ICSI - Intermediate - Old Syllabus

ECONOMIC & OTHER LEGISLATIONS

December  2003

PART A

Answer question No. 1 which is compulsory and any two of the rest from this part.

Q 1. With reference to the relevant legal enactments, write notes on any four of the following : (i) Control over Monopolistic trade practices (ii) Central Advisory Council (iii) Regulation and management of foreign exchange (iv) Obligation to furnish information by certain associations about receipt of foreign contribution (v) Power to regulate place and conditions of detention [5 x 4 = 20 marks].

Q 2. (a) Your company has received a notice alleging that it has indulged in the restrictive trade practice of tie-up sales and re-sale price maintenance. Briefly explain to the management by way of a note about the nature and scope of the said restrictive trade practice. (b) (i) A newspaper having nationwide circulation launched a scheme during Cricket World Cup, 2003 to name the teams that will reach in Super Six, Semi Finals and Final and invited the readers to send the entries along with newspaper clippings. In case their answers tally with the actual ranking, the winners will be given certain prizes. Examine whether this promotional scheme of the newspaper is an unfair trade practice. (ii) Manohar filed a complaint before the MRTP Commission that ABC Ltd. is marketing drugs under the brand ‘Sophia’ which is being manufactured by a number of manufacturers. He mentioned that since ABC Ltd. is not a manufacturer, this amounts to an unfair trade practice and that ABC Ltd. be restrained from marketing the drugs. Will Manohar succeed in his complaint? (iii) A manufacturer sells his product advertising that the ‘product is made using most modern technology’ and ‘as per international standards’. Examine whether this is an unfair trade practice. [6+9 = 15 marks]

Q 3. (a) With reference to the provisions contained in the Industries (Development and Regulation) Act, 1951: (i) State the circumstances under which the registration of an industrial undertaking is not necessary (ii) Explain the powers of the Central Government to revoke or amend the licence issued. (iii)Discuss whether the management of an industrial undertaking can be taken over by the Central Government without investigation and without issuing a notice to the company owning the industrial undertaking. (b) Explain the provisions relating to surrender and realisaton of foreign exchange under the Foreign Exchange Management Act, 1999. [9+6 = 15 marks]

Q 4. (a) With reference to the provisions of the Foreign Exchange Management Act, 1999 – (i) State the powers of the officers of the Directorate of Enforcement to compound the offences. (ii) Explain the meaning of ‘authorised person’ and the powers of the Reserve Bank of India to inspect the authorised persons. (b) Decide the validity of detention in the following cases under the provisions of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974: (i) The detaining authority did not communicate to the detainee that a representation can be made against the order of detention but merely informed that a representation to the State and Central Governments is permissible. (ii) There was an unexpected delay of 12 days in communicating to a detained person about the grounds of detention, from the date of his detention. (c) Examine whether a trade union can accept a donation of $10,000 for carrying out trade union activities from a multinational corporation under the Foreign Contribution (Regulation) Act, 1976 [6+6+3 = 15 marks]. 

PART – B

Answer all questions.

Q 5. With reference to the provisions of the Consumer Protection Act, 1986, decide the following cases giving reasons in support of your answer: (i) Mohan, a registered gas consumer of XYZ Oil Corporation, was supplied with a gas filled cylinder, which was found leaking. He asked the dealer to remove the defect. The dealer sent an untrained mechanic to rectify the defect. While repairing the cylinder, there was a fire causing injury to Mohan. Mohan intends to bring an action claiming compensation against both the dealer and the XYZ Oil Corporation in a consumer forum. Advise Mohan. (ii) Ashwin booked a new car paying the full price. Before the delivery of the car, the price of the car was increased and an additional amount was demanded from Ashwin. Ashwin paid the additional amount and took delivery of the car. Now, Ashwin files a complaint against the dealer in a consumer forum seeking refund of the excess amount paid by him. Will he succeed? (iii) A patient got admitted to a private hospital to undergo a surgery. During the surgery, the patient died due to the negligence of the anesthetist hired by the surgeon. The legal heirs of the patient bring an action against both the surgeon and the anesthetist claiming damages in a consumer forum. Will they succeed? [5 x 3 = 15 marks]

Q 6. (a) Explain the provisions relating to ‘principal display panel’ contained in the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (b) How is the confiscated commodity sold? Can a person prefer an appeal against the confiscation order? Is there any bar on jurisdiction in the matter of confiscation? [7+8 = 15 marks]

OR

(i) Explain the scope of powers of the Central Government to issue notified order to control production, supply and distribution of essential commodities. (ii) Explain the terms ‘group package’ and ‘maximum permissible error’ under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 [7+8 = 15 marks].

Q 7. Attempt any two of the following: (i) The Central Board for the Prevention and Control of Pollution is required to improve the quality of air and to prevent control or abate air pollution in the country. Discuss briefly the functions of the Central Board with reference to the provisions of the Air (Prevention and Control of Pollution) Act, 1981. (ii) Any person empowered by the State Pollution Control Board has the right to enter any time with such assistance as required for inspection on the use of stream or well for disposal of polluting water. Explain the provisions of the Water (Prevention and Control of Pollution) Act, 1974 in this regard. (iii) The Central Government has been granted powers to take all such measures for protecting and improving the quality of the environment and for preventing, controlling and abating environmental pollution. Explain the measures the Central Government can take under the Environment (Protection) Act, 1986. [10 x 2 = 20 marks]

ICSI - Intermediate

ECONOMIC & OTHER LEGISLATIONS

June  2003

PART A

Answer question No. 1 which is compulsory and any two of the rest from this part.

Q 1. With reference to the relevant legal enactments, write notes on any four of the following : (i) Monopolistic trade practice (ii) Letter of intent (iii) Authorised person (iv) Acceptance of scholarships and stipends from foreign source (v) Power of the central government in relation to absconding persons. [5 marks each]

Q 2. (a) Explain the powers of the MRTP Commission in respect of unfair trade practices. (b) Decide on the following quoting the relevant case law: (i) It is alleged that a company manufacturing pharmaceutical products issued price list without mentioning that the products sold by it can be sold at prices lower than those mentioned therin. The company took the stand that the prices of its products are fixed in accordance with the Drugs (Price Control) Order, 1995 issued under section 3 of the Essential Commodities Act, 1955 and, therefore, such a condition need not be mentioned in the price list. Does it amount to restrictive trade practice? (ii) A tyre manufacturer framed a scheme wherein the buyers were given cash discount ranging from 2% on clearance of 100 tyres and 3.5% on clearance of 350 tyres. Does it amount to restrictive trade practice? Is the manufacturer liable? (iii) A Ltd. entrusted work relating to marketing and publicity for issue of bonds to B Ltd., an advertising company, and agreed to pay commission to B Ltd. for the work. On failure to pay full commission, B Ltd. filed a complaint against A Ltd. that it has committed an unfair trade practice. Will B Ltd. succeed? Discuss. [6+9 = 15 marks]

Q 3. (a) (i) Define an ‘industrial undertaking’ under the Industries (Development and Regulation) Act, 1951? (ii) Mention the industries reserved for the public sector under the Industries (Development and Regulation) Act, 1951. (iii) Explain the approvals which are required to be obtained for establishing an industry which is highly pollutive in nature. (b) Decide, quoting the relevant cases, whether the following are unfair trade practices. (i) A company released an advertisement giving the details of contest. The condition for entering contest was that each participant was required to send three empty packs of the product. The contest was open to all persons above the age of 18 years and there was no entry fee. The participants were required to match the different festivals with the names of the States where each one of them was celebrated. The prizes were distributed to the winners. (ii) The complainant made an application for 300 equity shares in response to a public issue made by the company. The complainant did not get any allotment of shares nor did he receive the refund of amount of application money. A number of reminders were sent to the company which remained unattended.  [9+6 = 15 marks]

Q 4. (a) With reference to the provisions of the Foreign Exchange Management Act, 1999, advise on the following: (i) Ajoy, a resident in India, desires to subscribe for foreign securities by way of rights shares amounting to US $ 20,000 in a company incorporated outside India (ii) Bijoy, a resident outside India, desires to transfer his securities of an Indian company to another resident outside India. (b) With reference to the provisions of the Foreign Contribution (Regulation) Act, 1976, advise on the following: (i) A government servant, who went abroad on a tour, took emergent medical treatment owing to his sudden illness and accepted foreign hospitality. (ii) A candidate for election received foreign contribution. [6+9 = 15 marks]

PART – B

Answer all questions.

Q 5. With reference to the provisions of the Consumer Protection Act, 1986, decide the following cases giving reasons in support of your answer: (i) A delivered goods worth Rs. 2 lakh to B, a carrier for transportation. B failed to deliver the goods to the consignee as agreed, as the goods were lost in transit. The goods were insured with C, the insurer. As the goods were not delivered by B to the consignee, A recovered the cost of the goods from C. Before making the payment, C took a letter of subrogation and a special power of attorney from A. C filed a complaint in the consumer forum against B, for deficiency in service, on the ground of subrogation entitling him to step into the shoes of A. Will C succeed? (ii) Rajat, who was suffering from viral fever, went to a qualified homeopathic doctor in a government primary health centre. He was treated with strong homeopathic medicines for three days. Since his condition did not improve, the homeopathic doctor prescribed him allopathic medicines which resulted in further deterioration of his condition and subsequently he died. The widow of Rajat filed a complaint in the consumer forum demanding compensation on the ground of negligence and carelessness in the medical treatment of her husband. Will she succeed? (iii) A student, who wished to appear for examination in a particular subject, was denied permission to write that paper by the hall supervisor on the ground that his name appeared against Subject Code No. 2 while the examination which he wished to take was under Subject Code No. 1. The student alleged that he was wrongly restrained and prevented from writing the examination on that day because of negligence on the part of authorities conducting the examinations and that it amounted to deficiency in service. He claimed compensation in a consumer forum. Will he succeed?  [15 marks].

Q 6. (a) (i) Explain the powers that can be exercised by the State government for speedy trial and disposal of cases instituted under the Essential Commodities Act, 1955. (ii) Examine the powers of a civil court to grant injunction or relief against a public officer in respect of an act performed by him in his official capacity under the Essential Commodities Act, 1955. (b) (i) What is meant by ‘pre-packed commodity’ under the Standards of  Weights and Measures (Packaged Commodities) Rules, 1977? (ii) Mention the commodities where no declarations as to the sale price are required to be made even though they are sold in a pre-packed manner. [5+3+3+4 = 15 marks]

OR

Q 6 (a) Explain the nature of the order that can be issued by the central government to ensure equitable distribution of essential commodities. (b) What are the declarations required to be made on a package intended for export under the Standard of Weights and Measures (Packaged Commodities ) Rules, 1977?  [7+8 = 15 marks]

Q 7. Attempt any two of the following: (i) Explain the terms ‘air pollution control area’ and ‘control equipment’. What are the obligations of the ‘occupier’ of an industrial plant to continue operations in a place which has been declared as an ‘air pollution control area’ under the Air (Prevention and control of Pollution) Act, 1981? (ii) How does the Water (Prevention and Control of Pollution) Act, 1974 seek to prevent and control water pollution? (iii) Explain the powers of the central government to prevent, control or abate environmental pollution under the Environment (Protection) Act, 1986. [10 marks each].

ICSI - Intermediate

ECONOMIC & OTHER LEGISLATIONS

December 2002

PART A

Answer question No. 1 which is compulsory and any two of the rest from this part.

Q. 1 With reference to the relevant legal enactments, write notes on any four of the following: (i) Tie-up arrangements and full-line forcing (ii) Bargain sales (iii) Scheduled industry (iv) Export of goods and services (v) Foreign hospitality. [ 20 marks]

Q. 2 (a) Doldrum Ltd. fails to comply with the orders passed by the MRTP Commission on an injunction application filed against the company under section 12A of  the Monopolies and Restrictive Trade Practices Act, 1969. Explain the powers available to the MRTP Commission to enforce its orders against Doldrum Ltd. (b) Section 36A(3)(b) of the Monopolies and Restrictive Trade Practices Act, 1969 provides that permitting the conduct of any contest for the purpose of promoting directly or indirectly, the sale, use or supply of any product or any  business interest is an unfair trade practice. In the light of the above provision, state whether any company can sponsor TV shows and cricket matches. (c) A pharmaceutical company claims that its certain herbal health product is based on Ayurvedic system of medicine. In fact, it has used steroids. Can any action be taken against the company under the Monopolies and Restrictive Trade Practices Act, 1969? Give reasons in support of your answer. (d) A manufacturing company enters into an agreement with its trade union that vacancies can be filled up from outside provided no suitable candidates are available internally. Is the agreement registrable under the Monopolies and Restrictive Trade Practice Act, 1969? [4+4+4+3 = 15 marks]

Q. 3 (a) Enumerate the functions of development councils constituted under the Industries (Development and Regulation) Act, 1951. (b) Is it necessary to establish a loss to the consumer before a trade practice is declared as an unfair trade practice? Discuss. (c) “A monopolistic trade practice is deemed to be prejudicial to the public interest.” Comment. [6+5+4 = 15 marks]

Q. 4 (a) A religious organisation has received a donation of $10,000 from a foreign source through an authorized dealer for propagation of its religion. Does it amount to contravention under the Foreign Contribution (Regulation) Act, 1976? Substantiate your answer. (b) Babloo was detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974. He was communicated the grounds of detention after 10 days. Moreover, the grounds of detention were just the reproduction of the language contained in section 3(1) of the Act. Is the detention order valid? Discuss. (c) Explain the relevant provisions of the Foreign Exchange Management Regulations, 2000 relating to – (i) issue of shares under the Employees Stock Option Scheme (ESOS) to persons resident outside India. (ii) investment in a firm in India by a person resident outside India. [4+4+7 = 15 marks]

Part B

Answer all questions.

Q. 5 (a) Vivek was running a stall outside the High Court premises. He purchased a photocopying machine for his business. The machine being found to have a manufacturing defect, Vivek wants to claim compensation under the Consumer Protection Act, 1986. Advise (b) On the occasion of Diwali, Prem gifted a washing machine to his sister. Certain defects were found in the washing machine by his sister. Can she claim compensation from the manufacturer? Answer with reasons. (c) Explain with reference to the decided cases whether the following amount to deficiency in service or not: (i) cancellation of train services by the railways due to disturbance involving violence. (ii) failure of the railways to provide cushioned seats in the first class compartments. (iii) settlement of provident fund dues within 20 days was delayed by the Regional Provident Fund Commissioner, who performs a statutory function. [4+4+7 = 15 marks]

Q. 6 (a) Define ‘combination package’ and ‘group package’. Explain the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 regarding additional declarations on these packages. (b) What do you mean by ‘confiscation’? Discuss whether issue of the show-cause notice is necessary before ordering confiscation of an essential commodity under the Essential Commodities Act, 1955. [8+7 = 15 marks]

OR

Q. 6 (i) Define a ‘pre-packed commodity’. Explain the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 regarding the manner in which declaration of quantity shall be expressed. (ii) Discuss the provisions of the Essential Commodities Act, 1955 relating to (a) payment of procurement price for food-grains and edible oils; and (b) fixing price for sugar to be paid to producers. [8+7 = 15 marks]

Q. 7 Attempt any two of the following: (i) What is meant by ‘air pollutant’? Mention the provisions of the Air (Prevention and Control of Pollution) Act, 1981 regarding powers of the State Pollution Control Board for prevention and control of air pollution to take samples of air or emission and the procedure be followed in connection with such samples. (ii) What is meant by ‘water pollution’? Explain the provisions of the Water (Prevention and Control of Pollution) Act, 1974 relating to prohibition on use of stream or well for disposal of polluting matter and emergency measures in cases of pollution of stream or well. (iii) How does the Environment (Protection) Act, 1986 seek to prevent, control and abate environmental pollution? [20 marks]

ICSI - Intermediate

ECONOMIC & OTHER LEGISLATIONS - June 2002

PART A

Answer question No. 1 which is compulsory and any two of the rest from this part.

Question 1. With reference to the relevant legal enactments, write notes on any four of the following: (i) Takeover without investigation, (ii) Predatory pricing, (iii) Collective price fixation, (iv) Prohibition of drawal of foreign exchange, (v) Restrictions on acceptance of foreign hospitality. [5 marks each]

Question 2. (a) “A monopolistic trade practice is deemed to be prejudicial to the public interest.” Comment along with the exceptions, if any. (b) Decide on the following, whether they are unfair trade practices quoting the relevant cases: (i) A pharmaceutical company manufactures, amongst many other medicines, a medicine to relieve headache and body-pain. In advertising this medicine, the company quoted technical support from a reliable scientific journal to establish superiority of the medicine over other brands of medicines for similar ailments. However, the same journal also dealt with negative effect of this medicine, which was not reflected in the advertisement. (ii) A company, in its sales promotion effort, advertised that any purchaser of its 40 gms. pack product of a particular shade will be given free-of-charge another pack of 15 gms. of the same product having a different shade. Three months before the launch of this advertisement, the price of the aforesaid 40 gms. pack was enhanced by 10%. Allegation is that the company has launched the advertisement to unfairly draw customers from its competitors and the offer of giving free-of-charge the 15 gms. pack is false claim as the company’s hike in the price of the 40 gms pack was to recover the price of the supposedly free gift announced. (iii) An advertisement issued by a television manufacturing company claimed that it produces zero-failure television sets (meaning thereby technically close to perfection) by using imported vital components from a foreign country. [6+9 = 15 marks]

Question 3. (a) What is ‘new article’? Is an industrial license required to manufacture parts and accessories needed for captive consumption in production of the article for which license is granted? (b) Explain the concept of ‘capital account transaction’ under the Foreign Exchange Management Act, 1999. [10+5=15 marks]

Question 4. (a) With reference to the provisions of the Foreign Exchange Management Act, 1999, advise on the following: (i) PQR Ltd. desires to make payment of royalty in foreign exchange to its foreign technical collaborators 10% on its domestic sales and 5% on its exports besides a lumpsum payment of US$ 3 million. (ii) Ajay desires to draw foreign exchange of US$ 3,000 for studying abroad. (iii) XYZ Ltd., carrying on the business of a real estate developers and builders, wishes to draw foreign exchange for payment of commission to their agents abroad for sale of commercial plots in India at 10% of the inward remittance. (b) Amar is detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 for indulging in activities prejudicial to the conservation of foreign exchange resources. While his application for bail was pending for consideration, Amar wants to challenge the order of detention. Will he succeed? [9+6=15 marks]

PART B

Answer all questions.

Question 5. With reference to the provisions of the Consumer Protection Act, 1986, decide the following cases giving reasons in support of your answer: (i) Mohan suffered in his nervous system because of administration of certain non-allopathic medicines by a doctor, a medical practitioner in allopathy system. Mohan filed a complaint demanding compensation for the consequences of the doctor’s negligence. Will he succeed? (ii) A person running a printing press purchased an offset printing machine from a supplier. When put to use, the offset printing machine was found to have several defects due to which he suffered serious loss in his business. The defects could not be rectified by the supplier / manufacturer. The supplier also refused to provide a defect-free replacement. He made a complaint to the consumer court claiming compensation. (iii) Raja took a life insurance policy with accident benefits and premium was payable half-yearly. When the fourth premium fell due, Balwinder, the agent of the Life Insurance Corporation of India, met him and collected a bearer cheque towards the premium payable in respect of the policy. The cheque was encashed immediately, but was not deposited with the Life Insurance Corporation of India for three months. Meanwhile, Raja met with an accident and died. Will the wife of the deceased succeed in her claim against the Life Insurance Corporation of India ? [20 marks]

Question 6. (a) Explain the provisions of the Essential Commodities Act, 1955 relating to penalties for attempt and abetment to contravene the order made by the central government. Does the preparation to commit contravention of the order amount to contravention? (b) State the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 relating to examination of packages. [8+7= 15 marks]

OR

Question 6. (i) What is ‘deceptive package’ and ‘pre-packed commodity’ under the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977? (ii) State the powers of the central government under the Essential Commodities Act, 1955 regarding fixation of the price of essential commodities during an emergency. [8+7= 15 marks]

Question 7. Attempt any two of the following: (i) Discuss the powers of the State Pollution Control Board to restrict the use of industrial plants and to give directions under the Air (Prevention and Control of Pollution) Act, 1981. (ii) What is meant by ‘sewage effluent’ and ‘trade effluent’? What is the procedure required to be followed under the Water (Prevention and Control of Pollution) Act, 1974 to ensure that the result of the analysis of the sample of sewage effluent or trade effluent is admissible in a legal proceeding? (iii) What are the liabilities and penalties for offences by a company under the Environment (Protection) Act, 1986? [10 marks each]

ICSI - Intermediate

ECONOMIC & OTHER LEGISLATIONS - December 2001

PART A

Answer question No. 1 which is compulsory and any two of the rest from this part.

Question 1 With reference to the relevant legal enactments, write notes on any four of the following: (i) Investigation into unfair trade practice. (ii) Severance of inter-connection. (iii) Central Government’s directions after investigation under the Industries (Development and Regulation) Act, 1951. (iv) Capital account transaction. (v) Power to regulate place and conditions of detention of suspects for violation of foreign exchange control rules. [5 marks each].

Question 2 (a) Do the following trade practices amount to restrictive trade practices under the Monopolies and Restrictive Trade Practice Act, 1969: (i) Where a price list is issued without any indication that prices lower than those stipulated therein could be charged. (ii) Where a school makes it compulsory for students to pay for school conveyance for full academic year including two long months of summer vacation (iii) Where a company allocated areas among dealers for an article which is in very high demand but in short supply. (b) What amounts to misleading advertisement to constitute an unfair trade practice? Refer to decided cases. (c) What are penalties for: (i) failure to register agreements relating to restrictive trade practices; and (ii) contravention of any order made by the MRTP Commission declaring a trade practice to be unfair and passing a ‘cease and desist’ order? [6+5+4 = 15 marks]

Question 3 What are the circumstances under which the management of an industrial undertaking can be taken over by the central government without any investigation under the Industries (Development and Registration) Act, 1951? Explain the powers of the central government to provide relief to such an industrial undertaking. [15 marks]

Question 4 (a) Azhar, in respect of whom a detention order has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, is absconding and such order could not be executed. What power the government has in relation to such a person? (b) Refer to relevant provisions of the Foreign Contribution (Regulation) Act, 1976 and state whether the following receipts contravene the Act - (i) Receipt of foreign hospitality by an office bearer of a political party (ii) Receipt of Rs.1,00,000 by Raman, an office bearer of a political party, from XYZ Ltd., a foreign company, as a contribution for working as an agent of the company in relation to a transaction made by the company with the government (iii) Receipt of foreign contribution by Gandhi Smarak Nidhi without prior permission of the central government. (c) Explain the provisions of the Foreign Exchange Management Act, 1999 relating to export of goods and services. (d) Explain the relevant provisions regarding acquisition of equity shares offered on rights basis by an Indian company to a person resident outside India. [3+3+4+5 = 15 marks]

PART – B

Answer all questions.

Question 5 (a) One of the parties to a contract which contained an arbitration clause, made a complaint before the Consumer Forum. The respondent pleaded that the forum has no authority to decide the dispute. In view of the arbitration clause, will the complainant succeed? (b) A company named ABC Ltd. maintained a guest house for use of its CMD and other senior executives. It entered into a contract with XYZ Ltd. for installation of central air-conditioning system. A complaint was lodged with XYZ Ltd., that the air-conditioning system did not function properly. But no action was taken by XYZ Ltd. to repair the air-conditioning system. Then, the complainant company appointed a consultant to submit a report on the working of the air-conditioning system. The consultant pointed out a number of defects such as defective fabrication, improper construction of the cooling tower and so on. ABC Ltd. now wants to make a complaint before the Consumers Forum. Will it succeed? (c) Whether a medical practitioner could be regarded as rendering service within the meaning of section 2(1)(o) of the Consumer Protection Act, 1986? [5 marks each]

Question 6 (a) How is the order issued by the central government under the Essential Commodities Act, 1955 served? What is the effect of such an order? Refer to decided case law. (b) What is meant by ‘maximum permissible error’? Explain the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 relating to examination of packages. [8+7 = 15 marks]

OR

Question 6 (i) “There is a difference between seizure and confiscation of commodities under the Essential Commodities Act, 1955.” Discuss. What is the procedure for disposal of confiscated commodities? How can the sale proceeds of such commodities be utilized? (ii) Enumerate the functions of the Directorate of Weights and Measures responsible for legal metrology in the country. [8+7=15 marks]

Question 7 Attempt any two of the following: (i) How does the Water (Prevention and Control of Pollution) Act, 1974 seeks to prevent and control water pollution? (ii) What is meant by ‘control equipment’? Explain the provisions of the Air (Prevention and Control of Pollution) Act, 1981 relating to restrictions on the use of certain industrial plants. What are the penalties for failure to comply with conditions imposed regarding operation of an industrial plant in an air pollution control area? (iii) What is meant by ‘hazardous substance’? How does the Environment (Protection) Act, 1986 regulate the handling of hazardous substance in an industry, operation or process? Explain the provisions relating to offences by companies contravening the provisions of the Act and rules, orders & directions issued thereunder. [10 marks each]

ICSI - Intermediate

ECONOMIC & OTHER LEGISLATIONS - June 2001

PART A

Answer question No. 1 which is compulsory and any two of the rest from this part.

Question 1  With reference to the relevant legal enactments, write notes on any four of the following: (i) Power of the MRTP Commission to grant temporary injunctions (ii) Misleading advertisements (iii) Existing industrial undertaking (iv) Issue of shares under the Employees’ Stock Options Scheme to persons resident outside India (v) Foreign contribution. [5 marks each]

Question 2 (a) Enumerate the agreements which are compulsorily registrable under the Monopolies and Restrictive Trade Practice Act, 1969. (b) State, quoting decided cases, whether the following practices are restrictive trade practices: (i) A truck operators’ association levy a fee for loading each truck without which no truck will be allowed to be loaded with the goods. It also fixes freight rates to be charged by the truck operators. (ii) An educational institution while admitting the students in its hostel notifies that only 75% of the security deposit collected would be refunded when students leave the institution. [9+6 = 15 marks]

Question 3 (a) Define ‘authorised person’ under the Foreign Exchange Management Act, 1999. What are his functions? State the powers of the Reserve Bank of India to issue directions to such persons. (b) Distinguish between ‘letter of intent’ and ‘industrial license’. [10+5 = 15 marks]

Question 4 (a) Anand, a resident of India, has to realize foreign exchange worth US $ 10,000. Explain the steps Anand is required to take in this regard under the Foreign Exchange Management Act, 1999. (b) The ground of detention are communicated to the detenue subsequently. Is it valid under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974? (c) What are the restrictions on acceptance of foreign contribution by organizations of political nature? [5 marks each]

PART - B

Answer all questions.

Question 5 With reference to the provisions of the Consumer Protection Act, 1986, decide the following cases by giving reasons in support of your answer: (i) Ajay who purchased a tractor primarily for tilling his own land subsequently let it for hire during its idle time. Will it amount to use for commercial purpose? (ii) Can the postal department be held liable for non-delivery of a registered letter or late receipt by the addressee? (iii) Rekha made a deposit of Rs. 20,000 with XYZ Ltd., for a period of 3 years. However, the company did not pay principal as well as interest on maturity. She filed a complaint before the District Forum. Will she succeed? [5 marks each]

Question 6 (a) Explain the difference between ‘seizure’ and ‘confiscation’ under the Essential Commodities Act, 1955. (b) Discuss briefly the provisions applicable to wholesale packages under the Standards of Weights and Measures Act, 1976. [7+8 = 15 marks]

OR

Question 6 (i) Define ‘pre-packed commodity’ under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. What are the declarations to be made on every package under the said Rules? (ii) Elaborate the statement that a reasonable opportunity is required to be given to the person concerned before confiscation of his commodities or vehicle under the Essential Commodities Act, 1955. [10+5 = 15 marks]

Question 7 Attempt any two of the following: (i) Discuss the powers of the State Pollution Control Board to enter and inspect a premises under the Air (Prevention and Control of Pollution) Act, 1981. (ii) Discuss briefly the restrictions on new outlets and new discharges under Water (Prevention and Control of Pollution) Act, 1974. (iii) Discuss briefly the objects and scope of the Environment (Protection) Act, 1986. [10 marks each]

ICSI - Intermediate

ECONOMIC & OTHER LEGISLATIONS - December  2000

PART A

Answer question No. 1 which is compulsory and any two of the rest from this part.

Question 1 With reference to the relevant legal enactments, write notes on any four of the following: (i) Refusal to deal (ii) Power to punish for contempt (iii) Takeover of industrial undertaking owned by the company in liquidation (iv) Foreign exchange and foreign security. (v) Detention of a person longer than three months. [5 marks each]

Question 2 (a) An enquiry was instituted under Section 10(a)(iv) read with Section 37 of the Monopolies and Restrictive Trade Practices Act, 1969 in respect of following trade practices: (i) restricting non-members from lifting goods thereby hampering free flow of trade; and (ii) restricting lifting of goods by non-members upto permissible capacity with the result that the customers have to incur extra expenditure which imposes unjustified costs and restrictions on the consumers. State, quoting decided cases, whether the above practices are restrictive trade practices. (b) Mainstream Ltd., the publishers of a magazine organized a contest scheme offering attractive prices, according to which the ‘entry forms’ are to be accompanied with the cover page of the magazine. The magazine containing the entry forms were available at a price higher than the ‘subscription copies’. The subscribers’ copies did not contain any entry forms. Explain whether the above practice is an unfair trade practice. (c) A company in order to raise capital from the market for financing its expansion programmes, advertised that it was introducing pure wool suitings manufactured with technical assistance from a world renowned company. Although, there was no technical assistance agreement with the foreign supplier in whose favour a letter of credit had been opened for supply of sophisticated machines, yet technical services were to be provided by the foreign company to all those who bought machines from them in the manner of layout plans, installation and commissioning of machines. Do you think that this is an unfair trade practice? [5 marks each]

Question 3 (a) Richie, a resident in India has earned one million US $ in foreign exchange. Advise whether Richie has to repatriate the said foreign exchange to India under the Foreign Exchange Management Act, 1999. State the exemptions available to Richie from repatriation of foreign exchange. (b) Jolly has been found guilty of contravention of Section 4 of the Foreign Exchange Management Act, 1999. Explain whether Jolly can get any immunity/relief from the consequences of the said contravention. (c) When can a person be detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974? What are the constitutional safeguards provided under the said Act? [5 marks each]

Question 4 (a) Are the grounds of detention severable under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974? (b) Can a person detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 be released on bail or bond? Discuss. (c) Name the person who are prohibited from acceptances of Foreign Contribution under the Foreign Contribution (Regulation) Act 1976. (d) Eagle Consultants, New Delhi, a partnership firm providing consultancy services in law related matters, receives law books worth Rs.50,000 by way of gift from International Law Publishers, U.K. Examine whether such a gift attracts any of the provision of the Foreign Contribution (Regulation) Act, 1976. [4+4+4+3 = 15 marks]

PART- B

Answer all questions.

Question  5 (a) Naveen lodge a complaint before the State Commission seeking a compensation of Rs. 2 lakh for the loss of important documents entrusted to Sure Delivery Couriers Pvt. Ltd. Advise whether Naveen will succeed. (b) Ajit wishes to lodge a complaint against the Regional Provident Fund Commissioner under the Consumer Protection Act, 1986 for failure to settle his dues within the time prescribed for settlement from the date of the claim. Advise. (c) Bindu while traveling in a train fail down through the hole in the inter-connecting passage way between two compartments and died. Bindu’s dependents wants to lodge a complaint against the Railway under the Consumer Protection Act, 1986. Advise. [5 marks each]

Question 6 (a) What is meant by ‘essential commodity’ under the Essential Commodities Act,1955? Specify the offences enumerated under the said Act and penalties leviable for such offences. (b) What is meant by ‘ principal display panel’ in relation to the package as defined under Rule 2(m) of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. [10+5 = 15 marks]

OR

Question 6 (i) Discuss briefly the penalties for contraventions of an order passed by the central government under Section 3 of the Essential Commodities Act, 1955. (ii) State the exemptions in respect of certain packages from the provisions of the Standards of Weights and Measures (Packaged Commodities) Rules, 1977. [8+7 = 15 marks]

Question 7 Attempt any two of the following: (i) XYZ Ltd. has been running an industrial plant for manufacture of plastic products within the municipal limits of Delhi Corporation since 1985. In the year 1999, the State government has declared the area where the plant is located as air pollution control area. Explain briefly the steps the company will have to take in this matter assuming that the emission of air pollution is in excess of the standards laid down by the State Pollution Control Board. (ii) A complaint has been made to the State Pollution Control Board stating that ABC Ltd. has been polluting the water by discharging the waste material. Examine whether the Board has any power to make an application to the court so as to prevent the pollution. Also examine whether the directors and officers of ABC Ltd. can be made liable for the offence of committing pollution. (iii) Explain briefly the provision relating to ‘environmental audit’ and ‘ecomark scheme’. Examine the extent of liability, if any, for the offences committed by government departments and their officers under the Environment (Protection) Act, 1986. [10 marks each].