- Indian Contract Act, 1872: Governs contracts in India, defining the framework for making, enforcing, and invalidating contracts.
- Indian Partnership Act, 1932: Regulates partnership firms in India, detailing rights, duties, and liabilities of partners.
- Negotiable Instruments Act, 1881: Covers negotiable instruments like promissory notes, bills of exchange, and cheques, governing their use, transfer, and payment.
- Companies Act, 2013 (earlier 1956): Establishes regulations for the formation, financing, functioning, and winding up of companies in India.
- Foreign Exchange Management Act, 1999 (FEMA): Regulates foreign exchange transactions and promotes orderly development of foreign exchange markets in India.
- The Factories Act, 1948: Enforces safety, health, and welfare measures for workers in factories, regulating working hours and conditions.
- Industrial Disputes Act, 1947: Manages industrial disputes, providing mechanisms for dispute resolution and defining rights of employers and employees.
- Payment of Gratuity Act, 1972: Ensures a lump-sum payment to employees as a gratitude payment for services rendered, applicable to companies of a certain size.
- Industries (Development and Regulation) Act, 1951: Regulates industrial development in India, ensuring planned growth and effective control of industries.
- Prevention of Food Adulteration Act, 1954: Provides measures to prevent the adulteration of food, aiming to protect consumer health. The Prevention of Food Adulteration Act, 1954 was replaced by the Food Safety and Standards Act, 2006 to provide more comprehensive food safety regulations.
- Essential Commodities Act, 1955: Empowers the government to regulate and control the production, supply, and distribution of essential commodities.
- The monopolies and Restrictive Trade Practices (MRPT) Act, 1969: The MRTP Act, 1969 was replaced by the Competition Act, 2002, which now governs anti-competitive practices in India.
- Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act): Facilitates asset reconstruction and enforcement of security interest for banks and financial institutions to recover dues efficiently.
- The Information Technology Act, 2000 (IT Act) provides a legal framework for electronic transactions, digital signatures, and cybersecurity in India. It grants legal recognition to electronic records and digital signatures, addresses cybercrimes like hacking and identity theft, and ensures the protection of personal data. The Act also regulates intermediaries and sets penalties for various cyber offenses. It was amended in 2008 to include provisions for cyber terrorism and enhance data protection.
- The Insolvency and Bankruptcy Code (IBC) of 2016 is a law that streamlines insolvency processes for individuals and companies in India. It provides a quick, time-bound resolution (within 180 days) to maximize asset value, prioritizes creditors’ rights, and is regulated by the Insolvency and Bankruptcy Board of India (IBBI). The IBC aims to create a more efficient system for handling financial distress and improving the business environment.
Laws Governing Media
- Press Council Act, 1978: Established the Press Council of India to uphold journalistic standards and ensure freedom of the press.
- Cable Television Network Rules, 1994: Enacted to regulate content on cable television, ensuring adherence to broadcasting standards.
- Code for Commercial Advertising on Doordarshan and All India Radio: Introduced in 1987, providing advertising guidelines for India’s public broadcasters to prevent offensive or misleading content.
- Electronic Media Monitoring Centre (EMMC): Established in 2008 under the Ministry of Information and Broadcasting to monitor electronic media content for compliance with rules and guidelines.
- Norms for Journalist Conduct issued by the Press Council of India: Updated periodically since 1978, these norms offer ethical guidelines for journalists.
- Code of Conduct of the News Broadcasters Association (NBA): Introduced in 2008, this code provides a self-regulatory framework for ethical broadcasting practices among news channels.
Laws Protecting Society and the Consumer
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- Emblems and Names (Prevention of Improper Use) Act, 1950: Prevents the misuse of national emblems, official seals, and names of national or international organizations to protect the dignity of such symbols.
- Young Persons (Harmful Publications) Act, 1956: Prohibits the dissemination of publications that may negatively influence young people by depicting criminal acts, violence, or other harmful behaviors.
- Companies Act, 2013 (previously 1956): Regulates the incorporation, functioning, and dissolution of companies, aiming to protect the interests of shareholders and ensure corporate accountability.
- Standards of Weights and Measures Act, 1976: Establishes standards for weights and measures to prevent fraud in trade and protect consumer rights.
- Indecent Representation of Women (Prohibition) Act, 1986: Prohibits indecent representation of women through advertisements, publications, or other means, ensuring respect for women’s dignity.
- Consumer Protection Act, 2019 (earlier 1986): Strengthens consumer rights, establishes dispute resolution mechanisms, and addresses issues such as misleading advertising, defective goods, and unfair trade practices.
- Laws Related to Intellectual Property Rights (Various years):
- Copyright Act, 1957: Protects original works of authorship, including literary, musical, and artistic creations.
- Patents Act, 1970 (Amended in 2005): Provides patent protection to inventions, promoting innovation.
- Trade Marks Act, 1999: Protects brand names and trademarks, preventing unauthorized use.
- Designs Act, 2000: Grants rights to creators of unique designs, preventing unauthorized replication.
- Geographical Indications of Goods (Registration and Protection) Act, 1999: Protects goods specific to certain regions, like Darjeeling tea, to preserve heritage and quality.
- Insurance Laws with their respective years of enactment:
- Insurance Act, 1938: Regulates the general insurance and life insurance industries, ensuring financial stability, solvency, and protection of policyholders’ interests. It covers licensing, capital requirements, and the functioning of insurance companies.
- Life Insurance Corporation Act, 1956: Established the Life Insurance Corporation of India (LIC), the state-owned insurance company, to provide life insurance services in India.
- Marine Insurance Act, 1963: Regulates marine insurance, covering policies related to ships, cargo, and maritime trade, ensuring protection for maritime activities.
- Motor Vehicles Act, 1988: Covers insurance related to motor vehicles, including third-party liability insurance for vehicles, and regulates motor vehicle registration and road safety standards.
- General Insurance Business (Nationalization) Act, 1972: Nationalized the general insurance sector, leading to the establishment of state-run entities to manage general insurance services. It was later repealed after liberalization in the 1990s.
- Insurance Regulatory and Development Authority of India (IRDAI) Act, 1999: Established the Insurance Regulatory and Development Authority (IRDA), which oversees and regulates the insurance industry in India, ensuring fair practices and protecting the interests of policyholders.
- The Insurance Laws (Amendment) Act, 2015: Amended the Insurance Act, allowing foreign direct investment (FDI) in the insurance sector to increase from 26% to 49%, enabling greater participation by foreign investors in the Indian insurance market.
Industry-Specific Laws
- The Drugs and Cosmetics Act, 1940: Regulates the manufacture, distribution, and sale of drugs and cosmetics, ensuring their safety, efficacy, and quality.
- The Transplantation of Human Organs Act, 1994: Regulates organ donation and transplantation to prevent illegal trade and ensure ethical practices.
- The Drugs and Magical Remedies (Objectionable Advertisements) Act, 1954: Prohibits advertisements that promote drugs or remedies claiming to cure diseases in a misleading or unscientific manner.
- The Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994: Prevents the misuse of prenatal diagnostic techniques for sex determination, aiming to curb female feticide.
- Advocates Act, 1961: Governs the legal profession in India, regulating the admission, conduct, and discipline of advocates.
- Infant Milk Substitutes, Feeding Bottles, and Infant Foods (Regulation of Production, Supply, and Distribution) Act, 1992: Regulates the marketing and distribution of infant milk substitutes and feeding bottles to protect infant health and encourage breastfeeding.
- Securities and Exchange Board of India (SEBI) Act, 1992: Establishes SEBI to regulate the securities market, protect investor interests, and promote market integrity.
- The Prize Chits and Money Circulation Schemes (Banning) Act, 1978: Bans prize chits and money circulation schemes that exploit the public by offering false promises of wealth.
- Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply, and Distribution) Act, 2003: Prohibits tobacco product advertisements and regulates their sale, production, and distribution.
- Public Gambling Act, 1867; Lotteries (Regulation) Act, 1998; and Prize Competitions Act, 1955: Regulate gambling, lotteries, and prize competitions, with provisions to curb illegal activities in these sectors.
- Indian Medical Council (Professional Conduct, Etiquette, and Ethics) Regulations, 2002: Sets standards for ethical medical practice, conduct, and professional etiquette for doctors.
- The Food Safety and Standards Act, 2006: Establishes the Food Safety and Standards Authority of India (FSSAI) to regulate food quality, safety, and labeling.
1. Which one is not an element of legal environment?
(a) Act of Parliamentarians in Lok Sabha (b) Indian Contract Act, 1872
(c) Indian Partnership Act, 1932 (d) Negotiable instruments Act. 1881
[UGC NET JRF Commerce-2012 June II]
2. Match the following:
List-I (Years) List-II (Act)
(A) 1956 (i) Consumer Protection Act
(B) 1986 (ii) Indian Companies Act
(C) 1992 (iii) Securities and Exchange Board of the India
(D) 2002 (iv) Securitisation Act
Codes
(a) (A)-(ii), (B)-(i), (C)-(iii), (D)-(iv) (b) (A)-(i), (B)-(ii), (C)-(iii), (D)-(iv)
(c) (A)-(ii), (B)-(iii), (C)-(i), (D)-(iv) (d) (A)-(i), (B)-(iv), (C)-(iii), (D)-(ii)
[UGC NET JRF Commerce-2012 June III]
3. Which of the legislation(s) do (does) not form part of the legal environment of business in India?
(a) The Drugs and Cosmetics Act, 1940
(b) The Prevention of Food Adulteration Act, 1954
(c) The monopolies and Restrictive Trade Practices Act, 1969
(d) Both (b) and (c) above
[UGC NET JRF Commerce-2014 June III]
4. Match the items of List-I with List-II:
List-I List-II
(A) Industries Development Regulation Act (i) 1947
(B) Import and Export Control Act (ii) 1948
(C) Foreign Exchange Management Act (iii) 1951
(D) Factories Act (iv) 1999
Identify the correct combination:
Codes:
(a) (A)-(i), (B)-(iii), (C)-(iv), (D)-(ii) (b) (A)-(iii), (B)-(i), (C)-(ii), (D)-(iv)
(c) (A)-(iii), (B)-(i), (C)-(iv), (D)-(ii) (d) (A)-(iii), (B)-(iv), (C)-(ii), (D)-(i)
[UGC NET JRF Commerce-2014 Dec II]
5. EDI system got legal recognition under which one of the following Acts?
(a) Electronics Act, 1996 (b) Right to Data Act, 1998
(c) DGFT Act, 1999 (d) Information Technology Act, 2000
[UGC NET JRF Commerce-2015 June III]
6. Which of the following laws affect business organisations?
(a) Incorporation and Bankruptcy Laws (b) Environmental Protection Laws
(c) Occupational Health and Safety Laws (d) Competition Laws
[UGC NET JRF Commerce-2019 Dec II]
7. Arrange the following legal enactments in India in the chronological sequence from the first to the last.
(A) The mines Act
(B) The minimum wages Act
(C) The payment of gratuity Act
(D) The child labour (Prohibition and Regulation) Act
(E) The Apprentices Act
Choose the correct answer from the options given below:
(a) (B), (D), (C), (A), (E) (b) (B), (A), (E), (C), (D)
(c) (A), (E), (B), (C), (D) (d) (E), (B), (A), (C), (D)
[UGC NET JRF Commerce-2020 Oct II First Shift]
8. Match the List I with List II :
List I List II
(A) Insurance Act (I) 1988
(B) Life Insurance Corporation Act. (II) 1963
(C) Motor Vehicle Act (III) 1938
(D) Marine Insurance Act (IV) 1956
Choose the correct answer from the options given below:
(a) (A)- (IV), (B) – (III), (C)- (I), (D) – (II) (b) (A)- (I), (B) – (II), (C)- (III), (D) – (IV)
(c) (A)- (III), (B) – (IV), (C)- (I), (D) – (II) (d) (A)- (IV), (B) – (III), (C)- (II), (D) – (I)
UGC NET JRF Commerce 2021, 25th November Shift I
Answer Key
1 (a) 2 (a) 3 (d) 4 (c) 5 (d) 6 (a) 7 (b) 8 (c)
Hints Q. No. 3:
The correct answer is (d); both (b) The Prevention of Food Adulteration Act, 1954, and (c) The Monopolies and Restrictive Trade Practices Act, 1969 do not form part of the legal environment of business in India.
Both the Prevention of Food Adulteration Act, 1954, and the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 have historically impacted businesses, but they no longer exist and do not form an active part of the current legal environment of business in India.
- The Prevention of Food Adulteration Act, 1954 was replaced by the Food Safety and Standards Act, 2006 to provide more comprehensive food safety regulations.
- The MRTP Act, 1969 was replaced by the Competition Act, 2002, which now governs anti-competitive practices in India.
Hints Q. No. 6 : In India business is not affected by Incorporation & Bankruptcy Laws but it is affected by Insolvency and Bankruptcy Code (IBC) 2016; (b) Environmental Protection Laws (c) Occupational Health and Safety Laws (d) Competition Laws