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E EMPTION

CMA Inter - Law - Strategy

5-6 MCDs

Paper Pattern other Laws

SECTION-A -
> 15 MCOs >
-

15x2 = 30 marks

D A

SECTION B -
5 Questions

a) *
CONTRACT - 7

b) CONTRACT - Agency / Ind .

2 G/BIP 7

3
. a) PARTNERSHIP /LLP 7

6) SOGA/N I . 7

an
9) WAGES 7

6) GRATUITY/ESI SNF 7
 -
5 a) COMPANY 7
v =

-
6) COMPANY -
DIRECTORS 7

.
6 a) COMPANY ETHICS 7
V =
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6) COMPANY EMTICS 7

7 .
al ETHICS COMPANY 7
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v =

6) ETHICS COMPANY 7

8 . a) CONTRACT Case studies 7

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6) COMPANY case study 7

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CONTRACT comment
COMPANY

Ethics

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& COMPANY -
IMP TOPICS
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1. MOAGAOA-contents/Clauses
= -
Actuation

Sec S
2
. .

Company + OPC

.
2
Doctrines-Ultra-vires - CASE Study

Indoor
met .
-
Theory

I TYPES OF COMPANIES Put Co

. .
/ subsidiary/H

5 SEPSRATE LEGAL ENTITY "

Corporate veil
I

*
.
6 MEETING - CASE STUDY
-

IN CORPORATION
E

.
8
=
DIRECTORS --

Qualifications / Disqualification
-

POWSRS/DUTIES
-
REMUNSRATION
⑤ CONTRACT -
ACT

Essential Elements OF CONSIDERATION

↓ OFFER
ACCEPTANCE CONTRACT

FREE CONSENT ELEMENTS

2
-

E 3 Difference
COERCION UNDUE INFLUENCE
-
-

FRAUD MISREPRESENTATION

. Communication of
3
OFFER & ACCEPTANCE

2 LAPSE OFFER
. Of an

# *
5 . DISCHARGE OF CONTRACT
=

6 MINOR'S Position in CONTRACT

. a

TYPE) OF CONTRACT 3 OFFER

=

*S CONTINGENT Contract & Rules Regarding

Enforceability
**
void
& Agreements ExpresslyDeclared
 PARTNERSHIP ACT

! Types of Partners

2 Types of Partnership

3 Registration of Partnership

I consequency of Non-Registration

E Dissolution

Liabilities
& Minoris -
Admission Rights

= Expulsion of a partner

8 Rights of aTransferee

& Expulsion of a partner

1. Implied Authorities of a partner

 ETHICS

standards Accountant
↓ ICMAI for cost

2
. 7 Principles By MANATMA GANDUI

= ETHICS VIS MORALE

SOGA
sale a see
! Difference slw Agreement to

2 Rights of unpaid seller

3 Auction Sale

CONDITION VIS WARRANTY

!
 3 CHAPTERS

-
 INTERMEDIATE EXAMINATION SET 1
MODEL ANSWERS TERM – DECEMBER 2024
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)
1. Choose the correct option: [15×2 = 30]

i. Right to Property is a _________________.

a. Fundamental Right.
b. Fundamental Duty.
c. Constitutional Right.
d. None of the above.

ii. A contract is ______________.

a. a legal obligation
b. An agreement plus a legal obligation
c. Consensus ad idem
d. An agreement plus a legal object
iii. The doctrine of caveat emptor applies ______________.
a. There is no implied conditions and warranties.
b. The buyer discloses to the seller the particular purpose for which goods are required.
c. when goods are sold by sample.
d. The seller sells the goods by making fraud and the buyer believes it.

iv. “Banker” includes:

a. Any person acting as an employee of any bank and any post office saving bank.
b. Any person acting as a banker and any post office saving bank
c. Any person acting as an agent of any bank and any post office saving bank.
d. Any person acting as a Managing Director of any bank and any post office saving bank

v. What are the right of partners after dissolution?

a. To have the surplus distributed among the partners or their representatives according
to their rights
b. To have business wound up after dissolution.
c. To have the property of the firm applied in payment of the debts and liabilities of the
firm
d. All of the above

vi. Whether a HUF can become partner in LLP?

a. HUF may become partner of LLP provided the Registrar may grant permission in this
behalf.
b. No, HUF can’t become partner in the LLP.
c. Yes, HUF may become partner of LLP.
d. None of the above.

1
Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIATE EXAMINATION SET 1
MODEL ANSWERS TERM – DECEMBER 2024
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
vii. Age of adolescent worker as per Factories Act, 1948 is:
a. Who has completed 17 years of age
b. Who is less than 18 years
c. Who has completed 15 years but less than 18 years.
d. None of these

viii. Gratuity is payable to an employee ___________________.

a. On his superannuation;
b. On his retirement or resignation, Retrenchment;
c. on his death or disablement due to accident or disease
d. In all the above cases.

ix. While filing appeal to EPF Appellate Tribunal the employer has to deposit_________ of
the amount due from him.
a. 25%.
b. 50%.
c. 75%.
d. None of the above.

x. A member of the ESI shall cease to be a member if he fails to attend______ consecutive

meeting.
a. 3
b. 5
c. 7
d. None of the above.

xi. An instrument of the proxy shall be deposited with the registered office of the
company__________ before the conduct of the meeting.
a. 7 hours;
b. 21 hours;
c. 48 hours;
d. 60 hours;

xii. New definition of wage under the Code specifically excludes which of these?
a. any bonus payable under any law for the time being in force
b. any conveyance allowance or the value of any travelling concession
c. house rent allowance
d. all of the above

xiii. A quasi contract _____________.

a. is a contract
b. in an agreement
c. creates only a legal obligation
d. is none of these

xiv. What would be the position, where a minor elect not to become a partner ______________.
a. He shall be entitled to sue the partners for his share of the property and profits

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Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIATE EXAMINATION SET 1
MODEL ANSWERS TERM – DECEMBER 2024
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
b. His rights and liabilities shall continue to be those of a minor under this section up to
the date on which he gives public notice.
c. His share shall not be liable for any acts of the firm done after the date of the notice.
d. All of the above

xv. The minimum administrative charge payable by the employer to the fund is ____________.
a. ₹75
b. ₹500
c. ₹1,000
d. None of the above.

Answer:
i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv.
c b a b d b c d c a c d c d b

Section – B

(Answer any five questions out of seven questions given. Each question carries 14 Marks)
[5 x 14 = 70]

2. (a) “Two or more persons are said to be consent when they agree upon the same thing in the
same sense” – Discuss with reason the consequences of the absent of consent and free
consent.

(b) Discuss the contract at indemnity at the right of indemnity holder when it sued.
[7 + 7 = 14]
Answer:

(a) “Two or more persons are said to consent when they agree upon the same thing in the same
sense.” - [Sec 13]. There will be flaw in consent if it is not free consent. If the parties have
not agreed upon the same thing in the same sense, there is no real consent and hence no
contract is formed.
As per section 14 of the Indian Contract Act, 1872 consent is said to be free when it is not
caused by:
I) Coercion (Sec 15): The term “Coercion” has been defined in Section 15 of the Act as
the committing or threatening to commit, any act forbidden by the Indian Penal Code, or
the unlawful detaining, or threatening to detain, any property, to the prejudice of any person
whatever, with the intention of causing any person to enter into an agreement.

II) Undue influence (Sec 16): Section 16 of the Indian Contract Act defines undue
influence as under:
i) A contract is said to be induced by “undue influence” where the relations subsisting
between the parties are such that one of the parties is in a position to dominate the will of
the other and uses that position to obtain an unfair advantage over the other.

3
Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIATE EXAMINATION SET 1
MODEL ANSWERS TERM – JUNE 2024
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A (Compulsory)

1. Choose the correct option: [15 × 2 = 30]

i. What is the chief source of legal authority in India?

a. People
b. Constitution of India
c. Parliament
d. President of India.

ii. Competency to contract relates to:

a. Age of parties
b. Soundness of mind of the parties
c. Both age and soundness of mind
d. Intelligence of the parties

iii. As per Sale of Goods Act, this is not included?

a. Growing crop
b. Money
c. Table
d. Goodwill

iv. The Negotiable Instruments Act, 1881 extends to:

a. Only to Capital cities of the States.
b. The whole of India
c. The whole of India except the State of Jammu and Kashmir
d. The whole of India except the Union Territories

v. Where no provision is made by contract between the partners for the duration
of their partnership, or for the determination of their partnership, the
partnership is called as:
a. Particular partnership
b. Partnership for a fixed term
c. partnership at will
d. None of the above

1
Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIATE EXAMINATION SET 1
MODEL ANSWERS TERM – JUNE 2024
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS

vi. What is the exact time limit under which a Limited Liability Partnership must
file its annual return?
a. A Limited Liability Partnership must file its annual return within 30
days from the closing of its financial year.
b. A Limited Liability Partnership must file its annual return within 45
days from the closing of its financial year.
c. A Limited Liability Partnership must file its annual return within 15
days from the closing of its financial year.
d. A Limited Liability Partnership must file its annual return within 60
days from the closing of its financial year.

vii. The employer shall display an abstract of the Act and the Rules in Form No.:
a. U
b. H
c. O
d. N

viii. The following cannot be nominated for the purposes of EPF Act-
a. Wife;
b. Sons of a deceased sons who have attained majority;
c. Father in law
d. Unmarried daughter

ix. An appeal shall lie to High Court from the orders of ESI within _______days
from the date of order of the ESI Court:
a. 30.
b. 60.
c. 90.
d. None of the above.

x. The minimum rate of wages on time work basis may be fixed in accordance
with:
a. by the hour; or
b. by the day; or.
c. by the month.
d. All of the above.

2
Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIATE EXAMINATION SET 1
MODEL ANSWERS TERM – JUNE 2024
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
xi. Which public company is required to appoint independent director”:
a. The public company having turnover of` 100 crores or more;
b. The public company having paid up share capital of ` 10 crores or more
c. The public companies which have, in aggregate, outstanding loans,
debentures and deposits exceeding ` 50 crores;
d. Any of the above.

xii. The following is the disadvantage of business ethics:

a. Through increasing morale and trust business can increase their
market share
b. Publicity due to well and ethical performance
c. Acceptance of products of the company by the public
d. Diversity in achievements

xiii. When the consent is caused by undue influence, the contract under Section 19A
is:
a. Valid
b. Void
c. Voidable
d. Illegal

xiv. The dissolution of partnership means:

a. It means the dissolution of partnership between all the partners of a
firm
b. It means the change in the relations of the partners
c. It means the reconstitution of the firm
d. None of the above

xv. Contribution of 10% to PF is applicable to-

a. Any establishment in which less than 20 employees are employed
b. Any establishment declared as sick industrial company;
c. Jute company;
d. All of the above.

Answer:
i ii iii iv v vi vii viii ix x
b c b d c a a b b d
xi xii xiii xiv xv
d d c b d

3
Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIAE EXAMINATION SET - 1
MODEL ANSWERS TERM – DECEMBER 2023
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.

SECTION – A

1. Multiple Choice Questions: [15 x 2 = 30]

(i) Cash is withdrawn by a customer of a bank from the automatic teller machine is an
example of __________________.
a. Express Contract
b. Void Contract
c. Tacit Contract
d. Illegal Contract

(ii) Which of the following agency is irrevocable under The Indian Contract Act, 1872?
a. Agency for fixed period
b. Agency for single transaction
c. Agency coupled with interest
d. Continuing Agency

(iii)A sort of tacit understanding /agreement among the intending bidders to stiffle
competition by not bidding against each other in an auction sale is called as ______.
a. Damping
b. Konck-out Agreement
c. Puffers
d. By-Bidders

(iv) When an instrument is drawn conditionally or for a special purpose as a collateral

security and not for the purpose of transferring property therein, it is called:
a. Ambiguous Instrument
b. Inchoate Instrument
c. Escrow Instrument
d. Inland Instrument

(v) A new partner may be admitted into a partnership firm either for the increase of
capital of the firm or to strengthen the _______
a. Production of the firm
b. Management of the firm
c. Profit share of the firm
d. Manpower of the firm

(vi) Power to exempt any LLP or class of LLP for audits of accounts is with ____________.
a. Inspector

1
Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIAE EXAMINATION SET - 1
MODEL ANSWERS TERM – DECEMBER 2023
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
b. Central Government
c. Any other regulatory authority
d. None of the above

(vii)According to Factories Act, 1948 white wash or colour wash should be carried out at
least once in every period of _____________.
a. 14 months
b. 24 months
c. 48 months
d. 60 months

(viii)Provisions of EPF & Miscellaneous Provision Act, 1952 are applicable to

Cinema/Theatre employing:
a. 10 or more persons
b. 20 or more persons
c. 5 or more persons
d. 15 or more persons

(ix) Gratuity is payable to an employee after he has rendered continuous service for not
less than five years on his ____________.
a. transfer
b. daughter’s marriage
c. re-employment
d. resignation

(x) The employer’s and employee’s share of contribution of ESI fund is

a. 1.75% and 4.75% of wages respectively
b. 3.25% and 0.75% of wages respectively
c. 10% and 3.75% of wages respectively
d. 11% and 3.75% of wages respectively

(xi) In which of the following manner, the employer may fix wage period as per Code of
Wages, 2019?
(i) Daily (ii) Weekly (iii) Fortnightly (iv) Monthly
a. (i), (ii) and (iv)
b. (i) and (ii)
c. (i), (ii), (iii) and (iv)
d. Only (iv)

(xii)The sweat equity shares shall be locked in for a period of ____ years from the date of
allotment.
a. One
b. Two
c. Three
d. Four

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Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIAE EXAMINATION SET - 1
MODEL ANSWERS TERM – DECEMBER 2023
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
(xiii)Every company limited by shares shall keep and maintain the Register of Members
in Form No. _____
a. MGT – 1
b. MGT – 3
c. MGT – 7
d. MGT – 12

(xiv)A prospectus which does not have complete particulars on the price of securities
offered and the quantum of securities offered by the company is known as:
a. Private placement
b. Red-herring prospectus
c. Deemed prospectus
d. Shelf prospectus

(xv)Meta ethics deal with the nature of ______

a. External influences
b. Moral Judgement
c. Material facts
d. Personal rights

Answer:

(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv)
c c b c b b a c d b c c a b b

Section – B

(Answer any five questions out of seven questions given. Each question carries 14 Marks)

2.(a) Discuss the different modes of terminating contractual relationship between the
parties. [7]

2.(b) Discuss the circumstances when an agent is personally liable for the contracts
entered into by him on behalf of the principal? [7]

Answer:

2. (a) Modes of Terminating Contractual relationship between the parties:

When the rights and obligations created by a contract come to an end, the contract is said
to be discharged or terminated. In other words, discharge of contract means termination
of contractual relationship between the parties.

Modes of discharge:
1. Discharge by performance:

3
Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIAE EXAMINATION SET - 2
MODEL ANSWERS TERM – DECEMBER 2023
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
Time Allowed: 3 Hours Full Marks: 100
The figures in the margin on the right side indicate full marks.
Where considered necessary, suitable assumptions may be made and
clearly indicated in the answer.

SECTION – A (Compulsory)

1. Choose the correct alternative: [2 × 15 = 30]

(i) The term 'family' as defined in ESI Act, 1948 does not include:
a. a spouse
b. a minor adopted child
c. a dependent unmarried daughter
d. an independent married sister
(ii) Sec. 56 talks about the _________ under the Code on Wages Act, 2019:
a. Composition of offences.
b. Offences by Companies.
c. Penalties for Offences.
d. Power of Officers.
(iii) The Constitution of India describes India as:
a. A federation.
b. Quasi-federal.
c. A Union of states.
d. None of the above.
(iv) Which one of the following is not the feature of “agreement to sale” under the
Sale of Goods Act, 1930?
a. It is an executor contract.
b. Sales takes place for existing and specific goods.
c. The seller can sue for damages only in case of breach by the buyer.
d. It gives a right to the buyer against the seller to sue for damages.

(v) Which one cannot be transacted through postal ballot?

a. Appointment of auditor.
b. Election of a Director.
c. Buy back of shares by a company.
d. Change in place of registered office outside the local limits of any city, town
or village.

1
Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIAE EXAMINATION SET - 2
MODEL ANSWERS TERM – DECEMBER 2023
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS

(vi) The minimum number of designated partners in an LLP shall:

a. 1
b. 2
c. 7
d. 15

(vii) Under the Negotiable Instruments Act, 1881, whether acceptance of a bill of
exchange in the following situation shall be treated as qualified acceptance
where the acceptor
a. undertakes to pay only ₹10,000 for a bill drawn for ₹15,000.
b. declares the payment to be independent of any other event.
c. writes, ‘Accepted, payable at ABC Bank’.
d. writes, ‘Accepted, payable at Delhi’.

(viii) What is the paid up share capital fixed for the appointment of a woman
director?
a. ₹ 100 crores;
b. ₹ 300 crores.
c. ₹ 500 crores.
d. None of the above.

(ix) Which one of the following will not include in the definition of basic wages
under Employee’s Provident Funds and Miscellaneous Provisions Act ,1952?
a. 25%.
b. 50%.
c. 75%.
d. None of the above.

(x) Where any member of a firm has died or otherwise ceased to be a partner, and
the surviving or continuing partners carry on the business of the firm with the
property of the firm without any final settlement of accounts as between them
and the outgoing partner or his estate, then, in the absence of a contract to the
contrary, the outgoing partner or his estate is entitled at the option of himself
or his representatives to such share of the profits made since he ceased to be a
partner as may be attributable to the use of his share of the property of the
firm or to interest at the rate of on the amount of his share in the property of
the firm:
a. 9% p.a.
b. 18% p.a.
c. 6% p.a.

2
Directorate of Studies, The Institute of Cost Accountants of India
 INTERMEDIAE EXAMINATION SET - 2
MODEL ANSWERS TERM – DECEMBER 2023
PAPER – 5 SYLLABUS 2022
BUSINESS LAWS AND ETHICS
d. 12% p.a.

(xi) Which one of the following is not a quasi-contract?

a. Claim for necessaries supplied to person incapable of contracting, or on
his account.
b. Reimbursement of persons paying money by another, in payment of
which he is interested.
c. Uncertainty and futurity of the event to which it is related.
d. Responsibility of finder of goods.

(xii) The relationship between laws and ethics is:

a. Complex;
b. Simple;
c. Inexplicable;
d. None of the above;

(xiii) A factory employs 250 workers. All the workers including workers above 60
years of age and below 15 years of age went on strike. The employer.
a. can deduct fine from all the workers
b. cannot deduct fine from workers who are under the age of 15
c. no fine can be imposed from workers who are 60 years and above
d. cannot deduct any fine from any worker.

(xiv) In case of e-voting, notice shall be sent as attachment in

a. PDF file
b. Word file
c. Excel file
d. Access file

(xv) Where a company issues shares with differential right, the should be
maintained under Section 88 of Companies Act, 2013.
a. List of share-holders
b. Register of shares
c. Register of Members
d. List of shares

3
Directorate of Studies, The Institute of Cost Accountants of India