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ICAR AICE-JRF/SRF Agribusiness Law & Ethics: practice questions

ICAR AICE-JRF/SRF (PhD admission and fellowship) · India · National Testing Agency for ICAR

Original practice questions written to the published syllabus · not past papers
10worked here, free
33written to this exam in this subject
10syllabus units

What this subject covers

The laws an agribusiness manager meets most, from contracts and sale of goods to company, commodity, consumer and competition law, and the ethics of business.

In the exams: agricultural master's entrance examinations, principles of corporations (present)

Where the 33 questions fall

How our questions for ICAR AICE-JRF/SRF spread across the units of Agribusiness Law & Ethics. Difficulty: 1 easy, 15 medium, 17 hard.

Regulation of international business10
Competition Act 20025
Regulation of agricultural trade and supply4
Legal systems: common law, civil law and mixed systems3
Contract law principles (with national contract acts as examples)3
Companies Act3
Business ethics2
Sale of Goods Act 19301
Consumer Protection Act1
Right to Information Act1

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

1 · Legal systems: common law, civil law and mixed systems · medium

Principle 15 of the Rio Declaration 1992 states that lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures against serious or irreversible environmental damage. This is the:

  1. polluter pays principle
  2. precautionary principle
  3. public trust doctrine
  4. principle of inter-generational equity
Answer and working

B. precautionary principle

Principle 15 is the precautionary principle; the polluter pays principle is Principle 16. The public trust doctrine is a common-law idea applied by US courts since 1892 and by courts in several other countries.

2 · Legal systems: common law, civil law and mixed systems · hard

Which ILO convention specifically sets standards for occupational safety and health in agriculture, covering machinery, chemicals, animal handling and welfare facilities on farms?

  1. Forced Labour Convention 1930 (No. 29)
  2. Minimum Age Convention 1973 (No. 138)
  3. Maritime Labour Convention 2006 (MLC)
  4. Safety and Health in Agriculture Convention 2001 (No. 184)
Answer and working

D. Safety and Health in Agriculture Convention 2001 (No. 184)

Convention 184 (2001) is the agriculture-specific safety and health standard. Convention 29 concerns forced labour, Convention 138 minimum ages, and the Maritime Labour Convention seafarers. Because many countries long exempted farm work from labour laws, buyers increasingly audit farms against these standards.

3 · Companies Act · medium

A listed agri-input company has 12 directors on its board. If the governance rules it follows require at least one-third of the board to be independent, at least how many directors must be independent?

  1. 6
  2. 3
  3. 4
  4. 2
Answer and working

C. 4

One-third of 12 is 4. Rules differ by country: India requires one-third for listed companies, the UK Corporate Governance Code asks for at least half the board excluding the chair, and US exchanges require a majority; 6 would be one-half, and 2 or 3 fall short of one-third.

4 · Companies Act · medium

In the United States, which law gives agricultural producers a limited exemption from antitrust law so that they can market their produce jointly through cooperatives?

  1. The Sherman Act 1890
  2. The Packers and Stockyards Act 1921
  3. The Capper-Volstead Act 1922
  4. The Clayton Act 1914
Answer and working

C. The Capper-Volstead Act 1922

Capper-Volstead allows farmers to act together in cooperatives for processing and marketing. The Sherman Act is the general antitrust law the exemption qualifies; the Packers and Stockyards Act regulates livestock markets. EU market rules give recognised producer organisations similar room.

5 · Regulation of agricultural trade and supply · hard

Under a stock-limit rule requiring a 50 per cent rise for non-perishable foodstuffs, measured against the lower of the preceding twelve months' price and the five-year average, a pulse cost 110 currency units per kg over the preceding twelve months, the five-year average is 100 and the current price is 160. Is the trigger met?

  1. No: against 110 the rise is about 45 per cent, which falls below the 50 per cent trigger
  2. No: pulses would need a 100 per cent rise
  3. Yes, because any rise over 25 per cent is enough
  4. Yes: against the lower baseline of 100 the rise is 60 per cent, above the trigger
Answer and working

D. Yes: against the lower baseline of 100 the rise is 60 per cent, above the trigger

Baseline = lower of 110 and 100 = 100. Rise = (160 - 100) / 100 x 100 = 60 per cent, above the 50 per cent trigger. Using 110 gives (160 - 110) / 110 = 45.5 per cent, the wrong baseline; 100 per cent is the horticultural trigger.

6 · Right to Information Act · hard

A seed company's variety-performance data held by a public research institute is requested under a freedom-of-information law by a rival firm. The most relevant exemption is:

  1. the commercial-confidentiality exemption for trade secrets, subject to a public-interest override
  2. the proactive-disclosure duty, which bars release of any commercial data
  3. the officer-penalty provision, which lets an information officer refuse any request made by a company
  4. no exemption, because everything held by public authorities must be disclosed
Answer and working

A. the commercial-confidentiality exemption for trade secrets, subject to a public-interest override

FOI laws protect commercial confidences: Exemption 4 of the US Act and section 43 of the UK Act, usually with a public-interest override and consultation of the third party. Proactive disclosure and penalty provisions do not create exemptions.

7 · Competition Act 2002 · hard

A seed company licenses a patented trait to other seed firms with conditions designed to protect the patent. How do most competition laws treat such conditions?

  1. All technology licences are wholly exempt from competition law
  2. All licence conditions are presumed to be illegal cartel agreements between the licensor and licensees
  3. Reasonable conditions protecting the right are allowed; ones extending market power can be challenged
  4. Licences are reviewed only under merger control and never as agreements
Answer and working

C. Reasonable conditions protecting the right are allowed; ones extending market power can be challenged

The EU's technology-transfer rules and the US agencies' IP licensing guidelines allow reasonable conditions that protect IP, while unreasonable restraints or abuse by a dominant licensor remain open to challenge.

8 · Regulation of international business · medium

The Sanitary and Phytosanitary Agreement names international bodies whose standards serve as benchmarks. The body for plant health is the:

  1. Codex Alimentarius Commission
  2. World Organisation for Animal Health (WOAH)
  3. International Plant Protection Convention (IPPC)
  4. International Union for the Protection of New Varieties of Plants (UPOV)
Answer and working

C. International Plant Protection Convention (IPPC)

The SPS 'three sisters' are Codex (food safety), WOAH (animal health) and IPPC (plant health). UPOV deals with plant breeders' rights, not plant health.

9 · Regulation of international business · medium

Anti-dumping duties on imports are governed internationally by:

  1. the export-competition pillar of the WTO Agreement on Agriculture, which covers all trade remedies
  2. GATT Article VI and the Anti-Dumping Agreement, applied through national trade-remedy law
  3. the ban on abuse of dominance in competition law
  4. the New York Convention on arbitral awards
Answer and working

B. GATT Article VI and the Anti-Dumping Agreement, applied through national trade-remedy law

WTO rules set the conditions (dumping, injury, causation) and each member levies duties under its own law, for example the EU's basic anti-dumping regulation. Predatory pricing inside a market is a competition matter, a different law.

10 · Regulation of international business · medium

TRIPS Article 27.3(b) allows WTO members to exclude plants and animals from patentability but requires them to protect plant varieties by:

  1. membership of UPOV 1991 only
  2. trademarks and geographical indications registered in the country of origin
  3. patents, an effective sui generis system, or a combination of the two
  4. no protection at all, if they are developing countries
Answer and working

C. patents, an effective sui generis system, or a combination of the two

Article 27.3(b) leaves the choice to members; UPOV is one sui generis model but not mandatory. Several countries chose their own laws instead, for example India (2001) and Malaysia (2004), while about 80 members belong to UPOV.

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Agribusiness Law & EthicsThe full study manual, free ICAR AICE-JRF/SRFFormat, sections and how it has changed

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