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

• An indorsement is stated to be blank or general if the endorser signs his name only on the face or back of the instrument.
• An indorsement is restrictive which prohibits or restricts the further negotiation of the instrument.
• An indorsement is partial which purports to transfer to the endorsee only a part of the amount payable on the instrument.
• An indorsement is conditional or qualified which limits or negatives the liability of the endorser.
Hence, choice ‘C’ is accurate ans. < TOP >
41. E After the process of designing and manufacturing the product, the product will be put into market. If the product is put in the market, without improper warning tags or instructions, which may prevent the consumer or the plaintiff from recognizing the defects in the product, or to make them know the safety methods of use and application of the product, then the manufacturer may provide an opportunity to the consumer to claim for the injury, alleging marketing defects.
Therefore, in the provided case, Radhika can bring a product liability claim alleging marketing defect in the cleaning liquid due to which she could not take safety precautions and she was injured. Hence, choice ‘E’ is accurate ans. < TOP >
42. D Listed companies are obligated to furnish unaudited financial outcomes on a half-yearly basis within 2 months of the expiry of the period. The stated details enable the investing public to exercise their discretion on such matters. It may be noted that unaudited not audited financial outcomes are needed to be furnished.
Therefore, in the provided instance, listed companies are obligated to furnish audited financial outcomes on a half-yearly basis that enables investor to exercise their discretion in respect of the share is a false statement. Hence, choice ‘D’ is accurate ans. < TOP >
43. A The insurer undertakes to protect the insured from a specified loss. In general, the contract of insurance is the contract of indemnity in which the insurer promises to indemnify the insured from the loss or damage of asset due to risk attributed to it. It is the payment of money or the pecuniary interest that is compensated due to happening of a certain event to the insured subject.
Therefore, in the provided instance, the insurance company can refuse to pay the compensation as risk of loss by flood was not covered by it. Hence, choice ‘A’ is accurate ans. < TOP >
44. A A person who takes a cheque that bears the words “not negotiable” acquires no better title than that of his immediate transferor. The actual owner of the instrument can claim the instrument or the money from the stated person. However, under parts 128 and 131, the paying and collecting bank will be exonerated from any liability if it can be proved that the payment and collection were made in good faith and without negligence.

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