NABARD Manager Grade B Agribusiness Law & Ethics: practice questions

Question 1 · medium

A farmer stores 200 bags of wheat in a warehouse and later borrows from a bank against the warehouse receipt. The storage and the lending are, respectively:

1. pledge and hypothecation
2. agency and guarantee
3. bailment and pledge
4. sale and English mortgage

Question 2 · easy

The parties to a bill of exchange are:

1. maker and payee
2. drawer and banker only
3. maker, surety and payee
4. drawer, drawee and payee

Question 3 · hard

Suppose a country's cheque law allows interim compensation of up to 20 per cent of a dishonoured cheque's amount and, on conviction, a fine of up to twice the amount. For a cheque of 450,000 currency units given for a trade debt, what are the maximum interim compensation and the maximum fine?

1. 45,000; fine up to 450,000
2. 90,000; fine up to 450,000
3. 90,000 interim compensation; fine up to 900,000
4. 225,000; fine up to 1,350,000

Question 4 · medium

A mandatory-CSR law applies to any company that in the preceding year had net worth of 5,000 million currency units or more, or turnover of 10,000 million or more, or net profit of 50 million or more. A company had net worth of 3,000 million, turnover of 8,000 million and net profit of 60 million. Does the law apply?

1. No, because it meets neither the net worth threshold nor the turnover threshold
2. No, because all three thresholds must be met together before the law applies
3. Yes, but only if the company's shares are listed on a stock exchange
4. Yes, because a net profit of 50 million or more is enough on its own

Question 5 · hard

Unlike the profit of an investor-owned company, the surplus of a marketing cooperative is usually distributed:

1. to members as patronage refunds, in proportion to the business each did with it
2. to members in proportion to the number of shares each holds, exactly like company dividends
3. entirely to the board of directors as a performance bonus
4. to the government as a special tax on cooperative trading

Question 6 · hard

Through which instrument can cooperatives operate across European Union member states under a common legal form?

1. Directive (EU) 2019/633 on unfair trading practices in the food supply chain
2. The European Cooperative Society (SCE) under Regulation 1435/2003
3. Articles 101 and 102 of the Treaty on the Functioning of the European Union
4. Regulation (EC) 178/2002, the EU General Food Law

Question 7 · easy

Emergency or essential-supplies laws in many countries let the government regulate trade in essential goods during shortages. Their usual working instrument is:

1. a separate constitutional amendment passed for each commodity
2. a court injunction obtained by consumer associations against traders who hoard
3. a voluntary code agreed among the largest traders
4. a control order issued by the executive under the parent statute

Question 8 · easy

Freedom-of-information laws, now found in more than 130 countries, typically share which feature?

1. A right to obtain any document held by any private company, whether or not it receives public funds
2. No deadline for replies, so authorities answer requests when convenient
3. Exemption of every agriculture ministry from disclosure duties
4. A right to request public records, a reply deadline, limited exemptions and an independent appeal

Question 9 · medium

An information law fines an officer 250 currency units for each day of unjustified delay, up to a maximum of 25,000. A commission imposing the full daily rate finds a delay of 70 days without reasonable cause. What is the penalty?

1. 25,000 currency units
2. 7,000 currency units
3. 175,000 currency units
4. 17,500 currency units

Question 10 · hard

A competition law caps penalties for abuse of dominance at 10 per cent of average turnover of the three preceding years. A dominant agrochemical firm's turnover in those years was 800, 900 and 1,000 million currency units. What is the maximum penalty?

1. 90 million currency units
2. 100 million currency units
3. 270 million currency units
4. 27 million currency units