Research Methodology Important Question and Answer

8/14/2019 Research Methodology Important Question and Answer

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MBA Semester III MB0050

MB0050Research Methodology

Assignment SetI

Q 1. Why should a manger know about research when the job entails managing

people, products, events, environments, and the like?

The manager, while managing people, products, events, and environments will invariably

face problems, big and small, and will have to seek ways to find long lasting effective

solutions. This can be achieved only through knowledge of research even if consultants are

engaged to solve problems.

The primary purpose for applied research (as opposed to basic research) is discovering,

interpreting, and the development of methods and systems for the advancement of human

knowledge on a wide variety of scientific matters of our world and the universe. Research

can use the scientific method, but need not do so. The goal of the research process is

to produce new knowledge, which takes three main forms (although, the boundaries

between them may be fuzzy):

Exploratory research, which structures and identifies new problems Constructive research,

which develops solutions to a problem Empirical research, which tests the feasibility of a

solution using empirical evidence.

The research room at the New York Public Library, an example of secondary research in

progress. Research can also fall into two distinct types:

Primary research

Secondary research

In social sciences and later in other disciplines, the following two research methods can be

applied, depending on the properties of the subject matter and on the objective of the

research:

Qualitative research

Quantitative research

Research is often conducted using the hourglass model Structure of Research. The

hourglass model starts with a broad spectrum for research, focusing in on the required

information through the methodology of the project (like the neck of the hourglass), then

expands the research in the form of discussion and results.

Research and development is nowadays of great importance in business as the level of

competition, production processes and methods are rapidly increasing. It is of special

importance in the field of marketing where companies keep an eagle eye on competitors and

customers in order to keep pace with modern trends and analyze the needs, demands anddesires of their customers.


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Unfortunately, research and development are very difficult to manage, since the defining

feature of research is that the researchers do not know in advance exactly how to

accomplish the desired result. As a result, higher R&D spending does not guarantee more

creativity, higher profit or a greater market share.

Q2. a. How do you evolve research design for exploratory research? Briefly analyze.

b. Briefly explain Independent dependent and extraneous variables in a research

design.

Answer:

a. Research design in case of exploratory research studies Exploratory research studies are

also termed as formulative research studies. The main purpose of such studies is that of

formulating a problem for more precise investigation or of developing the working hypothesis

from an operational point of view. The major emphasis in such studies is on the discovery of

ideas and insights. As such the research design appropriate for such studies must be flexible

enough to provide opportunity for considering different aspects of a problem under study.

Inbuilt flexibility in research design is needed because the research problem, broadly defined

initially, is transformed into one with more precise meaning in exploratory studies, which fact

may necessitate changes in the research procedure for gathering relevant data. Generally,

the following three methods in the context of research design for such studies are talked

about:

1. The survey of concerning literature happens to be the most simple and fruitful method offormulating precisely the research problem or developing hypothesis. Hypothesis stated by

earlier workers may be reviewed and their usefulness be evaluated as a basis for further

research. It may also be considered whether the already stated hypothesis suggests new

hypothesis. In this way the researcher should review and build upon the work already done

by others, but in cases where hypothesis have not yet been formulated, his task is to review

the available material for deriving the relevant hypothesis from it. Besides, the bibliographical

survey of studies, already made in ones area of interest may as well as made by the

researcher for precisely formulating the problem. He should also make an attempt to apply

concepts and theories developed in different research contexts to the area in which he is

himself working. Sometimes the works of creative writers also provide a fertile ground forhypothesis formulation as such may be looked into by the researcher.

2. Experience survey means the survey of people who have had practical experience with

the problem to be studied. The object of such a survey is to obtain insight into the

relationships between variables and new ideas relating to the research problem. For such a

survey, people who are competent and can contribute new ideas may be carefully selected

as respondents to ensure a representation of different types of experience. The respondents

so selected may then be interviewed by the investigator. The researcher must prepare an

interview schedule for the systematic questioning of informants. But the interview must

ensure flexibility in the sense that the respondents should be allowed to raise issues andquestions which the investigator has not previously considered. Generally, the experience of


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collecting interview is likely to be long and may last for few hours. Hence, it is often

considered desirable to send a copy of the questions to be discussed to the respondents

well in advance. This will also give an opportunity to the respondents for doing some

advance thinking over the various issues involved so that, at the time of interview, they may

be able to contribute effectively. Thus, an experience survey may enable the researcher to

define the problem more concisely and help in the formulation of the research hypothesis.

This, survey may as well provide information about the practical possibilities for doing

different types of research.

3. Analyses of insight-stimulating examples are also a fruitful method for suggesting

hypothesis for research. It is particularly suitable in areas where there is little experience to

serve as a guide. This method consists of the intensive study of selected instance of the

phenomenon in which one is interested. For this purpose the existing records, if nay, may be

examined, the unstructured interviewing may take place, or some other approach may be

adopted. Attitude of the investigator, the intensity of the study and the ability of the

researcher to draw together diverse information into a unified interpretation are the main

features which make this method an appropriate procedure for evoking insights. Now, what

sorts of examples are to be selected and studied? There is no clear cut answer to it.

Experience indicates that for particular problems certain types of instances are more

appropriate than others. One can mention few examples of insight -stimulatingcases such

as the reactions of strangers, the reactions of marginal individuals, the study of individuals

who are in transition from one stage to another, the reactions of individuals from different

social strata and the like. In general, cases that provide sharp contrasts or have striking

features are considered relatively more useful while adopting this method of hypothesis

formulation. Thus, in an exploratory of formulative research study which merely leads toinsights or hypothesis, whatever method or research design outlined above is adopted, the

only thing essential is that it must continue to remain flexible so that many different facets of

a problem may be considered as and when they arise and come to the notice of the

researcher.

b. Dependent and Independent variables: A magnitude that varies is known as a variable.

The concept may assume different quantitative values, like height, weight, income, etc.

Qualitative variables are not quantifiable in the strictest sense of objectivity. However, the

qualitative phenomena may also be quantified in terms of the presence or absence of theattribute considered. Phenomena that assume different values quantitatively even in decimal

points are known as continuous variables. But, all variables need not be continuous.

Values that can be expressed only in integer values are called non-continuous variables. In

statistical term, they are also known as discrete variable. For example, age is a continuous

variable; where as the number of children is a non-continuous variable. When changes in

one variable depends upon the changes in one or more other variables, it is known as a

dependent or endogenous variable, and the variables that cause the changes in the

dependent variable are known as the independent or explanatory or exogenous variables.

For example, if demand depends upon price, then demand is a dependent variable, while

price is the independent variable.


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And if, more variables determine demand, like income and prices of substitute commodity,

then demand also depends upon them in addition to the own price. Then, demand is a

dependent variable which is determined by the independent variables like own price, income

and price of substitute.

2. Extraneous variable: The independent variables which are not directly related to the

purpose of the study but affect the dependent variable are known as extraneous variables.

For instance, assume that a researcher wants to test the hypothesis that there is relationship

between childrens school performance and their self-concepts, in which case the latter is an

independent variable and the former, the dependent variable. In this context, intelligence

may also influence the school performance. However, since it is not directly related to the

purpose of the study undertaken by the researcher, it would be known as an extraneous

variable. The influence caused by the extraneous variable on the dependent variable is

technically called as an experimental error. Therefore, a research study should always be

framed in such a manner that the dependent variable completely influences the change in

the independent variable and any other extraneous variable or variables.

Q3. A. Differentiate between Census survey and Sample Survey.

b. Analyze multi-stage and sequential sampling.

Answer:

Surveys are done all over the world to collect information from the populace to arrive at

conclusions that help in improving the products or services of a company. There are many

techniques of survey out of which sample survey and census survey are very popular.Though there are many similarities between these two methods, there are many differences

in features and also the results obtained. It depends upon time available and other

circumstances to engage in either of the two types of surveys. This article will discuss the

features of two types of surveys to clear the doubts in the minds of the readers.

Before we begin to differentiate, it is pertinent to note that sample is a portion of the

population whereas census takes into consideration everyone in the population. This

obviously means that a census survey is a much bigger exercise in nature and procedures

than a sample survey. Census survey also is a very time consuming exercise as information

needs to be collected from each and every individual from the population. On the other hand,sample survey is easier as a representative sample is taken from the population and the

results obtained are extrapolated to fit the entire population.

There are times and requirements where governments have to indulge in census survey

even if it is time consuming and very expensive as it needs to formulate policies and welfare

programs for the population. For example, when a government has to count heads of the

population, it cannot conduct a sample survey to count the number of people in the country.

But when government is planning on a welfare program for cancer patients, it can conduct a

sample survey of some of the cancer patients and then extrapolate the results on the section

of the population that is undergoing treatment for cancer.


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There are errors in sampling in case of sample survey which can be minimized but never

eliminated. Therefore the results of a sample survey always have a margin for error whereas

census survey is always accurate. However, many times, it is not possible to carry out

census survey which is when sample survey is undertaken.

b. In multi-stage sampling method, sampling is carried out in two or more stages. The

population is regarded as being composed of a number of second stage units and so forth.

That is, at each stage, a sampling unit is a cluster of the sampling units of the subsequent

stage. First, a sample of the first stage sampling units is drawn, then from each of the

selected first stage sampling unit, a sample of the second stage sampling units is drawn.

The procedure continues down to the final sampling units or population elements.

Appropriate random sampling method is adopted at each stage. It is appropriate where the

population is scattered over a wider geographical area and no frame or list is available for

sampling. It is also useful when a survey has to be made within a limited time and cost

budget. The major disadvantage is that the procedure of estimating sampling error and cost

advantage is complicated.

Double sampling refers to the subsection of the final sample form a pre-selected larger

sample that provided information for improving the final selection. When the procedure is

extended to more than two phases of selection, it is then, called multi-phase sampling. This

is also known as sequential sampling, as sub-sampling is done from a main sample in

phases. Double sampling or multiphase sampling is a compromise solution for a dilemma

posed by undesirable extremes. The statistics based on the sample of n can be improved

by using ancillary information from a wide base: but this is too costly to obtain from the entirepopulation of N elements. Instead, information is obtained from a larger preliminary sample

nil which includes the final sample n.

Q 4. List down various measures of central tendency and explain the difference

between them?

Answer:

Measures of Central Tendency

Analysis of data involves understanding of the characteristics of the data. The following arethe important characteristics of a statistical data: -

Central tendency

Dispersion

Skew ness

Kurtosis

In a data distribution, the individual items may have a tendency to come to a central position

or an average value. For instance, in a mark distribution, the individual students may score

marks between zero and hundred. In this distribution, many students may score marks,

which are near to the average marks, i.e. 50. Such a tendency of the data to concentrate to


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the central position of the distribution is called central tendency. Central tendency of the data

is measured by statistical averages. Averages are classified into two groups.

1. Mathematical averages

2. Positional averages

Arithmetic mean, geometric mean and harmonic mean are mathematical averages. Median

and mode are positional averages. These statistical measures try to understand how

individual values in a distribution concentrate to a central value like average. If the values of

distribution approximately come near to the average value, we conclude that the distribution

has central tendency.

Arithmetic Mean

Arithmetic mean is the most commonly used statistical average. It is the value obtained by

dividing the sum of the item by the number of items in a series. Symbolically we say

Arithmetic mean = X/n

Where X= the sum of the item

N = the number of items in the series.

If x1 x2 x3 xn are the values of a series, then arithmetic mean of the series obtained by

(x1 + x2 + x3 +xn) / n. If put (x1 + x2 + x3 +xn) = X,

then arithmetic mean = X/n

When frequencies are also given with the values, to calculate arithmetic mean, the values

are first multiplied with the corresponding frequency. Then their sum is divided by the

number of frequency. Thus in a discrete series, arithmetic mean is calculated by the

following formula.

Arithmetic mean = fx/ f

Where,fx = sum the values multiplied by the corresponding frequency.

f = sum of the frequency

If x1 x2 x3 xn are the values of a series, and f1 f2 f3 fn are their correspondingfrequencies,


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Arithmetic mean is calculated by (f1 x1 + f2 x2 + f3x3 + fn xn) / (f1 + f2 + f3 + fn) or

Arithmetic mean = fx / f

Geometric Mean

Geometric mean is defined as the nth root of the product of N items of a series. If there are

two items in the data, we take the square root; if there are three items we take the cube root,

and so on.

Symbolically,

Where x1, x2. ..xn are the items of the given series. To simplify calculations, logarithms are

used.

Accordingly,

GM = Anti log of (log x /n)

In discrete series

GM = Anti log of f . log x / f

Harmonic Mean

In individual series

HM = N / (1/x)

In discrete series

HM = N / f (1/m)

N = Total frequency

M = Mi values of the class

Median

Median is the middlemost item of a given series. In individual series, we arrange the given

data according to ascending or descending order and take the middlemost item as themedian. When two values occur in the middle, we take the average of these two values as

median. Since median is the central value of an ordered distribution, there occur equal

number of values to the left and right of the median.

Individual series

Median = (N+ 1 / 2) th item

Median for Discrete Series


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To find the median of a grouped series, we first of all, cumulate the frequencies. Locate

median at the size of (N+ 1) / 2 th cumulative frequency. N is the cumulative frequency

taken.

Steps

1. Arrange the values of the data in ascending order of magnitude.

2. Find out cumulative frequencies

3. Apply the formula (N+ 1) / 2 th item

4. Look at the cumulative frequency column and find the value of the variable corresponding

to the above.

Median for Continuous Series

To find the median of a grouped series, with class interval, we first of all, cumulate the

frequencies. Locate median at the size of (N) / 2 th cumulative frequency. Apply the

interpolation formula to obtain the median

Median = L1 + (N/2m) / f X C

L1 = Lower limit of the median Class

N/2 = Cumulative frequency/ 2

m = Cumulative frequency of the class preceding the median class

f = frequency of the median class

C = Class interval

Merits of Median

1. Median is easy to calculate and simple to understand.

2. When the data is very large median is the most convenient measure of central tendency.

3. Median is useful finding average for data with open-ended classes.

4. The median distributes the values of the data equally to either side of the median.

5. Median is not influenced by the extreme values present in the data.

6. Value of the median can be graphically determined.

Demerits of Median

To calculate median, data should be arranged according to ascending order. This is

tedious when the number of items in a series is numerous.

Since the value of median is determined by observation, it is not a true representative

of all the values.

Median is not amenable to further algebraic treatment.

The value of median is affected by sampling fluctuation.

Mode


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Mode is the most repeating value of a distribution. When one item repeats more number of

times than other or when two items repeat equal number of times, mode is ill defined. Under

such case, mode is calculated by the formula (3 median2 mean).

Mode is a widely used measure of central tendency in business. We speak of model wage

which is the wage earned by most of the workers. Model shoe size is the mostly demanded

shoe.

Merits of Mode

Mode is the most typical and frequented value of the distribution.

It is not affected by extreme values.

Mode can be determined even for series with open-ended classes.

Mode can be graphically determined.

Demerits of Mode

1. It is difficult to calculate mode when one item repeats more number of times than others.

2. Mode is not capable of further algebraic treatment.

3. Mode is not based on all the items of the series.

Q.5. Select any topic for research and explain how you will use both secondary and

primary sources to gather the required information.

Answer:

Primary sources are original sources from which the researcher directly collects data that

have not been previously collected e.g., collection of data directly by the researcher on

brand awareness, brand preference, brand loyalty and other aspects of consumer behaviour

from a sample of consumers by interviewing them. Primary data are first hand information

collected through various methods such as observation, interviewing, mailing etc.

Advantage of Primary Data

It is original source of data

It is possible to capture the changes occurring in the course of time.

It flexible to the advantage of researcher.

Extensive research study is based of primary data

Disadvantage of Primary Data

1. Primary data is expensive to obtain

2. It is time consuming

3. It requires extensive research personnel who are skilled.4. It is difficult to administer.


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Methods of Collecting Primary Data

Primary data are directly collected by the researcher from their original sources. In this case,

the researcher can collect the required date precisely according to his research needs, he

can collect them when he wants them and in the form he needs them. But the collection of

primary data is costly and time consuming. Yet, for several types of social science research

required data are not available from secondary sources and they have to be directly

gathered from the primary sources.

In such cases where the available data are inappropriate, inadequate or obsolete, primary

data have to be gathered. They include: socio economic surveys, social anthropological

studies of rural communities and tribal communities, sociological studies of social problems

and social institutions. Marketing research, leadership studies, opinion polls, attitudinal

surveys, readership, radio listening and T.V. viewing surveys, knowledge-awareness

practice (KAP) studies, farm managements studies, business management studies etc.

There are various methods of data collection. A Method is different from a Tool while a

method refers to the way or mode of gathering data, a tool is an instruments used for the

method. For example, a schedule is used for interviewing. The important methods are

(a) observation, (b) interviewing, (c) mail survey, (d) experimentation, (e) simulation and (f)

projective technique.

These are sources containing data which have been collected and compiled for another

purpose. The secondary sources consists of readily compendia and already compiled

statistical statements and reports whose data may be used by researchers for their studies

e.g., census reports , annual reports and financial statements of companies, Statisticalstatement, Reports of Government Departments, Annual reports of currency and finance

published by the Reserve Bank of India, Statistical statements relating to Co-operatives and

Regional Banks, published by the NABARD, Reports of the National sample survey

Organization, Reports of trade associations, publications of international organizations such

as UNO, IMF, World Bank, ILO, WHO, etc., Trade and Financial journals newspapers etc.

Secondary sources consist of not only published records and reports, but also unpublished

records. The latter category includes various records and registers maintained by the firms

and organizations, e.g., accounting and financial records, personnel records, register of

members, minutes of meetings, inventory records etc.

Features of Secondary Sources

Though secondary sources are diverse and consist of all sorts of materials, they have

certain common characteristics.

First, they are readymade and readily available, and do not require the trouble of

constructing tools and administering them.

Second, they consist of data which a researcher has no original control over collection and

classification. Both the form and the content of secondary sources are shaped by others.Clearly, this is a feature which can limit the research value of secondary sources.


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Finally, secondary sources are not limited in time and space. That is, the researcher using

them need not have been present when and where they were gathered.

Use of Secondary Data

The second data may be used in three ways by a researcher. First, some specific

information from secondary sources may be used for reference purpose. For example, the

general statistical information in the number of co-operative credit societies in the country,

their coverage of villages, their capital structure, volume of business etc., may be taken from

published reports and quoted as background information in a study on the evaluation of

performance of cooperative credit societies in a selected district/state.

Second, secondary data may be used as bench marks against which the findings of

research may be tested, e.g., the findings of a local or regional survey may be compared

with the national averages; the performance indicators of a particular bank may be tested

against the corresponding indicators of the banking industry as a whole; and so on.

Finally, secondary data may be used as the sole source of information for a research project.

Such studies as securities Market Behaviour, Financial Analysis of companies, Trade in

credit allocation in commercial banks, sociological studies on crimes, historical studies, and

the like, depend primarily on secondary data. Year books, statistical reports of government

departments, report of public organizations of Bureau of Public Enterprises, Censes Reports

etc, serve as major data sources for such research studies.

Q 6. a. Explain the role of Graphs and Diagrams?

b. What are the Types and General rules for graphical representation of data?

Answer:

In presenting the data of frequency distributions and statistical computations, it is often

desirable to use appropriate forms of graphic presentations. In additions to tabular forms,

graphic presentation involves use of graphics, charts and other pictorial devices such as

diagrams. These forms and devices reduce large masses of statistical data to a form that

can be quickly understood at the glance. The meaning of figures in tabular form may bedifficult for the mind to grasp or retain. Properly constructed graphs and charts relieve the

mind of burdensome details by portraying facts concisely, logically and simply. They, by

emphasizing new and significant relationship, are also useful in discovering new facts and in

developing hypothesis.

The device of graphic presentation is particularly useful when the prospective readers are

non-technical people or general public. It is useful to even technical people for dramatizing

certain points about data; for important points can be more effectively captured in pictures

than in tables. However, graphic forms are not substitutes for tables, but are additional tools

for the researcher to emphasize the research findings.


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Graphic presentation must be planned with utmost care and diligence. Graphic forms used

should be simple, clear and accurate and also be appropriate to the data. In planning this

work, the following questions must be considered.

(a) What is the purpose of the diagram?

(b) What facts are to be emphasized?

(c) What is the educational level of the audience?

(d) How much time is available for the preparation of the diagram?

(e) What kind of chart will portray the data most clearly and accurately?

b. Types of Graphs and General Rules

The most commonly used graphic forms may be grouped into the following categories:

a) Line Graphs or Charts

b) Bar Charts

c) Segmental presentations.

d) Scatter plots

e) Bubble charts

f) Stock plots

g) Pictographs

h) Chesnokov Faces

The general rules to be followed in graphic representations are:

1. The chart should have a title placed directly above the chart.

2. The title should be clear, concise and simple and should describe the nature of the data

presented.3. Numerical data upon which the chart is based should be presented in an accompanying

table.

4. The horizontal line measures time or independent variable and the vertical line the

measured variable.

5. Measurements proceed from left to right on the horizontal line and from bottom to top on

the vertical.

6. Each curve or bar on the chart should be labelled.

7. If there are more than one curves or bar, they should be clearly differentiated from one

another by distinct patterns or colours.

8. The zero point should always be represented and the scale intervals should be equal.9. Graphic forms should be used sparingly. Too many forms detract rather than illuminating

the presentation.

10. Graphic forms should follow and not precede the related textual discussion.

******


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MB0050Research Methodology

Assignment Set- 2

Q 1. What is questionnaire? Discuss the main points that you will take into account

while drafting a questionnaire?

Answer:

Understanding how to phrase questions. Being sensitive to questionnaire length.

There are some basic differences in how the questionnaire should be constructed if it is to

be filled out personally by the respondent or if an interviewer is going to administer it. These

are:

Self-administered questionnaires should be simple, straightforward and logical

It has been estimated that as many as 50% of respondents who start a self-administeredquestionnaire will not complete it because they become irritated and annoyed at the way it is

constructed. When writing a self-administered questionnaire, then, every care must be taken

to ensure that it is easy to complete In that it almost answers itself.

Self-administered questionnaires should be written with an eighth grade mentality in mind

while interviewer-administered questionnaire can be quite complex.

Because inter viewers are trained in the flow of the questionnaires they administer and will

conduct a number of practice interviews prior to confronting a respondent, developing a

complex questionnaire that is interviewer-administered does not present a problem for the

respondent.

Keep the respondent in one mind-set at a time. If at all possible, complete all your questions

about on e topic before moving on to the next. For example, dont ask about favorite place to

shop, then about brands used and then go back to additional questioning on favorite place to

shop.

Save sensitive questions for the end. Again, this might not always be possible, but when it

doesnt matter, be aware that sensitive questions such as race or income can alienate

respondents and turn them off to the entire interview process. If asked at the end,

respondents are more likely to answer as they are wholly invested in the questionnaire.

Biased question: What do you like about the last airline flight you took? Assumption here is

that respondent liked something and the question tends to push for a positive response.

Unbiased question. What, if anything, do you like the last airline flight you took? By simply

using if anything as part of the question phrasing, the respondent is not put on the spot to

find something to like

When conducting telephone interviews, its relatively easy to keep respondents on thephone

and Answering questions for 15, 20 or 25 minutes if the questionnaire has a good flow and is


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There are various methods of data collection. A Method is different from a Tool while a

method refers to the way or mode of gathering data, a tool is an instruments used for the

method. For example, a schedule is used for interviewing. The important methods are

(a) observation, (b) interviewing, (c) mail survey, (d) experimentation, (e) simulation and (f)

projective technique.

Q 3.a. Analyze the case study and descriptive approach to research. [5 marks].

b. Distinguish between research methods & research Methodology

Answer:

Case study is a method of exploring and analyzing the life of a social unit or entity, be it a

person, a family, an institution or a community. The aim of case study method is to locate or

identify the factors that account for the behaviour patterns of a given unit, and its relationship

with the environment. The case data are always gathered with a view to attracting the

natural history of the social unit, and its relationship with the social factors and forces

operative and involved in this surrounding milieu. In short, the social researcher tries, by

means of the case study method, to understand the complex of factors that are working

within a social unit as an integrated totality. Looked at from another angle, the case study

serves the purpose similar to the clue-providing function of expert opinion. It is most

appropriate when one is trying to find clues and ideas for further research.

The major credit for introducing case study method into social investigation goes to

Frederick Leplay. Herbert Spencer was the first social philosopher who used case study in

comparative studies of different cultures. William Healey used case study in his study ofjuvenile delinquency. Anthropologists and ethnologists have liberally utilized cast study in the

systematic description of primitive cultures. Historians have used this method for portraying

some historical character or particular historical period and describing the developments

within a national community.

Research design in case of descriptive research studies :

Descriptive research studies are those studies which are concerned with describing the

characteristics of a particular individual, or of a group, where as diagnostic research studies

determine the frequency with which something occurs or its association with something else.The studies concerning whether certain variables are associated are the example of

diagnostic research studies. As against this, studies concerned with specific predictions, with

narration of facts and characteristics concerning individual group of situation are all

examples of descriptive research studies. Most of the social research comes under this

category. From the point of view of the research design, the descriptive as well as diagnostic

studies share common requirements and as such we may group together these two types of

research studies. In descriptive as well as in diagnostic studies, the researcher must be able

to define clearly, what he wants to measure and must find adequate methods for measuring

it along with a clear cut definition of population he wants to study. Since the aim is to obtain

complete and accurate information in the said studies, the procedure to be used must becarefully planned. The research design must make enough provision for protection against


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bias and must maximize reliability. With due concern for the economical completion of the

research study, the design in such studies must be rigid and not flexible and must focus

attention on the following:

1. Formulating the objective of the study

2. Designing the methods of data collection

3. Selecting the sample

4. Collecting the data

5. Processing and analyzing the data

6. Reporting the findings.

b. Distinguish between research methods & research Methodology

Research Methods and Research Methodology are two terms that are often confused as one

and the same. Strictly speaking they are not so and they show differences between them.

One of the primary differences between them is that research methods are the methods by

which you conduct research into a subject or a topic. On the other hand research

methodology explains the methods by which you may proceed with your research.

Research methods involve conduct of experiments, tests, surveys and the like. On the other

hand research methodology involves the learning of the various techniques that can be used

in the conduct of research and in the conduct of tests, experiments, surveys and critical

studies. This is the technical difference between the two terms, namely, research methods

and research methodology.

In short it can be said that research methods aim at finding solutions to research problems.

On the other hand research methodology aims at the employment of the correct procedures

to find out solutions.

It is thus interesting to note that research methodology paves the way for research methods

to be conducted properly. Research methodology is the beginning whereas research

methods are the end of any scientific or non-scientific research.

Let us take for example a subject or a topic, namely, employment of figures of speech inEnglish literature.In this topic if we are to conduct research, then the research methods that

are involved are study of various works of the different poets and the understanding of the

employment of figures of speech in their works.

On the other hand research methodology pertaining to the topic mentioned above involves

the study about the tools of research, collation of various manuscripts related to the topic,

techniques involved in the critical edition of these manuscripts and the like.

If the subject into which you conduct a research is a scientific subject or topic then the

research methods include experiments, tests, study of various other results of differentexperiments performed earlier in relation to the topic or the subject and the like.


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On the other hand research methodology pertaining to the scientific topic involves the

techniques regarding how to go about conducting the research, the tools of research,

advanced techniques that can be used in the conduct of the experiments and the like. Any

student or research candidate is supposed to be good at both research methods and

research methodology if he or she is to succeed in his or her attempt at conducting research

into a subject.

Q 4. Explain the important concepts in Research design?

Answer:

Meaning of Research Design

The research designer understandably cannot hold all his decisions in his head. Even if he

could, he would have difficulty in understanding how these are inter-related. Therefore, he

records his decisions on paper or record disc by using relevant symbols or concepts. Such a

symbolic construction may be called the research design or model. A research design is a

logical and systematic plan prepared for directing a research study. It specifies the

objectives of the study, the methodology and techniques to be adopted for achieving the

objectives. It constitutes the blue print for the collection, measurement and analysis of data.

It is the plan, structure and strategy of investigation conceived so as to obtain answers to

research questions. The plan is the overall scheme or program of research. A research

design is the program that guides the investigator in the process of collecting, analyzing and

interpreting observations. It provides a systematic plan of procedure for the researcher tofollow elltiz, Jahoda and Destsch and Cook describe, A research design is the arrangement

of conditions for collection and analysis of data in a manner that aims to combine relevance

to the research purpose with economy in procedure.

It is important to be familiar with the important concepts relating to research design. They

are:

1. Dependent and Independent variables:

A magnitude that varies is known as a variable. The concept may assume different

quantitative values, like height, weight, income, etc. Qualitative variables are not quantifiable

in the strictest sense of objectivity. However, the qualitative phenomena may also be

quantified in terms of the presence or absence of the attribute considered. Phenomena that

assume different values quantitatively even in decimal points are known as continuous

variables. But, all variables need not be continuous. Values that can be expressed only in

integer values are called non-continuous variables. In statistical term, they are also known

as discrete variable. For example, age is a continuous variable; where as the number of

children is a non-continuous variable. When changes in one variable depends upon thechanges in one or more other variables, it is known as a dependent or endogenous variable,


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and the variables that cause the changes in the dependent variable are known as the

independent or explanatory or exogenous variables. For example, if demand depends upon

price, then demand is a dependent variable, while price is the independent variable.

And if, more variables determine demand, like income and prices of substitute commodity,

then demand also depends upon them in addition to the own price. Then, demand is a

dependent variable which is determined by the independent variables like own price, income

and price of substitute.

2. Extraneous variable:

The independent variables which are not directly related to the purpose of the study but

affect the dependent variable are known as extraneous variables. For instance, assume that

a researcher wants to test the hypothesis that there is relationship between children s school

performance and their self-concepts, in which case the latter is an independent variable and

the former, the dependent variable. In this context, intelligence may also influence the school

performance. However, since it is not directly related to the purpose of the study undertaken

by the researcher, it would be known as an extraneous variable. The influence caused by

the extraneous variable on the dependent variable is technically called as an experimental

error. Therefore, a research study should always be framed in such a manner that the

dependent variable completely influences the change in the independent variable and any

other extraneous variable or variables.

3. Control:

One of the most important features of a good research design is to minimize the effect of

extraneous variable. Technically, the term control is used when a researcher designs the

study in such a manner that it minimizes the effects of extraneous independent variables.

The term control is used in experimental research to reflect the restrain in experimental

conditions.

4. Confounded relationship:

The relationship between dependent and independent variables is said to be confounded by

an extraneous variable, when the dependent variable is not free from its effects.

Research hypothesis:

When a prediction or a hypothesized relationship is tested by adopting scientific methods, it

is known as research hypothesis. The research hypothesis is a predictive statement which

relates a dependent variable and an independent variable. Generally, a research hypothesis

must consist of at least one dependent variable and one independent variable. Whereas, the

relationships that are assumed but not be tested are predictive statements that are not to be

objectively verified are not classified as research hypothesis.

Experimental and control groups:


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When a group is exposed to usual conditions in an experimental hypothesis-testing

research, it is known as control group. On the other hand, when the group is exposed to

certain new or special condition, it is known as an experimental group. In the afore-

mentioned example, the Group A can be called a control group and the Group B an

experimental one. If both the groups A and B are exposed to some special feature, then both

the groups may be called as experimental groups. A research design may include only the

experimental group or the both experimental and control groups together.

Treatments:

Treatments are referred to the different conditions to which the experimental and control

groups are subject to. In the example considered, the two treatments are the parents with

regular earnings and those with no regular earnings. Likewise, if a research study attempts

to examine through an experiment regarding the comparative impacts of three different types

of fertilizers on the yield of rice crop, then the three types of fertilizers would be treated as

the three treatments.

Experiment:

An experiment refers to the process of verifying the truth of a statistical hypothesis relating to

a given research problem. For instance, experiment may be conducted to examine the yield

of a certain new variety of rice crop developed. Further, Experiments may be categorized

into two types namely, absolute experiment and comparative experiment. If a researcher

wishes to determine the impact of a chemical fertilizer on the yield of a particular variety of

rice crop, then it is known as absolute experiment. Meanwhile, if the researcher wishes to

determine the impact of chemical fertilizer as compared to the impact of bio-fertilizer, then

the experiment is known as a comparative experiment.

Experiment unit:

Experimental units refer to the predetermined plots, characteristics or the blocks, to which

the different treatments are applied. It is worth mentioning here that such experimental units

must be selected with great caution.

Q 5. What are the differences between observation and interviewing as methods of

data collection? Give two specific examples of situations where either observation or

interviewing would be more appropriate

Answer:

Collection of data is the most crucial part of any research project as the success or failure of

the project is dependent upon the accuracy of the data. Use of wrong methods of data

collection or any inaccuracy in collecting data can have significant impact on the results of a

study and may lead to results that are not valid. There are many techniques of data

collection along a continuum and observation and interviewing are two of the popular

methods on this continuum that has quantitative methods at one end while qualitative

methods at the other end. Though there are many similarities in these two methods and they

serve the same basic purpose, there are differences that will be highlighted in this article.


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Observation

Observation, as the name implies refers to situations where participants are observed from a

safe distance and their activities are recorded minutely. It is a time consuming method of

data collection as you may not get the desired conditions that are required for your research

and you may have to wait till participants are in the situation you want them to be in. Classic

examples of observation are wild life researchers who wait for the animals of birds to be in a

natural habitat and behave in situations that they want to focus upon. As a method of data

collection, observation has limitations but produces accurate results as participants are

unaware of being closely inspected and behave naturally.

Interviewing

Interviewing is another great technique of data collection and it involves asking questions to

get direct answers. These interviews could be either one to one, in the form of

questionnaires, or the more recent form of asking opinions through internet. However, there

are limitations of interviewing as participants may not come up with true or honest answers

depending upon privacy level of the questions. Though they try to be honest, there is an

element of lie in answers that can distort results of the project.

Though both observation and interviewing are great techniques of data collection, they have

their own strengths and weaknesses. It is important to keep in mind which one of the two will

produce desired results before finalizing.

Q 6.Strictly speaking, would case studies be considered as scientific research? Why

or why not?

Answer:

The case study is the most flexible of all research designs, allowing the researcher to retain

the holistic characteristics of real-life events while investigating empirical events.

In general, a case study is an empirical inquiry which:

Investigates a contemporary phenomenon within its real-life context: when the boundaries

between phenomenon and context are not clearly evident; and in which multiple sources of

evidence are used.

Case studies are only one of many ways of doing social science research, with

experimentation, observation, surveys and archival information (as mentioned above) eachsuited to a certain type of research problem, degree of experimenter control over events and

historical/contemporary perspective and focus.

What are case studies? By design, case studies usually take as their principal subject

selected examples of a social entity within its normal context. At the simplest level, the case

study provides descriptive accounts of one or more cases, yet can also be used in an

intellectually rigorous manner to achieve experimental isolation of one or more selected

social factors within a real-life context. Robert Yin tried to define a case study, as part of his

defense of the method, as an attempt to examine:

(a) a contemporary phenomenon in its real life context, especially when;(b) the boundaries between phenomenon and context are not clearly evident.


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Despite the popular misconception that case studies are limited to qualitative analysis they

can use both qualitative and/or quantitative information.

In this section we will compare the use of case studies and other research methods, look at

the different types of case studies, and the different types of case information used.

Earlier (in the early to mid 20th century) research"with an n of one" (meaning one subject in

the test) was common. Then social science got into numbers and percentages and such,

and the case study fell away as not useful enough to learn from.

However, especially in the "soft" sciences (psychology, sociology, anthropology, ethology,

etc.) that have to do with people rather than formulas or numbers or the like, case studies

can be helpful and important, especially if they are well-constructed, or longitudinal, or are in

depth on their topic.

A carefully controlled case study would generally be considered research, even careful

research, but not generally scientific research. One of the reasons is that the subjects are

not randomly assigned to conditions. Many case studies are post hoc.

Many case studies are dependent on subject reporting of experiences.

It is very difficult to do statistical analysis on case studies, which usually do not have many

subjects involved.


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MB0051: Legal Aspects of Business

Assignment SetI

Q.1 Distinguish between fraud and misrepresentation.

Answer:

Fraud :A false representation of a matter of fact - whether by words or by conduct, by false

or misleading allegations, or by concealment of what should have been disclosed - that

deceives and is intended to deceive another so that the individual will act upon it to her or his

legal injury.

Fraud is commonly understood as dishonesty calculated for advantage. A person who is

dishonest may be called a fraud. In the U.S. legal system, fraud is a specific offense with

certain features.

In criminal law, a fraud is an intentional deception made for personal gain or to damage

another individual; the related adjective is fraudulent. The specific legal definition varies by

legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities

of money or valuables is a common purpose of fraud, but there have also been fraudulent

"discoveries", e.g., in science, to gain prestige rather than immediate monetary gain.

Fraud means and includes any of the following acts committed by a party to a contract with

intent to deceive the other party thereto or to induce him to enter into a contract:

(i) The suggestion as a fact of that which is not true by one who does not believe it to be

true;

(ii) Active concealment of a fact by one having knowledge or belief of the fact;

(iii) Promise made without any intention of performing it;

(iv) Any other act fitted to deceive;

(v) Any such act or omission as the law specifically declares to be fraudulent.

Misrepresentation

Misrepresentation is also known as simple misrepresentation whereas fraud is known as

fraudulent misrepresentation. Like fraud, misrepresentation is an incorrect or false statementbut the falsity or inaccuracy is not due to any desire to deceive or defraud the other party.

Such a statement is made innocently. The party making it believes it to be true. In this way,

fraud is different from misrepresentation.

In the broadest sense, a fraud is an intentional deception made for personal gain or to

damage another individual. The specific legal definition varies by legal jurisdiction. Fraud is a

crime, and is also a civil law violation.

Fraud for profit involves industry professionals. There are generally multiple loan

transactions with several financial institutions involved. These frauds include numerousgross misrepresentations including: income is overstated, assets are overstated, collateral is


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overstated, the length of employment is overstated or fictitious employment is reported, and

employment is backstopped by conspirators. The borrower's debts are not fully disclosed,

nor is the borrower's credit history, which is often altered. Often, the borrower assumes the

identity of another person (straw buyer). The borrower states he intends to use the property

for occupancy when he/she intends to use the property for rental income, or is purchasing

the property for another party (nominee). Appraisals almost always list the property as

owner-occupied. Down payments do not exist or are borrowed and disguised with a

fraudulent gift letter. The property value is inflated (faulty appraisal) to increase the sales

value to make up for no down payment and to generate cash proceeds in fraud for profit.

Misrepresentation is a contract law concept. It means a false statement of fact made by one

party to another party, which has the effect of inducing that party into the contract. For

example, under certain circumstances, false statements or promises made by a seller of

goods regarding the quality or nature of the product that the seller has may constitute

misrepresentation. A finding of misrepresentation allows for a remedy of rescission and

sometimes damages depending on the type of misrepresentation.

Q.2 What are the remedies for breach of contract.

Answer:

When someone breaches a contract, the other party is no longer obligated to keep its end of

the bargain. From there, that party may proceed in several ways:

(i) The other party may urge the breaching party to reconsider the breach;(ii) If it is a contract with a merchant, the other party may get help from consumers

associations;

(iii) The other party may bring the breaching party to an agency for alternative dispute

resolution;

(iv) The other party may sue for damages; or

(v) The other party may sue for other remedies.

Rescission of the contract: When a breach of contract is committed by one party, the other

party may treat the contract as rescinded. In such a case the aggrieved party is freed from

all his obligations under the contract.

Damages: Another relief or remedy available to the promisee in the event of a breach of

promise by the promisor is to claim damages or loss arising to him there from. Damages

under Sec.75 are awarded according to certain rules as laid down in Secs.73-74. Sec.73

contains three important rules: (i) Compensation as general damages will be awarded only

for those losses that directly and naturally result from the breach of the contract. (ii)

Compensation for losses indirectly caused by breach may be paid as special damages if the

party in breach had knowledge that such losses would also follow from such act of breach.

(iii) The aggrieved party is required to take reasonable steps to keep his losses to the

minimum.


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The most common remedy for breach of contracts: The usual remedy for breach of

contracts is suit for damages. The main kind of damages awarded in a contract suit are

ordinary damages. This is the amount of money it would take to put the aggrieved party in as

good a position as if there had not been a breach of contract. The idea is to compensate the

aggrieved party for the loss he has suffered as a result of the breach of the contract.

In addition to the rights of a seller against goods provided in Secs.47 to 54, the seller has the

following remedies against the buyer personally. (i) suit for price (Sec.55); (ii) damages for

non-acceptance of goods (Sec.56); (iii) suit for interest (Sec.56).

Suit for price

Where under a contract of sale the property in the goods has passed to the buyer and the

buyer wrongfully neglects or refuses to pay the price, the seller can sue the buyer for the

price of the goods. Where the property in goods has not passed to the buyer, as a rule, the

seller cannot file a suit for the price; his only remedy is to claim damages.

Suit for damages for non-acceptance

Where the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller

may sue him for damages for non-acceptance. Where the property in the goods has not

passed to the buyer and the price was not payable without passing of property, the seller

can only sue for damages and not for the price. The amount of damages is to be determined

in accordance with the provisions laid down in Sec.73 of the Indian Contract Act, 1872.

Thus, where there is an available market for the goods prima facie, the difference betweenthe market price and the contract price can be recovered.

Suit for interest

When under a contract of sale, the seller tenders the goods to the buyer and the buyer

wrongfully refuses or neglects to accept and pay the price, the seller has a further right to

claim interest on the amount of the price. In the absence of a contract to the contrary, the

court may award interest at such rate as it thinks fit on the amount of the price. The interest

may be calculated from the date of the tender of the goods or from the date on which the

price was payable. It is obvious that the unpaid seller can claim interest only when he canrecover the price, i.e., if the sellers remedy is to claim damages only, then he cannot claim

interest.

Buyers remedies against seller

The buyer has the following rights against the seller for breach of contract:

(i) damages for non-delivery (Sec.57);

(ii) right of recovery of the price;

(iii) specific performance (Sec.58);

(iv) suit for breach of condition;

(v) suit for breach of warranty (Sec.59);(vi) anticipatory breach (Sec.60);


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(vii) recovery of interest (Sec.61).

Q.3 Distinguish between indemnity and guarantee.

Answer:

Indemnity and guarantee are two important ways to safeguard ones interests when entering

into a contract. There are many similarities between the two concepts though they differ a lot

also.

Distinction between a contract of guarantee and a contract of indemnity:

L.C. Mather in his book Securities Acceptable to the Lending Banker has brought out the

distinction between indemnity and guarantee by the following illustration. A contract in which

A says to B, If you lend Rs. 1 Lac to C, I will see that your money comes back is an

indemnity. On the other hand undertaking in these words, If you lend 1 Lac to C and he

does not pay you, I will pay is a guarantee. Thus, in a contract of indemnity, there are only

two parties, indemnifier and indemnified. In case of a guarantee, on the other hand, there

are three parties, the principal debtor, the creditor and the surety.

A guarantee is a promise to someone that a third party will meet its obligation to them. If

they do not pay you, I will pay you. An indemnity is a promise to be responsible for another

persons loss and to agree to compensate them for any loss or damage on mutually agreed

terms. For example, one agrees to pay the difference of repairs if they exceed a certain limit.

Other points of difference are:

Indemnity Guarantee

Comprise only two parties- the

indemnifier and the indemnity holder.

There are three parties namely the

surety, principal debtor and the

creditor.

Liability of the indemnifier is primary.

The liability of the surety is secondary.

The surety is liable only if the principal

debtor makes a default. The primary

liability being that of the principaldebtor.

The indemnifier need not necessarily

act at the request of the indemnified.

The surety give guarantee only at the

request of the principal debtor

The possibility of any loss happening is

the only contingency against which the

indemnifier undertakes to indemnify.

There is an existing debt or duty the

performance of which is guarantee by

the surety.

The indemnifier cannot proceed against

third parties in his own name, unless

there is an assignment in his favour.

After discharging the debt, the surety

is entitled to proceed against the

principal debtor in his own name.


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Q.4 What is the distinction between cheque and bill of exchange.

Answer:

Bill of exchange

A bill of exchange is defined by Sec.5 as an instrument in writing, containing an

unconditional order, signed by the maker, directing a certain person to pay a certain sum of

money only to or to the order of, a certain person, or to the bearer of the instrument.

Cheques

A cheque is the usual method of withdrawing money from a current account with a banker.

Savings bank accounts are also permitted to be operated by cheques provided certain

minimum balance is maintained. A cheque, in essence, is an order by the customer of the

bank directing his banker to pay on demand, the specified amount, to or to the order of the

person named therein or to the bearer. Sec.6 defines a cheque. The Amendment Act 2002

has substituted new section for Sec.6. It provides that a cheque is a bill of exchange drawn

on a specified banker and not expressed to be payable otherwise than on demand and it

includes the electronic image of a truncated cheque and a cheque in the electronic from.

Check Bill of Exchange

It is drawn on a banker It may be drawn on any party or individual.

It has three parties - the drawer, the

drawee, and payee.

There are three parties - the drawer, the

drawee, and the payee.

It is seldom drawn in sets Foreign bills are drawn in sets

It does not require acceptance by the

drawee.

It must be accepted by the drawee before he

can be made liable to pay the billDays of grace are not allowed to a

banker

Three days of grace are always allowed to

the drawee.

No stamp duty is payable on checks Stamp duty has to be paid on bill of

exchange.

It is usually drawn on the printed It may be drawn in any paper and need not

necessarily be printed.

Q.5 Distinguish between companies limited by shares and companies limited by

guarantee.

Answer:

Companies Limited by Shares:

When the liability of the members of a company is limited up to the unpaid value of their

shares, it is called a limited liability company or a company limited by shares. This liability or

unpaid amount may be called up at any time during the life time of the company or at the

time of its winding up. Such a company must have share capital since the extent of liability is

determined on the basis of the face value of shares. This company may be a publiccompany or a private company.


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Companies Limited by Guarantee:

The liability of a member in these companies is limited to the amount undertaken to be

contributed by him at the time of winding up of the company. The amount of guarantee is

mentioned in the memorandum of association. Such companies are formed for non-trading

purposes such as charity, promotion of sports, science, art, culture etc. These companies

may or may not have any share capital. If these companies do not have any share capital,

the members can be required to pay the amount of guarantee undertaken by them and that

too in the event of liquidation. But if these companies have any share capital, the members

are liable to pay the amount which remains unpaid on their shares together with the amount

payable under the guarantee. A company limited by guarantee and having a share capital

may be a public company or a private company.

Q.6 What is the definition of cyber crime.

Answer:

Cyber crime refers to all the activities done with criminal intent in cyberspace or using the

medium of Internet. These could be either the criminal activities in the conventional sense or

activities, newly evolved with the growth of the new medium. Any activity, which basically

offends human sensibilities, can be included in the ambit of Cyber crimes. Because of the

anonymous nature of Internet, it is possible to engage in a variety of criminal activities with

impunity, and people with intelligence, have been grossly misusing this aspect of the Internet

to commit criminal activities in cyberspace. The field of cyber crime is just emerging and new

forms of criminal activities in cyberspace are coming to the forefront each day. For example,

child pornography on Internet constitutes one serious cyber crime. Similarly, onlinepedophiles, using Internet to induce minor children into sex, are as much cyber crimes as

any others.

Categories of cyber crimes:

Cyber crimes can be basically divided in to three major categories:

1. Cyber crimes against persons;

2. Cyber crimes against property; and

3. Cyber crimes against government.

1. Cyber crimes against persons:

Cyber crimes committed against persons include various crimes like transmission of child-

pornography, harassment of any one with the use of a computer and cyber stalking.

The trafficking, distribution, posting, and dissemination of obscene material including

pornography, indecent exposure, and child pornography constitute the most important cyber

crimes known today. These threaten to undermine the growth of the younger generation and

also leave irreparable scars on the minds of the younger generation, if not controlled.

Similarly, cyber harassment is a distinct cyber crime. Various kinds of harassments can anddo occur in cyberspace, or through the use of cyberspace. Harassment can be sexual,


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The time being in force,

b. Computer programme,

c. Computer system and

d. Computer network.

- is punishable with imprisonment up to three years, or with fine which may extend up to two

lakh rupees or with both.

Hacking with computer system (Sec 66):

Hacking with computer system is a punishable offence under the Act. It means any person

intentionally or knowingly causes wrongful loss or damage to the public or destroys or

deletes or alters any information residing in the computer resources or diminishes its value

or utility or affects it injuriously by any means, commits hacking. Such offenses will be

punished with three years imprisonment or with fine of two lakh rupees or with both.

Publishing of information which is obscene in electronic form (Sec 67):

Whoever publishes or transmits or causes to be published in the electronic form, any

material which is lascivious or appeals to prurient interest or if its effect is such as to tend to

deprave and corrupt persons who are likely, having regard to all relevant circumstances, to

read, see or hear the matter contained or embodied in it shall be punished on first conviction

with imprisonment for a term extending up to 5 years and with fine which may extend to one

lakh rupees. In case of second and subsequent conviction imprisonment may extend to ten

years and also with fine which may extend up to two lakh rupees.

Failure to comply with orders of the controller by a Certifying Authority or any

employee of such authority (Sec 68):

Failure to comply with orders of the Controller by any Certifying Authority or by any

employees of Certifying Authority is a punishable offence. Such persons are liable to

imprisonment for a term not exceeding three years or to a fine not exceeding two lakh

rupees or to both.

Fails to assist any agency of the Government to decrypt the information (Sec 69):

If any subscriber or any person-in-charge of the computer fails to assist or to extend any

facilities and technical assistance to any Government agency to decrypt the information on

the orders of the Controller in the interest of the sovereignty and integrity of India etc. is a

punishable offence under the Act. Such persons are liable for imprisonment for a term, which

may extend to seven years.

Unauthorized access to a protected system (Sec 70):

Any person who secures access or attempts to secure access to a protected system in

contravention of the provisions is punishable with imprisonment for a term which may extendto ten years and also liable to fine.


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Misrepresentation before authorities (Sec 71):

Any person who obtains Digital Signature Certificate by misrepresentation or suppressing

any material fact from the Controller or Certifying Authority as the case may be punished

with imprisonment for a term which may extend two years or with fine up to one lakh rupees

or with both.

Breach of confidentiality and privacy (Sec 72): Any person in pursuant of the powers

conferred under the act, unauthorisedly secures access, to any electronic record, books,

register, correspondence, information, document or other material without the consent of the

person concerned discloses such materials to any other person shall be punished with

imprisonment for a term which may extend to two years, or with fine up to one lakh rupees or

with both.

Publishing false particulars in Digital Signature Certificate (Sec 73):

No person can publish a Digital Signature Certificate or otherwise make it available to any

other person with the knowledge that: -

a. the Certifying Authority listed in the certificate has not issued it; or

b. the subscriber listed in the certificate has not accepted it; or

c. the certificate has been revoked or suspended unless such publication is for the purpose

of verifying a digital signature created prior to such suspension or revocation. Any person

who contravenes the provisions shall be punishable with imprisonment for a term, which mayextend to two years or with fine up to rupees one lakh or with both.

Publication of Digital Signature Certificate for fraudulent purpose (Sec 74):

Any person knowingly creates, publishes or otherwise makes available a Digital Signature

Certificate for any fraudulent or unlawful purpose shall be punished with imprisonment for a

term which may extend to two years or with fine up to one lakh rupees or with both.

******


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MB0051: Legal Aspects of Business

Assignment SetII

Q.1 What are the situations which cannot be referred to arbitration.

Answer:Matters that cannot be referred to arbitration.

A claim for custody of wife, petition for restitution of conjugal rights,

divorce, etc;

Insolvency proceedings;

Claims arising out of illegal transactions;

Questions relating to public charities and charitable trusts;

Cases relating to public nuisance;

Execution proceedings;

Proceedings relating to the appointment of a guardian to a minor;

Questions relating to offences affecting public at large;

Lunacy proceedings;

Questions relating to the genuineness of a will;

Matters of a criminal nature.

Q2. What is the role of a Conciliator.

Answer:

In conciliation proceedings, there is no agreement for arbitration. In fact, conciliation can be

done even if there is arbitration agreement. The conciliator only brings parties together and

tries to solve the dispute using his good offices. The conciliator has no authority to give any

award. He only helps parties in arriving at a mutually accepted settlement. After such

agreement they may draw and sign a written settlement agreement. It will be signed by the

conciliator. However after the settlement agreement is signed by both the parties and the

conciliator, it has the same status and effect as if it is an arbitral award. Conciliation is the

amicable settlement of disputes between the parties, with the help of a conciliator.

Conciliation is a less frequently used form of ADR, and can be described as similar to

mediation. The Conciliator's role is to guide the parties to a settlement.

The parties must decide in advance whether they will be bound by the Conciliator's

recommendations for settlement. The parties generally share equally in the cost of the

conciliation.

Offer for Conciliation: The conciliation proceedings can start when one of the parties

makes a written request to other to conciliate, briefly identifying the dispute. The conciliation


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can start only if other party accepts in writing the invitation to conciliate. Unless there is

written acceptance, conciliation cannot commence. If the other party does not reply within 30

days, the offer for conciliation can be treated as rejected [Section 62]. All matters of a civil

nature or breach of contract or disputes of movable or immovable property can be referred to

conciliation. However, matters of criminal nature, illegal transactions, matrimonial matters

like divorce suit etc. cannot be referred to conciliation.

The new Act has added new Chapter containing sections from 61 to 81 which deal with

Conciliation proceedings to resolve the disputes. The New Act provides a detailed statutory

framework for the conduct of independent conciliation proceedings outside the court. It also

encourages the arbitral tribunals to use mediation, conciliation or other Alternative Dispute

Resolution (ADR) procedure during the arbitral proceedings to encourage settlement of

disputes. It is based on the Conciliation Rules adopted by the UNCITRAL in 1980, which

were conceived primarily in the context of dispute resolution in international commercial

relations. Conciliation is an informal process in which the conciliator (the third party) tries to

bring the disputants to agreement. He does this by lowering tensions, improving

communications, exploring potential solutions and bringing about a negotiated settlement.

Conciliation is a philanthropic concept of resolving disputes through mediation and cannot be

reduced to any specific definition. The dispute should arise within legal relationship whether

contractual or not and to all proceedings relating thereto, but excludes all those disputes

which are not required to be submitted to conciliation by virtue of any other law for the time

being in enforce.

The difference between conciliation and arbitration is that in conciliation the attitude is win-

win as against the attitude of win-lose in case of arbitration. Conciliator tries to bring theparties together so that they can discuss their disputes and resolve and hence there is no

award as such from the conciliator, whereas in the case of arbitrator, parties are required to

give their own logic and arguments and after hearing both the parties the arbitrator gives the

award.

Role of the conciliator is difficult than that of arbitrators and hence the conciliator should be a

man of integrity, trust, confidence and above board so that parties should have total

confidence in his impartiality. Conciliation is optional at present in the Act. But incase parties

have agreed to resolve the disputes through Conciliation, they have to follow the mandatory

provisions contained in sections 61 to 81. These sections provide application and scope,commencement of conciliation proceedings, number of conciliators and their appointment,

procedures for conducting the conciliation proceedings, roles of the conciliators, etc

Q3. What are the unfair trade practices under the MRTP Act.

Unfair Trade Practices

The Consumer Protection Act has adopted the definition of Unfair Trade Practices as given

in the MRTP Act. Section 36-A of the Monopolies and Restrictive Trade Practices Act, 1969,amended in 1993 explains what unfair trade practice means. Unfair trade practice methods


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are listed in section 36-A. Where the methods listed in section 36-A are adopted for the

purpose of promoting the sale, use or supply of any goods, or for the provision of any

services and thereby some loss or injury is caused to the consumers of such goods or

services, it is an unfair trade practice. The practices mentioned in section 36-A are grouped

into the following five categories.

1. Misleading Advertisement and False Representation:These include:

(a) Falsely representing that the goods are of a particular standard, quality, quantity, grade,

composition, style or model.

(b) Falsely representing that the services are of a particular standard, quality or grade

(c) Falsely representing that the re-built, second-hand, renovated, reconditioned or old

goods as new goods.

(d) Representing that the goods or services have sponsorship, approval, performance,

characteristic, accessories, uses or benefits which such goods or services do not have.

(e) Representing that the seller or the supplier has a sponsorship or approval or affiliation

which he does not have.

(f) Making a false or misleading representation concerning the need, for, or the usefulness of

any goods or services.

(g) Giving to the public any warranty or guarantee of the performance or length of life of a

product which is not based on adequate test.

(h) Making a materially misleading representation to the public concerning the price at which

a product or like products of goods have been or are ordinarily sold.

(i) Giving false or misleading facts disparaging the goods, services or trade of another

person. The mode of representation or statement to the public may be by any method. It willbe enough if the statement comes to the knowledge of the buyer of those goods etc. The

representation may appear on the article or on its wrapper or container or on anything on

which the article is mounted.

2. Sale offer of bargain price: This includes advertising for supply, at a bargain price,

goods or services that are not intended to be offered for supply at the price for a reasonable

period or reasonable quantities.

3. Schemes offering Gifts or Prizes: This category includes: (a) offering gifts or prizes or

other items with the intention of not providing them and conducting promotional contests; (b)the conduct of any contest, lottery or game of chances, etc.

4. Non-compliance of prescribed Standards: This category includes cases where goods

are sold for use by consumers knowing or having reason to believe that they do not comply

with the standards prescribed by some competent authority. The prescribed standard may

relate to performance, composition, contents, design, construction, finishing or packing as

are necessary to prevent or reduce the risk of injury to the person using the goods.

5. Hoarding, destruction or refusal: The fifty and last category of unfair trade practices

includes cases of hoarding, destruction of goods or refusal to sell goods or services so as toraise the cost of those or similar goods. Ingredients of Unfair Trade practices:


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(a) The trade practices must consist of any of the practices listed as above.

(b) The purpose of such trade practice must be to promote the sale, use or supply of any

goods or provision of any services.

(c) The trade practices must have caused loss or injury to the consumer whether by

Eliminating or restricting competition.

Q4. What are essentials of a valid offer.

Answer:

Essentials of a Valid Offer:

a)An offer may be general or specific:

According to Sec. 2 (a) an offer must be made to a specific person. An offer may be made to

the world at large. But the contract is made only with the person who accepts and fulfills the

conditions of the proposal.

In the words of Anson, An offer need not be made to an ascertained person, but no contract

can arise until it has been accepted by an ascertained person .

In Carlill Vs Carbolic Smoke Ball Co. (1893), a Company offered by advertisement to pay

100 to anyone who contacts the increasing epidemic influenza, cold or any disease caused

by taking cold after having used the ball as per printed directions. It was a

Documents

Research Methodology Important Question and Answer