INSTITUTE: Chandigarh University
DEPARTMENT: University School of Business -
MBA
Subject Name and Code: Business, Society and Law 20BAT611
Faculty Name: Dr Sandeep Singh
Assistant Professor
TOPIC OF PRESENTATION
DISCOVER . LEARN . EMPOWER
MRTP
Business, Society
and Law
Course Outcomes Will be covered in this
CO Title Level lecture
Number
CO1 To understand fundamental concepts of business Remember
environment.
CO2 To comprehend how distinct components of business Understand
environment influence on business.
CO3 To interpret how global business environment affects Understand
domestic businesses
3
Learning Objective
• Understanding the meaning the aspects of MRTP
4
MRTP (Monopolies and restrictive trade
practices)
5
Monopolies and restrictive trade practices
• The Monopolistic and Restrictive Trade Practices Act, 1969, was
enacted to ensure that the operation of the economic system does
not result in the concentration of economic power in hands of few.
• To provide for the control of monopolies
• To prohibit monopolistic and restrictive trade practices.
• Have more genuine trade practices
• Reduce the probability of creating artificial demand
Definition of Monopolistic Trade Practice
• The act defines the Monopolistic Trade Practice as “Such practice indicates
misuse of one’s power to abuse the market in terms of production and sales of
goods and services.
• Firms involved in monopolistic trade practice tries to eliminate competition from
the market.
• Then they take advantage of their monopoly and charge unreasonably high
prices.
• They also deteriorate the product quality, limit technical development, prevent
competition and adopt unfair trade practices”
Definition of Unfair Trade Practice:
The act defines Unfair Trade Practice as
• False representation and misleading advertisement of goods and services.
• Falsely representing second-hand goods as new.
• Misleading representation regarding usefulness, need, quality, standard, style
etc of goods and services.
• False claims or representation regarding price of goods and services.
• Giving false facts regarding sponsorship, affiliation etc. of goods and services.
• Giving false guarantee or warranty on goods and services without adequate
tests.
The MRTP Act extended to the whole of India except Jammu and Kashmir
This Act does not applies to
• Any undertaking owned or controlled by the Government Company
• Any undertaking owned or controlled by the Government
• Any undertaking owned or controlled by a corporation (not being a
company established by or under any Central, Provincial or State Act,
• Any trade union or other association of workmen or employees formed
for their own reasonable protection as such workmen or employees,
• Any undertaking engaged in an industry, the management of which has
been taken over by any person or body of persons under powers by the
Central Government,
• Any undertaking owned by a co-operative society formed and
registered under any Central, Provincial or state Act,
• This act is not in force in India currently as it was repealed and was
replaced by Competition Act 2002 with effect from September 1,
2009. The MRTP commission was replaced by Competition
Commission of India.
COURSE OUTCOME
• The student will understand how MRTP affected the business
References
• http://www.helplinelaw.com/civil-litigation-and-others/MRTP/mrtp-a
ct-monopolistic-and-restrictive-trade-practice-under-mrtp-act-1969.ht
ml
• https://www.gktoday.in/gk/the-monopolies-and-restrictive-trade-prac
tices-act-1970/
Suggestive reading
• Paul, J. 2018. Business Environment: Text and Cases, 4thEdition, Tata McGraw
Hill, India,
• Cherunilam, F. 2017. Business Environment: Text and Cases.26thEdition,
Himalaya Publishing, India, ISBN: 978-9352733361.
• Business Environment, 13th Edition, Pearson Education India, India, ISBN:
9788131731581.
Assessment Pattern
15
THANK YOU
For queries
Email: [email protected]
