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AR2

Chapter wise Content PlanSubject: 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.Law2.Business Law3.Indian constitution4. Directive Principles of State Policy Brief Theoretical Framework( include main definitions and professional jargon introduced in the chapter) LAW DefinitionThe 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 LawBusiness Law refers to the laws that apply to business entities, such as partnerships and corporations.Indian constitutionThe 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 FrameworkDifferent types of laws in India1) Constitutional and administrative law 2) Criminal law 3) Contract law 4) Labour law 5) Tort law 6) Property law 7) Tax law 8) Trust lawSources of business law in India1. 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.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 Indian constitutionThe 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 .

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 ; 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 powersClass activity/Assignments: (Details)1. 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) France2. . 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. Kunzru3. Who supported the views of the Constituent Assembly for making the Indian Constitution(A) Sardar Patel(B) Gandhiji(C) Jinnah(D) None of the above4. 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 above5. 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(C) 4 Years, 18 months and 6 Days(D) None of the above6. 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 Patel7. . 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

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

1. Conceptual Application based:

attached

CHAPTER-2 THE INFORMATION TECHNOLOGY ACT THE COMPETITION ACT-2002THE RIGHT TO INFORMATION ACT,2005Chapter 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 commissionoffences &penalties Explaining about how to get information from public authorities, procedure to get the information, non discloser of information(limitations),offences &penalties Key Concepts1. E-commerce2. E-Governance3. Digital signature4. Cyber crimes5. Public authority6. Competition commission7. CPIO Brief Theoretical FrameworkElectronic 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 Citizens4. 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.

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 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 FrameworkInformation 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 20001. 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 IIIThis chapter explains the detail that all electronic records of govt. are acceptable unless any other law has any rules regarding written or printed record.3. Chapter IVThis 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 VIIIThis 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 XIIPolice officers have also power to investigate dangerous cyber crime under IPC 1860 , Indian Evidence Act 1872 and RBI Act 1934 .I.T. Act 2000Advantages of I.T. Act 20001. 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 cyber crime has reduced.Shortcoming of I.T. Act 20001. 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 CrimesHacking: 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 ACTWhat is InformationInformation 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.ApplicabilityThe 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: InformationThe 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 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 InformationThe 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 deviceRight to Information under the Act1. 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, 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 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 2002Competition 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.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.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.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 IndiaCompetition 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. Andalso1. 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)20022. PIO Stands for(a) public information officer(b) public inspection officer3.Example where IT act does not applicable4. Example where RTI not disclose of the information5.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 India7.Who cant get information under RTI?8.Cartel comes under(a)ITA (b)RTI (c)Competition actConceptual Application based: AttachedLEGAL ASPECTS OF BUSINESSMODULE I2 Marks Questions1. 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 policy6. 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 precedents10. What is stated in articles 246 of Indian constitution?11. State Economic principles enshrined in the constitution12. What is meant by Fundamental Duties?13. Explain the term Constitutional Environment of business14. What do you mean by rationale of states influence?15. What are the elements covered under 7th Schedule of Indian constitution?8 Marks Questions1. Differentiate b/w Law and Society2. 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 Questions1. 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 InterpretationMODULE II2 Marks Questions1. Define Access2. Define Appropriate Government?3. Define Asymmetric Crypto System4. Define Signature?5. Explain the term E-Governance