2nd PUC Business Studies Important Questions Chapter 12 Consumer Protection

Karnataka 2nd PUC Business Studies Important Questions Chapter 12 Consumer Protection

I. One Mark Questions and Answers

Question 1.
Who is a Consumer?
Answer:
A person who uses a product or a person who consumes a product.

Question 2.
When Consumer’s Rights Day observed?
Answer:
15th March of every year.

Question 3.
State any one consumer right.
Answer:
Right to safety.

Question 4.
Name any one consumer grievances redressal agency.
Answer:
State Commission.

Question 5.
State any one remedy available to the Consumer under the Act.
Answer:
To pay compensation for defective and irreplacable goods.

Question 6.
State any one Consumer Responsibilities
Answer:
Awareness about the rights.

Question 7.
State any one reason for consumer protection.
Answer:
The consumers are ignorant and not aware of their rights, so they cannot raise their voice against the exploitation. Therefore there is a need for consumer protection.

Question 8.
State the monetary limit for claim under the District Forum.
Answer:
Claim should not exceed Rs.20 lakhs.

Question 9.
State the monetary limit for claim under the State Forum.
Answer:
Here the claim exceeds Rs.20 lakhs but not more than Rs. 1 crore.

Question 10.
State the monetary limit for claim under the National Forum.
Answer:
Above Rs. 1 crore.

Question 11.
When was the Consumer Protection Act enacted?
Answer:
In the year 1986.

Question 12.
Who is the king of the Market?
Answer:
Consumer is the king of the market.

Question 13.
What do all marketing activities aim at?
Answer:
Marketing activities aim at satisfying consumer needs and wants.

Question 14.
Mention any one of the malpractices done by businessmen.
Answer:
Adulteration

Question 15.
What do you mean by ‘Caveat Emptor’?
Answer:
Let the Buyer Beware.

Question 16.
What do you mean by ‘Caveat Venditor’?
Answer:
Let the Seller Beware.

Question 17.
Name the act which protects the rights of Consumer.
Answer:
The Consumer Protection Act of1986.

Question 18.
What is Consumer Protection?
Answer:
It refers to protection of the rights of the consumer.

Question 19.
Mention any one Right of Consumer.
Answer:
Right to Safety.

Question 20.
Name any one of the Consumer Grievance Redressal Agencies. District Consumer Disputes Redressal
Answer:
Agency.

Question 21.
What is the span of period for an unsatisfied party to appeal in the higher court in each of the 3 forums.
Answer:
Within 30 days of order given by each forum

Question 22.
Which is the last resort for an unsatisfied party?
Answer:
Supreme Court.

II. Two Marks Question and Answers

Question 1.
Define Consumer?
Answer:
The Consumer Protection Act of 1986 defines consumer as, ‘One buys goods or hires or avails service for some consideration that is paid or payable’.

Question 2.
Name any two consumer grievances redressal agencies.
Answer:
State Commission and National Commission.

Question 3.
List any two importance of consumer protection.
OR
Mention any two needs of consumer protection.
Answer:

1. Consumer’s ignorance: The consumers are ignorant and not aware of their rights, so they cannot raise their voice agains the exploitation.
2. The long-term interest of Business: Business units are bound to protect the consumer interest by providing better quality goods and services at reasonable prices, for their long-term survival.

Question 4.
State the composition of members of National Commission.
Answer:
A National Commission consists of a committee of five persons – a President and four members including one woman member, who are being nominated by the Central Government for a term of five years.

Question 5.
Write any two remedies available to the aggrieved consumer as per the Act.
Answer:
(a) To remove the defect in the product.
(b) To replace the goods.

Question 6.
Mention any two persons who can file a complaint with redressal agencies.
Answer:
(a) A Consumer.
(b) State or Central Government.

Question 7.
Who is a Consumer?
Answer:
A consumer is a person who buys a product for his personal use or for use of others without any intentions of monitory benefits.

Question 8.
What is Consumer Protection?
Answer:
It refers to protection of consumers against exploitation by manufacturers or traders.

Question 9.
Mention any two objectives of Consumer Protection Act of 1986.
Answer:
(a) To safeguard consumers against unfair trade practices.
(b) To provide quick and inexpensive redressal and grievances.

Question 10.
Mention any two rights of Consumers.
Answer:
(a) Right to Safety
(b) Right to be informed.

Question 11.
Mention any two Consumer Responsibilities.
Answer:
(a) Awareness of Rights
(b) A Consumer must be quality conscious.

Question 12.
Mention any two important pieces of information that should be there in a complaint.
Answer:
(a) Name, description and address of complainant.
(b) Name, description and address of other party.

Question 13.
What do you mean by Complaint?
Answer:
Complaint means any allegation in written form made by those who are eligible to file a complaint.

Question 14.
Mention any two Consumer
Answer:
Grievances Redressal Agencies under COPRA 1986.
(a) District Consumer Disputes Redressal Agency.
(b) State Consumer Disputes Redressal Agency.

Question 15.
State the composition of members of District Forum.
Answer:
(a) A President (a District Judge)
(b) Two members out of whom one should be women from the field of education, trade or commerce nominated by State Government.

Question 16.
State the composition of members of State Commission.
Answer:
(a) A President (a High Court Judge)
(b) Two members out of whom one should be women from the field of economics, commerce, law, accountancy, public affairs, administration etc., nominated by State Government.

Question 17.
State the composition of members of National Commission.
Answer:
(a) A President (a Supreme Court Judge)
(b) Four members including one women from the field of economics, commerce, law, accountancy, public affairs, administration etc., nominated by Central Government.

Question 18.
Mention any two remedies available to the Consumers.
Answer:
(a) To remove the defect in the product.
(b) To return the price of the goods.

III. Five Marks Questions and Answers

Question 1.
Explain any five consumer rights.
Answer:
(a) Right to Safety: A right to be protected against the marketing ofhazardous products.
(b) Right to be informed: A right to information like price, level of purity, quality, quantity and usefulness of the product.
(c) Right to Choose: The Sellers cannot force consumers to buy certain products; they have the right to choose the best from the alternatives thatare available in the market.
(d) Right to be heard: The right to exercise the principles of natural justice i.e, the right to being heard of appropriate forums.
(e) Right to Seek Redressal: It implies that consumers should get fair treatment of their claim and compensation for any action of cheating by businessman.
(f) Right to Consumer Education: It suggests that the consumers must be educated about their rights.

Question 2.
Explain any 5 Consumer Responsibilities.
Answer:
(a) A consumer must have adequate information about his rights while purchasing a product.
(b) A consumer should be fully aware of price, quality, utility of the products.
(c) A consumer must file a complaint in case of any defect in the product.
(d) Every consumer should demand for cash bills, receipts for the purchase they make.
(e) A consumer must compare the product and check whether it is similar to that which was promoted in the advertisement.
(f) A consumer should check the date of manufacture, expiry date, directions to use before using the product.
(g) A consumer should not be involved in the purchase of any illegal products.
(h) Consumer should form their own organisations to educate and protect their interest against the market malpractices.
(i) Consumers must avoid wasting of natural resources and protect the environment.
(j) A consumer should not buy any product in a hurry, he should be careful while purchasing the product.

Question 3.
Explain the importance of consumer protection.
Answer:
The importance of consumers proection is viewed from the view point of: a. Consumers and b. Business.
(a) From the view point of consumer, the consumer protection is necessary on the following grounds.

1. Consumers ignorance: The consumers are ignorant and not aware of their rights, so they cannot raise their voice against the exploitation. Therefore, it is necessary to educate them about their rights so as to achieve consumers protection.
2. Unorganised consumers: A the consumers are not organised, they are being exploited by the business community. Therefore, it is necessary for the consumers to get organised against exploitation;
3. Consumers exploitation: The consumers are widely exploited by the business community through unfair trade practices like adulteration, black – marketing, under weighment, deceptive advertisement etc. So it is important to protect them from such unfair trade practices.

(b) From the view point of business, the consumer protection is necessary on the following grounds.

1. Long term interest of Business: Business units are bound to protect the
   consumer interest by providing better quality goods and services at reasonable prices, for their long term survival.
2. Social responsibility: Acceptance of social responsibility
   towards consumers by restricting the unfair trade practices is also one of the important factors of consumer protection.
3. Government intervention: Government takes active interest in the welfare of consumers from time to time by bringing in necessary regultions. therefore it is advisable for the business concerns to voluntarily accept consumer protection.

Question 4.
State the features of District Forum.
Answer:
COPRA 1986 provides for establishment of a District Consumer Forum is each district by concerned State Government.

Features:
(a) Composition: Each District Forum consists of 3 persons in a committee; a President and two members out of whom one must bewomen nominated by State Government for 5 years term.

(b) Qualification: President should have the qualification to be a District Judge and the other two members should be eminent people from the field of education, trade and commerce.

(c) Powers: It will have the power of a Civil Court for enquiring into any complaint.

(d) Jurisdiction: The value of goods and services and compensation should not exceed Rs.20 lakhs.

(e) Redressal Proceedings: Agency can serve notice and ask for sample of defect products and samples are tested in labs.

(f) Remedy: If defect is found, the agency can direct the accused to

• Remove the defect
• Replace the product
• Return the price of the product paid by complainant
• Compensate for the loss suffered
• Discontinue the Unfair Trade Practices.

(g) Appeal: If both or any party is not satisfied with the verdict they can appeal to State Commission within 30 days from the date of order given by District Forum

Question 5.
State the features of State commission.
Answer:
Features:
COPRA 1986 provides for the establishment of a State Commission at state level situated at State capital.
(a) Composition: Each State Forum consists of 3 persons in a committee a President and two members out of whom one must be women nominated by State Government for 5 years term

(b) Qualification: President should have qualification equalent to High Court Judge members should possess adequate knowledge in the field of economics, commerce, law, accountancy, public affairs, administration etc.,

(c) Jurisdiction: The value of goods and services and compensation claim will be exceeding Rs.20 lakhs but not more than Rs. 1 Crore.

(d) Redressal Proceedings: Agency can serve notice and ask for samples for defect products and Samples are tested in laboratories.

(e) Remedy: If defect is found, the agency can direct the accused to

• Remove the defect in the product.
• Replace the product.
• Return the price of the product paid by the complainant.
• Compensate the loss suffered by consumer.
• Discontinue the Unfair Trade Practices. j) Appeal

If both or any party is not satisfied with the verdict, they can appeal to National Commission within 30 days from the date of order given by State Commission.

Question 6.
State the features of National Commission.
Answer:
COPRA 1986 provides for the establishment of a National Commission at National level to be situated in the capital of thecountry.

Features:
(a) Composition: A National Commission consists of a committee of 5 persons, a President and four members among them one must be women nominated by Central Government for a term of 5 years.

(b) Qualification: President should have qualification equilent to Supreme Court Judge and members should possess adequate knowledge in the field of economics, commerce, law, accountancy, public affairs, administration etc.,

(c) Jurisdiction:

• The value of goods and services and compensation of claim will be exceeding one crore.
• Appeals against the orders of any State Commission.

(d) Redressal Proceedings
Agency can serve notice to ask for samples of defect products and samples will be tested in laboratories.

(e) Remedy: If defect is found the agency can direct the accused to

• Remove the defect in the product.
• Replace the product.
• Return the price of the product paid by the complainant.
• Compensate the loss suffered by consumer.
• Discontinue the Unfair Trade Practices.

(f) Appeal: If both or any party is not satisfied with the verdict, they can appeal to supreme court for more favourable justice within 30 days ofthe order given by National Commission.

Question 7.
What are the remedies available to a consumers as per Consumer Protection Act.
Answer:
(a) To remove the defect in the product.
(b) To replace the goods.
(c) To return the price ofthe goods
(d) To pay the compensation.
(e) To discontinue the unfair trade practices.
(f) Not to offer hazardous goods for sale.
(g) To seize the hazardous goods.

IV. Ten Marks Questions and Answers

Question 1.
Explain any five consumer rights and five consumer responsibilities.
Answer:
Five consumer rights.
(a) Right to Safety: A right to be protected against the marketing ofhazardous products.
(b) Right to be informed: A right to information like price, level of purity, quality, quantity and usefulness of the product.
(c) Right to Choose: The Sellers cannot force consumers to buy certain products; they have the right to choose the best from the alternatives that are available in the market.
(d) Right to be heard: The right to exercise the principles of natural justice i.e, the right to being heard of appropriate forums.
(e) Right to Seek Redressal: It implies that consumers should get fair treatment of their claim and compensation for any action of cheating by businessman.
(f) Right to Consumer Education: It suggests that the consumers must be educated about their rights.

Consumer Responsibilities:
(a) A consumer must have adequate information about his rights while purchasing a product.
(b) A consumer should be fully aware of price, quality, utility of the products.
(c) A consumer must file a complaint in case of any defect in the product.
(d) Every consumer should demand for cash bills, receipts for the purchase they make.
(e) A consumer must compare the product and check whether it is similar to that which was promoted in the advertisement.
(f) A consumer should check the date of manufacture, expiry date, directions to use before using the product.
(g) A consumer should not be involved in the • purchase of any illegal products.
(h) Consumer should form their own organisations to educate and protect their interest against the market malpractices.
(i) Consumers must avoid wasting of natural resources and protect the environment.
(j) A consumer should not buy any product in a hurry, he should be careful while purchasing the product.

Question 2.
Explain the features of District Forum and State Commission.
Answer:
COPRA 1986 provides for establishment of a District Consumer Forum is each district by concerned State Government.

Features:
(a) Composition: Each District Forum consists of 3 persons in a committee; a President and two members out of whom one must bewomen nominated by State Government for 5 years term.

(b) Qualification: President should have the qualification to be a District Judge and the other two members should be eminent people from the field of education, trade and commerce.

(c) Powers: It will have the power of a Civil Court for enquiring into any complaint.

(d) Jurisdiction: The value of goods and services and compensation should not exceed Rs.20 lakhs.

(e) Redressal Proceedings: Agency can serve notice and ask for sample of defect products and samples are tested in labs.

(f) Remedy: If defect is found, the agency can direct the accused to

• Remove the defect
• Replace the product
• Return the price of the product paid by complainant
• Compensate for the loss suffered
• Discontinue the Unfair Trade Practices.

(g) Appeal: If both or any party is not satisfied with the verdict they can appeal to State Commission within 30 days from the date of order given by District Forum

Features:
COPRA 1986 provides for the establishment of a State Commission at state level situated at State capital.
(a) Composition: Each State Forum consists of 3 persons in a committee a President and two members out of whom one must be women nominated by State Government for 5 years term

(b) Qualification: President should have qualification equalent to High Court Judge members should possess adequate knowledge in the field of economics, commerce, law, accountancy, public affairs, administration etc.,

(c) Jurisdiction: The value of goods and services and compensation claim will be exceeding Rs.20 lakhs but not more than Rs. 1 Crore.

(d) Redressal Proceedings: Agency can serve notice and ask for samples for defect products and Samples are tested in laboratories.

(e) Remedy: If defect is found, the agency can direct the accused to

• Remove the defect in the product.
• Replace the product.
• Return the price of the product paid by the complainant.
• Compensate the loss suffered by consumer.
• Discontinue the Unfair Trade Practices.

(f) Appeal: If both or any party is not satisfied with the verdict, they can appeal to National Commission within 30 days from the date of order given by State Commission.

Question 3.
Explain the features of National Commision.
Answer:
COPRA 1986 provides for the establishment of a National Commission at National level to be situated in the capital of thecountry.

Features:
(a) Composition: A National Commission consists of a committee of 5 persons, a President and four members among them one must be women nominated by Central Government for a term of 5 years.

(b) Qualification: President should have qualification equilent to Supreme Court Judge and members should possess adequate knowledge in the field of economics, commerce, law, accountancy, public affairs, administration etc.,

(c) Jurisdiction:

• The value of goods and services and compensation of claim will be exceeding one crore.
• Appeals against the orders of any State Commission.

(d) Redressal Proceedings
Agency can serve notice to ask for samples of defect products and samples will be tested in laboratories.

(e) Remedy: If defect is found the agency can direct the accused to

• Remove the defect in the product.
• Replace the product.
• Return the price of the product paid by the complainant.
• Compensate the loss suffered by consumer.
• Discontinue the Unfair Trade Practices.

(f) Appeal: If both or any party is not satisfied with the verdict, they can appeal to supreme court for more favourable justice within 30 days ofthe order given by National Commission.

Question 4.
As an aggrieved consumer, write a complaint to District Forum seeking redressal. Complaint to District Forum seeking redressal
Mangalore
Date…
Mr.X …. Complainant
Sharada Vihar
Mangalore – 575004
Vs
1. Proprietor
M/s Y & Co.
Shrinidhi Towers, Hampankatta,
Mangalore – 575001

2. Managing Director M/s Z. Ltd.
Oberoi Mall ,
Goregaon, Mumbai.
The Hon’ble President and
Members ofDistrict Form .
Mangalore

Dear sir,

Sub: Complaint regarding defective mixer grinder purchased on May 15th, 2018.
I wish to bring to your notice that the above mentioned appliance purchased on the said day abruptly stopped functioning on June 4th 2018. The matter was immediately reported to O.P. No. 1 who directed me to approach their service center for assessing the fault and satisfying the same. The rectified appliance was returned on June 14th 2018, the receipt of which is enclosed for your action.

On using the mixer grinder immediately after repairs it broke down once again after running for hardly five minutes. As a result, a written complaint was made to O.P No. 1 and O.P.2, copies of which are furnished for your action.

Despite repeated reminders and follow up, no action has been taken by either of the opposite parties. In view of the same, I appeal to you to direct the opposite parties to either replace the mixer grinder or to refund the cost of the same along with damages for the physical strain and mental agony suffered by me and my family.

I request you consider my complaint about immediate action.

Thanking you,
Yours sincerely
Mr.X

Enel: (a) Purchase receipt of mixer grinder
(b) Receipt of the Service Centre
(c) Written complaints to O.P. No. 1 and O.P. No.2.

Question 5.
Which consumer right gives the business firm freedom to set up their own consumer service and grievance cell?
Answer:
Right to be heard.

Question 6.
Mallika wants to buy an iron. As an aware customer how can she be sure about the quality of iron?
Answer:
Through ISI mark on the iron.

Question 7.
Anil filed a case against ‘Domestic Cooling ltd.’ in the ‘District Forum’, but was not satisfied with the orders of the District Forum. Where can he appeal further against the decisions of District Forum?
Answer:
Anil can further appeal against the decision of District Forum in the ‘State Commission’ within 30 days.

Question 8.
Vathsala wants to buy ghee. How can she check the quality of product?
Answer:
Through ‘ AGMARK’ symbol.

Question 9.
Jayaram filed a case against ‘Volvo Ltd.’ in the ‘State Commission’. But he was not satisfied with the orders of the ‘State Commission’. Name the authority to which he can appeal against the decisions of ‘State Commission’,
Answer:
Jayaram can further appeal in ‘National Commission’.

Question 6.
Can a consumer file complaint in consumer court without having cash memo?
Answer:
No,without cash memo he cannot file a complaint. Cash memo is the proof of the transaction.

Question 10.
Name any two consumer rights.
Answer:

1. Right to Safety
2. Right to Choice.

Question 11.
List any three consumer organizations in India.
Answer:

1. Consumer Guidance Society of India (Mumbai),
2. Common Cause (New Delhi),
3. Citizen Action Group (Mumbai)

Question 12.
Who is a consumer?
Answer:
According to Consumer protection Act, a consumer is:

1. One who buys goods or hires services.
2. Any use of such good or service with approval of buyer.
3. Anyone who bought the goods for earning livelihood.

Question 13.
Why is consumer protection required in India?
Answer:
Because of the following reasons:

• Poverty and unemployment
• Illiterate consumers
• Consumers are not organized.

Question 14.
Suggest any three remedies or reliefs available to consumer on his complaints.
Answer:

1. Removal of defects from the goods.
2. Replacement of the goods.
3. Refund of the price paid.

Question 15.
Can a consumer appeal against the judgement of National Commission?
If yes, than where?
Answer:
Yes, he can appeal in High Court or Supreme Court.

Question 16.
Who can file a complaint in consumer court?
Answer:

1. Any Consumer;
2. Any Registered Consumers’Association;
3. The Central Government or any State Government;
4. One or more consumes on behalf of numerous consumers having the same interest; and
5. A legal heir or representative of a deceased consumer.

Question 17.
Explain the following as ways and means of consumer protection: (i) Consumer Awareness (ii) Government.
Answer:

1. Consumer Awareness: It is not easy to exploit an educated and well aware consumers. Consumer must be well aware about his rights, responsibilities and relief available to him under Consumer ProtectionAct.
2. Government: The government of India has framed a set of laws and legislations to protect the interests of consumers and the most important act framed by the Government is Consumer Protection Act, 1986. This act has provided three-tier redressal agencies i.e., District Forum, National Commission anil State Commission.

Question 18.
Radhika wants to buy a packet of juice. As an aware customer, how can she be sure about the quality of juice she plans to buy?
Answer:
She should check the ‘FPO’ (Food Product Order) symbol on the product.

Question 19.
When or under what circumstances the complaints can be filed?
Answer:
Complaint can be filed and compensation can be claimed by the consumer with respect to-
(a) Fraudulent practices of traders and manufacturers.
(b) If goods are defective.
(c) If there is any deficiency in the services hired.

Question 20.
Name two consumer rights defined by UNO.
Answer:

1. Right to Basic Need.
2. Right to Healthy Environment.

Question 21.
Rajeeva, a vegetarian was traveling in Rajdhani Express was served food and later he found out that it had a non-vegetarian content. His sentiments were hurt. Will Rajiv be able to claim compensation, which right of the consumer is violated?
Answer:
Yes, Rajeeva will be able to claim the compensation as the railways have violated the Right to Information.

Exercises

Short Answer Type Questions

Question 1.
Explain the importance of consumer protection from the point of view of business.
Answer:
A business cannot survive without paying attention on protecting – the consumers interest and adequately satisfying them.

This is important because of the following reasons
1. Long-Term Interest of business firms should aim at long term profit maximisation through customer satisfaction. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus help in increasing the customer base of business.

2. Business uses Society’s Resources Business organisation uses resources which belong to the society, thus they have a responsibility to supply such products and render such services which are in public interest.

3. Social Responsibility A business has social responsibility towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders; their interest has to be well taken care of.

4. Moral Justification The moral duty of any business is to take care of consumer’s interest and securing them from exploitation. Thus, a business must avoid insecure loss, exploitation and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising hoarding, black marketing etc.

5. Government Intervention A business engaging in any form of exploitation time trade practices would invite government intervention or action. Thus, it is advisable that business organisation voluntarily resort to such practices, where the customers need and interests will be taken care of.

Question 2.
Enumerate the various Acts passed by the Government of India which help in protecting the consumer’s interest?
Answer:
The Indian legal framework consists of a number of regulations which provide protection to consumers.

Some of these regulations are as under
1. The Consumer Protection Act, 1986: The Act provides safeguards to Consumers against defective goods, deficient services, unfair trade practices etc.

2. The Contract Act, 1982: The Act lays down the conditions in which the promises made by parties to a contract will be binding on each other.

3. The Sale of Goods Act, 1930: The Act provides some safeguards and reliefs to the buyers of the goods in case, the goods purchased do not comply with express or implied conditions or warranties.

4. Essential Commodities Act, 1955: The Act alms at controlling, production, supply, distribution and price of essential commodities.

5. The Agricultural Produce Act, 1937: The Act prescribes grade standards for agricultural commodities and livestock products.

6. The Prevention of Food Adulteration Act, 1954: The Act aims to check adulteration of foods articles and ensure their purity, so as to maintam public health.

7. The Standards of Weights and Measures Act, 1976: It provides protection to consumers against the malpractice of under- weight or under-measure.

8. The Trade Marks Act, 1999: The Act prevents the use of fraudulent marks on products and thus provides protection to the consumers against such products.

9. The Competition Act, 2002: The Act provides protection to the consumers In case 01 practices adopted by business firms which hamper competition in the market.

10. The Bureau of Indian Standard Act, 1986: The bureau has two major activities: formulation of quality standards for goods and their certification through the BIS certification scheme. The bureau has also set up a grievance cell, where consumers can make a complaint about quality of products carrying the 1SI mark.

Question 3.
What are the responsibilities of a consumer?
Answer:
A consumer should keep in mind the following responsibilities while purchasing, using and consuming goods and services

1. Be aware about various goods and ‘ services available in the market, so that an intelligent and wise choice can be made.
2. Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods. FPO mark on food products and Hallmark on jewellery etc.
3. Learn about the risks associated with products and services.
4. Read labels carefully, so as to have information about prices, weight, manufacturing and expiry dates etc.
5. Assert yourself to get a fair deal.
6. Be honest in your dealings. Choose only from legal goods and services.
7. Ask for a cash-memo on purchase of goods and services. This would serve as a proof of the purchase made.
8. File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed.
9. Form consumer societies which would play an active part in educating consumers and safeguarding their interests
10. Respect the environment, avoid waste, littering and contributing to pollution.

Question 4.
Who can file a complaint in a consumer court?
Answer:
A complaint can be made by

1. Any consumer.
2. Any registered consumer’s association.
3. The Central Government or any State Government.
4. One or more consumers. On behalf of numerous consumers having the same interest.
5. A legal heir or representative of a deceased consumer.

Question 5.
What kind of cases can be filed in a – state commission?
Answer:
A complaint can be made to the appropriate state commission when the value of the goods and services, along with compensation claim exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore. The appeals against the orders of a District Forum can also be filed before the state commission.

Question 6.
Explain the role of consumer organisations and NGOs in protecting and promoting consumers’ interest.
Answer:
Consumer organisations and NGOs , perform several functions for the protection and promotion of interest of consumers.

In India, these associations are performing lots of functions some of them are
1. Educating the general public about consumer rights by organising training programmes, seminars and workshops.

2. Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.

3. Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.

4. Encouraging consumers to strongly protest and take an action against unscrupulous, exploitation and unfair trade practices of sellers.

5. Providing legal assistance to consumers by providing aid, legal advice etc. in seeking legal remedy.

6. Filing complaints in appropriate consumer courts on behalf of the consumers.

7. Taking an Initiative in filing cases in consumer court in the interest of the general public, not for any individual.

Long Answer Type Questions

Question 1.
Explain the rights and responsibilities of a consumer.
Answer:
The Consumer Protection Act provides six rights to consumers.

They are as follows
1. Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life, e.g., sometimes we purchased the food items of low quality which causes severe problems. Thus, in this case, we should purchased good quality and FPO labelled products,

2. Right to be informed: The consumer has a right to have complete information about the product, which he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use etc. Under the legal framework of India manufactures have to provide such information on the package and label of the product.

3. Right to choose: The consumer has the freedom to choose from a variety of products. The marketers should offer a wide variety of products and allow the consumer to make a choice and choose the product which is most suitable.

4. Right to be Heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells.

5. Right to Seek Redressal: The Consumer Protection Act provides a number product, of reliefs to the removal of defect consumer including replacement of the in the product, compensation paid for any loss or injury suffered by the consumer etc.

6. Right to Consumer Education: The consumer has a right to acquire knowledge about products. He should be aware about his rights and the reliefs available to him in case of a product, service falling short of his expectations Many consumer organisations and some enlightened businesses are taking an active part in educating consumers in this respect.

Consumer Responsibilities
A consumer must be aware about these responsibilities while purchasing, using and consuming goods and services

1. Consumer must be aware of all their rights.
2. Consumer must be careful while purchasing a product.
3. He should file complaint for the redressal of genuine grievances.
4. Consumer must buy a standardised good.
5. He should ask for a cash-memo on purchase of goods and services.

Question 2.
What are various ways in which the objective of consumer protection can be achieved? Explain the role of consumer organisations and NGOsin this regard?
Answer:
There are various ways in which the objective of consumer protection can be achieved
1. Self-Regulation by Business Socially responsible firms follow ethical standards and practices in dealing with their customers. Many firms have set up their customer service and grievance cells to redress the problems and grievances of their consumers.

2. Business Associations the associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Conference of Indian Industries (CII) have laid down their code of conduct which lays down for their members the guidelines in their dealings with the customers.

3. Consumer Awareness A consumer, who is well informed about his rights and the reliefs, would be in a position to raise his voice against any unfair trade practices or exploitation.

4. Consumer Organisations Consumer organisations plays an important protecting role in educating consumers about their rights and them. These organisations can force business firms to avoid malpractices and exploitation of consumers.

5. Government the Government can protect the interests of the consumers by enacting various legislations. The legal framework in India encompasses various legislations which provide protection to consumer, the most important of these regulations is the Consumer Protection Act, 1986. The Act provides for a three- tier machinery at the District, State and National levels for redressal of consumer grievance.

Question 3.
Role of Consumer Orgs and NGOs
Answer:
Consumer organisation and NGOs perform several functions for the protection and promotion of interest of consumers.

In India, these associations are performing lots of functions some of them are
1. Educating the general public about consumer rights by organising training programmes, seminars and workshops.

2. Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliels available and other matters of interest.

3. Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.

4. Encouraging consumers to strongly protest and take an action against unscrupulous, exploitation and unfair trade practices of sellers.

5. Providing legal assistance to consumers by providing aid, legal advice etc. in seeking legal remedy.

6. Filing complaints in appropriate consumer courts on behalf of the consumers.

7. Taking an initiative in filing cases in consumer court in the interest of the general public, not for any individual.

Question 4.
Explain the redressal mechanism available to consumers under the Consumer Protection Act, 1986?
Answer:
For the redressal of consumer grievances, the Consumer Protection Act provides for setting up of three-tier enforcement machinery at the District, State and the National levels.
1. District Forum: A complaint can be made to the appropriate District Forum when the value of goods or services, along with the compensation claimed, does not exceed Rs. 20 lakhs. In case the aggrieved party is not satisfied With the order of the District Forum, he can appeal before the State Commission within 30 days.

2. State Commission: A complaint can be made to the appropriate State Commission when the value of the goods or services, along with the compensation claimed. Exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore. The appeals against the orders of District Forum can also be filed before the State Commission. In case the party is not satisfied with the order of the State Commission, he can appeal before the National Commission within 30 days of the passing of the order by State Commission.

3. National Commission: Acomplaint can be made to the National Commission when the value of the goods or services, along with the compensation claimed exceeds Rs. 1 crore. The appeals against the orders of a State Commission can also be filed before the National Commission. An order passed by the National Commission in a matter of its original justification is appealable before the Supreme Court. This means that only those appeals, where the value of goods+services in question, along with the compensation claimed, exceeded Rs. 1 crore and where the aggrieved party was not satisfied with the order of the National Commission, can be taken to the Supreme Court of India.

True or False/State whether the following statements are true or false.

Question 1.
Consumer protection has a moral justification for business.
Answer:
True

Question 2.
In addition to rights, a consumer also has some responsibilities.
Answer:
True

Question 3.
A complaint can be made to a District Forum when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 20 lakhs.
Answer:
False

Question 4.
The Consumer Protection Act provides for six consumer rights.
Answer:
True

Question 5.
IST is the quality certification mark used in case of food products.
Answer:
False

Question 6.
Under the Consumer Protection Act, a complaint can be filed by a consumer for a defective good and also for deficiency in service.
Answer:
True

Case Problems:

Now, filing complaint is just, a click away. Filing a complaint in a consumer court’s going to get a lot easier by the end of this year, virtually. No matter which part of the country you’re in, it’s going to happen at the click of a mouse.

The project, called ‘Confonet ‘ (Computerisation and Computer Networking of Consumer Fora), is being executed on a turnkey basis by the National Informatics Centre (NIC).

“Online registration of complaints, the government hopes, will promote e- govemance, transparency, efficiency and streamlining of consumer fora”, said an official in the consumer affairs ministry. OfRs. 48.64 Crore set aside for the project, the government has released Rs. 30.56 crore so far, the official added.

“Besides software development and testing, networking and project implementation, integration and site preparation, it will include purchase of hardware for all the 583 District fora, 35 state commissions and the National Commission”, the official said.

At present, computer systems and system software have been delivered to 25 state commissions and 300 District fora-never mind the fact that it’s sometimes along wait before the hardware is finally unpacked and set up in some of the districts. Meanwhile, training of staff, sometimes in the classroom and sometimes through e-leaming sessions, are in foil swing.

“But just setting up an online complaint filing system won’t ensure a strong consumer protection movement in the country for that we’re working on GenNext and the best way to do that is to go to schools”, the official said.

The government is, therefore, involving school children to form consumer clubs, so as to involve them in various consumer welfare activities.

Part of the funding for running the club is to come from various state governments, with an equally matching grant from the Centre. However, a number of state governments are yet to sanction the fund – some of these include Uttar Pradesh, Madhya Pradesh and Kerala

Question 1.
What new measure is the ministry of consumer affairs taking to make filing a complaint easy?
Answer:
Online registration of complaints has been initiated by the ministry of consumer affairs to make filing of complaint easy.

Question 2.
What role can you as a student play to contribute to the cause of consumer protection?
Answer:
A student can play an active role in bringing out an awareness campaign on ‘Consumer Protection’.

1. Special assemblies can be organised to show the display of consumer rights and responsibilities
2. When school organises any exhibition the commerce students can put a stall and give demonstration on responsibilities of a consumer,
3. The Biology and Chemistry laboratories can be used for testing adulterated goods, (e.g milk, paneer, spices etc.).
4. Essay writing competitions, debate competition and quiz can be organised to promote the awareness on consumer protection,
5. Encourage students to boycott goods/ eatables which are adulterated or defective in school canteen.
6. To set up voluntary complaint centre for consumer guidance and counselling,

Question 3.
What scenario of consumer protection do you foresee when the measures proposed in the above news report are implemented?
Answer:
With the implementation of online registration, educated and technology friendly consumer will gain but in my opinion the unaware, ignorant and simple consumers who still are far away from e-govemance would stand in need of the 3 forums working efficiently and effectively. Thus both the systems should work parallel, hand in hand to protect the interests of different types of consumers.

2nd PUC Business Studies Important Questions