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Master of Business Administration- MBA Semester 3
MB0051Legal Aspects of Business-4 Credits
(Book ID: B1725)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each.
Each Question carries 10 marks 6 X 10=60
Q1. What are the rights of a surety?
Answer. Rights of a surety may be classified under three heads:
Rights against the principal debtor
Rights against the creditor,
Rights against co-sureties.
Rights against the principal debtor:
Right of subrogation: Section 140 provides that where a surety has paid the
guaranteed debt on the due date or has performed the guaranteed duty on the
default of the principal debtor, he/she is invested with all rights that the creditor has
against the debtor. In other words, the surety is subrogated to all rights that the
creditor had against the principal debtor. Hence, if the creditor loses or without the
consent of the

Q2. Explain duties of a Bailor and a Bailee.

Answer. The person delivering the goods is called the bailor. It is the bailor's duty to
disclose to the bailee all faults in the goods bailed. The person to whom the goods are
delivered is called the bailee. The bailee's duty is to take care of the goods bailed to
him.
Duties of the Bailor: Explain the Defect:-

It is the basic duty of the bailor that he should disclose all the defects of the goods
before delivering to

Q3. Power of Attorney is considered as an important concept in Business

Law. Explain.
Answer. Power of Attorney: A power of attorney is an instrument containing an
authorization for one to act as the agent of the principal that terminates at some
point in the future either by its terms or by operation of law such as death of the
principal or agent. They are also called letters of attorney. The person appointed is
usually called an Attorney-in-Fact.
Types of Power of Attorney:

Q4. The Banking Regulation Act, 1949, provides various methods of

regulation of the banking business. Describe the key areas of regulation.
Answer. The Banking Regulation Act, 1949, provides various methods of regulation of
the banking business. Some of the key areas of regulation are:
Power to provide directions Sections 21 and 35A of the Act empower the RBI
to regulate the business of banks by issuing directions controlling various aspects of
banking. Section 21 provides the power to regulate advances of banking companies,
while Section 35A provides powers of regulation over banks. These statutory
directions issued by the RBI are binding on banks. The circulars issued by the RBI,
pertaining to its statutory power are binding on banks. The RBI is expected to issue
directives with

Q5. Explain the nature and scope of complaints under the Consumer
Protection Act?
Answer. Persons competent to make complaints:
Any of the following people may file a complaint under the Act:
1. The consumer to whom such goods are sold or delivered or agreed to be sold or
delivered or such service provided or agreed to be provided. In case of death of a
consumer, the legal heir or representative can file a complaint.
2. Any recognized consumers association namely, any voluntary consumer
association registered under the Companies Act, 1956, or any other law for the time
being in force. It is not necessary that the consumer is a member of such an
association.

Q6. Explain the need and types of meetings.

Answer. The need and types of meetings are:A company is an artificial person and therefore, must act through some human
intermediary. The various provisions of law empower shareholders to do certain
things. They are specifically reserved for them to be done in companys general
meetings. Section 291 empowers the Board of Directors to manage the affairs of the
company. In this context, meetings of shareholders and directors become necessary.
The Act has

Summer-2016
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each.
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