Legal Aspects of Business Generix Content - Legal Aspects of Business
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WAEC questions for "Commerce :: Legal Aspects of Business"
Q1
Life insurance premium is determined by the assured's
A
educational level.
B
age.
C
reputation.
D
number of children.
E
Q2
Which of the following is not a contract of indemnity?
A
Marine insurance
B
Fire insurance
C
Life insurance
D
Burglary insurance
E
Q3
A type of life policy where the assured or his dependants will not get anything if he did not die within the period of the policy is known as
A
group policy
B
whole life policy
C
endowment policy
D
term policy
E
Q4
A transaction where the buyer of a commodity becomes its legal owner after the payment of the last instalment is
A
a credit sale.
B
factoring.
C
hire purchase.
D
leasing.
E
Q5
The document which gives legal authority to a company to operate as a legal entity is
A
Memorandum of Association.
B
Article of Association.
C
Share Certificate.
D
certificate of Incorporation.
E
Q6
Which of the following insurance principles was breached by Madam Tope?
A
Insurable interest.
B
Contribution.
C
Utmost good faith
D
Subrogation.
E
Q7
Which of the following insurance principles will prevent her fro claiming compensation?
A
Indemnity.
B
Insurable interest.
C
Proximity cause.
D
Utmost good faith.
E
Q8
A document showing that a person has shipped certain goods through a named ship is
A
bill of lading.
B
bill of exchange.
C
dock warrant.
D
bill of entry.
E
Q9
The above document is
A
Foreign bill of exchange.
B
Promissory note.
C
Money order.
D
Cheque.
E
Q10
The amount the assured receives if he decides to discontinue the life policy is known as
A
refund value
B
net value
C
surrender value
D
sum assured.
E
Q11
The monopoly right granted to an inventoe is a
A
trademark.
B
brand name.
C
patent.
D
copyright.
E
Q12
Which of the following is the correct sequence in which the following documents are used?
A
order, delivery note, debit note, invoice, statement.
B
order, advice note, debit note, invoice, statement.
C
order, statement, delivery note, invoice, debit note
D
order, advice note, invoice, debit note, statement
E
Q13
When a quotation is marked 'CWO', it means
A
no credit facility is allowed.
B
no discount is allowed.
C
the buyer should beware.
D
the seller should beware.
E
Q14
Which of the following is a means by which a contract of agency could be terminated?
A
mutual agreement.
B
lack of consideration.
C
failure to insure the contract.
D
payment of commission.
E
Q15
Legal tender consists of
A
cheques and coins.
B
bank drafts and cheques.
C
currency notes and coins.
D
money order and currency notes.
E
Q16
A business becomes a separate legal entity after it has
A
started operations.
B
been incorporated.
C
been insured.
D
been accepted by the public.
E
Q17
Which of the following is regarded as a document of title in foreign trade?
A
Consular invoice
B
Bill of lading
C
Bill of sight
D
Certificate of origin
E
Q18
The most acceptable means of payment in foreign transaction is
A
personal cheques.
B
central bank cheques.
C
irrevocable leters of credit.
D
bank drafts.
E
Q19
A bill of exchange is made negotiable if it has been
A
endorsed.
B
accepted.
C
honoured instantly.
D
given special crossing.
E
Q20
Musa entered into a contract to supply two cows to Aro. Before the agreed date of supply and without the knowledge of the two parties, thieves stole the cows. This is an example of termination of contract by
A
default.
B
breach.
C
frustration.
D
performance.
E
Q21
When a public company receives the certificate of incorporation, this implies that
A
it can go ahead and start business.
B
it can no longer sue or be sued.
C
the company finds it difficult to raise capital.
D
the company's assets exist separately from those of its members
E
Q22
Which of the following would not be stated in a memorandum of Association?
A
Name clause
B
Registered office
C
Object clause
D
Rights of shareholders.
E
Q23
A public limited liability company can enter into contracts because it
A
has many employees
B
has shareholders
C
is a legal entity
D
is allowed to take out debentures
E
Q24
A void contract is one that
A
is enforceable.
B
has no maturity.
C
has no legal effect.
D
is discharged.
E
Q25
Which of the following is not concerned about consumer protection?
A
Food and Drug Act
B
Trade Descriptions Act
C
Price Control Act
D
General Agreement on Tariff and Trade
E
Q26
In a Law of contract, what is given in exchange for a promise to confirm is
A
offer
B
acceptance
C
consideration
D
warranty.
E
Q27
Which of the following requires acceptance before it can be valid?
A
Promissory note
B
Bill of exchange.
C
Letter of credit.
D
Cheque.
E
Q28
The drawer of a bill of exchange which is not discounted is also the
A
drawee.
B
acceptor.
C
endorser.
D
payee.
E
Q29
The principle of subrogation imposes an obligation on the insured to
A
disclose all material information.
B
have financial risk in the object insured.
C
collect compensation from only one insurer.
D
surrender legal rights after compensation.
E
Q30
Which of the following type of cheque protects the holder against the risk of loss?
A
Open cheque.
B
Bearer cheque
C
Post dated cheque
D
Crossed cheque.
E
Q31
If Baba is forced to agree to the terms of a contract at gun point, the contract is entered into
A
under duress.
B
through frustration.
C
through misrepresentation.
D
by mistake.
E
Q32
Which of the following is not a method of discharging a contract?
A
Performance
B
Breach
C
Consideration
D
Frustration
E
Q33
In a contract, offer is described as a counter offer if
A
a new clause is introduced.
B
it is not understood.
C
it is not addressed to a particular person.
D
it leaves no room for renegotiation.
E
Q34
The duty of an agent of necessity to a principal is based on
A
trust.
B
ability.
C
negotiation.
D
mutual agreement.
E
Q35

Which of the following is most appropriate for a "Cash with Order'' terms of sales?

A

Proforma invoice

B

Credit note

C

Debit note

D

Consignment note

E
Q36

Which of the following is used to advertise the activities of a company?

A

Memorandum of association

B

Articles of association

C

Certificate of incorporation

D

Prospectus

E
Q37

Which of the following is a creditor legally bound to accept for settlement of a debt?

A

Bank draft

B

Bank note

C

Money order

D

Cheque

E
Q38

Which of the following abbreviations indicates that the seller reserves the right to correct errors on the invoice?

A

E. & O.E.

B

C.I.F.

C

C.O.D.

D

C.W.O.

E
Q39
A house worth N50,000 was insured against fire for N30,000. Fire destroyed and caused damages worth N20,000 on the house. Under which insurance principle will the owner be entitled to a compensation of N20,000?
A
Contribution
B
Subrogation
C
Indemnity
D
Ubrerrimae fidei
E
Q40
When an insurance company indemnifies the insured and takes over his rights, this is known as
A
abandonment.
B
subrogation.
C
proximity cause.
D
contribution.
E
Q41
A contract of sale where ownership passes to the buyer on the payment of the first instalment is known as
A
hire purchase
B
lease
C
cash on delivery
D
credit sale.
E
Q42
Which of the following is a basic requirement for a valid contract?
A
Representation
B
Consideration
C
Interest
D
Performance
E
Q43
A counter-offer in a contract is regarded as
A
an acceptance.
B
an invitation to treat.
C
a rejection.
D
a consideration.
E
Q44
Which of the following is an agreement to transport goods but not a document of title?
A
Air-way bill
B
Bill of lading
C
Charter party
D
Freight note
E
Q45
The document which regulates the operations of a partnership is known as
A
Deed
B
Articles of Association
C
Prospectus
D
Certificate of trading
E
Q46
Which of the following is a contract of carriage and a document of title?
A
Indent
B
Bill of lading
C
Proforma invoice
D
Bill of exchange
E
Q47
Notes and coins are legal tender because they are
A
printed by the Central Bank.
B
backed by law.
C
backed by gold.
D
issued by all banks.
E
Q48
If a company is described as ''listed'' it means
A
Its shares can be traded on the stock exchange.
B
It is about to be voluntarily liquidated.
C
It is duly registered by the registrar of companies.
D
It has been blacklisted.
E
Q49
A contract of sale of goods where ownership passes to the buyer on the payment of first instalment is
A
hire purchase
B
cash with order
C
deferred payment
D
cash on delivery
E
Q50
Mr. Ajai did not disclose that he stores drums of petrol when he took a fire insurance policy. Under which of the following will the insurance company reject his claims?
A
Subrogation
B
Utmost good faith
C
Insurable interest
D
proximity cause
E
Q51
A bill of exchange is retired when it is
A
paid before maturity.
B
marked ''accepted''
C
discounted
D
dishonoured
E
Q52

A document issued to a buyer showing the quality, description and prices of goods bought is called

A

a catalogue

B

an invoice

C

a price list

D

an order

E

an advice note

Q53
Which of the following is an example of insurable risk?
A
Change in consumer's taste
B
The priority of a third world war
C
Flood resulting from excessive rain in a year
D
The death of a business partner
E
Loss due to change in fashion
Q54

The insurance policy against claims from customers who might be injured within the business premises is called

A

life assurance policy

B

endowment policy

C

fidelity guarantee insurance

D

employer's liability insurance

E

engineering insurance

Q55
When an acceptance to an offer is conditional, the offer becomes
A
accepted
B
a counter offer
C
valid
D
void
E
frustrated
Q56
Any action taken by a companyy outside its stated objectives is regarded as
A
caveat emptor
B
ultral vires
C
uberrimae fidei
D
exemption
E
formality
Q57
measuring performance against the set objectives is a management function that relates to
A
staffing
B
planning
C
organiziing
D
motivating
E
controlling
Q58

Which of the following has no legal capacity to a contract?

A

public Limited Company

B

Public Corporation 

C

Coperative Society

D

A Minor

E

A Limited Partnership

Q59
The third part Motor Vehicle insurance Policy cover damages
A
to both passengers and vehicle.
B
caused by the vehicle insured
C
to all parties concerned
D
to all vehicles involved
E
to the insured vehicle only
Q60
Which of the following is legally used by the insured while the policy is being processed?
A
Cover note
B
Proposal form
C
Indemnity form
D
Premium
E
Claim form