Business Law

Test No 4 ICAP REVISION

Chapter:16,17,18
Total marks: 40
Time Allowed : 70 minutes
Tutor: Syed Atif Abidi

Question # 1
Under the Payment Systems and Electronic Fund Transfers Act, 2007, explain the following.
(a) Define the term operator. (02)
(b) When SBP can revoke designation of a DPS. (05)
(c) What operational arrangements shall be established by an Operator of a DPS. (04)

Question # 2
Sergio Limited was in business of running a restaurant in Lahore and on average daily sales were 200,000 per day.
Director of Company Mr. Professor was also involved in many mobs and on daily he was adding 100,000 to sales
amount, falsely reporting it to be cash sales for the day.
Money was being deposited in the restaurant’s legitimate bank account and appears as an ordinary deposit of
restaurant business proceeds.
To deal with tax issues – that is, to avoid having the restaurant incur too large a tax bill as a result of recording more
revenue than it generates – and to further disguise the criminal source of the extra deposited funds, the restaurant
invested the money in another legitimate business, such as real estate. Things are further obscured from the
authorities by using shell companies or holding companies that control several business enterprises that the
laundered money may be funneled through.
On one fine day Mr. Arturo Roman whistleblowed to FBR regarding suspicious financial activity and Mr. Professor
was caught red handed.

Required:
(a) What punishments can be given to Mr. Professor and to Sergio Limited (04)
(b) Regardless of instance described, what other acts (with explanation) can be described as Offence for Money
Laundering. (04)

Question # 3
Give 3 examples each of Abuse of dominant position and Prohibited agreements (06)

Question # 4
Define Arbitration agreement and Legal representative (05)

Question # 5
State Common Powers of arbitrators (05)

Question # 7
Mark the correct answer:-

1. In which of the following case(s) a person is deemed to have committed an offence of money
laundering?
(a) If a person acquires, converts, possesses, uses or transfers property, knowing or having reason
to believe that such property is proceeds of crime.
(b) If a person conceals or disguises the true nature, origin, location, disposition, movement or
ownership of property, knowing or having reason to believe that such property is proceeds of
 crime.
(c) If a person holds or possesses on behalf of any other person any property knowing or having
reason to believe that such property is proceeds of crime.
(d) All of above.

2. Which of the following statement(s) is / are correct?

(i) The State Bank shall not revoke a designation without giving the operator of the Designated
Payment System an opportunity to be heard.
(ii) The State Bank shall not suspend a designation without giving the operator of the Designated
Payment System an opportunity to be heard.
(a) (i) only
(b) (ii) only
(c) Both (i) and (ii)
(d) Neither (i) nor (ii)

3. Which of the following offence might result in shorter imprisonment and/or lower fine as
compared to others under the provisions of Prevention of Electronic Crimes Act, 2016?
(a) Interference with information system or data
(b) Unauthorized access to critical infrastructure information system or data
(c) Unauthorized copying or transmission of critical infrastructure data
(d) Interference with critical infrastructure information system or data

4. Which of the following statement is incorrect in relation to Competition Act, 2010:

(a) An agreement fixing the purchase or selling price or imposing any other restrictive trading
conditions with regard to the sale or distribution of any goods or the provision of any service
is not prohibited unless CCP expressly directs otherwise.
(b) Agreement for limiting technical development or investment with regard to the production,
distribution or sale of any goods or the provision of any service may not be void if exemption
is granted by CCP.
(c) Fraudulent use of another's trademark, firm name, or product labelling or packaging is
deceptive marketing practice.
(d) Tie-ins, where the sale of goods or service is made conditional on the purchase of other goods
or services might result in abuse of dominant position.

5. Which of the following is a deceptive marketing practice?

(a) fraudulent use of another's trademark, firm name, or product labelling or packaging.
(b) the distribution of false or misleading information to consumers, including the distribution of
information lacking a reasonable basis, related to the price, character, method or place of
production, properties, suitability for use, or quality of goods.
(c) false or misleading comparison of goods in the process of advertising.
(d) All of above.