1.In case a minor who was a beneficiary in a firm elects not to become a partner, on attaining age of majority:

a.He continues to be liable until the date of the Notice.

b.He shall not be liable for any acts of the firm done after the date of the Notice.

c.He shall be entitled to sue the partners for his share of the profits.

d.All of the above is correct.

2.Ordinary shares are also called:

a)Equity shares

b)Preferred Shares

c)Deferred Shares

d)Founders Shares

3.Hassan buys a watch from Saleem which he wants to use for underwater diving. Saleem shows him a watch for the purpose which Hassan likes and purchases it for Rs 200,000/00. The watch stops working under water and is destroyed due water seapage. As far as legal position is concerned:

a.Hassan can sue Saleem for damages only.

b.Hassan can return the watch and can claim damages as well.

c.Hassan has no claim against the seller.

d.The seller is not bound if he is ready to get the watch repaired.

4.Gooseberry pharmaceuticals are manufacturers of patent medicines and produce cough mixture called Gala Cough Linctus. Sophia an opera singer had caught a severe cold and was concerned to recover from the associated cough before her next engagement that evening. Her husband Ahmed had recently bought a bottle of syrup from Amjad, a local chemist but it remained unopened, as Ahmed had recovered without using it, the linctus syrup should have contained 2 % alcohol but because of a temporary defect at the plant at Gooseberry pharmaceutical some bottles contained 75 % alcohol. Some of these bottles had been supplied to Amjad and other retailers.

An hour before going on stage Sophia drank recommended dose of the linctus and became drunk. She staggered all over the stage, forgot her lines and sang obscene songs. She lost the remainder of the engagement and is now thinking to bring a claim against whosoever is responsible for her state. She thinks Gooseberry pharmaceutical have more money to pay damages than Amjad. You have been hired to represent her in the court. The legal position is that:

a.Sophia cannot succeed in getting any damages from the Gooseberry Pharmaceuticals as she was not the original buyer of the medicine.

b.Sophia is most likely to succeed as goods sold by Description must correspond to description.

c.Sophia can succeed if she decides to sue Amjad instead of Gooseberry.

d.Ahmed can succeed in suing the chemist as he was the original buyer of the medicine.

5.Ashraf a leading constructor with good name and reputation lent his name to a firm of partners run by Javed, Nadeem, Nauman and Huzaifa, but agreed neither to share the profit, nor to interfere in the management of the firm. He contributed neither the money nor any labor to the firm. The firm became financially embarrassed after a year and the creditors have now sued Ashraf for payment of the debt. You have been hired as advisor to Ashraf, advise him keeping your knowledge of law vis--vis the recovery of loan by the creditors:

a.Ashraf need not worry as he is not a partner in the firm; he just lent his name to the firm.

b.The four partners will not be responsible to the creditors.

c.Ashraf is equally liable to the creditors like other partners but can claim indemnity from them later on.

d.Ashraf is a partner by necessity.