ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    A pharmaceutical company with 60% market share in a

    particular drug category refused to supply to a distributor who was also selling competitors' products. The refusal had no legitimate justification. Under Section 4 of the Competition Act, which statements are correct? Statement 1: The company's refusal constitutes abuse of dominance under Section 4. Statement 2: Market share of 60% establishes dominance for Section 4 purposes. Statement 3: The refusal is justified if the distributor failed to meet payment obligations. Statement 4: Refusal to supply can be an abuse even by a dominant firm if it causes exclusionary effects. Which statements are correct?
    A Statements 1, 2, and 4 only Correct Answer Incorrect Answer
    B Statements 2 and 3 only Correct Answer Incorrect Answer
    C Statements 1 and 3 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

    Refusal to supply by dominant firm is abuseтАФStatement 1 is correct. 60% market share indicates dominanceтАФStatement 2 is correct. Failure of legitimate justification makes it abuseтАФStatement 3 is incorrect (could be justified). Refusal with exclusionary intent is abuseтАФStatement 4 is correct. Statements 1, 2, and 4 are correct.

    Practice Next
    More Other Laws and Acts Questions

    Relevant for Exams:

    ask-question