CSS Past Paper 2025 Mercantile Law MCQs (Part 1)

CSS | Past Paper | Group 6 | 2025 | Part 1 | MCQs

Below are the solved multiple-choice questions (MCQs) from the CSS Past Paper 2025 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. According to the Consumer Protection Act, 2006, a consumer court has the authority to:

(A) Award monetary compensation to the complainant
(B) Order imprisonment of business owners found guilty
(C) Direct the government to regulate product prices
(D) Provide tax exemptions to businesses that comply with the law
💡 Consumer courts mainly grant compensation for consumer losses.

2. Under the Contract Act, 1872, a contract entered into by a minor is:

(A) Voidable
(B) Valid
(C) Void
(D) Enforceable at the discretion of the minor
💡 A minor’s contract is void ab initio under Pakistani law.

3. Which of the following is a primary function of the Provincial Consumer Protection Councils under the Consumer Protection Act, 2006?

(A) To regulate market prices across provinces
(B) To promote consumer rights and welfare at the provincial level
(C) To punish business entities involved in unfair trade practices
(D) To ensure that all businesses in the province are registered
💡 Councils mainly promote and safeguard consumer interests.

4. Under the Arbitration Act, 1940, an arbitral award can be set aside by the court only if:

(A) It is found to be unfair
(B) The arbitrator has acted outside the scope of his authority
(C) The parties request it
(D) It is not in writing
💡 An award can be set aside only on legal misconduct or excess of authority.

5. Under the Competition Act, 2010, what is the maximum fine that the Competition Commission can impose on a company for a violation of the Act?

(A) Rs. 50,000
(B) Rs. 1,000,000
(C) 10% of the annual turnover
(D) 5% of the annual turnover
💡 The maximum penalty may extend up to 10% of annual turnover.

6. In the case of Coggs v. Bernard (1703), the main legal principle established was:

(A) The enforceability of verbal agreements
(B) The concept of gratuitous bailment and liability for negligence
(C) The validity of contracts made under duress
(D) The rules for property transfer without consideration
💡 The case laid down the law of gratuitous bailment and duty of care.

7. In the case of Curie v. Misa (1875), the Court primarily dealt with the concept of:

(A) Enforceability of real property contracts
(B) Definition of consideration in contract law
(C) Legality of coercion
(D) Validity of oral agreements
💡 The case defined “valuable consideration”.

8. Under the Negotiable Instruments Act, 1881, which statement about a holder in due course is true?

(A) A holder in due course can acquire the instrument free from all defects of title
(B) Must always know the previous holder
(C) Is not entitled to receive payment
(D) Cannot negotiate the instrument further
💡 A holder in due course gets a clean and defect-free title.

9. Under the Negotiable Instruments Act, 1881, if a cheque is dishonored due to insufficient funds, the drawer can be liable for:

(A) Only the face value
(B) Face value plus bank charges
(C) Entire loan amount
(D) Criminal liability under the Act, depending on intent
💡 Dishonour may result in criminal prosecution under Section 138.

10. Under the Electronic Transactions Ordinance, 2002, a digital signature is required to be:

(A) Created using a government-approved certificate authority
(B) Typed by the person
(C) Verified by a notary
(D) Printed and signed in ink
💡 Digital signatures must be authenticated through certified authorities.

11. Which of the following is NOT covered under the Electronic Transactions Ordinance, 2002?

(A) E-commerce contracts
(B) Digital signatures and authentication
(C) Intellectual property rights in digital formats
(D) Privacy of communication in electronic records
💡 Intellectual property is governed by separate IP laws.

12. Under the Arbitration Act, 1940, if a party fails to comply with an arbitral award, the other party can apply to the court for:

(A) Imprisonment
(B) Enforcement of the award as a decree of the court
(C) Modification of the award
(D) Suspension of arbitration
💡 An arbitral award is enforced like a civil court decree.

13. Which section of the Arbitration Act, 1940 deals with the refusal of the court to set aside an arbitral award?

(A) 16
(B) 30
(C) 34
(D) 35
💡 Section 30 deals with applications for setting aside an award.

14. Under the Electronic Fund Transfer Act, 2007, if a consumer disputes an electronic transaction, the bank is required to:

(A) Immediately refund the amount
(B) Investigate the matter within a specified time frame
(C) Transfer to police
(D) Only notify the customer
💡 Banks are legally bound to investigate disputed transactions.

15. Under the Sale of Goods Act, 1930, which is NOT a requirement for a valid contract of sale?

(A) Ownership transfer
(B) Sale of tangible goods
(C) Seller must guarantee a specific quality
(D) Determinable price
💡 Quality guarantee is not compulsory for validity.

16. According to the Sale of Goods Act, 1930, if goods are sold by description, the goods must:

(A) Conform to the description provided
(B) Be inspected physically
(C) Be delivered in 30 days
(D) Match the price stated
💡 Goods must strictly match their description.

17. Under the Sale of Goods Act, 1930, the implied condition of title means that:

(A) Buyer must pay on delivery
(B) Seller has the right to sell the goods
(C) Buyer must inspect first
(D) Seller must give warranty
💡 Seller must have lawful ownership to sell.

18. Which of the following is NOT an essential requirement of a promissory note?

(A) It must be in writing
(B) It must contain an unconditional promise
(C) It must be signed by the payee
(D) It must specify a definite sum
💡 A promissory note is signed by the maker, not the payee.

19. Under the Negotiable Instruments Act, 1881, a bill of exchange can be accepted by:

(A) The drawee
(B) The holder
(C) The payee
(D) Any third party
💡 Only the drawee is competent to accept a bill.

20. Which section of the Contract Act, 1872 deals with the performance of “conditions precedent”?

(A) 4
(B) 10
(C) 55
(D) 12
💡 Section 55 governs performance linked with conditions and time.

---

📘 Benefits of Practicing These MCQs

• ✅ These CSS Past Paper 2025 Mercantile Law MCQs are compiled from authentic FPSC CSS past papers to match the real exam format.
• 💬 Practicing this CSS Past Paper 2025 Mercantile Law MCQs set builds strong conceptual clarity for upcoming CSS exams.
• 🧾 Every question in this CSS Past Paper 2025 Mercantile Law MCQs collection follows the official CSS exam syllabus approved by FPSC.
• 📊 Students appearing in CSS 2025 can rely on these Mercantile Law MCQs for focused and authentic revision.
• 🔍 The solved CSS Past Paper 2025 Mercantile Law MCQs section includes clear, one-line explanations for quick understanding.
• 🎯 Revise these CSS Past Paper 2025 Mercantile Law MCQs regularly to master key topics from the CSS exam syllabus and boost your score.
• 🏆 These CSS Past Paper 2025 Mercantile Law MCQs are essential for mastering the FPSC exam pattern and achieving success in CSS.

🏁 Final Note

Keep revising these CSS Past Paper 2025 Mercantile Law MCQs to strengthen your grip on important concepts and improve accuracy in upcoming CSS exams. Regular practice with these CSS Past Paper 2025 Mercantile Law MCQs will help you score higher and build full command over the CSS exam syllabus.

👉 Also read CSS Past Paper 2025 Mercantile Law (Part-II Descriptive)

📰 Check out other years’ past papers of Mercantile Law.

🔗 Check FPSC past papers directly from the official FPSC website.