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    Question

    Five cement manufacturers in India agreed through

    regular meetings to maintain uniform prices and allocate market territories. Each manufacturer was assigned specific regions to operate without competition from others. Under the Competition Act, which statements are correct? Statement 1: This constitutes a cartel under Section 3 of the Competition Act. Statement 2: The manufacturers can claim exemption if they prove the agreement benefits consumers. Statement 3: The CCI can impose penalties up to 10% of turnover on each manufacturer. Statement 4: A manufacturer disclosing the cartel first can seek reduced penalties under Section 46. Which statements are correct?
    A Statements 1, 3, and 4 only Correct Answer Incorrect Answer
    B Statements 1, 2, and 3 only Correct Answer Incorrect Answer
    C Statements 1 and 4 only Correct Answer Incorrect Answer
    D Statements 2, 3, and 4 only Correct Answer Incorrect Answer
    E All statements are correct Correct Answer Incorrect Answer

    Solution

    Price-fixing and market allocation constitute cartel—Statement 1 is correct. No general exemption for consumer benefit in hard-core cartels—Statement 2 is incorrect. CCI can impose up to 10% penalty—Statement 3 is correct. First discloser gets reduced penalty under Section 46—Statement 4 is correct. Statements 1, 3, and 4 are correct.

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