Negotiable Instruments Act MCQ question and answer

31

The liability under section 138 of the Negotiable Instruments Act, 1881 is

A) Strict liability B) Vicarious liability C) Both (A) and (B) D) None of the above

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Answer & Solution

Answer: Option A

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32

A person who receives a negotiable instrument in good faith for valuable consideration is known as

A) Holder of value B) Holder C) Holder in rights D) Holder in due course

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Answer & Solution

Answer: Option D

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33

How much punishment is provided under Section 138 of Negotiable Instruments Act, 1881?

A) Imprisonment for term which may extend to two years or with fine which may extend to twice the amount of the cheque or with both B) Imprisonment for term which may extend to one year or with fine which may extend to twice the amount of the cheque or with both C) Imprisonment for term which may extend to two years or with fine which may extend to twice the amount of the cheque D) Only imprisonment for term which may extended to two years

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Answer & Solution

Answer: Option A

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34

In which of the following case the Supreme Court held that the persons who are sought to be made vicariously liable for a criminal offence under section 141 should be at the time the offfence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company. Every person connected w ith the company shall not fall within the ambit of the provision?

A) National Small Industries Corporation Ltd. v. Harmeet Singh Paintal, (2010) 3 SCC 330 B) State of Bihar v. Kalyanpur Cement Ltd. (2010) 3 SCC 274 C) Rakesh Kumar v. U.P.I.D.C. Ltd., AIR 2010 SC 2451 D) None of the above

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Answer & Solution

Answer: Option A

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35

Crossing of cheque affects the

A) Negotiability of the cheque B) Mode of payment on the cheque C) Both (A) and (B) D) None of the above

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Answer & Solution

Answer: Option B

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36

Under Section 118 of Negotiable Instruments Act, 1881, what presumption shall not be made?

A) The holder of a cheque received the cheque for the discharge of any debt or other liability B) Consideration C) Time of acceptance D) Order of indorsements

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Answer & Solution

Answer: Option A

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37

In a promissory note, the amount of money payable

A) Must be certain B) May be certain or uncertain C) Is usually uncertain D) None of the above

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Answer & Solution

Answer: Option A

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38

The date of maturity of a bill payable hundred days after sight and which is presented for sight on 4^th May, 2017, is (as per the provisions of the Negotiable Instruments Act, 1881):

A) 13^th August, 2017 B) 14^th August, 2017 C) 15^th August, 2017 D) 16^th August, 2017

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Answer & Solution

Answer: Option B

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39

Which of the following is not a Bill of Exchange?

A) Share B) Demand Draft C) Post-dated Cheque D) None of these

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Answer & Solution

Answer: Option A

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40

Which of the following presumption is prescribed under section 118 Negotiable Instruments Act?

A) Of consideration B) As to date C) As to time of acceptance D) All of these

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Answer & Solution

Answer: Option D

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Negotiable Instruments Act MCQ question and answer | Law MCQ question