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    Question

    What does "resale price maintenance" refer to in the

    context of agreements for selling goods or providing services?
    A A condition that requires the purchaser to sell goods at prices stipulated by the seller, unless lower prices are explicitly allowed Correct Answer Incorrect Answer
    B An agreement that allows the buyer to set their own resale prices without restrictions Correct Answer Incorrect Answer
    C A practice that encourages competition by allowing flexibility in pricing Correct Answer Incorrect Answer
    D An agreement that only applies to services and not goods Correct Answer Incorrect Answer
    E A contract that focuses solely on the quality of goods rather than pricing Correct Answer Incorrect Answer

    Solution

    Section 3 Anti-competitive agreements: (4) Any other agreement amongst enterprises or persons including but not restricted to agreement amongst enterprises or persons at different stages or levels of the production chain in different markets, in respect of production, supply, distribution, storage, sale or price of, or trade in goods or provision of services, including- (a) tie-in arrangement; (b) exclusive dealing agreement; (c) exclusive distribution agreement; (d) refusal to deal; (e) resale price maintenance, shall be an agreement in contravention of sub-section (1) if such agreement causes or is likely to cause an appreciable adverse effect on competition in India. Provided that nothing contained in this sub-section shall apply to an agreement entered into between an enterprise and an end consumer. Explanation.--For the purposes of this sub-section: (e) "resale price maintenance" includes, in case of any agreement to sell goods or provide services, any direct or indirect restriction that the prices to be charged on the resale by the purchaser shall be the prices stipulated by the seller unless it is clearly stated that prices lower than those prices may be charged.

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