27th Batch

Semester II
Term End Exam
Subject: Business Law (205)
Total Marks: 50 Duration: 2.5 Hrs.

1. Discuss the following cases with legal reasoning:

a. Ford Motors inserted an advertisement in the newspapers stating that a person booking a Premier
Padmini car could enter into a contest in a lottery conducted by them. Under it, a person who was
successful in the draw could be entitled to two free tickets from New Delhi to New York and back. Shri
D. D. Gurupathak was one of the persons who was successful in the draw. He asked the dealers to give
him the value of the two tickets which was refused and he was asked to produce two passports to enable
them to book the tickets. Shri Gurupathak, however, produced one passport immediately but the second
after the end of the financial year. The dealer refuse to give the tickets on the ground that the accounts of
the financial year had been closed and they could not carry forward the liability of that year to the next
financial year under the provisions of the Income Tax Act Rules. Mr. Gurupathak feels that the dealer
has cheated him and files a suit against the dealer. Will Mr. Gurupathak succeed. Give reasons
supported by law for your answers. (10)

b. A loan was advanced by a director of a company, acting on behalf of the company. This director was
also a director of a private company which was the managing agent of the borrower company, and the
entire powers of the managing agency had been vested in him. The lender sued the company for the
recovery of the loan. The company pleaded that it was not liable to pay as no resolution had been
passed by the Board of directors of the company authorizing him to borrow on its behalf. Explain
whether the company or the lender, who will succeed in the suit as per the provisions of law. (10)

2. Answer the following questions (any two):

i. Explain the importance of the Information Technology Act, 2000. What are Electronic Records?
Explain the concept of Digital Signature with reference to Electronic Records. (9)

ii. Explain the nature of a contract giving all the essentials of a contract with examples. (9)

iii. What is Indemnity and Guarantee? Explain Guarantee at length. (9)

3. Write short notes on any two:

a. Infringement of copyright and remedies available against infringement. (6)

 b. Rights of Consumer enjoyed under the Consumer Protection Act and the three-tier machinery set up
there under. (6)

c. Meetings under the Companies Act, 1956. (6)

Set 1

27th Batch
Semester II
Term End Exam
Subject: Business Law (205)
Total Marks: 50 Duration: 2.5 Hrs.

1. Discuss the following cases with legal reasoning:

a. Suresh becomes surety to Mahesh for Kavita’s conduct as a manager of Mahesh’s bank.
Afterwards, Mahesh and Kavita contract, without Suresh’s consent that Kavita’s salary shall be
raised, and that she shall become liable for one-fourth of the losses on overdrafts. Kavita allows a
customer to overdraw, and the bank loses a sum of money. Mahesh calls Suresh to inform him that
the bank has incurred a loss and asks him to pay the amount. Suresh comes to know about the
contract between Mahesh and Kavita only when Mahesh calls him for repayment. Suresh refuses to
make any payment. Discuss the rights and liabilities of Mahesh, Suresh and Kavita. (10)

b. A company’s prospectus contained a representation that the company had been authorized by a
special Act of Parliament to run trams by steam or mechanical power. The authority to use steam
was, in fact, subject to the approval of the Board of Trade, but no mention was made of this. The
Board refused consent and consequently the company was wound up, The plaintiff, having bought
some shares, sues the directors for fraud. Will he succeed? (10)

1. Answer the following questions (any two):

 i. What are IPRs? Explain why the Intellectual Property Rights have earned a great importance
in today’s world while elaborating the rights and remedies available to a registered user of
the IPR. (9)

ii. What is Memorandum of Association? Explain in details all its clauses giving examples
wherever possible. (9)

iii. Enumerate and explain the characteristics of a Negotiable Instrument? Explain the
Promissory Note and bill of exchange in detail. (9)

2. Write short notes on any two:

a. Indemnity and Guarantee. (6)

b. Abuse of dominant position and Competition Commission of India. (6)

c. Lawful object and Lawful consideration. (6)

Set 2

27th Batch
Semester II
Term End Exam
Subject: Business Law (205)
Total Marks: 50 Duration: 2.5 Hrs.

1. Discuss the following cases with legal reasoning :

a. Hi-tech Technologies is a Public Ltd. Company. It has a growing business and it complies with
all the requirements of the Companies Act. The company served a notice of a general meeting upon
its members. The notice stated that a resolution to increase the share capital of the company would be
considered at such meeting. A shareholder complains that the amount of the proposed increase was
not specified in the notice and hence the notice is not valid. Do you agree? State giving reasons in
support of law. (10)
 b. Subhash at Delhi on 1st August, 1998 sends a letter to Bhavesh in Bombay offering to sell his car
for Rs. 1,20,000/-. Bhavesh on 2nd August, 1998 sends a letter to Subhash accepting the offer. This
acceptance letter reaches Subhash on 4th August, 1998. But on 3rd August, 1998 Subhash has sold the
car to Jhanvi and wired Subhash about the revocation of the offer. The telegram reaches Bhavesh on
3rd August, 1998 itself. Is there a breach of contract committed by Subhash? Give reasons. (10)

2. Answer the following questions (any two):

i. Explain the importance of the Competition Act. Explain Acquisition, Consumer, combination
and Service in reference to The Competition Act, 2002. (9)

ii. What is an offer? Explain the legal rules as to offer giving examples. (9)

iii. When is a Negotiable Instrument said to be discharged? What is the difference between
discharge of an instrument and discharge of a party to an instrument? (9)

3. Write short notes on any two:

a. Mistake and Misrepresentation. (6)

b. Prospectus and its types. (6)

c. Importance of the Environment and achievements of the Environment protection Act. (6)

Set 3

27th Batch
Semester II
Term End Exam
Subject: Business Law (205)
Total Marks: 50 Duration: 2.5 Hrs.
1. Answer the following with legal reasoning:
 i. Mr. Swarankumar was getting tired of his job in a bank and was thinking of resigning. In January 2010,
his employer bank announced a scheme of voluntary retirement. The following were some of the
conditions of the scheme:
a.) A mere submission of an application for voluntary retirement under the scheme will not take
effect unless it is accepted in writing by the chief H.R.Mnanger.
b.) It will not be open for an employee to withdraw the request made for voluntary retirement after
it was accepted formally.
Mr. Swarankumar submitted his application on 15/01/2010. However, no decision was communicated to
him. In March 2010, Swarankumar changed his mind and submitted another application for voluntary
retirement. This was received by the H.R.Manager on 31/03/2010. Still nothing was communicated to
him. In June 2010, Swarankumar received a letter from the H.R. department stating that he was relieved
from his job in response to his application for voluntary retirement. Swarankumar wishes to challenge
this letter. Will he be able to do so? (10)

ii. Venus Software Private Ltd was a company engaged in developing software for industrial purposes. In
February 2010, they received a proposal from a U.S. based company for developing a challenging
software. The proposal was discussed in the meeting of the Board of Directors on 15/02/2010.
However, it was unanimously decided that for the time being no decision should be taken whether to
accept the proposal or not and that the proposal should be kept pending. The wife of Ajit – one of the
directors was the director in another private limited company along with another person who was only a
nominal director. Ajit discussed this proposal at home and thought of a lucrative plan. Ajit had taken
down exhaustive notes regarding the proposal while it was discussed in the meeting of the Board of
directors. Ajit’s wife sent a communication to the U.S. company on 1/03/2010 offering to develop the
same software. The offer was accepted by the U.S. company. Ajit’s wife’s company earned a huge
profit in the deal. The other director’s of Venus Software Private Ltd came to know about this in April
2010 and were shocked. They claimed all the profit earned by the company of Ajit’s wife from Ajit.
Discuss the legal implications of this situation. (10)

2. Attempt any 2 questions:

i. Explain briefly the laws governing trade marks, patents and copyrights. (9)
ii. Discuss critically the “doctrine of indoor management”. (9)
iii. Enumerate and define the different negotiable instruments. Distinguish between a promissory note and
a bill of exchange. (9)

3. Write short notes. (Any 2)

1. Distinguish between a private company and a public company. (6)

2. What are “anti competitive agreements” as per the Competition Act? (6)
3. Explain the contract of guarantee. Discuss the rights of a surety. (6)

Set 4