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Semester Fall 2016
Course Title: Business Ethics
Corse Code: MGT610
Due Date: January 24, 2017
Assignment No 1
Marks = 20
After this activity, students should be able to:
• Know the ethical concepts that are relevant to resolving moral issues in business.
• To impart the reasoning and analytical skills needed to apply ethical concepts to business decisions
• To identify the moral issues involved in the management of specific problem areas in business
After this activity, student will become able;
• To comprehend the real world scenario with the theoretical base knowledge
• To see practical implications of the learned theories of ethical practices
• To understand local problems and solve it, which leads towards the elucidation of global issues
• To cognize how law can be derived from the basic principles of ethics
Topic: Consumer Protection Act & Business Ethics
Read the following head/article 22 of Consumer Protection Act 2005 and give answer to the question.
22. Prohibition on bait advertisement.–
(1) No person shall, in trade, advertise or supply at a specified price products or services which that person–
(a) does not intend to offer for supply; or
(b) does not have reasonable grounds for believing that they can be supplied at that price for a period that is, and in quantities that are, reasonable having regard to the nature of the market in which the person carries on business and the nature of the advertisement.
(2) Any person who has advertised products or services for supply at a specified price shall offer such products or services for supply at that price for a period that is, and in quantities that are reasonable having regard to the nature of the market in which the person carries on business and the nature of the advertisement.
It is observed many times that one product is available in higher price, contradictory to the printed price on the product. On asking the shopkeeper, the usual reply is that it happened due to increase in price by whole seller or distributor, and wholesaler and distributor argue that they are not responsible for it and manufacturer is sole responsible for this increase.
Manufacturer of the product is solely responsible for this act. As per the article 22 Consumer Protection Act 2005, is this act unlawful or unethical? Explain your answer in the light of given article and your understanding about business ethics.
Marks distribution = (5+15 = 20)
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