Delivery through a third party
c) Symbolic delivery
d) All of the above
Answer: d) All of the above
Explanation: Delivery can be actual, constructive, or symbolic, as per Section 33.
- The contract of sale becomes void if:
a) Goods are destroyed before the contract is made
b) Goods are perished before ownership is transferred
c) Payment is not made on time
d) Delivery is not made on time
Answer: b) Goods are perished before ownership is transferred
Explanation: Under Section 8, the contract is void if specific goods perish without the seller’s fault before ownership passes to the buyer.
- Specific goods are:
a) Goods identified and agreed upon at the time of the contract
b) Goods to be manufactured in the future
c) Goods that are perishable
d) Goods delivered in parts
Answer: a) Goods identified and agreed upon at the time of the contract
Explanation: Section 2(14) defines specific goods as those identified at the time of the contract.
- Under the Act, who is considered an “unpaid seller”?
a) A seller who has not received the full payment
b) A seller who has received a cheque that is dishonored
c) A seller who has not received payment for a part of the goods
d) All of the above
Answer: d) All of the above
Explanation: Section 45 defines an unpaid seller as one who has not received full payment, including cases of dishonored cheques.
- The right of lien is available when:
a) The buyer has taken possession of the goods
b) The seller is unpaid and retains possession of the goods
c) The goods are in transit
d) None of the above
Answer: b) The seller is unpaid and retains possession of the goods
Explanation: Section 47 gives the unpaid seller the right to retain goods until payment is made.
- Which of the following is NOT a remedy available to the seller?
a) Right of resale
b) Right of stoppage in transit
c) Right of specific performance
d) Right of lien
Answer: c) Right of specific performance
Explanation: Specific performance is a remedy available to the buyer, not the seller, as per Section 58.
- Which of the following is NOT covered under “goods” in the Act?
a) Stocks
b) Shares
c) Actionable claims
d) Crops
Answer: c) Actionable claims
Explanation: As per Section 2(7), actionable claims are excluded from the definition of goods.
- When goods are sold “on approval,” ownership passes when:
a) The buyer approves the goods
b) The buyer retains goods beyond the approval period
c) The buyer adopts the transaction
d) Any of the above
Answer: d) Any of the above
Explanation: Ownership passes upon approval, retention, or adoption of the transaction (Section 24).
- In a sale by description, what happens if goods do not correspond with the description?
a) The buyer must accept the goods
b) The buyer can reject the goods
c) The seller can force the buyer to accept
d) None of the above
Answer: b) The buyer can reject the goods
Explanation: Section 15 allows the buyer to reject goods if they do not correspond with the description.
- In the event of partial payment, the seller’s lien:
a) Is lost
b) Is retained for the unpaid amount
c) Is converted into a right of resale
d) None of the above
Answer: b) Is retained for the unpaid amount
Explanation: The lien is retained for the unpaid amount even if partial payment is made (Section 47).
- If the goods are delivered by installments, the buyer can reject the whole contract if:
a) The seller fails to deliver one installment
b) The defective installment affects the entire contract
c) The buyer wants to terminate the contract
d) None of the above
Answer: b) The defective installment affects the entire contract
Explanation: Section 38(2) allows rejection of the entire contract only if the breach affects its core.
- In a sale by auction, the property is transferred to the buyer when:
a) The auction begins
b) The bid is accepted
c) The buyer makes payment
d) The goods are delivered
Answer: b) The bid is accepted
Explanation: Ownership is transferred when the auctioneer accepts the highest bid (Section 64).
- Delivery of goods to a carrier is deemed as:
a) Delivery to the buyer
b) Delivery to the seller
c) Delivery in transit
d) Symbolic delivery
Answer: a) Delivery to the buyer
Explanation: Under Section 39, delivery to a carrier is considered delivery to the buyer.
- The Sale of Goods Act, 1930, primarily governs:
a) Movable goods only
b) Services
c) Intellectual property rights
d) Employment contracts
Answer: a) Movable goods only
Explanation: The Act applies only to contracts related to the sale of movable goods, as per Section 2(7).