Paper 6: Laws and Ethics (True/False)
1.          An agreement which is impossible is void. True
2.          In case of expulsion of a partner, the provisions of retired partners will be applicable to such expelled partner. True
3.          Gratuitous bailment continues even after the death of either of the bailor or bailee. False
4.          A holder is not having right to duplicate of lost bill, before it is overdue. False
5.          Fine may be recovered from the employed person by installments. False
6.          Share certificate is a negotiable instrument. False
7.          Share warrant is a negotiable instrument.                  True

8.          The businessmen who do not follow business ethics will have short term success, but they will fail in the long run. True
9.          The liability of surety arises only when the principal debtor fails to pay the debt to the creditor.
10.      Goods to be manufactured or produced or acquired by the seller after making of the contract of sale is called Future good.
11.      If there is a dispute as to the amount of gratuity payable to the employee, the employer shall deposit the gratuity with the Controlling Authority.
12.      The time limit for registration of charge is 30 days from the date of creation of charge. (v) The ethical operation of a company is directly related to Profitability in both short and long term.
13.      Payment of Gratuity Act, 1972 applies to every shop and establishment employing seven or more persons. False
14.      In case of e-voting, notice shall be sent as attachment in word file. False
15.      Ethics is a requirement for human life. True
16.      The dishonor of the instrument may be due to Non-acceptance and non payment.
17.      The term of the office of the representative members of Medical Benefit Council shall be Four years from the date on which the appointment is notified.
18.      The company shall have the Freedom to specify the lock-in-period for the shares issued in pursuant to exercise such option.
19.      The e-voting shall remain open for not less than 3 days and shall close at 5.00 P.M. on the date preceding the date of general meeting. True
20.      The term 'ethics' derived from French word 'ethos' which means character. False
21.      Remission means Acceptance of a lesser performance that what is actually due under the contract.
22.      A promissory note or bill of exchange, in which no time for payment is specified, and a cheque, are payable on Demand.
23.      Where a person provides labour or service to another for remuneration which is less than the minimum wage, such labour is called Forced labour.
24.      The monies received on application shall be kept in a separate bank account in a Scheduled bank.
25.      The seven principles of Public life were set out by Lord Nolan in 1995.
26.      Misrepresentation must relate to some fact which is material to the Contract.
27.      The LLP shall inform the concerned Registrar within 15 days of the date of registration about the conversion and the particulars of LLP.
28.      The term of office of a member of the standing committee, constituted under ESI Act, shall be two years from the date on which his election is Notified .
29.      The registered office shall be opened within 15 days from the date of Incorporation of the company.
30.      A company shall send copy of each of the document such as memorandum etc., to a member within 7 days of the request made by him.
31.      A director may resign from his office by giving a notice in writing to the Company.
32.      The Seven Principles of Public Life were set out by Lord Nolan for the first time in the year 1995.
33.      The seller of the goods is not bound to deliver them until the buyer applies for the delivery. True
34.      The partners of a LLP may remove an auditor from office at any time by following the procedure as laid down in the LLP agreement. True
35.      The certificate of fitness granted by the certifying surgeon shall be valid for a period of 24 months from the date thereof. False
36.      Sickness benefit is paid up to a maximum day of 60 days in a year. False
37.      A director in the whole time employment of the Company is called Whole Time Director. True
38.      Contribution to pension scheme is recoverable when employee crosses 58 year of age. False
39.      When the consent is caused by under influence, the agreement is voidable at the option of the party whose consent was so caused.
40.      All payments of wages shall be made on a working day.
41.      Whenever a company makes any allotment of securities, it shall file a return of allotment with the Registrar within 30 days of allotment.
42.      The application for the purpose of Alteration of Articles is to be filed in Form No. INC-27.
43.      Business ethics must safeguard different rights of the consumers.
44.      Goods to be manufactured or produced or acquired by the seller after making of the contract of sale are called future goods. True
45.      The first endorsement of an instrument can be made by the Banker. False
46.      In an agreement to sale, the buyer is entitled to recover the same from the official liquidator in case of insolvency of the seller. False
47.      The term 'employed person' includes the legal representatives of a deceased employed person. True
48.      Payment of Gratuity Act, 1972 applies to every shop and establishment employing seven or more persons. False
49.      Any misstatement in the prospectus would attract the liability on the issuer. True
50.      Continuous improvement or kaizen is a popular theme. True

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