This document provides information about a course on business environment at the Institute - University School of Business. It discusses the MRTP Act, including its objectives before and after amendment in 1991. The key points covered are: - The MRTP Act was designed to prevent concentration of economic power and regulate monopolies and restrictive/unfair trade practices. - Monopolistic practices refer to abuse of market power to charge high prices. Restrictive practices harm competition. - The act regulates these practices by prohibiting anti-competitive actions and setting product standards. Agreements involving unfair practices are made void or modified. - Assessment includes tests, assignments, quizzes, and class participation, with the maximum marks being

1. DISCOVER . LEARN . EMPOWER
INSTITUTE –University School of
Business
DEPARTMENT -Management
M.B.A
Business Environment -BAO 610
Faculty Name : Reepu
(Assistant Professor)
1
UNIT-2
Business Environment

2. LEARNING OBJECTIVES & LEARNING OUTCOMES
After studying this chapter, you should be able to:
 Know about MRTP act
 Understand the Provisions of the Act.

3. 3
Business
Environment
Course Outcome
Will be covered in this
lecture
https:// IMS Proschool
CO
Number
Title Level
CO1 To understand fundamental concepts of business
environment.
Remember
CO2 To comprehend how distinct components of business
environment influence on business.
Understand
CO3 To interpret how global business environment affects
domestic businesses
Understand

4. Topic – 16
MRTP Act
4
Source : Martin

5. Introduction
5
The Monopolies And Restrictive Trade Practices Act, 1969 is an important piece of
economic legislation designed to ensure that the operation of the economic
system does not result in the concentration of economic power to the common
detriment.
The act came into force from 1st June, 1970, and has been amended in 1991.

6. Objectives
6
Before Amendment
in1991:-
 Regulation of monopolies
and prevention of
concentration of
economic power.
 Prohibit monopolistic,
restrictive and unfair
trade practices.
After Amendment in 1991:-
 Controlling
monopolistic trade
practices.
 Regulating restrictive
and unfair trade
practices.

7. Monopolies And Restrictive Trade Practices
7
• Monopolistic Trade Practices
• Restrictive Trade Practices
• Unfair Trade Practices

8. Monopolies And Restrictive Trade Practices
8
It means in order to maximize profit and to increase market power, certain
business firms unreasonably charge high prices to prevent competition in the
production & distribution of goods and services.
It is a trade practice which represents the abuse of the market power by charging
unreasonably high prices.

9. Regulation of Monopolies And Restrictive Trade
Practices
9
• Regulation of production and fixing the term of sale.
• Prohibiting any action that restricts competition.
• Fixing standards for goods produced.

10. Restrictive Trade Practices
10
 A trade practice which restricts or reduces competition may be termed as
Restrictive Trade Practices and it harm the consumer interest.
 Because of their adverse effect on the consumer and public interest, they are
sought to be regulated in almost every country of the world

11. Regulation of Restrictive Trade Practices
11
• The practice shall not be repeated.
• The agreement shall be void and shall stand modified in such a manner as may be
specified in the order.

12. Unfair Trade Practices
12
 Unfair trade practice means a trade practice which, for the purpose of promoting
the sale, use or supply of any goods or for the provision of any service, adopts
any unfair or deceptive practice.

13. Regulation of Unfair Trade Practices
13
• The practice shall not be repeated.
• Any agreement relating to such an UTP shall be void or shall stand modified in
such a manner as may be directed by the commission.

14. TextBooks:
• Paul, J. 2018. Business Environment: Text and Cases, 4thEdition, Tata McGraw Hill, India,
• Cherunilam, F. 2017. Business Environment: Text and Cases.26thEdition, Himalaya Publishing,
India, ISBN: 978-9352733361.
Reference Book:-
• Business Environment, 13th Edition, Pearson Education India, India, ISBN: 9788131731581.
14
References

15. Assessment Pattern
15
Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled
Marks
Max. Marks 10 10 6 4 4 4 2 40

16. THANK YOU
For queries
Email:
reepu.usb@cumail.in
16