Session 1

Q) Explain the importance for law for engineers?

A) Law plays an important role in valuing an engineer in his/her field. Engineers and
engineering managers need to have a working knowledge of the laws that affect their
work so that they can do the following:
 Follow regulations.

 Stay compliant with governmental ordinances.

 Know which permits are necessary in which circumstances.

 Protect their work.

 Know the boundaries of liability.

 Avoid lawsuits.

 Negotiate contracts.

 Know when to contact a lawyer.

Here are some of the types of laws that engineers and engineering managers should understand generally.

CONTRACT LAWS, TORT LAWS, INTELLECTUAL PROPERTY LAWS AND LAWS AFFECTING THE WORKPLACE

In addition to the law’s engineers need to know, engineering managers may also need to understand the
various laws regulating hiring and the workplace. National and state laws cover everything from hiring
practices to workers’ compensation.

Health and safety laws can be especially important in the engineering field. There are also laws preventing
discrimination in the workplace, laws governing medical leave and laws protecting workers’ rights.

Managers serve different functions in a company, so not all engineering managers need to know the details of
all laws affecting the workplace. Those interested in an engineering management career, however, should be
aware that these laws exist and can affect a manager’s day-to-day duties.

There are some law topics that engineers simply cannot ignore if they want to avoid potential legal troubles.
For engineering and engineering management professionals, taking the time to learn what types of
engineering laws can affect their careers — both positively and negatively — can only be beneficial in the long
run.

Q) Explain the hierarchy of functionaries/branch/organs under the constitution of India

A)

The flowchart below helps to understand the organs under the constitution of India. The Constitution of
India provides for a Parliamentary form of Government, which is federal in structure with certain
unitary features.

Broadly, the governance structure in India can be depicted as follows:

The classifications are explained here in brief:-

Legislature
In India, the Parliament is the supreme legislative body. As per Art 79 of the Constitution of India, the Council
of Parliament of the Union consists of the President and two Houses, which are known as the Council of States
(Rajya Sabha) and the House of People (Lok Sabha).
Executive
The President serves as the Executive Head of the State and the Supreme Commander-in-Chief of the armed
forces. Article 74(1) of the Constitution of India provides that there shall be a Council of Ministers, with the
Prime Minister as its head to aid and advise the President. The President appoints the Prime Minister, Cabinet
Ministers, Governors of States and Union Territories, Judges of the Supreme Court and High Courts,
Ambassadors and other diplomatic representatives. The President is also authorised to issue Ordinances with
the force of the Act of Parliament, when Parliament is not in session.
Judiciary
The Indian Judiciary as of today is a continuation of the British legal system established by the English in the
mid-19th century. The Judiciary of India is an independent body and is separate from the Executive and
Legislative organs of the Indian Government. The Judiciary in India provides the people of the nation the
necessary "auxiliary precaution" required to ensure that the Government functions in favour of the people, for
their amelioration and for the betterment of society.

Q) Explain different types of laws and differentiate between them

A) The 2 types of laws are civil law and criminal law. Every country’s constitution enforces certain laws, for the
purpose of maintaining order and protecting the society from crimes. These laws are broadly classified into
two categories, i.e. Civil Law and Criminal Law. The Civil law lays emphasis on resolving the dispute like family
dispute, rent matters, disputes relating to the sale and so forth. On the other hand, Criminal law stresses on
punishment to the offender, who breaches the law by acts such as, murder, rape, theft, smuggling, etc.
Definition of civil law

Civil law alludes to the system of rules and regulations, which describes and safeguards the rights of the
residents of the country and provides legal remedies to a dispute. It includes cases relating to private matters
such as property, contracts, torts, family dispute, etc.

Definition of criminal law

Criminal Law can be understood as the set of rules and statutes, that highlights the conduct or act prohibited
by the state, as it violates the intention of the law, threatens and harms public and welfare safety. The law
does not only define the crimes but also specifies punishment to be imposed for the commission of a crime.

Here is the comparison chart:-

Comparison Chart
BASIS FOR
CIVIL LAW CRIMINAL LAW
COMPARISON

Meaning Civil law refers to a general law, which is Criminal law implies the law
concerned with disputes between individuals, related to the offenses or crimes
organizations, or both wherein the wrongdoer committed against the society as a
compensates the affected one. whole.

Filed by Plaintiff Government

Purpose To sustain the rights of a person and to To maintain law and order, to
compensate him. protect society and to give
punishment to the wrongdoers.

Starts with Filing a petition to the respective court or Firstly, a complaint is lodged with
tribunal, by the aggrieved party. the police who investigate the
crime, thereafter, a case is filed in
the court.

Deals with It deals with any harm or violation to It deals with the acts which law
individual rights. defines as offences.

Action Sue Prosecute

Outcome Remedy Punishment

Powers of court Award for damages or injunction Imprisonment, fine, discharge.

 BASIS FOR
CIVIL LAW CRIMINAL LAW
COMPARISON

Consequence Defendant is liable or not liable. Defendant is guilty or not guilty.

Session 2

Q) Describe the inter-relationship between constitution and government.

A) Introduction

The Constitution of India is the supreme law of India. It frames fundamental political principles, procedures,
practices, rights, powers, and duties of the government. It imparts constitutional supremacy and not parliamentary
supremacy, as it is not created by the Parliament but, by a constituent assembly, and adopted by its people, with a
declaration in its preamble. Parliament cannot override it.

The Constitution provides for a Parliamentary form of government which is federal in structure with certain
unitary features. The constitutional head of the Executive of the Union is the President. As per Article 79 of the
Constitution of India, the council of the Parliament of the Union consists of the President and two Houses
known as the Council of States (Rajya Sabha) and the House of the People (Lok Sabha). Article 74(1) of the
Constitution provides that there shall be a Council of Ministers with the Prime Minister as its head to aid and
advise the President, who shall exercise his/her functions in accordance to the advice. The real executive
power is thus vested in the Council of Ministers with the Prime Minister as its head.

Thus, we conclude that, the government of India is framed well within the framework of government of India,
here the structure of the government is explained briefly.

The basic structure of government of India

Modelled after the Westminster system for governing the state, the union government is mainly composed of
the executive, the legislature, and the judiciary, in which all powers are vested by the constitution in the prime
minister, parliament and the supreme court. The President of India is the head of state and the commander-in-
chief of the Indian Armed Forces whilst the elected prime minister acts as the head of the executive, and is
responsible for running the union government. The parliament is bicameral in nature, with the Lok Sabha
being the lower house, and the Rajya Sabha the upper house. The judiciary systematically contains an apex
supreme court, 24 high courts, and several district courts, all inferior to the supreme court.

Q) Write a note on Indian legal system.

A) LEGAL SYSTEM OF INDIA

India has one of the oldest legal systems in the world. The history of the present judicial system may be traced
back to the year 1726, when a Charter was issued by King George I for bringing about important changes in the
judicial administration of the Presidency Towns of Bombay, Calcutta and Madras.

The Indian legal system is a unique feature of the Indian Constitution. It is connected with system of courts
that administer both state and union laws.
Basics of Indian Legal System:

The Chief Justice and the other judges of the Supreme Court are appointed by the president. The Supreme
Court has its own advisory and jurisdiction which has the power to enforce the primary rights mentioned in the
Indian constitution. And it solves any argument in between the government of India and all states of India.
While according to ratings the Indian legal system is measured fair, even though there is a large backlog of
different types of cases.

Legal system in Indian villages: In rural areas of India, people are encouraged to resolve their problems with
help of one main legal system which is “PANCHAYATS” It is mainly a group of five respected people of a village
and they are appointed by the local people to solve their problems.

SOURCES OF INDIAN LAW

Sources of law can be divided into two primary and secondary sources.

Primary source: The primary source of law is in the enactments passed by the parliament or state legislatures.
Power to issue ordinances is limited for the president and governor. All types of ordinances become obsolete
in six weeks from the re-assembly of the parliament or state legislature.

Secondary source: Secondary source of law is the judgments of the high court, Supreme Court and other
tribunals. The constitution provides that the law declared by Supreme Court are applicable on all courts within
India.

Apart from that the constitution declares India to a sovereign socialist democratic republic, assuring its citizens
of justice, equality and liberty, and it is the longest written constitution of independent country in the world. It
contains 395 articles 12 schedules and numerous amendments.

Q) Explain the judicial structure of our country

A) Judiciary System of India

Judicial System or the court system is also the Judiciary System. The court has the power to make
decisions and also enforce the law, solve disputes. Judiciary system consists of Judges and other
magistrates, they form the bench or the core of the judiciary system.

On 26 January 1950, the Indian Constitution was written and it is world’s largest constitution
written. The constitution is the source of law in India and also the supreme law of India. Judicial
System of India consists of Supreme Court, High Court, District Court or Subordinate Court.

The above is depicted with the flowchart. As we can, supreme court is the final court of our country
which has the chief justice of India, including 30 judges and other judges for advisory jurisdiction.
Unsolved or still in dispute cases are levelled up to Supreme court to reattain justice.
Session 3

Q Define a contract and explain how it comes into existence.

A) A contract is basically an agreement between two parties creating a legal obligation for both of them to
perform specific acts. Each party is legally bound to perform the specified duties such as rendering a payment
or delivering goods.

In order for the contract to be enforceable, each party must exchange something of value (called
“consideration”).

A contract may be used for various transactions, including the sale of land or goods, or the provision of
services. They may be either oral or written, though courts prefer that agreements be put in writing.

The contract comes into existence by following these mostly;

1. Offer/Acceptance
2. Consideration
3. Certainty/completeness
4. Intention to create legal relations
Q State the essential of a valid contract

A)
 1. Offer/Acceptance
An offer can be defined as a promise to do something (or not to do something) on specified terms
which can be accepted by another party. An acceptance is an unqualified consent to the terms of the
offer. In other words, the acceptance must “mirror” the offer. If a purported acceptance contains new
terms, it is a counter-offer (which extinguishes the original offer) and not an acceptance of the
original offer.

2. Consideration
Consideration simply means that each party gives something of value (for example, services) normally
in exchange for getting something of value (for example, money).

3. Certainty/completeness
The essential terms of the contract must be sufficiently certain and complete for the contract to be
legally binding. The essential terms are those that go to the heart of a contract, such as the obligation
to provide the contracted services, or to pay the agreed price for them.

4. Intention to create legal relations

This is exactly what it sounds like, i.e. whether the parties intended to enter into a contract. The trick
here, however, is that such intention is determined objectively by looking at the language of the
relevant agreement and surrounding circumstances. Courts cannot, and do not, enquire into people’s
minds to see what they may have subjectively intended.
Q) Explain various terms of a contract

A) The 2 terms implied and express contract is essentially as follows:

An express contract is one in which the terms and conditions are spelled out in the contract, either
verbally or in writing. Once an express contract has been established and agreed upon, an identical
implied contract cannot exist.

An implied contract is one in which the terms and conditions are inferred by the actions of the
parties involved.

In an express contract, words, either written or verbal, are used to bring the contract to fruition,
whereas an implied contract comes into existence as the result of actions. Sometimes, the age-old
expression, “actions speak louder than words” has a lot of weight.

Either type of contract is viewed as legally binding insofar as the courts are concerned, as any
contract is one that has been entered into willingly, by the involved parties via an offer and
acceptance. With that said, it is obviously much easier to define and then enforce an express
contract, particularly one that is in writing, as opposed to an implied contract.

Q) Explain kinds of contracts

A) Contracts can be basically be classified into, valid, voidable, voidable and unenforceable contracts.

These are contracts are classified on the basis of the commodity, terms, legal or illegal etc
conditions. They are explained here briefly.
Valid Contracts- if a contract has all of the required elements, it is valid and enforceable in a court of
law. A valid contract creates legal obligations between contractual parties. It gives a party cause to
compel another party to do or not do something. Parties are legally responsible for performance in
the contract. If one party commits breach of contract, the other can take the case to court.

Void Contracts - a void contract is not a contract and has no effect in a court of law and cannot be
enforced in a court of law. Most commonly, a void contract will be missing one or all of the essential
elements needed for a valid contract. Neither party needs to take action to terminate it, since it was
never a contract to begin with.

Voidable Contracts - a voidable contract is a contract which may appear to be valid and has all of
the necessary elements to be enforceable, but has some type of flaw which could cause one or both
of the parties to void the contract. The contract is legally binding, but could become void. If there is
an injured party involved, the injured party or the defrauded must take action, otherwise the
contract is considered valid.

Unenforceable Contracts - an unenforceable contract is a contract which cannot be enforced in a

court of law. This could happen because the terms of the contract are ambiguous, if one party has a
voidable contract or if the Statute of Limitations has expired. The statute of limitations requires
that lawsuits be filed within a certain period of time following a breach. Another reason a contract
might be unenforceable could be because of the Doctrine of Laches. This principal state that a
court has determined a contract is unenforceable due to needless delay or neglect in filing a claim
even though the statute of limitations may not have expired.

Thus, these form the kind of contracts.

Session 4:

Q Explain breach of contract.

Ans: A breach of contract is said to happen when a contract has been broken by a party.It is
a legal cause of action and a civil wrong, in which the agreement is not honored by one or
more of the parties to the contract by non-performance or interference with the other
party's performance.

Q How can a contract be discharged?

There are four ways in which a contract may be discharged:

 performance : When the parties to a contract fulfill the obligations arising under the
contract within the time and manner prescribed
 agreement:. If all parties to a contract mutually agree to replace, remit or alter the
contract, then it leads to a discharge of the original contract due to a mutual agreement.
 breach If a party to a contract fails to perform his obligation acc. To the contract, then
he is said to have committed a breach of contract.
  Discharge by the Impossibility of Performance

If it is impossible for any of the parties to the contract to perform their obligations, then the
impossibility of performance leads to a discharge of the contract

Q What are the remedies in case of breach of contract?

 Specific performance: This means the party in breach will actually have to carry out his
duties according to the contract.
 Damages: Section 73 clearly states that the party who has suffered can claim
compensation for loss or damages since the other party has broken promises under a
legal contract. These damages can be liquidated or unliquidated.
 Injunction : An injunction is a court order restraining a person from doing a particular act.So a
court may grant an injunction to stop a party of a contract from doing something he
promised not to do

Session 5

Q What do you mean by law of torts? What are its elements.

According to Salmond’s definition, Tort as a civil wrong for which the remedy is common law
action for unliquidated damages and which is not exclusively the breach of contract or the
breach of trust or other merely equitable obligation.

There are 4 elements to a tort

 A Duty Of Care

It states that there is a duty of care on part of the person/ manufacturer/ provider of service
towards other people. For example, drivers of cars have a duty of care to drive safely and
not intoxicated or under the influence of drugs

 Breaching Duty Of Care

If the person does not adhere to his duty of care intentionally or unintentionally, then he is
liable for a tort.

 Causation

It refers to the action or the root cause that has caused suffering to the victim. The action
on the victim may be due to neglegience or grudge by the other party. A tort is not held in
absence of a causation.

 Damage

The victim has a right to claim for his damages, for all the losses that it has suffered.
The losses may me mental, physical, monetary etc and he damages provided can also be
either liquidated or unliquidated.

Q Explain the various judicial remedies under law of torts

Three basic judicial remedies are:

 Damage :It is the amount of money paid to the victim party to bring them back to
the position in which they were, before the tort occurred. Measures of damages
depends upon various things like causes, facts and circumstances of the case.

 Injunction : An injunction is a court order restraining a person or party from doing a

particular act. It is a court order in which , instead of compensating the aggrieved
party, it asks the other party to fulfill his part of the promises or refrain from a
particular act.

 Restitution refers to restoring the plaintiff to a position where he was before the tort
occurred. It means restoration of goods back to the owner of the goods. For
example, When a person is wrongfully dispossessed of his property or goods, he is
entitled to the restoration of his property.

Session 6

Q) Difference between company and partnership?

A) The company form of business organization enjoys a number of benefits over the partnership.
This is due to the fact that, in a partnership firm, there must be at least two persons, mutually agree
to run the business and share the profits or losses in a manner prescribed in the agreement. The
maximum number of partners a partnership firm could have is only 20. This gave rise to the
evolution of Company, in which there can be any number of members.

The company is an association of persons who came together for a common objective and share its
profit and losses. Despite the fact that, there are some similarities between the company and
partnership firm, there are a number of dissimilarities as well. Here is a comparison chart
Q) Difference between company and hindu undivided family business?

A)

HUF is a unique form of business existing only in India and is governed by the provisions of the
Hindu Law. It comes into existence by operation of Hindu Law and not out of contract. The firm is
owned by the members of undivided Hindu family, called co-parceners. The business of an HUF is
managed by the senior-most male member, also known as Karta or Manager.

There are two schools of Hindu Law, namely,

Dayabhaga, and;

Mitakshara.

The difference is shown here

Q What is a private company?

A) Section 2(68) of Companies Act, 2013 defines private companies. According to that, private
companies are those companies whose articles of association restrict the transferability of shares and
prevent the public at large from subscribing to them. This is the basic criterion that differentiates private
companies from public companies.

The Section further says private companies can have a maximum of 200 members (except for One
Person Companies). This number does not include present and former employees who are also
members. Moreover, more than two persons who own shares jointly are treated as a single member.
This definition had previously prescribed a minimum paid-up share capital of Rs. 1 lakh for private
companies, but an amendment in 2005 removed this requirement. Private companies can now have a
minimum paid-up capital of any amount.

Q What is OPC (One person company)?

A) Section 2(62) of Companies Act defines a one person company as a company that has only one
person as its member. Furthermore, members of a company are nothing but subscribers to its
memorandum of association, or its shareholders. So, an OPC is effectively a company that has only
one shareholder as its member.

Such companies are generally created when there is only one founder/promoter for the business.
Entrepreneurs whose businesses lie in early stages prefer to create OPCs instead of sole
proprietorship business because of the several advantages that OPCs offer.

Q What is sole proprietor?

A) Sole Proprietorship in simple words is a one-man business organisation. It is the type of entity
that is fully owned and managed by one natural person (not a legal person/entity) known as the sole
proprietor. The business and the man are the same, it does not have a separate legal entity.

A sole proprietorship usually does not have to be incorporated or registered. It is the simplest form
of business organisations and the ideal choice to run a small or medium scale business.

Feat0ures:-

1] Lack of Legal Formalities

A sole proprietorship does not have a separate law to govern it. So there are not many special rules and
regulations to follow. It does not require incorporation or registration of any kind. In most cases, only a
license is required to carry out the desired business.

2] Liability

Since there is no separation between the owner and the business, the liability of the owner is also
unlimited. So if the business is unable to meet its own liabilities, it will fall upon the proprietor to pay
them.

3] Risk and Profit

The owner is the only risk bearer in a sole proprietorship.

However, he also enjoys all the profits from the business.

4] No Separate Identity

In legal terms, the business and the owner are one and the same. No separate legal identity will be
bestowed upon the sole proprietorship.

5] Continuity

Just as we saw above the business and the owner have one identity. So a sole proprietorship is entirely
dependent on its owner.
Q) Difference between sole proprietor and OPC

A)

Q) What is a public company?

A)

2 (71) “public company” means a company which— (a) is not a private company; (b) has a minimum
paid-up share capital of five lakh rupees or such higher paid-up capital, as may be prescribed:
Provided that a company which is a subsidiary of a company, not being a private company, shall be
deemed to be public company for the purposes of this Act even where such subsidiary company
continues to be a private company in its articles ;

Q) What is a government company?

A) A “Government company” is defined under Section 2(45) of the Companies Act, 2013 as “any company
in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State
Government or Governments, or partly by the Central Government and partly by one or more State
Governments, and includes a company which is a subsidiary company of such a Government company”.
Thus, the cardinal feature of a government company is not less than 51% ownership by Central/state
government, either individually or jointly.

Q) What is a foreign company?

A) The term ‘foreign company’ is clearly laid down under Section 2 sub-section 42 of the Companies
Act, 2013 (New Act). A foreign company is any company or body corporate incorporated outside
India which,

has a place of business in India whether by itself or through an agent, physically or through
electronic mode; and

conducts any business activity in India in any other manner

Q) What is the difference between public and government company?

A) Government Company - A Government company is a company in which at least 51% of the paid-
up share capital is held by the Central Government or a State Government or jointly by both.

Public Limited Company - A Public Limited company is the legal designation of a limited liability
company that has offered shares to the general public having limited liability.

Government Company- The auditor of a government company is appointed by the Government on

the advice of the Comptroller and Auditor General of India (CAG). CAG is also empowered to direct
the auditor about the manner and method of auditing.

Public Limited Company - In a Public Limited Company, the auditor is appointed by the General Body
of the Company.

Government Company- Central Government has the power to exempt any provision of the
Companies Act from applying to a Government Company except the provisions regarding Audit.

Private Limited Company - So far as Public Limited Company is concerned, Central Government has
nothing to do with regard to the provisions of the Companies Act.

Government Company- The annual reports along with the audit reports of a Government company
are laid before parliament if it is a Central Government Company. If the Government Company is a
State Government Company, then the annual reports of that company are placed before the State
legislature.

Public Limited Company - In the case of a Public Limited Company, the annual reports are placed
before the General Body.

Q) What is memorandum of association (MOA)?

A) A Memorandum of Association (MOA) is a legal document prepared in the formation and

registration process of a limited liability company to define its relationship with shareholders. The
MOA is accessible to the public and describes the company’s name, physical address of registered
office, names of shareholders and the distribution of shares. The MOA and the Articles of
Association serve as the constitution of the company.

Q) What is AOA, Article of association?

A) The articles of association are concerned with the internal management of the company and aims
at carrying out the objectives as mentioned in the memorandum. These define the company’s
purpose and lay out the guidelines of how the task is to be carried out within the organization. The
articles of association cover the information related to the board of directors, general meetings,
voting rights, board proceedings, etc.

The articles of association are the contracts between the shareholders and the organization and
among the shareholder themselves. This document often defines the manner in which the shares
are to be issued, dividend to be paid, the financial records to be audited and the power to be given
to the shareholders with the voting rights.

Q) What is the difference between AOA and MOA?

A)

Q) What is doctrine of indoor management?

A) According to this doctrine, persons dealing with the company need not inquire whether internal
proceedings relating to the contract are followed correctly, once they are satisfied that the
transaction is in accordance with the memorandum and articles of association.

Shareholders, for example, need not enquire whether the necessary meeting was convened and
held properly or whether necessary resolution was passed properly. They are entitled to take it for
granted that the company had gone through all these proceedings in a regular manner.

The doctrine helps protect external members from the company and states that the people are
entitled to presume that internal proceedings are as per documents submitted with the Registrar of
Companies.

Session 7

Q1:
Write a short note on Industrial Developments and Regulations Act, 1951.

The most important being the Industries (Development and Regulation) Act, 1951
(IDRA) which was enacted in pursuance of the Industrial Policy Resolution, 1948. The Act
was formulated for the purpose of development and regulation of industries in India by the
Central Government.

The main objectives of the Act is to empower the Government:-

(i) to take necessary steps for the development of industries: The Act provides the
necessary means to the Central Government in order to implement its industrial
policy.
(ii) to regulate the pattern and direction of industrial development : The Act permits
the Central Government power to make rules for the registration of existing
undertakings. It can also the production and development of the industries
(iii) to control the activities, performance and results of industrial undertakings in the
public interest.
(iv) Planning and Future Development of New Undertakings

Q2: Write a short note on Industrial Disputes Act, 1947.

Ans:

According to Section 2A: Where any dispute arises between employer and employer,
employer and workmen and workmen and workmen which is connected with employment
or non employment or the terms of employment is called an industrial dispute.

The objective of the Industrial Disputes Act are:

 to settle disputes arising between capital and labour by peaceful mechanisms like
conciliation and arbitration.
 To promote measures for securing good relations between the employer and
workmen.
 The provision for payment of compensation to the workman on account of closure
or retrenchment of the company.
 To prevent exploitation and underpayment to the workmen by the employer.
 To prevent illegal strikes
 To curb any unfair labour practices on part of an employer or a trade union or
workers.

The Industrial Disputes Act extends to whole of India and applies to every Industry and
its various industrial establishment carrying on any business or manufacture of goods.
Q3 Explain the various beneficial provisions for workers under the Factories Act, 1948.

The various beneficial provisions to workers are:

 Section 11. Cleanliness.- It states that every factory shall be kept clean and free from
smoke and other arising effluvials.
 Section 13. Ventilation and temperature.- It states that suitable provisions shall be
made in every factory for maintaining in every workroom adequate ventilation by
the circulation of fresh air.
 Section 17. Lighting.- It states that In every part of a factory where workers are
working, there shall be provided sufficient and suitable lighting.
 Section 18. Drinking water.- It states that In every factory effective arrangements
be made to provide sufficient supply of drinking water
 Section 23. This section prohibits the employment of young persons on dangerous
machines and hazardous working places.
 Section 52. Weekly holidays
 Section 59. Extra wages for overtime.
Session 8

Q) Write a note on Intellectual property and its type?

A) Intellectual property rights are the legal rights that cover the privileges given to individuals who
are the owners and inventors of a work, and have created something with their intellectual
creativity. Individuals related to areas such as literature, music, invention, etc., can be granted such
rights, which can then be used in the business practices by them.

The creator/inventor gets exclusive rights against any misuse or use of work without his/her prior
information. However, the rights are granted for a limited period of time to maintain equilibrium.

The following list of activities which are covered by the intellectual property rights are laid down by
the World Intellectual Property Organization (WIPO) −

 Industrial designs
 Scientific discoveries
 Protection against unfair competition
 Literary, artistic, and scientific works
 Inventions in all fields of human endeavour
 Performances of performing artists, phonograms, and broadcasts
 Trademarks, service marks, commercial names, and designations
 All other rights resulting from intellectual activity in the industrial, scientific, literary, or
artistic fields

There are basically 4 types:-

 Q) Explain the government schemes for protection of intellectual property rights?
A) India has a well-established legislative, administrative and judicial framework to
safeguard Intellectual Property Rights (IPRs), which meets its international obligations while
utilizing the flexibilities provided in the international regime to address its developmental
concerns. India has a Trade Related Aspects of Intellectual Property Rights (TRIPS) compliant,
robust, equitable and dynamic IPR regime
1. National IPR Policy
A comprehensive National IPR policy has been approved that will not only stimulate
innovation and creativity across sectors, but also provide a clear vision regarding IPR issues.
Objectives
• IPR Awareness - Outreach and Promotion - To create public awareness about the
economic, social and cultural benefits of IPRs among all sections of society.
• Generation of IPRs - To stimulate the generation of IPRs.
• Legal and Legislative Framework - To have strong and effective IPR laws, which balance the
interests of rights owners with larger public interest.
• Administration and Management - To modernize and strengthen service-oriented IPR
administration.
• Commercialization of IPRs - Get value for IPRs through commercialization.
• Enforcement and Adjudication - To strengthen the enforcement and adjudicatory
mechanisms for combating IPR infringements.
• Human Capital Development - To strengthen and expand human resources, institutions
and capacities for teaching, training, research and skill building in IPRs.

These also includes strengthening of the institution mechanism to safe guard these
objectives and schemes.

Q) Write a note on patent, patentable and non-patentable inventions.

A) A patent is a form of intellectual property. A patent gives its owner the right to exclude others
from making, using, selling, and importing an invention for a limited period of time, usually twenty
years. The patent rights are granted in exchange for an enabling public disclosure of the invention. In
most countries patent rights fall under civil law and the patent holder needs to sue someone
infringing the patent in order to enforce his or her rights. In some industries patents are an essential
form of competitive advantage; in others they are irrelevant.

Patentable

The basic criteria for patentability of an invention in India are as follows:

 Absolute novelty – the invention should be new and not disclosed to the public anywhere in
the world in any form or through any medium.
 Inventive step/non-obviousness – the invention should not be obvious to a person skilled in
the art in the relevant area of technology and should involve an inventive feature which is
distinctive in nature from the previous inventions made in the same field.
 Industrial application – the new product or process should be capable of being made or used
in an industry and it should have economic significance.

Non patentable (Only a few are enough?)

 an invention which is frivolous or which claims anything obviously contrary to well-

established natural laws;
 an invention whose primary or intended use or commercial exploitation is contrary to public
order or morality or which causes serious prejudice to human, animal or plant life, health or
the environment;
 the mere discovery of a scientific principle or the formulation of an abstract theory;
 the discovery of a living thing or a non-living substance occurring in nature;
 the mere discovery of a new form of a known substance which does not enhance the known
efficacy of that substance, the mere discovery of a new property or new use for a known
substance or the mere use of a known process, machine or apparatus unless the known
process results in a new product or employs at least one new reactant (wherein salts, esters,
ethers, polymorphs, metabolites, pure form, particle size, isomers, mixtures of isomers,
complexes, combinations and other derivatives of known substance will be considered to be
the same substance, unless they differ significantly in properties with regard to efficacy);
 a substance obtained by a mere admixture resulting only in the aggregation of the
properties of the components thereof or a process for producing such substance;
 the mere arrangement, rearrangement or duplication of known devices which function
independently of one another in a known way;
 a method of agriculture or horticulture;
 any process for the medicinal, surgical, curative, prophylactic, diagnostic, therapeutic or
other treatment of human beings, or any process for a similar treatment of animals to
render them free of disease or to increase their economic value or that of their products;
 plants and animals in whole or any part thereof other than microorganisms, including seeds,
varieties and species and essentially biological processes for production or propagation of
plants and animals;
 a mathematical or business method, a computer programme per se or algorithms;
 a literary, dramatic, musical or artistic work or any other aesthetic creation, including
cinematographic works and television productions;
  a mere scheme, rule or method of performing a mental act or playing a game;
 a presentation of information;
 the topography of integrated circuits;
 an invention which, in effect, is traditional knowledge or an aggregation or duplication of
known properties of traditionally known component or components; and
 inventions relating to atomic energy.

Q Concept of product liability with examples/illustrations.

A) In India, Product liability has not been defined in any statute. Product liability is the ability of all
the parties along the chain of manufacturing process of any product for damage caused by that
product. This includes the manufacturer of component parts (at the top of the chain), an assembling
manufacturer, the wholesaler, and the retail store owner (at the bottom of the chain). Products
having inherent defects that cause harm to a consumer of the product, or someone to whom the
product was loaned, given, etc., are the subjects of products liability suits.

the product liability claims could be ascertained under following Indian Statutes:

1. The Consumer Protection Act, 1986

2. The Sales of Goods Act, 1930
3. Specific statutes pertaining to specific goods

Example (Only one case?)

Session 9

Q1 What is copyright and its infringement? What are the remedies available to an injured
party?

Copyright is defined as a person's exclusive right to reproduce, publish, or sell his or her
original work of authorship.
Copyright infringement is the use of copyright protected material without permission of the
copyright holder. This curbs the exclusive rights granted to the copyright holder, such as the
right to reproduce, distribute, display his work.

Remedies available to an injured party.

1) Interlocutary Injunction:

An injunction is a court order restraining a person or party from doing a particular act.

There are three requirements for there to be a grant of interlocutory injunction in case of a
copyright infringement– Firstly, a prima facie case. Secondly, there needs to be a balance of
convenience. Finally, there needs to be an irreparable injury.

3) Anton Pillar Orders

An anton pillar order consists of the following elements.- First, an injunction restraining the
defendant from destroying or infringing goods. Second, an order permitting the plaintiff’s
lawyer to search the defendant’s premises and take goods in their safe custody. Third, an
order that the defendant be directed to disclose the names and addresses of suppliers and
consumers.

4) Mareva Injunction

The Mareva injunction is upheld when the court believes that the defendant is trying to
delay or obstruct the execution of any decree being passed against him.

Q2:

Explain trademark, trademark infringement with remedies. What is passing off?

A trademark is a recognizable symbol that denotes a specific product or service only. It

basically serves to exclusively identify a product or service with a specific company.

Trademark infringement is a breach of the exclusive rights provided to a trademark by an

other person or company, without the permission of the trademark owner.

Remedies available in case of trademark:

1. Injunction:

injunction is referred to as stopping one person from doing particular activity or task
through the judicial process. With respect to trademark infringement, it is restraining a
person from unauthorised use of the trademark.

2. Damages:
Damages refer to the recovery of loss faced by the trademark owner because of the
trademark infringement. The amount of damages will be granted by the court after
considering the actual and anticipated loss of owner due to infringement.

3. Custody of infringing materials:

Under this remedy, the infringer is directed by the court to withhold the production of
infringing material, its shipment or prevent its disposal in any other manner.

Session 10

Q What is IT Act and what are it’s objectives?

The Information Technology Act, 2000 is an Act of the Indian Parliament, notified on 17
October 2000.

Features:

 It is the primary law in India dealing with cybercrime and electronic commerce
 The I.T. Act contains 13 chapters and 90 sections.

It’s various sections are:

 66: Hacking with computer system : imprisonment up to three years, or/and with
fine up to ₹500,000
 66C: Using password of another person : Imprisonment up to three years, or/and
with fine up to ₹100,000
 66E: ;
Publishing private images of others:
Imprisonment up to three years, or/and with fine up to ₹200,000
 68: Acts of cyberterrorism:
Imprisonment up to life.

Objectives of IT Act

 To give legal recognition to any transaction which is done electronically(or e-

commerce) or making use of the internet.
 To give legal recognition to digital signature for the authentication of any information
or matters requiring legal authentication
 To stop cyber crime and protect privacy of internet uses,
 Give legal sanction and also facilitate the electronic transfer of funds between banks
and financial institutions
 Facilitate the electronic filing of documents with Government agencies and also
departments
  Facilitate the electronic storage of data

Q What is digital signature and its working?

Digital signature is a technique used to validate the authenticity of a software or document.

It is a digital equivalent of a handwritten signature or stamped seal. It offers far more
inherent security. Digital signatures rely on certain types of encryption to ensure
authentication

Working

How digital signatures work

Digital signatures are based on public key cryptography technique. Using a public
key algorithm, two mathematically linked keys can be generated: one private and one
public.

The individual who is creating the digital signature uses their own private key to encrypt
signature-related data. The data can be decrypted with only the signer's public key. This is
how digital signatures are authenticated.

Q3 Differentiate between digital and electronic signature.

Digital Signature Electronic Signature

Used to secure a document Mainly used to verify a document

A digital signature is authorized and regulated by

Usually not authorized
certification authorities

Comprised of more security features Comprised of less security features

Common types of digital signature are based on Main types of electronic signature include verbal,
Adobe and Microsoft electronic ticks or scanned signatures.

A digital signature can be verified An electronic signature cannot be verified.

Preferred more than electronic signature due to high

Easy to use but less authentic
levels of authenticity

Particularly concerned about securing the document Shows intent to sign the contract
Q4 Explain e-commerce.

E-commerce is the activity of buying or selling of products on online services or over

the Internet. Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, supply chain management, Internet marketing, online
transaction processing, and automated data collection systems.

There are various types of e commerce models like:

1. Business to Consumer (B2C):

When a business sells a good or service to an individual consumer

2. Business to Business (B2B):

When a business sells a good or service to another business

3. Consumer to Consumer (C2C):

When a consumer sells a good or service to another consumer
4. Consumer to Business (C2B):
When a consumer sells their own products or services to a business or organization ]

Q5Explain cyber crimes.

Cybercrime is defined as a crime in which a computer is the object of the crime (hacking,
phishing, spamming) or is used as a tool to commit an offense (child pornography, hate
crimes).

Cybercriminals may use computer technology to access personal information, business

trade secrets or use the internet for exploitative or malicious purposes.

Some of the types of cybercrimes are:

 Identity Theft

This cybercrime occurs when a criminal gains access to a user’s personal information to steal
funds and access confidential information E.g: They can also open a phone/internet account
in your name, use your name to plan a criminal activity and claim government benefits in
your name.

 Cyberstalking

This kind of cybercrime is an online harassment where the user is subjected to online
threatening messages and emails mostly through social media
  Phishing

This type of attack involves hackers sending malicious email attachments or URLs to users to
gain access to their accounts or computer

 .Online Scams

These are usually in the form of ads or spam emails that include promises of rewards or
offers of unrealistic amounts of money

Session 11

Q) explain consumer protection and competition ACT

A) Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to protect the
interests of consumers in India. It makes provision for the establishment of consumer councils and
other authorities for the settlement of consumers' disputes and for matters connected therewith
also. This statute is regarded as the 'Magna Carta' in the field of consumer protection for checking
the unfair trade practices and ‘defect in goods’ and ‘deficiencies in services’ as far as India is
concerned. It led to the establishment of a widespread network of consumer forums and appellate
courts all over India.

The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition
law. It replaced the archaic The Monopolies and Restrictive Trade Practices Act, 1969.

The Act establishes a Commission which is duty bound to protect the interests of the free and fair
competition (including the process of competition), and as a consequence, protect the interests of
consumers. Broadly, the Commission's duty is:-

 To prohibit the agreements or practices that have or are likely to have an appreciable
adverse effect on competition in a market in India, (horizontal and vertical agreements /
conduct);
 To prohibit the abuse of dominance in a market;
 To prohibit acquisitions, mergers, amalgamations etc. between enterprises which have or
are likely to have an appreciable adverse effect on competition in market(s) in India.

Q) Explain the objective of consumer protection council

A) The Council is focused on enhancing consumer welfare and empowering consumers to ensure
themselves.

Consumers include consumers of goods and administrations and buyers, mortgagors, and tenants of
steady property.

It goes about as a supporter for consumer interests; it sees to engage consumers to encourage
themselves.

Here are the three functions of consumer protection council

1) They guide consumers on the best way to document cases in the consumer court.

2) Sometimes, they additionally speak to individual consumers in the consumer courts.

3) The council is focused on enhancing consumer welfare and empowering consumers to ensure
themselves.

Q) What do you mean by consumer? Define unfair trade practices .

A) An individual who buys products or services for personal use and not for manufacture or resale. A
consumer is someone who can make the decision whether or not to purchase an item at the store,
and someone who can be influenced by marketing and advertisements.

Unfair trade practices

An unfair trade practice refers to that malpractice of a trader that is unethical or fraudulent. These
practices cause an inconvenience or grievance to consumers.

An unfair trade practice is defined under Section 2(1)(r) of the Consumer Protection Act, 1986.
According to this definition, it is a trade practice carried out for the promotion of sale. It is the
distribution or utilisation of any good or service by adopting a deceptive method or practice.

These may include many forms like unfair claims, false claims, charges, quality etc

Q) Explain how rights of consumers can be protected against unfair trade practices?

A) The definition of Consumer right is ‘the right to have information about the quality, potency,
quantity, purity, price and standard of goods or services’, as it may be the case, but the consumer is
to be protected against any unfair practices of trade. It is very essential for the consumers to know
these rights.

However, there are strong and clear laws in India to defend consumer rights, the actual plight of
consumers of India can be declared as completely dismal. Out of the various laws that have been
enforced to protect the consumer rights in India, the most important is the Consumer Protection
Act, 1986. According to this law, everybody, including individuals, a firm, a Hindu undivided family
and a company, have the right to exercise their consumer rights for the purchase of goods and
services made by them. It is significant that, as consumer, one knows the basic rights as well as
about the courts and procedures that follow with the infringement of one’s rights.

In general, the consumer rights in India are listed below:

 The right to be protected from all kind of hazardous goods and services
 The right to be fully informed about the performance and quality of all goods and services
  The right to free choice of goods and services
 The right to be heard in all decision-making processes related to consumer interests
 The right to seek redressal, whenever consumer rights have been infringed
 The right to complete consumer education

Q) what is competition law?

A) Competition law is a law that promotes or seeks to maintain market competition by regulating
anti-competitive conduct by companies. Competition law is implemented through public and private
enforcement.

Competition law, or antitrust law, has three main elements:

 prohibiting agreements or practices that restrict free trading and competition between
business. This includes in particular the repression of free trade caused by cartels.
 banning abusive behavior by a firm dominating a market, or anti-competitive practices that
tend to lead to such a dominant position. Practices controlled in this way may include
predatory pricing, tying, price gouging, refusal to deal, and many others.
 supervising the mergers and acquisitions of large corporations, including some joint
ventures. Transactions that are considered to threaten the competitive process can be
prohibited altogether, or approved subject to "remedies" such as an obligation to divest part
of the merged business or to offer licenses or access to facilities to enable other businesses
to continue competing.