CA PE - II :: Business and Corporate Laws : May 2004

Shambhu Dayal started "self service" system in his shop. Smt. Prakash entered the shop, took a basket and after taking articles of her choice into the basket reached the cashier for payments. The cashier refuses to accept the price. Can Shambhu Dayal be compelled to sell the said articles to Smt. Prakash? Decide

For the purpose of making uniform for the employees, Bansi Bhaiya bought dark blue coloured cloth from Vivek, but did not disclose to the seller the purpose of said purchase. When uniforms were prepared and used by the employees, the cloth was found unfit. However, there was evidence that the cloth was fit for caps, boots and carriage lining. Advise Bansi Bhaiya whether he is entitled to have any remedy under the Sale of Goods Act, 1930?

"Mere sharing in the profits of a business is not a conclusive proof of existence of partnership". —Comment.

Describe, in brief, the main amendments incorporated by the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 in Sections 138, 141 and 142 of the Principal Act i.e. the Negotiable Instruments Act, 1881.

Decide whether the following persons are entitled to get bonus under the Payment of Bonus Act, 1965

Is the amount standing to the credit of a member of the Provident Fund attachable in the execution of decree or order of the Court? Examine the law, on this point, laid down in the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

Is the power to cancel registration of a society available to the Registrar under the provisions of the Cooperative Societies Act, 1912? If yes, explain the circumstances whereunder he said power can be exercised by the Registrar.

Can a cooperative society be converted into a Multi-State Cooperative Society? If yes, state the procedure of the said conversion under the provisions of the Multi-State Cooperative Societies Act, 2002.

Akhilesh entered into an agreement with Shekhar to deliver him (Shekhar) 5,000 bags to be manufactured in his factory. The bags could not be manufactured because of strike by the workers and Akhilesh failed to supply he said bags to Shekhar. Decide whether Akhilesh can be exempted from liability under the provisions of the Indian Contract Act, 1872.

What do you understand by the term "unpaid seller" under the Sale of Goods act, 1930? When can an unpaid seller exercise the right of stoppage of goods in transit?

Point out the differences between conditions and warranties under the Sale of Goods Act, 1930.

Ram, Shyam and Gopal are partners in a firm. Ram retires. Shyam and Gopal continue to carry on firm's business in the same "firm name". Do you agree that in this situation change in the relationship between partners is involved, but his is not extinguishment of the existence of the firm itself? Give reasons.

What is a "Promissory Note" and what are its elements?

S writes "I promise to pay `B' a sum of Rs. 500, seven days after my marriage with `C'". Is this a promissory note?

What is the minimum and maximum amount of bonus payable to an employee under the Payment of Bonus Act, 1965?

Explain the concept of "Basic Wages" under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.

Describe the privileges available to a Multi-State Cooperative Society under the Multi-State Cooperative Societies Act, 2002.

Discuss the restrictions on the powers of a society registered under the Cooperative Societies Act, 1912 to make loans and to contribute to charitable purposes.

Describe the circumstances whereunder notice of dishonour is excused under the Negotiable Instruments Act, 1881.

What do you understand by Pre-incorporation Contracts? Distinguish between Pre-incorporation contracts and Provisional contracts.

What is the procedure laid down in the provisions of the Companies Act, 1956 for converting a private company into a public company?

Can a company issue shares at discount? What is the law, in this relation, laid down in the Companies Act, 1956?

The Articles of Association of a Limited Company provided that `X' shall be the Law Officer of the company and he shall be removed except on the ground of proved misconduct. Decide, whether company's action is valid?

"Diminution of capital does not constitute reduction of capital within the provisions of the Companies Act, 1956", —Comment.

A company issued a prospectus. All the statements contained therein were literally true. It also stated that the company had paid dividends for a number of years, but did not disclose the fact that the dividends were not paid out of trading profits, but out of capital profits. An allottee of shares wants to avoid the contract on the ground that the prospectus was false in material particulars. Decide.

Which of the institutions are regarded as "Public Financial Institutions" under the Companies act, 1956?

What is the concept of "charge" under the provisions of the Companies act, 1956? Point out the circumstances whereunder a floating charge becomes a fixed charge.

Explain the provisions of the Companies Act, 1956 relating to registration of a non-profit organisation as a company. What procedure is required ot be adopted for the said purpose?

What are the purposes for which "objects" can be altered by a company under the Companies Act, 1956? Briefly explain the procedure to be applied to such matters.

Explain the concept of "Deemed Prospectus" under the Companies Act, 1956. Point out the circumstances whereunder issuing of prospectus is not mandatory.