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Practice paper — Constitution Part XIII — Trade, Commerce and Intercourse within the Territory of India

30 questions · answer key at the end · no time limit

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1.Article 301 states: 'Subject to the other provisions of this Part, trade, commerce and intercourse throughout the territory of India shall be free.' Which of the following does Article 301 directly guarantee?
- (A) Freedom of religion throughout the territory of India
- (B) Freedom of trade, commerce and intercourse throughout the territory of India
- (C) Right to property throughout the territory of India
- (D) Freedom of the press throughout the territory of India
2.The phrase 'throughout the territory of India' in Article 301 most directly indicates that the freedom applies to:
- (A) The entire territory of India
- (B) Only regions specified elsewhere in the Constitution
- (C) Only metropolitan cities in India
- (D) Only foreign trade and commerce
3.Based solely on the wording of Article 301, does this provision make trade with foreign countries free?
- (A) Yes, it explicitly includes foreign trade
- (B) It is silent on foreign trade
- (C) No — it refers to trade 'throughout the territory of India'
- (D) Yes — it allows states to regulate foreign trade freely
4.What does the opening clause 'Subject to the other provisions of this Part' in Article 301 most directly indicate?
- (A) The freedom is absolute and cannot be limited
- (B) The freedom applies only during emergencies
- (C) The freedom applies only to citizens
- (D) The freedom is subject to and may be limited by other provisions in the same Part
5.Which of the following statements can be concluded solely from the text of Article 301?
- (A) Article 301 forbids any restrictions on trade, commerce and intercourse even if another provision permits them
- (B) Article 301 guarantees free trade, commerce and intercourse across India but allows limitations provided elsewhere in the same Part
- (C) Article 301 creates a new power for Parliament to regulate trade
- (D) Article 301 guarantees free international commerce
6.Who is empowered by Article 302 to impose restrictions on freedom of trade, commerce or intercourse?
- (A) Parliament
- (B) State Legislature
- (C) The President
- (D) The Supreme Court
7.Article 302 permits restrictions on which of the following freedoms?
- (A) Freedom of speech and expression
- (B) Freedom of trade, commerce or intercourse
- (C) Freedom of religion
- (D) Right to property
8.Can Parliament under Article 302 impose restrictions on trade or intercourse occurring wholly within a single State?
- (A) No, it applies only between one State and another
- (B) Yes, but only during a national emergency
- (C) Yes, it can impose restrictions 'within any part of the territory of India'
- (D) Only if the State Legislature gives its consent
9.Are restrictions under Article 302 permitted for purposes other than the public interest?
- (A) Yes, for any legislative purpose
- (B) Yes, if Parliament considers them expedient
- (C) No, they must be 'required in the public interest'
- (D) Only when approved by the President
10.In what form must Parliament enact restrictions under Article 302?
- (A) By executive orders issued by the Central Government
- (B) By law
- (C) By judicial notification
- (D) By customary practice accepted by Parliament
11.Under Article 303(1) of the Constitution, what power is expressly denied to Parliament and State Legislatures with respect to trade and commerce?
- (A) To make any law giving preference to one State over another, or making discrimination between States, by virtue of any entry relating to trade and commerce in any of the Lists in the Seventh Schedule.
- (B) To make any law regulating inter-State trade and commerce in general.
- (C) To levy taxes on goods in inter-State trade and commerce.
- (D) To delegate legislative power on trade and commerce to a regulatory authority.
12.What exception to the prohibition in Article 303(1) is provided by Article 303(2)?
- (A) No exception is provided; the prohibition is absolute.
- (B) Parliament may give preference or make discrimination if the law declares it necessary to deal with a situation arising from scarcity of goods in any part of the territory of India.
- (C) State Legislatures may give preference in case of local scarcity of goods.
- (D) Preference or discrimination is permitted only for defence-related supplies.
13.A State Legislature proposes a law, under a trade-and-commerce entry in the Seventh Schedule, favouring local manufacturers over manufacturers in other States. Under Article 303, is this permissible?
- (A) Yes — a State Legislature can favour its own manufacturers if the entry is in the State List.
- (B) Yes — provided Parliament has previously authorised such favouring.
- (C) No — neither Parliament nor a State Legislature can make such a law giving preference to one State over another by virtue of an entry relating to trade and commerce.
- (D) Yes — but only if the President gives prior assent in each case.
14.How does Article 303 relate to Article 302 (which deals with Parliament's power to regulate trade)?
- (A) Article 302 overrides Article 303 whenever Parliament exercises its power.
- (B) The two Articles are unrelated and operate in independent spheres.
- (C) Article 303 only applies when Article 302 is not invoked.
- (D) Article 303 operates notwithstanding anything in Article 302, restricting Parliament's and State Legislatures' power to give preference or make discrimination under trade-and-commerce entries.
15.Does the prohibition in Article 303(1) apply to a law that gives preference to a State when that law is not made 'by virtue of any entry relating to trade and commerce in any of the Lists in the Seventh Schedule'?
- (A) Yes — Article 303(1) prohibits any law favouring one State over another regardless of its legislative basis.
- (B) No — the prohibition in clause (1) applies only to laws made by virtue of an entry relating to trade and commerce in the Seventh Schedule.
- (C) Yes — but only if the law affects inter-State movement of goods.
- (D) No — clause (1) applies only to laws enacted by State Legislatures, not Parliament.
16.Under Article 304(a), what limitation is placed on a State's power to tax goods imported from other States?
- (A) The State may impose any tax on imports whether or not local goods are taxed
- (B) The State may impose any tax on imported goods only to the extent that similar goods manufactured or produced in that State are subject to that tax, and it must not discriminate between imported and local goods
- (C) The State may impose only customs duties on goods from other States
- (D) The State may impose taxes on imports only with prior sanction of the President
17.Which of the following best states the power given to a State Legislature by Article 304(b)?
- (A) The State may impose reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State as may be required in the public interest
- (B) The State may totally prohibit all inter‑State trade without any condition
- (C) The State may only legislate on taxes under clause (b)
- (D) No restrictions on trade are permissible under any circumstances
18.What is the effect of the opening phrase 'Notwithstanding anything in article 301 or article 303' in Article 304?
- (A) Article 304 is subordinate to Articles 301 and 303 and cannot operate if they conflict
- (B) Article 301 and 303 continue to prohibit any State law under Article 304
- (C) Article 304 operates even if Articles 301 or 303 would otherwise restrict the State from making the laws permitted by Article 304
- (D) Article 304 repeals Articles 301 and 303
19.Which of the following is mandated by the proviso to Article 304 regarding restrictions under clause (b)?
- (A) The Governor of the State must give prior sanction before any such Bill is introduced
- (B) No Bill or amendment for the purposes of clause (b) shall be introduced or moved in the State Legislature without the previous sanction of the President
- (C) Presidential sanction is required only after the Bill has been passed by the State Legislature
- (D) No sanction is required for Bills under clause (b) if they are temporary
20.Which statement correctly captures the scope of the proviso to Article 304 concerning Bills and amendments for clause (b)?
- (A) Prior sanction of the President is required only after the Bill is passed by the Legislature
- (B) Prior sanction of the President is required before any Bill or amendment for the purposes of clause (b) can be introduced or moved in the State Legislature
- (C) Prior sanction is required only for amendments, not for introducing Bills
- (D) Prior presidential sanction is unnecessary where the restrictions are described as 'reasonable' in the Bill
21.According to Article 305, how do Articles 301 and 303 affect the provisions of any existing law?
- (A) Nothing in Articles 301 and 303 shall affect the provisions of any existing law except insofar as the President may by order otherwise direct.
- (B) Articles 301 and 303 override all existing laws immediately upon commencement.
- (C) Articles 301 and 303 apply only to laws enacted after the Constitution (Fourth Amendment) Act, 1955.
- (D) Articles 301 and 303 permit State Legislatures to annul existing laws.
22.What does Article 305 say about laws made before the commencement of the Constitution (Fourth Amendment) Act, 1955, in relation to Article 301?
- (A) Such laws are wholly repealed by Article 301.
- (B) Such laws are subject only to Article 303 and not to Article 301.
- (C) Nothing in Article 301 shall affect the operation of any law made before that commencement insofar as it relates to, or prevent Parliament or the Legislature of a State from making any law relating to, matters referred to in subclause (ii) of clause (6) of Article 19.
- (D) The President alone may validate or annul such pre-1955 laws.
23.Does Article 305 prevent Parliament or a State Legislature from making laws relating to matters referred to in subclause (ii) of clause (6) of Article 19?
- (A) Yes; Article 305 bars any new laws on those matters.
- (B) No; nothing in Article 301 shall prevent Parliament or the Legislature of a State from making any law relating to such matters.
- (C) Only Parliament can make such laws; State Legislatures are excluded.
- (D) Only the President can authorize such laws by order.
24.Under Article 305, can the President by order alter the saving of existing laws with respect to Articles 301 and 303?
- (A) No; the President has no power under Article 305 to alter the saving.
- (B) Yes; but only with the approval of the Supreme Court.
- (C) Yes; only State Legislatures may direct otherwise in respect of existing laws.
- (D) Yes; except insofar as the President may by order otherwise direct.
25.Which of the following correctly describes the distinct protections in Article 305 for existing laws and for laws made before the Fourth Amendment Act, 1955?
- (A) Both Articles 301 and 303 are stated to not affect the operation of laws made before the 1955 amendment.
- (B) Only Article 301 is expressly stated as not affecting the operation of laws made before the 1955 amendment; Article 303 is not mentioned in that second saving.
- (C) Article 303 alone is stated as not affecting the operation of laws made before the 1955 amendment.
- (D) The provision states that the President’s order can alone remove protections for pre-1955 laws.
26.What power does Article 307 of the Constitution of India give to Parliament?
- (A) To appoint an authority for carrying out the purposes of Articles 301–304
- (B) To declare restrictions on trade and commerce between states
- (C) To amend Articles 301–304 without following the amendment procedure
- (D) To delegate legislative power to state governments for Articles 301–304
27.Article 307 authorises appointment of an authority to carry out the purposes of which Articles?
- (A) Articles 301, 302, 303 and 305
- (B) Articles 300, 301, 302 and 303
- (C) Articles 301, 302, 303 and 304
- (D) Articles 302, 303 and 304 only
28.Under Article 307, who can determine the powers and duties of the authority appointed under that Article?
- (A) The Supreme Court
- (B) The President by executive order
- (C) State legislatures where the authority functions
- (D) Parliament, by law, as it thinks necessary
29.Does Article 307 make appointment of such an authority mandatory or discretionary for Parliament?
- (A) It makes appointment mandatory; Parliament must appoint an authority
- (B) It is discretionary; Parliament may by law appoint such an authority
- (C) It is mandatory only if a state legislature requests it
- (D) It is mandatory only after Articles 301–304 are amended
30.Which statement best captures Article 307's provision about conferring functions on the appointed authority?
- (A) Parliament is required to confer all possible powers and duties on the authority
- (B) Parliament may confer such powers and duties on the authority as it thinks necessary
- (C) The appointed authority may itself determine its powers and duties
- (D) The judiciary will prescribe the powers and duties of the authority

Answer key

1. B2. A3. C4. D5. B6. A7. B8. C9. C10. B11. A12. B13. C14. D15. B16. B17. A18. C19. B20. B21. A22. C23. B24. D25. B26. A27. C28. D29. B30. B

Explanations

1. (B) The text expressly says 'trade, commerce and intercourse throughout the territory of India shall be free,' so it directly guarantees freedom of trade, commerce and intercourse. The provision does not mention religion, property or press.
2. (A) Article 301 states the freedom applies 'throughout the territory of India,' which directly indicates the scope is the entire territory of India. The text does not limit the phrase to specific regions or to foreign trade.
3. (C) Article 301 confines its guarantee to 'throughout the territory of India,' so the wording pertains to internal trade within India rather than trade with foreign countries. The text does not state that foreign trade is covered.
4. (D) The clause 'Subject to the other provisions of this Part' directly signals that the freedom guaranteed is qualified by, and subordinate to, other provisions in the same Part. It therefore is not presented as absolute in the text.
5. (B) The provision reads, 'Subject to the other provisions of this Part, trade, commerce and intercourse throughout the territory of India shall be free,' which indicates a guarantee of freedom across India that is nonetheless subject to limitations in other provisions of the same Part. The text does not create powers for Parliament or address international commerce.
6. (A) The provision begins with 'Parliament may by law impose such restrictions...', which directly names Parliament as the body empowered to impose those restrictions.
7. (B) The text specifies restrictions may be imposed on 'the freedom of trade, commerce or intercourse,' making that the correct subject of Article 302.
8. (C) Article 302 authorizes restrictions 'between one State and another or within any part of the territory of India,' so restrictions may apply within any part of India, including wholly within a State.
9. (C) The provision states such restrictions may be imposed 'as may be required in the public interest,' which limits permissible restrictions to those required for public interest.
10. (B) Article 302 expressly says 'Parliament may by law impose such restrictions,' indicating the restrictions must be enacted by law (legislation), not by executive or other measures.
11. (A) Clause (1) states that neither Parliament nor a State Legislature shall have power to make any law giving preference to one State over another, or making discrimination between States, by virtue of any entry relating to trade and commerce in the Lists in the Seventh Schedule. The provision is a direct prohibition on such preferential or discriminatory laws made under those entries.
12. (B) Clause (2) explicitly permits Parliament to make laws giving preference or making discrimination when such a law declares that it is necessary to deal with a situation arising from scarcity of goods in any part of India. The exception is therefore limited to Parliament and scarcity situations as declared by law.
13. (C) Clause (1) bars both Parliament and State Legislatures from making any law that gives preference to one State over another, or makes discrimination between States, by virtue of any entry relating to trade and commerce in the Seventh Schedule. Such a State law would therefore be prohibited.
14. (D) Article 303 begins with 'Notwithstanding anything in article 302', meaning it applies despite the provisions of Article 302. Thus Article 303 imposes a restriction on the legislative powers described in Article 302 with respect to preference or discrimination between States under trade-and-commerce entries.
15. (B) Clause (1) confines its prohibition to laws giving preference or making discrimination 'by virtue of any entry relating to trade and commerce in any of the Lists in the Seventh Schedule.' Therefore the restriction applies to laws made under those entries; it does not, on its face, reach laws not made by virtue of such entries.
16. (B) Article 304(a) permits a State to impose on goods imported from other States (or Union territories) any tax to which similar goods manufactured or produced in that State are subject, but expressly adds 'so, however, as not to discriminate' between imported and local goods. Thus parity and non‑discrimination are the stated limits.
17. (A) Article 304(b) authorises the State Legislature to impose 'such reasonable restrictions on the freedom of trade, commerce or intercourse with or within that State as may be required in the public interest.' It therefore permits restrictions, but only if reasonable and in the public interest.
18. (C) The phrase 'Notwithstanding anything in article 301 or article 303' means Article 304 operates despite those Articles. Thus the State powers under Article 304 are exercisable even if Articles 301 or 303 would otherwise limit them.
19. (B) The proviso states: 'no Bill or amendment for the purposes of clause (b) shall be introduced or moved in the Legislature of a State without the previous sanction of the President.' This makes prior Presidential sanction a requirement before introduction or moving.
20. (B) The proviso explicitly requires 'previous sanction of the President' before a Bill or amendment 'for the purposes of clause (b) shall be introduced or moved' in the State Legislature, so the sanction is required prior to introduction or moving, and is not limited to either step alone.
21. (A) The provision states: "Nothing in articles 301 and 303 shall affect the provisions of any existing law except in so far as the President may by order otherwise direct." Thus Articles 301 and 303 do not affect existing laws except as the President may order otherwise.
22. (C) Article 305 states: "nothing in article 301 shall affect the operation of any law made before the commencement of the Constitution (Fourth Amendment) Act, 1955, in so far as it relates to, or prevent Parliament or the Legislature of a State from making any law relating to, any such matter as is referred to in subclause (ii) of clause (6) of article 19." Therefore the quoted protection for pre-1955 laws is given directly in the text.
23. (B) The provision explicitly says: "nothing in article 301 . . . prevent Parliament or the Legislature of a State from making any law relating to, any such matter as is referred to in subclause (ii) of clause (6) of article 19." Thus Article 301 does not prevent either Parliament or State Legislatures from making such laws.
24. (D) Article 305 provides: "Nothing in articles 301 and 303 shall affect the provisions of any existing law except in so far as the President may by order otherwise direct." This shows the President may by order direct otherwise regarding the operation of existing laws under Articles 301 and 303.
25. (B) The text first saves existing laws from Articles 301 and 303 generally, but the second clause says specifically: "nothing in article 301 shall affect the operation of any law made before the commencement of the Constitution (Fourth Amendment) Act, 1955..." Thus the second saving is expressly linked to Article 301, not Article 303.
26. (A) Article 307 states that "Parliament may by law appoint such authority... for carrying out the purposes of articles 301, 302, 303 and 304." Thus Parliament is empowered to appoint such an authority. The provision does not mention declaring restrictions, amending those articles directly, or delegating the legislative power to states.
27. (C) The text of Article 307 expressly refers to "the purposes of articles 301, 302, 303 and 304." Therefore the authority is to be appointed for those four specifically listed articles.
28. (D) Article 307 provides that Parliament may "confer on the authority so appointed such powers and such duties as it thinks necessary." This indicates Parliament, by law, determines the powers and duties.
29. (B) Article 307 begins with "Parliament may by law appoint such authority..." The use of 'may' shows that the appointment is permissive/discretionary and not an absolute obligation imposed on Parliament by this provision.
30. (B) Article 307 explicitly says Parliament may "confer on the authority so appointed such powers and such duties as it thinks necessary," which means Parliament has discretion to decide what powers and duties to confer. The provision does not require Parliament to confer all powers, nor does it leave that decision to the authority or the judiciary.