Why are rules and regulations required in the market-place? Give three reasons.

Rules and regulations were formulated out of dissatification of the consumers as many unfair practices were being indulged in by the sellers. There was no legal system available to consumers to protect them from exploitation in the market place. For a long time, when a consumer was not happy with a particular brand product, he generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.

It is required for promoting and protecting the interests of consumers against unethical and unfair trade practices such as rampant food shortages, hoarding, black marketing, adulteration of food and edible oil. It is required to look into the malpractices in ration shops and overcrowding in the road pasenger transport.