Business Law MCQ on Rights of Buyer and Rights of Unpaid Seller: Check the below Business Law MCQ on Rights of Buyer and Rights of Unpaid Seller with Answers Pdf free download. Business Law MCQ on Rights of Buyer and Rights of Unpaid Seller Questions for Business Law with Answers were prepared based on the latest exam pattern. We have provided Business Law MCQ on Rights of Buyer and Rights of Unpaid Seller with Answers to help students understand the concept very well.

Business Law MCQ on Rights of Buyer and Rights of Unpaid Seller

1. The Unpaid Seller _________ to deliver a part of the Goods on payment of a proportionate part of the price by the Buyer.
(a) shall be bound
(b) may refuse
(c) must honour his commitment
(d) shall request the carrier

2. Right of Stoppage in transit can be exercised by the Unpaid Seller, where he _________.
(a) has lost his right of lien
(b) still enjoys his right of lien
(c) either (a) or (b)
(d) neither (a) nor (b)

3. Generally, where an Unpaid Seller has made part delivery of the Goods, he _________.
(a) may exercise his right of lien on the remainder
(b) has to honour the entire contract
(c) loses his lien on the remainder of the goods
(d) can supply defective goods in respect of the remainder

4. The term “Unpaid Seller” includes _________.
(a) Agent of the Buyer
(b) Agent of the Seller
(c) Agent of the Carrier/Transporter
(d) All of the above

5. Where the Unpaid Seller has parted with the goods by handing it over to a carrier for transmission, and the goods are in transit, he can reclaim possession thereof. This right is called _________.
(a) Right of Lien
(b) Right of Stoppage of goods in transit
(c) Right of withholding delivery of goods
(d) Right of Re-sale

6. The right of lien can be exercised by the Unpaid Seller in respect of _________.
(a) Price
(b) Any other expenses, e.g. Godown Charges, Interest, etc.
(c) Both (a) and (b)
(d) Either (a) or (b)

7. Right of Stoppage in transit can be exercised by the Unpaid Seller, where the Buyer _________.
(a) is solvent
(b) becomes insolvent
(c) acts fraudulently
(d) acts smartly

8. The Seller of Goods is deemed to be an Unpaid Seller _________.
(a) when the whole of the price has not been paid or tendered
(b) when a bill of exchange or other negotiable instrument has been received as conditional payment and the condition has not been fulfilled by reason of the dishonour of the instrument or otherwise
(c) both (a) and (b)
(d) either (a) or (b)

9. The right of stoppage in transit may be exercised by the Unpaid Seller till _________.
(a) payment or tender of the price
(b) Buyer becomes solvent
(c) such time as the Carrier may think fit
(d) such time as the Court may think fit

10. The right of lien is available to the Unpaid Seller, only when _________.
(a) he is not in possession of the goods
(b) he is in possession of the goods
(c) he has delivered the goods to the Carrier/ Transporter
(d) he has delivered the goods to the Buyer

11. When the goods have been sold on credit and the credit period ______ lien can he exercised.
(a) has not expired
(b) has expired
(c) has not been extended
(d) has been extended

12. The right of lien is available to the Unpaid Seller, u/s 47 of the Sale of Goods Act, when he is in possession of goods _________.
(a) as an agent of the Buyer
(b) as a Bailee for the buyer
(c) in his own right
(d) all of the above

13. Goods are deemed to be in transit from the time they are delivered to the Carrier or other bailee for transmission to the buyer, until _________.
(a) Buyer becomes solvent
(b) Buyer or his agent takes delivery of the goods
(c) Seller becomes solvent
(d) Seller or his agent takes delivery of the goods

14.  In which of the following situations, the right of lien available to the Unpaid Seller is lost?
(a) Where the Goods have been sold without any stipulation as to credit
(b) Where the Goods have been sold on credit, but the credit period has expired
(c) Where the Buyer becomes insolvent
(d) Where the Unpaid Seller has parted with the possession of the goods

15. If the Carrier/Bailee wrongfully refuses to deliver the goods to the buyer or his agent, the transit _________.
(a) is at an end
(b) is deemed to be at an end
(c) is not deemed to be at an end
(d) is dependent on the Court’s decision

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By Team Learning Mantras