Commercial Laws MCQ Quiz - Objective Question with Answer for Commercial Laws - Download Free PDF

The Correct answer is Section 12

Key Points

• Constitution of CIC: Section 12 of the Right to Information (RTI) Act, 2005 provides for the constitution of the Central Information Commission (CIC) by the Central Government.
• Composition:
  • The CIC consists of:
    • The Chief Information Commissioner
    • Up to 10 Information Commissioners
    • Appointment:
    • Appointed by the President of India on the recommendation of a committee comprising the:
      • Prime Minister (Chairperson)
      • Leader of Opposition in Lok Sabha
      • A Union Cabinet Minister nominated by the PM
• The CIC hears appeals and complaints, and ensures compliance with the provisions of the RTI Act by public authorities.

Additional Information

• Section 14: Deals with removal of the Chief Information Commissioner or Information Commissioners.
• Section 15: Provides for the constitution of the State Information Commission.
• Section 19: Relates to the procedure for appeals under the RTI Act.

The correct answer is 'Twenty-five thousand rupees'

Key Points

• Maximum monetary penalty under the RTI Act:
  • The Right to Information (RTI) Act, 2005 empowers the Central Information Commission (CIC) to impose penalties on Central Public Information Officers (CPIOs) for non-compliance with its provisions.
  • Under Section 20(1) of the RTI Act, the CIC can impose a monetary penalty of up to Rs. 25,000 on a CPIO for violations, including refusal to provide information, delaying information, or destroying information that was the subject of a request.
  • The penalty is calculated at a rate of Rs. 250 per day for the period of non-compliance, up to the maximum limit of Rs. 25,000.
• Penalty for destroying information:
  • If a CPIO deliberately destroys information that was requested under the RTI Act, it is considered a serious violation.
  • The CIC can impose the maximum penalty of Rs. 25,000 in such cases as it obstructs transparency and accountability, which are fundamental principles of the RTI Act.

Additional Information

• Explanation of incorrect options:
  • Option 1: Twenty thousand rupees: This is not the correct answer as the RTI Act explicitly states the maximum penalty is Rs. 25,000, not Rs. 20,000.
  • Option 2: Five thousand rupees: Rs. 5,000 is significantly lower than the maximum penalty stipulated under the RTI Act. This option is incorrect as it does not align with the legal framework.
  • Option 4: Fifty thousand rupees: The RTI Act does not mention any penalty amount higher than Rs. 25,000. Rs. 50,000 is outside the scope of the Act and therefore incorrect.
• Importance of penalties under RTI:
  • The penalties serve as a deterrent for officials to ensure compliance with the RTI Act.
  • They promote accountability and transparency in public offices, which are key objectives of the RTI Act.

The correct answer is The Speaker.

Key Points

• Under the Right to Information Act, 2005, the term "competent authority" refers to the authority responsible for decision-making in specified organizations.
• In the case of the House of the People (Lok Sabha), the Speaker is designated as the competent authority as per Section 2(e) of the RTI Act, 2005.
• The Speaker has the power to make rules regarding the information disclosure within the framework of the RTI Act.
• Other examples of competent authorities under the RTI Act include the President for matters related to the Union and the Chief Justice for the judiciary.
• The RTI Act ensures transparency and accountability by mandating public authorities to disclose information to citizens.

Additional Information

• Right to Information Act, 2005:
  • The RTI Act was enacted to ensure transparency and accountability in governance.
  • It empowers citizens to request information from public authorities, which are obligated to respond within 30 days.
  • Exemptions under Section 8 of the Act safeguard sensitive information that affects sovereignty, national security, or privacy.
• Competent Authority:
  • The term "competent authority" refers to specific authorities designated to implement RTI rules and regulations within their respective domains.
  • Examples include the Chief Justice for judicial matters and the President for Union-related matters.
• Lok Sabha Speaker:
  • The Speaker is the presiding officer of the Lok Sabha and is elected by its members.
  • The Speaker plays a crucial role in maintaining order and enforcing rules within the Lok Sabha.
• Transparency in Governance:
  • The RTI Act is a key legislation to promote transparency, allowing citizens to access information about government operations.
  • It is instrumental in combating corruption and ensuring accountability in public administration.

The correct answer is 'Section 8(1)(d).'

Key Points

• Section 8(1)(d) of the RTI Act:
  • Section 8(1)(d) of the Right to Information Act, 2005, provides exemptions to the disclosure of certain information that would harm a third party's competitive position.
  • It explicitly states that information including "trade secrets or commercial confidence, which would harm the competitive position of a third party," is exempt from disclosure unless a larger public interest warrants such disclosure.
  • This provision balances the need for transparency with the protection of sensitive commercial information, ensuring that disclosures do not unfairly harm businesses or individuals.
  • However, if the public interest in accessing such information outweighs the need to protect it, the information can be disclosed, ensuring accountability and serving public welfare.

Additional Information

• Explanation of other sections under RTI Act:
  • Section 8(1)(h): This section exempts information from disclosure if it would impede the process of investigation or apprehension or prosecution of offenders. It does not deal with trade secrets or commercial confidence.
  • Section 8(1)(f): This clause pertains to information received in confidence from a foreign government. It does not address trade secrets or larger public interest considerations.
  • Section 8(1)(e): This section exempts information that is held in a fiduciary relationship, unless disclosure is in the larger public interest. While it mentions public interest, it is specific to fiduciary relationships and not trade secrets.
• Importance of Section 8(1)(d):
  • Section 8(1)(d) is significant as it ensures transparency in governance while safeguarding sensitive business information.
  • It provides a framework to balance confidentiality with accountability, especially in cases where public interest demands access to information that might otherwise be protected.

The correct answer is 'Section 8 of the Right to Information Act'

Key Points

• Section 8 of the Right to Information (RTI) Act:
  • Section 8 of the RTI Act, 2005, provides a detailed list of exemptions under which information cannot be disclosed to the public.
  • This section ensures that sensitive and confidential information related to national security, sovereignty, and public safety is protected from being disclosed.
  • Key exemptions include information that would:
    • Prejudicially affect the sovereignty and integrity of India or its strategic interests.
    • Cause a breach of privilege of the Parliament or State Legislature.
    • Harm ongoing investigations or reveal sources of intelligence.
    • Violate the privacy of an individual or endanger the life and safety of any person.
  • In exceptional cases, even exempted information may be disclosed if it serves a larger public interest.

Additional Information

• Section 9:
  • Section 9 of the RTI Act deals with cases where access to information is denied if it would involve an infringement of copyright held by a third party.
  • It is not related to general exemptions from disclosure like Section 8.
• Section 7:
  • Section 7 specifies the procedure for disposal of RTI requests, including time limits for providing information, fees, and grounds for rejection.
  • It does not address exemptions from disclosure.
• Section 10:
  • Section 10 allows for partial disclosure of information if only certain portions of a record are exempt under Section 8 or 9.
  • It ensures that non-exempt information is still accessible to the requester.

The correct answer is Deemed Rejection.

What is deemed Rejection?

• If the Public Information Officer fails to give information to the informant within the period specified under the Right to Information Act, it is called deemed Rejection.

The Correct Answer is None of A, B and C.

 Key Points

• NCB has been declared an exempt organization under Section 24(1) of the RTI Act, 2005. 
• Under Section 24 read with the 2^nd Schedule of the RTI Act, 2005, the Directorate of Enforcement was exempted from disclosure of information.
• Research And Analysis Wing is Exempted From Disclosures Under RTI.

 Important Points

• The Right to Information Act 2005 is a law enacted by the Parliament of India giving Indians access to Government records.
• Under the terms of the Act, any person may request information from a "public authority" (a body of Government or instrumentality of State) which is expected to reply expeditiously or within thirty days.

 Additional Information

• The following are exempted from the purview of the Act:
  • Matters pertaining to national sovereignty and integrity
  •  Information expressly prohibited to be published by a court of law
  • Information regarding commercial confidence, trade secrets or intellectual property, etc.

File notings do not come under the definition of 'information' under the RTI Act 2005.

Section 2(f) of the RTI Act defines 'Information' as any material in any form, including records, documents, memos, e-mails, opinions, advice, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force.

 In Right to Information Act (RTI Act), 2005, information" means any material in any form, including records, documents, memos, e-mails, opinions, advice, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force.

File notings indicates the thought process of the government which not comes under the definition of 'information' under RTI Act 2005.

Right to Information (RTI) is an act that sets out rules and regulations regarding citizen's right to information. It replaced the former Freedom of Information Act, 2002.

RTI Act 2005:

• The RTI Bill was passed in Parliament and come into force from October 12, 2005.​
• The basic objective of the RTI Act is to empower the citizens, promote transparency and accountability in the working of the Government, contain corruption, and make our democracy work for the people in the real sense.
• Any citizen may request information about the activities of the Public authority i.e. Government authority.  
• The information can be obtained within 30 days from the date of request in normal case and in the matter of life or liberty of a person, information can be obtained within 48 hours from the time of the request.
• Certain information is prohibited under Section 8.
• An appeal against the decision of the Central Information Commission or State Information Commission can be made to an officer who is senior in rank.
• There is a nominal application fee that is needed to be paid to get information under the RTI application.
• The nominal fee to get the information is Rs. 10 for every application as per Rule 3 of the RTI Rules, 2005.

Therefore, Statements (A), (B), (E) only is not correct about the RTI Act, 2005.

The correct answer is (A), (B), (C) and (D) all

Key Points Right to Information Act 2005:

• RTI act 2005 is a law enacted by the parliament of India, giving citizens of India access to records of the central government and state governments.
• The Act applies to all States and Union Territories of India, except the state of Jammu and Kashmir – which is covered under a State-level law.
• It came into force on 12 October 2005 

Important Points

Objectives of RTI act 2005 are:

• To operationalise the fundamental right to information
• To set up system and mechanisms that facilitate people's easy access to information
• To promote transparency and accountability in governance
• To minimize corruption and inefficiency in public offices and ensure people participation in governance and decision-making.

The correct answer is The Speaker.

Key Points

• Under the Right to Information Act, 2005, the term "competent authority" refers to the authority responsible for decision-making in specified organizations.
• In the case of the House of the People (Lok Sabha), the Speaker is designated as the competent authority as per Section 2(e) of the RTI Act, 2005.
• The Speaker has the power to make rules regarding the information disclosure within the framework of the RTI Act.
• Other examples of competent authorities under the RTI Act include the President for matters related to the Union and the Chief Justice for the judiciary.
• The RTI Act ensures transparency and accountability by mandating public authorities to disclose information to citizens.

Additional Information

• Right to Information Act, 2005:
  • The RTI Act was enacted to ensure transparency and accountability in governance.
  • It empowers citizens to request information from public authorities, which are obligated to respond within 30 days.
  • Exemptions under Section 8 of the Act safeguard sensitive information that affects sovereignty, national security, or privacy.
• Competent Authority:
  • The term "competent authority" refers to specific authorities designated to implement RTI rules and regulations within their respective domains.
  • Examples include the Chief Justice for judicial matters and the President for Union-related matters.
• Lok Sabha Speaker:
  • The Speaker is the presiding officer of the Lok Sabha and is elected by its members.
  • The Speaker plays a crucial role in maintaining order and enforcing rules within the Lok Sabha.
• Transparency in Governance:
  • The RTI Act is a key legislation to promote transparency, allowing citizens to access information about government operations.
  • It is instrumental in combating corruption and ensuring accountability in public administration.

The correct answer is 'Section 8(1)(d).'

Key Points

• Section 8(1)(d) of the RTI Act:
  • Section 8(1)(d) of the Right to Information Act, 2005, provides exemptions to the disclosure of certain information that would harm a third party's competitive position.
  • It explicitly states that information including "trade secrets or commercial confidence, which would harm the competitive position of a third party," is exempt from disclosure unless a larger public interest warrants such disclosure.
  • This provision balances the need for transparency with the protection of sensitive commercial information, ensuring that disclosures do not unfairly harm businesses or individuals.
  • However, if the public interest in accessing such information outweighs the need to protect it, the information can be disclosed, ensuring accountability and serving public welfare.

Additional Information

• Explanation of other sections under RTI Act:
  • Section 8(1)(h): This section exempts information from disclosure if it would impede the process of investigation or apprehension or prosecution of offenders. It does not deal with trade secrets or commercial confidence.
  • Section 8(1)(f): This clause pertains to information received in confidence from a foreign government. It does not address trade secrets or larger public interest considerations.
  • Section 8(1)(e): This section exempts information that is held in a fiduciary relationship, unless disclosure is in the larger public interest. While it mentions public interest, it is specific to fiduciary relationships and not trade secrets.
• Importance of Section 8(1)(d):
  • Section 8(1)(d) is significant as it ensures transparency in governance while safeguarding sensitive business information.
  • It provides a framework to balance confidentiality with accountability, especially in cases where public interest demands access to information that might otherwise be protected.

The correct answer is 'Section 8 of the Right to Information Act'

Key Points

• Section 8 of the Right to Information (RTI) Act:
  • Section 8 of the RTI Act, 2005, provides a detailed list of exemptions under which information cannot be disclosed to the public.
  • This section ensures that sensitive and confidential information related to national security, sovereignty, and public safety is protected from being disclosed.
  • Key exemptions include information that would:
    • Prejudicially affect the sovereignty and integrity of India or its strategic interests.
    • Cause a breach of privilege of the Parliament or State Legislature.
    • Harm ongoing investigations or reveal sources of intelligence.
    • Violate the privacy of an individual or endanger the life and safety of any person.
  • In exceptional cases, even exempted information may be disclosed if it serves a larger public interest.

Additional Information

• Section 9:
  • Section 9 of the RTI Act deals with cases where access to information is denied if it would involve an infringement of copyright held by a third party.
  • It is not related to general exemptions from disclosure like Section 8.
• Section 7:
  • Section 7 specifies the procedure for disposal of RTI requests, including time limits for providing information, fees, and grounds for rejection.
  • It does not address exemptions from disclosure.
• Section 10:
  • Section 10 allows for partial disclosure of information if only certain portions of a record are exempt under Section 8 or 9.
  • It ensures that non-exempt information is still accessible to the requester.

The correct answer is 'forward the application to the concerned authority'

Key Points

• Forwarding the application to the concerned authority:
  • Under the Right to Information (RTI) Act, 2005 in India, public authorities are required to provide information to citizens upon request, promoting transparency and accountability in governance.
  • If the information requested by an applicant is held by another public authority, the RTI Act mandates that the authority receiving the application must forward it to the appropriate authority within five days of receipt.
  • Additionally, the applicant must be informed about this transfer, ensuring that the process is transparent and the applicant is aware of the progress of their request.
  • This provision prevents applicants from being burdened with the task of figuring out which specific authority holds the information and ensures seamless access to information.

Additional Information

• Other options explained:
  • Return the application: Public authorities are not allowed to simply return the application if the requested information is not within their jurisdiction. Returning the application would defeat the purpose of the RTI Act, which aims to facilitate access to information.
  • Impose a fine: Imposing a fine is not the responsibility of the authority receiving the application. Fines under the RTI Act are levied only in cases of non-compliance, delay, or refusal to provide information without justified reasons.
  • Reject the application: Rejecting the application without valid reasons is against the principles of the RTI Act. If the information is not held by the concerned authority, the proper procedure is to forward the application, not reject it.