[AHSEC Class 12, Business Studies Notes, Revised Syllabus, 2022 Exam, Consumer Protection]
Class 12 Business Studies Notes
Unit – 12:
Consumer Protection
Objective Questions (1 Mark):
1. What is the purpose of enacting the
consumer protection Act 1986?
Ans: To protect and promote the interest of consumer.
2. Which consumer right gives the
business firm freedom to set up their own consumer service and grievance cell?
Ans: Right to be heard.
3. Mohit 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 and in how many days?
Ans: Mohit can further appeal against the decision of District
Forum in the ‘State Commission’ within 30 days.
4. Mohit 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’.
Ans: Amrit can further appeal in ‘National Commission’.
5. Ankit filed a case against
‘Mahindra Ltd.’ in the ‘National Commission’. But he was not satisfied with the
orders of the ‘National Commission’. Name the authority to which he can appeal
against the decisions of ‘National Commission’. 2013
Ans: He can appeal in Supreme Court within 30 days.
6.
Which claim can be approach before the Supreme Court under Consumer Protection
Act?
Ans: An order passed by the national
commission in a matter of its original claims exceeding Rs. 1 Crore can appear
before the Supreme Court.
7. Ram wants to buy ghee. How can he
check the quality of product?
Ans: Through ‘AGMARK’ symbol. “AGMARK” symbol is used for food
products.
8. Ram wants to buy an iron. As an aware
customer, how can he be sure about the quality of iron? 2012, 2020
Ans: Through “ISI” mark. “ISI” mark is used for electronic items.
9. Can a consumer file complaint in
consumer court without having cash memo?
Ans: No, without cash memo he cannot file a complaint. Cash memo
is the proof of the transaction.
10. List any three consumer
organizations in India.
Ans: (i) Consumer Guidance Society of India (Mumbai), (ii) Common
Cause (New Delhi), (iii) Citizen Action Group (Mumbai)
12. In what type of activities is Consumer Coordinating Council
involved?
Ans:
It is the main body of the Consumer Organizations of India. It conducts several
programmes on consumer education for activists, etc. It has published training
manuals on Consumer Protection Act
13. Name two consumer rights defined
by UNO.
Ans: (i) Right to Basic Need. (ii) Right to Healthy Environment.
14. Rajiv, 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?
Ans: Yes, Rajiv will be able to claim the compensation as the
railways have violated the Right to Information.
15. Mr. A suffers
a loss of Rs.20, 00,000 due to bad quality of goods. Name the commission to
which Mr. A approach for claim?
Ans: District Commission
16. Mr. A suffers
a loss of Rs.1, 00, 00,000 due to bad quality of goods. Name the commission to
which Mr. A approach for claim?
Ans: State Commission
17. Mr. A suffers
a loss of Rs.1, 10, 00,000 due to bad quality of goods. Name the commission to
which Mr. A approach for claim?
Ans: National Commission
Q.18.
Define Grades, Grading and Standards of a product.
Ans: Meaning of grades: Grade is
a category assigned to the product based on its technical configuration. This
means different configurations are kept in different grades.
Meaning of Grading: Grading is the process of dividing the products into lots which are
similar characteristics in shape and size, type, weight, quality and
performance etc.
Meaning of standards: Product Standards means all safety, quality and other
specifications and standards applicable
to any Product, including
all medical device and other standards promulgated
by Standards Bodies.
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ALSO READ (AHSEC ASSAM BOARD CLASS 12)
1. AHSEC CLASS 12 BUSINESS STUDIES CHAPTERWISE NOTES
2. AHSEC CLASS 12 BUSINESS STUDIES QUESTION PAPERS (FROM 2012 TILL DATE)
3. AHSEC CLASS 12 BUSINESS STUDIES SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)
4. AHSEC CLASS 12 BUSINESS STUDIES IMPORTANT QUESTIONS
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SHORT
QUESTIONS (3/ 5/6 Marks)
Q.N.1. Explain
briefly the meaning of “consumer” with reference to Consumer Protection Act
1986. Who cannot be considered as consumer?
Ans: Consumer is a person who uses the goods. According to the
Consumer Protection Act, 1986, a consumer is one:
a) Who buys goods or
hires services for consideration,
b) Who uses the goods or
hired services with the approval of the buyer or hirer of the service,
c) Who uses the
goods/services to earn livelihood by self-employment.
Who is not
a consumer?
a) An applicant for a passport has been held to be not a consumer.
b) An applicant for ration card is not a consumer.
c) The beneficiaries of municipal services are not in the category of
consumers.
Q.N.2. Define consumer protection? What are the
salient features and objectives of Consumer Protection Act?
Ans: Consumer protection refers to the education to the Consumer
about their rights and responsibility, getting their grievances redressed and
protection of their interest. For e.g.-: Protecting the consumer from
black-marketing, adulteration, and hoarding.
Features
of Consumer Protection Act are:
a)
The Act applies to all goods and services unless specially exempted by
Union Government.
b)
It covers all sectors – public, private or cooperative.
c)
Provisions of the Act are compensatory in nature.
d)
It contains all consumers’ rights - to choose, to be heard, to be
informed, to safety, education and redressal.
e)
It empowers consumers seeking discontinuance of trader’s malpractices,
defective goods, service deficiencies or withdrawal of hazardous goods from the
market.
The Need/objectives/importance of the Consumer
Protection Act are as follows:
a) To assist in achieving or maintaining adequate protection for
their consumers;
b) To facilitate production and distribution patterns responsive to
the needs and desires of consumers;
c) To encourage high levels of ethical conduct for those engaged in
the production and distribution of goods and services to consumers;
d) To facilitate the development of independent consumer groups;
e) To further international cooperation in the field of consumer
protection;
Q.N.3. Who can file a complaint under
the CP Act 1986 and under what circumstances? What are the features of a
“Complaint”? 2019
Ans: A complaint before an
appropriate consumer forum can be made by complainant who can be:
a) Any consumer,
b) Any registered consumer association,
c) Central/state govt.,
d) One or more consumer on behalf of many consumer having same
interest,
e) Legal representative of deceased consumer within two years.
"Complaint" can be made in the
following cases:
a) An unfair trade practice or a restrictive trade practice has been
adopted by any trader;
b) The goods suffer from one or more defect;
c) The services suffer from deficiency in any respect;
d) Price charged for the goods mentioned in the complaint is in
excess of the price fixed under any law.
e) Goods which will be hazardous to life and safety.
Features
of Complaint: Complaint which is a written allegation made by any complainant
should have the following features:
a) The complaint must be in writing;
b) The complaint must be made with a view to obtain any relief under
the Act;
c) The Complaint must make any of the five allegations mentioned
above.
d) The complaint must be filed in a manner prescribed under law.
e) The complaint must be filed before appropriate consumer commission
having jurisdiction to entertain complaint.
Q.N.4. How
Complaints are filed? What are the remedies/reliefs available to consumers
under the Consumer Protection Act 1986? 2016
Ans:
Procedure for filling complaint: The
complainant or his authorised agent can present the complaint in person or send
it by post to the appropriate forum or Commission, as the case may be, within a
period of 2 years from the date on which the cause of action has arisen. No fee
is charged for filing a complaint before the District Forum or the State
Commission or the National Commission. A complaint should always be supported
and verified by an affidavit.
The District Forum, State Commission and
National Commission are required to decide complaints, as far as possible,
within three months from date of notice received by the opposite parties. For
those complaints which require laboratory analysis or testing of commodities,
the period is extended to five months. The consumer has the right to file an appeal within 30 days
with the next higher forum if he feels justice has not been done to him. If a
consumer is not satisfied with the decision of national commission he can move
to Supreme Court with the require fees within 30 days.
REMEDIES/PROTECTION UNDER THE ACT 2017,
2020
In case it
is proved that there exists a defect in the goods or that the services rendered
were deficient in nature the following remedies against the seller are
available to the Consumer.
a)
To remove the defect pointed out
by the appropriate laboratory from the goods in question or;
b)
Replace the goods with new goods
of similar description, which shall be free from any defect;
c)
Return to the complainant the
price of the goods or the charges for the services rendered and / or;
d)
Pay such amount as compensation
for any loss or injury suffered by the Consumer or;
e)
Remove the deficiency in the
service and/ or;
f)
Discontinue the unfair or
restrictive trade practice and not to repeat them and / or;
g)
Not to offer hazardous goods for
sale and / or;
h)
Withdraw the hazardous goods for
sale and / or;
i)
Provide adequate costs to the
parties.
Q.N.5.
Explain in brief rights and Responsibilities of consumers as provided under the
Consumer Protection Act, 1986.
Ans: Rights of Consumers: 2012, 2017, 2019, 2020
a)
The right to safety: It refers to the right to be
protected against products which are hazardous to health or life.
b) The right to
be informed: Consumers have a right to be informed about the quality, quantity and
price of goods or services so that they can make the right decision.
c) The right of
choice: The consumer has the
right to be assured of a choice of various goods and services of satisfactory
quality and competitive price.
d) Right to
representation (or right to be heard): It is a right and the responsibility of civil
society to ensure consumer interest prevails while formulating and executing
policies which affect the consumers, as well as right to be heard while
developing or producing a product or service.
e) Right to seek
redressal of grievances: The consumer has the right go to court against unfair or restrictive
trade practices and receives compensation for supply of unsatisfactory goods or
services.
f) Others
Rights: The right to consumer education, Right to basic needs, Right to healthy
environment.
Main
responsibilities of consumer are given as under: 2012, 2015
a)
Be aware about their right: Consumer
must be aware of their own rights.
b)
Quality conscious: while making
purchase, consumer should look for quality certification.
c)
Must obtain cash memo: Consumer
must insist on cash memos as cash memo act as proof of purchase.
d)
Be Assertive: The consumer must be
assertive in his dealings.
e)
Be Honest: Consumer must act
honestly and choose goods/services, which are legitimate.
Q.N.6.
State any Five functions perform by Consumer organisation and Non-Government
Organisation. 2013, 2015, 2018
Ans: Functions of Consumer organisation and
Non-Government Organisations (NGO):
a)
Creating consumer awareness: They
publish periodicals brochures journals etc for creating consumer awareness.
b)
Encourage the consumer: They
encourage and educate the consumer to protect against exploitative, unfair
trade practice of the seller.
c)
Filing complaints: They file
suits, complaints, on behalf of consumer.
d)
Focus on consumer problem: They
arrange seminars, workshops and conference for the purpose of focusing on
problem of consumer.
e)
Problem legal assistance: They
provide legal assistant for getting legal remedy against the damage caused to
consumer.
Q.N.7.
Explain the importance of consumer Protection act from the point of view of
consumer? 2014, 2018
Ans:
Importance of Consumer Protection from the point of view of consumer:
a)
Consumer’s ignorance: Most of the
consumers are ignorant about their light and relief’s available to them. So it
was essential to create awareness among consumer for their lights.
b)
Unorganized consumers: Consumer
are not much organized so us to protect their interest. Until their
organization become strong and powerful, proper protection has to be provided.
c)
Wide Spread Exploitation of
Consumer: the balance sheet man through various unfair trades. Practice like
loading, black-marketing, adulteration etc.
Q.N.8.
Explain the need/importance for consumer protection from the point of view of
business. 2013, 2016
Ans: Importance of
Consumer Protection from the point of view of business:
a)
Business
is a means of human welfare: Business serves the customer. It is in the interest of both the consumer
and the businessman to ensure that the business is run well because ignoring
the interest of the consumer may be a sure death of the business.
b)
Growth
with social justice: Growth with
social justice is the prime feature of our economic philosophy. Exploitation of
consumers is against the directive principles of State Policy laid down in our
Indian Constitution.
c)
Single
versus multiple objectives: Business works for all stakeholders – consumers, shareholders,
employees, government, and the public. It is both a social and economic
institution. Therefore it cannot just make profit by ignoring the interest of
the society.
d)
Power
Centre: Business has considerable influence over society
and government. Therefore it has to set standards regarding food, dress habits,
living styles, etc which will not damage the cause of society.
e)
Self interest: Due to liberalization and globalization, firms
have to compete with multinationals. Unless they become customer oriented and
provide right quality, quantity and price they cannot survive for long time and
will be out beaten by competition from multinationals.
Q.N.9.
Explain any five ways and means of consumer protection followed in India.
Ans: The following are some of the ways and means
of consumer protection followed in India:
a) Lok Adalats: The Consumer can
approach the Adalats with his grievance. The issue is discussed and decision is
taken on the spot. This saves time and money. Lok Adalats has become a speedy,
effective and economical redressal system.
b) Publicity Measures: 15th March is celebrated as World Consumer
Right Day all over the world ever year. In 1995 this day was organized at
Vigyan Bhawan, New Delhi. In addition, the Ministry with the help of DAVP
undertook a massive outdoor publicity program such as displaying hoardings, banners,
bus panels, etc.
c) Environmentally Friendly Products: The Ministry of
Environment and Forests has introduced an “Eco-Mark” scheme. It is a label that
has a symbol of an earthen pitcher. If this label appears on a product, it
means that the manufacturer has satisfied the conditions laid down regarding
the production processes and used environmental friendly materials. This scheme
has been started with consumer items like soap, detergents, paints, food items,
edible oil, etc.
d) Redressal Forums & Consumer Protection
Councils: Under the Consumer Protection Act 1986 a judicial machinery such as the
District Forums, State and National Commissions have been set up to provide
speedy, effective and economical redressal of consumer grievances and disputes.
e) National Youth Award on consumer
protection: To encourage consumers and youths to participate in the field of
consumer protection, every year the Union Ministry gives two national awards –
National Award on Consumer Protection and National Youth Award on Consumer Protection.
f) Consumer
Awareness: It is not easy to exploit
educated and well aware consumers.
Consumer must be well aware about his rights, responsibilities and relief
available to him.
g) Government: Government of India has framed a set of laws and legislations to
protect the interests of consumers and the most important act framed by
Government is Consumer Protection Act, 1986. This act has provided three tier
redressal agencies i.e. District Forum, State Commission and National
Commission.
Q.N.10.
What type of judicial machinery is there to deal with consumer grievances and
disputes?
Ans: Government of India has framed a set of laws
and legislations to protect the interests of consumers and the most important
act framed by Government is Consumer Protection Act, 1986. This act has
provided three tier redressal agencies i.e. District Forum, State Commission
and National Commission.
|
Basis |
District Forum |
State
Commission |
National
Commission |
|
Composition |
It consists of
a president and two other members. |
It consists of
a president and two other members. |
It consists of
a president and four other members. |
|
Who can be
president |
A working or
retired judge of District Court. |
A working or
retired judge of High Court. |
A working or
retired judge of Supreme Court. |
|
Jurisdiction |
Where the value
of goods or services is up to Rs. 20 Lakhs. |
Where the value
of goods or services is more than Rs.20
Lakhs and up to Rs 1 crores. |
Where the value of goods or services is more
than Rs. 1 crores |
Q.N.11.
Enumerate the various acts passed by the Government of India which helps in
protecting the interest of the consumers.
Ans: Various
acts passed by the government of India to protect the interest of the consumer
a. The
Consumer Protection Act 1986:
b. The
Contract Act 1982:
c. The
Sale of Goods Act 1930:
d. The
Essential Commodities Act 1955:
e. The
Agricultural Produce (Grading and Marking) Act 1937:
f.
The Prevention of Food Adulteration Act 1954:
g. The
Standard of Weights and Measures Act 1976:
h. The
Trade Mark Act 1999:
i.
The Competition Act 2002:
j. The Bureau of Indian Standard Act 1986: