Mercantile Law 2009-Solved MCQs Competitive Exams Set 2

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(xi) For how much days, a promissory note is entitled to days of grace to be at maturity when it

is not expressed to be either payable on demand or otherwise?

(a) 30 days

(b) 15 days

(c) 3 days

(d) None of these

Answer: (b)

(xii) A promissory note is at maturity on Sunday, being public holiday. Whether such promissory

note will be deemed to be due on:

(a) The next preceding business day

(b) The next succeeding business day

(c) None of these

Answer: (a)

(xiii) Can a minor become a payee of a negotiable instrument?

(a) Yes

(b) No

(c) Not himself but his guardian (B)

Answer: (b)

(xiv) Life Insurance Policy cannot be called in question by an insurer on the ground of inaccurate

or false immaterial statement made in the proposal for insurance after:

(a) one year

(b) two years

(c) three years

(d) None of these

Answer: (a)

(xv) Willfully making statement false in any document required under Insurance Act. 1938, shall

be punishable with imprisonment upto:

(a) five years

(b) four years

(c) three years

(d) Fine only

(e) None of these

Answer: (d)

(xvi) Whether a minor can be appointed as nominee to Life Insurance Policy?

(a) Yes

(b) No

(c) His guardian only

(d) None of these

Answer: (a)

(xvii) Caveat emptor:

(a) Is a person who institutes pre-emption suit

(b) is seller who discloses defects in the goods being sold

(c) is the buyer who is supposed to be aware of the suitability of the goods

(d) is owner of anempty cave

(e) None of these

Answer: (b)

(xviii) Penalty provided for driving uninsured vehicle is:

(a) imprisonment upto 5 years and fine upto ₹ 1000/- or both

(b) imprisonment upto 1 year and fine upto ₹ 100/- or both

(c) Imprisonment upto 3 months or fine upto ₹ 500/- or with both

(d) Fine upto ₹ 10000/- only

(e) None of these

Answer: (e)

(xix) Can a compoundable criminal case be referred to arbitration?

(a) Yes

(b) No

(c) None of these as only civil matters can be referred to

Answer: (c)

(xx) Within how much period, the arbitrators are legally required to make their award after

entering on the reference?

(a) one month

(b) two months

(c) three months

(d) four months

(e) None of these

Answer: (d)