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Question
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 violation of a legal right of someone, whether results in a legal injury or not, gives rise to an action in tort for compensation. At the same time, action by someone, which results in some loss or damage to somebody else is not actionable, if there is no violation of a right of that somebody.
Facts: AB Coaching Centre was a popular CLAT coaching academy with several good trainers. A lot of aspirants used to attend its coaching classes from all over and was making a good profit. This was going on for the past several years. During a session, T, one of the very good and popular trainers of ABCC, had some difference of opinion with the owner of ABCC and left the coaching centre. In August 2016, T started another Entrance Coaching Centre closer to ABCC which resulted in a substantial drop in its students and huge financial loss. The owner of ABCC wants to file a case against T for the loss sustained by ABCC. What do you think is the right legal position?
Options
T will be liable to compensate for the loss to ABCC.
T has not violated any of ABCC's legal rights though they sustained some financial loss, and not legally bound to compensate ABCC.
'T' should have consulted ABCC before starting his coaching centre.
T started the new coaching centre near ABCC intentionally and shall be liable to compensate for the loss of ABCC.
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Solution
T has not violated any of ABCC’s legal right though they sustain ed some financial loss, and not legally bound to compensate ABCC.
Explanation:
T has not violated any of ABCC's legal rights though they sustained some financial loss, and not legally bound to compensate ABCC. Because of a difference of opinion between T and the owner of ABCC, T left working for ABCC. The coaching centre experienced financial loss after T opened another Entrance Coaching Centre closer to ABCC. None of this is a violation of a legal right of ABCC and there will be no compensation.
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RELATED QUESTIONS
Which of the following events made Gandhiji launch, for the first time, the Civil Disobedience Movement?
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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.
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.
Mark the best option:
Principle: If a person below 18 years of age obtains property or goods by misrepresenting his age, he can be compelled to restore it, but only so long as the same is in his possession.
Facts: Abdullah, aged 16 years went to a furniture shop and misrepresenting his age as 19 years and identity as the son of Zaheer Bhai, the local MLA obtained an ornate stool worth Rupees one thousand on credit and promised to pay back the amount within a week. However, he sold the stool for Rupees eight hundred. Now the shop- owner seeks to recover this amount from Abdullah in lieu of the stool.
Decide Abdullah's liability.
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 removes all price restrictions on an essential medicine. Pharmaceutical companies start selling that medicine at a price nearly 5 times its earlier price. In such a situation, based on the author’s reasoning above:
The design does not include
Year of Digital Millenium Copyright Act
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.
Read both the statements carefully and answer.
Assertion (A): Custom to have the force of law must be followed from time immemorial.
Reason (R): Custom represents the common consciousness of the people.
