UGC NET Commerce Unit 9 PYQs: Important Previous Year Questions with Answers

UGC NET Commerce Unit 9 (Legal Aspects of Business) is one of the scoring units in Paper 2 Commerce when preparation focuses on concept clarity and previous year question practice. Questions are concept-based and often test legal definitions, provisions, sequence-based procedures, matching concepts, and application of business laws.

Solving UGC NET Commerce Unit 9 PYQs improves Accuracy in legal terminology, help in concept application in MCQs and improve solving speed in speed in the final examination. This practice set is created in an exam-oriented format inspired by previous year themes discussed in the uploaded transcript.

UGC NET Commerce Unit 9 Overview

UGC NET Commerce Unit 9 focuses on the Legal Aspects of Business and evaluates a candidate’s understanding of important business laws, regulatory frameworks, and legal provisions applicable to commercial activities. Questions in this unit are generally objective in nature and test both conceptual clarity and practical application of legal principles.

Before starting the previous year questions, take a quick look at the overview below to understand the scope, difficulty level, and major topics covered under this unit.

Important UGC NET Commerce Unit 9 PYQs with Answers

Practising UGC NET Commerce Unit 9 PYQs is one of the most effective ways to understand the exam pattern and identify frequently tested legal concepts. The questions below are designed to help candidates revise important topics from Legal Aspects of Business while improving speed, accuracy, and conceptual understanding for Paper 2 Commerce. 

1. Fiduciary Relationship Is Based On:

A. Legal obligation
B. Absolute trust and reliance
C. Trade relation
D. Monetary benefits

Correct Answer: B

Explanation:
A fiduciary relationship is built primarily on trust, confidence, and reliance between parties.

2. What Is the Privilege of the Holder in Due Course?

A. Subject to all defects
B. Instrument free from previous defects
C. Conditional transfer
D. Restricted ownership

Correct Answer: B

Explanation:
A holder in due course gets a negotiable instrument free from prior defects in title.

3. Which of the Following Is a Void Contract?

A. Express Contract
B. Implied Contract
C. Contract which ceases to be enforceable by law
D. Unilateral Contract

Correct Answer: C

Explanation:
A contract becomes void when it ceases to be enforceable by law.

4. Schedule III Part II of Companies Act, 2013 Deals With:

A. Balance Sheet Format
B. Statement of Profit and Loss
C. Trading Account
D. Cash Book

Correct Answer: B

Explanation:
Part II of Schedule III provides the format for the Statement of Profit and Loss.

5. To Become a Director in a Company, a Person Must Obtain:

A. Business License
B. Director License
C. TIN Number
D. DIN Number

Correct Answer: D

Explanation:
DIN stands for Director Identification Number and is mandatory for company directors.

6. Which one among the following is the duty of the Central Assistant Public Information Officer or a State Assistant Public Information Officer?

(A) To receive the applications for information or appeals under the Act for forwarding the same forthwith to the CPIO/SPIO. 

(B) To receive the fee for the RTI applications. 

(C) To assist the CPIO/SPIO in furnishing the reply to the applicant. 

(D) To ensure that RTI applications are replied within the prescribed period.

Correct Answer:

Option (A)

Explanation:

According to Section 5(2) of the RTI Act, 2005, the statutory duty of an Assistant Public Information Officer (APIO) is limited to receiving applications or appeals and forwarding them immediately to the Central or State Public Information Officer.

7. The indemnity holder is NOT entitled to:

(A) All damages which he may be compelled to pay in any suit in respect of any matter to which the promise applies 

(B) All costs that he may be compelled to bear in defending any such suit 

(C) All sums that he may have paid under the terms of any compromise of such suit 

(D) Damages for liability incurred which is not absolute

Correct Answer:

Option (D)

Explanation:

According to Section 125 of the Indian Contract Act, 1872, an indemnity holder is explicitly entitled to recover all damages, costs of litigation, and compromise sums when acting within their authority; however, they cannot claim damages for a contingent liability that is not absolute or final.

8. Match List I with List II

Choose the correct option:

(A) (a)-(ii), (b)-(iii), (c)-(iv), (d)-(i)

(B) (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i)

(C) (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)

(D) (a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)

Correct Answer:

Option (A)

Explanation:

The items correctly correspond to their primary legal concepts: Transfer of ownership relates to the Sale of Goods Act, Sale of goodwill after dissolution falls under Partnership Law, Buy-back of securities alters the Share Capital of a Company, and a Promissory Note is defined as a Negotiable Instrument.

Important Areas to Revise for Unit 9

Before attempting the exam, prioritise:

Business Laws

• Indian Contract Act

• Indemnity and Guarantee

• Sale of Goods

Company Law

• Director provisions

• Financial statements

• Incorporation process

LLP

• Membership

• Incorporation sequence

• LLP Agreement

Tax & Regulatory Laws

• GST

• RTI Act

• Competition Act

Negotiable Instruments

• Promissory Note

• Cheque

• Holder in Due Course

Smart Strategy to Prepare UGC NET Commerce Unit 9 PYQs

The following preparation strategy will help you analyze PYQ trends, strengthen core concepts, and maximize your score in Unit 9.

1. Solve Topic-wise PYQs: Attempt questions chapter by chapter instead of random practice.

2. Create a Legal Terms Notebook: Maintain one-page revision notes for legal terms and provisions.

3. Practice Elimination Technique: Most legal MCQs become easier by eliminating technically incorrect options.

4. Revise Sequences and Processes: Company incorporation and LLP formation are frequently tested.

5. Focus on Concept + Provision Together: Memorising sections alone is not sufficient.