Question No.

1
With Information Technology Act, 2000, India has a set of cyber laws to provide legal
infrastructure for e commerce. Discuss the objectives and limitations of this Act.

Answer-
In May 2000, Indian Parliament passed the Information Technology Bill. The Bill received the
assent of the President in August 2000 and came to be known as the Information Technology
Act, 2000.
This Act aims to provide the legal infrastructure for e-commerce in India. And the cyber laws
have a major impact for e-businesses and the new economy in India. So, it is important to
understand the various perspectives of the IT Act, 2000 and what it offers.
The Information Technology Act, 2000 also aims to provide for the legal framework so that legal
sanctity is accorded to all electronic records and other activities carried out by electronic means.
The Act states that unless otherwise agreed, an acceptance of contract may be expressed by
electronic means of communication and the same shall have legal validity and enforceability.
This act is helpful to promote business with the help of internet.
It also set of rules and regulations which apply on any electronic business transaction. Due to
increasing crime in cyber space, Govt. of India understood the problems of internet user and for
safeguarding the interest of internet users, this act was made.
Main Objectives of I. T. Act –
The following are its main objectives –
1. It is objective of I.T. Act 2000 to give legal recognition to any transaction which is done by
electronic way or use of internet.
2. To give legal recognition to digital signature for accepting any agreement via computer.
3. To provide facility of filling document online relating to school admission or registration in
employment exchange.
4. According to I.T. Act 2000, any company can store their data in electronic storage.
5. To stop computer crime and protect privacy of internet users.
6. To give legal recognition for keeping books of accounts by bankers and other companies in
electronic form.
7. To make more power to IPO, RBI and Indian Evidence act for restricting electronic crime.

Limitation of Information Technology Act-

it extends to the whole of India and save as otherwise provided in this Act, it applies to any
offence or contravention thereunder committed India by any person.

The Act is not applicable to the following:-

1. A negotiable instrument (other than a cheque) as defined in Sec. 13 of the Negotiable
Instrument Act 1881.
2. A Power of Attorney as defined in Sec. 1A of the Power of Attorney Act, 1882
3. A trust as defined in Sec.3 of the India Trust Act, 1882.
4. A Will as defined in Sec. 2(h) of the Indian Succession Act, 1925 including any other
testamentary disposition by whatever name called.
5. Any contract for the sale or conveyance of immovable property or any interest in such
property.
6. Any such class of documents or transactions as may be notified by the Central Government in
the Official Gazette.

Question No.2
The Companies Act, 1956 deals with the formation and transaction of business of a company.
Discuss the features of a company. Also explain the process of formation of a company .

Answer-
In common usage, ‘Company’ means an association of persons associated for some common
purpose.
The common object may be business, charity, research etc.
The persons are united for achieving a common objective, normally, for earning profits, which
are shared by the investors.

Definition of Company- Section 3 (1) (i) of the Companies Act, 1956 defines a company as:
“A company registered and formed under this Act or an existing company.”
The above definition does not give clear description about the company. The definition provided
by Haney gives a better view about the essential elements of a company. According to Haney,
“A company is an incorporated association which is an artificial person created for by law,
having a separate entity, with a perpetual succession and a common seal”.

Also Sec. 12 permits the formation of different types of companies. These may be Companies
limited by shares’ Companies limited by guarantee, Unlimited Companies.

Features of a Company-
1. Registration: A company is to be compulsorily registered under the Companies Act.
2. Artificial Person: A company is an artificial person. “Company is an artificial person,
invisible, intangible and existing only in the eyes of law.” It is created under the law, not itself a
human being. It is called a person as it is clothed with certain rights and obligations.
3. Separate Legal Entity: A company can enter into contracts with its directors, its shareholders
and outsiders. It functions through its board of directors.
A company is a distinct person, with its own independent identity. One Man Company: When a
single person holds almost all the shares of the company, it is called ‘One Man Company’. Such
a company has a legal personality, if it complies with the necessary requirements of registration.
Such companies may be public or private companies. Usually, they are private companies.

Formation of a Company- The whole process of formation of a company is divided into four
steps for convenience.
A. Promotion of Company
B. Incorporation or Registration of Company
C. Floatation of Company
D. Commencement of Business
A. Promotion of Company- Promotion is a term of wide import denoting the preliminary steps
taken for the purpose of registration and floatation of the company. The persons who assume the
task of promotion are called promoters. The Promoter is a person who initiates the process of
formation of company. He undertakes to form a company with reference to a given project and
takes the necessary steps to accomplish the purpose. Promoter assumes responsibility for all the
matters relating to the formation of the company.

B. Incorporation or Registration of Company- For a public company, the minimum number of

members is seven, while it is two in the case of a private company. The promoter has to gather
the required number for subscribing to the Memorandum of Association.
The following are the steps for the incorporation of a company:
1. Application for Availability of Name: A company cannot be registered in the name of an
existing company. It also cannot be registered in a name, which is undesirable in the opinion of
the Central Government. Therefore, it is necessary for the promoters to find out the availability
of the name of the company from the Registrar of Companies. The first step in the formation of a
company is the approval of the name by the Registrar of Companies (ROC) in the State/Union
Territory in which the company is to be registered. This approval is provided subject to certain
conditions. For instance, there should not be an existing company by the same name. Further, the
last words in the name are required to be “Private Ltd.” in the case of a private company and
“Limited” in the case of a Public Company.

2. Filing of Documents: The following three documents are required to be filed with the
Registrar of Companies of the State in which the registered office of the company is to be
situated: (i) Memorandum of Association, (ii) Articles of Association, and (iii) Agreement with
the company for the proposed appointment of the managing director, whole-time director or
manager. The above documents (i) and (ii) are required to be signed by the seven persons in the
case of the public company and two persons in the case of private company.

3. Payment of Stamp Duty and Filing Fee: The Company has to pay the necessary stamp duty
and filing fee, according to the authorized share capital of the company.

4. Declaration of Compliance of Act and Rules: A declaration that the requirements of the Act
and the rules framed there under have been complied. This declaration is to be signed by an
advocate of the Supreme Court or High Court or attorney or a pleader having the right to appear
before High Court. Alternatively, this declaration can be signed by a Company Secretary
or Chartered Accountant in whole time-practice, who is engaged in the formation of a company
or a person named in the articles as a director. This declaration is also to be filed with the
Registrar of Companies, where the registered office of the company would be located.

5. Additional Requirement, in Case of a Public Company:

The following further requirements are to be complied with:

(i) A list of persons who have consented to act as directors.

(ii) Written consent of the directors to act in that capacity.
(iii) An undertaking by the directors to take up and pay for the qualification shares.
 6. Certificate of Incorporation or Registration: If the Registrar is satisfied that the
requirements under the Act for the purpose of registration of a company have been
complied with, he shall register the company and issue a certification of
incorporation, under his hand and seal.

C. Floatation of Company- Once the Certificate of Incorporation is received, it

means the company is registered. Then the next step is to raise the required finances
for running the company. The company is ready for floatation.
Floatation means raising the required finances for commencing and carrying on the
business, satisfactorily. In other words, the company can go ahead, with raising
capital sufficient to commence the business and carry on it, satisfactorily.

D. Commencement of Business- A public company, having share capital, cannot

commence the business, without obtaining the certificate of commencement of
business. The certificate of commencement of business can be obtained, only after
completing the floatation process. In other words, a public limited company has to
file either prospectus or statement in lieu of prospectus and comply with the required
legal requirements, relating to the capital requirements. Thereafter only, Certificate of
Commencement of Business is issued by ROC. “A Public Company, having share
capital, cannot commence the business, without obtaining the Certificate of
Commencement of Business.” However, a private limited company can commence
the business, without obtaining the ‘Certificate of Commencement of Business’.
There is no need for a private company to obtain Certificate of Commencement of
Business. After obtaining the Certificate of Incorporation, it can immediately
commence business. It is the privilege a private limited company enjoys.

Question No. 3
The parties to bailment have certain rights and duties. Discuss the duties of both parties i.e. the
bailor and bailee.

Answer:-
Bailment is defined as the “delivery of goods by one to another person for some purpose, upon a
contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of
according to the directions of person delivering them”.
The person delivering the goods is called the “bailor” and the person to whom the goods are
delivered is called the “bailee”.
The explanation to the above Section points out that delivery of possession is not necessary,
where one person, already in possession of goods contracts to hold them as bailee.
The bailee is under an obligation to re-deliver the goods, in their original or altered form, as soon
as the time of use for, or condition on which they were bailed, has elapsed or been performed”.

For example-
(i) A delivers some clothes to B, a dry cleaner, for dry cleaning.
(ii) A delivers a wrist watch to B for repairs.
(iii) A lends his book to B for reading.
(iv) A delivers a suit-length to a tailor for stitching.
(v) A delivers some gold biscuits to B, a jeweler, for making jewellery.
(vi) Delivery of goods to a carrier for the purpose of carrying them from one place to
another.

(vii) Delivery of goods as security for the repayment of loan and interest thereon, i.e., pledge.

Duties of a bailor-
1. To disclose know faults in the goods- The bailor is bound to disclose to the bailee
faults in the goods bailed, of which the bailor is aware and which materially interfere
with the use of them or expose the bailee to extraordinary risks. If he does not make
such disclosure, he is responsible for the damage arising to the bailee directly from
such faults.
Example: A lends a horse, which he knows to be vicious, to B. He does not disclose
the fact that the horse is vicious. The horse runs away. B is thrown and injured. A is
responsible to B for damage sustained.

2. Liability for breach of warranty as to title- The bailor is responsible to the bailee
for any loss which the bailee may sustain by reason that the bailor was not entitled to
make the bailment, or to receive back the goods or to give directions respecting them
(Sec.164).
Example: A gives B‟s car to C without B‟s knowledge and permission. B sues C
and receives compensation. A, the bailor, is responsible to make good this loss to C,
the bailee.

3. To bear expenses in case of gratuitous bailments- Regarding bailments under

which bailee is to receive no remuneration, Sec.158 provides that in the absence of a
contract to the contrary, the bailor must repay to the bailee all necessary expenses
incurred by him for the purpose of the bailment.

3. In case of non-gratuitous bailments, the bailor is held responsible to bear only

extraordinary expenses.
Example: A car is lent for a journey. The ordinary expenses like petrol, etc., shall be
borne by the bailee but in case the car goes out of order, the money spent in its repair
will be regarded as an extraordinary expenditure and borne by the bailor.

Duties of a bailee-
 1. To take care of the goods bailed- In all cases of bailment, the bailee is bound to take as
much care of the goods bailed to him as a man of ordinary prudence would, under similar
circumstances, take of his own goods of the same bulk, quality and value as the goods
bailed.
In case, bailee has taken the amount of care as described above, he shall not be
responsible, in the absence of any special contract, for the loss, destruction or
deterioration of the thing bailed (Sec.152).
Example: A lends a car to B for his own driving only. B allows C, his wife, to drive the
car. C drives with care, but the car is damaged in an accident. A is liable to make
compensation to B for the damage done to the car.

2. Not to make unauhorised use of goods- In case the bailee makesunauthorised use of
goods, i.e., uses them in a way not warranted by the terms of bailment, he is liable to
make compensation to the bailor for any damages arising to thegoods from or during such
use of them.

3.Not to mix bailor’s goods with his own- If the bailee without the consent of the bailor,
mixes the goods of the bailor with his own goods and the goods can be separated or
divided, the bailee shall be bound to bear the expense of separation or division and any
damages arising from the mixture.
Example:A bails 100 bales of cotton marked with a particular mark to B. B, without
A’sconsent, mixes the 100 bales with other bales of his own bearing a different mark. A
is entitled to have his 100 bales returned and B is bound to bear all expenses incurred in
the separation of the bales and any other incidental damage. But in case goods are mixed
in such a manner that it is impossible to separate the goods bailed from the other goods
and deliver them back, the bailor is entitled to be compensated by the bailee for the loss
of the goods.

4.To return the goods bailed without demand- It is the duty of the bailee to return, or
deliver according to the bailor‟s directions, the goods bailed, without demand, as soon as
the time for which they were bailed has expired, or the purpose, for which they were
bailed has been accomplished. If bailee fails to return the goods at the proper time, he is
responsible to the bailor for any loss, destruction or deterioration of the goods from that
time (Sec.161).

Question No. 4
We all enter into many contracts in a day knowingly or unknowingly. Explain the definition of a
valid contract. How are contracts classified?

Answer-
A contract is an agreement that can be enforceable by law. An agreement is an offer and its
acceptance. An agreement which can be enforceable by law must have some essential elements.

According to Section 10 "All agreements are contracts if they are made by the free consent of
the parties competent to contract, for a lawful consideration and with a lawful object, and are not
hereby expressly declared to be void" .
As per the above section, a contract must have the following elements-
1. Intention to create legal relationship.
2. Lawful object
3. Agreement not expressly declared void.
4. Proper offer and its acceptance.
5. Free Consent
6. Capacity of parties to contract
7. Certainty of meaning.
8. Possibility of performance.
9. Lawful consideration
10. Legal formalities

Contracts can be classified as under:

 Contracts on the basis of creation:
a) Express contract: Express contract is one which is made by words spoken or written.
b) Implied contract: An implied contract is one which is made otherwise than by works spoken
or written. It is inferred from the conduct of a person or the circumstance of the particular case.
c) Quasi or constructive contract: It is a contract in which there is no intention either side to
make a contract, but the law imposes contract. In such a contract eights and obligations arise not
by any agreement between the practice but by operation of law.
e.g where certain books are delivered to a wrong address the addresses is under an obligation to
either pay for them or return them.

 Contracts on the basis of execution:

a) Executed contract: It is a contract where both the parties to the contract have fulfilled
their respective obligations under the contract.
b) Executory contract: It is a contract where both the parties to the contract have still to
perform their respective obligations.
c) Partly executed and partly executory contract: It is a contract where one of the parties
to the contract has fulfilled his obligation and the other party has still to perform his
obligation.

 Contracts on the basis of enforceability:

a) Valid contract: A contract which satisfies all the conditions prescribed by law is a
valid contract. E.g. X offers to marry y. y accepts X offer. This is a valid contract.

b)Void Contract: the term void contract is described as under section 2(j) of I.CA, 1872,
A contract which cases to be enforceable by law becomes void when it ceases to be
enforceable. In other words, a void contract is a contract which is valid when entered into
but which subsequently became void due to impossibility of performance, change of law
or some other reason. E.g. X offers to marry Y, Y accepts X offer. Later on Y dies this
contract was valid at the time of its formation but became void at the death of Y.
 c) Void Agreement: According to Section 2(g), an agreement not enforceable by law is
said to be void. Such agreements are void- ab- initio which means that they are
unenforceable right from the time they are made. E.g. in agreement with a minor or a
person of unsound mind is void –ab-initio because a mino or a person of unsound mind is
incompetent to contract.
d) Voidable contract: According to section 2(i) of the Indian contract act, 1872,
arrangement which is enforceable by law at the option of one or more of the parties
thereon but not at the option of the other or other, is a voidable contract.
In other words, a voidable contract is one which can be set aside or avoided at the
option of the aggrieved party. Until the contract is set aside by the aggrieved party, it
remains a valid contract. For example:- a contract is treated as voidable at the option of
the party whose consent has been obtained under influence or fraud or misinterpretation.

E.g. X threatens to kill Y, if the does not sell his house for Rs. 1 lakh to X. Y sells his
house to X and receives payment. Here, Y consent has been obtained by coercion and
hence this contract is void able at the option of Y the aggrieved party. If Y decides to
avoid the contract he will have to return Rs. 1 lakh which he had received from X. If Y
does not exercise his option to repudiate the contract within a reasonable time and in the
meantime Z purchases that house from X for 1 lakh in good faith. Y cannot repudiate the
contract.
e) Illegal Agreement: An illegal agreement is one the object of which is unlawful. Such
an agreement cannot be enforced bylaw. Thus, illegal agreements are always void – ab-
initio (i.e. void from the very beginning) e.g. X agrees to y Rs. 1 lakh Y kills Z. Y kill
and claims Rs. 1 lakh. Y cannot recover from X because the agreement between X and Y
is illegal and also its object is unlawful.
f) Unenforceable contract: It is contract which is actually valid but cannot be enforced
because of some technical defect (such as not in writing, under stamped). Such contracts
can be enforced if the technical defect involved is removed.

1) Who can file a complaint and What are the issues to consider when filing
a complaint?

Ans:- Any person who can be termed as a consumer under the Act can
make a complaint. The following are the persons who can file a complaint
under the Act :

a) a consumer; or

b) any voluntary consumer association registered under the

Companies Act, 1956 or under any other law for the time being in
force, or
 c) the Central Government or any State Government,

d) one or more consumers, where there are numerous consumers

having the same interest.

2) What are the Issues to be consider when filing a Consumer complaint?

Ans:-- A consumer would have to check where the jurisdiction would lie
and then ascertain the value of the claim. The consumer will have to file
your complaint depending upon the amount of money or compensation he
wants from the opposite party for the deficient service the opposite party
has provided to him for the defective product that the consumer has been
sold.

3) Can More Than One Consumer File A Single Common Complaint ?

Ans:-- Yes, consumers having the same problem can join together and file
a single complaint. This can be done by enclosing a petition with the
complaint for joining together and filing a complaint. This petition should just
state that since the facts and circumstances relating to the complaint are the
same and also since the same relief is to be claimed for all the petitioners
they may be allowed to join together and file a single complaint.

4)Can one Approach The Consumer Courts if one has bought the Goods or
Services for Commercial Purposes?

Ans:- No, the Consumer Courts are only meant for the ordinary consumers
who have bought goods & services for their own use or needs. Those who
buy the goods/services for commercial purposes or resale purposes are
excluded from the act. Consumer forum is not meant for businesses ,firms
and Industries but for the common man/consumer looking for quick &
effective justice.

5) What is District Consumer Protection Council?

District Consumer Protection Council is the council constituted under
Consumer Protection Act, 1986 for each district. District Collector acts as its
Chairman, District Supply and Consumer Protection Officer as Member-
Secretary, and all the M.P.s, M.L.A.s and officials of all Government
Departments having Consumer interface of the Concerned District are
members along with the VCOs functioning in the District. This Council shall
meet twice in a year as per Consumer Protection Act, 1986.
6)Where complaints can be registered?

District Consumer Protection Action will be initiated legally

Council through the Department
concerned on the petitions
regarding the defects filed
before this Council which
function under the
chairmanship of the District
Collector
Price of the commodity or value of the services and value of
compensation claimed
for a claim of Compensation
District Consumer Forum
up to Rs.20 lakhs
for a claim of Compensation
State Commission above Rs.20 lakhs and up to
Rs.1 crore
for a claim of Compensation
National Commission
above Rs.1 crore

7)What are the particulars that should be furnished along with the
complaint?

The complaint should contain the following particulars:

·The name and complete address of the complainant

·The name and complete address of the opposite party/parties
·Date of purchase of goods or services availed
·Amount paid for the above purpose
· Particulars of goods purchased with numbers or details of services availed
· The details of complaint, whether it is against Unfair Trade Practice /
supply of defective goods / deficiency in service provided / collection of
excess price, should explicitly be mentioned in the complaint petition.
· Bills / receipts and copies of connected correspondence, if any,
· The relief sought for under this Act.

8)What are the reliefs provided under the Act?

The District Forum / State Commission can order the following reliefs:
·To remove the defects in the goods pointed out.
·To replace the goods.
·To return to the complainant the price of the goods
· To pay such amount of compensation for the loss or injury suffered by the
consumer.
· To remove the defects or deficiency in the services
· To discontinue the unfair trade practice or not to repeat it
· To withdraw the hazardous goods from being offered for sale
· To provide the cost of expenditure incurred by the complainant

IT Act,2000

The Government of India enacted The Information Technology Act with some major objectives
which are as follows −

 To deliver lawful recognition for transactions through electronic data interchange (EDI)
and other means of electronic communication, commonly referred to as electronic
commerce or E-Commerce. The aim was to use replacements of paper-based methods of
communication and storage of information.
 To facilitate electronic filing of documents with the Government agencies and further to
amend the Indian Penal Code, the Indian Evidence Act, 1872, the Bankers' Books
Evidence Act, 1891 and the Reserve Bank of India Act, 1934 and for matters connected
therewith or incidental thereto.

The Information Technology Act, 2000, was thus passed as the Act No.21 of 2000. The I. T. Act
got the President’s assent on June 9, 2000 and it was made effective from October 17, 2000. By
adopting this Cyber Legislation, India became the 12th nation in the world to adopt a Cyber Law
regime.

1. What is Cybercrime?

A. Cybercrime refers to all the activities done with criminal intent in cyberspace. Because of the
anonymous nature of the internet, miscreants engage in a variety of criminal activities. The field
of cybercrime is just emerging and new forms of criminal activities in cyberspace are coming to
the forefront with each passing day.

2. Do we have an exhaustive definition of Cybercrime?

A. No, unfortunately we don’t have an exhaustive definition of cybercrime. However, any online
activity which basically offends human sensibilities can be regarded as a cybercrime.

3. What are the various categories of Cybercrimes?

A. Cybercrimes can be basically divided into three major categories −

 Cybercrimes against persons,

  Cybercrimes against property, and
 Cybercrimes against Government.

4. Tell us more about Cybercrimes against persons.

A. Cybercrimes committed against persons include various crimes like transmission of child
pornography, harassment using e-mails and cyber-stalking. Posting and distributing obscene
material is one of the most important Cybercrimes known today.

5. Is Cyber harassment also a Cybercrime?

A. Cyber harassment is a distinct cybercrime. Various kinds of harassment does occur in

cyberspace. Harassment can be sexual, racial, religious, or other. Cyber harassment as a crime
also brings us to another related area of violation of privacy of netizens. Violation of privacy of
online citizens is a Cybercrime of a grave nature.

6. What are Cybercrimes against property?

A. Cybercrimes against all forms of property include unauthorized computer trespassing through
cyberspace, computer vandalism, transmission of harmful programs, and unauthorized
possession of computerized information.

7. Is hacking a Cybercrime?

A. Hacking is amongst the gravest Cybercrimes known till date. It is a dreadful feeling to know
that a stranger has broken into your computer system without your knowledge and has tampered
with precious confidential data.

The bitter truth is that no computer system in the world is hacking proof. It is unanimously
agreed that any system, however secure it might look, can be hacked. The recent denial of
service attacks seen over the popular commercial sites like E-bay, Yahoo, and Amazon are a new
category of Cybercrimes which are slowly emerging as being extremely dangerous.

Using one's own programming abilities to gain unauthorized access to a computer or network is a
very serious crime. Similarly, the creation and dissemination of harmful computer programs
which do irreparable damage to computer systems is another kind of Cybercrime.

8. What is Cybercrime against Government?

A. Cyber Terrorism is one distinct example of cybercrime against government. The growth of
Internet has shown that the medium of cyberspace is being used by individuals and groups to
threaten the governments as also to terrorize the citizens of a country. This crime manifests itself
into terrorism when an individual hacks into a government or military maintained website.

9. Is there any comprehensive law on Cybercrime today?

A. As of now, we don’t have any comprehensive laws on cybercrime anywhere in the world.
This is the reason that the investigating agencies like FBI are finding the Cyberspace to be an
extremely difficult terrain. Cybercrimes fall into that grey area of Internet law which is neither
fully nor partially covered by the existing laws. However, countries are taking crucial measures
to establish stringent laws on cybercrime.

10. Is there any recent case which demonstrates the importance of having a cyber law on
cybercrime within the national jurisdictions of countries?

A. The most recent case of the virus "I love you" demonstrates the need for having cyber laws
concerning cybercrimes in different national jurisdictions. At the time of the web publication of
this feature, Reuters has reported that "The Philippines has yet to arrest the suspected creator of
the 'Love Bug' computer virus because it lacks laws that deal with computer crime, a senior
police officer said". The fact of the matter is that there are no laws relating to cybercrime in the
Philippines.

11. What is Vishing?

A. Vishing is the criminal practice of using social influence over the telephone system, most
often using features facilitated by Voice over IP (VoIP), to gain access to sensitive information
such as credit card details from the public. The term is a combination of "Voice" and phishing.

12. What is Mail Fraud?

A. Mail fraud is an offense under United States federal law, which includes any scheme that
attempts to unlawfully obtain money or valuables in which the postal system is used at any point
in the commission of a criminal offense.

13. What is ID Spoofing?

A. It is the practice of using the telephone network to display a number on the recipient's Caller
ID display which is not that of the actual originating station.

14. What is Cyber espionage?

A. It is the act or practice of obtaining secrets from individuals, competitors, rivals, groups,
governments, and enemies for military, political, or economic advantage using illegal
exploitation methods on the internet.

15. What is the meaning of Sabotage?

A. Sabotage literally means willful damage to any machinery or materials or disruption of work.
In the context of cyberspace, it is a threat to the existence of computers and satellites used by
military activities

16. Name the democratic country in which The Cyber Defamation law was first introduced.
A. South Korea is the first democratic country in which this law was introduced first.

17. What are Bots?

A. Bots are one of the most sophisticated types of crime-ware facing the internet today. Bots earn
their unique name by performing a wide variety of automated tasks on behalf of the cyber
criminals. They play a part in "denial of service" attack in internet.

18. What are Trojans and Spyware?

A. Trojans and spyware are the tools a cyber-criminal might use to obtain unauthorized access
and steal information from a victim as part of an attack.

19. What are Phishing and Pharming?

A. Phishing and Pharming are the most common ways to perform identity theft which is a form
of cyber-crime in which criminals use the internet to steal personal information from others.

20. Mention some tips to prevent cyber-crimes.

 Read the latest ways hackers create phishing scams to gain access to your personal
information.
 Install a firewall on your computer to keep unwanted threats and attacks to a minimum.
 Use caution while opening emails and clicking links. You should read carefully while
downloading content from unverified sources.
 Create strong passwords for any websites where personal information is stored.

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Cyber Law - Intellectual Property Right

Intellectual property rights are the legal rights that cover the privileges given to
individuals who are the owners and inventors of a work, and have created something
with their intellectual creativity. Individuals related to areas such as literature, music,
invention, etc., can be granted such rights, which can then be used in the business
practices by them.
The creator/inventor gets exclusive rights against any misuse or use of work without
his/her prior information. However, the rights are granted for a limited period of time to
maintain equilibrium.
The following list of activities which are covered by the intellectual property rights are
laid down by the World Intellectual Property Organization (WIPO) −
 Industrial designs
 Scientific discoveries
 Protection against unfair competition
 Literary, artistic, and scientific works
 Inventions in all fields of human endeavor
 Performances of performing artists, phonograms, and broadcasts
 Trademarks, service marks, commercial names, and designations
 All other rights resulting from intellectual activity in the industrial, scientific, literary, or
artistic fields
Types of Intellectual Property Rights
Intellectual Property Rights can be further classified into the following categories −
 Copyright
 Patent
 Patent
 Trade Secrets, etc.

Advantages of Intellectual Property Rights

Intellectual property rights are advantageous in the following ways −
 Provides exclusive rights to the creators or inventors.
 Encourages individuals to distribute and share information and data instead of keeping
it confidential.
 Provides legal defense and offers the creators the incentive of their work.
 Helps in social and financial development.
Intellectual Property Rights in India
To protect the intellectual property rights in the Indian territory, India has defined the
formation of constitutional, administrative and jurisdictive outline whether they imply
the copyright, patent, trademark, industrial designs, or any other parts of the
intellectual property rights.
 Back in the year 1999, the government passed an important legislation based on
international practices to safeguard the intellectual property rights. Let us have a
glimpse of the same −
 The Patents (Amendment) Act, 1999, facilitates the establishment of the mail box
system for filing patents. It offers exclusive marketing rights for a time period of five
years.
 The Trade Marks Bill, 1999, replaced the Trade and Merchandise Marks Act, 1958
 The Copyright (Amendment) Act, 1999, was signed by the President of India.
 The sui generis legislation was approved and named as the Geographical Indications of
Goods (Registration and Protection) Bill, 1999.
 The Industrial Designs Bill, 1999, replaced the Designs Act, 1911.
 The Patents (Second Amendment) Bill, 1999, for further amending the Patents Act of
1970 in compliance with the TRIPS.
Intellectual Property in Cyber Space
Every new invention in the field of technology experiences a variety of threats. Internet
is one such threat, which has captured the physical marketplace and have converted it
into a virtual marketplace.
To safeguard the business interest, it is vital to create an effective property
management and protection mechanism keeping in mind the considerable amount of
business and commerce taking place in the Cyber Space.
Today it is critical for every business to develop an effective and collaborative IP
management mechanism and protection strategy. The ever-looming threats in the
cybernetic world can thus be monitored and confined.
Various approaches and legislations have been designed by the law-makers to up the
ante in delivering a secure configuration against such cyber-threats. However it is the
duty of the intellectual property right (IPR) owner to invalidate and reduce such mala
fide acts of criminals by taking proactive measures.

 TRIPATITE SYSTEM/3TIER SYSTEM OF REDRESSAL U/CPA,1986.

Three Tier Consumer Grievances Machinery under the Consumer Protection Act---

1. District Forum:

District forum consists of a president and two other members. The president can be a
retired or working judge of District Court. They are appointed by state government. The
complaints for goods or services worth Rs 20 lakhs or less can be filed in this agency.
The agency sends the goods for testing in laboratory if required and gives decisions on
the basis of facts and laboratory report. If the aggrieved party is not satisfied by the
jurisdiction of the district forum then they can file an appeal against the judgment in
State Commission within 30 days by depositing Rs 25000 or 50% of the penalty amount
whichever is less.
2. State Commission:
It consists of a president and two other members. The president must be a retired or
working judge of high court. They all are appointed by state government. The
complaints for the goods worth more than Rs 20 lakhs and less than Rs 1 crore can be
filed in State Commission on receiving complaint the State commission contacts the
party against whom the complaint is filed and sends the goods for testing in laboratory
if required.
In case the aggrieved party is not satisfied with the judgment then they can file an
appeal in National Commission within 30 days by depositing Rs 3500 or 50% of penalty
amount whichever is less.
3. National Commission:
The national commission consists of a president and four members one of whom shall
be a woman. They are appointed by Central Government. The complaint can be filed in
National Commission if the value of goods exceeds Rs 1 crore. On receiving the
complaint the National Commission informs the party against whom complaint is filed
and sends the goods for testing if required and gives judgment?

If aggrieved party is not satisfied with the judgment then they can file a complaint in
Supreme Court within 30 days.

Basis District State Commission National

Commission
Composition president president president
+2Membs +2 Membs +4 Membs
Who can be a A working or retired A working or retired A working or retired
President judge of District judge of High Court. judge of Supreme
Court. Court.
Appointment of The president is The president is The president is
President appointed by the appointed by the appointed by the
state government on state government central government
the recommendation after consultation after consultation
of the selection with the chief with the chief
committee. justice of the High justice of India,
Court.
Jurisdiction In 1986, it had In 1986, it had In 1986, it had
jurisdiction to jurisdiction to jurisdiction to
entertain complaints entertain complaints entertain complaints
where the value of when the value of where the value of
 goods or services goods or services goods or services
does not exceed Rs exceeds Rs 5,00,000 exceeds Rs 20 lakhs
5, 00,000 but now and does not exceed but now the limit is
the limit is raised to Rs 20,00,000 but raised and it
20 lakhs. now it is raised to entertains the
more than Rs complaints of goods
20,00,000 and up to or services where
Rs1 crore. the value exceeds
Rs 1 crore.
Appeal against Any person who is Any person who is Any person who is
orders aggrieved by the aggrieved by the aggrieved by the
order of District order of State order of the
Forum can appeal Commission can National
against such order appeal against such Commission can
to State order to National appeal against such
Commission within Commission within order to Supreme
30 days and by 30 days and by Court within 30
depositing Rs 25000 depositing Rs 35000 days and by
or 50% of the or 50% of penalty depositing 50% of
penalty amount amount whichever penalty amount but
whichever is less is less. only cases where
value of goods or
services exceeds Rs
1 crore can file
appeal in Supreme
Court.

 Section 13. Procedure on admission of complaint.

(1) The District Forum shall, on admission of a complaint, if it relates to any goods,—

(a) refer a copy of the admitted complaint, within twenty-one days from the date of its admission
to the opposite party mentioned in the complaint directing him to give his version of the case
within a period of thirty days or such extended period not exceeding fifteen days as may be
granted by the District Forum;

(b) where the opposite party on receipt of a complaint referred to him under clause (a) denies or
disputes the allegations contained in the complaint, or omits or fails to take any action to
represent his case within the time given by the District Forum, the District Forum shall proceed
to settle the consumer dispute in the manner specified in clauses (c) to (g);
(c) where the complaint alleges a defect in the goods which cannot be determined without proper
analysis or test of the goods, the District Forum shall obtain a sample of the goods from the
complainant, seal it and authenticate it in the manner prescribed and refer the sample so sealed to
the appropriate laboratory along with a direction that such laboratory make an analysis or test,
whichever may be necessary, with a view to finding out whether such goods suffer from any
defect alleged in the complaint or from any other defect and to report its findings thereon to the
District Forum within a period of forty-five days of the receipt of the reference or within such
extended period as may be granted by the District Forum;

(d) before any sample of the goods is referred to any appropriate laboratory under clause (c), the
District Forum may require the complainant to deposit to the credit of the Forum such fees as
may be specified, for payment to the appropriate laboratory for carrying out the necessary
analysis or test in relation to the goods in question;

(e) the District Forum shall remit the amount deposited to its credit under clause (d) to the
appropriate laboratory to enable it to carry out the analysis or test mentioned in clause (c) and on
receipt of the report from the appropriate laboratory, the District Forum shall forward a copy of
the report along with such remarks as the District Forum may feel appropriate to the opposite
party;

(f) if any of the parties disputes the correctness of the findings of the appropriate laboratory, or
disputes the correctness of the methods of analysis or test adopted by the appropriate laboratory,
the District Forum shall require the opposite party or the complainant to submit in writing his
objections in regard to the report made by the appropriate laboratory;

(g) the District Forum shall thereafter give a reasonable opportunity to the complainant as well as
the opposite party of being heard as to the correctness or otherwise of the report made by the
appropriate laboratory and also as to the objection made in relation thereto under clause (/) and
issue an appropriate order under section 14.

(2) the District Forum shall, if the complaint admitted by it under section 12 relates to goods in
respect of which the procedure specified in sub-section (1) cannot be followed, or if the
complaint relates to any services,—

(a) refer a copy of such complaint to the opposite party directing him to give his version of the
case within a period of thirty days or such extended period not exceeding fifteen days as may be
granted by the District Forum;

(b) where the opposite party, on receipt of a copy of the complaint, referred to him under clause
(a) denies or disputes the allegations contained in the complaint, or omits or fails to take any
action to represent his case within the time given by the District Forum, the District Forum shall
proceed to settle the consumer dispute,—

(i) on the basis of evidence brought to its notice by the complainant and the opposite party,
where the opposite party denies or disputes the allegations contained in the complaint, or
(ii) ex parte on the basis of evidence brought to its notice by the complainant where the opposite
party omits or fails to take any action to represent his case within the time given by the Forum.

(c) where the complainant fails to appear on the date of hearing before the District Forum, the
District Forum may either dismiss the complaint for default or decide it on merits.

(3) No proceedings complying with the procedure laid down in subsections [1] and [2] shall be
called in question in any court on the ground that the principles of natural justice have not been
complied with.

(3A) Every complaint shall be heard as expeditiously as possible and endeavour shall be made to
decide the complaint within a period of three months from the date of receipt of notice by
opposite party where the complaint does not require analysis or testing of commodities and
within five months if it requires analysis or testing of commodities:

Provided that no adjournment shall be ordinarily granted by the District Forum unless sufficient
cause is shown and the reasons for grant of adjournment have been recorded in writing by the
Forum:

Provided further that the District Forum shall make such orders as to the costs occasioned by the
adjournment as may be provided in the regulations made under this Act.

Provided also that in the event of a complaint being disposed of after the period so specified, the
District Forum shall record in writing, the reasons for the same at the time of disposing of the
said complaint.

(3B) Where during the pendency of any proceeding before the District Forum, it appears to it
necessary, it may pass such interim order as is just and proper in the facts and circumstances of
the case.

(4) For the purposes of this section, the District Forum shall have the same powers as are vested
in a civil court under Code of Civil Procedure, 1908 while trying a suit in respect of the
following matters, namely:—

(i) the summoning and enforcing the attendance of any defendant or witness and examining the
witness on oath;

(ii) the discovery and production of any document or other material object producible as
evidence;

(iii) the reception of evidence on affidavits;

(iv) the requisitioning of the report of the concerned analysis or test from the appropriate
laboratory or from any other relevant source;

(v) issuing of any commission for the examination of any witness, and
(vi) any other matter which may be prescribed.

(5) Every proceeding before the District Forum shall be deemed to be a judicial proceeding
within the meaning of sections 193 and 228 of the Indian Code (45 of 1860), and the District
Forum shall be deemed to be a civil court for the purposes of section 195, and Chapter XXVI of
the Code of Criminal Procedure, 1973 (2 of 1974).

(6) Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub-
section (1) of section 2, the provisions of rule 8 of Order I of the First Schedule to the Code of
Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification that every reference
therein to a suit or decree shall be construed as a reference to a complaint or the order of the
District Forum thereon.

(7) In the event of death of a complainant who is a consumer or of the opposite party against
whom the complaint has been filed, the provisions of Order XXII of the First Schedule to the
Code of Civil Procedure, 1908 (5 of 1908) shall apply subject to the modification that every
reference therein to the plaintiff and the defendant shall be construed as reference to a
complainant or the opposite party, as the case may be.