Question

Which of the following Acts is framed to prevent monopolistic practices and regulate the conduct or business practices of firms that are not in public interest:

• A. Multilateral Trade Agreement Act
• B. Monopolies Restructive Trade Practices Act
• C. Monopolies Reformative Trade Practices Act
• D. Monopoly Reconstructive Trading Practice Act

Hint:

Be aware of major economic legislations in India and their evolution. Knowing that the MRTP Act, 1969 was replaced by the Competition Act, 2002 is a crucial piece of information for modern context.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
The question asks to identify the Indian legislation enacted to curb monopolies and regulate unfair or restrictive business practices.

Step 2: Detailed Explanation:
The correct name of the act is the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969. This act was the first major piece of legislation in India aimed at regulating free trade and preventing the concentration of economic power that could be detrimental to the public interest. Its objectives were to control monopolies and prohibit monopolistic, restrictive, and unfair trade practices.

Step 3: Analyzing the Options:
The options provided seem to have slight inaccuracies in their wording. Let's analyze them:

(A) Multilateral Trade Agreement Act: This is a general term and not the name of a specific Indian act for controlling monopolies.
(B) Monopolies Restructive Trade Practices Act: This option is the closest to the actual name "Monopolies and Restrictive Trade Practices Act". The word "Restructive" is likely a typographical error for "Restrictive".
(C) Monopolies Reformative Trade Practices Act: The term "Reformative" is incorrect. The act was about restricting, not reforming, such practices.
(D) Monopoly Reconstructive Trading Practice Act: The terms "Reconstructive" and "Trading" are incorrect in this context.
Given the choices, option (B) is the intended and most accurate answer, despite the minor typo.

Step 4: Final Answer:
The most appropriate answer is the Monopolies Restructive Trade Practices Act, which refers to the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969. It is important to note that the MRTP Act was repealed and replaced by the Competition Act, 2002.