Quick Answer: What Is The Main Purpose Of Competition Law Mcq?

What is the main purpose of competition law?

A core objective of competition law is to prohibit firms for engaging in conduct which will distort the competitive process and harm competition by, for example, preventing firms from indulging in anti-competitive agreements, preventing firms with a powerful position on a market from abusing their market power, or ….

What is competition law designed for?

Competition law is designed to protect businesses and consumers from anti-competitive behaviour. The law safeguards effective competition in order to deliver open, dynamic markets and enhanced productivity, innovation and value for customers.

What do you understand by competition law?

Competition law is a law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. … Since the 20th century, competition law has become global.

Is competition a process?

‘Competition is a continuing process of discovery, creation and co-ordination.

Which of the following is the first country to adopt competition law?

Industrialized country competition laws Canada and United States were among the first nations to enact specific Page 15 Application of Competition Law: Exemptions and Exceptions 12 competition legislation dealing with anti-competitive business practices (in 1889 and 1890 respectively).

Who is a person according to Competition Act 2002?

Moving forward, we come to Section 2(l) of the Act which provides with the definition of the person. A person includes: Any artificial juridical person, local authority or any cooperative society. Any corporate body that gets incorporated under or by the laws of a country other than India.

What are the types of competition?

Economists have identified four types of competition—perfect competition, monopolistic competition, oligopoly, and monopoly.

What are the two prohibitions of competition law?

UK and EU competition law prohibit two main types of anti-competitive activity: anti-competitive agreements (under the Chapter I / Article 101 prohibitions); and. abuse of a dominant market position (under the Chapter II / Article 102 prohibitions).

What is the purpose of competition policy of India and Competition Act 2002?

The main objectives of the Competition Act, 2002 are: to provide the framework for the establishment of the Competition Commission. to prevent monopolies and to promote competition in the market. to protect the freedom of trade for the participating individuals and entities in the market.

What is generally accepted as the starting point of modern competition law?

The American Sherman Acts of 1890 is taken as the starting point of modern competition law but the roots of competition law lie much deeper. However, after the American Sherman Act of 1890, this competition law was enacted in the law of many nations.

What are the objectives of competition?

Competition policies are intended to promote efficiency, to maximize consumer or social welfare, and to help in the creation of a business environment which is based on fairness, leads to efficient resource allocation and in which abuse of market power is prevented or curbed.

Who does competition law apply?

This mainly applies to businesses that have a large market share, usually 40 per cent or more. Other factors taken into consideration in determining whether a company is dominant include the number and size of competitors and customers and whether new businesses can easily set up in competition.

Why is the Competition Act important for businesses?

The benefits of competition are well known: lower prices and more product choice for consumers, and more efficient, dynamic and innovative firms. … Competition promotes quality, efficiency and consistent improvement, and it disciplines firms to the challenges of the marketplace.

Why were antitrust laws introduced from the 1890s?

The goal of these laws was to protect consumers by promoting competition in the marketplace. The U.S. Congress passed several laws to help promote competition by outlawing unfair methods of competition: … Passed in 1890, it makes it illegal for competitors to make agreements with each other that would limit competition.

Is price fixing illegal?

When competitors agree to restrict competition, the result is often higher prices. Accordingly, price fixing is a major concern of government antitrust enforcement. A plain agreement among competitors to fix prices is almost always illegal, whether prices are fixed at a minimum, maximum, or within some range.

What is a competition?

1 : the act or process of competing : rivalry: such as. a : the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms contractors in competition for the contract to build the new school.

Is monopoly illegal in India?

The Competition Act, 2002 was enacted by the Parliament of India and governs Indian competition law. It replaced the archaic The Monopolies and Restrictive Trade Practices Act, 1969. … This act extends to whole of India except Jammu and Kashmir.

What is the law of competition Carnegie?

Under the law of competition, the employer of thousands is forced into the strictest economies, among which the rates paid to labor figure prominently, and often there is friction between the employer and the employed, between capital and labor, between rich and poor. Human society loses homogeneity.