CSS Past Paper 2024 Mercantile Law MCQs (Part 1)
CSS | Past Paper | Group 6 | 2024 | Part 1 | MCQs
Below are the solved multiple-choice questions (MCQs) from the CSS Past Paper 2024 Mercantile Law MCQs (Part 1). Each question includes all the options, the correct answer is bolded, and a short explanation is provided for clarity.
1. A kind of resolution that is required to alter the capital clause of the Memorandum of Association is known as:
(A) Equity Resolution
(B) Ordinary Resolution
(C) Special Resolution
(D) Shareholders’ Resolution with notice
💡 Alteration of Memorandum clauses requires a Special Resolution under Company Law.
2. A minor partner is liable to the third party:
(A) Personally
(B) Up to his share
(C) ¾ of the actual loss
(D) For nothing
💡 A minor is liable only to the extent of his share in the partnership.
3. Compensation granted for indirect and remote losses is known as:
(A) Compensatory Damages
(B) Punitive Damages
(C) Special Damages
(D) Vindictive Damages
💡 Special damages cover indirect or special losses.
4. In the light of the Contract Act, __________ is not a valid consideration:
(A) Illusory consideration
(B) Past consideration
(C) Present consideration
(D) All of these
💡 Illusory consideration has no real value and is invalid.
5. An agreement carrying inadequate consideration is:
(A) Valid
(B) Void
(C) Voidable
(D) None of these
💡 Inadequate consideration may make a contract voidable under certain conditions.
6. A certificate of commencement of business is required for:
(A) Unlisted public company
(B) Listed public company
(C) Registered public company
(D) All of these
💡 All public companies require a certificate before starting business.
7. In a limited company, ______ stands in a fiduciary relationship:
(A) Shareholders
(B) Promoters
(C) Directors
(D) None of these
💡 Directors act in trust for the company and its shareholders.
8. An equity capital might be:
(A) Nominal capital
(B) Unissued capital
(C) Paid up capital
(D) All of these
💡 Equity capital generally refers to paid-up share capital.
9. Members holding not less than ______ percent of the issued share capital of a company can make an application to the court against oppression:
(A) 10
(B) 20
(C) 33
(D) None of these
💡 10% shareholders can move the court against oppression.
10. A class action is an action by:
(A) A plaintiff against multiple defendants
(B) By multiple plaintiffs against a defendant
(C) By shareholders against company
(D) All of these
💡 A class action represents collective legal action by a group.
11. While conducting commercial legal research the initial step is to:
(A) Determine the relevant jurisdiction
(B) Find the relevant case law
(C) Identify the relevant legal issue
(D) All of these
💡 Jurisdiction must be determined before legal research starts.
12. _____ purchases shares of a public company and arranges for their sale to the general public:
(A) Contributory
(B) Underwriter
(C) Promoter
(D) None of these
💡 An underwriter guarantees the sale of shares to the public.
13. When the transfer of the property in the goods is to take place at a future time the contract is known as:
(A) Sale
(B) Provisional sale
(C) Conditional sale
(D) An agreement to sell
💡 Ownership transfer in future constitutes an agreement to sell.
14. A stipulation collateral to the main purpose of the contract of sale of goods is called:
(A) Guarantee
(B) Warranty
(C) A condition
(D) A stipulation
💡 A warranty is a collateral stipulation to the main purpose.
15. In case of dishonor of a negotiable instrument notice is required to be given to:
(A) Drawer
(B) All endorsers
(C) Both (A) & (B)
(D) None of these
💡 Notice must be given to both the drawer and endorsers.
16. Questions arising at the meeting of the competition commission shall be determined by the _____ of the members present:
(A) Vote of majority
(B) Vote of special majority
(C) Consensus
(D) None of these
💡 Decisions are taken by majority vote.
17. In Payment System and Electronic Fund Transfers Act, 2007 electronic funds transfer means any transfer of funds which is initiated through:
(A) Electronic terminal
(B) Telephonic instrument
(C) Both (A) & (B)
(D) None of these
💡 Electronic transfers include terminal and telephonic instruments.
18. A negotiable instrument is freely transferable by endorsement if it is a _____ instrument:
(A) Order
(B) Bearer
(C) Both (A) & (B)
(D) None of these
💡 Both order and bearer instruments are transferable.
19. Doctrine that every person dealing with the company is presumed to have read and understood the Memorandum and Articles of Association is known as:
(A) Caveat emptor
(B) Indoor management
(C) Constructive notice
(D) None of these
💡 Constructive notice presumes public knowledge of company documents.
20. In a contract of guarantee the person for whom the guarantee is given is called:
(A) Creditor
(B) Principal debtor
(C) Surety
(D) None of these
💡 The principal debtor is the person whose default is guaranteed.
📘 Benefits of Practicing These MCQs
- ✅ These CSS Past Paper 2024 Mercantile Law MCQs are compiled from authentic FPSC CSS past papers to match the real exam format.
- 💬 Practicing this CSS Past Paper 2024 Mercantile Law MCQs set builds strong conceptual clarity for upcoming CSS exams.
- 🧾 Every question in this CSS Past Paper 2024 Mercantile Law MCQs collection follows the official CSS exam syllabus approved by FPSC.
- 📊 Students appearing in CSS 2024 can rely on these Mercantile Law MCQs for focused and authentic revision.
- 🔍 The solved CSS Past Paper 2024 Mercantile Law MCQs section includes clear, one-line explanations for quick understanding.
- 🎯 Revise these CSS Past Paper 2024 Mercantile Law MCQs regularly to master key topics from the CSS exam syllabus and boost your score.
- 🏆 These CSS Past Paper 2024 Mercantile Law MCQs are essential for mastering the FPSC exam pattern and achieving success in CSS.
🏁 Final Note
Keep revising these CSS Past Paper 2024 Mercantile Law MCQs to strengthen your grip on important concepts and improve accuracy in upcoming CSS exams. Regular practice with these CSS Past Paper 2024 Mercantile Law MCQs will help you score higher and build full command over the CSS exam syllabus.
👉 Also read CSS Past Paper 2024 Mercantile Law (Part-II Descriptive)
📰 Check out other years’ past papers of Mercantile Law.
🔗 Check FPSC past papers directly from the official FPSC website.
