INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
Paper No. 6
BUSINESS LAWS
Date 10.06.2018 Max Marks: 100
Time 10.00 a.m. to 1.00 p.m. Duration: 3 hours
Instructions:
1. From Part answer all questions (compulsory) Each sub-question carries 1 marks Total marks 32
2. From Part answer any 3 out of 5 questions Each question carries 16 marks. Total marks 48
3. Part C is a case study with sub-questions (compulsory). Read the passage and answer all the questions.
Total marks 20
4. Please read and follow the instructions given in the answer sheet carefully.

PART A (compulsory) 32 x1 32 marks)
Q.1 State whether the following are True or False-
Ignorance of is no excuse.
Law is not a body of Rules.
Law is made to serve some purpose which may be social, economic or political.
Law is for the guidance or conduct of persons-both human and artificial.
Law is not made obligatory on the members of the society.
Law responds to public opinion and changes accordingly.
Fears of consequences such as punishment, ensures observance of law.
Law is not enforced by the Executive.
Q.2 Fill in the blanks-
Without the ...... neither property nor ownership, strictly speaking exists.
Law does not ........ any vacuum in ownership.
The ..............of property is exclusive.
The contract must be supported by ................... on both sides.
Ownership is an intimate relationship ................. a person and object.
Law must be ................... both in its application and coverage.
The agreement must be such which is enforceable by ........so as to become a contract.
The parties to the contract must be ............. to contract.
Q.3 Expand the abbreviations:
PAN
iii) ED
HSN
vii) FERA
ii) IGST
iv) TIN
vi) WCO
Viii) CIF
June 2018
Q.4 Match the following- Column A and B
Column A Column B
Ethical or Moral Rules
an agreement enforceable by law
Procedural law
ii) to the agreement must be free and genuine.
The consent of parties
iii) the non observance of which may lead to social boycott, trade
sanctions etc.
The Contract Act 1872
iv) of a purely social or domestic nature is not a contract.
An Agreement
one of the essentials of a valid contract.
Consideration
vi) deals with the methods and means by which substantive law is
made and administered.
Rules of
International Law
vii) lays down the general principles subject to which the contracting parties may create the rights and duties for themselves.
A Contract is
viii) do not be arrogant or do not be disrespectful to elders or
women.
Part-B 48 Marks
(Answer any three questions. Each question carry 16 marks)
Q.5 What are the essentials of a valid contract. Briefly explain the difference between offer and invitation
to offer.
Q.6 Discuss the kinds of guarantee. Distinguish between criminal law and civil law.
Q.7 Explain the performance of a contract of sale of goods. Also explain the rights of the unpaid seller.
Q.8 Distinguish between any Two. 2 X 16 marks)
Sale and Hire Purchase.
ii) Public law and Private law.
iii) Offer and Acceptance.
iv) Formal and Informal Contracts.
Conditions and Warranties.
Q.9 Write short notes on any Four 4 x 4 16 marks)-
Personal Law.
ii) GST.
iii) FEMA
iv) Passing of property in goods.
Right to Information Act 2005
vi) Capacity to Contract.
PART 20 marks
(compulsory)
Q.10 Read the following case study relating to the famous case of KANTA Vs JATIN and give minimum five
reasons why JATIN won the case:
The brief of the case is: Jatin was under the care of his mother. He was a wayward boy. He owned two houses in Calcutta. He wanted to borrow certain sum of money from a money lender. The money lender hurriedly agreed to lend the money without going much in detail and without verifying the legal aspects.
Jatin's mother on coming to know of this served a notice on the money lender intimating that her son Jatin was a minor, that he was a wayward boy and that no money should be lent to him. But the money lender ignored her plea and went ahead and lent the amount on the basis of two documents viz. 1. Jatin declared in writing that he was a major and 2. Jatin executed a mortgage deed mortgaging both the houses to the money lender. On the death of money lender, his wife Kanta filed a suit against Jatin for the recovery of the loan.
Jatin argued that he was a minor at the time of borrowing money and the mortgage deed executed by him should be declared as null and void.
JATIN won the case.
Please give the reasons (at least five) that the Honourable Judges would have advanced (under the Indian Contract Act) that led to Jatin winning the case.
Each valid reason will get 4 marks, with a total of 20 marks)