Unit V · Topic 10The Competition Act, 2002 - Prohibition of certain agreements, abuse of dominant position and regulation of combinations – Previous Year Questions

The remedies for the violation of Sections 3 and 4 of the Competition Act have been laid down under

1. (a)Section 26
2. (b)Section 27✓
3. (c)Section 42A
4. (d)Section 43A

Any agreement in respect of production, supply, distribution, storage, acquistion, or control of goods or provision of service which causes or is likely to cause an appreciable adverse effect on competition in India is void. These agreements include

A. Tie in arrangment

B. Exclusive supply agreement

C. Exclusive distribution agreement

D. Refusal to deal

E. Resale price maintenance

Choose the correct answer from the options given below

1. (a)A and B only
2. (b)C, D, E only
3. (c)A, B, C only
4. (d)A, B, C, D, E - All✓

Given below are two statements

Statement I : Dominant position means position of strength enjoyed by an enterprise in relevant market in India which enable it to operate independently of operative forces and affects competitors and consumers in its favour

Statement II : No enterprise shall abuse its dominant position

In the light of the above statements, choose the correct answer from the options given below

1. (a)Both Statement I and Statement II are true I II✓
2. (b)Both Statement I and Statement II are false. I II
3. (c)Statement I is true but Statement II is false I , II
4. (d)Statement I is false but Statement II is true I , II

In determining relevant geographic market, competition commission shall keep in mind which of the following factors?

(A) Regulatory trade barriers and natural procurement policies

(B) Language and local specification requirement

(C) Consumer preference and regular supply and after sale service

(D) Transport and distribution factors

Choose the correct answer from the options given below

1. (a)(A),(B),(C) only
2. (b)(A),(B), (D) only
3. (c)(D), (C), (B) only
4. (d)(A), (B), (C) and (D)✓

The Competition Act, 2002, provides for which of the following?

(A) Establishment of a Commission to prevent practices having effect on competition

(B) To promote and sustain competition in markets

(C) To protect the interests of consumers

(D) To ensure freedom of trade carried on by the other participants in the markets

(E) To establish NCLT and NCLAT to decide various matters

Choose the correct answer from the option given below

1. (a)A, B, C, D and E✓
2. (b)B, C and D only
3. (c)C, D and E only
4. (d)A, B, C and D only

In order to establish a cartel, what is NOT necessary?

1. (a)There should be an agreement
2. (b)It should be between an association of producers, sellers, distributors, traders or service providers
3. (c)The objective should be to limit, control or attempt to control the product distribution, sale or price of or trade in goods or provisions of services
4. (d)Cartels are very good for competition✓

All sums realised by way of penalties under the Competition Act, 2002 are credited to

1. (a)Competition Fund
2. (b)Consolidated Fund of India✓
3. (c)Finance Account of Ministry of Commerce
4. (d)PM Relief Fund

'Dominant position' of an enterprise is reflected in which of the following situations

(A) Position of strength in the relevant international market

(B) Enterprise operating independently of market forces in India

(C) Affecting competition or consumers of relevant market in India in its favour

(D) Position of strength enjoyed in relevant market in India

Choose the correct answer from the options given below

1. (a)(A), (B), (C) Only
2. (b)(A), (C), (D) Only
3. (c)(B), (A), (D) Only
4. (d)(C), (D), (B) Only✓

Which of the following is not the meaning of “dominant position” under the Competition Act, 2002?

1. (a)Position of strength
2. (b)Operating independently of competitive forces
3. (c)Cartel activity among competitors✓
4. (d)Ability to affect competitors or consumers in its favour

There shall be an abuse of dominant position, if an enterprise or a group

A. Imposes directly or indirectly, unfair or discriminatory condition in purchase or sale of goods

B. Limits or restricts production of goods in the market to the prejudice of consumer

C. Indulge in practice or practices resulting in denial of market access

D. The enterprise entered into a combination which causes an adverse effect on competition within the relevant market

Choose the correct answer from the options given below

1. (a)B, C and D only
2. (b)A, B and D only
3. (c)B and D only
4. (d)A, B and C only✓