BBA IV Semester: Business Law and Ethics Exam

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Questions and Answers

Explain the essential elements of a valid contract, and how does the absence of one element affect the contract's enforceability?

The essential elements include offer, acceptance, consideration, capacity, intention to create legal relations, and legality of object. Absence of any element generally renders the contract void or voidable.

Differentiate between 'goods' and 'services' under the Sale of Goods Act, providing examples of each and explaining why this distinction matters in commercial transactions.

Goods are tangible, movable property; services are intangible activities. The Sale of Goods Act applies to goods, not services, thus governing different aspects of the transaction.

Explain the concept of 'separate legal entity' in the context of a joint stock company and discuss its implications for the company's liabilities and the personal liabilities of its shareholders.

A company is a separate legal entity from its shareholders, meaning it can own property, enter contracts, and be sued in its own name. Shareholders generally have limited liability, only risking their investment.

Describe the 'polluter pays' principle within the context of the Air Pollution Act and discuss how this principle is implemented and enforced to address environmental damage caused by industrial activities.

The 'polluter pays' principle means those who cause pollution should bear the costs of managing it to prevent damage to human health or the environment. This is implemented through fines, remediation orders, and other penalties. Signup and view all the answers

Explain how a company's value system impacts its organizational culture and management practices, providing examples of how ethical values can influence decision-making and stakeholder relationships.

A company's values shape its culture and how it interacts with employees, customers, and the community. Strong ethical values promote trust, integrity, and long-term sustainability. Signup and view all the answers

Explain the doctrine of quantum meruit and illustrate with an example how it applies when a contract is incomplete or has been terminated, but one party has already rendered services.

Quantum meruit means 'as much as he deserves'. It allows a party to recover reasonable compensation for services performed even without a complete contract. For example, if a contractor is stopped mid-project, they can claim payment for work already done. Signup and view all the answers

Summarize the key implications of the principle of caveat emptor for buyers and sellers in a transaction, and discuss how modern consumer protection laws have modified this principle.

Caveat emptor means 'let the buyer beware,' placing the onus on buyers to examine goods before purchase. Consumer protection laws have reduced this by imposing implied warranties and requiring sellers to disclose defects. Signup and view all the answers

Outline three key distinctions between a private limited company and a public limited company, focusing on their formation, fundraising capabilities, and regulatory compliance requirements.

Private companies have restrictions on share transfer, cannot invite public subscription, and have fewer regulatory requirements. Public companies can freely transfer shares, raise funds from the public, and are subject to stricter regulations. Signup and view all the answers

Explain the legal definition of 'bailment' and give an example of a common bailment scenario. What are the fundamental duties of a bailee in the context of bailment?

Bailment is the temporary transfer of possession of goods from one person (bailor) to another (bailee) for a specific purpose. An example is leaving a car with a mechanic for repair. The bailee must take reasonable care of the goods, not use them without permission and return them as directed. Signup and view all the answers

Describe the functions of consumer redressal machinery under the Consumer Protection Act? How does this machinery empower consumers to resolve disputes?

Consumer redressal machinery aims to provide speedy and inexpensive resolution of consumer disputes through district forums, state commissions, and the national commission. It empowers consumers by offering a platform to seek compensation and justice against unfair trade practices. Signup and view all the answers

Flashcards

Define Contract

A legally binding agreement between two or more parties.

Define 'goods' as per Sale of Goods Act

Every kind of movable property other than actionable claims and money; includes stock and shares, growing crops, grass, and things attached to or forming part of the land.

Define Partnership Firm

A business organization in which two or more individuals agree to share in the profits or losses of a business.

Joint Stock Company

A company or association consisting of individuals united for a common purpose, having a capital stock divided into transferable shares.