Chandigarh University

University School of Business (USB)

Assignment No. 3
Subject Name & Code: BAB-740
MBA Sem/Year: 4-F
Date of Submission: 6/4/20

Submitted To: Submitted By:

Faculty Name: Ms Ginni Student Name: Vishi Mahajan

Max. Marks: ……………………………. Batch: 2018-2020
Marks Obtained: ……………………….. UID: 18MBA1630
Faculty Signature………………………..
Date: ……………………………………..

 Acknowledgement by the student after viewing the evaluated copy.

Student Name: …………………………….

Signature: …….……………… …………..
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Q1 In which situation will rail transport is beneficial? Write the advantages of rail
transport.

A1 Rail transport is also known as train transport. It is a means of transport, on vehicles

which run on tracks (rails or railroads). It is one of the most important, commonly used and
very cost effective modes of commuting and goods carriage over long, as well as, short
distances. Since this system runs on metal (usually steel) rails and wheels, it has an inherent
benefit of lesser frictional resistance which helps attach more loads in terms of wagons or
carriages. This system is known as a train. Usually, trains are powered by an engine
locomotive running on electricity or on diesel. Complex signalling systems are utilised if there
are multiple route networks. Rail transport is also one of the fastest modes of land
transport.

Rail transport has emerged as one of the most dependable modes of transport in terms of
safety. Trains are fast and the least affected by usual weather turbulences like rain or fog,
compared to other transport mechanisms. Rail transport is better organised than any other
medium of transport. It has fixed routes and schedules. Its services are more certain,
uniform and regular compared to other modes of transport.

Rail transport is an enabler of economic progress, used to mobilise goods as well as

people. Adaptations include passenger railways, underground (or over ground) urban metro
railways and goods carriages. Rail transport has some constraints and limitations also. One
of the biggest constraints of rail transport is heavy cost. Trains need high capital to build and
maintain and the cost is magnified when a whole rail network is to be built. The cost of
construction, maintenance and overhead expenses are very high compared to other modes
of transport. Also, rail transport cannot provide door-to-door service as it is tied to a
particular track. Intermediate loading or unloading involves greater cost, more wear and tear
and wastage of time.

1. Rail transport can be cost effective. Shippers who convert long-haul freight from road to
rail, can save 10-40%. Rail has lower fuel costs compared to road transport, especially when
shipping a high volume of freight. Rail also has less costs associated with drivers and
typically has better costs for drop trailer programs.
2. Shipping via train is more environmentally friendly. Trains burn less fuel per ton mile than
trucks. According to the Association of American Railroads (AAR), freight railroads can
move one ton of freight an average of 479 miles on a single gallon of fuel. On top of that,
using rail transport over road transport can lower greenhouse gas emissions by 75%.
 3. Trains are capable of hauling large loads. Trains can handle high volumes of freight. In
fact, one double-stacked train can hold approximately the same amount as 280 trucks. This
can be very beneficial for shippers with large loads.
4. Railways are reliable. Railways have standardized transit schedules and don’t share their
tracks with the public like trucks do with the road. For that reason, trains aren’t hindered by
traffic and weather the same way trucks are.
5. Rail freight can be efficient. For many types of loads, the average transit time is comparable
to that of road transport. While rail shouldn’t be used for time-sensitive shipments, it can
provide very similar transit times for longer hauls.
6. Rail options provide you with access to capacity. OTR capacity is tight. The driver
shortage, HOS restrictions, and current market demand can make it hard for shippers to find a
truck when they need it without paying an arm and a leg. Since rail transport can be more
efficient and doesn’t have the same kind of limitations, this is a great way for shippers to find
capacity.

Rail as part of an intermodal strategy

Using rail transport as part of an intermodal strategy can have significant benefits. Intermodal is the
use of two or more modes for transporting freight. When combining road and rail, trains are used for
the long-haul portion of the shipment. Trucks are used to bring freight from the origin to the terminal
and then from the terminal to the destination, which is referred to as drayage. Commodities that are
typically moved via intermodal rail include electronics, clothes, machinery, plastics, and lumber.

Q2 Define the terms: Proposal/Offer, Promise and agreement.

A2 Definition of Proposal (Offer)

According to Section 2(A) of the Indian Contracts Act, 1872, when one person signifies to another his
willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other
to such act or abstinence, he is said to make a proposal.

Hence, proposal is synonymous to offer. So, we can say that the above definition of proposal is also
valid for offer.

Definition of Promise

According to Section 2(B) of the Indian Contract Act, 1872, when the person to whom the proposal is
made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted,
becomes a promise.
 Offer is an open invitation by the promisor for the acceptance of the terms and conditions of the
undertaking, which when accepted by the promisee becomes binding on both parties and the proposal
becomes a promise. Hence the difference between an offer (proposal) and a promise lies in acceptance
of the offer (proposal).

Definition of Agreement

The Indian Contract Act, 1872 defines what we mean by “Agreement”. In its section 2 (e), the Act
defines the term agreement as “every promise and every set of promises, forming the consideration for
each other”. Now that we know how the Act defines the term “agreement”, there may be some ambiguity
in the definition of the term promise.

Q3 What are restrictive trade practices?

A3 Restrictive Trade Practice (RTP) is generally one which has the effect of preventing, distorting
or restricting competition. In particular, restrictive trade practices are those which:

(a) Tends to obstruct the flow of capital or resources in production.

(b) Tend to manipulate of prices, conditions of delivery or market supply of goods and services in a
way as to impose unjustified costs, or restrictions.

Some of the Restrictive Trade Practices enumerated in the MRTP Act are:

 Refusal to deal

 Tie-up sales

 Full line forcing

 Exclusive dealings

 Price discrimination

 sale price maintenance

 Area restriction

The Restrictive Trade Practices under the provisions of MRTP Act are deemed legally to be
prejudicial to public interest. The MRTP Act regulates Restrictive Trade Practice (RTP) in the
following three ways:
 Registration of RTP agreements (under Section 33, MRTP Act, 1969).
 Prohibiting sales prices.

 Persons indulging in restrictive practices are restrained by MRTP commission after holding
inquiry. (under Section 37, MRTP Act, 1969).

Under Section 38 of MRTP Act, 1969 provides gateways under which certain restrictive trade
practices might be permissible.