LEGAL REASONING – LOGICAL REASONING 283 Legal Reasoning - Logical Reasoning 1 / 20 What is the mandatory requirement for a person to be appointed as a director of a company according to the Companies Act, 2013? a) Possessing a degree in business management b) Holding a substantial number of company shares c) Having a Director Identification Number or other prescribed number d) Having previous experience as a director in another company 2 / 20 Which class of companies is exempted from the maximum limit of fifteen directors as mentioned in the Companies Act, 2013? a) Private companies b) Public companies c) Section 8 companies d) Producer companies 3 / 20 How many directors are required for a public company as per Section 149(1) of the Companies Act, 2013? a) At least one director b) At least two directors c) At least three directors d) At least fifteen directors 4 / 20 What differentiates a "Non-Banking Financial Company (NBFC)" from other financial institutions under the Companies Act? a) Principal business related to agriculture activities b) Engagement in insurance and chit business c) Accepting deposits under any scheme or arrangement d) Involvement in purchase/sale of marketable securities 5 / 20 Which of the following activities is NOT typically associated with the objects of a Producer Company, as specified in Section 378B of the Companies Act, 2013? a) Rendering technical services b) Processing and packaging produce c) Manufacturing and selling machinery d) Conducting insurance business 6 / 20 What is the primary purpose of a "Producer Company" as defined in the Companies Act, 2013? a) Providing loans and advances to members b) Promoting agriculture and industrial activities c) Engaging in financial services and insurance d) Handling marketing and selling of primary produce for members' benefit 7 / 20 According to the explanation provided, when does a company have "significant influence" over another company? a) When it controls less than 20% of total voting power. b) When it appoints all the directors of the other company. c) When it participates in business decisions under an agreement. d) When it controls over 50% of the total voting power. 8 / 20 What is the primary criterion for a company to be classified as a "Government Company"? a) It must be owned by the Central Government. b) It must be owned by the State Government. c) At least 51% of its paid-up share capital is held by the government(s). d) It operates outside India. 9 / 20 What is the distinguishing feature of a "One Person Company"? a) It has only one shareholder. b) It is a subsidiary of another company. c) It promotes charitable activities. d) It has a significant influence over other companies. 10 / 20 Legal Principle: A violation of a legal Right, with or without damage, gives rise to a tort. Factual Situation: Mr. Ketan establishes a coaching class for Company Secretary Students of the Executive Programme and charges Rs.10,000/- per year as tuition fees. Mr. Ketan’s neighbor, Mr. Kalia, establishes another coaching class for Company Secretary Students of the Executive Programme, thereby creating competition between them. This forces Mr. Ketan to reduce his tuition fees to Rs. 7,000/- per year. Can Mr. Ketan claim damages from Mr. Kalia for the loss caused to him? (a) Yes, he can as Mr. Kalia has violated his Legal Right (b) No, Mr. Ketan has reduced the fees on his own (c) No, because though there was damage, there was no legal injury (d) None of the above. 11 / 20 What legal principle is reflected in the phrase "All agreements are contracts if they are made with free consent by parties competent to contract for a lawful consideration and with a lawful object"? a) The principle of estoppel b) The principle of legal reasoning c) The principle of promissory estoppel d) The principle of valid contract formation 12 / 20 When is the Latin term "Suo motu" applicable? a) When there is a right there is a remedy b) On its own motion c) Injury is not done to one who knows and wills it d) Something for something 13 / 20 What does "Stare decisis" stand for in legal terminology? a) Damage suffered by consent gives no cause of action b) An indispensable condition c) Precedent; literally, let the decision stand d) Let the principal be liable 14 / 20 . Which Latin maxim signifies "For the public good"? a) Scientiet volenti non-fit injuria b) Pro bono publico c) In bad faith d) Let the seller beware 15 / 20 What is the meaning of the Latin term "Per incuriam" in legal terminology? 1. What is the meaning of the Latin term "Per incuriam" in legal terminology? b) Through want of care; through inadvertance c) Beyond human foresight d) Good faith; genuine 16 / 20 When is the Latin term "Ex turpi causa non oritur actio" applicable? a) When there is a caution registered with the public court b) When there is a legal contract in place c) When no action arises from an illegal or immoral cause d) When the buyer should beware 17 / 20 What does "Mens rea" stand for in legal terminology? a) Guilty mind b) An accomplished act c) Injury without damage d) A writ to have the body brought up before the judge 18 / 20 Which Latin maxim represents the principle that "Express mention of one thing implies the exclusion of another"? a) Caveat emptor b) Expressio unius est exclusio alterius c) Ignorance of law excuses no one d) In bad faith essio 19 / 20 What is the meaning of "Locus standi" in legal terms? a) Good faith; genuine b) Right of a party to appear and be heard on the question before any tribunal c) A caution registered with the public court d) Let the buyer beware 20 / 20 What does the Latin term "Ad hoc" mean in legal terminology? a) From the antecedent to the consequent b) For the particular end or case at hand c) According to value d) Damage without injury Your score is LinkedIn Facebook Twitter VKontakte