BUSINESS LAW
Does the tie in-arrangement between MRF and the Exhibitors amount to having “adverse appreciable effects on Competition
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Please list out the factors that affect “Free Consent” to enter into a contract. Give an example for each of the factors that affect free consent to enter into a contract.
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What are the Rights of the Consumer, explain atleast 2 real life instances where the rights of consumer have been upheld and protected.
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Vijay Singh is a leading filmmaker in India who plans to release his upcoming blockbuster romantic movie during the Diwali festival weekend of 2016. However, he has learnt that a production house Mukesh Raj Films (MRF) has blocked the single screens and multiplexes theaters (“Exhibitors”) only for screening of their film for the same Diwali festival weekend. In fact Vijay Singh has also found out that MRF had earlier in the year during the Eid festival launched a blockbuster movie and during the negotiation for screening the said Film imposed a condition that he would grant rights to screen the movie only if he was provided with the exclusive rights to screen another movie during the Diwali Weekend. Therefore, MRF and Exhibitors had entered into a tie-in arrangement for exclusive exhibition of the films in Eid and Diwali Festival Weekend respectively. Thus, preventing Vijay Singh from exhibiting his film.
Vijay Singh has now approached the Competition Commission of India for relief.
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a) Does the tie in-arrangement between MRF and the Exhibitors amount to having “adverse appreciable effects on Competition”. Please quote the relevant precedent to support your answer.
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b) Please list out the penalties stated under the Competition Act, 2002 and atleast quote one instance where Competition Commission India has imposed penalty along with the brief description of such instance.
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