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B.A. LL.B. (Five Years) Sem 9 Competition Law 2025 Jan Question Paper with Solutions - KSLU

KSLU Solved Question Papers

Competition Law

Previous Year Question Paper with Solution

B.A. LL.B. (Five Years) · Sem 9

2025 Jan Examination

munotes.in

Mumbai

First published on munotes.in on 21 October 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2025 Jan examination.

The Paper as Set

The questions in this volume are the questions asked at the 2025 Jan examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.

Duration 3 hours · Total marks 80 · 20 questions answered

Instructions printed on the paper

N.B. (1) Answer all five Units. (2) One essay type question and short note/problem is compulsory from each Unit. (3) Figures to the right indicate marks. (4) Answer should be written either in English or Kannada completely.

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Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

Read the original question paper

Q1

Unit I

(a)Explain the constitutional provisions regarding 'Regulation of Trade' and 'Protection of Consumers'.[10]

Answer

For full marks, cover: Part I, regulation of trade: the right to trade and reasonable restrictions (Article 19(1)(g) and 19(6)), Mohd. Hanif Quareshi v. The State of Bihar; freedom of trade across India (Articles 301 to 304) as settled in Jindal Stainless Ltd v. State of Haryana; directive principles against concentration (Article 39(b) and (c)); the legislative entries (List III, Entries 21, 33 and 34; List I, Entry 42). Part II, protection of consumers: Articles 21, 14 and 47 with Consumer Education and Research Centre v. Union of India and Life Insurance Corporation of India v. Consumer Education and Research Centre; the entries on adulteration, drugs and weights and measures; the laws made on them; a table.

Introduction

The Constitution does not use the words "competition" or "consumer protection". Yet it contains the foundations of both. It protects the freedom to trade but lets the State restrict it in the public interest. It also treats the health and welfare of the people, who are the consumers, as a constitutional value.

Part I: Regulation of trade

1. The right and its limits. Article 19(1)(g) guarantees every citizen the right to carry on any occupation, trade or business. Article 19(6) allows reasonable restrictions "in the interests of the general public". It also allows the State, or its corporations, to carry on any trade to the exclusion of citizens.

Mohd. Hanif Quareshi v. The State of Bihar, decided by a Constitution Bench on 23 April 1958, tested such restrictions. Butchers challenged State laws banning the slaughter of cattle, made under Article 48. The Supreme Court held that directive principles do not override fundamental rights but must be harmonised with them. A total ban on slaughter of cows, calves and she-buffaloes was a reasonable restriction. A total ban on slaughter of animals no longer useful was not. Reasonableness is judged by balancing the trader's right against the public interest.

2. Free trade across India. Article 301 declares that trade, commerce and intercourse throughout India "shall be free". Parliament may restrict it in the public interest (Article 302). A State may tax goods from other States without discrimination (Article 304(a)). It may impose reasonable restrictions with the President's prior sanction for the Bill (Article 304(b)).

Jindal Stainless Ltd v. State of Haryana, (2017) 12 SCC 1, decided by nine judges on 11 November 2016, settled the meaning of these articles. By majority, the Court held that non-discriminatory taxes are outside Part XIII, and only discriminatory taxes offend Article 304(a). It rejected the compensatory tax theory and stressed the balance between the Union and the States.

3. Directive principles. Article 39(b) directs that the material resources of the community be distributed to serve the common good. Article 39(c) directs that the economic system must not concentrate wealth and the means of production "to the common detriment". Competition law, which stops cartels and monopolistic abuse, carries out these directives.

4. Legislative power. List III, Entry 21 covers "Commercial and industrial monopolies, combines and trusts". Entry 33 covers trade in the products of controlled industries and in foodstuffs, and Entry 34 covers "Price control". List I, Entry 42 covers inter-State trade and commerce. The Competition Act, 2002 and the Essential Commodities Act, 1955 rest on these entries.

Part II: Protection of consumers

1. Right to life (Article 21). The Supreme Court has read Article 21 to include health and a life with dignity, which protects consumers of unsafe goods and services.

Consumer Education and Research Centre v. Union of India, (1995) 3 SCC 42, decided on 27 January 1995, concerned workers in asbestos industries who suffered from asbestosis. The Court held that a worker's right to health and medical aid is a fundamental right under Article 21. It read Article 21 with Articles 39(e), 41, 43 and 48A. It directed industries to keep each worker's health record for at least forty years and to insure every worker's health. A consumer organisation brought the case, showing how consumer groups use the Constitution.

2. Equality (Article 14). When the State or its corporations supply goods or services, their terms must not be arbitrary.

Life Insurance Corporation of India v. Consumer Education and Research Centre, (1995) 5 SCC 482, decided on 10 May 1995, concerned LIC's cheapest life policy, offered only to employees of government and reputed firms. The Supreme Court struck down that condition. LIC is an instrumentality of the State, and the exclusion was arbitrary, violating Articles 14 and 21.

3. Public health (Article 47). The State must regard raising nutrition and the standard of living, and improving public health, "as among its primary duties". It must try to prohibit intoxicating drinks and drugs injurious to health, except for medicinal use.

4. Legislative entries for consumers. List III, Entry 18 covers "Adulteration of foodstuffs and other goods" and Entry 19 covers "Drugs and poisons". List I, Entry 50 covers standards of weight and measure. On these entries rest the food safety, drugs and weights and measures laws. The Consumer Protection Act, 2019 gives consumers rights and quick remedies.

The provisions at a glance

Aim	Provision	What it does
Free trade	Art. 19(1)(g), 301	Right to trade; free movement across India
Regulation	Art. 19(6), 302, 304	Reasonable restrictions in the public interest
Against concentration	Art. 39(b), (c)	Basis of competition law
Consumer health	Art. 21, 47	Health and safety as State duties

Aim	Provision	What it does
Fair dealing by the State	Art. 14	No arbitrary terms for consumers
Law making	List III, Entries 18, 19, 21, 33, 34	Adulteration, drugs, monopolies, trade, prices

Conclusion. The Constitution regulates trade by guaranteeing the freedom to trade while allowing reasonable restrictions. It keeps trade free across India and directs the State against concentration of wealth. It protects consumers through the rights to life and equality, the duty to improve public health, and legislative powers over adulteration, drugs, monopolies and prices. Hanif Quareshi and Jindal Stainless show the limits of trade regulation, and the two Consumer Education and Research Centre cases show consumers using the Constitution.

B.A. LL.B. (Five Years) Sem 9 Competition Law 2025 Jan Question Paper with Solutions

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