Name - Apeksha. D.

Rao Reg No – 511112634 Learning center code – 00952 Subject code – MB0051 Subject Name – Legal aspects of business Date of submission – Assignment set 1 & 2

forging signatures. it is innocent misrepresentation where the person presenting the facts may not be in the know of all the facts and thus may create misrepresentation. forging currencies and so on. inflating the invoices. falsifying as a witness. but the picture becomes clear only when all relevant facts are presented. forging figures in income statements. People treat fraud and misrepresentation as being same and they even use the terms interchangeably but there is a difference between the two concepts in the eyes of law and cases are dealt with according to the provisions of either. Fraud Fraud is done with the intention of wrongful personal gains or to cause damage to another person. he is trying to misrepresent the facts in the hope that consumers may fall in trap and buy the product.Assignment . Misrepresentation Misrepresentation. on the other hand. Distinguish between fraud and misrepresentation. deceit in gambling or other sports. Fraud is a crime that has strict provisions in the law and is accordingly dealt with. fraud is willful and attracts more severe penalty than misrepresentation that is less severe. is mostly used in the context of contracts where a party may present facts in such a way so as to lure other party into signing the contract.1 1. identity fraud. If information is presented in such a way that it looks true. it becomes a case of misrepresentation. Though both fraud and misrepresentation have similar effects and there may be just a difference of intensity or magnitude. In brief: Misrepresentation vs Fraud • Fraud is willful deceit while misrepresentation is merely not presenting entire information • Misrepresentation sometimes takes place as the person may not have knowledge of entire facts but fraud is committed in the light of the day and the purpose is gaining at the expense of another party. At times. . Fraud can be anything from claiming false health benefits from a product to giving false information for monetary gains. Embezzlement. claiming wrong insuranceclaims. Sometimes a manufacturer may not disclose all the facts about the product and by withholding these facts.

The main kind of damages awarded in a contract suit are ordinary damages. The aggrieved party is required to take reasonable steps to keep his losses to the minimum. Damages: (Sec 75) Another relief of remedy available to the promisee in the event of a breach of promise by te promisor is to claim damages or loss arising to him therefrom. the other party may treat the contract as rescinded. There are three remedies under the Specific Relief Act.  The other party may sue for damages.  The usual remedy for breach of contracts is suit for damages. In such a case the aggrieved party is freed from all his obligations under the contract.2. the other party is no longer obligated to keep its end of the bargain. The idea is to compensate the aggrieved party for the loss he has suffered as a result of the breach of the contract. Compensation for losses indirectly caused by breach may be paid as special damages if the party in breach had knowledge that such losses would also follow from such act of breach.  The other party may bring the breaching party to an agency for alternative dispute resolution. What are the remedies for breach of contract? When someone breaches a contract. the other party may get help from consumer‟s association. . 1963.  If it is a contract with a merchant. Damages under Sec 75 are awaded according to certain rules laid down in Secs 73-74. This is the amount of money that would take to put the aggrieved party in as good a position as if there had not been a breach of contract. The party may proceed in several ways  The other party may urge the breaching party to reconsider the breach. Sec 73 contain three important rules:   Compensation as general damages will be awarded only for those losses that directly and naturally result from the breach of the contract. Recession of the contract: When a breach of contract is comitted by one party.  The other party may sue for other remedies.

I will is a gaurantee. after discharging the debt. „ If you lend $20 to C and he does not pay you. te „principal debtor‟. It is seldom drawn in sets It does not require acceptance by the drawee. Foreign bills are drawn in sets It must be accepted by the drawee before he can be made liable to pay the bill. in a contract of indemnity. there are three parties. In the case of gaurantee. Days of grace are not allowed to a banker No stamp duty is payable on checks It is usually drawn on the printed f It may be drawn on any party or individual. Three days of grace are always allowed to the drawee. Mather in his book “ Securities acceptable to the Lending Banker” has very briefly. C. What is the distinction between cheque and bill of exchange? Cheque   Bill of Exchange  It is drawn on a banker It has three parties . There are three parties . there are only two parties. In case of a gaurantee. unless there is an assignment in his favour. „If u lend $20 to C. It may be drawn in any paper and need            . the primary liability being that of the principal debtor.3. Other points of difference are:  The liability of a promisor is primary and independent in a contract of indemnity.   4.the drawer. there is an existing debt or obligation. Distinguish between indemnity and guarantee. the drawee. the surety is entitled to proceed against the principal debtor in his own name while in case of indemnity. Thus. On the other hand undertaking in these words. In a contract of gaurantee. In a contract of gaurantee. In case of indemnity the possibility of any loss happening is a contigency against which the indemnifier undertakes to indemnify.the drawer. Stamp duty has to be paid on bill ofexchange. and the payee. on te other hand. L. but excellently. the‟creditor‟ and the „surety‟. A contract in which A says to B. I will see that your money comes back‟ is an idemnity. the drawee. the indemnifier cannot proceed against tird paries in his own name. and payee. the liability of the surety is secondary. the performance of which is gauranteed by the surety. indemnifier and indemnified. brought out the distinction between indemnity and gaurantee by the following illustrations.

This article will differentiate between Companies Limited by Shares and Companies Limited by Guarantee by discussing their features and pros and cons. a secretary and a declarant at the time of coming into existence. A company limited by guarantee is lesser known of the two types and is generally formed in case of non profit companies. There are both similarities as well as differences in the two types of companies. companies limited by guarantee have specific clauses and rules dictating their areas of operation. There are members and not shareholders in case of a guarantee company where members pledge to contribute a predetermined sum at the time of formation of the company (Pound 1). and not share holders whereas in case of companies limited by shares. Guarantee companies are formed to provide a specific service to public. clubs. Q. Companies Limited by Shares vs Companies Limited by Guarantee • Companies limited by shares are more popular than companies limited by guarantee • Companies limited by guarantee are non profit making while companies limited by shares are profit making • Companies limited by guarantee have members. churches. research organizations and to purchase freehold property. There are several ways of structuring a company to start a business. This one point helps companies limited by guarantee to raise funds more easily than companies limited by shares as they can show how they propose to use the money. Another major difference between Companies Limited by Shares and Companies Limited by Guarantee is the absence of share capital in the case of companies limited by guarantee.not necessarily be printed. People are often confused between these two entities and do not know which one they should adopt for their purposes. There are no major differences in the structure of the two types of companies and both Companies Limited by Shares and Companies Limited by Guarantee have at least one director. Different nomenclatures are adopted for the purpose of taxation and profit sharing. Prominent example of companies limited by guarantee are charities that have self imposed restrictions on them to assure the donors that their donations are spent according to their wishes and not in a manner that they do not approve. • There is no share capital in case of companies limited by guarantee and it also has self imposed restrictions while companies limited by shares can engage in legal trades and have general clauses. . there are shareholders. Two such formations are Companies Limited by Shares and Companies Limited by Guarantee that are more prevalent in Britain and Ireland. The most notable difference between these two entities is that companies limited by shares exist for making profit whereas companies limited by guarantee are non profit making companies.5 Distinguish between companies limited by shares and companies limited by guarantee. Guarantee company structure is mostly used by schools. On the other hand. These two entities also differ in their articles of association and memorandum as companies limited by shares have very general clauses that give them liberty to engage in any legal trade or business activity. It tends to have members rather than shareholders.

sale of illegal articles. “Cyber crime may be said to be those species. Crime or an offence is “a legal wrong that can be followed by criminal proceedings which may result into punishment. intellectual property crime. it is breach of the criminal law. logic bombs. data didling. target or a means for perpetuating further crimes comes within the ambit of cyber crime” A generalized definition of cyber crime may be “ unlawful acts wherein the computer is either a tool or target or both” The computer may be used as a tool in the following kinds of activityfinancial crimes. cyber defamation. This term has nowhere been defined in any statute /Act passed or enacted by the Indian Parliament. Trojan attacks. web jacking. which is appreciable. theft of information contained in the electronic form. e-mail spoofing. Crime is a legal concept and has the sanction of the law.Q.6 . which cause breach of rules of law and counterbalanced by the sanction of the state. genus is the conventional crime. e-mail bombing.unauthorized access to computer/ computer system/ computer networks.”The hallmark of criminality is that. physically damaging the computer system. The concept of cyber crime is not radically different from the concept of conventional crime. CONVENTIONAL CRIMECrime is a social and economic phenomenon and is as old as the human society. pornography. The demarcation lies in the involvement of the medium in . salami attacks. The term „cyber crime‟ is a misnomer. However on a deep introspection we may say that there exists a fine line of demarcation between the conventional and cyber crime. of which. The computer may however be target for unlawful acts in the following cases. DISTINCTION BETWEEN CONVENTIONAL AND CYBER CRIMEThere is apparently no distinction between cyber and conventional crime. cyber stalking. forgery. What is the definition of cyber crime. CYBER CRIME Cyber crime is the latest and perhaps the most complicated problem in the cyber world. internet time thefts. A crime may be said to be any conduct accompanied by act or omission prohibited by law and consequential breach of which is visited by penal consequences. online gambling. Before evaluating the concept of cyber crime it is obvious that the concept of conventional crime be discussed and the points of similarity and deviance between both these forms may be discussed. theft of computer system. Both include conduct whether act or omission. and where either the computer is an object or subject of the conduct constituting crime” “Any criminal activity that uses a computer either as an instrumentality. Per Lord Atkin “the criminal quality of an act cannot be discovered by reference to any standard but one: is the act prohibited with penal consequences”.

Further collection of data outside the territorial extent also paralyses this system of crime investigation. The reasons for the vulnerability of computers may be said to be: 1. at any stage. of the virtual cyber medium.ComplexThe computers work on operating systems and these operating systems in turn are composed of millions of codes. By secretly implanted logic bomb. 3. that can fool biometric systems and bypass firewalls can be utilized to get past many a security system. 4. Loss of evidenceLoss of evidence is a very common & obvious problem as all the data are routinely destroyed. Human mind is fallible and it is not possible that there might not be a lapse at any stage. key loggers that can steal access codes. Capacity to store data in comparatively small spaceThe computer has unique characteristic of storing data in a very small space. The sine qua non for cyber crime is that there should be an involvement. Applying this to the cyberspace we may say that computers are vulnerable so rule of law is required to protect and safeguard them against cyber crime. advanced voice recorders. Easy to accessThe problem encountered in guarding a computer system from unauthorised access is that there is every possibility of breach not due to human error but due to the complex technology. 5. REASONS FOR CYBER CRIME: Hart in his work “ The Concept of Law” has said „human beings are vulnerable so rule of law is required to protect them‟. retina imagers etc.NegligenceNegligence is very closely connected with human conduct. which in turn provides a cyber criminal to gain access and control over the computer system. .cases of cyber crime. The cyber criminals take advantage of these lacunas and penetrate into the computer system. It is therefore very probable that while protecting the computer system there might be any negligence. 2. This affords to remove or derive information either through physical or virtual medium makes it much more easier.

there is no right to appeal Arbitration is not a matter of public record.Assignment – 2 1: What are the situations which cannot be referred to arbitration? Arbitration law is a process that involves the assistance of one or more neutral parties known as arbitrators. which is designed to explain the award and the reasoning that led to it. Arbitrators are charged with hearing evidence from numerous involved parties in a dispute. and their main duty is to issue an award deciding who gets what in order to resolve the situation. For instance. Arbitration law and mediation law are two different processes and should not be confused. it is much less expensive than legal litigation An arbitration time frame is substantially less than that of litigation and going to trial No jury. matters covered by statutory reliefs through statutory tribunals would be nonabatable. Kind of matters cannot be referred for arbitration: As per general practice. Arbitration is one of the most effective and trusted proceedings in regard to private dispute settlement are guided by the Arbitration & Conciliation Act. However. The purpose of arbitration law is to serve as a substitution to a trial and a review of the decision by a trial court. Arbitration is similar to a court trial. matters involving moral questions or questions of public law cannot be resolved by arbitration. 1996. Employment contracts also cannot be referred to arbitration but director . with several exceptions: The arbitrator makes the decision called an "arbitration award” The arbitration does not take place in a courtroom The arbitration award is binding. insolvency matters anti-competition matters or commercial court matters to be referred to arbitration. an arbitrator may also issue an opinion in conjunction with the award. With rare exceptions. Subject matter of arbitration: Any commercial matter including an action in tort if it arises out of or relates to a contract can be referred to arbitration. criminal proceedings.company disputes are abatable (as there is no master servant relationship here)5. The Arbitrator(s) maintain neutrality and conflicts of interests Generally. and there is no availability for appeal. Arbitration is an Alternative Dispute Resolution process whereby a person chosen as an arbitrator settles disputes between parties. the following matters are not referred to arbitration: Matrimonial matters Guardianship of a minor or any other person under disability Testamentary matters Insolvency. more expanded opportunity to tell their stories to present their cases With very few exceptions. all paperwork and evidence presented are destroyed after the Arbitration The arbitration and arbitration award does not have to adhere to Judicial Case precedent nor formality of traditional court proceedings In India. proceedings Criminal proceedings Questions relating to charity or charitable trusts Matters relating to anti-trust or competition law Dissolution or winding up of a company . In some instances of arbitration law. The award and the opinion are not capable of being reviewed by a court. It is private and confidential There is no court reporter or written transcripts Lawyers generally prepare their cases in an extremely limited manner The rules of evidence are relaxed so that the parties have a broader scope. Generally. public policy would not permit matrimonial matters.

It is true. the 1996 Act would apply. The conciliator may advise on or determine the process of conciliation whereby resolution is attempted. This makes no difference as to the meaning of „conciliation‟ under sec. the usages of the trade concerned and the circumstances surrounding the dispute. . the wishes the parties may express. identify the disputed issues. develop options. 89 permits the Court to refer a dispute for conciliation even where parties do not consent. fairness and justice. the rights and obligations of the parties. The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate. make proposals for a settlement of the dispute. who is wrong or what the outcome of the dispute should be. and may make suggestions for terms of settlement. and the need for a speedy settlement of the dispute. Conciliators do not: Make decisions for disputing parties Make judgments about who is right. at any stage of the conciliation proceedings. The 1996 Act is. based on the UNCITRAL Rules for conciliation. The conciliator may. with the assistance of a neutral third party (the conciliator). 89 because.Indian Arbitration Act follows the guideline of: The Geneva Convention on the Execution of Foreign Arbitral Awards. it says that once a reference is made to a „conciliator‟. including any request by a party that the conciliator hear oral statements. The conciliator shall be guided by principles of objectivity. Such proposals need not be in writing and need not be accompanied by a statement of the masons therefore. including any previous business practices between the parties. The conciliator may have an advisory role on the content of the dispute or the outcome of its resolution. giving consideration to. provided the Court thinks that the case is one fit for conciliation. In order to understand what Parliament meant by „Conciliation‟. Thus the meaning of „conciliation‟ as can be gathered from the 1996 Act has to be read into sec. section 62 of the said Act deals with reference to „Conciliation‟ by agreement of parties but sec. we have necessarily to refer to the functions of a „Conciliator‟ as visualized by Part III of the 1996 Act. and may actively encourage the participants to reach an agreement. but not a determinative role. among other things. 1927 The New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards The Geneva Protocol on Arbitration Clauses of 1923 Question 2: What is the role of a Conciliator? Conciliation: Conciliation is a process in which the parties to a dispute. taking into account the circumstances of the case. Role of conciliator: The conciliator shall assist the parties in an independent and impartial manner in their attempt to reach an amicable settlement of their dispute. it may be noted. consider alternatives and endeavour to reach an agreement. give expert advice on likely settlement terms. 89 of the Code of Civil Procedure. Tell people what to do Make rulings Force parties to participate in the conciliation process.

use or supply of any goods or services. or when Commission's own knowledge warrants a preliminary investigation. efficacy or length of life of the goods. The Commission is empowered to enquire into Monopolistic or Restrictive Trade Practices upon a reference from the Central Government or upon its own knowledge or information. approval. Falsely suggests that the services are of a particular standard. The MRTP Commission receives complaints both from registered consumer and trade associations and also from individuals. for the purpose of promoting any sale. • a promise to replace. whereby goods or services are offered at a bargain price when in fact there is no intention that the same may be offered at that price. Enquiries are instituted by the Commission after the Director General of Investigation and Registration completes preliminary investigation and submits an application to the Commission for an enquiry. services or trade of another person. which. characteristics. The Commission can also order a preliminary investigation by the Director General of Investigation and Registration when a reference on a restrictive trade practice is received from the Central/State Government. reconditioned or old goods as new goods. Gives any warranty or guarantee of the performance. maintain or repair the goods until it has achieved a specified result. 1969 OBJECTIVES AND POLICY: The Monopolies and Restrictive Trade Practices Commission has been constituted under Section 5(1) of the MRTP Act. If such representation is materially misleading or there is no reasonable prospect that such warranty. uses or benefits which they do not have. composition. The bargain price.Question 3: What are the unfair trade practices under the MRTP Act? THE MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT. Falsely suggests any re-built. Represents that the goods or services have sponsorship. 2)False Offer Of Bargain Price: Where an advertisement is published in a newspaper or otherwise. for this purpose means: the price stated in the advertisement in such manner as suggests that it is lesser than . Makes a false or misleading representation concerning the need for. it shall amount to an unfair trade practice. 1969. Complaints regarding Restrictive Trade Practices or Unfair Trade Practices from an association are required to be referred to the Director General of Investigation and Registration for conducting preliminary investigation. performance. secondhand renovated. Makes to the public a representation in the form that purports to be• warranty or guarantee of the goods or services. Unfair Trade Practices: An unfair trade practice means a trade practice. or unfair or deceptive practice. that is not based on an adequate or proper test. quantity or grade. accessories. or Gives false or misleading facts disparaging the goods. Represents that the seller or the supplier has a sponsorship or approval or affiliation which he does not have. style or model. grade. for a reasonable period or reasonable quantity. The MRTP Act also provides for appointment of a Director General of Investigation and Registration for making investigations for the purpose of enquiries by the MRTP Commission and for maintenance of register of agreements relating to restrictive trade practices. or the usefulness of. any goods or services. adopts unfair method. quantity. guarantee or promise will be fulfilled Materially misleads about the prices at which such goods or services are available in the market. 1) False Representation: The practice of making any oral or written statement or representation which: Falsely suggests that the goods are of a particular standard quality.

issued or published as may be specified The Commission may permit the party to carry on any trade practice to take steps to ensure that it is no longer prejudicial to the public interest or to the interest of the consumer. finishing or packing. 4)Non-Compliance Of Prescribed Standards: Any sale or supply of goods. as are necessary to prevent or reduce the risk of injury to the person using such goods. contents. Relief Available: After making an inquiry into the unfair trade practices if the Commission is of the opinion that the practice is prejudicial to the pubic interest. It is the very basis of the contract. Question 4: What are essentials of a valid offer? Offer: A proposal is an expression of will or intention to do or not to do something. or refusal to sell the goods or provide any services. with an intention to raise the cost of those or other similar goods or services. Etc. 3)Free Gifts Offer And Prize Scheme: The unfair trade practices under this category are: Offering any gifts. statement or advertisement relating to such unfair trade practice shall be disclosed. Hoarding. or Offering some prizes to the buyers by the conduct of any contest. or to the interest of any consumer it may direct that? The practice shall be discontinued or shall not be repeated.: Any practice that permits the hoarding or destruction of goods. The person to whom the proposal is made is called the offeree or promisee. The Commission is empowered to direct publication of corrective advertisement and disclosure of additional information while passing orders relating to unfair trade practices. shall be an unfair trade practice. in relation to their performance. The agreement relating thereto shall be void in respect of such unfair trade practice or shall stand modified. Sunil is the . 50000. This is a proposal. lottery or game of chance or skill. to such act or abstinence. shall amount to an unfair trade practice. construction. composition. design. or Upon reference made to it by the Central Government or State Government Upon an application to it by the Director General or Upon its own knowledge or information. Sunil offers to sell his car to Padmaja for Rs. when in fact the price is wholly or partly covered by the price of the article sold. For example. 5)Inquiry Into Unfair Trade Practices: The Commission may inquire into any unfair trade practice: Upon receiving a complaint from any trade association. or The price which any person coming across the advertisement would believe to be better than the price at which such goods are ordinarily sold. knowing or having reason to believe that the goods do not comply with the standards prescribed by some competent authority. for use by consumers. Any information. or Creating impression that something is being offered free along with the goods. with a view to obtaining the assent of that other. Destruction. It is one of the essential elements of an agreement. consumer or a registered consumer association. It is also called an "offer". prizes or other items along with the goods when the real intention is different. he is said to make a proposal". Section 2 (a) of the Contract Act defines the proposal as "when one person signifies to another his willingness to do or to abstain from doing anything. The person making the proposal is called the proposer or offer or the promisor. with real intention to promote sales or business.the ordinary price. However no order shall be made in respect a trade practice which is expressly authorized by any law in force. It becomes a promise when it accepted.

Sometime people offer the invitation for the sale.20000. If theoffer is not intended to create legal relationship. Essentials of a valid offer: t be a casual statement. If such offer is accepted it cannot create a binding contract. An offer which is expressed by conduct is called an implied offer. E. Sunil invites Sridhar to a dinner party and Sridhar accepts the invitation. Sunil cannot sue Sridhar for breach of contract as there was no intention to create legal obligation. This is an implied offer by KSRTC. Sunil issues a public advertisement to the effect that he would give Rs. Mere enquiry is not an offer. A specific offer can be accepted only by that person to whom it has been made and a general offer can be accepted by any person. An offer may be positive or negative. it is called "general offer". written or spoken. There is a difference between the offer and invitation of offer. They must not be looseand vague. If an offer does not give rise to legal obligations between the parties it is not a valid offer in the eye of law. A person has two motorbikes.g. In business transactions there is a presumption that the parties propose to make legal relationships. Sridhar says to Radhika that he will sell his scooter to her for Rs. if he brings back his missing dog. This is a specific offer and can only be accepted by Sridhar. for example. This is not an offer which can be accepted because the amount of money to be paid is not certain. A promise to pay an extra Rs.g. An offer may be express or implied. This is a general offer. Hence. it is not an offer in the eyes of law e.g. it is called "specific offer". An offer must be definite and clear. An agreement to agree in future is not a contract because the terms of an agreement are not clear. an offer to perform social. It may be in the form of a statement or a question. religious or moral acts without any intention of creating legal relations will not be a valid offer. But he cannot prescribe the form or time of refusal so as to fix a contract on the . He offers to another person to sell his one bike for a certain price then it is not a legal and valid offer because there is an ambiguity in the offer that which motorcycle the person wants to sell. Sridhar does not turn up at the dinner party. Sunil promises to give Rs.offeror and Padmaja is the offeree.100 to anyone who brings back his missing dog. If the terms of an offer are not definite and clear it cannot be called a valid offer. This is an express offer. Sridhar says to Sunil "I will give you some money if you marry my daughter". The offer must be made in order to create legal relations otherwise there will be an agreement. certain. An offer to do or not to do must be made with a view to obtaining the assent of the other party. Any member of the public can accept this offer by searching for and bringing back Sunil's missing dog. The Karnataka State Road Transport Corporation runs omnibuses on various routes to carry passengers at the scheduled fares. The offeror may prescribe any mode of acceptance. An offer should may contain any term or condition. 500 if a particular house proves lucky is too vague to be enforceable. When an offer is made to the world at large or public in general. is called an express offer.100 to Sridhar. E. definite person or to a special class of persons. An offer which is expressed by words. For example a person invite to another person to diner if the other person accepts the invitation then it is not any legal agreement between the parties it is social agreement.

An offer is effective only when it is communicated to the offeree. Question 6: What does the Information Technology Act enable? Information Technology Act: In May 2000. It is described as a unique legislation of its kind ever enacted in India to offer protection to the consumers. he cannot accept it. Railway timetable. The Consumer Protection Act was born in 1986. Although the law came into operation on October 17. An advertisement inviting tenders. which are punitive or preventive in nature the provisions of this Act are compensatory in nature. it still has an element of mystery around it. party accepts it. The Act is claimed to have been designed after an in-depth study of consumer protection laws and arrangements in UK. It is immaterial whether the terms and conditions were harsh or ridiculous. despite the growing crime rate in the cyber world. he is deemed to have accepted the offer. or even signs and gestures. If he does not know. then he has to abide by all the terms and conditions of the offer. the USA. Display of goods with price-tags attached. A person can accept the offer only when he knows about it. telegram. Quotations of lowest prices.acceptor. Communication is necessary whether the offer is general or specific. India enacted the IT Act and became part of a select group of countries to have put in place cyber laws. A price list of goods for sale. only less than 25 cases have been registered under the IT Act 2000 and no final verdict has been passed in any of these cases as they are now pending with various courts in the country. The special terms or conditions in an offer must be brought to the notice of the offeree at the time of making a proposal. The Act intends to provide simple. speedy and inexpensive re-dressal to the consumer‟s grievances. Australia and New Zealand. The main objective of this Act is to provide better protection to the consumers. is no acceptance at all. Loud speaker announcements. 2000. but also from the perception of lawyers. messenger. Unlike other laws. Communication may also be implied by his conduct. The following are only invitations to offer but not actual offers: Invitations made by a trade for the sale of goods. Question 5: Find out a case where a person appealed under the Consumer protection Act and won. An acceptance of an offer. mail. at the height of the dot-com boom. Prospectus issued by a company. law enforcing agencies and even the judiciary. In all these years. Not only from the perception of the common man. in ignorance of the offer. a written document. He cannot say that if the acceptor does not communicate his acceptance within a specified time. The prime reason for this is the fact that the IT Act . The offeror may communicate the offer by choosing any available means such as a word of mouth. An advertisement to sell goods by auction.It should be noted that an invitation to offer is not an offer.

it does not expressly talk of cyber defamation. We are now beginning to see new categories and varieties of cyber-crimes.is a set of technical laws. . This includes cyber stalking. but such powers are largely inefficient. any material which is obscene in electronic form with imprisonment for a term which may extend to two years and with fine which may extend to twenty five thousand rupees on first convection and in the event of second may extend to five years and also with fine which may extend to fifty thousand rupees. 2000 provides for punishment to whoever transmits or publishes or causes to be published or transmitted. cyber harassment. Though Section 67 of the Information Technology Act. cyber nuisance. as they don't want to get negative publicity or worse get entangled in legal proceedings. cyber defamation and the like. The IT Act does give extra-territorial jurisdiction to law enforcement agencies. Another major hurdle is the reluctance on the part of companies to report the instances of cyber-crimes. A major hurdle in cracking down on the perpetrators of cyber-crimes such as hacking is the fact that most of them are not in India. This is because India does not have reciprocity and extradition treaties with a large number of countries. The above provision chiefly aim at curbing the increasing number of child pornography cases and does not encompass other crimes which could have been expressly brought within its ambit such as cyber defamation. The Indian IT Act also needs to evolve with the rapidly changing technology environment that breeds new forms of crimes and criminals. which have not been addressed in the IT Act.

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