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प्रश्न
Consists of legal proposition(s)/ principle(s) (hereinafter referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this Section. In other words, in answering these questions, you must not rely on any principle except the principles that are given herein below for every question.
Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest in the study of law, research aptitude, and problem-solving ability, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. It is not the objective of this section to test your knowledge of the law.
Therefore, to answer a question, the principle is to be applied to the given facts and to choose the most appropriate option.
Principle: A master shall be liable for the fraudulent acts of his servants committed in the course of employment. However, the master and third parties must exercise reasonable care in this regard.
Facts: Rahul was a door to door salesman with United Manufacturing Company (the Company). The Company was manufacturing Water Purifiers. Rahul, along with the Company’s products, used to carry Water Purifiers manufactured by his Cousin in a local Industrial Estate. He used to sell the local product at a lower rate giving the impression to the buyers that he is offering a discount on the Company’s product. Company Management detected the fraudulent activity of Rahul and dismissed him from service. Rahul still continued to carry on with his activity of selling the local product pretending that he was still a salesman of the Company. Several customers got cheated in this process. The fraud was noticed by the Company when the customer began to complain about the product. The customers demanded the Company to compensate for their loss.
विकल्प
The Company is liable to compensate all the customers as it did not inform the public about Rahul's fraudulent conduct and the subsequent dismissal.
The Company is not liable as Rahul was dismissed by the Company
The Company is liable to the customers who purchased the local product from Rahul only till he remained as a salesman of the Company
The liability rests with the local manufacturer as it was a defective product.
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उत्तर
The Company is liable to compensate all the customers as it did not inform the public about Rahul's fraudulent conduct and the subsequent dismissal.
Explanation:
The company is liable to compensate all the customers as it did not inform the public about Rahul's fraudulent conduct and the subsequent dismissal. The company (Master) was liable for the acts of employee Rahul during his employment which was fraudulent in nature. The company also had a duty to inform the public of the fraudulent acts of Rahul and about his dismissal.
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संबंधित प्रश्न
In this Question, problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question. In answering the following question, you should not rely on any rule(s) except the rule(s) that are supplied for problem. Further, you should not assume any fact other than 'those stated in the problem. The aim is to test your ability to properly apply a rule to a given set of facts, even when the result is absurd or unacceptable for any other reason. It is not the aim to test any knowledge of law you may already possess. Rules A. A person is an employee of another if the mode and the manner in which he or she carries out his work is subject to control and supervision of the latter. B. An employer is required to provide compensation to his or her employees for any injury caused by an accident arising in the course of employment. The words 'in the course of the employment' means in the course of the work which the employee is contracted to do and which is incidental to it. Facts Messrs. ZafarAbidi and Co. (Company) manufactures bidis with the help of persons known as `pattadars'. The pattadars are supplied tobacco and leaves by the Company and are required to roll them into bidis and bring the bidis back to the Company. The pattadars are free to roll the bidis either in the factory or anywhere else they prefer. They are not bound to attend the factory for any fixed hours of work or for any fixed number of days. Neither are they required to roll up any fixed number of bidis. The Company verifies whether the bidis adhere to the specified instructions or not and pays the pattadars on the basis of the number of bids that are found to be of right quality. Aashish Mathew is one of the pattadars of the Company. He was hit by a car just outside the precinct of the factory while he was heading to have lunch in a nearby foodstall. Aashish Mathew has applied for compensation from the Company. In case the patladars were compulsorily required to work in the factory for a minimum number of hours every day, then it would be correct to state that:
Which of the following Acts of British Parliament envisaged for the first time a closer association of Indians with the administration?
The purpose of the Ilbert Bill was
The principle is to be applied to the given facts and to choose the most appropriate option:
Principle: According to the law of trade unions in India, no suit or other legal proceeding shall be maintainable in any civil court against any registered trade union or any officer or member thereof in respect of any act done in contemplation or in furtherance of a trade dispute.
Facts: Soloman, the Secretary of a registered Trade Union took a loan from a bank for the higher education of his daughter. Soon after completing the course she was married to an NRI Engineer. Solomon did not repay the loan. The Bank demanded the payments from Soloma n and warned him that the Bank will take suitable legal action against him. Identify the legal position in this regard.
Last week, the government used the Drug Price Control Order, 2013, to increase the price ceiling for 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported.
This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of-pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies.
Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point.
An essential medicine, ‘Formula A’, is used to treat cancer, and there is only one company engaged in its manufacture. If this is true, then, based on the author’s reasoning in the passage above:
Last week, the government used the Drug Price Control Order, 2013, to increase the price ceiling for 21 medicines by as much as 50% to ensure their availability in the market. This is a welcome move because lower prices would have further limited the availability of these drugs, some of which include those used for malaria, leprosy and allergy. The decision by the regulatory authority – usually known to reduce prices of essential drugs – was prompted by repeated petitions by the pharmaceutical industry, which pointed out that the increasing cost of imports had made the production of some of these drugs unviable. Prices of bulk drugs and active pharmaceutical ingredients have, in fact, gone up by up to 88%, and are largely imported.
This raises a basic question: Should the government control prices? The motivation for controlling drug prices is not very difficult to understand. Unlike some of the developed countries, where most of the population has insurance coverage or medical facilities are provided by the state, medical expenses in India are borne by citizens, largely through out-of-pocket expenses. Therefore, the state intervenes by keeping prices of some drugs in check to contain such spending. However, the unintended consequence is that it affects the supply of drugs and can potentially make citizens worse off. The risk of non-availability was an important reason for raising prices. Although all pharmaceutical companies may not stop producing drugs with price control, they may limit the supply. Further, the government usually dithers on price hike because of political considerations so that it is not accused of favouring private companies.
Thus, the government should stay away from dictating prices and allow the market to function. Competition in the marketplace will ensure that no company is able to make extraordinary profits in basic and essential drugs. Since the state has limited resources, it should focus on regulation, and ensure that the quality of drugs supplied in the market is not compromised at any point.
The state places a very low price for the sale of essential medicine, which is lower than the price of the imported ingredients used to make that medicine. What, according to the author, would be the effect of setting such a low price?
The highest law officer in India is the
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Which of the following statements is the most appropriate in relation to the legal principle stated above?
Mark the best option:
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Facts: The District Magistrate of Dastar district issued an order transferring all privately owned property within the two-kilometer range of the Kashti river in the district in the name of the state government for the purpose of converting the said area into an environmental green belt. The owners of the land filed a petition for quashing of the order under the principle. Will the petition succeed?
Read both the statements carefully and answer.
Assertion (A): No action lies for mere damage caused by some act which does not violate a legal right.
Reason (R): An action lies for interference with another's legal right even where it causes no actual damage.
