All India Management Association (AIMA) 2007 M.B.A Marketing Management Business Law - II - Question Paper

37. E The Redressal Agencies are now empowered under part 13(3B), 18 and 22 respectively to pass interim orders during the pendency of any proceedings, as it feels necessary in the circumstances of the case.
part 25(1) provides that where the interim orders of the Redressal Agencies are not complied with, the Forums may order attachment of property of the person who has not complied with the order, which shall be effective for a period of 3 months. If the non-compliance continues, the property attached shall be sold and damages will be awarded to the complainant from out of the sale proceeds. [Section 25(2)].
Therefore, in the provided instance, the District Forum is empowered to problem interim orders and attach property of the respondent upon his failure to comply with the interim orders. Hence, choice ‘E’ is accurate ans. < TOP >
38. E During an investigation or pending enquiry, in order to protect the interests of investors or the securities market, the Securities Exchange Board of India (SEBI) may:
• Suspend trading of a stock in a stock exchange.
• Restrain persons from accessing the securities market and prohibit any person associated with the securities market to buy, sell or deal in securities.
• Suspend any office bearer of any stock exchange or self regulatory authority.
• Impound and retain the proceeds or securities of any transaction under investigation.
• Attach after the specified process, for a period not exceeding 1 month, the bank account(s) of any intermediary or any person associated with the securities market in a matter involving violation of the provisions of the SEBI Act.
Therefore, in the provided instance, SEBI is empowered to suspend the trading of the stock of Mahesh Industries Ltd., to protect public interests pending enquiry. Hence, choice ‘E’ is accurate ans. < TOP >
39. B In case of life insurance policies, insurable interest is also recognized in the policies where the creditor has purchased the policy in the name of a debtor.
Therefore, in the provided instance, Vinod can claim Rs.50,000 from the insurance company as Vinod being the creditor has an insurable interest in the life of Anil, his debtor. Hence, choice ‘B’ is accurate ans. < TOP >
40. C An indorsement can be blank or general, special or full, restrictive, partial and conditional or qualified.
• If the endorser signs his name and adds a direction to pay the amount mentioned in the instrument to, or to the order of a specified person, the indorsement is stated to be special or in full.

Earning:   Approval pending.