ASSIGNMENT Course Code : MMPC-013 Course Title : Business Law Assignment Code: = MMPC-013/TMA/JAN/2023 Coverage 2 AMBlocks Note: Attempt all the questions and submit this assignment to the Coordinator of your study centre. Last date of submission for January 2023 session is 30" April, 2023 and for July 2023 session is 31° October, 2023. 1. Discuss the modes of dissolution of a partnership and explain the grounds on which a court can order dissolution of a firm. 2, What is the objective of the Foreign Exchange Management Act? Discuss the mechanism for acquiring property in India by a non-resident and outside India by a resident. Explain the necessity for the Insolvency and Bankruptey Code 2016 (IBC-2016) and briefly discuss the four pillars of Institutional Infrastructure under IBC-2016. 4, Discuss the role of ‘Privacy’ in the context of Digital World. Discuss the personal Data Protection Bill, 2019. 5. Explain the applicability of Consumer Protection (E-Commerce) Rules, 2020 and discuss the duties and liabilities of e-commerce entities under these rules.ignov Gyaniversity aceon ts Publications ASSIGNMENT INFORMATION ‘Assignment Code ‘Course Code MMPC-013 / TMA / JAN / 2023 MMPC-013 | Restonment Name Business Law Year Veviieation Satus 2023 Verified by Professor Note: Attempt all the questions. Q 1. Discuss the modes of dissolution of a partnership and explain the grounds on which a court can order dissolution of a firm. Ans) Partnerships are a popular form of business organization, particularly for small and medium- sized businesses. However, like all forms of business organizations, partnerships can also face challenges that may require dissolution. There are various modes of dissolution of a partnership, including voluntary dissolution, dissolution by operation of law, and dissolution by court order. In this discussion, we will focus on the grounds on which a court can order dissolution of a firm, Modes of Dissolution of a Partnership 1. Voluntary Dissolution Voluntary dissolution occurs when the partners agree to dissolve the partnership. This can occur for a variety of reasons, such as retirement of a partner, a change in the partners’ goals, or the desire to pursue different business opportunities. Voluntary dissolution is typically the easiest and least expensive form of dissolution, as it does not involve court intervention, 2. Dissolution by Operation of Law Dissolution by operation of law occurs when the partnership is dissolved automatically by a change in the law or other external factors. For example, if a partner dies or becomes bankrupt, this may trigger automatic dissolution of the partnership. Similarly, if the partnership agreement provides for dissolution under certain circumstances, such as expiration of a term or achievement of a specific goal, the partnership may be dissolved by operation of law. 3. Dissolution by Court Order Dissolution by court order occurs when a court orders the partnership to be dissolved. This may occur if the partners are unable to agree on the terms of dissolution or if there are disputes regarding the grounds for dissolution. The court may also order dissolution if it finds that the partnership is unable to function effectively or that the partners’ interests cannot be protected without dissolution ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001lignou Gyaniversity ese, Ved Retceton o Grounds for Court-Ordered Dissolution of a Partnership 1. Breach of Partnership Agreement One of the most common grounds for court-ordered dissolution of a partnership is a breach of the partnership agreement. When partners agree to form a partnership, they typically sign a partnership agreement that outlines the terms of their relationship, including their respective rights and obligations. If one partner violates the terms of the agreement, such as by engaging in activities that are prohibited or failing to fulfil their obligations, this may constitute grounds for dissolution. A court may order dissolution if it finds that a partner has breached the partnership agreement and that the breach is so serious that it undermines the entire partnership. 2. Deadlock Another common ground for court-ordered dissolution of a partnership is a deadlock. A deadlock occurs when the partners are unable to agree on an important business decision or course of action, and as a result, the partnership is unable to function effectively. This can occur for a variety of reasons, such as differences in opinion on how to run the business, disagreements on financial matters, or personal conflicts between the partners. If the deadlock cannot be resolved, a court may order dissolution of the partnership to avoid further harm to the business or the partners. 3. Fraud or Mismanagement If one or more partners engage in fraudulent or illegal activities, such as embezzlement or theft, or engage in mismanagement of the partnership, a court may order dissolution of the partnership. Fraud or mismanagement can seriously harm a partnership, and the other partners may have no choice but to seek dissolution to protect their interests, 4. Impracticability Sometimes, events occur that make it impracticable for the partnership to continue its operations. This could include natural disasters, changes in the law, or other external factors that make it impossible for the partnership to continue operating as intended. If the partners cannot find a way to adapt to these changes, a court may order dissolution of the partnership. 5. Illegal Purpose If the partnership is engaged in illegal activities or if its purpose violates the law, a court may order dissolution of the partnership, This can occur if the partnership was formed for an illegal purpose or if it engages in illegal activities after its formation. For example, if a partnership is formed for the purpose of selling illegal drugs, a court may order its dissolution if it becomes aware of this fact. 6. Incapacity If one or more partners become incapacitated, either mentally or physically, and are unable to fulfil their duties and obligations to the partnership, a court may order dissolution. This can occur if a partner becomes seriously il, suffers a disabling injury, or becomes mentally incompetent. ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001ignov Gyaniversity or ts Publications 7. Expulsion if one partner seeks to expel another partner from the partnership, this may also be a ground for court-ordered dissolution. If the partnership agreement does not provide for expulsion or the process is not followed properly, a court may order dissolution to protect the interests of the partners, In conclusion, partnerships can be a flexible and effective form of business organization, but they can also face challenges that may require dissolution. There are various grounds on which a court can order dissolution of a partnership, including breach of partnership agreement, deadlock, fraud or mismanagement, impracticability, illegal purpose, incapacity, and expulsion. To avoid court- ordered dissolution, partners should have a clear and comprehensive partnership agreement and should be proactive in addressing issues that may arise. Q 2. What is the objective of the Foreign Exchange Management Act? Discuss the mechanism for acquiring property in India by a non-resident and outside India by a resident. Ans) The main objective of the Foreign Exchange Management Act is to facilitate external trade and payments, and to promote the orderly development and maintenance of the foreign exchange market in India. The act provides a legal framework for the management of foreign exchange transactions and regulates the flow of foreign exchange in and out of the country. It aims to ensure that foreign exchange transactions are conducted in a transparent and efficient manner and that the interests of the Indian economy are protected. Under FEMA, the Reserve Bank of India (RBI) is responsible for the administration of foreign exchange transactions and the regulation of foreign exchange market in India, It has the power to impose penalties on individuals and entities who violate the provisions of the act and can also take other measures to enforce compliance with the act. Some of the key objectives of FEMA are: a) To facilitate external trade and payments: FEMA aims to promote the smooth and efficient flow of foreign exchange in and out of the country to facilitate external trade and payments. It seeks to provide a legal framework for foreign exchange transactions that is conducive to the growth and development of India's external trade. b) To regulate the foreign exchange market: The act seeks to promote the orderly development and maintenance of the foreign exchange market in India by regulating the flaw of foreign exchange in and out of the country. It aims to ensure that foreign exchange transactions are conducted in a transparent and efficient manner and that the interests of the Indian economy are protected. ©) To prevent unauthorized transactions: FEMA seeks to prevent unauthorized foreign exchange transactions and regulate the activities of authorized dealers and money changers in India. It aims to prevent the misuse of foreign exchange for illegal purposes and to promote compliance with the provisions of the act. ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001Gyaniversity fgnou, ts Publications SUBJECT CODE: MMPC-013 © Our Study Guide Books are designed to help you pass your exams just by reading 80 small pages! Soft Copy Hard Copy From 2150 From %200 Buy Soft Copy Study Guide If. Buy Hard Copy Study Guide If: an interactive online exper You want home delivery yread on a tablet/é nic device. You like to hold and read on pape: to one week for delivery the book instant after payment You don't igh quality printed book ant to print it or need a hard copy Our books have the backing of latest technologies which have allowed us to accurately predict at least 50-70% of the questions that will come in your upcoming exams! Using Artificial Intelligence, Machine Learning and Natural Language Processing, we've compiled the extremely important questions and parts of your syllabus based on historical data from the past 10 years of question papers and assignments. Get Free Demo and Buy Now from www.Gyaniversity.com Cash on Delivery Available @ Amazon.in ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001Ignot Gyaniversity rons ts Publications SUBJECT CODE: MMPC-013 © d) To promote the interests of the Indian economy: FEMA seeks to promote the interests of the Indian economy by regulating the flow of foreign exchange in and out of the country. It aims to ensure that foreign exchange transactions are conducted in a manner that is consistent with the economic policies and objectives of the Indian government. Acquiring property in India by a Non-Resident Acquiring property in India by a non-resident and outside India by a resident involves a set of procedures and regulations that must be followed in order to ensure compliance with the law. Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) are allowed to buy property in India. However, they are not allowed to buy agricultural land, plantation property or farmhouses in India, The process of acquiring property in india by a non-resident involves the following steps: 1) Eligibility: NRls and PIOs are eligible to purchase residential and commercial properties in India, subject to certain conditions. 2) Required Documents: The non-resident buyer needs to have a valid passport and must have either an NRI or PIO card. The buyer also needs to provide their PAN (Permanent Account Number) card or a tax clearance certificate, which is required to make payments for the purchase of property. 3) Payment: The payment for the purchase of property can be made through an NRE/NRO bank account or through foreign currency remittances from abroad, It is important to ensure that all payments are made through proper banking channels and that the necessary documentation is completed. 4) Registration: The property must be registered with the relevant authority, which is usually the local sub-registrar office. The buyer needs to provide all the necessary documents, including the sale deed, stamp duty and registration fees, and any other relevant documents. 5) Taxation: Non-resident buyers are subject to certain tax liabilities in India, including income tax and property tax. It is important to understand the tax implications of owning property in India and to seek professional advice if necessary. Acquiring property outside India by a Resident Resident Indians are allowed to purchase property outside India, subject to certain conditions. The process of acquiring property outside India by a resident involves the following steps 1). Eligibility: Resident Indians are eligible to purchase property outside India, subject to the foreign exchange regulations. 2) Required Documents: The resident buyer needs to have a valid passport and must comply with the foreign exchange regulations of the Reserve Bank of India (RBI), The buyer also needs to provide their PAN (Permanent Account Number) card or a tax clearance certificate, which is required to make payments for the purchase of property. 3) Payment: The payment for the purchase of property outside India can be made through a bank transfer or foreign currency remittances from India, Its important to ensure that all payments are made through proper banking channels and that the necessary documentation is completed. ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001Ignot Gyaniversity rons ts Publications SUBJECT CODE: MMPC-013 © Registration: The property must be registered with the relevant authority, which is usually the local land registry office or property registry office, The buyer needs to provide all the necessary documents, including the sale deed, stamp duty and registration fees, and any other relevant documents. Taxation: Resident buyers are subject to certain tax liabilities in India, including income tax and property tax. It is important to understand the tax implications of owning property outside India and to seek professional advice if necessary. In conclusion, acquiring property in India by a non-resident and outside India by a resident involves a set of procedures and regulations that must be followed in order to ensure compliance with the law. It is important to understand the eligibility criteria, required documents, payment mechanisms, registration procedures, and tax implications before making any property purchase Seeking professional advice from legal and financial experts can be helpful in navigating the process and ensuring a smooth acquisition of property. Q 3. Explain the necessity for the Insolvency and Bankruptcy Code 2016 (IBC-2016) and briefly discuss the four pillars of Institutional Infrastructure under IBC-2016. Ans) The Insolvency and Bankruptcy Code 2016 (IBC-2016) is a comprehensive piece of law that was introduced in India in 2016 with the intention of addressing the problem of insolvency and bankruptcy in the country. Because the pre-existing legal framework was disjointed and did not have a coherent strategy for dealing with insolvency and bankruptcy situations, the introduction of the IBC-2016 became an absolute requirement. The Insolvency and Bankruptcy Code of 2016 was passed into law with the goals of establishing a structure forthe prompt and effective resolution of troubled assets, as well as to safeguard the interests of both creditors and debtors. The four pillars of institutional infrastructure under the IBC-2016 are as follows: 1. Insolvency Professionals: The IBC-2016 requires the appointment of insolvency professionals (IPs) to oversee the resolution process. IPs are licensed professionals who are responsible for managing the affairs of the debtor during the resolution process. The role of IPs is critical as they are required to ensure a smooth and efficient resolution process, while also protecting the interests of all stakeholders. 2. Insolvency Professional Agencies: The IBC-2016 also provides for the establishment of insolvency professional agencies (IPAs), which are responsible for regulating and overseeing the activities of IPs, IPAs are required to maintain a database of IPs, provide training, and support to IPs, and ensure compliance with the Code. 3. Adjudicating Authorities: The IBC-2016 provides for the establishment of National Company Law Tribunals (NCLTS) and the National Company Law Appellate Tribunal (NCLAT) as adjudicating authorities for insolvency and bankruptcy cases. The NCLTs are responsible for hearing and deciding insolvency and bankruptcy cases, while the NCLAT is responsible for hearing and deciding appeals against the decisions of the NCLTs. ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001suBi T CODE: MMPC-013 © 4, Information Utilities: The IBC-2016 also provides for the establishment of information utilities (IUs), which are responsible for maintaining a database of financial information on borrowers. |Us are required to collect, verify, and disseminate financial information to stakeholders in a timely and efficient manner. The role of IUs is critical as they provide a central repository of information, which helps in facilitating the resolution process ignov Gyaniversity or ts Publications The necessity for the IBC-2016 can be understood in the context of the following factors: 1) Fragmented Legal Framework: Prior to the enactment of the IBC-2016, the legal framework for insolvency and bankruptcy cases in India was fragmented and lacked a unified approach. There were multiple laws and regulations governing insolvency and bankruptcy, which often led to delays and inefficiencies in the resolution process. 2) Lack of Time-bound Resolution Process: The existing legal framework did not provide for a time-bound resolution process, which often led to delays and resulted in creditors being unable to recover their dues. This had a negative impact on the overall health of the economy, as it affected the availability of credit and investment. 3) Protection of Interests of Creditors and Debtors: The existing legal framework also did not adequately protect the interests of creditors and debtors. In many cases, creditors were unable to recover their dues, while debtors were unable to restructure their businesses and repay their debts. 4) Inefficient Judicial System: The judicial system in India was often unable to handle the large number of insolvency and bankruptcy cases, which resulted in delays and inefficiencies. This had a negative impact on the overall health of the economy, as it affected the availability of credit and investment. The IBC-2016 seeks to address these issues by providing a time-bound and efficient mechanism for the resolution of distressed assets. The Code provides for a clear and transparent process for the resolution of insolvency and bankruptcy cases, which ensures that all stakeholders are protected The Code also provides for the establishment of a robust institutional infrastructure, which ensures that the resolution process is efficient Q 4. Discuss the role of ‘Privacy’ in the context of Digital World. Discuss the personal Data Protection Bill, 2019. Ans) In the digital world, privacy refers to the protection of an individual's personal information that is collected, processed, and shared by various entities such as governments, companies, and organizations. The increasing use of technology has led to the creation of vast amounts of personal data, which has raised concerns about the privacy of individuals. In this context, privacy plays a crucial role in safeguarding the rights and freedoms of individuals in the digital world, ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001ignov Gyaniversity or ts Publications SUBJECT CODE: MMPC-013 © The role of privacy in the context of the digital world can be understood in the following ways: 1). Protecting Personal Information: Privacy helps in protecting an individual's personal information, including their name, address, phone number, email address, and other sensitive information such as financial and health data, The collection, processing, and sharing of personal data without an individual's consent can lead to identity theft, fraud, and other forms of misuse, 2) Maintaining Confidentiality: Privacy helps in maintaining the confidentiality of personal information. Individuals have the right to contral how their personal information is collected, used, and shared. The violation of this right can lead to the loss of trust and confidence in the digital world, 3) Ensuring Transparency: Privacy helps in ensuring transparency in the collection, processing, and sharing of personal information. Organizations should provide clear and concise information about the purpose of data collection, the types of data collected, and the intended recipients of the data, This helps individuals make informed decisions about the use of their personal data 4) Promoting Accountability: Privacy helps in promoting accountability among organizations that collect, process, and share personal data. Organizations are responsible for ensuring that personal data is collected and processed in accordance with applicable laws and regulations. In case of any misuse or unauthorized access to personal data, organizations should be held accountable and be subject to legal action 5) Upholding Fundamental Rights: Privacy is essential in upholding fundamental rights such as freedom of speech, expression, and association. The misuse of personal data can have a chilling effect on these rights, as individuals may fear reprisals for expressing their opinions or associating with certain groups. In conclusion, privacy plays a critical role in the digital world by safeguarding the rights and freedoms of individuals. The protection of personal information, maintaining confidentiality, ensuring transparency, promoting accountability, and upholding fundamental rights are essential in maintaining trust and confidence in the digital world, As technology continues to advance, itis imperative that individuals and organizations work together to ensure that privacy is respected and protected in the digital world Personal Data Protection Bill 2019 The Personal Data Protection Bill, 2019 is a proposed law aimed at regulating the collection, storage, processing, and transfer of personal data in India. The Bill seeks to provide a comprehensive framework for the protection of personal data, while also balancing the interests of the individuals and the State Some of the key provisions of the Bill are: 1. Definition of Personal Data: The Bill defines personal data as any data that can identify an individual, directly or indirectly. This includes sensitive personal data such as financial and health data ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001Ignot Gyaniversity fete ts Publications SUBJECT CODE: MMPC-013 ieee ®) About Gyaniversity Publications Gyaniversity Publications is India’s largest student portal providing students with end-to-end support throughout their course with the following services: MOBILE APP zs] Download the, “IGNOU Student App" from the Google a Play Store for free to get all the below services & much more all in one central location. SOLVED ASSIGNMENTS Get solved assignment PDFs verified by teachers for ort accuracy downloaded instantly to your device for the best marks! HANDWRITTEN ASSIGNMENTS Get neatly written handwritten assignments delivered right to your doorstep! Just sign and submit it at your study center. SOLVED PROJECTS Get well researched projects and synopsis in a rofessional thesis/dissertation format ready to print rom our official website and mobile app STUDY GUIDES Get IGNOU Help Books / Study Guides / Guess Papers. Just read our small guidebook and pass your exams —guaranteed! PERSONAL ASSISTANCE Have questions about your admission? Assignment? Project? Exams? Change in study or regional center? Get trusted help on WhatsApp from our assistants! ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001lignou Gyaniversity ese, Ved Retceton o 2. Data Protection Authority: The Bill proposes the establishment of a Data Protection Authority (DPA) to oversee and regulate the collection, processing, and transfer of personal data. The DPA will have the power to issue guidelines and regulations, investigate and penalize violations, and provide guidance on data protection matters. 3. Consent: The Bill requires organizations to obtain explicit and informed consent from individuals before collecting, processing, or transferring their personal data. The consent should be freely given, specific, and capable of being withdrawn at any time. 4, Right to Data Portability: The Bill provides individuals with the right to receive their personal data ina structured, commonly used, and machine-readable format. This allows individuals to transfer their data from one organization to another. 5. Right to be Forgotten: The Bill provides individuals with the right to request the deletion of their personal data, Organizations must comply with such requests, subject to certain exceptions 6. Cross-Border Data Transfer: The Bill requires organizations to store at least one copy of personal data in India, The transfer of personal data outside India is subject to the approval of the DPA, and must comply with certain conditions. 7. Penalties for Violations: The Bill provides for significant penalties for violations, including fines of Up to 4% of an organization's global turnover or INR 15 crore, whichever is higher. The Personal Data Protection Bill, 2019 is a significant step towards strengthening data protection and privacy in India. The Bill seeks to balance the interests of individuals, organizations, and the State, while also ensuring compliance with international best practices. The Bill is currently under review by a Parliamentary committee, and it is expected to be passed into law in the near future. Once passed, the Bill will have a significant impact on how personal data is collected, processed, and transferred in India, and will provide individuals with greater control over their personal data. Q5. Explain the applicability of Consumer Protection (E-Commerce) Rules, 2020 and discuss the duties and liabilities of e-commerce entities under these rules. Ans) The Consumer Protection (E-Commerce) Rules, 2020 were introduced in India to regulate e- commerce entities and protect the rights of consumers who shop aniline. The rules apply to all e- commerce entities that conduct business in India, including online marketplaces, e-commerce retailers, and any other entities that facilitate online transactions The rules apply to all e-commerce entities, regardless of their size or the volume of business they generate. This means that even small-scale e-commerce retailers or individual sellers on online marketplaces are required to comply with the rules. ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001lignou {se Gyaniversity © UnweRsity Publications One of the key provisions of the rules is the requirement for e-commerce entities to establish a grievance redressal mechanism. This mechanism must be easily accessible to consumers and must be capable of resolving complaints in a timely and efficient manner. E-commerce entities are also required to appoint a grievance officer who is responsible for addressing consumer complaints. The rules also provide for the establishment of a Central Consumer Protection Authority (CCPA), which is responsible for promoting, protecting, and enforcing the rights of consumers. The CCPA has the power to investigate and prosecute e-commerce entities that engage in unfair trade practices and can also issue orders to stop such practices. Another important provision of the rules is the requirement for e-commerce entities to ensure the authenticity of products sold on their platform. This is aimed at curbing the sale of counterfeit or fake products, which is a major concern in the e-commerce sector. E-commerce entities must take reasonable steps to ensure that the products sold on their platform are genuine and are also required to display information about the country of origin of the product The rules also provide for penalties for non-compliance, which can range from warnings to fines and even imprisonment in some cases. This is intended to ensure that e-commerce entities take their obligations under the rules seriously, and to deter them from engaging in unfair or unethical business practices. The rules set out various duties and liabilities for e-commerce entities, as follows: Duty to Provide Information: E-commerce entities are required to provide certain information to consumers, including the legal name of the entity, contact details, and a description of the goods or services offered. They are also required to display the total price of the goods or services, including all taxes and delivery charges. Duty to Disclose Terms and Conditions: E-commerce entities are required to provide clear and concise information about the terms and conditions of the transaction, including information about the refund and return policies, payment methods, and delivery timelines. Duty to Ensure Authenticity of Products: E-commerce entities are required to take reasonable steps to ensure that the products sold on their platform are authentic and not counterfeit. They are also required to display information about the country of origin of the product, and any relevant certifications or quality marks. Liability for Defective Products: E-commerce entities are liable for any defective products sold on their platform, They are required to provide a refund or replacement to the consumer, and also to take action against the seller of the product. ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001lignou fe Gyaniversity WE reOeUes, Publications Liability for Unfair Trade Practices: E-commerce entities are liable for any unfair trade practices, such as misleading advertisements or fake reviews. They are required to take action against sellers who engage in such practices, and also to remove any content that violates the rules. Duty to Protect Consumer Data: E-commerce entities are required to take reasonable steps to protect the personal data of consumers, and to obtain their consent before collecting or using such data. They are also required to provide a clear and concise privacy policy, and to allow consumers to opt out of marketing communications. Liability for Delayed or Non-Delivery of Products: E-commerce entities are liable for any delayed or non-delivety of products. They are required to provide a refund or replacement to the consumer, and also to take action against the seller of the product. Duty to Establish Grievance Redressal Mechanism: E-commerce entities are required to establish a grievance redressal mechanism to address consumer complaints. They are also required to appoint a grievance officer who is responsible for resolving consumer complaints in a timely and efficient manner. Overall, the Consumer Protection (E-Commerce) Rules, 2020 represent a significant step towards regulating e-commerce in India and protecting the rights of consumers. They provide a comprehensive framework for e-commerce entities to operate in a fair and transparent manner, and also establish clear responsibilities and liabilities for these entities. The rules are expected to have a significant impact on the e-commerce sector in India and are likely to improve the overall consumer experience of online shopping. ® worngyaniversty.com @ayaniverstypubs — (@ +9199721 77001