Previous Year Question
Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R).
Assertion (A): Consumers can bargain below Maximum Retail Price (MRP).
Reason (R): MRP is a price a seller must charge from the buyer.
Select the correct answer from the code given below:
Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(A) is false, but (R) is true.
(A) is true, but (R) is false.
Both (A) and (R) are true and (R) is the correct explanation of (A).
Correct Answer: C
Detailed Solution
Assertion (A) is correct. The Maximum Retail Price (MRP) is the maximum price at which a packaged commodity may be sold to a consumer. Therefore, a seller may sell a product below its MRP, and a consumer may bargain for a price below the MRP.
Here, “can bargain” does not mean that the seller is legally required to accept a lower price; it means that the law does not prohibit a sale below the MRP.
Reason (R) is incorrect. MRP is not the price that a seller must necessarily charge. It represents the maximum permissible price or upper ceiling.
Under the Legal Metrology framework, the retail sale price is the maximum price at which a packaged commodity may be sold to a consumer. A retail dealer or other person is also prohibited from selling a packaged commodity at a price exceeding its retail sale price.
The MRP also includes applicable taxes. Therefore, under normal circumstances, a retailer cannot add tax over and above the MRP and collect a higher amount from the consumer.
For example, if the MRP of a product is ₹100, it may be sold for ₹90 or ₹95, but ordinarily it cannot be sold for ₹105.