AKSHARA INSTITUTE OF MANAGEMENT &
403-BUSINESS LAW AND ETHICS
Unit-1
Q.1. Discuss About Law of Contract and
Essentials of Valid Contract?
Law of contracts in India defines Contract as an
agreement enforceable by law which offers
personal rights, and imposes personal
obligations, which the law protects and
enforces against the parties to the agreement.
The general law of contract is based on the
conception, which the parties have, by an
agreement, created legal rights and obligations,
which are purely personal in their nature and
are only enforceable by action against the party
in default.
Section 2(h) of the Indian Contract Act,
1872[2] defines a contract as "An agreement
enforceable by law". The word 'agreement' has
been defined in Section 2(e) of the Act as
‘every promise and every set of promises,
forming consideration for each other’
Essential elements of a valid contract
1. Offer and Acceptance
2. Intention to Create Legal Relationship
3. Capacity to Contract
4. Genuine and Free Consent
5. Lawful Object
6. Lawful Consideration
7. Certainty and Possibility of Performance
8. Legal Formalities
Q.2 Give a Brief on Special Contracts?
Special Contracts
1. Indemnity
Section 124 of contract Act defines that ‘‘A
contract by which one party. Promises to save
the other from loss caused to him by the
conduct of the promise himself by the conduct
Prepare By: S.Charan, MBA, Assistant Professor,
TECHNOLOGY
of any other person, is called a conduct of
indemnity”.
Important features of an indemnity
contract:
 Two party.
 Promises for pay compensation of
loss/damage.
 Loss/damage may be the own or other
person.
 Creation of liabilities.
 It must be faith.
 All essential features of valid contract.
 Compensation for actual loss/damage.
 It may be express or implied. Loss/damage
may be caused by some event, or accident,
or some natural phenomenon or disaster.
2. Guarantee Contract
According to section 126 of the contract Act
‘‘A contract of guarantee is a contract to
perform the promise, or discharge the liability,
of a third person in case of his default.”
The person who gives the guarantee is called
the ‘Surety’ or ‘guarantor’ & the person in
respect of whose default the guarantee is given
is called the principal debtor or he is the party
on whose behalf. Guarantee is given and the
person to whom the guarantee is given is
called the ‘Creditor’.
Essential features of a Guarantee Contract
 Three parties
 Three agreement
 Concurrence of the three parties
 Control may be experts or implies
 It may be oral or written
 Liability of surety is secondary is dependent
on principal debtor’s default.
 Guarantee must be in the knowledge of
debtor.
 All essential of a valid contract.
 Guarantee must not be obtained by means of
misrepresentation.
 Existence of a primary liability.
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 AKSHARA INSTITUTE OF MANAGEMENT &
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3. Bailment Unit-2
Sec. 148 defines Bailment as” the delivery of
goods by one person to another for some Q.1.What are the distinguishing features
purpose, upon a contract, that they shall, when between Express and Implied condition and
the purpose is accomplished, be returned or warranties?
otherwise disposed of according to the
directions of the person delivering them”. The
person delivering the goods is called the
Comparison Chart
‘bailor’ and the person the person to whom they
are delivered is called the ‘bailee’.

Essential elements of bailment BASIS FOR EXPRESS IMPLIED

COMPARISON CONTRACT CONTRACT
1. Agreement
2. Delivery of Goods
I. The delivery must be voluntary
Meaning Express contract Implied contract
II. Delivery may be actual or constructive.
is one in which refers to a
3. Purpose the proposal and contract wherein
4. Return of specific Goods
acceptance, that the proposal and
results in an acceptance,
Types of bailment agreement, leading to the
1. On the basis of reward enforceable by contract, is
a) Gratuitous Bailment law, is expressed non-
b) Non-gratuitous Bailment verbally, i.e.
expressed
2. On the basis of Benefit verbally. through other
a) Bailment for the exclusive benefit of the means.
bailor
b) Bailment for the exclusive benefit of the
bailee Contract creation By words By conduct or
c) Bailment for the mutual benefit behavior
4.Agency contract:
Example Leasing Sale by fall of
Meaning of Agency: Agency is relation between Agreement hammer in an
an agent his principal created by an agreement. auction sale.
Section 182 of the Contract Act defines an
Agent as ‘‘A person employed to do any act for
another, or to represent another in dealings with
third persons. The person for whom such act is Definition of Express Contract
done, or whom is so represented is called the Express Contract, as the name suggests is the
principal”. contract, wherein the parties to the agreement,
Essential Features of Agency either orally or in written form, states the terms
1. The principal and conditions of the contract. In short, when the
2. The agent offer and acceptance of the agreement are
3. An agreement communicated verbally, then the contract is said
4. Consideration not necessary to be express.
5. Representative capacity
6. Good faith Irrespective of the mode of expression, the
7. The competence of the principal contract must exhibit the mutual intent of the
parties concerned to be bound. Further, the

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403-BUSINESS LAW AND ETHICS
expression must be spelled out and interpreted.
It encompasses a certain proposal, unconditional
acceptance and adequate consideration.
For example: John writes a letter to Harry,
offering to sell his house to him for 28 lakhs.
Harry, by a written letter, gives his acceptance
of the proposal. Such a contract is known as an
express contract.
Definition of Implied Contract
Implied Contract means a contract which is
inferred by the activities and conduct of the
parties concerned. In other words, a contract in
which the elements, i.e. offer and acceptance is
made, without the use of words, then this type of
contract is known as implied contract. Such a
contract come into being from the assumed
intention of the parties. It can be of two types:
Implied by law: A contract implied by law is
one in which the parties have no intention to
enter into the contract. However, the law
imposes an obligation to perform the contract,
irrespective of the consent of the parties.
For example: Roma, gives books to Alen by
mistake, which belongs to Sera. Now, it is
Alen’s obligation to return the books to Roma;
even there is no intention to get into the contract.
Implied by fact: In a contract implied by the
fact, the obligation is created between the
parties, on the basis of the circumstances and
actions. For example: Purchasing groceries from
mall or retail store.
Key Differences Between Express and
Implied Contract :
 An express contract is a contract, in which the
terms of the contract are verbally
communicated between the partied involved.
On the contrary, an implied contract can be
understood as a contract, which is presumed or
believed to be existed between the parties or
which is expressed by implication.
 In express contract, words are used to manifest
contract, which can be oral or written.
Conversely, in an implied contract is formed
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out of the deeds or conduct of the parties
concerned.
 Trust agreement between the author and
trustee is an example of an express contract.
As against, receiving cash from automated
teller machine is a great example of implied
contract.
Q.2.Define Negotiable Instrument and
Discuss Main Features of Negotiable
Instrument?
Definition of Negotiable Instruments
meaning – It is just a document that has features
of monetary worth and transferability.
Section 13(1) says NIs include promissory
notes, bills of exchange or cheques payable
either to order or to bearer
Characteristics:
 It should be freely transferable either by
simple delivery or by endorsement and
delivery.
 Defects in the title of sellers of these
instruments do not affect persons who
purchase them in good faith.
 Holders of these instruments can sue upon
them in their own names.
Types of Negotiable Instruments
1. Promissory notes
A promissory note refers to a written promise to
its holder by an entity or an individual to pay a
certain sum of money by a pre-decided date. In
other words, Promissory notes show the amount
which someone owes to you or you owe to
someone together with the interest rate and also
the date of payment.
For example, A purchases from B INR 10,000
worth of goods. In case A is not able to pay for
the purchases in cash, or doesn’t want to do so,
he could give B a promissory note. It is A’s
promise to pay B either on a specified date or on
demand. In another possibility, A might have a
promissory note which is issued by C. He could
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endorse this note and give it to B and clear of his
dues this way.
However, the seller isn’t bound to accept the
promissory note. The reputation of a buyer is of
great importance to a seller in deciding whether
to accept the promissory note or not
2. Bill of exchange
Bills of exchange refer to a legally binding,
written document which instructs a party to pay
a predetermined sum of money to the
second(another) party. Some of the bills might
state that money is due on a specified date in the
future, or they might state that the payment is
due on demand.
A bill of exchange is used in transactions
pertaining to goods as well as services. It is
signed by a party who owes money (called the
payer) and given to a party entitled to receive
money (called the payee or seller), and thus, this
could be used for fulfilling the contract for
payment. However, a seller could also endorse a
bill of exchange and give it to someone else,
thus passing such payment to some other party.
It is to be noted that when the bill of exchange is
issued by the financial institutions, it’s usually
referred to as a bank draft. And if it is issued by
an individual, it is usually referred to as a trade
draft.
A bill of exchange primarily acts as a
promissory note in the international trade; the
exporter or seller, in the transaction addresses a
bill of exchange to an importer or buyer. A third
party, usually the banks, is a party to several
bills of exchange acting as a guarantee for these
payments. It helps in reducing any risk which is
part and parcel of any transaction.
3. Cheques
A cheque refers to an instrument in writing
which contains an unconditional order,
addressed to a banker and is signed by a person
who has deposited his money with the banker.
This order, requires the banker to pay a certain
sum of money on demand only to to the bearer
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of cheque (person holding the cheque) or to any
other person who is specifically to be paid as per
instructions given.
Cheques could be a good way of paying different
kinds of bills. Although the usage of cheques is
declining over the years due to online banking,
individuals still use cheques for paying for loans,
college fees, car EMIs, etc. Cheques are also a
good way of keeping track of all the transactions
on paper. On the other side, cheques are
comparatively a slow method of payment
and might take some time to be processed.
The Negotiable Instruments (Amendment)
Bill, 2017
The Negotiable Instruments (Amendment) Bill,
2017 has been introduced in the Lok Sabha
earlier this year on Jan 2nd, 2018. The bill seeks
for amending the existing Act. The bill defines
the promissory note, bill of exchange, and
cheques. The bill also specifies the penalties for
dishonor of cheques and various other violations
related to negotiable instruments.
As per a recent circular, up to INR 10,000 along
with interest at the rate of 6%-9% would have to
be paid by an individual for cheques being
dishonored.
The Bill also inserts a provision for allowing the
court to order for an interim compensation to
people whose cheques have bounced due to a
dishonouring party (individuals/entities at fault).
Such interim compensation won’t exceed 20
percent of the total cheque value.
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Unit-3
Q.1. Explain The Responsibilities of
Directors?
Powers of Directors
The powers of the directors are normally
written in the articles of association of the
company. The shareholders cannot meddle
with the affairs undertaken by the board of
directors till the board makes the decisions
within their specified power. The general
powers of the board of directors are
specified in section 291 of the Companies
Act, 1956.
 The director must not exhibit any power
or do any act, which is not in
accordance with the memorandum of
association of the company or which
violates the Companies Act, 1956.
 No powers are given to the directors
individually.
 Directors have their powers only when
they are with the board of directors.
 Directors are considered to be the first
shareholders of the company.
 Any decision is made if majority of
directors from the board of directors
agree to the decision.
 Resolutions must be passed at the
meetings held by the board of directors
for the directors to enjoy any special
powers.
Duties of Directors
Directors are held responsible for the
company’s compliance with the law. These
duties are normally delegated to a company
secretary, a director or a trusted employee
of the company. It must be ensured that
these responsibilities are being carried out.
 Abbreviated accounts of the
responsibilities can be submitted by
small to medium-sized companies in
most of the cases.
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 It is not mandatory for small-scale with
a maximum turnover of INR 6.5 million
and asset value of INR 3.26 million to
audit their accounts and recruit auditors
for their companies.
 It is no longer a matter of obligation to
most of the private companies to
conduct an Annual General Meeting
every year.
 However, it is compulsory to hold an
Annual General Meeting for a company
if any director or at least five percent of
the members of the company request to
hold one.
 The section of the Amendment Act,
1996, states that it is forbidden for a
company to issue irredeemable
preference shares or preference shares
redeemable beyond 20 years.
 Directors found responsible for any
such issues are termed responsible for
default and a fine of up to INR 10,000
may be imposed as a penalty.
 In case of a proposed contract, the
required disclosure should be made at
the board meeting.
 The decision of whether to enter the
contract has to be taken in the board
meetings.
 A director, who fails to comply with the
requirements as to the disclosure of the
contract, will be punishable with a fine,
which may extend up to INR 50,000.
 For disclosure of receipt of a transfer of
property, any money received by the
directors from the transferee in the
context of the transfer of the property
inside the company, the property of
undertaking must be disclosed.
 If the loss of office of a director of a
company results due to transfer of any
or all shares of a company, the director
does not receive any compensation
unless it is foresaid in a general
meeting.
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 A number of powers and duties can be
exercised by the board of directors in
board meetings.
 It is the duty of a director to attend
board meetings.
 Board meetings should be held from
time to time.
 If a director is unable to attend three
consecutive board meetings or all the
meetings for three months without the
consent of the other board members, his
office will fall vacant.
General Duties of a Director
A director must fulfill the following
general duties −
 Duty of Good Faith
 Duty of Care
 Duty Not to Delegate
Liabilities of Directors
The liability of directors to the company
arises under few circumstances.
 Breach of Fiduciary Duty
 Ultra-verse Acts
 Negligence
 Mala Fide Acts
Appointment and Removal of Directors
The appointment and recruitment of
directors is a crucial procedural
requirement of a company. In accordance
with the Companies Act, 1956, only an
individual can be appointed as a director of
a company.
Qualifications of Directors
1. General Qualifications
A director having a professional and ethical
mind should have knowledge and
experience in specific fields. With a
commitment to create long term values and
commitment to the shareholders, a director
should fully understand his obligations and
practices.
2. Specific Qualifications
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The chairman of the board of directors,
beyond the duties mentioned above, must
fulfill the
The qualifications of the chairman are
slightly different from the qualifications
of directors as follows −
 The chairman must not be an
executive director.
 The chairman must not be involved
in day to day management.
 The chairman must not be an auditor.
 The chairman must not be a legal
consultant.
 The chairman must not be an
employee of the company.
 The chairman must not be a staff of
the company.
 The chairman must not be an advisor
of the company.
 The chairman must not be a person
controlling power of the company.
 The chairman must not be a person
controlling power of the associated
company.
 The chairman must not be a person
controlling power of the auditing
company.
 The chairman must not be a person
who may have conflict of interest.
Removal of Directors
The removal of a director before the expiry
of his term in the office can be done by
passing an ordinary resolution in the
general meeting of a company after the
issuance of a special notice. However, the
above process is not applicable for
promotional directors or directors
appointed by the government.
Q.2.Illustrate Environment Protection
Act?
The Environment (Protection) Act was
enacted in the year 1986.
Article 48A of the Constitution specifies
that the State shall endeavor to protect and
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improve the environment and to safeguard
the forests and wildlife of the country.
Article 51 A further provides that every
citizen shall protect the environment.
Objectives
As mentioned earlier, the main objective of
the Act was to provide the protection and
improvement of environment and for
matters connected therewith. Other
objectives of implementation of the EPA
are:
To implement the decisions made at the
UN Conference on Human Environment
held at Stockholm in June, 1972.
To enact a general law on the areas of
environmental protection which were left
uncovered by existing laws. The existing
laws were more specific in nature and
concentrated on a more specific type of
pollution and specific categories of
hazardous substances rather than on general
problems that chiefly caused major
environmental hazards.
To co-ordinate activities of the various
regulatory agencies under the existing laws
To provide for the creation of an authority
or authorities for environmental protection
To provide a deterrent punishment to those
who endanger human environment, safety
and health
Scope and Applicability
The Environment (Protection) Act is
applicable to whole of India including
Jammu & Kashmir. It came into force on
November 19, 1986.
Definitions
Section 2 of the EPA deals with definitions.
Some important definitions provided in the
Section are:
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Section 2 (a) “Environment” includes
water, air, and land and the
interrelationship that exists among and
between water, air and land and human
beings, other living creatures, plants,
micro-organism and property. This
definition is not exhaustive but an inclusive
one.
Section 2 (b) “Environmental Pollutant”
means any solid, liquid or gaseous
substance present in such concentration as
may be, or tend to be injurious to
environment.
Section 2 (c) “Environmental Pollution”
means the presence in the environment of
any environmental pollutant6 . This implies
the imbalance in environment. The
materials or substances when after mixing
in air, water or land alters their properties
in such manner, that the very use of all or
any of the air water and land by man and
any other living organism becomes lethal
and dangerous for health.
Section 2 (e) “Hazardous Substance”
means any substance or preparation which,
by reasons of its chemical or physico-
chemical properties or handling, is liable to
cause harm to human beings, other living
creatures, plants, micro-organism, property
or environment.
Powers of Central Government to take
measures to Protect and Improve
Environment
a) co-ordination of actions by the State
Governments, officers and other
authorities-
b) planning and execution of a nation-wide
program for the prevention, control and
abatement of environmental pollution;
c) laying down standards for the quality of
environment in its various aspects;
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d) laying down standards for emission or
discharge of environmental pollutants from
various sources whatsoever: Provided that
different standards for emission or
discharge may be laid down under this
clause from different sources having regard
to the quality or composition of the
emission or discharge of environmental
pollutants from such sources;
e) restriction of areas in which any
industries, operations or processes or class
of industries, operations or processes shall
not be carried out or shall be carried out
subject to certain safeguards;
f) laying down procedures and safeguards
for the prevention of accidents which may
cause environmental pollution and remedial
measures for such accidents;
g) laying down procedures and safeguards
for the handling of hazardous substances;
h) examination of such manufacturing
processes, materials and substances as are
likely to cause environmental pollution;
i) carrying out and sponsoring
investigations and research relating to
problems of environmental pollution;
j) inspection of any premises, plant,
equipment, machinery, manufacturing or
other processes, materials or substances
and giving, by order, of such directions to
such authorities, officers or persons as it
may consider necessary to take steps for the
prevention, control and abatement of
environmental pollution;
k) establishment or recognition of
environmental laboratories and institutes to
carry out the functions entrusted to such
environmental laboratories and institutes
under this Act;
l) collection and dissemination of
information in respect of matters relating to
environmental pollution;
m) preparation of manuals, codes or guides
relating to the prevention, control and
abatement of environmental pollution;
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n) such other matters as the Central
Government deems necessary or expedient
for the purpose of securing the effective
implementation of the provisions of this
Act.
Powers of the Court
Directions issued to control vehicular
pollution
In Mehta v Union of India (1998) 6 SCC
63, in order to control the chaotic traffic
conditions and vehicular pollution, the
Supreme Court issued the following
directions.
(a) All commercial/transport vehicles
which are more than 20 years old should be
phased out and not permitted to ply in
Delhi after October 1998
(b) All such commercial /transport vehicles
which are 17 to 19 years old (3200) shall
not be permitted to ply in the National
Capital Territory, Delhi after 1998;
(c) Such of the commercial /transport
vehicles which are 15 and 16 years old
(4962) shall not be permitted to ply after
December 31, 1998
Protection of Coastline of India
In Indian Council for Enviro-Legal Action
v Union of India22 the Supreme Court in
regard to the 600 kms long coast line
emphasized that that it would be the duty
and responsibility of the coastal states and
Union Territories in which the stretch
exists, to see that the notifications issued,
declaring the coastal stretches should be
properly and duly implemented.
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Unit-4
Q.1.Write a Short Note on Consumer
Council?
Vision
To be the trusted voice in striving for
consumer betterment towards safe and
sustainable consumption in a fair and just
market.
Mission
The Council is committed to enhancing
consumer welfare and empowering
consumers to protect themselves.
Consumers include consumers of goods
and services and purchasers, mortgagors
and lessees of immovable property.
 it acts as advocate for consumer
interests;
 it facilitates constructive discussion and
promulgation of pro-consumer policies;
 it sees to empower consumers to help
themselves.
Core Values
 be consumer interests driven, with due
regard to the concept of sustainable
consumption;
 uphold fairness and justice;
 maintain openness in our activities;
 be independent and unsusceptible to
undue influence;
 be accountable;
 discharge our functions proactively,
constructively and with perseverance;
and
 protect the privacy of personal data.
Functions:
The Consumer Council Ordinance
prescribes the following functions for the
Council:-
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 collecting, receiving and disseminating
information concerning goods and
services and immovable property;
 receiving and examining complaints and
giving advice to consumers of goods
and services and purchasers, mortgagors
and lessees of immovable property;
 taking such action as it thinks justified
by information in its possession,
including tendering advice to the
Government or to any public officer;
 encouraging businesses and professional
associations to establish codes of
practice to regulate the activities of their
members; and
 undertaking such other functions as the
Council may adopt with the prior
approval of the Chief Executive in
Council.
Consumer Council Ordinance (Cap. 216)
1. Commencement: 15th July, 1977.
2. Purpose: To incorporate the Consumer
Council, to define its functions and
powers, to negate personal liability of
members and employees for the
Council's or its committees' acts or
omissions, and for the connected
purposes.
Main Duties
(i) Forestalling and Mediating Consumer
Disputes
The Council offers an easily-accessible
convenient service to consumers in pre-
shopping advice and post-shopping
complaints. In the latter, the Council will
act as a mediator in an effort to bring
settlement, by means of conciliation, to the
dispute between the consumer and the
trader.
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 Consumer Complaints Conciliation:
 Exposing malpractices of traders:
 Co-operation with the Police and
Customs & Excise Department:
(ii) Ensuring Product Quality and Safety
The Council conducts tests on consumer
products to provide unbiased comparative
test results to help consumers make rational
choices, to alert them to product hazards
and to induce improvements in product
quality and safety.
(iii) Collecting Market Information on
Services and Goods
Consumers need forever more information
on a wide range of services. To this end,
the Council conducts opinion surveys,
market surveys and price surveys such as
MPF schemes, infant formula price survey,
and annual supermarket price survey to
collect information on services for the
benefit of consumers.
(iv) Promoting Sustainable Consumption
The World Commission on Environment
and Development has defined sustainable
development in its 1987 publication "Our
Common Future" as: "Development that
meets the needs of the present without
compromising the ability of future
generations to meet their own needs."
(v) Advocating Best Practice and
Competition in the Marketplace
The Council undertakes research and study
on an array of marketplace behaviors to
identify issues of concern to consumers, to
analyze their impact on consumer interests,
and to encourage responsible trade
practices and fair competition, thereby
benefiting consumer welfare - with lower
prices, more choices and higher quality of
products and service to bring desired
effects of consumer satisfaction.
(vi) Disseminating Consumer Information
Through various ways to disseminate
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consumer information, the Council seeks to
help consumers exercise rational choices,
enhance their abilities in self-protection
during consumption as well as awareness of
their rights and responsibilities.
(vii) Empowering Consumers through
Education
Education programmes, talks, exhibitions,
training and workshops are periodically
organized for various strata of the society,
including young people, senior citizens and
new immigrants, to provide more
opportunities for learning consumers’
culture and rights, and enhancing their
abilities to help themselves.
(viii) Representing the Consumer Voice
and Networking
Our efforts to promote consumer interests
will prove more effective when working
closely in cooperation with our partners
and stakeholders, locally and overseas.
(ix) Improving Legal Protection for
Consumers
Consumer rights should be protected by
law. The Council keeps abreast of legal
developments that may affect the
consumers in the purchase and use of goods
and services. We took the initiative to
improve and protect consumers' legal rights
by submitting our views in that regard to
the Government and relevant bodies. In
1962, John F. Kennedy, the U.S. President
first introduced four fundamental
consumers’ rights: the right to safety, be
informed, choose and heard. It has since
transformed into eight consumer rights.
(x) Consumer Legal Action Fund
The Council is the Trustee of the Consumer
Legal Action Fund through a Declaration
of Trust executed in November, 1994. The
Fund was established with a Government
grant of $10 million, a further sum of $10
million was granted by the Government to
the Fund in May 2010. The Fund aims to
give easier consumer access to legal
Ph: 7674966695 10

403-BUSINESS LAW AND ETHICS
remedies by providing financial support
and legal assistance for the benefit of
consumers, particularly, groups with
similar grievances in cases involving
significant public interest and injustice.
Q.2.Give a Detail of Right to
Information Act?
The RTI Act 2005: Why-n-What An Act
To provide for setting out the practical
regime of Right to Information for citizens
to secure access to information under the
control of public authorities, in order to
promote transparency and accountability in
the working of every public authority, the
constitution of a Central Information
Commission and State Information
Commissions and for matters connected
therewith or incidental thereto.
The RTI Act 2005: When-n-Where This
Act may be called the Right to Information
Act, 2005. The RTI act 2005 was enacted
by permission and authority of His
Excellency, President of India. This act was
enacted by the Parliament on
15.06.2005 and notified in the Gazette of
India dated 21.06.2005. It extends to the
whole of India except the State of Jammu
and Kashmir.
The RTI Act 2005: Who
Who can exercise his / her right under The
RTI Act 2005? The answer is: Subject to
the provisions of this Act, all citizens shall
have the right to information.
The RTI Act 2005: Definitions
What is Information? Information means
any material in any form, including
records, documents, memos, e-mails,
opinions, advices, press releases, circulars,
orders, logbooks, contracts, reports, papers,
samples, models, data material held in any
electronic form and information relating to
any private body which can be accessed by
Prepare By : S.Charan, MBA, Assistant Professor, ICET CODE:RMRJ,
AKSHARA INSTITUTE OF MANAGEMENT &
TECHNOLOGY
a public authority under any other law for
the time being in force.
What is Record?
Record includes •Any document,
manuscript and file •Any microfilm,
microfiche and facsimile copy of a
document •Any reproduction of image or
images embodied in such microfilm
(whether enlarged or not); and •Any other
material produced by a computer or any
other device
Who is Public Authority?
It is any authority or body or institution of
self government established or constituted.
• By or under the Constitution • By any
other law made by Parliament • By any
other law made by State Legislature • By
notification issued or order made by the
appropriate Government, and includes any-
body owned, controlled or substantially
financed, nonGovernment organization
substantially financed, directly or indirectly
by funds provided by the Govt.
The RTI Act 2005: How
How To Request Information? A person,
who desires to obtain any information
under this Act, shall make a request in
writing or through electronic means in
English or Hindi or in the official language
of the area in which the application is being
made, accompanying such fee as may be
prescribed, to public authority by providing
contact details.
The RTI Act 2005:
Fee Is There Any Fee To Seek
Information? FEE TO BE ACCOMPANIED
WITH THE RTI APPLICATION
• In case of central govt. departments, INR
10.00 by way of cash under proper receipt,
demand draft, bankers cheque, Indian
postal order, money order or cash deposited
at designated post offices.
• In case of state govt. departments,
particularly in Maharashtra state, INR
10.00 by way of cash under proper receipt,
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 AKSHARA INSTITUTE OF MANAGEMENT &
403-BUSINESS LAW AND ETHICS TECHNOLOGY

demand draft, banker’s cheque, money

order or court fee stamp.
The RTI Act 2005: Process
How Is Your Application Dealt? Public
Information Officer (PIO) on receipt of a
request, as expeditiously as possible, and in
any case within thirty (30) days of the
receipt of the request, either provide the
information on payment of such fee as may
be prescribed or reject the request for any
of the reasons specified like security,
copyright, commercials, etc.

The RTI Act 2005: Process

The RTI Act 2005: Cost
Does Information comes at a cost? Oh yes,
because nothing is free. A4 or A3 size
paper Rs 2 for each page plus postage
Fixed price materials At printed cost plus
postage Diskette or Floppy or CD Rs. 50
plus postage Inspection cost Free for first
hour
The RTI Act 2005: Machinery &
Hierarchies
 APIO-Assistant Public Information
Officer PIO- Public Information Officer
 AA- Appellate Authority
 IC- Information Commissioner
 SIC- State Information Commissioner
 CIC- Central Information
Commissioner DOPT -Department of
Personnel & Training
The RTI Act 2005: Imp. Sections
The RTI Act has more than 30 sections and
its subsections. In order to get response
every time, one must study all sections and
amendments in the act from time to time.
Section 3: All citizens have the right
Section 4: Proactive disclosures by
authorities
Section 6: Request for obtaining
information
Section 7: How your requests will be
treated

Prepare By : S.Charan, MBA, Assistant Professor, ICET CODE:RMRJ, Ph: 7674966695 12


403-BUSINESS LAW AND ETHICS
Section 8: Exemptions
Section 19 (1): First appeal
Section 19 (3): Second appeal
Section 20: Penalties and Disciplinary
actions
Unit-5
Q.1. Explain How Ethics Will Have The
Influence on Production and Sales of a
Product?
Ethics and Production
Ethics in production is a subset of
business ethic that is meant to ensure that
the production function or activities are
not damaging to the consumer or the
society. Like other ethics there is a certain
code of conduct or standards to be followed,
however ensuring that the ethics are
complied with is often difficult.
All the production functions are governed by
production ethics but there are certain that
are severely harmful or deleterious which
need to be monitored continuously. The
following are worth mentioning:
1. There are ethical problems arising out of
use of new technologies that are
deleterious to health, safety and
environment. Technological
advancements like genetically modified
food, radiations from mobile phones,
medical equipment etc are less problems
are more of dilemmas.
2. Defective services and products or
products those are innately deleterious
like alcohol, tobacco, fast motor
vehicles, warfare, chemical
manufacturing etc.
3. Animal testing and their rights or use of
economically or socially deprived people
for testing or experimentation is another
area of production ethics.
Prepare By : S.Charan, MBA, Assistant Professor, ICET CODE:RMRJ,
AKSHARA INSTITUTE OF MANAGEMENT &
TECHNOLOGY
4.Ethics of transactions between the
organization and the environment that
lead to pollution, global warming,
increase in water toxicity and diminishing
natural resources.
Dilemma of Ethics in Production
There are certain processes involved in the
production of goods and a slight error in the
same can degrade the quality severely. In
certain products the danger is greater i.e. a
slight error can reduce the quality and
increase the danger associated with
consumption or usage of the same
The dilemma therefore lies in defining the
degree of permissibility, which in turn
depends on a number of factors. Bhopal gas
tragedy is one example where the poisonous
gas got leaked out due to negligence on the
part of the management.
Usually many manufactures are involved in
the production of same good. They may use
similar or dissimilar technologies for the
same. Setting a standard in case of dissimilar
technologies is often very difficult. Social
perceptions also create an impasse
For example the use of some fertilizer by
cola companies in India recently created a
national debate. The same cold drinks which
were consumed till yesterday became
noxious today because of a change in the
social perception that the drinks are not fit
for consumption.
Ethics in Sales and Marketing
Markets present a clash of interest between
various players. There is competition for
resources, customers and price etc, which
breeds ground for activities that may not get
ethical sanctions. A certain code of conduct,
policies and practices called ethics are
required to manage markets and marketing.
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 AKSHARA INSTITUTE OF MANAGEMENT &
403-BUSINESS LAW AND ETHICS TECHNOLOGY

Marketing is the heart of all businesses and
all other functions depend upon the same for
keeping the business moving. It is one
business function that interacts the most
with markets, in fact markets are meant to
sell and they exist only when they sell! In
such a scenario there are bound to be
multiple players and a clash is inevitable.
Such clash leads to malpractices like
hoarding, price competitions, brand wars
and use of unfair tactics, which is precisely
where marketing ethics come into play.
not a need till yesterday and only a luxury.
Today cell phones have become a need and
a status symbol! These are issues that are
being discussed in marketing ethics
nowadays. Marketing ethics is in its budding
stage only considering that it came into
being only in late 1990s.
Q.2 Explain The Concept and Importance
of Social Responsibilities of Business?

Simply put, ethics means principle or values

by which marketing ought to be conducted
in the market place. Logically also when
there are huge number of transactions
involved, a certain code or guiding
principles are required to ensure that
operations and industry competitiveness is
fair and beneficial to the end user. There
are different philosophies or schools of
thought for ethics in marketing, one is the
political philosophy and the other is the
transaction focused.

Whereas one school of thought says that all

marketing efforts should be focused on
maximizing the shareholder value and that
this is the only marketing ethics; the other
believes that that marketing and market is
equally responsible to consumers, other
stake holders and the shareholders. The
tactic of targeting targeted segments,
creating needs that were inexistent till now,
transparency about the source of labor and 1. General public
environmental risks, transparency about the 2. Shareholders or investors
use of source and the ingredients, 3. Employees
appropriate labeling, mentioning associated 4. Customers
health risks, advertising jurisprudence and 5. Government
not making false promises fall within the 6. Local community
ambit of marketing ethics. 7. environment

Lots of marketing and promotion was

carried out for goods and services that were

Prepare By : S.Charan, MBA, Assistant Professor, ICET CODE:RMRJ, Ph: 7674966695 14