CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Data Governance
Kaveri Traders, a partnership firm engaged in online sales, handles sensitive personal data of buyers. A partner argues that Section 43A of the IT Act, 2000 cannot apply because the firm is not a company. Which view is correct?
The partner is wrong. For Section 43A, body corporate means any company and also includes a firm, sole proprietorship or association of individuals engaged in commercial or professional activities, so an online trading firm handling sensitive personal data can be made liable to pay compensation.
- ACorrect, because the section covers only companies
- BIncorrect, because 'body corporate' includes a firm engaged in commercial activitiesCorrect
- CCorrect, because firms are covered only by the DPDP Act
- DIncorrect, but only if the firm has more than twenty partners
Explanation
The Explanation to Section 43A defines body corporate as any company and includes a firm, sole proprietorship or other association of individuals engaged in commercial or professional activities. A trading firm is therefore covered. No partner-count condition exists in the definition.
Did you get it right without looking?
One question tells you little. A timed set on Data Governance shows your real accuracy, how long you take and where you lose marks.
More Data Governance questions
- Nirmal Pharma Ltd's board is checking what 'reasonable security practices and procedures' means when no contract with its data providers spe…
- Kavach Net Services, an intermediary, intentionally refuses to extend facilities to an agency authorised under Section 69B(1). Which is the …
- A proprietorship firm run by Mr. Iyer in Chennai provides professional accounting services and handles clients' sensitive personal data in i…
- Under the Digital Personal Data Protection Act, 2023, the Central Government is forming the Data Protection Board. Which composition require…
- Sunrise Retail Ltd, an Indian company, stores customers' sensitive personal data on its own servers. Its IT head skipped basic security proc…
- Meridian Pay Ltd's board notes that an agency has been authorised to monitor and collect traffic data under Section 69B, and separately that…