LEGAL ASPECTS OF BUSINESS

MID TERM
Q1.a) Discuss important provisions to redress consumer
grievances in consumer protection act 1986.
The Consumer Protection Act was passed in 1986 and it came into force from I July, 1987. The
main objectives of the Act are to provide better and all round protection to consumers and
effective safeguards against different types of exploitation such as defective goods, deficient
services and unfair trade practices. It also makes provisions for simple, speedy and inexpensive
machinery for redressal of consumer's grievances.

Salient Features
1. The salient features of Consumer Protection Act (CPA), 1986 are as follows
2. It applies to all goods, services and unfair trade practices unless specifically exempted by
the Central Government.
3. It covers all sectors-private, public or co-operative.
4. It provides for establishment of consumer protection councils at the central, state and
district levels to promote and protect the rights of consumers and a three-tier quasi-judicial
machinery to deal with consumer's grievances and disputes.
5. It provides a statutory recognition to the six rights of consumers.

STATEMENT OF OBJECTS AND REASONS

The Consumer Protection Bill, 1986 seeks to provide for better protection of the interests of
consumers and for the purpose, to make provision for the establishment of Consumer councils
and other authorities for the settlement of consumer disputes and for matter connected therewith.
2. It seeks, inter alia, to promote and protect the rights of consumers such as-

(a)       the right to be protected against marketing of goods which are hazardous to life and
property;
(b)       the right to be informed about the quality, quantity, potency, purity, standard and price of
goods to protect the consumer against unfair trade practices;
(c)        the right to be assured, wherever possible, access to an authority of goods at competitive
prices;
(d)       the right to be heard and to be assured that consumers interests will receive due
consideration at appropriate forums;
(e)       the right to seek redressal against unfair trade practices or unscrupulous exploitation of
consumers; and
(f)        right to consumer education.

3. These objects are sought to be promoted and protected by the Consumer Protection Council to
be established at the Central and State level.
4. To provide speedy and simple redressal to consumer disputes, a quasi-judicial machinery is
sought to be setup at the district, State and Central levels. These quasi-judicial bodies will
observe the principles of natural justice and have been empowered to give relief of a specific
nature and to award, wherever appropriate, compensation to consumers. Penalties for
noncompliance of the orders given by the quasi-judicial bodies have also been provided.
5. The Bill seeks to achieve the above objects.

ACT 68 OF 1986
The Consumer Protection Bill, 1986 was passed by both the Houses of Parliament and it received
the assent of the President on 24th December, 1986. It came on the Statutes Book as THE
CONSUMER PROTECTION ACT, 1986 (68 of 1986).

Q1.b)Write the procedure to redress the consumer

grievances mentioned in Consumer protection act 1986.
 Procedure on admission of complaint. — (1) The District Forum shall, on
admission  of a complaint, if it relates to any goods,—
(a)    refer a copy of the admitted complaint, within twenty-one days from the date of its
admission to the opposite party mentioned in the complaint directing him to give his version of
the case within a period of thirty days or such extended period not exceeding fifteen days as
may be granted by the District Forum;
(b)     where the opposite party on receipt of a complaint referred to him under clause (a) denies
or disputes the allegations contained in the complaint, or omits or fails to take any action to
represent his case within the time given by the District Forum, the District Forum shall proceed
to settle the consumer dispute in the manner specified in clauses (c) to (g);
(c)   where the complaint alleges a defect in the goods which cannot be determined without
proper analysis or test of the goods, the District Forum shall obtain a sample of the goods from
the complainant, seal it and authenticate it in the manner prescribed and refer the sample so
sealed to the appropriate laboratory along with a direction that such laboratory make an analysis
or test, whichever may be necessary, with a view to finding out whether such goods suffer from
any defect alleged in the complaint or from any other defect and to report its findings thereon to
the District Forum within a period of forty-five days of the receipt of the reference or within such
extended period as may be granted by the District Forum;
(d)   before any sample of the goods is referred to any appropriate laboratory under clause (c),
the District Forum may require the complainant to deposit to the credit of the Forum such fees as
may be specified, for payment to the appropriate laboratory for carrying out the necessary
analysis or test in relation to the goods in question;
(e)   the District Forum shall remit the amount deposited to its credit under clause (d) to the
appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and on
receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of
the report along with such remarks as the District Forum may feel appropriate to the opposite
party;
(f)    if any of the parties disputes the correctness of the findings of the appropriate laboratory, or
disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory,
the District Forum shall require the opposite party or the complainant to submit in writing his
objections in regard to the report made by the appropriate laboratory;
(g)   the District Forum shall thereafter give a reasonable opportunity to the complainant as well
as the opposite party of being heard as to the correctness or otherwise of the report made by the
appropriate laboratory and also as to the objection made in relation thereto under clause (/) and
issue an appropriate order under section 14. 
(2)   the District Forum shall, if the complaint admitted  by it under section 12 relates to goods
in respect of which the procedure specified in sub-section (1) cannot be followed, or if the
complaint relates to any services,—
(a)    refer a copy of such complaint to the opposite party directing him to give his version of the
case within a period of thirty days or such extended period not exceeding fifteen days as may be
granted by the District Forum;
(b)    where the opposite party, on receipt of a copy of the complaint, referred to him under
clause (a)  denies or disputes the allegations contained in the complaint, or omits or fails to take
any action to represent his case within the time given by the District Forum, the District Forum
shall proceed to settle the consumer dispute,—
(i)   on the basis of evidence brought to its notice by the complainant and the opposite party,
where the opposite party denies or disputes the allegations contained in the complaint, or
(ii)  ex parte on the basis of evidence brought to its notice by the complainant where the
opposite party omits or fails to take any action to represent his case within the time given by
the Forum.
(c)   where the complainant fails to appear on the date of hearing before the District Forum,
the District Forum may either dismiss the complaint for default or decide it on merits.
(3)  No proceedings complying with the procedure laid down in subsections [1] and [2] shall be
called in question in any court on the ground that the principles of natural justice have not been
complied with.
(3A) Every complaint shall be heard as expeditiously as possible and endeavour shall be made
to decide the complaint within a period of three months from the date of receipt of notice by
opposite party where the complaint does not require analysis or testing of commodities and
within five months if it requires analysis or testing of commodities:
Provided that no adjournment shall be ordinarily granted by the District Forum unless
sufficient cause is shown and the reasons for grant of adjournment have been recorded in
writing by the Forum:
Provided further that the District Forum shall make such orders as to the costs occasioned by
the adjournment as may be provided in the regulations made under this Act.
Provided also that in the event of a complaint being disposed of after the period so specified,
the District Forum shall record in writing, the reasons for the same at the time of disposing of
the said complaint.     
(3B) Where during the pendency of any proceeding before the District Forum, it appears to it
necessary, it may pass such interim order as is just and proper in the facts and circumstances of
the case.
(4)  For the purposes of this section, the District Forum shall have the same powers as are vested
in a civil court under Code of Civil Procedure, 1908 while trying a suit in respect of the
following matters, namely:—
(i)   the summoning and enforcing the attendance of any defendant or witness and examining the
witness on oath;
(ii)   the discovery and production of any document or other material object producible as
evidence;
(iii)  the reception of evidence on affidavits;
(iv)  the requisitioning of the report of the concerned analysis or test from the appropriate
laboratory or from any other relevant source;
(v)  issuing  of any commission for the examination of any witness, and
(vi)  any other matter which may be prescribed. 
(5)  Every proceeding before the District Forum shall be deemed to be a judicial proceeding
within the meaning of sections 193 and 228 of the Indian Code (45 of 1860), and the District
Forum shall be deemed to be a civil court for the purposes of section 195, and Chapter XXVI of
the Code of Criminal Procedure, 1973 (2 of 1974). 
(6)  Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub-
section (1) of section 2, the provisions of rule 8 of Order I of the First Schedule to the Code of
Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification that every reference
therein to a suit or decree shall be construed as a reference to a complaint or the order of the
District Forum thereon.
(7)  In the event of death of a complainant who is a consumer or of the opposite party against
whom the complaint has been filed, the provisions of Order XXII of the First Schedule to the
Code of Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification that every
reference therein to the plaintiff and the defendant shall be construed as reference to a
complainant or the opposite party, as the case may be. 

Q2.  Discuss Void and Voidable Contracts.

When dealing with contracts, the terms "void" and "voidable" are often confused. Even though
these two contract types seem similar, they are actually completely different.
A contract that is "void" cannot be enforced by either party., The law treats a void contract as if it
had never been formed. A contract will be considered void, for example, when it requires one
party to perform an act that is impossible or illegal.
A "voidable" contract, on the other hand, is a valid contract and can be enforced. Usually, only
one party is bound to the contract terms in a voidable contract. The unbound party is allowed to
cancel the contract, which makes the contract void.  
The main difference between the two is that a void contract cannot be performed under the law,
while a voidable contract can still be performed, although the unbound party to the contract can
choose to void it before the other party performs.
 Some Examples of Void and Voidable Contracts
Void contracts are unenforceable by law. Even if one party breaches the agreement, you cannot
recover anything because essentially there was no valid contract. Some examples of void
contracts include:
  Contracts involving an illegal subject matter such as gambling, prostitution, or
committing a crime.
 Contracts entered into by someone not mentally competent (mental illness or minors).
 Contracts that require performing something impossible or depends on an impossible
event happening.
 Contracts that are against public policy because they are too unfair.
 Contracts that restrain certain activities (right to choose who to marry, restraining legal
proceedings, the right to work for a living, etc.).

Voidable contracts are valid agreements, but one or both of the parties to the contract can void
the contract at any time. As a result, you may not be able to enforce a voidable contract:

 Contracts entered into when one party was a minor. (The law often treats minors as
though they do not have the capacity to enter a contract. As a result, a minor can walk
away from a contract at any time.)
 Contracts where one party was forced or tricked into entering it.
 Contracts entered when one party was incapacitated (drunk, insane, delusional).

Q3.  Write how to file RTI.

Under the Right to Information Act 2005, every Indian citizen has full right to demand any
information from the government if he/she desires to do so. For example: a citizen can demand
information regarding delay in his passports from the Government.
The Government, as per the RTI 2005, is liable to provide the information demanded to the
citizen. If the government authority from which information is demanded fails to do so, the
government authority will be penalized.
There are certain matters which are state oriented such as construction of a road, problems with
irrigation or street light issues. In such case, an RTI application will be filed with the state
authorities.
However, if your matter relates to the departments which are related to the Centre, then the RTI
must be filed with the central government. In case you fail to submit your RTI Application to the
Public Information Officer, you can approach the Central Information Commission. Read further
to know how to file an RTI with the Central Government Departments.

Filing an RTI to a Central Government Department and approaching the Central

Information Commission

1. Central Government Department Identification

The first step to file an RTI with a department of the central government would be to identify from
which department the information has to be obtained. For instance, anything related to income
tax should go to Income Tax department or defence related query should go to Ministry of
Defence.

2. Writing the Application Properly

The next step would be writing your RTI application in the prescribed format. 
Also, this format isn’t mandatory and you can submit your application on a plain paper as well. The
language of the application can be Hindi or English. Similarly, the government can also respond
in either language.

Make sure that the questions you ask relate to only one subject; the application has a chance of
rejection if you ask more than one questions in a single RTI Application. For instance, if you are
enquiring about your passports, then ask questions which are only related to the passports.

3. Make Payment of Fees

As you might know, there is some amount charged for each RTI you file. Thus, to file an application to
a central government department, attach application fee of Rs. 10/- in the form of Indian Postal
Order.

4. Send Application

Once all the above mentioned steps are completed, send your RTI application via speed post/registered
post and wait for the government’s response. If you don’t get a reply within 30 days of sending
the application, you can approach the central information commission. 
About the Central Information Commission:
The Central Information Commission is a government body which has been established to
address the grievances of the people who have not been able to submit an RTI Application due to
the following reasons:

 There is no State Public Information Officer or Central Public Information Officer

appointed
 Either of the officers (PIO) have refused to take the RTI Application.

Q.4 Discuss intellectual property and the kinds of

intellectual property. Visit the ipr.nic.in site and prepare a
brief report.
ANS Intellectual property refers to creations of the mind: inventions; literary and artistic
works; and symbols, names and images used in commerce. Intellectual property is divided into
two categories: 
Industrial Property includes patents for inventions, trademarks, industrial designs and
geographical indications.
Copyright covers literary works (such as novels, poems and plays), films, music, artistic works
(e.g., drawings, paintings, photographs and sculptures) and architectural design. Rights related
to copyright include those of performing artists in their performances, producers of
phonograms in their recordings, and broadcasters in their radio and television programs. 
TYPES OF INTELLECTUAL PROPERTY 
Copyright 
Copyright is a legal term used to describe the rights that creators have over their literary and
artistic works. Works covered by copyright range from books, music, paintings, sculpture and
films, to computer programs, databases, advertisements, maps and technical drawings. 
Patents 
A patent is an exclusive right granted for an invention. Generally speaking, a patent provides
the patent owner with the right to decide how - or whether - the invention can be used by
others. In exchange for this right, the patent owner makes technical information about the
invention publicly available in the published patent document. 
Trademarks 
A trademark is a sign capable of distinguishing the goods or services of one enterprise from
those of other enterprises. Trademarks date back to ancient times when artisans used to put
their signature or "mark" on their products. 
Industrial designs 
An industrial design constitutes the ornamental or aesthetic aspect of an article. A design may
consist of three-dimensional features, such as the shape or surface of an article, or of two-
dimensional features, such as patterns, lines or colour. 
Geographical indications 
Geographical indications and appellations of origin are signs used on goods that have a specific
geographical origin and possess qualities, a reputation or characteristics that are essentially
attributable to that place of origin. Most commonly, a geographical indication includes the
name of the place of origin of the goods. 
Trade secrets 
Trade secrets are IP rights on confidential information which may be sold or licensed. The
unauthorized acquisition use or disclosure of such secret information in a manner contrary to
honest commercial practices by others is regarded as an unfair practice and a violation of the
trade secret protection. 

Vision and Mission 

Intellectual Property Rights is an inevitable tool for today’s globalized economy. Fostering
innovation is one of the sustainable development goals set by the Government of India. “An
India where Intellectual Property stimulates creativity and innovation for the benefit of all” is
the vision of our National IPR Policy. Several initiatives have already proven to foster
innovation like the Make in India, Start-up India, Digital India and Skill India. The Atal
Innovation Mission nurtures the innovative energies across the country in schools and
universities. Under the IPR policy, the cell for IPR Promotion and Management, CIPAM has
been tasked to facilitate creation and commercialization of IP assets in collaboration with the
Office of the Controller General of Patents, Designs and Trademarks. 
The filings for IP rights have considerably increased and the Intellectual Property Offices are
also getting revamped in terms of capacity building. More Examiners have been recruited and
trained in Patents. The Patent Office started functioning as International Searching and
Examining Authority since October 2013. It is encouraging to note that more applicants are
now choosing IPO for international search. Applicants registered as Start-ups and those who
have chosen Indian Patent Office as ISA or IPEA in the corresponding international application
can avail of the facility of Expedited Examination. To ensure quality in all our operations, a
dedicated Quality Assurance Division has been set up in the Patent Office. 

ORGANIZATION STRUCTURE 
A. Who can apply for a patent? 
A patent application can be filed either by true and first inventor or his assignee,
either alone or jointly with any other person. However, legal representative of
any deceased person can also make an application for patent. 
B. How can I apply for a patent? 
A patent application can be filed with Indian Patent Office either with
provisional specification or with complete specification along with fee as
prescribed in schedule I. In case the application is filed with provisional
specification, then one has to file complete specification within 12 months from
the date of filing of the provisional application. There is no further extension of
time to file complete specification after expiry of said period. 
C. Is there provision for filing patent application electronically by online system? 
Yes, one can file patent applications through comprehensive online filing
system at https://ipindiaonline.gov.in/epatentfiling/goForLogin/doLogin. More
information for filing online application is available on the website of Patent
Office i.e. www.ipindia.gov.in. 
D. How can one register for online filing of patent application? 
To register for filing of patent application, the user is required to obtain the
Class II/III digital signature. After obtaining the digital signature, the user can
register himself on the CGPDTM website by creating his user ID and password.