We have given these Business Studies Class 12 Important Questions Chapter 12 Consumer Protection to solve different types of questions in the exam. Go through these Consumer Protection Class 12 Important Questions and Answers & Previous Year Questions to score good marks in the board examination.

Important Questions of Consumer Protection Class 12 Business Studies Chapter 12

Question 1.
Give the constitution of the District Consumer, Dispute Redressal Forum under the Consumer Protection Act, 1986. (CBSE 2018)
Or
How many members are required to constitute ‘District consumer dispute redressal forum’? (Comportment 2014)
Answer:
The District Fomm consists of a President and two other members, one of whom should be a woman.

Question 2.
Manuj bought a packet of chips from a local shopkeeper and found that the ingredients given on the label were not legible. He complained about it to the company. The company sent a written apology stating that they will make sure that existing packets are withdrawn from the market and new packets with legible labels are soon made available. State the consumer right which Manuj exercised. (Delhi 2016)
Answer:
Right to seek redressal

Financial Markets Class 12 Important Questions and Answers Business Studies Chapter 10

Question 3.
Suman bought a box of cheese of a reputed brand from a local shopkeeper. On opening the box she found a piece of stone in the cheese. She reported the matter to the shopkeeper who forwarded her complaint to the concerned company. Within a week the representative of the company visited Suman’s residence with an apology and as a replacement offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her state the consumer right which Suman exercised. All India 2016
Answer:
Right to seek redressal

Question 4.
Manvendra always went to a specific shop to buy all consumable and non-consumable goods. In this shop variety of products of different brands were displayed nicely and the sales person available also gave good sales presentation if required. But this shop was quite far off from his residence. His friend Annant always wondered why Manvendra wastes so much time in going to that shop where as there were many big brand shops situated near his residence having consumable and non-consumable goods.
Annant asked Manvendra the reason of going to that particular shop. Manvendra told that he was exercising one of his ‘rights’ which he could not exercise in near-by big brand shops.
State consumer’s right which Manvendra had exercised. (Foreign 2016)
Answer:
Manvendra had exercised ‘Right to choose’.

Question 5.
On the eve of Diwali, Ravi purchased two kilograms of sweets from Nandan Sweets.
On consumption of sweets, his wife fell sick and was to be hospitalised. Ravi wanted to fill a case in the consumer forum but could not do so because he did not have any proof of buying the sweets from Nandan Sweets. Name the document the Ravi could have obtained for filing the complaint in the consumer forum. (Comportment 2015)
Answer:
A cash memo would have helped him file a complaint in the consumer forum.

Question 6.
On Sonika’s birthday her mother gave her a pair of gold earrings. After one month Sonika observed that the earrings are losing their shine. She checked the mark on the earrings and found that it was not a proper Hallmark and her mother had been cheated by the shopkeeper. So, she filed a complaint in the district forum which rejected it. Not satisfied by the decision of the district forum, she was very much disturbed and after two months decided to appeal further.
Can Sonika appeal against the decision of the district forum? Give reason in support of your answer. (Delhi 2015)
Answer:
Yes, Sonika can appeal against the decision in the State Commission, as she is dissatisfied with the decision of District forum.

Question 7.
On which type of products is ISI mark used? (Comportment 2014)
Answer:
ISI is the standardisation mark for electrical appliances and electronic goods.

Question 8.
‘The consumer has a right to acquire knowledge and be a well informed consumer throughout life’. State what type of knowledge is required by the consumer in the above stated right. (Comportment 2014)
Answer:
The consumer has a right to acquire knowledge about his rights, responsibilities and the reliefs available to him in case of a product or service falling short of his expectations.

Question 9.
Besides a ‘consumer’, name any two parties who can file a complaint before the appropriate consumer forum. (Comportment 2014)
Or
Name any two parties who can fill a complaint under the Consumer Protection Act, 1986 on behalf of the consumer. (Delhi 2012)
Answer:
Two parties who can file a complaint under the Consumer Protection Act 1986 on behalf of consumer are:

  • Any registered consumer association
  • The Central or any State Government

Financial Markets Class 12 Important Questions and Answers Business Studies Chapter 10

Question 10.
Pragya bought an iron of a reputed brand for ₹ 1,500 but it caused an electric shock while it was being used. Pragya wants to exercise her ‘Right’. Identify the ‘Right’ under which she can be protected. (Delhi 2013)
Answer:
Right to safety

Question 11.
Under three-tier machinery where can a legal heir or representative of a deceased consumer file a complaint when the compensation claimed is ₹ 25 lakh.(Delhi 2013)
Answer:
State Commission (Claim limit ₹ 20 lakh to ₹ 1 crore).

Question 12.
Your mother purchased a washing machine for ₹ 10,000 from an authorised dealser of the manufacturer with an oral guarantee that the machine will be replaced with a new one if any of its parts becomes defective with three months from the date of purchase. The motor of the machine was burnt within 15 days of its purchase. On complaining, the seller refused to replace the machine. Name the redressal agency under the Consumer Protection Act where your mother can file the complaint. (Delhi [C] 2012)
Answer:
She can file a case in District Forum for a claim limit upto ₹ 20 lakh.

Question 13.
Give any one responsibility of a consumer in addition to obtaining a cash receipt while purchasing a washing machine. (All India 2012)
Answer:
Buy only ISI certified washing machine as it provides quality assurance.

Question 14.
How can business associations act as a means of consumer protection? State. (Delhi 2012)
Answer:
Business Associations act as a means of consumer protection as they lay down guidelines for their members in dealings with the customers.

Question 15.
Give any one relief available to a consumer who suffers due to consumption of an expired date medicine. (Delhi 2012)
Answer:
Relief available to consumer is to refund the price paid for the medicine.

Question 16.
State how self regulation by business acts as a means of consumer protection. (All India 2012)
Answer:
Self regulation by business acts as a means of consumer protection by:

  • Establishing ethical standards and practices in . dealing with their consumers.
  • Setting up their customer service and grievance cells to redress the problems and grievances of their consumers.

Financial Markets Class 12 Important Questions and Answers Business Studies Chapter 10

Question 17.
State what is to be informed to the consumer under right to be informed. (Delhi [C] 2011)
Answer:
Right to be informed Every consumer has a right to be informed about the ingredients, date of manufacture, expiry date, directions for use, quantity, etc, to be put on the label of product. The right provides complete information to consumer about the product he intends to buy. The legal framework in India requires such information on the package and label of the product.

Question 18.
When can a consumer get more than one relief for a complaint? (All India 2011)
Answer:
If the Consumer Court is satisfied about the genuineness of the complaint, a consumer can get more than one relief for a complaint.

Question 19.
Which Act of Consumer Protection provides for the formation of ‘consumer protection councils’ in every district and the state of the country? (All India 2010; Delhi 2010)
Answer:
Consumer Protection Act, 1986.

Question 20.
Why is consumer protection important for consumers? Give any one reason. (All India 2010; Delhi 2010)
Answer:
Consumer protection is important from the view point of consumers, as it protects them from exploitative and unfair trade practices.

Question 21.
Why is consumer protection important for a businessman? Give any one reason. (All India 2010; Delhi 2010)
Answer:
Consumer protection is important for businessman because of long-term interest of business.

Question 22.
Which Act of Consumer Protection provides safety to consumers against deficient services? (All India 2010)
Answer:
The Consumer Protection Act, 1986 provides safety to consumers against deficient services.

Question 23.
Why should a consumer look for ISI mark on electrical goods? (Delhi 2010)
Answer:
The consumer should look for ISI mark on electrical goods because it gives an assurance that the product meets quality certifications.

Question 24.
As a responsible consumer, how will you ensure about the quality of a juice packet purchased by you? (Delhi (c) 2010)
Answer:
A person can check for FPO mark/standardisation mark which is granted to the processed food products which satisfy the specification and quality control requirements. Secondly, he/she can also check expiry date and storage condition of the juice packet.

Question 25.
Which kind of cases can be filed in the State Commission under the Consumer Protection Act, 1986? (Delhi to 2010)
Answer:
Those cases can be filed in the State Commission under the Consumer Protection Act, 1986 in which compensation claimed exceeds ? 20 lakh but does not exceed ₹ 1 crore.

Question 26.
Which cases can be filed in the National Commission under Consumer Protection Act, 1986. (All India 2010)
Answer:
Those cases can be filed in the National Commission under Consumer Protection Act, 1986 in which the value of the goods or services in question, along with the compensation claimed, exceed 11 crore.

Question 27.
Name any two Non-Governmental Organisations (NGOs) which are working in India to protect and promote the consumer interests. (All India 2010)
Answer:
The two Non-Governmental Organisations (NGOs) working in India to protect and Promote the consumer interests are:

  • Consumer Guidance Society of India (CGSI), Mumbai.
  • Voluntary Organisation in Interest of Consumer Education (VOICE), Delhi.

Financial Markets Class 12 Important Questions and Answers Business Studies Chapter 10

Question 28.
State any eight reliefs available to a consumer under the Consumer Protection Act, 1986. (All India 2019, 2014, 2013)
Or
State any three directions which can be issued by the consumer court to the opposite party if it is satisfied about the genuineness of the complaint. (Foreign 2016)
Or
State any eight reliefs available to a consumer under the provision of CPA, 1986. (Compartment 2014)
Answer:
The reliefs available to a consumer under the CPA, 1986 are:

  • To remove the defects in goods or deficiency in services.
  • To replace the defective product with a new one, free from any defect.
  • To refund the price paid for the product.
  • To pay punitive damages.
  • Not to offer hazardous goods for sale.
  • To cease manufacture of hazardous goods.
  • To pay adequate costs to appropriate party.
  • To Issue coffective advertisement, in place of misleading advertisement.

Question 29.
What is meant by a ‘consumer’ as per the provisions of Consumer Protection Act, 1986? (All India 2019, 2016)
Or
Give the definition of ‘Consumer’ as per CPA, 1986. (Comportment 2014)
Or
Explain any four points of importance of ‘consumer protection’ from the point of view of business. (All India 2015, Delhi 2013)
Or
State with the help of any four points, why is it important for a business to lay emphasis on consumer protection. (Compartment 2014)
Answer:
Under the Consumer Protection Act, 1986, the term ‘consumer’ has been defined as any person who buys goods or hires or avail any service for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment.
It also includes any user of such goods with the approval of the buyer or any beneficiary of services when such goods or services are availed of with the approval of the person concerned but does not include a person who avails such services for any commercial purpose.

Question 30.
State any eight responsibilities that a consumer should keep in mind while purchasing using and consuming goods and services. (All India 2019; Delhi 2014)
Or
State any six responsibilities of a consumer which should be kept in mind while purchasing the goods. (All India 2013)
Answer:
While purchasing, using and consuming goods and services, consumers have following responsibilities:

  • Be aware of different goods and services available.
  • Buy only standardised goods.
  • Learn about the various risks associated with products.
  • Read labels carefully.
  • Assert yourself to get into a fair deal.
  • Be honest in your dealings.
  • File complaint in appropriate forum.

Question 31.
What is meant by ‘Consumer Protection’? State any five points of importance of consumer protection from point of view of business. (All India 2019)
Or
Explain any two points of importance of consumer protection from the point of view of business. (Compartment 2018,2014, 2013; All India 2014)
Answer:
Consumer protection It refers to the steps taken to protect and promote the rights of consumers. Since long, consumers have been exploited in various ways. e.g. Adulteration, misleading, etc. In recent years, there has been increasing awareness among consumers about their rights.

A business must lay emphasis on consumer protection because of the following reasons:

  • Long-term interest of business It is in the long-term interest of business to satisfy their customers. Satisfied customers not only leads to repeated sales, but also helps in increasing the customer base.
  • Social responsibility It is the social responsibility of every business to take care of the interest and protection of its consumers.
  • Moral justification It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation.
  • Government intervention A business engaged in any form of exploitation would invite government intervention or action.

Question 32.
State any three points which highlight the importance of consumer protection from consumer’s point of view. (Compartment 2018, 2013; Delhi 2012)
Answer:
Importance of consumer protection from consumer’s point of view are:
(i) Consumer ignorance Due to widespread ignorance of consumers about their rights and reliefs available to them, they need to be made aware in this regard. Consumer protection provides information to the ignorant consumers regarding their rights and reliefs available to them.

(ii) Unorganised consumers Consumers need to be organised for safeguarding their interests. In developing countries like India, consumers are not organised. There are very few consumer organisations which are working to protect the interests of consumers. Consumer protection encourages establishment of more consumer organisations.

(iii) Widespread exploitation of consumers Consumers are exploited by unscrupulous, exploitative and unfair trade practices of sellers. They might be exploited by unfair trade practices like defective and unsafe products, ‘adulteration, hoarding, black marketing, etc. Consumers need protection against such unfair trade practices.

Financial Markets Class 12 Important Questions and Answers Business Studies Chapter 10

Question 33.
Himanshu purchased a new car from ‘Galaxy Motors’ for ₹ 25 lakh. He was offered free insurance for the first year and three free servicing to be availed after the car had covered 5,000 km, 10,000 km and 15,000 km respectively. When Himanshu took the car for the first free servicing, he was told that the car was not new and first service had already been availed on this car. He felt cheated and filed a complaint in the State Commission. Being not satisfied with the decision of the State Commission, after two months he decided to file and appeal against it.
Can Himanshu appeal against the decision of the State Commission? Give reason in support of your answer. (All India 2015)
Answer:
No, Himanshu cannot appeal against the decision of State Commission in the National Commission. Under the Consumer Protection Act, 1986 appeals against the order of State Commission can be filed in National Commission, within 30 days of the passing of the order and in this case Himanshu decides to file appeal against the decision of State Commission after 2 months.

Question 34.
Explain the following rights of a consumer as provided under Consumer Protection Act 1986: (Delhi 2015; All India 2014)
(i) Right to choose; and
(ii) Right to consumer education.
Answer:
(i) Right to choose A consumer has a right to choose from a wide variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices size, etc and allow the consumer to make a choice amongst them.

(ii) Right to consumer education The consumer has a right to acquire knowledge and to be a well informed consumer throughout life. Many consumer organisations and some business are actively educating consumers. He should be aware about his rights and the reliefs available to him in case of a product or service falls short of his expectations.

Question 35.
Explain the following Rights of Consumers:
(i) Right to safety;
(ii) Right to he heard. (All india 2014)
Answer:
(i) Right to safety A consumer has a right to be protected against goods and services which are hazardous to life and health.
For instance, electrical appliances which are manufactured with sub-standard products do not confirm to the safety norms, might cause serious injury. Thus, consumers are educated that they should use electrical appliances which are ISI marked, as this would be an assurance of such products meeting quality specifications.

(ii) Right to be heard A consumer has a right to file a complaint and to be heard in case of dissatisfaction with regard to a good Of a service. It is because of this reason that many enlightened business firms have set up their own consumer service centres and grievance cells. Many consumer organisations are also working towards this direction and helping consumers in redressal of their grievances.

Question 36.
How are consumer grievances redressed by the three-tier machinery under CPA, 1986? Explain. (Foreign 2014)
Answer:
The three-tier machinery under CPA, 1986 consist of District Forum, State Commission and the National Commission. A consumer can file a case in District Forum if the value of goods and services alongwith the compensation claimed, does not exceed ₹ 20 lakh, in the State Commission if the value of goods and services alongwith the compensation claimed is over ₹ 20 lakh but less than ₹ 1 crore, and in the National commission, if the value of goods and services alongwith the compensation claimed is above ₹ 1 crore.

On receiving the complaint, the District Forum/State Commission/National Commission shall refer the complaint to the party against whom the complaint is filed. If required, the goods or a sample, thereof, shall he sent for testing in a laboratory. The court shall pass an order after considering the test report knd hearing to the party against whom the complaint is filed.

Question 37.
Sumit purchased an ISI marked washing machine of a famous brand ‘MG’ from TG Electronics Ltd. The shopkeeper asked him to wait for two days for installation of the machine. His friend, Vivek, was very fond of experimenting with new electronic products. He told Sumit that there is no need to wait for the company’s representative to install the machine and that he could do it. So, both of them installed the machine without following the manufacturer’s instructions. Initially, the machine worked effectively and the wash was good. But after two days, the machine started stopping in between the wash cycle. Sumit and Vivek tried their best to start the machine but failed in their efforts. Sumit, therefore, approached TG Electronics Ltd., which refused to provide any service on the plea that the installation of the machine was not done by the company.
(a) State the responsibility which Sumit had to fulfil as an aware consumer to get the services of the company.
(b) Explain briefly any two rights which Sumit could have exercised had he fulfilled his responsibility identified in part (a). (CBSE 2018)
Answer:
(a) As an aware consumer, the responsibility that
Sumit should have followed is ‘following the manufacturer’s instructions and user manuals carefully before using the product for safety purposes.

(b) If Sumit had fulfilled his responsibility, then he could have enjoyed the following rights:

1. Right to be heard Under this right, a consumer has the right to file a complaint under appropriate forums established by the government, in case of any grievance or dissatisfaction.

2. Right to seek redressal Under this right, a consumer has the right to seek redressal and compensation in case of any exploitation. The Consumer Protection Act provides for compensation in various forms such as replacement of product, cash compensation and repair/removal of defects, amoung others.

Question 38.
Aditi set-up a company ‘Dantik Ltd.’ to manufacture toothpastes using herbs found in her village instead of chemicals that are harzardous to health. The package of the product was eco-friendly and had details like price, quantity, ingredients, directions for use and other relevant information. It also carries the contact details like address, phone number and email id of ‘Dantik Consumer Services and Grievance Cell’. The toothpaste became very popular and she started getting orders from reputed traders.
Identify and explain any two Rights of Consumers discussed above. (Comportment 2018)
Answer:
Consumer rights discussed above are:

  • Right to safety Refer to Ans 8 on page 230.
  • Right to be informed Refer to Ans 17 on page 227.
  • Right to seek redressal Refer to text on page 223.

Question 39.
State any three functions performed by non-governmental organisation for consumer protection. (Delhi 2011)
Answer:
Consumer organisations and NGO’s perform several functions for the protection and promotion of interest of consumers. These include:

  • Educating the general public about consumer rights by organising training programmes, seminars and work shops.
  • Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.
  • Carrying out comparative testing of products and publish results for consumer welfare.
  • Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers.

Question 40.
Explain any two points of importance of ‘Consumer protection’ from the point of view of business and any two points from the point of view of consumers. (All India 2015)
Or
What is meant by consumer protection? Also state how consumer protection is important from the point of view of consumers. (Comportment 2014; Delhi 2013)
Or
What is meant by consumer protection? State any three points of importance of consumer protection from the consumers’ point of view. (All India 2010)
Answer:
Consumer protection is a very wide term. It includes providing information to the consumers about their rights and responsibilities and helps in getting their grievances redressed. Consumer is treated as a king in the market, therefore, producers produce goods as per their needs and wants.
For importance of consumer protection from consumer’s point of view Refer to Ans 5 on page 229.
For importance of consumer protection from business point of view Refer to Ans 4 on page 228 and 229.

Question 41.
Describe the following rights of a consumer: (Comportment 2015)
(i) Right to he informed
(ii) Right to seek redressal
(iii) Right to choose
Answer:
(i) Right to be informed The consumer has a right to have complete information about the product, he intends to buy including its ingredients, date of manufacture, price, quality, quantity, directions for use etc.

(ii) Right to seek redressal The consumer has a right to get relief in case the product or service falls short of his expectations. The consumer protection provides a number of reliefs to the consumers including replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer, etc.

(iii) Right to choose Refer to Ans 7 (i) on page 229.

Question 42.
Explain the following rights of a consumer as provided under Consumer Protection Act 1986:
(i) Right to safety
(ii) Right to be heard (Delhi 2015)
Answer:

  • For right to safety Refer to Ans 8 (i) on page 230.
  • For right to be heard Refer to Ans 8 (ii) on page’230.

Question 43.
Explain the following rights of consumers:
(i) Right to safety
(ii) Right to consumer education (Delhi (C) 2012)
Answer:

  • For right to safety Refer to Ans 8 (i) on page 230.
  • For right to consumer education Refer to Ans 7 (ii) on page 229.

Question 44.
Explain the following Rights of Consumers
(i) Right to he informed
(ii) Right to seek redressal (All India 2012; Delhi 2012)
Answer:
For Right to be informed and right to seek redressal Refer to text on page 223.

Question 45.
State how (i) Self regulation by business and (ii) Business association act as the ways of achieving the objectives of consumer protection. (All India (C) 2012)
Answer:
(i) Self-regulation by business Business firms realise that it is,in their long-term interest to serve the customers well. 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.

(ii) Business associations The associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII) have laid down certain code of conduct, which lay down for their members the guidelines in their dealings with the customers.

Question 46.
State how (i) Government (ii) Consumer Awareness Act as the ways of achieving the objectives of consumer protection.
Answer:
(i) 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 consumers. The most important of these regulations is the Consumer Protection Act, 1986, which provides three-tier machinery for redressai of consumer grievances.

(ii) Consumer awareness A consumer, who is well informed about his rights and his reliefs available to him, would be in position to raise his voice against unfair trade practices or unscrupulous exploitation. This would enable him to safeguard his interests.

Question 47.
Anita purchased a book from Satish book stores. While reading the book, she found that ten pages were missing. She approached the book seller and complained about the missing pages. The seller promised that if the publisher was ready to change the book, he would change the same. After one week, the seller informed Anita that the publisher had refused to change the book.
Where can Anita file a complaint against the seller of the book? Give reason in support of your answer. Also, explain who is a consumer as per Consumer Protection Act, 1986. (Delhi (C) 2011)
Answer:
Anita can file a complaint against the seller of the book in the District Forum. District Forum is established by the State Government in each district. In District Forum, only such complaints can be filed in which the value of goods or services and the compensation claimed is not more than ₹ 20 lakh.
For explanation of ‘consumer’ as per CPA, 1986 Refer to Ans 2 on page 228.

Question 48.
Harish purchased a medicine from Bhatia Medical Stores for his son, who had high fever. Even after giving the medicine his son’s condition did not improve and he had to be hospitalised. Doctor informed Harish that medicine given to his son was spurious. Harish complained about this to Bhatia Medical Stores. As a result, Bhatia Medical Stores decided to file a complaint against the manufacturer in the consumer court.
Can Bhatia Medical Stores do this? Give reason in support of your answer. Also, explain who is a consumer as per Consumer Protection Act, 1986. (Delhi (C) 2011)
Answer:
‘Bhatia Medical Stores’ cannot file a complaint against the manufacturer in the consumer court because Bhatia Medical Stores is not a consumer in this case. He is not a user but has obtained medicine for resale purpose/commercial purpose.
For meaning of ‘consumer’ as per Consumer Protection Act, 1986 Refer to Ans 2 on page 228.

Question 49.
Explain the following Rights of Consumers
(i) Right to choose
(ii) Right to be heard (Delhi 2010)
Answer:

  • Right to choose Refer to Ans 7 (i) on page 229.
  • Right to be heard Refer to Ans 8 (ii) on page 230.

Question 50.
‘VOICE’ is an important consumer organisation. It organised workshops in the months of December in Delhi/NCR for consumers. The theme was ‘Organic Food-From Farm to Plate’, to spread awareness on the importance of organic farming and to encourage consumers to switch from conventional food, that contains chemicals and pesticides to organic food. Expert speakers from farmers’ community explained the harmful effects of usage of pesticides in farming and the importance of organic food. People were informed that the organisation regularly tests samples to detect adulteration like presence of heavy metals or pesticides. The results of the tests are published in their monthly magazine ‘Consumer Voice’ to make people aware of quality of different products. It also provides aid and legal advice to the consumers in seeking a remedy.
State the functions performed by the Consumer Voice for the protection and promotion of consumer interest by quoting lines from the above para. (Delhi 2019)
Answer:
Functions performed by VOICE are:
(i) Creating awarenes s about consumer rights:
“It organised ………….. pesticides to organic food.”

(ii) Imparting knowledge :
“Expert speakers ………….. food.”

(iii) Testing of consumer products :
“People were ………….. products.”

(iv) Providing legal assistance to consumers :
“It also provides ………….. a remedy.”

Question 51.
Reena purchased one litre of pure desi ghee from a shopkeeper. After using it, she had a doubt that it is adulterated. She sent it for a laboratory test which confirmed that the ghee is adulterated. State any six reliefs available to Reena, if she complains and the consumer court is satisfied about the genuineness of the complaint. (All India 2011; Delhi 2011)
Am. In case of genuineness of the complaint, the court can issue one or more directions to the opposite party. Six reliefs available to Reena, if she complains are:

  • To remove defect in goods or services.
  • To refund the price.
  • To replace the defective good with a new one.
  • To pay a reasonable amount of compensation for any loss or injury suffered.
  • To pay punitive damages.
  • To discontinue the unfair/restrictive trade practices.

Question 52.
Prakhar purchased an ISI mark electric iron from Bharat Electricals. While using, he found that it was not working properly. He approached the seller and complained for the same. The seller satisfies Prakhar by saying that he will ask the manufacturer to replace this iron. The manufacturer refused to replace and Bharat Electricals decided to file a complaint in the consumer court.
Can Bharat Electricals do this. Why? Also explain who is a consumer as per Consumer Protection Act, 1986. (All India 2011; Delhi 2011)
Answer:
Bharat Electricals cannot file a complaint. This is because Bharat Electricals is not a consumer as per Consumer Protection Act, 1986 because they bought the goods for resale or for commercial purpose.

Under the Consumer Protection Act, a consumer is defined as:
(i) A person who buys goods for consideration which has been paid promised, or partly paid and partly promised or trader any scheme of deferred payment. It includes any user of such goods, when such use is made with the approval of the buyer but does not include a person who obtains goods for resale or any commercial purpose.

(ii) Any person who hires or avails any service for consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment. It includes . any beneficiary of services when such services are availed of with the approval of the person concerned but does not include a person who avails of such services for any commercial purpose.

Question 53.
Explain the three tier machinery under the Consumer Protection Act for redressal of consumers grievances. (Compartment 2010)
Answer:
Redressal agencies For the redressal of consumer grievances, the Consumer Protection Act, 1986 provides for setting up of a three-tier machinery at the district, state and the national levels. These agencies are

District Forum or District Consumer
Dispute Redressal Forum

  • The State Governments are required to establish District Forums in each district.
  • Each District Forum consists of a chairman and two members appointed by the State Government, one of whom should be a woman.
  • A District Forum can receive consumer complaints, where the value of goods or services and the compensation claimed is not more than ₹ 20 lakh.

State Commission or State Consumers
Disputes Redressal Commission

  • State Commission is set-up by the State Government and its jurisdiction is restricted to the boundaries of the state concerned.
  • The State Commission shall consist of a President, who is or has been a judge of a High Court and two other members, one of whom is a woman. All the three shall be appointed by the State Government.
  • Only those complaints can be filed, where the value of goods or services and compensation claimed is more than 120 lakh but note more than ₹ 100 lakh. The appeals against the orders of any District Forum can also be filed before the State Commission, within 30 days of passing of the order.

National Commission or National
Consumer Disputes Redressal Commission:

  • The National Commission is set-up by the Central Government.
  • It shall consist of a President, who is or has been a judge of the Supreme Court and four other members appointed by the Central Government one of whom shall be a woman.
  • All complaints pertaining to those goods or services and compensation whose value is more than ₹ 100 lakh can be filed. Appeals against the order of any State Commission can also be filed before the National Commission, within 30 days of passing of the order.
  • An order passed by the National Commission is appealable before the Supreme Court.

Financial Markets Class 12 Important Questions and Answers Business Studies Chapter 10

Multiple Choice Questions

Question 1.
Which of the following major activity is performed by the Bureau of Indian Standards?
(a) Formulation of quality standards for goods
(b) Certification of goods through the BIS certification scheme
(c) Handling complaints about quality of goods carrying ISI mark
(d) All of the above
Answer:
(d) All of the above

Hint:
The Bureau of Indian Standards has been set up under the Consumer Protection 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 the quality of products carrying the ISI mark.

Question 2.
Which of the following is the apex body for redressal of consumer grievances in India?
(a) District forum
(b) State Commission
(c) National Commission
(d) Supreme Court
Answer:
(d) Supreme Court

Hint:
Supreme Court is the court of final appeal in India. Any order passed by the National Commission may be challenged in the Supreme Court. Therefore, Supreme Court is the apex body for redressal of consumer grievances in India.

Question 3.
What is PIL?
(a) Public Interest Litigation
(b) Protect Interest Litigation
(c) Protect Individual Litigation
(d) Public Induce Litigation
Answer:
(a) Public Interest Litigation

Financial Markets Class 12 Important Questions and Answers Business Studies Chapter 10

Hint:
Public Interest Litigation (PIL) is a right given to thp socially conscious member or a public spirited NGO to espouse a public cause by seeking judicial course for redressal of public injury.

Question 4.
In India, on which day National Consumer Day is observed?
(a) 26th December
(b) 24th December
(c) 24th January
(d) 15 th March
Answer:
(b) 24th December

Question 5.
Simran Singh, a pure vegetarian, went to a popular fast food outlet of the city and ordered for a veg cheese burger. Later on she found out that the veg cheese burger was cooked in fish oil. Neither the menu card nor the person, who took her order specified this fact to Miss Simran. Which of the following right of Miss Simran as a consumer is violated here?
(a) Right to choose
(b) Right to be heard
(c) Right to be informed
(d) None of the above
Answer:
(c) Right to be informed

Hint:
Every consumer has a right to get true and complete information about the quality, quantity and ingredients of the product he/she intends to buy. In this case, right of Miss Simran violated here is right to be informed.

Question 6.
From business point of view, consumer protection is important because of
(a) long-term interest of business
(b) social responsibility
(c) less government intervention
(d) All of the above
Answer:
(d) All of the above

Hint:
Enlightened businesses realise that it is in their long-term interest to satisfy their customers. A business has social responsibilities towards various interest groups. Business organisations make money by selling goods and providing services to consumers.

Question 7.
The members of the District Forum are appointed by whom?
(a) District Magistrate
(b) State Government
(c) Central Government
(d) Chief Justice of India
Answer:
(b) State Government

Financial Markets Class 12 Important Questions and Answers Business Studies Chapter 10

Question 8.
Mark the correct option.
(a) The District Forum consists of a chairman and two other members
(b) Out of the members of District Forum, one should be a woman
(c) A complaint can to be made to the appropriate District Forum when the value of the goods or services in question, alongwith the compensation claimed, does not exceed ₹ 20 lakh
(d) All of the above
Answer:
(d) All of the above

Question 9.
Which of the following statement is not true?
(a) Due to lack of consumer organisations, consumer protection becomes necessary
(b) Self regulation by business is a mean of consumer protection
(c) Central Government is required to establish District Forums in each district
(d) None of the above
Answer:
(c) Central Government is required to establish District Forums in each district

Hint:
As per the provisions of Consumer Protection Act, 1986, Central Government set up the National Commission. It is the duty of State Governments to set up State Commission and District Commissions.

Question 10.
Mr. Mahesh who lives in London, bought a motorbike worth ₹ 56 lakh from Delhi and gifted it to his friend Mr. Ramesh, who also lives in Delhi. Later on Mr. Ramesh observed certain deficiencies in the bike and requested the seller to either remove the defects or to replace the bike with new one, however the manufacturer denied. Comment who among the following can file a complaint against the seller?
(a) Mr. Mahesh
(b) Mr. Ramesh
(c) Mr. Ramesh through a consumer association
(d) All of the above
Answer:
(d) All of the above

Hint:
Mr. Mahesh can file a complaint as he is the one who bought the bike. The term consumer includes any other user of such goods when such use is made with the approval of the buyer, therefore, Mr. Ramesh can also file a complaint as he is also the consumer. Mr. Ramesh can himself file the complaint or through a voluntary consumer association. Therefore, all of these can file a complaint in this case.

Question 11.
Match the following,

List I List II
I. The Prevention of Food Adulteration Act (i) 1999
II. The Trade marks Act (ii) 1986
III. The Bureau of Indian Standards Act (iii) 1954

Codes

I II III
(a) (i) (ii) (iii)
(b) (ii) (i) (iii)
(c) (iii) (i) (ii)
(d) (ii) (iii) (i)

Answer:
(c) (iii) (i) (ii)

Financial Markets Class 12 Important Questions and Answers Business Studies Chapter 10

Question 12.
A consumer should follow which responsibility, while purchasing, using and consuming goods and services?
(a) He must ensure that he gets a fair deal
(b) He should be aware about the various goods and services available in the market
(c) He should always ask for a cash memo
(d) All of the above
Answer:
(d) All of the above

Hint:
A consumer has provided many rights under the Consumer Protection Act, 1986. But he should fulfil his responsibilities also while purchasing, using and consuming goods and services like awareness about the products available in the market, ensuring about a fair deal, asking for a cash memo while purchasing the goods etc.