Unit 9 Legal Aspects of Business PYQ’s 25th Dec 2021 Shift 1

The correct answer is A and B only

Key Points Electronic Purse:

• An electronic purse is the store of value on a card, which can be used in a manner similar to cash to pay for travel or for other small-scale transactions.
• The electronic “purse” is secure information stored in a dedicated area or file in the smart-card.

Important Points

• An electronic wallet is a mechanism that allows end users to pay for goods and services electronically.
• Its function is to maintain a bridge of value that decreases incrementally as transactions occur. E
• Electronic wallets are based on smart cards.

In the above given option retinal structure verification and visual recognition statement is false.

The incorrect answer is  B, C only

Important Points

(A) Ensure freedom of trade for other participants in incidental and connected markets.

• This is one of the objectives of The Competition Act, 2002.
• The Competition Act, 2002 ensures freedom of trade carried on by other participants in markets, in India, and for matters connected therewith or incidental thereto.

(B) Provide a reasonable level of reliability and connect operation.

• This is not the objective of The Competition Act, 2002.
  

(C) Adhere to generally accepted security procedures.

• This is not the objective of The Competition Act, 2002.

(D) Protect the interests of consumers.

• This is one of the objectives of The Competition Act, 2002.
• The Competition Act, 2002 ensures protection of interests of consumers.

Additional Information

The Competitors Act, 2002 Competition is the act of sellers seeking to gain the protection of buyers in order to gain personal profit or market share.

This Act, enacted by the Parliament of India in 2002 and the Monopolies and Restrictive Trade Practices Act, 1969 was replaced.

It is effective to control Indian competition.

Its objectives are as follows:

• To prepare a roadmap for the establishment of the Competition Commission
• To prevent monopoly and promote competition in the market.
• To protect consumer interests.
• Ensuring the freedom of the people participating in the business.

The correct answer is (A) – (III), (B) – (IV), (C) – (II), (D) – (I)

The correct match is given below:

 Important Points 

Ordinary damages: Damages that arise in the ordinary course of events from the breach of contract are called ordinary damages. Damages arising out of natural and probable consequences of breach of contract are also considered ordinary damage.

Special damages: The market value at the time the loss occurred is used to calculate special damages. In the instance of a tort claim, however, the lawyer may attempt to secure the claim through extraordinary damages. For example: Damaged property is replaced.

Exemplary damages: This is an amount of money that someone who commits an offence has to pay, which is intended to be large enough to prevent them or others from committing similar offences in the future

Nominal Damages: Even if no actual injury is demonstrated, the plaintiff is entitled to nominal damages if the defendant is found guilty of breach of contract. If a legal right is infringed upon, but no real damages are incurred, nominal damages are given, and the right to a verdict is granted as a result of the infringement.

The correct answer is “When an indivisible contract for a lumpsum is partly performed.”

Key Points Quantum Meruit:

• The phrase “as much as is earned” is literally translated as “quantum meruit.”
• When one party to a contract is prevented from completing his contract performance by the other party, he can sue for quantum meruit.
• As a result, he must be compensated fairly for the portion of the contract that he has already completed.

Important Points

•  Quantum Meruit is, payment in proportion to the amount of work done, where one of his parties has fulfilled part of his promise and then the contract person is breached, then a claim for quantum merit arises.
• When the original contract is discharged, i.e. when the indivisible contract for a lump sum amount of a debt is partly executed, then the claim of quantum merit cannot be successful.

The correct answer is Destruction of the subject matter of the contract of agency.

Key Points 

Agency Contract:

• An agency contract is a legal relationship, where one person appoints another to transact on his behalf.
• The contract person who appoints another person to look after his transactions is called the original person.
• Whereas the person who sees any transaction of the original person is the agent. 

Important Points

•  The agency is contractual.
• There is a special contract under the Indian Contract Act 1872.
• According to this contract, if the subject matter of the contract of the agency is lost, it cannot be a valid agency.
• It is absolutely necessary to have the subject matter in the agency for a contract.

The correct answer is 3 years and a fine of Rs. 2,00,000

Key Points 

Copyright Act, 1957​:

• In the year 1957 to protect intellectual property rights, this law was implemented across the country by making the Copyright Act.
• Copyright is a type of intellectual property that protects original works of authorship once they are fixed in a tangible form of expression by the author.
• Under this, books, painting, sculpture, cinema, music, computer programs, Advertising, maps and technical illustrations are included. 

Important Points 

Section 6, Copyright Act 1957:

Section 63 of the Act provides that any person who knowingly infringes or abets the infringement of-

• the copyright in a work, or
• any other right conferred by this Act except the right conferred by section 53A

shall be punishable with imprisonment for a term which shall not be less than 6 months but which may extend to 3 years and with fine which shall not be less than Rs.50,000/- but which may extend to Rs. 2 lakhs.