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Chapter wise Content Plan

Subject: LEGAL ASPECT OF BUSINESS

Class & Semester: I SEM MBA Session No.:
Chapter introduction and Learning Objectives

Understand the nature of Business law, various sources of business law, about Indian
Constitution, Economic principles of the country.

Key Concepts

1.Law
2.Business Law
3.Indian constitution
4. Directive Principles of State Policy
Brief Theoretical Framework
( include main definitions and professional jargon introduced in the chapter)
LAW Definition
The system of rules which a particular country or community recognizes as regulating the
actions of its members and which it may enforce by the imposition of penalties.
Business Law
Business Law refers to the laws that apply to business entities, such as partnerships and
corporations.
Indian constitution
The Constitution of India is the supreme law of India. It lays down the framework defining
fundamental political principles, establishes the structure, procedures, powers, and duties
of government institutions, and sets out fundamental rights, directive principles, and the
duties of citizens.
Directive Principles of State Policy are guidelines to the central and state governments of
India, to be kept in mind while framing laws and policies.
Brief Theoretical Framework
Different types of laws in India
1) Constitutional and administrative law 2) Criminal law 3) Contract law 4) Labour law 5)
Tort law 6) Property law 7) Tax law 8) Trust law
Sources of business law in India
1. English Mercantile Law: Lex mercatoria is the Latin expression for a body of trading
principles used by the merchant throughout Europe in the medieval. Meaning literally law
merchant, it evolved as a system of customs and best practice, which was enforced
through a system of merchant courts along with main trade routes. It functioned as the
international law of commerce.
The English Mercantile law constitutes the foundation on which the superstructure of the
Indian Mercantile law has been built.
2. Statutory Law: Statutory law is written law set down by the legislature or other
governing authority such as the executive branch of the government in response to the
perceive need to clarify the functioning of the government, improve civil order to codify
existing law, or for an individual or company to obtain special treatment.
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In context to India, all laws are statutory i.e when Bill is passed by the Parliament and
signed by the President of India; it becomes an Act or a Statute. The bulk of Indian of
Indian Mercantile law is a statutory law.
3. Judicial Decisions: The past judicial decisions of courts are important sources of law.
Sometimes there is no statutory provision which can answer a legal question raised in a
law suit. In such cases the court will look into the previous court decisions on similar
matters to find the relevant law.
The precedents set by the higher courts have a binding force on lower courts and the
precedents set by the same courts of the same status like High Courts of different states
have persuasive value for each other.
4. Customs and Usages: Customs and usages of a trade play an important role in business
dealings of that trade.
Introduction about The I ndian constitution
The Indian constitution is the supreme law of India. It lays down the framework defining
fundamental political principles, establishes the structure, procedures, powers, and duties
of government institutions, and sets out fundamental rights, directive principles, and the
duties of citizen.
Dr. Bhimrao Ramji Ambedkar is widely regarded as the father of the Indian Constitution.

The Constitution follows parliamentary system of government and the executive is
directly accountable to legislature, came into effect on 26 January 1950.

One of the distinctive features of Indian Constitution is the inclusion of the Directive
Principles of State Policy or DPSPs. Borrowed from the Irish Constitution, the makers of
our Indian Constitution incorporated these principles in Part IV of the Constitution from
Art. 36 to Art. 51.
The Directive Principles are some affirmative instructions to the State authorities to secure
to all citizens justice- social, economic and political ; liberty of thought, expression, belief,
faith and worship; equality of status and opportunity; and to promote among them all
fraternity assuring the dignity of the individual and the unity and integrity of the nation .





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Classification of Directive principles
(i) Socialist and Economic Principles: The socialist and economic principles always
aim to shape our country in to a Welfare State. Art. 38(1) provides that the State shall
promote the welfare of the people by securing and protecting as it may a social order
in which justice social, economic, and political shall inform all the institutions of
national life. The State shall strive to minimize the inequalities in income and try to
eliminate inequalities in status, facilities and opportunities among individuals and
groups engaged in different vocations within the country (Art.38-2). Thus promotion
of welfare of people by securing a social order where justice shall prevail is the
objective of our constitution. To ensure such objectives the State shall direct its policy
in securing-
adequate means of livelihood for all citizen irrespective of men and women equally ;
equal distribution of wealth and resources among all classes ;
equal pay for equal work for both men and women ;
just and humane conditions of work, a decent standard of living , full employment,
leisure and social and cultural opportunities;
participation of workers in the management of undertakings and establishments ;
protection of children, youth against exploitation and against moral and material
abandonment. The forty-two amendment altered this provision and provides that
children are given opportunities and facilities to develop in a healthy manner and in
conditions of freedom and dignity and that childhood and youth are protected against
moral and material abandonment;
Provision of work and compulsory education for all people, relief in case of
unemployment, old age, sickness and disability and other cases of undeserved want ;
equality of opportunity and status for all individuals ;
level of nutrition and standard of living of the people ;
public health and enforce prohibition of consumption of intoxicating drinks and
drugs;
environment safeguarding forest and wild life of the country ;
a uniform civil code throughout the country ;
protection of adult and child labour.
(ii) Gandhian Principles: Principles enjoined under Gandhian principles in
Article 40, Article 43, Article 47 and Article 48 are some ideals of Mahatma
Gandhi followed during his life time. Our constitution framers wanted to
implement these ideals to fulfill his dream. The State shall take steps-

To Organize Village Panchayats And Endow Them Power And Authority To Enable
Them To Function As Unit Of Self-Government. ;
To Promote Cottage Industries And Village Industries On An Individual Or Co-
Operative Basis In Rural Areas ;
To Prohibit Consumption Of Intoxicating And Injurious Drinks And Drugs;
To Promote Educational And Economic Interests Of The Weaker Sections Of The
People Particularly SCs, STs to establish social justice and equity ;
to organize agricultural and animal husbandry on modern and scientific lines ;
to prohibit the slaughter of cows and other useful cattle ;
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to protect and improve environment and safeguard the forests and wild life of the
country ;
to protect, preserve and maintain places of national historical importance ;
to separate the judiciary from the executive.
(iii) International Principles: Principles enjoined in Art. 51 under international
principles are some provisions to the State relating to ensure international peace and
security. The State shall attempt
to promote international peace and security ;
to maintain just and honorable relations between nations ;
to foster respect for international law and treaty obligation ;
to encourage settlement of international disputes by arbitration.
There are Twelve Schedules to the Constitution.
Seventh Schedule (under Article 246) gives three Lists : 1. Union List contains 97
subjects in which the Union government has exclusive authority;
2. State List contains 66 subjects which are under the exclusive authority of State
governments;
3. Concurrent List contains 47 subjects, where the Union and States have concurrent
powers
Class activity/Assignments: (Details)
Conceptual Focus based:
1. . Which Constitution is in the written form for the first time by an elected body
during the Modern period
(A) India
(B) America
(C) Britain
(D) France
2. . Who was the first Prime Minister at the time of evolution of the Indian
Constituent Assembly
(A) Moti Lal Nehru
(B) Sardar Ballabh Bhai Patal
(C) Jawahar Lal Nehru
(D) H. N. Kunzru
3. Who supported the views of the Constituent Assembly for making the Indian
Constitution
(A) Sardar Patel
(B) Gandhiji
(C) Jinnah
(D) None of the above
4. Which song was sang in the Constituent Assembly before its Adjournment
sine die
(A) Jana Gana Man
(B) Vande Matram
(C) A & B
(D) None of the above
5. For how many years, months and days, did the Constituent Assembly work on
the Constitution of India
(A) 2 Years, 11 months and 19 Days
(B) 3 Years, 12 months and 16 Days
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(C) 4 Years, 18 months and 6 Days
(D) None of the above
6.
Who prepared the first draft Constitution of India
(A) Jawahar Lal Nehru
(B) Gandhiji
(C) Advisory Branch of the Constituent Assembly
(D) Sardar Ballabh Bhai Patel
7. . Who was the Chairman of the Draft Committee of the Constituent
Assembly
(A) Dr. B. R. Ambedkar
(B) K. M. Munshi
(C) Jagjivan Ram
(D) None of the above

Conceptual Reasoning based:
o Distinguish between written &un written constitution
o Distinguish Law& Business Law
o Distinguish between Directive principles &human rights

Conceptual Application based:


attached


























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CHAPTER-2 THE INFORMATION TECHNOLOGY ACT

THE COMPETITION ACT-2002
THE RIGHT TO INFORMATION ACT,2005
Chapter introduction and Learning Objectives
Importance of information technology, digital signature, different types of cyber
crimes, how to control these crimes, what will be the penalty for these crimes
according to the act.
Essentials of competition according to the act, role of competition commission
offences &penalties
Explaining about how to get information from public authorities, procedure to get
the information, non discloser of information(limitations),offences &penalties
Key Concepts
1. E-commerce
2. E-Governance
3. Digital signature
4. Cyber crimes
5. Public authority
6. Competition commission
7. CPIO
Brief Theoretical Framework
Electronic commerce, commonly known as e-commerce or eCommerce, is a type
of industry where the buying and selling of products or services is conducted over
electronic systems such as the Internet and other computer network
E-governance means the application of ICT(Information & Communication Technology)
to transform the efficiency, effectiveness, transparency and accountability of exchange of
information and transaction:
1. between Governments,
2. between Government agencies,
3. between Government and Citizens
4. between Government and businesses
Digital signature is an electronic signature that can be used to authenticate the
identity of the sender of a message or the signer of a document, and possibly to ensure that
the original content of the message or document that has been sent is unchanged.

Computer crime, or Cyber crime, refers to any crime that involves a computer and a
network
List of cyber crimes according to IT Act 2000

Cyber crimes can involve criminal activities that are traditional in nature, such as
theft, fraud, forgery, defamation and mischief, all of which are subject to the Indian
Penal Code. The abuse of computers has also given birth to a gamut of new age
crimes that are addressed by the Information Technology Act, 2000.
We can categorize Cyber crimes in two ways

The Computer as a Target :-using a computer to attack other computers.
e.g. Hacking, Virus/Worm attacks, DOS attack etc.
The computer as a weapon :-using a computer to commit real world crimes.
e.g. Cyber Terrorism, IPR violations, Credit card frauds, EFT frauds, Pornography etc.

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Cyber Crime regulated by Cyber Laws or Internet Laws.
Technical Aspects

Technological advancements have created new possibilities for criminal activity, in particular the
criminal misuse of information technologies such as
a. Unauthorized access & Hacking:-
Access means gaining entry into, instructing or communicating with the logical, arithmetical, or
memory function resources of a computer, computer system or computer network.
Unauthorized access would therefore mean any kind of access without the permission of either the
rightful owner or the person in charge of a computer, computer system or computer network.
Every act committed towards breaking into a computer and/or network is hacking. Hackers write or
use ready-made computer programs to attack the target computer. They possess the desire to
destruct and they get the kick out of such destruction. Some hackers hack for personal monetary
gains, such as to stealing the credit card information, transferring money from various bank
accounts to their own account followed by withdrawal of money.
By hacking web server taking control on another persons website called as web hijacking
b. Trojan Attack:-
The program that act like something useful but do the things that are quiet damping. The programs
of this kind are called as Trojans.
The name Trojan Horse is popular.
Trojans come in two parts, a Client part and a Server part. When the victim (unknowingly) runs the
server on its machine, the attacker will then use the Client to connect to the Server and start using
the trojan.
TCP/IP protocol is the usual protocol type used for communications, but some functions of the
trojans use the UDP protocol as well.
c. Virus and Worm attack:-
A program that has capability to infect other programs and make copies of itself and spread into
other programs is called virus.
Programs that multiply like viruses but spread from computer to computer are called as worms.
d. E-mail & IRC related crimes:-
1. Email spoofing
Email spoofing refers to email that appears to have been originated from one source when it was
actually sent from another source. Please Read
2. Email Spamming
Email "spamming" refers to sending email to thousands and thousands of users - similar to a chain
letter.
3 Sending malicious codes through email
E-mails are used to send viruses, Trojans etc through emails as an attachment or by sending a link
of website which on visiting downloads malicious code.
4. Email bombing
E-mail "bombing" is characterized by abusers repeatedly sending an identical email message to a
particular address.
5. Sending threatening emails
6. Defamatory emails
7. Email frauds
8. IRC related
Three main ways to attack IRC are: "verbal8218;?#8220; attacks, clone attacks, and flood
attacks.
e. Denial of Service attacks:-
Flooding a computer resource with more requests than it can handle. This causes the resource to
crash thereby denying access of service to authorized users.
Examples include
attempts to "flood" a network, thereby preventing legitimate network traffic
attempts to disrupt connections between two machines, thereby preventing access to a service
attempts to prevent a particular individual from accessing a service
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attempts to disrupt service to a specific system or person.
Public authority is any authority or body or institution of self government established or
constituted by or under the Constitution; or by any other law made by the Parliament or a
State Legislature; or by notification issued or order made by the Central Government or a
State Government. Bodies owned, controlled or substantially financed by the Central
Government substantially financed by the Central Government or State Government also
fall within the definition of public authority.

Competition Commission of India is a body of the Government of India responsible for
enforcing The Competition Act, 2002 throughout India and to prevent activities that have
an adverse effect on competition in India.

The Central Public Information Officer (CPIO) of a public authority plays a pivotal role
in making the right of a citizen to information a reality.
Brief Theoretical Framework
Information technology is one of the important law relating to Indian cyber laws. It had
passed in Indian parliament in 2000. This act is helpful to promote business with the help
of internet. It also set of rules and regulations which apply on any electronic business
transaction.
Due to increasing crime in cyber space, Govt. of India understood the problems of internet
user and for safeguarding the interest of internet users, this act was made. The following
are its main objectives and scope:-
1. It is objective of I.T. Act 2000 to give legal recognition to any transaction which is done
by electronic way or use of internet.
2. To give legal recognition to digital signature for accepting any agreement via computer.
3. To provide facility of filling document online relating to school admission or
registration in employment exchange.
4. According to I.T. Act 2000, any company can store their data in electronic storage.
5. To stop computer crime and protect privacy of internet users.
6. To give legal recognition for keeping books of accounts by bankers and other companies
in electronic form.
7. To make more power to IPO, RBI and Indian Evidence act for restricting electronic
crime.
Scope
Every electronic information is under the scope of I.T. Act 2000 but following electronic
transaction is not under I.T. Act 2000
1. Information technology act 2000 is not applicable on the attestation for creating trust via
electronic way. Physical attestation is must.
2. I.T. Act 2000 is not applicable on the attestation for making will of any body. Physical
attestation by two witnesses is must.
3. A contract of sale of any immovable property.
4. Attestation for giving power of attorney of property is not possible via electronic record.
Highlights the main chapters of I.T. Act 2000 or its main provisions:-
There are 13 chapters in law and all provision is included in this chapters.
1. Chapter II
Any contract which is done by subscriber. If he signs the electronic agreement by digital
signature. Then it will be valid.
In case bank, the verification of digital signature can be on the basis of key pair.
2. Chapter III
This chapter explains the detail that all electronic records of govt. are acceptable unless
any other law has any rules regarding written or printed record.
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3. Chapter IV
This chapter deals with receipts or acknowledgement of any electronic record. Every
electronic record has any proof that is called receipt and it should be in the hand who
records electronic way.
4. Chapter V
This chapter powers to organization for securing the electronic records and secure digital
signature. They can secure by applying any new verification system.
5. Chapter VI
This chapter states that govt. of India will appoint controller of certifying authorities and
he will control all activities of certifying authorities.
Certifying authority is that authority who issues digital signature certificate.
6. Chapter VII

In this chapter powers and duties of certifying authority is given. Certifying authority will
issue digital signature certification after getting Rs. 25000. If it is against public interest,
then C.A. can suspend the digital signature certificate.
7. Chapter VIII
This chapter tells about the duties of subscribers regarding digital signature certificate . It
is the duty of subscriber to accept that all information in digital signature certificate that is
within his knowledge is true .
8. Chapter IX
If any body or group of body damages the computers , computer systems and computer
networks by electronic hacking , then they are responsible to pay penalty upto Rs. 1 crore .
Fore judgment this , govt. can appoint adjucating officer .
9. Chapter X
Under this chapter, cyber regulation appellate tribunal can be established. It will solve the
cases relating to orders of adjudicating officers.
10. Chapter XI
For controlling cyber Crime, Govt. can appoint cyber regulation advisory committee who
will check all cyber crime relating to publishing others information. If any fault is done by
anybody, he will be responsible for paying Rs. 2 lakhs or he can get punishment of 3 years
living in jail or both prison and penalty can be given to cyber criminal.
11. Chapter XII
Police officers have also power to investigate dangerous cyber crime under IPC 1860 ,
Indian Evidence Act 1872 and RBI Act 1934 .
I.T. Act 2000
Advantages of I.T. Act 2000
1. Helpful to promote e-commerce
Email is valid
Digital signature is valid.
Payment via credit card is valid.
Online contract is valid
Above all things validity in eye of Indian law is very necessary. After making IT act 2000 ,
all above things are valid and these things are very helpful to promote e-commerce in India
.2. Enhance the corporate business
After issuing digital signature, certificate by Certifying authority, now Indian corporate
business can enhance.
3. Filling online forms :-
After providing facility, filling online forms for different purposes has become so easy.
4. High penalty for cyber crime
Law has power to penalize for doing any cyber crime. After making of this law, nos. of
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cyber crime has reduced.
Shortcoming of I.T. Act 2000
1. Infringement of copyright has not been included in this law.
2. No protection for domain names.
3. The act is not applicable on the power of attorney, trusts and will.
4. Act is silent on taxation.
5. No, provision of payment of stamp duty on electronic documents.
Types of Cyber Crimes
Hacking: This is a type of crime wherein a persons computer is broken into so that his
personal or sensitive information can be accessed.
Theft: This crime occurs when a person violates copyrights and downloads music, movies,
games and software.

Cyber Stalking: This is a kind of online harassment wherein the victim is subjected to a
barrage of online messages and emails.
Identity Theft: This has become a major problem with people using the Internet for cash
transactions and banking services. In this cyber crime, a criminal accesses data about a
persons bank account, credit cards, Social Security, debit card and other sensitive
information to siphon money or to buy things online in the victims name. It can result in
major financial losses for the victim and even spoil the victims credit history.
Malicious Software: These are Internet-based software or programs that are used to
disrupt a network.
Child soliciting and Abuse: This is also a type of cyber crime wherein criminals solicit
minors via chat rooms for the purpose of child pornography.

RIGHT TO INFORMATION ACT
What is Information
Information is any material in any from. If includes records, documents, memos, e-mails,
opinions, advices, press releases, circulars, orders, logbooks, contracts, reports, papers,
samples, models, data material held in any electronic from. It also includes information
relating to any private body which can be accessed by the public authority under any law
for the time being in force.
Applicability
The Act applies both to Central and State Governments and all public authorities. A public
authority (sec. 2(h)) which is bound to furnish information means any authority or body or
institution of self-government established or constituted (a) by or under the Constitution,
(b) by any other law made by Parliament, (c) by any other law made by State Legislature,
(d) by a notification issued or order made by the appropriate Government and includes any
(i) body owned, controlled or substantially financed, (ii) non-government organization
substantially financed - which, in clauses (a) to (d) are all, directly or indirectly funded by
the appropriate Government.
Definition: Information
The Act defines information in sec. 2(f) as any material in any form, including the records,
documents, memos, e-mails, opinions, advices, press releases, circulars, orders, log books,
contracts, reports, papers, samples, models, data material held in any electronic form and
information relating to any private body which can be accessed by a public authority under
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any law for the time being in force. Sec. 2(i) defines the word record as including (a) any
document, manuscript and file, (b) any microfilm, microfiche and facsimile copy of a
document, (c) any reproduction of image or images embodied in such microfilm and (d)
any other material produced by a computer or any other device.
Definition: Right to Information
The right to information is defined in sec. 2(j) as a right to information accessible under the
Act which is held by or under the control of any public authority and includes a right to (i)
inspection of work, documents, records, (ii) taking notes, extracts or certified copies of
documents or records, (iii) taking separate samples of material, (iv) obtaining information
in the form of diskettes, floppies, tapes, video cassettes or in any other electronic mode or
through printouts where such information is stored in a computer or in any other device
Right to Information under the Act
1. A citizen has a right to seek such information from a public authority which is held
by the public authority or which is held under its control. This right includes
inspection of work, documents and records; taking notes, extracts or certified
copies of documents or records; and taking certified samples of material held by the
public authority or held under the control of the public authority.
2. The Act gives the citizens a right to information at par with he Members of
Parliament and the Members of States Legislatures. According to the Act, the
information which cannot be denied to the Parliament or a State Legislature, shall
not be denied to any person.
3. A citizen has a right to obtain an information in the from of diskettes, floppies,
tapes, video cassettes or in any other electronic mode or though print -outs
provided such information is already stored in a computer or in any other device
from which the information may be transferred to diskettes etc.
4. The information to the applicant should ordinarily be provided in the from in which
it is sought. However, if the supply of information sought in a particular from
would disproportionately divert the resources of the public authority or may cause
harm to the safety or preservation of the records, supply of information in the that
form may be denied.
5. The Act gives the right to information only to the citizen of India. It dose not make
provision for giving information to Corporations, Associations, Companies etc.
which are legal entities/persons, but not citizens. However, if an application is
made by employee or office- bearer of any Corporation, Association, Company,
NGO etc. indicating his name and such employee/office bearer is a citizen of India,
information may be supplied to him/her. In such cases, it would be presumed that a
citizen has sought information at the address of the Corporation etc.
6. Only such information is requires to be supplied under the Act which already exists
and is held by the public authority or held under the control of the public authority.
The CPIO is not supposed to create information; or to interpret information; or to
solve the problems raised by the applicants; or to furnish replies to hypothetical
questions.
All of India's right to information laws contained exemptions provisions. In the Central
Act, section 8(1) lists all of the exemptions. Below is a general discussion of the
exemption provisions:
National Security or Sovereignty: As explained above, there is some information,
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which relates to India's national security, which could genuinely cause harm if it
was released to the public. For example, information published during a conflict,
detailing the number of soldiers defending a boundary, where they were positioned
or their strategic plans. However, it would not be appropriate to use this exemption
simply to keep a contract for the purchase of an air force fighter jet secret. This is
common commercial information which should be made public to reduce the
likelihood of corruption tainting the procurement process, and should not be
withheld simply because it relates to defence.
National Economic Interests: Disclosure of information about currency or
exchange rates, interest rates, taxes, the regulation or supervision of banking,
insurance and other financial institutions, proposals for expenditure or borrowing
and foreign investment could in some cases harm the national economy,
particularly if released prematurely. However, lower level economic and financial
information, like contracts and departmental budgets should not be withheld under
this exemption.
Relations with Foreign States: The relationship between countries can often be
sensitive, such that candid assessments and analysis of other countries' behaviour
and policies could easily offend and in so doing, damage India's own international
interests. However, this exemption should not be used simply to hide political deals
between players, which are not in the public interest and can never justify non-
disclosure of information which discloses a breach of national law.
Law Enforcement and the Judicial Process: While an investigation is underway,
there may be information which needs to be protected, for example, witnesses
identities or the case being put together against a suspect. If released, the case could
be jeopardized. Likewise, while a case is underway, information may need to be
kept secret. Notably, the discussions between a lawyer and their client will almost
always be kept secret, even if the lawyer is the Attorney-General and the client is
the Government. These exemptions should not be used though, to protect police
and judicial officers from having their own conduct scrutinized, particularly if a
victim is seeking information about whether their case is being/has been properly
handled.
Cabinet and Other Decision-Making Documents: Cabinet papers, including
records of deliberations of the Council of Ministers, Secretaries and other offices,
are excluded, but once a decision is made, the reasons for the decisions and the
documents which were used to make the decision should then be disclosed to the
public. This is important because it means that during the decision-making process
there is a level of confidentiality, but once a decision is made the public has a right
to access relevant information so that they can better understand the policy-making
process.
Trade Secrets and Commercial Confidentiality: Some information held by many
private companies should be open to the public, for example, where that
information relates to the provision of a public service or is necessary for the
exercise or protection of a right. However, it is already recognised in law that
companies should be able to protect their trade secrets. Care should also be taken to
minimize the harm caused to a company's competitive commercial interests when
disclosing information, for example, by not publishing tender submissions during a
tender process. However, this exemption should not be used to block the release of
contracts with private bodies who are providing public services.
Individual Safety: Obviously, information should not be disclosure where
publication would be likely to put an individual's safety or liberty at risk. For
example, the identity of people who "blow the whistle" on corruption inside their
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organisation should be protected, because otherwise they may be targeted for
discrimination or even violence.
Personal Privacy: There is considerable information about individuals which is
held by the government. The right to privacy requires that the government should
try to protect this information from public disclosure, unless there is some
overriding need for it to be disclosed. For example, my next door neighbour should
not be able to access my medical records just because they are held by a
government hospital. Notably though, public officials should not be able to use this
exemption to protect their own conduct in their official capacity from scrutiny.
Thus, information about public service transfers and appointments can be
disclosed.
It is extremely positive that the Central Act makes all of the exemptions contained in
section 8(1) subject to a "Public Interest Override" (see section 8(2) of the Central Act).
What this means is that even where requested information is covered by an exemption,
the information should still be disclosed to the applicant if the public interest in the
specific case requires it. When applying this test, three questions should be asked by
officials:
1. Is the information covered by a legitimate exemption? - the PIO should tell you in
the notice responding to your application what the exemption is.
2. Will disclosure cause substantial harm?
3. Is the likely harm greater than the public interest in disclosure?
Competition Act 2002
Competition Act 2002 which further amended by amendment act 2007 and 2009, the
modified. It is business law which control the fair competition in the market. This law
prohibits the practice of price fixing among market players which it termed as enterprise.
This law ensure that a dominant player should not abuse its dominant position in the
market . It dis allow all the agreements with a are anticompetitive in nature. This law
constitutes a statutory body competition commission of india (CCI) which is fully
functional from May 2009. CCI has vide powers to enter into the matters of the Act even
without any application to it. This act is directly affect to the top management of the
company. It assume that the pricing and trade associations are in knowledge of top
management. It lays down heavy penalty of the offense under this act. Appellate tribunal
is constituted to file appeal against the order of competition commission.
Components of competition laws:
Anti-competitive agreement: Section 3 of The Competition Act 2002 deals with the anti-
competitive agreements.
An agreement which adversely effect the competition. It includes but not limited to: -
1. Agreement which limit the production.
2. Agreement which limit the supply.
3. Agreement to allocate market.
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4. Agreement to fix prices.
5. Agreement to collusive bidding.
6. Conditional purchase (Or tie-in-agreements)
7. Refusal to deal.
8. Exclusive supply agreement.
9. Exclusive distribution agreement.
10. Condition sale agreement to by second products as well compulsorily.
Following are not an Anti competitive agreements:
1. Agreement to Protect IPRs. Viz trademark, copyright or patent.
2. Agreement to protect geographical indications.
3. Agreement to Design Act.
4. Agreement to lay out designs for Act 2000.
5. Agreement to export goods (with certain conditions).
Types of agreement : Competition law indentifies two type of agreement. First
Horizontal agreements which are among the enterprises who are or may compete within
same business. Second is the vertical agreement which are among independent enterprise.
Horizontal agreement is presumed to be illegal agreement but rule of reasons would be
applicable for vertical agreements.
Abuse of Dominant Position:
1. It is the misuse of an advantageous position by an enterprise to gain extra benefits but
which resultantly damage the consumer interest and make it difficult other players to
compete.
2. Section 4 of Competition Act deals with abuse of dominant position.
It includes:- 3. Imposition of unjust conditions.
4. Imposition of unfair pricing.
5. Predatory pricing.
6. Create hindrance in entry of new operators.
7. Abuse of market positing.
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Predatory Pricing:
Predatory pricing is some thing called pricing below then the cost of the product. The
objective of pricing to elemenate the competition and then create dominant position in the
market and put the price so high to recover the earlier losses. It is sort of abuse of dominant
position. There are some methods in economics to establish that whether a pricing is
predatory pricing or not. Once the predatory pricing is fixed then the CCI can pass a order
that enterprise has abuse its dominant position in contravention of the competition act and
pass the penal order for it.
Combination under Competition Act.:
Combination is legal concept of analyzing the merger, acquisition, acquisition of an
enterprise by a person having shares/ right to vote with the completion business enterprise.
There are threshold limits are defined viz 1500 Cr. For individuals in India. If such
combination, merger amalgamation create adverse impact on competition or consumers at
large then such combination it is prohibited by the competition law of India.
Notification: The desiring firm shall notify it is approval for combination to CCI within
30 days of such board resolution. CCI shall pass the order within 210 to give effect to such
combination else it will deemed as approved after 210 days. In case such combination is
not notified to CCI then CCI shall have powers to inquiry such combination within 1 years
of merger. Notification is pre-requisite else there will be risk from legal behavioral aspect
and may attract investigation and objection.
Cartel:
Cartel is the group of enterprises which collectively make some agreement which
adversely effect the competition. The agreement between the cartel may be explicit or
implicit. But it is restricted by the competition law due the reasons of artificial price hike,
collusive bidding, competition law presumes the Cartel as injurious to competition. CCI
has vide power to take the cartel in their cognizance and refer it to director general for
investigation. It further provides the penalty provision upto three times of yearly profit to
the offenders.
Bid rigging:
Competition law provides on more legal concept and that is Bid rigging. This terms used
for any manipulation, conspiracy, infiltration etc which adversely affect the biding. Any
agreement or consent among the prospective bidder which affect the bidding process and
causes or likely to cause losses to the purchaser, is termed as bid rigging. Competition law
prohibits bid rigging and lays down provisions for penalty for such practices.
Rule of reasons: It is the analysis of any activity under the challenge on the basis of
business justification, competitive intent, market impact, impact on competition and on
consumer. It is the logic behind the conclusion for any order.
Market Power: It is the power to control market pricing and restrict competition.
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Competition Advocacy:
Competition advocacy is one of the most significant feature in the Act. It is the obligation
of commission to create the awareness about the competition laws through non-
enforcement measures. It also includes training programs, seminar, educational workshops.
Competition Commission of India
Competition Commission of India is a body of the Government of India responsible for
enforcing The Competition Act, 2002 throughout India and to prevent activities that have
an adverse effect on competition in India.
CCI consists of a Chairperson and 6 Members appointed by the Central Government.
It is the duty of the Commission to eliminate practices having adverse effect on
competition, promote and sustain competition, protect the interests of consumers and
ensure freedom of trade in the markets of India. The Commission is also required to give
opinion on competition issues on a reference received from a statutory authority
established under any law and to undertake competition advocacy, create public awareness.
Andalso
1. Make the markets work for the benefit and welfare of consumers.
2. Ensure fair and healthy competition in economic activities in the country for faster and
inclusive growth and development of economy.
3. Implement competition policies with an aim to effectuate the most efficient utilization of
economic.resources.
4. Develop and nurture effective relations and interactions with sectoral regulators to
ensure smooth alignment of sectoral regulatory laws in tandem with the competition law.
About Fines & Penalty: The competition laws lays down heavy penalty of 10% of total
turn over of preceding three years if any enterprises act or infringe the provision of
competition act.
Conceptual Focus based:
1.IT Act
(a)2000 (b)2001 (c)2002
2. PIO Stands for
(a) public information officer
(b) public inspection officer
3.Example where IT act does not applicable
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4. Example where RTI not disclose of the information
5.Which is not cyber crime
(a)Hacing (b)Firewalls (c)Theft (d)Cyber Stalking.
6.CCI stands for
(a) Competitive commission of India
(b) Competitive counsil of India
7.Who cant get information under RTI?
8.Cartel comes under
(a)ITA (b)RTI (c)Competition act
Conceptual Application based:
Attached
LEGAL ASPECTS OF BUSINESS
MODULE I
2 Marks Questions
1. Explain the term legal aspects of business law?
2. What is the nature of business law?
3. Explain the term Preamble.
4. What is Fundamental rights of Constitution?
5. Explain the term directive principles of government policy
6. What are the basic sources of business law?
7. What are the objectives of legal system?
8. What are the requirements of effective legal system?
9. Explain the term judicial precedents
10. What is stated in articles 246 of Indian constitution?
11. State Economic principles enshrined in the constitution
12. What is meant by Fundamental Duties?
13. Explain the term Constitutional Environment of business
14. What do you mean by rationale of states influence?
15. What are the elements covered under 7
th
Schedule of Indian constitution?
8 Marks Questions
1. Differentiate b/w Law and Society
2. What are the Objects of Law?
3. What are the Problems of the Legal Systems?
4. What are the Aspects Covered under Administrative Tribunals?

15 Marks Questions
1. Explain in details the Directives Principles of State.
2. What are the Various Sources of Business Law?
3. What are the salient features of Indian Constitution?
4. Explain in details the Internal and External Aids of Interpretation
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MODULE II
2 Marks Questions
1. Define Access
2. Define Appropriate Government?
3. Define Asymmetric Crypto System
4. Define Signature?
5. Explain the term E-Governance