Question

why rules and regulations are required in market place ? illustrate with few exampleexamples

Answer 1

Rules and regulations" are required in the market place as consumers are often exploited in the market place as (1)sellers may sell their products at high rates. (2)cheating of underweight measurements of goods may happen. (3)sellers may sell duplicates products Or may sell adulterated/defective products. (4)sometimes cash memos(bills) are not given to the consumer. (5)sometimes false information of products is given to the consumer. (6) Markets do not work in a fair manner if there is monopoly of few and powerful producers and when purchase of consumer is small and they have no single voice. So there is need of rules and regulations in the market.

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Answer 2

Answer:

Rules and regulations are required in the marketplace to protect consumers against exploitation by sellers and service provider. Especially when large companies are producing these goods and these companies with huge wealth, power and reach can manipulate the market in various ways. Sellers often abdicate responsibility for a low-quality product, cheat in weighing out goods, add extra charges over the retail price, sell adulterated/ defective goods and also provide false information about a product or service. Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. Hence, rules and regulations are needed to protect the scattered buyers from powerful and fewer producers who monopolise markets. For example, a grocery shop owner might sell expired products and then blame the customer for not checking the date of expiry before buying the items.