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Appendix
CS Executive Programme Module-II (New Syllabus) December - 2010
Paper - 5 : Economic and Labour Laws Chapter - 3 : Trade, Competition & Consumer Protection 2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes on the following : (i) Predatory pricing (3 marks) (vii) Complainant under the Consumer Protection Act, 1986. (3 marks) Answer : (i) Please refer1999 - June [1] {C} (i) on page no. 50 (vii) The term Complainant is defined under Section 2(1) (b) of the Consumer Protection Act, 1986 Y Complainant includesC Consumer C In case of death of consumer, his legal heir representative C Voluntary consumer association C Central/State Government C One or more consumers where there are numerous consumers having same interest Who make a complaint 2010 - Dec [4] (c) Prakash, aged 37 years, was travelling from Mumbai to Delhi by air. When he occupied his seat in the aircraft, an announcement was made that his luggage was lying on the ground unidentified and that he should disembark to identify his luggage. When Prakash was stepping down from the aircraft, the ladder was suddenly removed as a result of which he fell down sustaining bodily injuries causing 10% disablement. As against the claim of Rs. 10 lakh filed by Prakash towards compensation, the airlines was willing to pay Rs. 40,000 which according to it was the maximum statutory liability of the airlines under the Carriage by Air Act, 1972. However, the State Commission awarded Rs. 4 lakh towards compensation and an additional Rs. 1 lakh for mental agony and distress plus costs. Is the order passed by the State Commission justified ? If so, give reasons and refer to the decided case law. (5 marks) Answer :

Appendix CS Executive Programme Module-II Paper 5 Please refer to 2004 - June [5] (i) of Practical Questions on page. no.79

Chapter - 4 : Essential Commodities and Standards of Weight and Measures 2010 - Dec [4] (b) Explain the provisions for confiscation of an essential commodity seized in contravention of the Essential Commodities Act, 1955. (5 marks) Answer : Please refer to 2009 Dec [5] (c) of Descriptive Questions on page no. 93 Chapter - 5 : Management of Foreign Exchange Transactions 2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes on the following : (ii) Declarations for export of goods and services (3 marks) Answer : Please refer to 2001 Dec [4] (c) of Descriptive Questions on page. no.125 2010 - Dec [3] (a) Distinguish between the following : (i) Foreign exchange and foreign security. (5 marks) (iii) Automatic route and approval route under the FDI policy. (5 marks) Answer : (i) Please refer to 2000 Dec [1] {C} (iv) of Short Notes on page. no.108 (iii) Automatic route and approval route under the FDI policy Basis Automatic Route Approval Route Meaning As the name suggest automatic route comes those cases wherein the foreign investment does not calls for obtaining any permission/approval from Government of India. Approval route on the other hand takes into account those cases wherein consents of FIPB i.e. Foreign Investment Promotion Board is to taken

Example

Foreign investment in case of mining Areas of Defence and exploration

2010 - Dec [4] (a) With reference to the relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder, advise on the following: (i) Shyam, an Indian businessman, is interested in remitting US $8,000 for purchase of trade mark/franchise in India. (ii) Suresh, a person resident in India, desires to take a life insurance policy from a foreign insurance company, the yearly premium of which is US $25,000. (iii) Desire Ltd., a company incorporated outside India, wants to buy shares up to 10% of paid-up capital of an Indian company engaged in infrastructure development. (iv) Aadarsh Ltd., an Indian company, wants to issue FCCBs for the purpose of investing in the stock market. (v) An Indian company engaged in software business intends to adjust the value of its exports towards the value of imported items. (1 mark each)

Appendix CS Executive Programme Module-II Paper 5

Answer : (i) Yes Shyam is permitted to remit US $ 8000 for purchasing of trade mark/franchisee. Please refer to 2007 June (4) (a) (iv) of practical Questions on page. no.136 (ii) Yes, Suresh can take a life insurance policy from foreign insurance company, the yearly premium of which is US $ 25,000. Please refer to 2008 Dec [4] (a) (ii) of Practical Question on page no.103 (iii) Y Subject to compliance of specified conditions, 100% FDI is permitted in case of infrastructure development companies. (iv) No, Adarsh Ltd. which is an Indian company cannot issue FCCBs for the purpose of investing the same in the stock market. Y Pleaser refer to 2007 Dec [4] (a) (ii) of Practical Questions on page. no.137 Y However, investing the funds in the stock market is restricted. (v) Y Indian company engaged in software business can adjust the value of its exports towards the value of imported items. Y The Indian company shall be required to obtain prior permission of RBI 2010 - Dec [5] (b) What are the exemptions to the prohibition of acceptance of foreign contribution under the Foreign Contribution (Regulation) Act, 1976 ? (5 marks) Answer : Please refer to 2008 - Dec [4] (b) of Descriptive Questions on page no.102 Chapter - 6 : Pollution Control and Environmental Protection 2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes on the following : (iii) Standards for emission of environmental pollutants (3 marks) Answer : Please refer to 2001 June (7) (iii) of Descriptive Questions on page. no.154 Y Section 7 of environmental protection Act, 1986 prohibits discharge of pollutants in excess of prescribed standards. Y The aforementioned standards for emission have been prescribed by virtue of schedule I to the environmental protection Rules 1986. Y Apart from these standards, the Central Board or State Board enjoy the power to provide for more stringent and vigilant standards than prescribed in schedule. 2010 - Dec [5] (c) Write a note on recent government initiatives to contain environmental pollution in the country. (5 marks) Answer : Please refer to 2009 June [5] (b) of Descriptive Questions on page. no.142

Chapter - 7 : Management of Intellectual Property Rights 2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes on the following :

Appendix CS Executive Programme Module-II Paper 5

(iv) Restoration of lapsed patents (3 marks) (v) Term of copyright (3 marks) Answer : (iv) Please refer to 2005 Dec (1) {C} (vi) of Short Notes on page. no. 175 (v) In case of copyright, the author of work of art or any other work in respect of which copyright exists, is granted an exclusive right to make copies or reproduce the subject matter for a certain period. Y The period or term of copyright is defined under section 22 to 29 of the copyright Act, 1957 Y The term of copyright can be expressed by means of the following table: S.no. 1. Copyright in relation to C C C C C C C C C Literary work Artistic work Dramatic work Musical work Anonymous work Photographs Cinematographic film Sound Recordings Government work Term of copyright Life of author +60 years more

2.

60 years from the end of year in which the work was first published

3.

C Broadcasts made by broadcasting organization

25 years from the end of the year in which the broadcast was first made

2010 - Dec [3] (a) Distinguish between the following : (ii) Trade mark and certification trade mark. (5 marks) Answer : Distinction between Trade mark and Certification Trade Mark The term Trade mark has been defined under Section 2(1)(zb) of the Trade Marks Act, 1999 as to mean a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one person from those of others and may include shape of goods, their packaging and combination of colours; and (i) A registered trade mark or a mark used in reiation to goods or services for the purpose of indicating or so as to indicate a connection in the course of trade between the goods or services, as the case may be, and some porson having the right as proprietor to use the mark; and (ii) In relation to other provisions of the Act, a mark used or proposed to be used in relation to goods or services for the purpose of indicating or so to indicate a connection in the course of trade between the goods or services, as the case may be, and some person having the right, either as proprietor or by way of permitted user, to use the mark

Appendix CS Executive Programme Module-II Paper 5

whether with or without any indication of the identity of that person, and includes a certification trade mark or collective mark. Certification Trade Mark : Section 2(1)(e) of the Trade Marks Act, 1999 defines the term certification trade mark as to mean a mark capable of distinguishing the goods or services in connection with which it is used in the course of trade which are certified by the proprietor of the mark in respect of origin, material, mode of manufacture of goods or performance of services, quality, accuracy or other characteristics from goods or services not so certified and registerable as such in respect of those goods or services in the name, as proprietor of the certification trade mark, of that person. Chapter - 8 : Prevention of Money Laundering 2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes on the following : (vi) Process of money laundering (3 marks) Answer : Please refer to 2004 Dec [1] {C} (v) of Short Notes on page. no 209 2010 - Dec [5] (a) How is the property involved in money laundering dealt with under the Prevention of Money Laundering Act, 2002 ? (5 marks) Answer : Y Section 5 of the Prevention of Money Laundering Act 2002 deals with the provisions related to property involved in money laundering. Y It provides for the attachment of the property involved in money laundering. Y The Director or officer authorised by the director not below the position of deputy director is empowered to attach such property. Y He also enjoys the power of provisional attachment of the property in case the charge cannot be fully established. Y Provisional attachment will have effect for a period of not more than 150 days from the date of order. Chapter - 9 : Minimum Wages Act, 1948 2010 - Dec [6] Write notes on the following : (v) Procedure for fixing and revising minimum wages under the Minimum Wages Act, 1948. (5 marks) Answer : Please refer to Question no. 2 of topic not yet asked but equally important for examination of chapter 9 Minimum Wages Act, 1948 on page. no.215

Chapter - 10 : Payment of Bonus Act, 1965 2010 - Dec [8] Attempt the following stating relevant legal provisions and decided case law, if any :

Appendix CS Executive Programme Module-II Paper 5 (ii)

Growell Ltd. declared minimum bonus in an accounting year as there was no allocable surplus. However, the workmen claimed that the management was liable to pay higher amount of bonus in view of the terms of settlement entered into between the workmen and the management. Is the plea of the workmen tenable in law ? (4 marks) Answer : Y Yes, the plea of the workmen is tenable in lan. Y Though, the company Growell Ltd. has rightly declared minimum bonus in the accounting as there was no allocable surplus, yet have entered into settlement with the workmen for higher bonus which needs to be abide by. Chapter - 11 : Payment of Gratuity Act, 1972 2010 - Dec [6] Write notes on the following : (iii) Concept of continuous service under the Payment of Gratuity Act, 1972. (5 marks) Answer : Please refer to 2009 Dec [6] (i) of Short Notes on page no.227 2010 - Dec [8] Attempt the following stating relevant legal provisions and decided case law, if any : (i) Suresh retired on attaining the age of superannuation. After retirement, it was noticed that he had misappropriated travelling allowance drawn by him. The employer decided to deduct the misappropriated amount from the gratuity payable to him. Is the action of the employer legally tenable ? (4 marks) Answer : No the action of the employer is not legally tenable. Y The facts of the given case study show resemblance with that of Mathur Spinning Mills v/s D.C. of labour & others Y Since Suresh has retired and his services have ended, the employer is not competent to take any sort of disciplinary action against him. Y Thus, Suresh will be entitled to receive the amount of gratuity. Chapter - 12 : Employee;s Provident Fund Miscellaneous Provisions Act, 1952 2010 - Dec [8] Attempt the following stating relevant legal provisions and decided case law, if any : (v) Galaxy Hotels Ltd., located in Aurangabad (Maharashtra), is covered under the provisions of the Employees Provident Funds and Miscellaneous Provisions Act, 1952. Recently, it started a new restaurant in Belgaum (Karnataka) where 15 employees were employed. The provident fund authorities demanded contribution in respect of 15 employees in the new establishment contending that it is a part of Galaxy Hotels Ltd. Is the demand of provident fund authorities justified ? (4 marks) Answer : Y No, the demand of the provident fund authorities is not justified.

Appendix CS Executive Programme Module-II Paper 5 Y

It is of utmost necessity to ensure that whether there is any inter connection- some sort of common control and financial interlinkage between the branches/department so as to establish that it the part of parent organisation.

Chapter - 13 : Employees State Insurance Act, 1948 2010 - Dec [6] Write notes on the following : (iv) Employees Insurance Court constituted under the Employees State Insurance Act, 1948. (5 marks) Answer : Y Employees Insurance court (EIC) is constituted under section 74 of the employees State Insurance Act, 1948. Y State Government is empowered to notify the EIC in the official Gazette. Y The judge of such court should be eitherC Judicial officer or C Legal practitioner for at least 5 years. Y EIC needs to perform the function of both adjudicating disputes as well as determining the claims. Chapter - 14 : Workmens Compensation Act, 1923 2010 - Dec [6] Write notes on the following : (ii) The concept of compensation under the Workmens Compensation Act, 1923. (5 marks) Answer : Y Section 2(1)(c) of the Workmens Compensation Act, 1923 defines Compensation to mean. Y Schedule II & III provide for the diseases in relation to which the workmen is entitled to receive compensation. Y Compensation is to be paid by the employer when workman (as provided in schedule II) meets with an accident resulting in some disability (as specified in schedule III) Y The amount of compensation (calculated using factor specified in schedule IV) needs to be paid as soon as it falls due. 2010 - Dec [7] (a) Distinguish between the following : (ii) Partial disablement and total disablement under the Workmens Compensation Act, 1923. (5 marks) Answer : Please refer 2004-June [7] {C}(a) (ii) on page no.256 2010 - Dec [8] Attempt the following stating relevant legal provisions and decided case law, if any :

Appendix CS Executive Programme Module-II Paper 5 (vi)

Sajid lost his mental balance as a result of an injury by accident and committed suicide. Is the employer liable to pay compensation under the Workmens Compensation Act, 1923 ? (4 marks) Answer : Yes, the legal heir of Sajid will be entitled to receive compensation Y Suicide committed by Sajid was the result of the mental trauma that he suffered on account of injury. Y If the injury arises in course of employment, suicide taking place consequently will also be within the scope of employment. Y Thus, the employer will be liable to pay compensation under the Workmens Compensation Act, 1923. Chapter - 16 : Industrial Disputes Act, 1947 2010 - Dec [6] Write notes on the following : (vi) Unfair labour practices on the part of workmen and trade unions of workmen under the Industrial Disputes Act, 1947. (5 marks) Answer : Please refer to 2001 June [5] {C} (a) (b) of Descriptive Questions on page. no.278 2010 - Dec [7] (a) Distinguish between the following : (i) Award and settlement under the Industrial Disputes Act, 1947. (5 marks) Answer : Please refer to 2004 Dec [7] {C} (a) (ii) of Descriptive Question on page no.280 2010 - Dec [8] Attempt the following stating relevant legal provisions and decided case law, if any : (iii) Mohan has been working in a foundry for the last 20 years. Recently, it was found that he was suffering from diabetes. Based on that, the management terminated his services. Does the action of the management tantamount to retrenchment ? (4 marks) (vii) A copy of the memorandum of settlement was not despatched by the conciliation officer to the appropriate Government. Will the settlement be treated as invalid ? Give reasons. (4 marks) Answer : (iii) Mohan has been working in a foundry for the last 20 years. Y Yes, the action of the management tantamount to retrenchment. Y A person suffering from diabities cannot be regarded as unfit for the organization. Y Since there was no support for medical illness, the termination of services of Mohan amounts to retrenchment. (vii) Yes, the settlement will be treated as invalid. Y Section 12 of the Industrial Disputes Act, 1947 stipulates that the conciliation officer, needs to send report in relation to settlement of the dispute to the Appropriate Governments.

Appendix CS Executive Programme Module-II Paper 5 Y Y

Even in case the settlement has taken place without conciliation officer as an intermediary, the parties need to sent a copy of the same to the labour commissioner. Since the statutory requirement has not been fulfilled, the settlement shall be treated as invalid.

Chapter - 17 : Industrial Employment (Standing Orders) Act, 1946 2010 - Dec [7] (a) Distinguish between the following : (iii) Draft standing orders and certified standing orders under the Industrial Employment (Standing Orders) Act, 1946. (5 marks) Answer : Please refer 1999 Dec [3] (iv) on page. no.291 2010 - Dec [8] Attempt the following stating relevant legal provisions and decided case law, if any : (iv) Naresh, a workman abused his supervisor in a public place outside the factory premises, for having refused to sanction leave on compassionate grounds. On a complaint lodged by the supervisor, the management initiated disciplinary proceedings against Naresh for the act of misconduct. Naresh contended that his action did not amount to misconduct. Is his contention tenable ? (4 marks) Answer : Y The facts of the case are quite similar to that of BPL India Ltd. Y The contention of Naresh is not legally tenable. Y Even if there is act of breach of discipline outside the factory premises in a public place, the act shall be regarded as misconduct. Y The only requirement which needs to be fulfilled is that misconduct should be in relation to the job only. Chapter - 18 : Factories Act, 1948 2010 - Dec [6] Write notes on the following : (i) Provisions relating to hazardous processes under the Factories Act, 1948. (5 marks) Answer : Please refer 2009 - Dec [6] (iv) of Short Notes on page. no.300 Chapter - 19 : Objective Questions 2010 - Dec [2] State, with reasons in brief, whether the following statements are true or false. Attempt any five. (i) Small scale units are free from locational restrictions. (ii) A SEZ unit may opt out of the SEZ scheme at any time. (iii) The manufacture of items reserved for the small scale sector can also be taken up by nonsmall scale units. (iv) Patents are granted merely to enable the patentees to enjoy a monopoly for the importation of the patented article.

Appendix CS Executive Programme Module-II Paper 5 (v)

10

The jurisdiction of the State Consumer Disputes Redressal Commission is only appellate or revisional. (vi) Retail package includes a package for retail sales to ultimate consumers who may be institutional or industrial consumers. (3 marks each) Answer : (i) True. Y Small scale units are free from locational restrictions. Y Industrial undertakings other than small scale units need to abide by some sort of locational restrictions. Y For example, such units need to be located atleast 25 kilometers away from Standard Urban Area in case the population of the city is greater than 1 million. Y However SSI are outside the scope of such restriction (ii) True. Y A SEZ unit may opt out of the SEZ Scheme at any time Y However, the same calls for obtaining consent from the Development commission. Y Also, the SEZ unit will be required to pay off the excise duty as well as custom duty on finished good and imported items as the case may be. (iii) True. Y The manufacture of items reserved for small scale sector can also be taken up by non-small scale units. Y However the non-small scale units can do only after applying for industrial licence. Y Also they need to undertake an export obligation (iv) false. Y Patents are not granted with the objective to enable the patentees to enjoy a monopoly for the importation of the patented article. Y Section 83 of the Patents Act, 1970 also provides for the same. (v) False. Y The jurisdiction of the State Consumer Disputes Redressal Commission is not just appellate or revisional in nature. Y It also entertains original application from complainant. Y Wherein the value of goods and services exceed Rs 20 Lakh but is lesser than Rs 1 crore, State Consumer Redrssal Commission enjoys the territorial jurisdiction over them. (vi) False. Y Retail package is defined as per Rule 2b of Standards of weights and measures (packaged commodities) Rules, 1977. Y Retail package includes a package for retail sales to ultimate consumers only. Y It does not include institutional or industrial consumers. 2010 - Dec [3] (b) Re-write the following sentences after filling-in the blank spaces with appropriate word(s)/figure(s) :

Appendix CS Executive Programme Module-II Paper 5 (i) (ii)

11

The foreign trade policy allows export proceeds to be realised within_________months. The prior approval of RBI is necessary to make overseas donation exceeding US $_____ per remitter per annum. (iii) Essential commodity is a commodity specified in_________ to the Essential Commodities Act, 1955. (iv) The Consumer Disputes Redressal Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed, within _________year(s) from the date on which the cause of action has arisen. (v) Authorised person under the Foreign Exchange Management Act, 1999 includes an authorised dealer,_________, off-shore banking unit or any other person for the time being authorised to deal with foreign exchange or foreign security. (1 mark each) Answer : (i) The foreign trade policy allows export proceeds to be realised within twelve months. (ii) The prior approval of RBI is necessary to make overseas donation exceeding US$ 5,000 per remitter per annum. (iii) Essential commodity is a commodity specified in Schedule to the essential commodities Act, 1955. (iv) The Consumer Disputes Redressal Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed within two year (s) from the date on which the cause of action has arisen. (v) Authorised person under the Foreign Exchange Management Act 1999 includes an authorised dealer, money changes, off shore banking unit or any other person for the time being authorised to deal with foreign exchange or foreign security. 2010 - Dec [7] (b) Re-write the following sentences after filling-in the blank spaces with appropriate word(s)/figure(s) : (i) The ESI corporation to function efficiently has been provided with two wings namely_______ and Medical Benefit Council. (ii) A workman is not entitled to apply under the Workmens Compensation Act, 1923, if he seeks remedy for grant of compensation in a____________. (iii) The Contract Labour (Regulation and Abolition) Act, 1970 shall not apply to establishments in which work is of ___________. (iv) An arbitrator under the Industrial Disputes Act, 1947 includes an_____________. % and (v) The rate of contribution towards the Employees State Insurance Fund is ________ % of employees wages by the employers and employees respectively. (1mark each)

(c) Choose the most appropriate answer from the given options in respect of the following :

Appendix CS Executive Programme Module-II Paper 5 (i)

12

The employer of an establishment to which the Industrial Employment (Standing Orders) Act, 1946 applies shall submit to the certifying officer draft standing orders proposed by him for adoption in that establishment within (a) 6 Months (b) 4 Months (c) 30 Days (d) 2 Months. from the date on which the Act becomes applicable to the establishment. (ii) When a new manager is appointed for a factory, the occupier shall send to the Inspector of Factories a notice in writing within (a) 7 Days (b) 15 Days (c) 30 Days (d) 45 Days. (iii) Basic wages under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 does not include (a) Emoluments earned by an employee while on leave (b) Emoluments earned by an employee while on holiday with wages (c) The cash value of any food concession (d) Emoluments earned by an employee which are payable in cash. (iv) Dependent under the Employees State Insurance Act, 1948 does not mean any of the following relatives of a deceased insured person (a) A widowed mother (b) A widowed grand-mother (c) A widowed daughter-in-law (d) A widow. (v) An employee is entitled to receive bonus provided he has worked in an accounting year in the establishment for not less than (a) 30 Working days (b) One year (c) 6 Months (d) 8 Months. (1 mark each) Answer : (b)(i) The ESI corporation to function efficiently has been provided with two wings namely Standing Committee and Medical Benefit council. (ii) A workman is not entitled to apply the Workmens compensation Act, 1923, if he seeks remedy for grant of compensation in a civil court. (iii) The contract labour (Regulation and Abolition) Act, 1970 shall not apply to establishment in which work is of casual nature. (iv) An arbitrator under the Industrial Disputes Act, 1947 includes an Umpire.

Appendix CS Executive Programme Module-II Paper 5 (v) (c)(i) (ii) (iii) (iv) (v)

13

The rate of contribution towards the Employee's State Insurance Fund is 4.75% and 1.75% of employee's wages by the employers and employees respectively. (a) 6 Months (a) 7 Days (c) The cash value of any food concession (b) A widowed grand mother (a) 30 working days

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