MCQs On THE COMPETITION ACT, 2002 Part No-1

Q.1:- CCI consists of a ………… appointed by the Central Government:

• Chairperson and six Members
• Director and 6 Members
• Director and 4 Members
• Chairperson and 4 Members

Q.2:- …….……………………is not a type of Agreement under Competition Act,2002

• Horizontal Agreement
• Hybrid Agreement
• Vertical Agreement
• None of the above

Q.3:- ………………….cannot appear before Commission.

• Regular Banking Officer
• Company secretaries
• Director General
• Chartered accountants

Q.4:- ………………penalty for failure to comply with directions of Commission and Director General.

• Rupees one lakh for each day during which such non-compliance occurs, subject to a maximum of rupees 10 crore.
• One per cent of the total turnover or the assets, subject to a maximum of rupees 10 crore.
• Such person shall be punishable with fine which may extend to rupees 1crore.
• Rupees one lakh for each day during which such failure continues, subject to a maximum of rupees 1 crore.

Q.5:- ..……………has power to exempt enterprise, practice or agreement from application of Competition Act, 2002.

• Competition Commission
• Appellate Tribunal
• Central Government
• State Government

Q.6:- What as per the Competitive Act 2002 refers to the sales of goods or provision of services, at a price which is below the cost to eliminate the competitors?

• MRP
• Predatory price
• Preparatory price
• GST price

Q.7:- ………… is horizontal agreements:

• Tie in arrangements
• Resale Price Maintenance
• Cartel
• Exclusive Distribution

Q.8:- The Monopolies and Restrictive Trade Practices Act, 1969 ("the MRTP Act") stands repealed and is replaced by the Competition Act, 2002, with effect from:

• September 1, 2008.
• September 1, 2003.
• September 1, 2009.
• September 1. 2002

Q.9:- Operate independently of competitive forces prevailing in the relevant market is ……….. component:

• Anti-Competition Agreements
• Abuse of Dominance
• Combinations Regulation
• Competition Advocacy

Q.10:- Which of the following is not the duty of Competition Commission:

• to protect the interests of investors;
• to ensure freedom of trade carried on by other participants in markets in India and -for matters connected therewith or incidental thereto;
• to prevent practices having adverse effect on competition;
• to promote and sustain competition in markets;

Q.11:- Who can make a reference on a competition policy in formulating a policy relating to competition or in any other matter, may seek the opinion of the Commission by making a reference to it.

• The Central Government
• The State Government,
• (A) and (B)
• Chairperson & other Members of Competition Commission of India

Q.12:- What is the minimum number of member to be appointed by central government in CCI, as per the Competition Act, 2002?

• 2
• 3
• 4
• 1

Q.13:- How may number of days for notice is to be given to CCI while an enterprise process to enter into a combination, as per the Competition Act, 2002?

• 45 days
• 30 days
• 7 days
• 15 days

Q.14:- The Chairperson and other Members shall not for a period of from the date on which they cease to hold office accept any employment in, or be connected with the management or administration of, any enterprise which has been a party to a proceeding before the Commission.

• 3 years
• 18 months
• 2 years
• 12 months

Q.15:- Is there compulsory wait period for a combination to take effect?

• Yes. The proposed combination cannot take effect for a period of 210 days from the date it notifies the Commission or till the Commission passes an order, whichever is earlier.
• No. The proposed combination can be take effect from the date of Commission passes an order.
• Yes. The proposed combination cannot take effect for a period of 60 days from the date it notifies the Commission or till the Commission passes an order, whichever is earlier.
• No. The proposed combination can be take effect from immediately effect from the date it notifies the Commission or till the Commission passes an order, whichever is earlier.

Q.16:- CCI shall not initiate an inquiry into a combination after the expiry of ……… year from the date on which the combination has taken effect:

• 5 year
• None
• 1 Year
• 3 Year

Q.17:- An appreciable adverse effect on competition in the relevant market in India is said to take place when:

• An agreement referred to in section 3 has been entered into outside India.
• Any enterprise abusing the dominant position is outside India.
• Any enterprise abusing the dominant position in India.
• All of the above

Q.18:- Anti competitive agreements are:

• voidable
• Void
• valid
• none of the above

Q.19:- Which of the following as per the Competition Act, 2002 refers to any agreement which restricts, or likely restrict, by any method the persons or classes of person to whom goods are sold or from whom goods are bought?

• Refuse to deal
• Exclusive distribution agreement
• Tie-in agreement
• Exclusive distribution agreement

Q.20:- Competition Bill became an Act after receiving assent from the President on…..

• 15th April 2002
• 4th December 2005
• 13th January 2003
• 24th September 2006

Q.21:- Merger or amalgamation of enterprises shall be a combination if the group to the enterprise will belong after acquisition jointly have in India:

• Assets > Rs. 8000 Cr or Turnover > Rs. 24000 Cr
• Assets > Rs. 2000 Cr or Turnover > Rs. 6000 Cr
• Assets > Rs. 1000 Cr or Turnover > Rs. 3000 Cr
• None of the above

Q.22:- Central Government may by notification supersede the Commission for such...................

• not exceeding six months
• not exceeding nine months
• four month
• eight months

Q.23:- …………….cannot be considered as goods U/S 2(i) of Competition Act, 2002.

• products manufactured, processed or mined;
• In relation to goods supplied, distributed or controlled in India, goods imported into India.
• Debentures, stocks and shares before allotment.
• none of the above

Q.24:- What orders the commission can pass in case of a combination?

• It shall approve the combination if no appreciable adverse effect on competition is found.
• It shall disapprove of combination in case of appreciable adverse effect on competition.
• It may propose suitable modifications.
• All of the above

Q.25:- Office holding term and Age limit of Chairperson of Competition Commission is:

• Appointed for a term of 5 years however maximum age limit of 67.
• Appointed for a term of 5 years however maximum age limit of 65.
• Appointed for a term of 5 years however maximum age limit of 64.
• Appointed for a term of 5 years however maximum age limit of 62.

Q.26:- Which section of the Competition Act, 2002 enlists abuse of the dominant position:

• 2
• 4
• 3
• 5

Q.27:- Which of the following as per the Competition Act 2002 refers to any agreement restricting in any manner the purchase in the courses of his trade from acquiring or otherwise dealing in any goods other than those of the seller or any other person?

• Tie-in arrangement'
• Refuse to deal
• Exclusive supply agreement
• Exclusive distribution agreement

Q.28:- Provision for restriction on employment of Chairperson and other Members of Competition Commission is not applicable in following cases:

• Employment under Private Sector Units.
• Employment under Local Authority.
• Employment under Public Sector Units.
• None of the above

Q.29:- What types of orders can be passed by Commission after inquiry into agreements or abuse of dominant position?

• Discontinue and not to re-enter such agreement or discontinue such abuse of dominant position.
• Impose such penalty, as it may deem fit.
• Direct that the agreements shall stand modified to the extent and in the manner as may be specified in the order by the Commission.
• All of the above

Q.30:- An agreement among the companies at the same level of the production chain is called ______ in competition parlance:

• Vertical agreement
• Cross agreement
• Horizontal agreement
• Transparent agreement

Q.31:- The Commission shall not initiate any inquiry after the expiry from the date on which such combination has taken effect.

• 1 year
• 2 years
• 3 years
• 18 months

Q.32:- Bid Rigging in Competition Act:

• Anti-competitive bidding practice.
• Explained in Section 3(3).
• Bid rigging takes place when bidders collude and keep the bid amount at a pre-determined level.
• All of the above

Q.33:- Competition Appellate Tribunal bound by the procedure laid down in the Code of Civil Procedure, 1908

• shall be
• shall not be
• may be
• may not be

Q.34:- Section ……………………of the Act enjoins, no enterprise shall abuse its dominant position:

• 4
• 3
• 5
• 2

Q.35:- …………………is / are examples of agreement

• Not intended to be enforceable by legal proceedings
• Intended to be enforceable by legal proceedings
• Oral agreement
• All of the above

Q.36:- Two parties fix in a tender colluding the lower price:

• Price fixing
• Predatory pricing
• Price eliminating
• Bid rigging

Q.37:- Appeal to Supreme Court can be filled within...........:

• 60 days
• 30 days
• 120 days
• 180 days

Q.38:- Competition Fund shall be credited with:—

• All Government grants received by the Commission;
• The fees received under this Act.
• The interest accrued on the amounts in (a) and (b).
• All of the above

Q.39:- Merger or amalgamation of enterprises shall be a combination if parties to Acquisition jointly have in India:

• Assets > Rs. 2000 Cr
• Turnover > Rs. 6000 Cr
• (a) and (b)
• (a) or (b)

Q.40:- In accordance with Competition Act, 2002 following can be considered as consumer:

• Person purchasing goods for personal use.
• Person purchasing goods for resale.
• Person purchasing goods for any commercial purpose.
• All of the above

Q.41:- Which of the following as per the Competition Act, 2002 refers to any agreement to sell goods on condition that the prices to be charged on the resale by the purchase shall be the prices stipulated by the seller unless it is it is clearly stated that prices lower than those prices may be charged?

• Exclusive distribution agreement
• Exclusive supply agreement
• Resale price maintenance
• Tie-in agreement

Q.42:- CCI stands for:

• Container Corporation of India
• Competition Commission of India
• Cricket Council of India
• None of the above

Q.43:- When was CCI established?

• 14.10.2003
• 14.03 2003
• 02.10.2003
• 14.05.2003

Q.44:- …………is Central economic goal of the Competition Policy.

• Economic efficiency
• Preservation and promotion of the competitive process
• Economic growth and development
• Promotion of free trade

Q.45:- The Central Government appointed Hon'ble Justice, aged 61 years Mr. HCJ as the Chairperson of the Competition Commission of India with effect from 1st January, 2005.

• Invalid Appointment;
• Can be appointed for a term of 5 years, reappointment for another term of 5 years but will have to step down in between of Second Term.
• Can be Appointed for a term of 5 years;
• Can be appointed for a term of 5 years and reappointment for another term of 5 years.

Q.46:- …………………is a vertical agreement?

• Bid Rigging
• Refusal to deal
• Price Fixation
• Market Share

Q.47:- Following shall not be presumed to have an appreciable adverse effect on competition:

• Directly or indirectly results in bid rigging or collusive bidding.
• Directly or indirectly determines purchase or sale prices.
• Limits or controls production, supply, markets, technical development, investment or provision of services.
• Agreement by Joint Ventures to increase efficiency in distribution of goods.

Q.48:- An agreement for monopoly:

• Fraud
• Void
• Illegal
• Valid

Q.49:- The Commission can make a reference to a statutory authority for opinion on a relevant issue that-

• May arise during the course of proceeding before it, either at the behest of a party to the proceeding or on its own motion.
• May arise during the course of proceeding before it, at the behest of on its own motion.
• Can’t made during the course of proceeding before competition commission.
• May arise during the course of proceeding before it, either at the behest of a party to the proceeding.

Q.50:- Following will be considered as abuse of dominant position:

• Directly or indirectly, imposes unfair or discriminatory prices.
• Limits or restricts production of goods or provision of services.
• Indulges in practice or practices resulting in denial of market access in any manner.
• All of the above