The Competition Act, 2002 replaced which earlier law?
- A.The Industries (Development and Regulation) Act, 1951
- B.The Monopolies and Restrictive Trade Practices Act, 1969
- C.The Foreign Exchange Regulation Act, 1973
- D.The Companies Act, 1956
Correct answer
Explanation
The correct answer is B, the Monopolies and Restrictive Trade Practices Act, 1969. The MRTP Act treated size itself as a danger and required large undertakings to obtain approval for expansion, which suited a controlled economy. After the reforms of 1991 a committee under S. V. S. Raghavan recommended a law aimed at conduct rather than size, and the Competition Act of 2002 followed; the MRTP Act was repealed in 2009 and its commission wound up. Option A is wrong because the Industries (Development and Regulation) Act of 1951 was the basis of industrial licensing, most of which was dismantled separately in 1991. Option C is wrong because the Foreign Exchange Regulation Act of 1973 dealt with foreign exchange and was replaced by FEMA in 1999. Option D is wrong because the Companies Act of 1956 governed the formation and working of companies and was replaced in 2013.
Read the full article: Consumer Protection and Competition Law: Notes and PYQs
Practice Questions
View allAs per the Consumer Protection Act, 1986 a complaint can be filed in the District Consumer Disputes Redressal Forum if the value of the claim is up to:
- A.Rs. 5 lakh
- B.Rs. 15 lakh
- C.Rs. 20 lakh
- D.Rs. 10 lakh
Show answer
The Consumer Protection Act, 1986 created a three-tier machinery and fixed a money limit for each tier: the district forum could hear a complaint where the value of the goods or services and the compensation claimed did not exceed twenty lakh rupees, the state commission took claims above that limit…
Read the full explanation →Which of the following is NOT an element of the Competition Act 2002?
- A.Prohibition of anti-competitive agreements
- B.Regulation of combination
- C.Abuse of dominant position
- D.Prohibition of trade
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The Competition Act, 2002 rests on three pillars, and freedom of trade is the very thing it protects, so no provision of it prohibits trade; on the contrary, the Act opens by stating that it seeks to ensure freedom of trade carried on by other participants in markets in India.
Read the full explanation →Which Act governs consumer protection in India at present?
- A.The Consumer Protection Act, 1986
- B.The Consumer Protection Act, 2019
- C.The Monopolies and Restrictive Trade Practices Act, 1969
- D.The Essential Commodities Act, 1955
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The new Act widened the definition of a consumer to cover online, teleshopping and multi-level marketing purchases, created the Central Consumer Protection Authority, introduced product liability and rules for electronic commerce, allowed mediation and e-filing, and renamed the three redressal bodies as Commissions.
Read the full explanation →The Central Consumer Protection Authority (CCPA) was established under which law?
- A.The Competition Act, 2002
- B.The Consumer Protection Act, 2019
- C.The Legal Metrology Act, 2009
- D.The Bureau of Indian Standards Act, 2016
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The CCPA is a regulator created by that Act to protect the interests of consumers as a class, and not merely to decide an individual complaint.
Read the full explanation →Which is the apex body in the three-tier consumer dispute redressal machinery in India?
- A.The District Commission
- B.The State Commission
- C.The National Commission
- D.The Supreme Court
Show answer
It is headed by a sitting or retired judge of the Supreme Court, hears complaints above the pecuniary limit prescribed for the State Commissions, and also hears appeals from them.
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