Tort (CLAT Legal-Aptitude): Questions 16 - 17 of 82

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Question number: 16

» Tort

Appeared in Year: 2014

MCQ▾

Question

PRINCIPLES: Damage without the violation of a legal right is not actionable in a court of law. If the interference with the rights of another person is not unlawful or unauthorized, but a necessary consequence of the exercise of defendant’s own lawful rights, no action should lie.

FACTS: There was an established school (`ES’) in a particular locality. Subsequently, a new school (‘NS’) was set up in the same locality, which charged lower fees, on account of which people started patronizing the new school. Because of the competition, `ES’ had to reduce its fees. `ES’ filed a case against ‘NS’ saying that ‘NS’ had caused it (`ES’) financial loss and, thus, claimed compensation.

Which of the following derivations is CORRECT?

Choices

Choice (4) Response
a.

No compensation could be granted, as reduction in fees is good for the public

b.

`ES’ should be awarded compensation, as opening of school in competition is not good

c.

Since damage is caused to `ES’, therefore, it should be awarded compensation

d.

Since no legal right of `ES’ had been violated, therefore, as such, no compensation could be granted

Question number: 17

» Tort

Appeared in Year: 2014

MCQ▾

Question

PRINCIPLES: Vicarious liability is the liability of the Master or Principal for the tort committed by his servant or agent, provided the tort is committed in the course of employment. The Master or Principal is not liable for private wrongs of the servant/agent.

FACTS: `X’ hands over some cash money at his house to `Y’, who is his (X’s) neighbor and is also, cashier in a bank, to be deposited in A’s account in the bank. Instead of depositing the money, `Y’ misappropriates it.

Which of the following statements depicts correct legal position in this given situation?

Choices

Choice (4) Response
a.

The bank would not be liable because `Y’ did not do any wrong

b.

The bank would be vicariously liable because `Y’ was the employee of the bank

c.

The bank would be liable because `Y’ acted as bank’s agent

d.

The bank would not be liable because `Y’ did not do any wrong in the course of his employment

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