Quiz-1: Legal Aspects of Business
PGP I, Term II, September to December, 2008
Set 1: Answer
This quiz is a multiple choice paper. In this format, the options do not necessarily
answer the question posed. Instead, only one among the four options is appropriate
or correct in relation to the question. The thrust, thus, should be in understanding the
question and assessing each of the four options to identify the correct option.
This is a closed book quiz. Kindly do not use any reference material.
Kindly answer a question by encircling the selected option. For changing a selected
answer, put a cross mark on the encircled option and encircle the new answer. Only
pen should be used for answering the questions.
One mark will be awarded for a correct answer. No marks will be deducted for a
wrong answer. Write your name and Section before proceeding to answer the
1. The procurement manager of Fair Trading Ltd. enquired with a bookstore for the
immediate supply of 50 copies of a book. The store replied that they only had hard
bound copies priced at Rs. 1100 a copy, exclusive of VAT. The manager said, “Go
ahead and send it over to me. You have our address and contact details.” The
bookstore had dealt with them once before, a month back. In this while, the manager
found another supplier who could give him paperback edition of the book for Rs. 500
a copy. The manager called back the store and said, “We do not want the books.
Kindly do not send them.” The store replied, “We have already sent the books over to