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Judiciary Exams Exam  >  Judiciary Exams Tests  >  Civil Law for Judiciary Exams  >  Test: Rights of Unpaid Seller - Judiciary Exams MCQ

Test: Rights of Unpaid Seller - Judiciary Exams MCQ


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20 Questions MCQ Test Civil Law for Judiciary Exams - Test: Rights of Unpaid Seller

Test: Rights of Unpaid Seller for Judiciary Exams 2024 is part of Civil Law for Judiciary Exams preparation. The Test: Rights of Unpaid Seller questions and answers have been prepared according to the Judiciary Exams exam syllabus.The Test: Rights of Unpaid Seller MCQs are made for Judiciary Exams 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Rights of Unpaid Seller below.
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Test: Rights of Unpaid Seller - Question 1
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What does the Sales of Goods Act, 1930 in India define as an unpaid seller?

Detailed Solution for Test: Rights of Unpaid Seller - Question 1
According to the Sales of Goods Act, 1930 in India, an unpaid seller is defined as a seller who has not received full payment for the goods they have sold. This legal definition is crucial in protecting the interests of sellers when buyers fail to meet their payment obligations. It ensures that sellers have rights and recourse in situations where payments are incomplete.
Test: Rights of Unpaid Seller - Question 2
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What rights does the law grant to unpaid sellers under the Sales of Goods Act, 1930 in India?

Detailed Solution for Test: Rights of Unpaid Seller - Question 2
The Sales of Goods Act, 1930 in India provides various rights to unpaid sellers to protect their interests and assist in recovering their dues. These rights empower sellers to take appropriate actions in cases where buyers default on payment obligations. It is essential for sellers to understand these rights to effectively navigate and address situations of non-payment.
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Test: Rights of Unpaid Seller - Question 3
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Why are the rights granted to unpaid sellers significant under the Sales of Goods Act, 1930 in India?

Detailed Solution for Test: Rights of Unpaid Seller - Question 3
The rights granted to unpaid sellers under the Sales of Goods Act, 1930 in India are crucial as they aim to safeguard sellers' interests and facilitate the recovery of their dues in cases of non-payment by buyers. These rights provide sellers with legal recourse and options to protect themselves in commercial transactions, ensuring a fair and balanced approach to resolving disputes related to unpaid goods.
Test: Rights of Unpaid Seller - Question 4
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What is the primary right that an unpaid seller possesses according to the Sales of Goods Act, 1930, allowing them to withhold the goods until full payment is received from the buyer?
Detailed Solution for Test: Rights of Unpaid Seller - Question 4
The correct answer is Option C: Right to Lien. This right enables the unpaid seller to retain possession of the goods until the buyer fulfills the payment obligation. It acts as a form of security for the seller in case the buyer fails to make the complete payment. This right is crucial in protecting the seller's interests and ensuring that they receive the agreed-upon compensation for the goods sold.
Test: Rights of Unpaid Seller - Question 5
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What recourse does an unpaid seller have if the buyer neglects to collect or pay for the goods within a reasonable time frame?
Detailed Solution for Test: Rights of Unpaid Seller - Question 5
The correct answer is Option B: Right of Resale. When the buyer fails to either pay for or collect the goods within a reasonable period, the seller is entitled to resell the goods to another party. Additionally, the seller can claim damages from the original buyer for any losses incurred due to the non-payment or non-collection of the goods. This right provides a legal avenue for the seller to mitigate potential financial losses resulting from buyer defaults.
Test: Rights of Unpaid Seller - Question 6
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What action can an unpaid seller take if a buyer fails to pay for goods and the seller retains possession of the goods until payment is made?
Detailed Solution for Test: Rights of Unpaid Seller - Question 6
An unpaid seller can exercise the Right to Lien, which allows them to retain possession of the goods until the buyer fulfills the payment obligation. This right enables the seller to withhold delivery until the payment has been made, ensuring that they receive the agreed-upon compensation for the goods.
Test: Rights of Unpaid Seller - Question 7
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In which scenario can a seller reclaim possession of goods that are in transit to the buyer due to non-payment?
Detailed Solution for Test: Rights of Unpaid Seller - Question 7
The seller can invoke the Right to Stoppage in Transit when they discover that the buyer has not paid for the goods and the goods are still in transit. This right allows the seller to halt the delivery process and take back possession of the goods to prevent their transfer to the buyer without receiving payment.
Test: Rights of Unpaid Seller - Question 8
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What recourse does a seller have if a buyer fails to collect purchased goods within a reasonable timeframe?
Detailed Solution for Test: Rights of Unpaid Seller - Question 8
When a buyer neglects to collect goods within a reasonable time period, the seller can exercise the Right of Resale. This right permits the seller to resell the goods to another party and seek damages from the original buyer for any losses incurred due to the buyer's failure to collect the goods promptly.
Test: Rights of Unpaid Seller - Question 9
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What legal framework primarily governs the rights of unpaid sellers in India?
Detailed Solution for Test: Rights of Unpaid Seller - Question 9
The rights of unpaid sellers in India are primarily regulated by the Sales of Goods Act, 1930. This legislation outlines the rights and responsibilities of buyers and sellers regarding the sale of goods. The Act covers various aspects of goods sale transactions, including contract formation, conditions and warranties, property transfer, contract performance, and remedies for breaches. It is crucial for sellers to understand their rights and obligations under this law to protect their interests.
Test: Rights of Unpaid Seller - Question 10
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Which of the following aspects is specifically addressed within the Sales of Goods Act, 1930 concerning goods sale transactions?
Detailed Solution for Test: Rights of Unpaid Seller - Question 10
The Sales of Goods Act, 1930 includes provisions that specifically address property transfer within goods sale transactions. This aspect is crucial in defining the transfer of ownership rights from the seller to the buyer, outlining the conditions under which this transfer occurs, and establishing legal frameworks for resolving disputes related to property transfer. Understanding these provisions is essential for ensuring clarity and security in commercial transactions involving the sale of goods.
Test: Rights of Unpaid Seller - Question 11
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What does the "Right of Lien" entail for sellers under the Sales of Goods Act, 1930?
Detailed Solution for Test: Rights of Unpaid Seller - Question 11
The "Right of Lien" grants sellers the right to retain possession of goods until the full payment is received. This means that if goods are sold on credit, sellers can withhold the delivery of goods until the buyer pays the full price. It acts as a form of security for sellers to ensure that they receive the agreed-upon payment before relinquishing possession of the goods.
Test: Rights of Unpaid Seller - Question 12
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When can sellers exercise the "Right to Rescind the Contract" under the Sales of Goods Act, 1930?
Detailed Solution for Test: Rights of Unpaid Seller - Question 12
Sellers can exercise the "Right to Rescind the Contract" in situations where the buyer becomes insolvent before the delivery of goods. This right allows sellers to cancel the contract, claim damages, and retain any advance payments made by the buyer. It serves as a protective measure for sellers in cases where buyers are unable to fulfill their payment obligations.
Test: Rights of Unpaid Seller - Question 13
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What action can sellers take if the buyer becomes insolvent after goods are dispatched but before delivery under the Sales of Goods Act, 1930?
Detailed Solution for Test: Rights of Unpaid Seller - Question 13
In such a scenario, sellers can exercise the "Right to Stoppage in Transit," which allows them to stop the goods in transit to recover dues. This right enables sellers to prevent the delivery of goods to an insolvent buyer, thereby safeguarding their interests and seeking to recoup potential losses incurred due to the buyer's insolvency.
Test: Rights of Unpaid Seller - Question 14
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How does the scenario in Great Indian Peninsula v. Hanmandas contribute to the understanding of seller's rights in commercial transactions?
Detailed Solution for Test: Rights of Unpaid Seller - Question 14
The scenario in Great Indian Peninsula v. Hanmandas demonstrates the concept of stoppage in transit in commercial transactions. This right allows a seller to halt the delivery of goods in transit to the buyer, especially in cases of buyer insolvency, to ensure that the seller can recover the dues owed to them. Stoppage in transit is a crucial legal protection for sellers in such situations.
Test: Rights of Unpaid Seller - Question 15
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Referencing the case of R v. Ward v. Bignall, what legal action did the seller take due to the buyer's non-payment, as outlined in the scenario?
Detailed Solution for Test: Rights of Unpaid Seller - Question 15
In the case of R v. Ward v. Bignall, the seller took the legal action of reselling the cars due to the buyer's non-payment. This action of reselling the goods, also known as the right of resale, is a recourse available to sellers in situations where buyers fail to make the required payments for the purchased goods. By exercising the right of resale, the seller can recover the outstanding amounts owed to them through the sale of the goods to another party.
Test: Rights of Unpaid Seller - Question 16
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What right enables an unpaid seller to withhold possession of goods until payment is received from the buyer?
Detailed Solution for Test: Rights of Unpaid Seller - Question 16
The right that allows an unpaid seller to retain possession of goods until payment is received is known as the "Right of Lien." This right empowers the seller to withhold delivery of goods until the buyer settles the outstanding payment. It serves as a form of security for the seller in commercial transactions, ensuring that they receive the due compensation before relinquishing control of the goods.
Test: Rights of Unpaid Seller - Question 17
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In what situation can an unpaid seller stop the goods while they are in transit to the buyer?
Detailed Solution for Test: Rights of Unpaid Seller - Question 17
An unpaid seller can halt the goods while they are in transit to the buyer if the buyer becomes insolvent. This right, known as "Stoppage in Transit," allows the seller to intervene in the delivery process if they learn that the buyer is facing financial difficulties such as insolvency or bankruptcy. By exercising this right, the seller aims to protect their interests and prevent potential losses resulting from the buyer's inability to fulfill the transaction.
Test: Rights of Unpaid Seller - Question 18
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What remedy allows the unpaid seller to claim compensation for financial losses incurred due to the buyer's default?
Detailed Solution for Test: Rights of Unpaid Seller - Question 18
The remedy that enables the unpaid seller to seek compensation for financial losses suffered as a result of the buyer's default is referred to as the "Claim for Damages." In situations where the buyer fails to fulfill their payment obligations, leading to financial harm for the seller, this remedy allows the seller to pursue legal recourse to recover the incurred losses. It serves as a means of redress for the seller's financial detriment resulting from the buyer's breach of contract.
Test: Rights of Unpaid Seller - Question 19
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What is the right that allows the unpaid seller to withhold delivery of goods until payment is received?
Detailed Solution for Test: Rights of Unpaid Seller - Question 19
The correct answer is Option D: Right of Lien. This right permits the unpaid seller to retain possession of the goods until payment is received. It acts as a form of security for the seller in case the buyer fails to make the necessary payment. This right helps ensure that sellers are protected in commercial transactions.
Test: Rights of Unpaid Seller - Question 20
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When can the seller stop the goods while they are in transit to the buyer?
Detailed Solution for Test: Rights of Unpaid Seller - Question 20
The correct answer is Option D: If the buyer becomes insolvent. In such a scenario, the seller can stop the goods while they are in transit to the buyer. This right, known as Stoppage in Transit, allows the seller to halt the delivery of goods if the buyer is unable to meet their financial obligations, such as in cases of bankruptcy or insolvency.
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