Indian Education Society’s

Management College and Research Centre, Mumbai

(FINAL EXAMINATION)

Date : 28/04/2017 Day: Friday Time: 10.30 am To 01.30 pm Duration: 3 Hrs.

Course : PGDM-1st Year Term: III Sub: Legal Aspects of Business Max. Marks: 60
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Instructions: 1) Q.No.1 is Compulsory
2) Attempt any FOUR from Question No.2 to 8
3) Marks are indicated against the questions
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Q.1. Case Study: India’s No.1

Rohit purchased a bottle of Perfume Fog – Marco from the departmental store, the spray was used by
him, his wife and daughter 6 years old. After some days, Rohit’s wife complained about red rashes on
her hand, she went to the doctor for treating, doctor explained it is an allergic will go away in 3 weeks’
time, gave her tablets and lotion; few days after the daughter used the spray, and her eyes started
burning, but after cleaning with water, the eyes were O.K. Rohit picked the bottle of fragrance body
spray and started reading the instruction.
Direction: Hold the Can 10-15 cm. away from skin, spray all over body / clothes after bath, avoiding
eye contact.
Caution: Keeping in a cool place away from heat and sunlight, do not expose to temperature exceeding
50oC. Do not puncture or burn the can; do not spray near naked flame. Avoid contact with eyes. If
contact occurs wash with plenty of water and consult doctor.
Extremely Flammable, For External Use Only
Ingredients: Propylene Glycol, Ethyl Alcohol, Perfume, DEP etc.
Manufactured by: Perfunova International Ltd. Nani Daman 396210
Marketed by: Vini Cosmetics (P) Ltd., Ahmedabad
Net Contents: 100g / 120 ml.
Price: `192/-
Manufacturing Date: 10/2016
After reading the above Rohit decides to file a complaint.
Answer the following Questions: (6x2=12)
a) What is the consumer dispute?
b) Who are the consumers in this case?
c) Against whom the complaint can be filed?
d) Complaint can be filed in which forum / court?
e) What remedies are available to the consumer?
f) What justice is expected from the court?

Q.2. a) “A wagering agreement is void and unenforceable, but it is not forbidden by law”. Critically examine
the statement with suitable examples and exceptions.
b) Mr. Roy is an Account holder approaches HDFC Bank Ltd. for different loans:
(i) Loan for car
(ii) Loan for House
(iii) Loan against gold ornaments
While signing the 3 loan agreements, Roy has noticed that for Housing it was Mortgage deed, for gold
loan it was pledge-agreement and for car loan it was Hypothecation deed. Please explain why three
different deeds - Mortgage, Pledge and Hypothecation. (8+4=12)

Q.3. a) What remedies are available to an aggrieved party for the breach of contract?
b) What do you understand by the doctrine of quantum meruit? (8+4=12)

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Q.4. a) Define Mercantile Law, and state the main sources of mercantile law.
b) “Law is a Command of Sovereign” – said Austin. Please discuss.
c) A person cannot escape liability on the ground of ignorance of law because ignorance of law is no
excuse.
(i) True
(ii) False
d) The term ‘Common Law’ as used in English Law refers to (mark the correct answer).
(i) Unwritten Law
(ii) Codified Law
(iii) Constitutional Law
(5+5+1+1=12)

Q.5. (a) Do the following persons fall within the category of the term ‘Consumer’. Write Yes or No as your
answer. (4 x ½ = 2 marks)
i. A persons using LPG gas
ii. Passengers travelling by train
iii. A winner of a lottery
iv. Insurance Company
(b) Are the subscribers to a Provident Fund Consumers? Give reasons for your answer.
(c) Can the shares, before they are allotted, be termed as goods? Give reasons for your answer.
(d) Can the services rendered by Government Hospitals, being rendered free of charge, be treated as
service under the Consumer Act? Give reasons for your answer.
(e) A dealer was found to have sold spurious / sub-standard products, like shoes, under the brand
names like Bata, Liberty Red Tape, in the name of bargain sale. Do you think that the trader had
indulged in an unfair trade practice? Give reasons for your answer.
(f) Hindustan Bank, Lucknow, had converted a joint fixed deposit account into an individual account of
only one of the joint a/c holders, without such request being made from both the joint account
holders. Does the act, on the part of the bank, tantamount to deficiency of service? Give reasons
for your answers. (6x2=12)

Q.6. (a) What are the main characteristic features of a Public Limited Company?
(b) Write a short note on ‘One-Man Company’. (8+4=12)

Q.7. (a) Why is it necessary for the Company to hold Annual General Meeting?
(b) Discuss the Agenda of Annual General Meeting.
(c) What is Quorum required for Annual General Meeting? (3x4=12)

Q.8. a) Minor’s agreements are absolutely void. Is there any agreement with a minor which can be enforced
in a court of law? If so, discuss with examples?
b) The rationale behind the quasi-contract is that “no one will be allowed to enrich himself in an unjust
manner at the cost of the other” – discuss. (8+4=12)

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