ASSIGNMENT

Name

Roll No.

Course MBA-Semester-3
Legal Aspects of
Subject
Business
Subject Code MB0035-Set-1
1.All contract are agreements, but all agreements are not contract-
Discuss:

A contract is an agreement between parties that is legally enforceable.

A simple "agreement" is an arrangement between the parties which may or
may not contain the necessary elements to be enforceable before a court of
law.
In Simple Words:
A Contract is enforceable by law while an Agreement is not enforceable by
law.

A valid contract must contain the ten valid elements which are:

· Offer and Acceptance

· Intention to Create Legal Relations

· Lawful Consideration

. Capacity of Parties

· Free Consent

. Lawful Object

· Writing and Registration

· Certainty

· Possibility of Performance

. Not Expressly Declared Void

Agreement is emerged from willingness of both parties to do or not to do

something. As no legal obligation is required here so just any two parties can
mutually dispute on any matter. Agreement is emerged this way.

But all true contracts begin with an agreement.

An agreement may be legal or illegal. As it is not bound by the law it needs
not to follow the rules.

On the other hand only legally enforceable agreement is contract. So it can

never be illegal.

Agreement may be against of human rights. It will create no problem

because the parties will not seek help from the law.

A contract can never be against of human rights.

Purpose of an agreement can be illegal.

But purpose of a contract can never be illegal.

An agreement can be with an impossible matter. As it is not banded by the

law people can make agreement on any matter.

Contract cannot be with any impossible matter.

Agreement between two parties does not create any legal obligation or
relationship.

As contract is enforceable by law its obvious purpose is to create a lawful

relationship.
An agreement may be expressed or implied.

But a contract must be expressed and clear that no ambiguity can occur.

An agreement is not dependent on contract.

But a contract is dependent on any agreement.

There is no obligation to write or register an agreement.

Each and every contract must be written and registered.

Any two parties can make an agreement.

But the parties of contract must be capable of contracting.

Thus, All agreements are not contract and All contracts are agreement.

2. Not all persons have the capacity to enter into a contract-Discuss

the statement

The legal ability of people or organizations to enter into a valid contract. A

person entering into a contract will have full, limited, or no capacity to
contract.

Full capacity to contract:

The unlimited ability of a person to enter into a contract that is legally
binding. Most adults, including those who are illiterate, have full capacity to
contract and are said to be competent parties.

Limited capacity to contract:

The ability of a person to enter into a contract that is legally binding upon
himself or herself only under certain circumstances. For example, minors
have limited ability to contract, which means that the contract of a minor is
valid only if the minor does not disaffirm a contract entered into during his or
her minority or shortly after reaching majority. Contracts made by minors to
obtain such necessities as food, clothing, and shelter, however, are not
voidable by the minor and will be enforced against him or her.

No capacity to contract:
The inability of a person to enter into a valid contract under any
circumstances. Such inability can arise when a person has been adjudicated
insane or if he or she is an officer of a corporation who is not authorized to
execute a contract on behalf of the corporation. Lack of capacity would also
cover acts of a corporation beyond the powers as defined in the articles of
incorporation.

When the law limits or bars a person from engaging in specified activities,
any agreements or contracts to do so are either voidable or void for
incapacity. Sometimes such legal incapacity is referred to as incompetence.

Natural persons

Standardized classes of person have had their freedom restricted. These

limitations are justified exceptions to the general policy of freedom of
contract and the detailed human and civil rights that a person of ordinary
capacity might enjoy.

• Infancy
 The definition of an infant or minor varies, each state reflecting local
culture and prejudices in defining the age of majority, marriageable
age, voting age, etc. In many jurisdictions, legal contracts, in which
(at least) one of the contracting parties is a minor, are voidable by the
minor. For a minor to undergo medical procedure, consent is
determined by the minor's parent(s) or legal guardian(s).

In contracts between an adult and an infant, adults are bound but

infants may escape contracts at their option (i.e. the contract is
voidable). Infants may ratify a contract on reaching age of majority. In
the case of executed contracts, when the infant has obtained some
benefit under the contract, he/she cannot avoid obligations unless
what was obtained was of no value. Upon repudiation of a contract,
either party can apply to the court. The court may order restitution,
damages, or discharge the contract. All contracts involving the transfer
of real estate are considered valid until ruled otherwise.

• Minors and Contractual Capacity

A minor (typically under 18) can disaffirm a contract made, no matter

the case. However, the entire contract must be disaffirmed. The minor
cannot keep any of the goods traded for. Also, barter transactions
such as purchasing a retail item in exchange for a cash payment is
generally recognized through a legal fiction to not be a contract due to
the absence of promises of future action.

• Insanity, mental illness, or mental/medical condition

Individuals may have an inherent physical condition which prevents

them from achieving the normal levels of performance expected from
persons of comparable age, or their inability to match current levels of
performance may be caused by contracting an illness. Whatever the
cause, if the resulting condition is such that individuals cannot care for
 themselves, or may act in ways that are against their interests, those
persons are vulnerable through dependency and deserve the
protection of the state against the risks of abuse or exploitation.
Hence, any agreements that were made are voidable, and a court may
declare that person a ward of the state and grant power of attorney to
an appointed legal guardian (in England and Wales, this is a specific
function of the Court of Protection).

• Drunkenness/drug abuse

Although individuals may have consumed a sufficient quantity of

intoxicant or drug to reduce or eliminate their ability to understand
exactly what they are doing, such conditions are self-induced and so
the law does not generally allow any defense or excuse to be raised to
any actions taken while incapacitated. The most generous states do
permit individuals to repudiate agreements as soon as sober, but the
conditions to exercising this right are strict.

• Bankruptcy

If individuals find themselves in a situation where they can no longer

pay their debts, they lose their status as creditworthy and become
bankrupt.

• Enemy aliens and/or terrorists

During times of war or civil strife, a state will limit the ability of its
citizens to offer help or assistance in any form to those who are acting
against the interests of the state. Hence, all commercial and other
contracts with the "enemy", including terrorists, would be considered
void or suspended until a cessation of hostilities is agreed.

3.Discuss how a contract can be discharged by breach

 Failure of a party (not having a legal excuse) to perform in accordance
with a promise made is Breach of contract. Discharge of a valid contract
involves the process under which the primary (performance) obligations
come to an end. Discharge by breach will generally give rise to secondary
obligations to pay damages.

The effect of a breach of contract (at least where the breach consists
of nonperformance or defective performance by the agreed time of
performance) depends upon the classification of the term which has been
breached as either a condition, warranty or in nominate. The right to
repudiate and treat the primary obligations as discharged arise in the case of
the conditions but not warranties, and may arise the case of in nominate
terms depending upon the seriousness of the breach.
In certain circumstances one party may indicate an intention not to perform
his obligations in advance of the time for performance. This has become
known as “ anticipatory breach” although it is more accurately described as “
breach by anticipatory repudiation”.

In this situation, the non-breaching party may elect either

a) to affirm the contract, await the performance and then sue for breach, or
b) treat the
contract as immediately repudiated and himself as being discharged from his
obligations:

Breach of contract is where a party thereto breaks through the obligation

which it imposes.

The effect of a breach of contract is that -

(a) It always gives the party injured a right of action.

(b) It often, but not always, discharges the contract. This depends upon
circumstances to be presently discussed.

If one of the parties to a contract breaks through the obligation which

it imposes, a new obligation arises in every case - a right of action conferred
upon the party injured by the breach. Besides this, there are circumstances
under which the breach will discharge the injured party from such
performance as may still be due from him. Every breach of contract confers
the right of action upon the injured party, but every breach does not
necessarily discharge him from doing what he has undertaken to do under
the contract. The contract may be broken wholly or in part, and, if in part,
the breach may or may not be sufficiently important to operate as a
discharge; or, if it is of such importance, the injured party may choose not to
regard it as a discharge, preferring to continue to carry out the contract,
reserving to himself the right to sue for such damages as he may have
sustained by the breach. It is often very difficult to determine whether or not
a breach of one of the terms of a contract discharges the party injured.

4. Discuss the essentials of contract of guarantee

A contract of guarantee is a promise to answer for the debt, default or

miscarriage of another. It is a collateral engagement by which a parson
undertakes to be liable for the debt of another's default.

Section 126 of Contract Act "A contract of guarantee is a contract to perform

the promise or discharge the liability of a third person in case of his default".

A person who gives the guarantee is called the Surety or Guarantor and the
person in respect to whose default the guarantee is given is called the
Creditor. The person to whom the guarantee is given is called the Creditor.
A guarantee may be either oral or written. Though consideration is essential
for a contract of guarantee, it is not necessary, that benefit should accrue to
the surety. It is sufficient if there is some benefit to the principal debtor.

Section 127 of the Act clearly states, anything done, or any promise made,
for the benefit of the principal debtor, may be sufficient consideration to the
surety for giving the guarantee.

Example: A and B visit a shop. C is the owner of the shop. B says to C that
let A have the goods on credit he does not pay I will. This is a contract of
guarantee. Here B is the surety, C is the creditor and A is the principal
debtor.

Essentials of this Contract:

1. In a contract of guarantee there should be a consent and concurrence

of the three parties namely the principal debtor, the creditor, and the
surety.
2. In this contract there must be a clear and distinct promise by the
surety to answer for the debt, default or miscarriage of the principal
debtor. A vague or ambiguous promise is no guarantee.
3. The liability of the principal debtor must be one which is legally
enforceable. i.e. it should not be time-barred, illegal etc. Where the
liability is unenforceable, it does not exist. And where the liability does
not exist, there cannot be a contract of guarantee.

Continuing Guarantee:

A guarantee which extends to a series of transactions is called a "continuing

guarantee". In case of this kind of guarantee which extends, over two or
more transactions, the liability the surety extends over the successive
transactions which come within its scope.
Revocation of continuing Guarantee: Continuing guarantee can be
revoked in the following ways.

1. Notice: A continuing guarantee may at any time be revoked by the

surety as to future transactions, by notice to the creditor.
2. Death of the Surety: The estate of the surety is liable for all
transactions entered into prior to the death of the surety unless there
is a contract to the contrary. It is not necessary that the creditor
should have notice of the death.

Invalid Guarantees: A guarantee is invalid in case of an assent obtained by

misrepresentation, of if some material fact is concealed. Where person gives
a guarantee on the condition that the creditor shall act upon it until another
person has joined in it as a co-surety, the guarantee is invalid if the other
person does not join.

5.How can negotiable instruments be endorsed? Discuss in details

A negotiable instrument is a specialized type of "contract" for the

payment of money that is unconditional and capable of transfer by
negotiation. As payment of money is promised later, the instrument itself can
be used by the holder in due course frequently as money. Common examples
include cheques , banknotes (paper money), and commercial paper

A negotiable instrument can be endorsed on the following ways:

1. Blank or general endorsement: If the endorser signs his name only
and does not specify the name of the endorsee, the endorsement is
said to be in bland. The effect of a blank endorsement is to convert
the order instrument into bearer instrument which may be
transferred merely by delivery.

2. Endorsement in full or special endorsement: If the endorser, in

addition to his signature, also adds a direction to pay the amount
 mentioned in the instrument to , or to the order of, a specified
person, the endorsement is said to be in full.

3. Partial endorsement: Section 56 provides that a negotiable

instrument cannot be endorsed for a part of the amount appearing
to be due on the instrument. In other words, a partial endorsement
which transfers the right to receive only a part payment of the
amount due on the instrument is invalid.

4. Restrictive endorsement: An endorsement which, by express

words, prohibits the endorsee from further negotiating the
instrument or restricts the endorsee to deal with the instrument as
directed by the endorser is called ‘restrictive’ endorsement. The
endorsee under a restrictive endorsement gets all the rights of an
endorser except the right of further negotiation.

5. Conditional endorsement: if the endorser of a negotiable

instrument, by express words in the endorsement, makes his
liability, dependent on the happening of specified event. Although
such event may never happen, such endorsement is called a ‘
conditional’ endorsement.

In the case of a conditional endorsement the liability of the endorser

would arise only upon the happening of the event specified. But the
endorsee can sue other prior parties, e.g., the maker, acceptor etc., if
the instrument is not duly met at maturity, even though the specified
event did not happen.

6.Why do you think an agreement to take a person to moon for a

holiday cannot be a contract?

A contract is an agreement between parties that is legally enforceable.

A Contract is enforceable by law while an Agreement is not enforceable by

law. In this case of taking a person to moon it cannot be enforced by law.
Its just a mutual agreement.

A valid contract must contain the ten valid elements which is not possible in
terms of taking a person to moon:

· Offer and Acceptance

· Intention to Create Legal Relations

· Lawful Consideration

. Capacity of Parties

· Free Consent

. Lawful Object

· Writing and Registration

· Certainty

· Possibility of Performance

. Not Expressly Declared Void

Moreover the company which agrees to take the person to moon, cannot
make it in a contract that they will take him on what specific date or method
or which space vehicle.
 Name

Course MBA-Semester-3
Legal Aspects of
Subject
Business
Subject Code MB0035-Set-2

1.What is the process for an enterprise to get incorporated as a

company?
 The term ‘company’ implies an association of a number of persons for
some common objective e.g. to carry on a business concern, to promote art,
science or culture in the society, to run a sport club etc. Every association,
however, may not be a company in the eyes of law as the legal import of the
word ‘company’ is different from its common parlance meaning. In legal
terminology its use is restricted to imply an association of persons,
‘registered as a company’ under the law of the land. The following are some
of the definitions of company given by legal luminaries and scholars of law:

“Company means a company formed and registered under this Act or an

existing company. Existing company means a company formed and
registered under the previous company laws.” – Companies Act, 1956 Sec.
3(i & ii)

An enterprise can be incorporated as a company if it has:

Focus: Good companies stay focused on what they know and can do well.
When companies search for new ideas, they often drift into unknown territory
and get in trouble. Good companies just keep growing and expanding into
familiar territory. Shutterfly is a wonderful example of a company that’s
growing, but it grows by expanding within the social expressions business,
helping communities of people share photographs in hundreds of ways.
Niches can be very large markets.

Execution: Satisfying a customer requires relentless attention to execution.

Building a company’s capability to deliver makes the difference between
turning a great idea into a business or failure. But execution is not just about
delivering a product. It’s also about service. Over the years, I have observed
that technology companies are particularly bad at recognizing and responding
to the service needs of their customers. Counter intuitively, high-tech
requires a lot of high-touch. Partsearch is a company that knows what it’s
doing with customer service, helping customers find what they need in an
ocean of millions of parts and accessories for consumer electronic products.
Partsearch has tamed chaos in its industry.

Inspiration: Smart companies engage all of their associates in building the

business, from idea creation though delivery. Ideas don’t just come tops-
down; they also come bottoms-up and from every other direction. Everyone
in the company feels that they own a piece of the action and are accountable
for how the company performs. The inspiration for a company starts at the
top, but good leadership drives that inspiration deep into the company by
engaging people broadly in decision-making. People are more than
mechanical parts of the enterprise, and the more they are allowed to see
customers, the better their business sensibilities.

Above all, it should follow companies Act.

2.Discuss in detail the clauses in the memorandum of association:

A memorandum of association is a standard document that states the

constitution of the company. Memorandum is one of the very essential paper
processes to incorporate a limited company

Clauses in the Memorandum:

a. Name clause:

The name of the company is mentioned in the name clause. A public limited
company must end with the word 'Limited' and a private limited company
must end with the words 'Private Limited'. The company cannot have a
name, which in the opinion of the Central Government, is undesirable. A
name, which is identical with or nearly resembles the name of another
company in existence, will not be allowed. A company cannot use a name,
which is prohibited under the Names and Emblems (Prevention of Misuse Act,
1950 or use a name, suggestive of connection to government or State
patronage.
The name of a company may be altered on obtaining prior approval of the
Central Government for the altered name, passing a special resolution at a
general meeting of the company to that effect and obtaining a new certificate
of incorporation, signifying the name change.

b. Domicile clause:

The state, in which the registered office of company is to be situated, is

mentioned in this clause. If it is not possible to state the exact location of the
registered office, the company must state it provide the exact address either
on the day on which commences to carry on its business or within 30 days
from the date of incorporation of the company, whichever is earlier. Notice in
Form no 18 must be given to the Registrar of Companies within 30 days of
the date of incorporation of the company.

Any change in the registered office must be intimated in Form No. 18 to the
Registrar of Companies within 30 days. The registered office of the company
is the official address of the company where the statutory books and records
must be normally kept. Every company must affix or paint its name and
address of its registered office on the outside of the every office or place at
which its activities are carried on. The name must be written in one of the
local languages and in English.

• Change of the registered office within the same city or village or town
may be done by a board resolution.
• Change of the registered office from one place to another place within
the same state may be done by special resolution and obtaining
approval of the Regional Director.
• Change of Registered Office from one place to another place in another
state may be done by special resolution and obtaining order of
Company Law Board on petition being made.

c. Objects clause:
This clause is the most important clause of the company. It specifies the
activities which a company can carry on and which activities it cannot carry
on. The company cannot carry on any activity, which is not authorized by its
MA. This clause must specify:

Main objects of the company to be pursued by the company on its

incorporation;

Objects incidental or ancillary to the attainment of the main objects;

Any other objects.

In case the companies, other than trading corporations whose objects are not
confined to one state, the states to whose territories the objects of the
company extend must be specified.

The objects clause may be amended by special resolution at a general

meeting of members of the company.

d. Liability clause:

A declaration that the liability of the members is limited in case of the

company, limited by the shares or guarantee, must be given. The
Memorandum of a company, limited by guarantee, must also state that each
member undertakes to contribute to the assets of the company such amount
not exceeding specified amounts as may be required in the event of the
liquidation of the company. A declaration that the liability of the members is
unlimited in case of the unlimited companies must be given.

e. Capital clause:

The amount of share capital with which the company is to be registered,

divided into shares must be specified, giving details of the number of shares
and types of shares. A company cannot issue share capital, greater than the
maximum amount of share capital, mentioned in this clause, without altering
the memorandum.

f. Association clause:

A declaration by the persons for subscribing to the Memorandum that they

desire to form into a company and an agreement to take the shares place
against their respective name must be given by the promoters.

3. Discuss the need for development of cyber laws:

Cyber crime refers to all the activities done with criminal intent in
cyberspace or using the medium of Internet. These could be either the
criminal activities in the conventional sense or activities, newly evolved with
the growth of the new medium. Any activity, which basically offends human
sensibilities, can be included in the ambit of Cyber crimes.

Because of the anonymous nature of Internet, it is possible to engage in a

variety of criminal activities with impunity, and people with intelligence, have
been grossly misusing this aspect of the Internet to commit criminal activities
in cyberspace. The field of cyber crime is just emerging and new forms of
criminal activities in cyberspace are coming to the forefront each day. For
example, child pornography on Internet constitutes one serious cyber crime.
Similarly, online pedophiles, using Internet to induce minor children into sex,
are as much cyber crimes as any others.

Categories of cyber crimes:

Cyber crimes can be basically divided in to three major categories:

1. Cyber crimes against persons;

2. Cyber crimes against property; and
 3. Cyber crimes against government.

IMPORTANCE OF IT ACT :

The Information Technology Act:

• Enables Legal recognition to Electronic Transaction / Record

• Facilitates Electronic Communication by means of reliable electronic
record
• Provides for acceptance of contract expressed by electronic means
• Facilitates Electronic Commerce and Electronic Data interchange.
• Facilitates Electronic Governance.
• Facilitates electronic filing of documents.
• Enables retention of documents in electronic form.
• Where the law requires the signature, digital signature satisfies the
requirement.
• Ensures uniformity of rules, regulations and standards regarding the
authentication and integrity of electronic records or documents.
• Facilitates Publication of Official Gazette in the electronic form.
• Enables interception of any message transmitted in the electronic or
encrypted form.
• Prevents Computer Crime, forged electronic records, international
alteration of electronic records fraud, forgery or falsification in
Electronic Commerce and electronic transaction.

WHY THE NEED FOR CYBER LAW?

• Flourishing of the Internet.
• Greatest cultural, economic, political and social transformation in the
history of human society.
• Complex legal issues arising leading to the development of cyber law.
• Different approaches for controlling, regulating and facilitating electronic
communication and commerce

4.What do you mean by award with reference in arbitration:

Award means an arbitral award. It is a final decision or judgment of

the arbitral tribunal on all matters referred to it. An award in order to be
valid must be final, certain and must decide all the matters referred to. An
award by the arbitrator is as binding in its nature as the judgment of a court.
Arbitral award includes an interim award
There are two types of decisions to be made by the arbitral tribunal
i.e. decision on the merits of the dispute is to be made by the majority of
members of the arbitral tribunal but question of procedure can be decided by
the presiding arbitrator, if authorized by the parties or all members of the
arbitral tribunal. In the absence of such authorization by the parties or other
members of the tribunal, the decision on question of procedure is also to be
made by majority of members of the arbitral tribunal. In the absence of such
authorization by the parties or other members of the tribunal, the decision on
question of procedure is also to be made by majority of members of the
arbitral tribunal. The presiding arbitrator has not been given any special
power and be acts like any other arbitrator. All arbitrators have been given
equal power irrespective of mode of appointment.

Essentials of an Arbitral Award

Section 31 deals with the form and contents of the arbitral award. The
provisions of Section 31 are discussed in the form of essentials which are as
under:
1. An arbitration agreement is required to be in writing. Similarly, a
reference to arbitration and award is also required to be made in
 writing. The arbitral ward is required to be made on stamp paper of
prescribed value. An oral decision is not an award under the law.

2. The award is to be signed by the members of the arbitral tribunal.

However, the signatures of majority of all the members of all the
members of the tribunal are sufficient if the reason for any omitted
signature is stated.

3. Unless the agreement provides otherwise, the arbitrator must give

reasons for the award. Thus, the making of an award is a rational
process which is accentuated by recording the reasons. However,
there are two exceptions where award without reasons is valid i.e.

(a) Where the arbitration agreement expressly provides that no

reasons are to be given, or

(b) Where has been under section 30 of the new Act i.e. where the
parties settled the dispute and the arbitral tribunal has recorded
the settlement in the form of an arbitral award on agreed terms.

4. The award should be dated i.e. the date of the making of the award
should be mentioned in the award.

5. The arbitral tribunal shall state the place of arbitration in the

award.

6. The arbitral tribunal may include in the sum for which award is
made, interest up to the date of award and also a direction
regarding future interest. The rate of interest shall be eighteen per
cent.

7. The award may also include decisions and directions of the

arbitrator regarding the cost of the arbitration.

8. After the award in made, a signed copy should be delivered to each

party for appropriate action.
 9. The arbitral tribune may, at any time during the arbitral
proceeding, make an interim arbitral award on m=any matter with
respect to which it may make a final arbitral award.

Finality of Arbitral Awards (Section 35)

An arbitral award shall be final and binding on the parties and persons
claiming under them respectively. Now, under the new Act, by virtue of
section 35 and the Act, the award made by the Arbitrator shall be fine and
binding on the parties itself and shall be decree without being made decree
by the court.

5.How is consumer defined in the consumer protection act? Discuss

Consumer protection laws are designed to ensure fair competition and

the free flow of truthful information in the marketplace. The laws are
designed to prevent businesses that engage in fraud or specified unfair
practices from gaining an advantage over competitors and may provide
additional protection for the weak and those unable to take care of
themselves. Consumer Protection laws are a form of government regulation
which protects the interests of consumers. For example, a government may
require businesses to disclose detailed information about products—
particularly in areas where safety or public health is an issue, such as food.
Consumer protection is linked to the idea of "consumer rights" (that
consumers have various rights as consumers), and to the formation of
consumer organizations which help consumers make better choices in the
marketplace.

Consumer is defined as someone who acquires goods or services for

direct use or ownership rather than for resale or use in production and
manufacturing.
 Consumer interests can also be protected by promoting competition in
the markets which directly and indirectly serve consumers, consistent with
economic efficiency, but this topic is treated in Competition law.

Consumer protection can also be asserted via non-government

organizations and individuals as consumer activism.

Consumer is a broad label for any individuals or households that use

goods and services generated within the economy. The concept of a
consumer occurs in different contexts, so that the usage and significance of
the term may vary.

In economics and marketing

Typically when business people and economists talk of consumers they

are talking about person as consumer, an aggregated commodity item with
little individuality other than that expressed in the buy/not-buy decision.
However there is a trend in marketing to individualize the concept. Instead of
generating broad demographic profiles and psycho-graphic profiles of market
segments, marketers have started to engage in personalized marketing,
permission marketing, and mass customization.

There is increasing backlash from the public over use of the label
"consumer" rather than "customer", with many finding it offensive and
derogatory.

In law and politics

The law primarily uses the notion of "consumer" in relation to

consumer protection laws, and the definition of consumer is often restricted
to living persons (i.e. not corporations or businesses) and excludes
commercial users. A typical legal rationale for protecting the consumer is
based on the notion of policing market failures and inefficiencies, such as
inequalities of bargaining power between a consumer and a business. As of
all potential voters are also consumers, consumer protection takes on a clear
political significance.

Concern over the interests of consumers has also spawned much

activism, as well as incorporation of consumer education into school
curricula. There are also various non-profit publications, such as Consumer
Reports and Choice Magazine, dedicated to assist in consumer education and
decision making, and Consumer Direct in the UK.

In India, the Consumer Protection Act 1986 clearly differentiates a

consumer as consuming a commodity or service either for his personal
domestic use or to earn his livelihood. Only consumers are protected as per
this act and any person, entity or organization purchasing a commodity for
commercial reasons are exempted from any benefits of this act.
Furthermore, Indian case law has quite a few references on how to
distinguish a consumer from a customer.

In intelligence studies

Within intelligence studies, the concept of "consumer" refers to the political

staff consuming and requesting intelligence.

6. Undertake a survey of 20 shops and write a report on the

provisions being maintained in these shops as per the Shops and
Establishment Act:

On making a survey on 20 different shops coming under shops and

establishments acts, the important findings are summarized:

-To provide statutory obligation and rights to employees and employers in

the un organised sector of employment, i.e., shops and establishments.
Scope And Coverage
- A state legislation; each state has framed its own rules for the Act.
- Applicable to all persons employed in an establishments with or without
wages, except the members of the employer's family.

- State government can exempt, either permanently or for a specified period,

any establishments from all or any provisions of this Act.

Main Provisions
- Compulsory registration of shop/establishment within thirty days of
commencement of work.

- Communications of closure of the establishment within 15 days from the

closing of the establishment.

- Lays down the hours of work per day and week.

- Lays down guidelines for spread-over, rest interval, opening and closing
hours, closed days, national and religious holidays, overtime work.

- Rules for employment of children, young persons and women

- Rules for annual leave, maternity leave, sickness and casual leave, etc.

- Rules for employment and termination of service.

- Maintenance of registers and records and display of notices.

- Obligations of employers.

- Obligations of employees.

When To Consult And Refer

- At the time of start of an enterprise.
- When framing personnel policies and rules