Competition Act, 2002 India

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Questions and Answers

What is the purpose of the Competition Commission of India?

To restrict trade practices in India

To prevent activities that have an adverse effect on competition in India (correct)

To regulate Government interference in the market

To promote anti-competitive business practices

What was replaced by the Competition Act, 2002?

The Anti-Competitive Practices Act

The Competition Commission of India Act

The Monopolies and Restrictive Trade Practices Act, 1950

The Monopolies and Restrictive Trade Practices Act, 1969 (correct)

What is acquisition as per the Competition Act, 2002?

Transfer of ownership of an enterprise

Sale of shares of an enterprise

Direct or indirect agreement to acquire shares, voting rights or control of assets over any enterprise (correct)

Merging of two enterprises

What is an agreement as per the Competition Act, 2002?

Any arrangement or understanding or action in concert, whether formal or informal, written or oral Signup and view all the answers

What is a cartel as per the Competition Act, 2002?

An association of producers, sellers, distributors, traders or service providers who limit, control or attempt to control the production, distribution, sale or price of goods or provision of services Signup and view all the answers

To which region does the Competition Act, 2002 not extend?

Jammu and Kashmir Signup and view all the answers

What is included in the definition of goods according to the Sale of Goods Act 1930?

Products manufactured or processed, as well as debentures, stock and shares Signup and view all the answers

Who is considered a consumer under the Competition Act 2002?

Any person who buys or hires goods or services for a consideration Signup and view all the answers

What is the definition of an enterprise under the Competition Act 2002?

A person or department of the Government engaged in any activity relating to goods or services Signup and view all the answers

What is predatory pricing?

Pricing goods or services at a cost that is below the cost of production to eliminate competition Signup and view all the answers

What is the purpose of anti-competitive agreements under the Competition Act 2002?

To cause or likely to cause an appreciable adverse effect on competition within India Signup and view all the answers

What is the consequence of abusing a dominant position under the Competition Act 2002?

The business will be subject to an inquiry by the relevant authorities Signup and view all the answers

Study Notes

Purpose of the Competition Commission of India

Administers and enforces competition laws in the country
Aims to prevent anti-competitive practices and promote fair competition

Replacement of Previous Legislation

The Competition Act, 2002 replaced the Monopolies and Restrictive Trade Practices Act of 1969

Acquisition Definition

An acquisition is defined as a transaction where a company takes control over another company by acquiring shares, assets, or a combination of both

Agreement Definition

An agreement under the Competition Act, 2002 refers to any arrangement, understanding, or concerted action between enterprises, whether formal or informal

Cartel Definition

A cartel is a group of independent companies that collude to limit competition by controlling prices, limiting production, or dividing markets

Regional Exemptions

The Competition Act, 2002 does not extend to the Jammu and Kashmir region

Goods Definition according to Sale of Goods Act 1930

Goods are defined as every kind of movable property, excluding actionable claims and money

Consumer Definition under Competition Act 2002

A consumer is any person who buys any goods or services for personal use and not for commercial purposes

Enterprise Definition under Competition Act 2002

An enterprise refers to any person or association of persons engaged in economic activities, including businesses or professions

Predatory Pricing

Predatory pricing occurs when a company deliberately sets prices below cost to eliminate competitors from the market

Purpose of Anti-Competitive Agreements

Anti-competitive agreements aim to prevent practices that can harm competition, such as price-fixing or market division among competitors

Consequences of Abusing Dominant Position

Abusing a dominant market position may lead to sanctions, including penalties and orders to cease such behavior, protecting competition for consumer benefit

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Description

This quiz covers the Competition Act, 2002, a legislation that governs Indian competition law. It discusses the role of the Competition Commission of India and the act's provisions. Test your knowledge of this important Indian law!