appendix csep m-ii paper 5 (solved scanner) june-11

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Appendix

CS Executive Programme Module-II (New Syllabus)(Solution Upto December-2010 and Question of June-2011 Included)

Paper - 5 : Economic and Labour Laws

Chapter-1 : Industries Development and Regulation 2011 - June [1] {C} With reference to the relevant legal enactments, write short noteson the following :

(i) Functions of the National Board for micro, small and medium enterprises underthe Micro, Small and Medium Enterprises Development Act, 2006 (3 marks)

Chapter-2 : Foreign Trade Policy and Procedures2011 - June [1] {C} With reference to the relevant legal enactments, write short noteson the following :

(ii) Functions of Export Promotion Council (3 marks)Chapter - 3 : Trade, Competition & Consumer Protection2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes onthe following :

(i) Predatory pricing (3 marks)(vii) ‘Complainant’ under the Consumer Protection Act, 1986. (3 marks)

Answer : (i) Please refer 1999 - June [1] {C} (i) on page no. 50(vii) The term ‘Complainant’ is defined under Section 2(1) (b) of the Consumer

Protection Act, 1986Y ‘Complainant’ includes-C ConsumerC In case of death of consumer, his legal heir representativeC Voluntary consumer associationC Central/State GovernmentC One or more consumers where there are numerous consumers having same

interest Who make a complaint.2010 - Dec [4] (c) Prakash, aged 37 years, was travelling from Mumbai to Delhi by air.When he occupied his seat in the aircraft, an announcement was made that his luggage

Appendix CS Executive Programme Module-II Paper 5 2

was lying on the ground unidentified and that he should disembark to identify hisluggage. When Prakash was stepping down from the aircraft, the ladder was suddenlyremoved as a result of which he fell down sustaining bodily injuries causing 10%disablement. As against the claim of ` 10 lakh filed by Prakash towards compensation,the airlines was willing to pay ̀ 40,000 which according to it was the maximum statutoryliability of the airlines under the Carriage by Air Act, 1972. However, the StateCommission awarded ` 4 lakh towards compensation and an additional ` 1 lakh formental agony and distress plus costs. Is the order passed by the State Commissionjustified ? If so, give reasons and refer to the decided case law. (5 marks)Answer :Please refer to 2004 - June [5] (i) of Practical Questions on page. no.792011 - June [1] {C} With reference to the relevant legal enactments, write short noteson the following :

(iii) Anti-competitive agreements (3 marks)(vi) ‘Defect’ in goods under the Consumer Protection Act, 1986 (3 marks)

2011 - June [3] (a) Distinguish between the following :(i) ‘Competition’ and ‘cartel’.

(iii) ‘Competition Commission’ and ‘Competition Appellate Tribunal’. (5 marks each)2011 - June [4] (b) Mohan made a deposit of ` 1.50 lakh with the Housing Board for ahouse proposed to be built by it. There was a stipulation that the house would becompleted within 2 years. The house could not be completed and possession was nothanded over as promised. The Housing Board pleaded that construction was not uptothe mark and expected level because of the use of low cost technology. Expressingregret, the Housing Board suggested that it was prepared to refund the deposit amountadding that there was no provision to pay any interest charges.Mohan is not satisfied with the explanation and intends to approach the ConsumerDisputes Redressal Forum for claim of refund amount, interest and compensation, ifany. Will Mohan succeed ? Refer to decided case law, if any. (5 marks)Chapter - 4 : Essential Commodities and Standards of Weight and Measures2010 - Dec [4] (b) Explain the provisions for confiscation of an essential commodityseized in contravention of the Essential Commodities Act, 1955. (5 marks)Answer :Please refer to 2009 Dec [5] (c) of Descriptive Questions on page no. 93 2011 - June [1] {C} With reference to the relevant legal enactments, write short noteson the following :

(iv) Applicability of the concept of mens rea under the Essential Commodities Act,1955 (3 marks)

Chapter - 5 : Management of Foreign Exchange Transactions2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes onthe following :

(ii) Declarations for export of goods and services (3 marks)


Answer :Please refer to 2001 Dec [4] (c) of Descriptive Questions on page. no.1252010 - Dec [3] (a) Distinguish between the following :

(i) ‘Foreign exchange’ and ‘foreign security’. (5 marks)(iii) ‘Automatic route’ and ‘approval route’ under the FDI policy. (5 marks)

Answer :(i) Please refer to 2000 Dec [1] {C} (iv) of Short Notes on page. no.108

(iii) ‘Automatic route’ and ‘approval route’ under the FDI policyBasis Automatic Route Approval Route

Meaning As the name suggest automatic routecomes those cases wherein theforeign investment does not calls forobtaining any permission/ approvalfrom Government of India.

Approval route on the otherhand takes into account thosecases wherein consents ofFIPB i.e. Foreign InvestmentPromotion Board is to taken

Example Foreign investment in case of miningand exploration

Areas of Defence

2010 - Dec [4] (a) With reference to the relevant provisions of the Foreign ExchangeManagement Act, 1999 and the rules and regulations made thereunder, advise on thefollowing:

(i) Shyam, an Indian businessman, is interested in remitting US $8,000 for purchaseof trade mark/franchise in India.

(ii) Suresh, a person resident in India, desires to take a life insurance policy from aforeign insurance company, the yearly premium of which is US $25,000.

(iii) Desire Ltd., a company incorporated outside India, wants to buy shares up to10% of paid-up capital of an Indian company engaged in infrastructuredevelopment.

(iv) Aadarsh Ltd., an Indian company, wants to issue FCCBs for the purpose ofinvesting in the stock market.

(v) An Indian company engaged in software business intends to adjust the value ofits exports towards the value of imported items. (1 mark each)

Answer :(i) Yes Shyam is permitted to remit US $ 8000 for purchasing of trade

mark/franchisee.Please refer to 2007 June (4) (a) (iv) of practical Questions on page. no.136

(ii) Yes, Suresh can take a life insurance policy from foreign insurance company, theyearly premium of which is US $ 25,000.Please refer to 2008 Dec [4] (a) (ii) of Practical Question on page no.103

(iii) Y Subject to compliance of specified conditions, 100% FDI is permitted in caseof infrastructure development companies.


(iv) No, Adarsh Ltd. which is an Indian company cannot issue FCCBs for the purposeof investing the same in the stock market.Y Pleaser refer to 2007 Dec [4] (a) (ii) of Practical Questions on page. no.137Y However, investing the funds in the stock market is restricted.

(v) Y Indian company engaged in software business can adjust the value of itsexports towards the value of imported items.

Y The Indian company shall be required to obtain prior permission of RBI2010 - Dec [5] (b) What are the exemptions to the prohibition of acceptance of foreigncontribution under the Foreign Contribution (Regulation) Act, 1976 ? (5 marks)Answer :Please refer to 2008 - Dec [4] (b) of Descriptive Questions on page no.1022011 - June [4] (a) With reference to the relevant provisions of the Foreign ExchangeManagement Act, 1999 and the rules and regulations made thereunder, advise on thefollowing :

(i) Karan, a person resident in India, borrows US $20,000 from his friend residentoutside India.

(ii) Rakesh, a person resident in India, is interested in extending an invitation toGeorge, a person resident outside India, to stay as his guest while on a visit toIndia.

(iii) A person, resident outside India, is interested to repatriate outside India the saleproceeds of an immovable property held in India.

(iv) A person, resident in India, wants to acquire immovable property outside Indiaby way of gift from a person who is resident outside India.

(v) A foreign investor is interested to invest in an Indian company which is a smallscale industrial unit. (1 mark each)

Chapter - 6 : Pollution Control and Environmental Protection2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes onthe following :

(iii) Standards for emission of environmental pollutants (3 marks)Answer :Please refer to 2001 June (7) (iii) of Descriptive Questions on page. no.154Y Section 7 of environmental protection Act, 1986 prohibits discharge of pollutants in

excess of prescribed standards.Y The aforementioned standards for emission have been prescribed by virtue of

schedule I to the environmental protection Rules 1986.Y Apart from these standards, the Central Board or State Board enjoy the power to

provide for more stringent and vigilant standards than prescribed in schedule.2010 - Dec [5] (c) Write a note on recent government initiatives to contain environmentalpollution in the country. (5 marks)Answer :Please refer to 2009 June [5] (b) of Descriptive Questions on page. no.142


2011 - June [1] {C} With reference to the relevant legal enactments, write short noteson the following :(vii) Sustainable development. (3 marks)

2011 - June [5] (a) “Environmental pollution is the price a country has to pay foreconomic development.” Comment. (5 marks)2011 - June [5] (b) Write a note on the efficacy of existing regulatory frameworkproviding for environmental protection in the country. (5 marks)Chapter - 7 : Management of Intellectual Property Rights2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes onthe following :

(iv) Restoration of lapsed patents (3 marks)(v) Term of copyright (3 marks)

Answer :(iv) Please refer to 2005 Dec (1) {C} (vi) of Short Notes on page. no. 175(v) In case of copyright, the author of work of art or any other work in respect of

which copyright exists, is granted an exclusive right to make copies or reproducethe subject matter for a certain period.Y The period or term of copyright is defined under section 22 to 29 of the

copyright Act, 1957Y The term of copyright can be expressed by means of the following table:

S. No. Copyright in relation to Term of copyright

1. C Literary workC Artistic workC Dramatic workC Musical work

Life of author +60 years more

2. C Anonymous workC PhotographsC Cinematographic filmC Sound RecordingsC Government work

60 years from the end of year inwhich the work was first published

3. C Broadcasts made bybroadcasting organization

25 years from the end of the year inwhich the broadcast was first made

2010 - Dec [3] (a) Distinguish between the following :(ii) ‘Trade mark’ and ‘certification trade mark’. (5 marks)

Answer :Distinction between Trade mark and Certification Trade Mark : The term Trade markhas been defined under Section 2(1)(zb) of the Trade Marks Act, 1999 as to mean amark capable of being represented graphically and which is capable of distinguishing


the goods or services of one person from those of others and may include shape ofgoods, their packaging and combination of colours; and

(i) A registered trade mark or a mark used in reiation to goods or services for thepurpose of indicating or so as to indicate a connection in the course of tradebetween the goods or services, as the case may be, and some porson having theright as proprietor to use the mark; and

(ii) In relation to other provisions of the Act, a mark used or proposed to be used inrelation to goods or services for the purpose of indicating or so to indicate aconnection in the course of trade between the goods or services, as the casemay be, and some person having the right, either as proprietor or by way ofpermitted user, to use the mark whether with or without any indication of theidentity of that person, and includes a certification trade mark or collective mark.

Certification Trade Mark : Section 2(1)(e) of the Trade Marks Act, 1999 defines theterm certification trade mark as to mean a mark capable of distinguishing the goods orservices in connection with which it is used in the course of trade which are certified bythe proprietor of the mark in respect of origin, material, mode of manufacture of goodsor performance of services, quality, accuracy or other characteristics from goods orservices not so certified and registerable as such in respect of those goods or servicesin the name, as proprietor of the certification trade mark, of that person.2011 - June [1] {C} With reference to the relevant legal enactments, write short noteson the following :

(v) Patent agent (3 marks)2011 - June [3] (a) Distinguish between the following :

(ii) ‘Registered proprietor of a trade mark’ and ‘registered user of a trade mark’.(iv) ‘Patent’ and ‘patent of addition’. (5 marks each)

2011 - June [4] (c) Mention the provisions of the Trade Marks Act, 1999 relating toassignment and transmission of registered trade marks. (5 marks)Chapter - 8 : Prevention of Money Laundering2010 - Dec [1] {C} With reference to the relevant legal enactments, write short notes onthe following :

(vi) Process of money laundering (3 marks)Answer :Please refer to 2004 Dec [1] {C} (v) of Short Notes on page. no 2092010 - Dec [5] (a) How is the property involved in money laundering dealt with under thePrevention of Money Laundering Act, 2002 ? (5 marks)Answer :Y Section 5 of the Prevention of Money Laundering Act 2002 deals with the

provisions related to property involved in money laundering.Y It provides for the attachment of the property involved in money laundering.Y The Director or officer authorised by the director not below the position of deputy

director is empowered to attach such property.


Y He also enjoys the power of provisional attachment of the property in case thecharge cannot be fully established.

Y Provisional attachment will have effect for a period of not more than 150 days fromthe date of order.

2011 - June [5] (c) “Despite the deleterious impact of money laundering ondevelopment, it has, of late, assumed alarming proportions and its growth has beencancerous.” Discuss. (5 marks)Chapter - 9 : Minimum Wages Act, 19482010 - Dec [6] Write notes on the following :

(v) Procedure for fixing and revising minimum wages under the Minimum WagesAct, 1948. (5 marks)

Answer :Please refer to Question no. 2 of topic not yet asked but equally important forexamination of chapter 9 Minimum Wages Act, 1948 on page. no.2152011 - June [6] Write notes on the following :

(iv) Object and scope of the Minimum Wages Act, 1948. (5 marks)Chapter - 10 : Payment of Bonus Act, 19652010 - Dec [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(ii) Growell Ltd. declared minimum bonus in an accounting year as there was noallocable surplus. However, the workmen claimed that the management wasliable to pay higher amount of bonus in view of the terms of settlement enteredinto between the workmen and the management. Is the plea of the workmentenable in law ? (4 marks)

Answer :Y Yes, the plea of the workmen is tenable in lan.Y Though, the company Growell Ltd. has rightly declared minimum bonus in the

accounting as there was no allocable surplus, yet have entered into settlement withthe workmen for higher bonus which needs to be abide by.

2011 - June [6] Write notes on the following :(iii) Classes of employees not covered under the Payment of Bonus Act, 1965.

(5 marks)2011 - June [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(i) Roler Coaster Ltd. is engaged in the manufacture of electronic goods. Thecompany has been paying puja bonus to its workers during Diwali festival sincethe beginning of its operations. Subsequently, the Payment of Bonus Act, 1965became applicable to the company. The management wants to discontinue pujabonus on the ground that the company is paying bonus as per the Payment ofBonus Act, 1965. Is the management justified ? (4 marks each)


Chapter - 11 : Payment of Gratuity Act, 19722010 - Dec [6] Write notes on the following :

(iii) Concept of ‘continuous service’ under the Payment of Gratuity Act, 1972.(5 marks)

Answer :Please refer to 2009 Dec [6] (i) of Short Notes on page no.2272010 - Dec [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(i) Suresh retired on attaining the age of superannuation. After retirement, it wasnoticed that he had misappropriated travelling allowance drawn by him. Theemployer decided to deduct the misappropriated amount from the gratuitypayable to him. Is the action of the employer legally tenable ? (4 marks)

Answer :No the action of the employer is not legally tenable.Y The facts of the given case study show resemblance with that of Mathur Spinning

Mills v/s D.C. of labour & othersY Since Suresh has retired and his services have ended, the employer is not

competent to take any sort of disciplinary action against him.Y Thus, Suresh will be entitled to receive the amount of gratuity.2011 - June [6] Write notes on the following :

(vi) Rights and obligations of the employer under the Payment of Gratuity Act, 1972.(5 marks)

2011 - June [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(ii) Dinesh absented himself from duty without applying for leave and left the job.When he claimed gratuity, the company refused to pay gratuity quoting hisabsence from duty without proper leave resulted in break in service. Will he getgratuity ? (4 marks)

Chapter - 12 : Employee;s Provident Fund Miscellaneous Provisions Act, 19522010 - Dec [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(v) Galaxy Hotels Ltd., located in Aurangabad (Maharashtra), is covered under theprovisions of the Employees’ Provident Funds and Miscellaneous Provisions Act,1952. Recently, it started a new restaurant in Belgaum (Karnataka) where 15employees were employed. The provident fund authorities demandedcontribution in respect of 15 employees in the new establishment contending thatit is a part of Galaxy Hotels ‘Ltd. Is the demand of provident fund authoritiesjustified ? (4 marks)

Answer :Y No, the demand of the provident fund authorities is not justified.


Y It is of utmost necessity to ensure that whether there is any inter connection- somesort of common control and financial interlinkage between thebranches/department so as to establish that it the part of parent organisation.

2011 - June [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(iii) Hotel Amravati is managed by a firm employing more than 100 employees andcovered under the provisions of the Employees’ Provident Funds andMiscellaneous Provisions Act, 1952. Some of its partners started a newrestaurant in the premises registering the restaurant as a new unit as per theapplicable State enactment. The restaurant employed 15 employees and themanagement of restaurant took a stand that the restaurant is a differentestablishment and is not covered under the Employees’ Provident Funds andMiscellaneous Provisions Act, 1952. Will it succeed ? (4 marks)

Chapter - 13 : Employees’ State Insurance Act, 19482010 - Dec [6] Write notes on the following :

(iv) Employees’ Insurance Court constituted under the Employees’ State InsuranceAct, 1948. (5 marks)

Answer :Y Employees Insurance court (EIC) is constituted under section 74 of the employees

State Insurance Act, 1948.Y State Government is empowered to notify the EIC in the official Gazette.Y The judge of such court should be either-

C Judicial officer orC Legal practitioner for at least 5 years.

Y EIC needs to perform the function of both adjudicating disputes as well asdetermining the claims.

2011 - June [7] (a) Distinguish between the following :(i) ‘Sickness benefit’ and ‘medical benefit’ under the Employees’ State Insurance

Act, 1948. (5 marks)Chapter - 14 : Workmen’s Compensation Act, 19232010 - Dec [6] Write notes on the following :

(ii) The concept of ‘compensation’ under the Workmen’s Compensation Act, 1923.(5 marks)

Answer :Y Section 2(1)(c) of the Workmen’s Compensation Act, 1923 defines ‘Compensation’

to mean.Y Schedule II & III provide for the diseases in relation to which the workmen is entitled

to receive compensation.Y Compensation is to be paid by the employer when workman (as provided in

schedule II) meets with an accident resulting in some disability (as specified inschedule III)


Y The amount of compensation (calculated using factor specified in schedule IV)needs to be paid as soon as it falls due.

2010 - Dec [7] (a) Distinguish between the following :(ii) ‘Partial disablement’ and ‘total disablement’ under the Workmen’s Compensation

Act, 1923. (5 marks)Answer :Please refer 2004-June [7] {C}(a) (ii) on page no.2562010 - Dec [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(vi) Sajid lost his mental balance as a result of an injury by accident and committedsuicide. Is the employer liable to pay compensation under the Workmen’sCompensation Act, 1923 ? (4 marks)

Answer :Yes, the legal heir of Sajid will be entitled to receive compensation Y Suicide committed by Sajid was the result of the mental trauma that he suffered on

account of injury.Y If the injury arises in course of employment, suicide taking place consequently will

also be within the scope of employment. Y Thus, the employer will be liable to pay compensation under the Workmen’s

Compensation Act, 1923. Chapter - 16 : Industrial Disputes Act, 19472010 - Dec [6] Write notes on the following :

(vi) Unfair labour practices on the part of workmen and trade unions of workmenunder the Industrial Disputes Act, 1947. (5 marks)

Answer :Please refer to 2001 June [5] {C} (a) (b) of Descriptive Questions on page. no.2782010 - Dec [7] (a) Distinguish between the following :

(i) ‘Award’ and ‘settlement’ under the Industrial Disputes Act, 1947. (5 marks)Answer :Please refer to 2004 Dec [7] {C} (a) (ii) of Descriptive Question on page no.2802010 - Dec [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(iii) Mohan has been working in a foundry for the last 20 years. Recently, it wasfound that he was suffering from diabetes. Based on that, the managementterminated his services. Does the action of the management tantamount toretrenchment ? (4 marks)

(vii) A copy of the memorandum of settlement was not despatched by the conciliationofficer to the appropriate Government. Will the settlement be treated as invalid? Give reasons. (4 marks)

Answer :


(iii) Mohan has been working in a foundry for the last 20 years.Y Yes, the action of the management tantamount to retrenchment.Y A person suffering from diabities cannot be regarded as unfit for the

organization.Y Since there was no support for medical illness, the termination of services

of Mohan amounts to retrenchment.(vii) Yes, the settlement will be treated as invalid.

Y Section 12 of the Industrial Disputes Act, 1947 stipulates that theconciliation officer, needs to send report in relation to settlement of thedispute to the Appropriate Governments.

Y Even in case the settlement has taken place without conciliation officer asan intermediary, the parties need to sent a copy of the same to the labourcommissioner.

Y Since the statutory requirement has not been fulfilled, the settlement shallbe treated as invalid.

2011 - June [6] Write notes on the following :(v) Legality of strike under the Industrial Disputes Act, 1947. (5 marks)

2011 - June [7] (a) Distinguish between the following :(ii) ‘Courts of inquiry’ and ‘labour courts’ under the Industrial Disputes Act, 1947.

(5 marks)2011 - June [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(iv) Promod Electronics is a small scale industry (SSI) employing 15 workmen. Dueto a fall in demand for its products, the management decided to lay-off itsworkmen. The workmen contended that they cannot be laid-off as there is noprovision to lay-off in the terms and conditions of appointment. Examine thelegality of the action of the management. (4 marks)

(vii) The members of a trade union who are not workmen of the employer raised adispute and sought redressal from the authorities. Will they succeed in theirdispute ? (4 marks)

Chapter - 17 : Industrial Employment (Standing Orders) Act, 19462010 - Dec [7] (a) Distinguish between the following :

(iii) ‘Draft standing orders’ and ‘certified standing orders’ under the IndustrialEmployment (Standing Orders) Act, 1946. (5 marks)

Answer :Please refer 1999 Dec [3] (iv) on page. no. 2912010 - Dec [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(iv) Naresh, a workman abused his supervisor in a public place outside the factorypremises, for having refused to sanction leave on compassionate grounds. Ona complaint lodged by the supervisor, the management initiated disciplinary


proceedings against Naresh for the act of misconduct. Naresh contended that hisaction did not amount to misconduct. Is his contention tenable ? (4 marks)

Answer :Y The facts of the case are quite similar to that of BPL India Ltd.Y The contention of Naresh is not legally tenable.Y Even if there is act of breach of discipline outside the factory premises in a public

place, the act shall be regarded as misconduct.Y The only requirement which needs to be fulfilled is that misconduct should be in

relation to the job only.2011 - June [6] Write notes on the following :

(i) Matters to be provided in standing orders under the Industrial Employment(Standing Orders) Act, 1946. (5 marks)

2011 - June [7] (a) Distinguish between the following :(iii) ‘Model standing orders’ and ‘certified standing orders’ under the Industrial

Employment (Standing Orders) Act, 1946. (5 marks)2011 - June [8] Attempt the following stating relevant legal provisions and decided caselaw :

(vi) Gemini Ltd. has an industrial unit employing 500 workmen but has not got thestanding orders certified under the Industrial Employment (Standing Orders) Act,1946. The management initiated proceedings against one of its workmen formisconduct. The management is of the view that as there are no certifiedstanding orders applicable to the factory establishment, it is under no obligationto follow any procedure except the principles of natural justice. State whether theview held by the management is legally valid. (4 marks)

Chapter - 18 : Factories Act, 19482010 - Dec [6] Write notes on the following :

(i) Provisions relating to ‘hazardous processes’ under the Factories Act, 1948.(5 marks)

Answer :Please refer 2009 - Dec [6] (iv) of Short Notes on page. no.3002011 - June [6] Write notes on the following :

(ii) General duties of an ‘occupier’ under the Factories Act, 1948. (5 marks)2011 - June [7] (a) Distinguish between the following :

(iv) ‘Premises’ and ‘precincts’ under the Factories Act, 1948. (5 marks)2011 - June [8] Attempt the following stating relevant legal provisions and decided caselaw, if any :

(v) A government enterprise issues raw materials to the weavers registered underit to manufacture handloom cloth as per the specifications given. The weaverstake raw material and manufacture cloth in the looms installed by them. Thegovernment enterprise procures the finished goods from the weavers. State


whether weavers are the workers of the government enterprise under theprovisions of the Factories Act, 1948. (4 marks)

Chapter - 19 : Objective Questions2010 - Dec [2] State, with reasons in brief, whether the following statements are true orfalse. Attempt any five.

(i) Small scale units are free from locational restrictions.(ii) A SEZ unit may opt out of the SEZ scheme at any time.(iii) The manufacture of items reserved for the small scale sector can also be taken

up by non-small scale units.(iv) Patents are granted merely to enable the patentees to enjoy a monopoly for the

importation of the patented article.(v) The jurisdiction of the State Consumer Disputes Redressal Commission is only

appellate or revisional.(vi) Retail package includes a package for retail sales to ultimate consumers who

may be institutional or industrial consumers. (3 marks each)Answer :

(i) True.Y Small scale units are free from locational restrictions.Y Industrial undertakings other than small scale units need to abide by some

sort of locational restrictions.Y For example, such units need to be located atleast 25 kilometers away from

Standard Urban Area in case the population of the city is greater than 1million.

Y However SSI are outside the scope of such restriction(ii) True.

Y A SEZ unit may opt out of the SEZ Scheme at any timeY However, the same calls for obtaining consent from the Development

commission.Y Also, the SEZ unit will be required to pay off the excise duty as well as

custom duty on finished good and imported items as the case may be.(iii) True.

Y The manufacture of items reserved for small scale sector can also be takenup by non-small scale units.

Y However the non-small scale units can do only after applying for industriallicence.

Y Also they need to undertake an export obligation (iv) false.

Y Patents are not granted with the objective to enable the patentees to enjoya monopoly for the importation of the patented article.

Y Section 83 of the Patents Act, 1970 also provides for the same.


(v) False.Y The jurisdiction of the State Consumer Disputes Redressal Commission is

not just appellate or revisional in nature.Y It also entertains original application from complainant.Y Wherein the value of goods and services exceed Rs 20 Lakh but is lesser

than Rs 1 crore, State Consumer Redrssal Commission enjoys the territorialjurisdiction over them.

(vi) False.Y Retail package is defined as per Rule 2b of Standards of weights and

measures (packaged commodities) Rules, 1977.Y Retail package includes a package for retail sales to ultimate consumers

only.Y It does not include institutional or industrial consumers.

2010 - Dec [3] (b) Re-write the following sentences after filling-in the blank spaces withappropriate word(s)/figure(s) :

(i) The foreign trade policy allows export proceeds to be realisedwithin_________months.

(ii) The prior approval of RBI is necessary to make overseas donation exceeding US$_____per remitter per annum.

(iii) Essential commodity is a commodity specified in_________ to the EssentialCommodities Act, 1955.

(iv) The Consumer Disputes Redressal Forum, the State Commission or the NationalCommission shall not admit a complaint unless it is filed, within_________year(s) from the date on which the cause of action has arisen.

(v) Authorised person under the Foreign Exchange Management Act, 1999 includesan authorised dealer,_________, off-shore banking unit or any other person forthe time being authorised to deal with foreign exchange or foreign security.

(1 mark each)Answer :

(i) The foreign trade policy allows export proceeds to be realised within twelvemonths.

(ii) The prior approval of RBI is necessary to make overseas donation exceedingUS$ 5,000 per remitter per annum.

(iii) Essential commodity is a commodity specified in Schedule to the essentialcommodities Act, 1955.

(iv) The Consumer Disputes Redressal Forum, the State Commission or the NationalCommission shall not admit a complaint unless it is filed within two year (s) fromthe date on which the cause of action has arisen.

(v) Authorised person under the Foreign Exchange Management Act 1999 includesan authorised dealer, money changes, off shore banking unit or any other


person for the time being authorised to deal with foreign exchange or foreignsecurity.

2010 - Dec [7] (b) Re-write the following sentences after filling-in the blank spaces withappropriate word(s)/figure(s) :

(i) The ESI corporation to function efficiently has been provided with two wingsnamely_______ and Medical Benefit Council.

(ii) A workman is not entitled to apply under the Workmen’s Compensation Act,1923, if he seeks remedy for grant of compensation in a____________.

(iii) The Contract Labour (Regulation and Abolition) Act, 1970 shall not apply toestablishments in which work is of ___________.

(iv) An ‘arbitrator’ under the Industrial Disputes Act, 1947 includesan_____________.

(v) The rate of contribution towards the Employees’ State Insurance Fund is % and ________ % of employees’ wages by the employers and employeesrespectively. (1mark each)

(c) Choose the most appropriate answer from the given options in respect of thefollowing :

(i) The employer of an establishment to which the Industrial Employment (StandingOrders) Act, 1946 applies shall submit to the certifying officer draft standingorders proposed by him for adoption in that establishment within—(a) 6 Months(b) 4 Months(c) 30 Days (d) 2 Months.from the date on which the Act becomes applicable to the establishment.

(ii) When a new manager is appointed for a factory, the occupier shall send to theInspector of Factories a notice in writing within —(a) 7 Days(b) 15 Days(c) 30 Days (d) 45 Days.

(iii) ‘Basic wages’ under the Employees’ Provident Funds and MiscellaneousProvisions Act, 1952 does not include —(a) Emoluments earned by an employee while on leave (b) Emoluments earned by an employee while on holiday with wages (c) The cash value of any food concession(d) Emoluments earned by an employee which are payable in cash.

(iv) ‘Dependent’ under the Employees’ State Insurance Act, 1948 does not mean anyof the following relatives of a deceased insured person —(a) A widowed mother (b) A widowed grand-mother


(c) A widowed daughter-in-law(d) A widow.

(v) An employee is entitled to receive bonus provided he has worked in anaccounting year in the establishment for not less than —(a) 30 Working days(b) One year(c) 6 Months (d) 8 Months. (1 mark each)

Answer :(b) (i) The ESI corporation to function efficiently has been provided with two wings

namely Standing Committee and Medical Benefit council.(ii) A workman is not entitled to apply the Workmen’s compensation Act, 1923, if he

seeks remedy for grant of compensation in a civil court.(iii) The contract labour (Regulation and Abolition) Act, 1970 shall not apply to

establishment in which work is of casual nature.(iv) An arbitrator under the Industrial Disputes Act, 1947 includes an Umpire.(v) The rate of contribution towards the Employee's State Insurance Fund is 4.75%

and 1.75% of employee's wages by the employers and employees respectively.(c) (i) (a) 6 Months

(ii) (a) 7 Days(iii) (c) The cash value of any food concession(iv) (b) A widowed grand mother (v) (a) 30 working days

2011 - June [2] State, with reasons in brief, whether the following statements are trueor false. Attempt any five :

(i) The consumer forums can entertain a complaint arising out of the contract whichprovides for arbitration of disputes.

(ii) No action for the infringement of copyright can be brought unless the copyrightis registered.

(iii) Indian companies are free to issue rights/bonus shares to non-residentshareholders.

(iv) There is no difference between ‘person resident in India’ and ‘person residentof India’.

(v) A person can accept foreign contribution by way of a gift irrespective of its value.(vi) The Standards of Weights and Measures Act, 1976 provides for the

compounding of offences. (3 marks each)2011 - June [3] (b) Re-write the following sentences after filling-in the blank spaces withappropriate word(s)/figure(s) :

(i) The transfer or issue of foreign security is a _________transaction.


(ii) A person who has acquired or purchased foreign exchange for a specifiedpurpose is unable to use the same and is required to surrender it within____days from the date of its acquisition or purchase.

(iii) The term of every patent granted under the Patents Act, 1970 shall be _____years from the date of filing of application for the patent.

(iv) The literary, dramatic, musical or artistic works enjoy copyright protection for thelife time of the author plus ______years beyond.

(v) The National Consumer Disputes Redressal Commission shall have jurisdictionto entertain complaints where the value of the goods or services and thecompensation, if any, claimed exceeds ` _________. (1 mark each)

2011 - June [7] (b) Re-write the following sentences after filling-in the blank spaces withappropriate word(s)/figure(s) :

(i) Any contract whereby a workman relinquishes any right of compensation fromthe employer shall be _________.

(ii) It shall be the duty of the _________to pay wages to the contract labour.(iii) The function of a certifying officer or the appellate authority is to adjudicate upon

the ________ of the standing orders.(iv) An adolescent worker shall be allowed to work only for ________ hours in a

week.(v) The Contract Labour (Regulation and Abolition) Act, 1970 applies to every

establishment or contractor wherein________ or more workmen are or wereemployed on any day of the preceding 12 months as contract labour.

(1 mark each)2011 - June [7] (c) Write the most appropriate answer from the given options in respectof the following :

(i) The government may review the minimum rates of wages so fixed and revisethe same if necessary at such intervals, not exceeding —(a) 3 Years(b) 5 Years(c) 2 Years(d) 1 Year.

(ii) Every factory or establishment to which the Employees’ State Insurance Act,1948 applies has to be registered within —(a) 15 Days(b) 30 Days(c) 45 Days(d) 60 Days.

(iii) As per the Contract Labour (Regulation and Abolition) Act, 1970 and the centralrules, in case the work is completed before the expiry of the wage period, finalpayment shall be made within —(a) 24 Hours of the last working day


(b) 48 Hours of the last working day(c) 7 Days of the last working day(d) 3 Days of the last working day.

(iv) The term ‘wages’ under the Employees’ State Insurance Act, 1948 does notinclude —(a) Incentives (b) Over-time wages(c) Travelling allowance (d) Any other additional remuneration.

(v) Under the Workmen’s Compensation Act, 1923, the Commissioner forWorkmen’s Compensation shall not entertain any claim unless it is preferredbefore him on the occurrence of the accident, within —(a) 1 Week(b) 6 Months(c) 1 Year(d) 2 Years. (1mark each)

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FOR NOTES

appendix csep m-ii paper 5 (solved scanner) june-11

Documents

relevant legal enactments

small scale sector

small scale units

life insurance policy

shore banking unit

medical benefit council

regulations made thereunder

decided case law