Read the following statements and choose the correct option.
Statement I: Under moral justification, a business must avoid unfair trade practices such as adulteration and hoarding.
Statement II: Under moral justification, a business takes care of consumers’ interest so as to avoid government intervention or action.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is correct but Statement II is incorrect.
Statement I: Under moral justification, a business must avoid unfair trade practices such as adulteration and hoarding. — Correct. Under this point a business has a moral duty not to exploit consumers. So it must avoid unfair practices such as adulteration, hoarding, black marketing and false advertising.
Statement II: Under moral justification, a business takes care of consumers’ interest so as to avoid government intervention or action. — Incorrect. Avoiding government action is the reason under the point government intervention. Under moral justification, a business cares for consumers because it is its moral duty, whether or not the government acts.
NCERT (2026-27 Edition): “(iv) Moral Justification: It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation. Thus, a business must avoid unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing, etc.” “(v) Government Intervention: A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company. Thus, it is advisable that business organisations voluntarily resort to such practices where the customers’ needs and interests will well be taken care of.” |