Important Questions for CBSE Class 12 Business Studies Concepts, Importance of Consumer Protection and Framework for Consumer Protection in India

Consumer Protection Important Questions for CBSE Class 12 Business Studies Concepts, Importance of Consumer Protection and Framework for Consumer Protection in India

1.Meaning of Consumer Protection
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 have to produce goods as per their need and want.

2.Importance of Consumer Protection
(i)Importance from consumers point of view:

• Consumer ignorance
• Unorganised consumer
• Widespread exploitation of consumers

(ii)Importance from business point of view:
(a) Long-term interest of business             (b) Business uses society’s resources
(c) Social responsibility                              (d) Moral justification
(e) Government intervention
Consumer Protection Act, 1986
The CPA, 1986 seeks to protect and promote the interest of consumers, by safeguarding them against various unfair and exploitative practices of the sellers such as providing defective products, adulterated products, hoarding, black-marketing, etc. It also provides a redressal mechanism to aggrieved consumers through a 3-tier redressal machinery, consisting of District Forums and State Commissions in every district and state, and the National Commission at the apex level.
Previous Year Examination Questions

1 Mark Questions
1.On which type of products is ISI mark used? (Compartment 2014)
Ans. ISI is the standardisation mark for electrical appliances and electronic goods.

2.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)
Ans. Consumer Protection Act, 1986.

3.Why is consumer protection important for consumers? Give any one reason.(Delhi 2010)
Ans. Consumer protection is important from the view point of consumers, as it protects them from exploitative and unfair trade practices.                                                                                                         .
4.Why is consumer protection important for a businessman? Give any one reason.(All India 2010; Delhi 2010)
Ans. Consumer protection is important for businessman because of long-term interest of business.

5.Which Act of Consumer Protection provides safety to consumers against deficient
services? (All India 2010)
Ans. The Consumer Protection Act, 1986 provides safety to consumers against deficient services.

6.What is the purpose of enacting the Consumer Protection Act, 1986?(All India 2009; Delhi 2009)
Ans. The purpose of enacting Consumer Protection Act, 1986 is to protect and promote the interest of the consumers through speedy redressal of their grievances.

7.Explain the concept of consumer protection. (Delhi 2009 c)
Ans. Consumer protection is very wide. It includes rights, responsibilities and various remedies available to consumers. It is not only beneficial for consumers but it is equally important for businessmen also.

8.Why is consumer protection necessary? (Delhi 2008)
Ans. Consumer protection is important because it provides safeguard to consumers from exploitation.

3 Marks Question

9.State any three points of importance of consumer protection from the point of view of business. (Compartment 2014)
Ans. A business must lay emphasis on consumer protection because of the following reasons:
(i) 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.
(ii) Social responsibility It is the social responsibility of every business to take care of the interest and protection of its consumers.
(iii) Moral justification It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation.

4/5 Marks Questions

10.State with the help of any four points, why is it important for a business to lay
emphasis on consumer protection.(Compartment 2014)
Ans. A business must lay emphasis on consumer protection because of the following reasons:
(i) 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.
(ii) Social responsibility It is the social responsibility of every business to take care of the interest and protection of its consumers.
(iii) Moral justification It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation.
(iv) Government intervention A business engaged in any form of exploitation would invite government intervention or action.

  11.What is meant by consumer protection? Also state how consumer protection is important from the point of view of consumers.  (Compartment 2014)
or
What is meant by consumer protection? State any three points of importance of the consumer protection from the consumers’ point of view.  (All India 2010)
Ans. 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 need and want. (1) 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.

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