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CMA Foundation · Fundamentals of Business Laws and Business Communication · Primary and Subordinate Legislation

Parliament passes an Act that lays down the policy for regulating a trade but leaves the detailed procedure to be filled in by the Central Government through rules. Which statement about this arrangement is most accurate?

The Act is valid because Parliament may set the policy and delegate details to the executive. However, the rules remain subordinate to the Act and cannot override it or exceed the policy it lays down; any conflicting rule is liable to be held invalid.

  1. AThe Act is invalid because Parliament cannot leave any detail to the executive
  2. BThe Act is valid, but the rules cannot override or go beyond the policy laid down in the ActCorrect
  3. CThe rules will prevail over the Act if they are more detailed
  4. DThe Act is valid only if the rules are approved by the Supreme Court before use

Explanation

Parliament may lay down the policy and delegate details, so the Act is valid. The delegated rules stay subordinate to the Act and are void to the extent they conflict with it. More detail does not give the rules priority, and Supreme Court pre-approval is not required.

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