MCQs On THE COMPETITION ACT, 2002 Part No-2

Q.1:- As per the Competition Act, 2002, the sale of goods at a price, which is below the cost of production with a view to eliminate the competitors is called:

• Exit barrier price
• Preparatory price
• Entry barrier price
• Predatory price

Q.2:- If any person contravenes, without any reasonable ground, any order of the Appellate Tribunal, he shall be liable for a penalty of.....................

• not exceeding rupees one crore;
• imprisonment for a term up to three years;
• not exceeding rupees three crores and imprisonment for a term up to seven years;
• (a) or (b) or both

Q.3:- Time limit for disposal of appeal by Appellate Tribunal in case of appeal filed is……….from the date of receipt of appeal:

• mandatory within six months;
• as possible within four months;
• as possible within six months;
• mandatory within four months;

Q.4:- Appeal to Appellate Tribunal can be filled within..........

• One twenty days
• Sixty days
• Thirty days
• One eighty days

Q.5:- Unfair competition means adoption of practices such as-

• Collusive price fixing, Tie-in sales, Discriminatory pricing.
• Deliberate reduction in output in order to increase prices, Predatory pricing,
• Creation of barriers to entry, Allocation of markets,
• A, B, and C All of the Above

Q.6:- Central Government may, by order, remove the Chairperson or any other Member from his office if such Chairperson or Member, as the case maybe;

• is, or at any time has been, adjudged as an insolvent; or
• has engaged at any time, during his term of office, in any paid employment, or
• has so abused his position as to render his continuance in office prejudicial to the public interest; or
• All of the above

Q.7:- Whose association can be taken as a cartel?

• Association or producer
• Distributor
• Trader supplier
• All of the above

Q.8:- Which section of Competition Act, 2002 details combinations:

• 2
• 3
• 5
• 4

Q.9:- Following is / are the focus of Competition Law

• Prohibition of certain agreements, which are considered to be anticompetitive in nature.
• Prohibition of Abuse of dominant position
• Regulation of combinations;
• All of the above

Q.10:- As per World Bank, broad definition of Competition is a situation in a market in which firms or sellers independently strive for the …….……………… in order to achieve a particular business objective.

• buyers' patronage
• profit making
• sellers' patronage
• None of the above

Q.11:- How many number of days within which Fill need to submit detail of acquisition from the date of acquisition, as per the Competition Act, 2002?

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

Q.12:- Which of the following as per the Competition Act, 2002 refers to any agreement requiring a purchaser of goods, as a condition of such purchase, to purchase some other goods?

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

Q.13:- What is number of days, after giving notice to CCI an enterprise can enter into a combination, as per the Competition Act, 2002?

• 210 days
• 120 days
• 60 days
• 180 days

Q.14:- Which section of the Competition Act, 2002 enlists anti-competitive agreements?

• 2
• 3
• 4
• 5

Q.15:- What is the maximum number of member to be appointed by central government in CCI, as per the Competition Act, 2002?

• 4
• 5
• 6
• 7

Q.16:- Which of the following is considered as anti-competitive agreements, in the Competition Act, 2002?

• Exclusive supply agreement
• Tie-in agreement
• Exclusive distribution agreement
• All of the above

Q.17:- Which section of Competition Act define Acquirer:

• Section 8
• Section 6
• Section 5
• Section 7

Q.18:- Competition margin can be ascertained:

• Income margin
• EBIDTA margin
• Cost margin
• Sales margin

Q.19:- When the commission may initiate inquiry into anti- competitive agreements/ abuse of dominance?

• On its own on the basis of information and knowledge in its possession,
• On receipt of an information,
• On receipt of a reference from the Central Government or a State Government or a statutory authority.
• All or any of the above

Q.20:- The Central Government has power to issue directions on questions of policy to Competition Commission except...................:

• Relating to administrative matters
• Relating to technical matters
• Relating to functional matters
• (a) and (c)

Q.21:- The prescribed fees The Competition Act, 2002 are as under:

• Rupees 5000/- (Five thousand only) in case of individual, or HUF or NGO, or Consumer Association, or Co-operative Society, or Trust, duly registered under the respective Acts,
• Rupees 20,000/-(twenty thousand only) in case of firms, companies having turnover in the preceding year upto Rupees 1crores, and
• Rupees 50,000/- (fifty thousand only) in case not covered under clause (a) or (b) above.
• All the above incase applicable

Q.22:- What cannot be acquiring as per the Competition Act, 2002?

• Management control
• Share
• Voting right
• None of these

Q.23:- What is tenure of the chairman of the CCI, as per the Competition Act, 2002?

• 3 years
• 4 years
• 5 years
• 2 years

Q.24:- Which of the following as per the Competition Act, 2002 is exempted as anti-competitive agreement?

• Patent
• Trademark
• Copyright
• All of these

Q.25:- The objectives of Competition Act, 2002 is:

• Abuse of dominance.
• To promote and sustain competition in markets.
• To ensure freedom of trade for all participants in the markets in India.
• Anti-competition agreements.

Q.26:- The objectives of Competition Act, 2002 is'?

• To regulates abuse of dominant position.
• To regulates anti-competition agreements.
• To ensure freedom of trade in the Indian markets ambit.
• All of the above

Q.27:- Activity carried on by organization shall not be regarded as Enterprise as per Competition Act,2002

• Mr. Vaibhav carrying on production of goods.
• M/S Shubham Brokers underwriting shares.
• Activity of Central Government dealing in defense.
• Mr. Ramesh providing services to local customers.

Q.28:- Following shall not be presumed to have an appreciable adverse effect on competition:

• That the Purchaser shall not deal with goods, products, articles, by whatever name called, manufactured by any person other than the Seller.
• That the Purchaser shall not sell the goods manufactured by the Seller outside the municipal limits of the city of Secunderabad.
• Restriction of rights under Designs Act, 2000.
• Reliance Ltd. provides distribution of his goods to Tata Ltd. only in South India.

Q.29:- If any person, without reasonable cause, fails to comply with the orders or directions of the Commission issued under sections 27, 28, 31, 32, 33, 42A and 43A of the Act, he shall be punishable with fine of:

• 1 Percent 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 1 Crore.
• Rupees 1 lakh for each day during which such non-compliance occurs, subject to a maximum of rupees 10 Crore.
• Rupees 2 lakh for each day during which such non-compliance occurs, subject to a maximum of rupees 10 Crore.

Q.30:- Cartel as per Competition Act 2002:

• Cartel is nothing but an association of buyers, who tries to limit the competition or to impose restriction on trade or business.
• Cartel is nothing but a union of employees to impose conditions to work on employers.
• Cartel is an association of manufacturers or producers, to sale product at fair market price.
• Cartel is nothing but a formal association of manufacturers or producers, who tries to limit the competition or to impose restriction on trade or business.

Q.31:- What are the functions of Competition Commission of India (CCI)?

• CCI shall prohibit anti-competitive agreements and abuse of dominance, and also regulate combinations (mergers or amalgamations or acquisitions) through a process of inquiry/investigation.
• CCI shall give opinion on competition issues on a reference received from an authority established under any law (statutory authority)/ Central Government/ a State Government.
• CCI is also mandated to undertake competition advocacy, create public awareness and impart training on competition issues.
• All or any of the above

Q.32:- When the commission may initiate inquiry into anti- competitive agreements/ abuse of dominance?

• On its own on the basis of information and knowledge in its possession, or on receipt of an information, or on receipt of a reference from the statutory authority.
• On its own on the basis of information and knowledge in its possession, or on receipt of an information, or on receipt of a reference from the State Government or a statutory authority.
• On its own on the basis of information and knowledge in its possession, or on receipt of an information, or on receipt of a reference from the Central Government or a State Government or a statutory authority.
• On its own on the basis of information and knowledge in its possession, or on receipt of an information, or on receipt of a reference from the Central Government.

Q.33:- Competition Act extends to.....................

• Whole of India except the State of Jammu and Kashmir and Sikkim.
• Whole of India including the State of Jammu and Kashmir.
• Whole of India except the State of Jammu and Kashmir.
• None of the above

Q.34:- Competition Act, 2002, bill got Presidential assent in:

• Jan 2003
• Dec 2003
• Nov 2003
• March 2003

Q.35:- Example of Horizontal Agreement is:

• Agreement between a producer and a distributor.
• The agreements between producers or between whole sellers or between retailers, operating at the same level in the economic process.
• The agreements between manufacturers of components, manufacturers of products, between producers and whole-sellers or between producers, whole-sellers and retailers.
• The agreements between non-competition undertakings operating at different levels of manufacturing and distribution process.

Q.36:- What are the elements of such Government measures through the constitutes competition law and policy?

• Competition Policy: Set of policies, such as liberalized trade policy, relaxed FDI policy, de-regulation, etc., that enhances competition in the markets.
• Competition Law: To prevent anti-competitive practices with minimal intervention.
• Central Government measure: empowers the Competition Commission of India (CCI) to grant leniency by levying a lesser penalty on a member of the cartel who not provides full, true and vital information regarding the cartel.
• A and C

Q.37:- Is it true that one of the objectives of Competition Act, 2002 is to protect the interests of organizations?

• Yes
• No
• None
• Partially true

Q.38:- ...........…is the real culprit for non existence of free market.

• Income distribution system
• Competitive system
• none of the above
• both (a) and (b)

Q.39:- Which of the following is component of Competition Act 2002'?

• Anti-competition Agreements
• Anti-competition Agreements
• Competition Advocacy
• All of the above

Q.40:- Exclusive distributive agreement includes:

• Any agreement restricting in any manner the purchaser in the course of his trade from acquiring or otherwise dealing in any goods other than those of the seller or any other person.
• 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.
• Any agreement to limit, restrict or withhold the output or supply of any goods or allocate any area or market for the disposal or sale of the goods.
• All of the above

Q.41:- Predatory price means:

• Price fixed by buyer and seller.
• The sale of goods or provision of services, at a price which is below the cost, as may be determined by regulations, of production of the goods or provision of services, with a view to reduce competition or eliminate the competitors.
• The sale of goods or provision of services, at a price which is more than the cost.
• Price fixed in advance.

Q.42:- Competition Commission will exercise the power to impose lesser penalty if:

• In respect of a producer, seller, distributor, trader or service provider included in the cartel, who was not the first one to make full, true and vital disclosures under this section.
• In cases where report of investigation directed under section 26 has been received before making such disclosure.
• Producer, seller, distributor, trader or service provider included in any cartel, which is alleged to have violated section 3, has made a full and true disclosure in respect of the alleged violations.
• Producer, seller, distributor, trader or service provider included in any cartel, which is alleged to have violated section 3, has made concealed information in respect of the alleged violations.

Q.43:- Which act was replaced with the introduction of Competition Act 2002:

• POTO
• Indian Contract Act, 1872
• MRTP
• None of the above

Q.44:- Which of the following as per the Competition Act, 2002 refers to any agreement to limit, restrictor withhold the output supply of any goods or allocated any area or market for the disposal or sale of the goods?

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

Q.45:- Which of the following is not the objective of Competition Act, 2002?

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