MP Board Class 12th Business Studies Important Questions Chapter 12 Consumer Protection
Consumer Protection Important Questions
Consumer Protection Very Short Answer Type Questions
When is consumer’s right day is celebrated ?
On 15th March consumer’s rights day is celebrated.
Ahmad wants to buy a press (iron). As a aw are consumer how can he convince you about the quality of press ?
Ahmad should check I.S.I. mark while purchasing press.
Reeta wants to purchase one packet of juice. She is an aware customer. How can she connived ?
Reeta should see F.RO. mark.
Amrit has complained against ‘Amrit Volvo Limited’ in state commission. But he was not satisfied with orders of it. Tell where Amrit can complaint against the commission.
Amrit can appeal in the National Commission.
Anjana wants to purchase a golden ring, what she should see on the ring to check quality of ring ?
She should see Halmark.
What role does “the right to be heard” play for a consumer ?
According to this right if any misbehavior or michchief is done with consumer then he can appeal to the court and has right that his complaint to be heard. The consumers right to be heard includes legal hearing to get redress.
Why is consumer protection important for a consumer ? Give one reason.
Consumer protection is important for the protection of unfair practices of producers and sellers.
Write the names of two right under the consumer protection act of 1986.
- Right to safety
- Right to be informed.
Where is the international organisation set up for standardization ?
At the international level the organisation (ISO) was set up in Geneva.
W’hat is Eco-mark scheme ?
This scheme has been introduced by the ministry of environment and forest. It signifies that the products fulfill the environmental norms. This scheme is useful for toilet soap, detergents, paints, packaging material, food products, edible oil, etc.
What do you mean by Lok Adalat ?
Lok Adalat are those centers where aggrieved parties can approach directly with their grievances. Lok Adalat give patient hearing discuss the issue and give their decision on spot. It is economical and effective system.
What do you mean by public support ?
Business needs public support, without it no other business can run successfully. Business needs financial support by time to time like financial institution, banks, government employees, customer etc. Business had provide better quality of product to the society. If we exploit the public it means we destroy our self. We need people to purchase our goods.
What sort of precautions should be observed by consumers ?
Consumers must take following precautions :
- Must acquire all the informations regarding goods purchased or service choosed.
- Consumer must know name of article, name of manufacturer, instructions of its use etc.
- Consumer must assure himself about the safety of the product.
What do you mean by public relation ?
Public relation means to maintain relation among various people. Newspapers, government press are the sources of it.
What do you mean by consumer ?
Under the consumer protection Act 1986 consumer means any person who for consumption purpose: .
- Buys goods on deferred payment
- Hires any service for payment
- Hires any service on deferred payment.
State any two problems of consumer.
Two Problems of consumers are as follows :
- Adulteration of foods (Use of unpermitted colour)
- Sales of medicines after expiry date.
What do you mean by redressal forum ?
Three tier grievances redressal machinery or forum is established through consumer forum.
- District forum
- State commission
- National commission.
Who can be the president of district forum ?
The president of consumer forum can be the officiating or retired judge.
Who can appeal before the court for complaint ?
Following can complaint:
- A consumer.
- A recognized consumer organisor.
- A consumer or more than one consumer.
- Central government.
- State government.
Consumer Protection Short Answer Type Questions
Explain the importance of consumer protection.
Importance of consumer protection :
- Providing legal protection to customers
- Unorganized consumers
- ignorance of consumers
- To protect from exploitation
- Help in the growth of business
- Social responsibility of business to protect the interest of owners and other
- Makes aware of consumers about their rights
- Speedy disposal of complaints
- Protection from pollution.
Explain the different rights of consumers.
he rights of consumers are as follows :
- Right to safety
- Right to be informed
- Right to be heard
- Right to receive goods at competitive price
- Right to be released
- Right to consumer education
- Right to consideration
- Right to healthy environment.
Discuss the ways and means of consumer protection in India.
The following ways and means are popular for consumer protection in India :
1. Lok Adalat: Lok Adalat is a place where aggrieved parties can approach directly with their grievances. It gives patient hearing, discuss the issue and give their decision on the spot. It is effective, economic and fast.
2. Public Interest Litigation : It refers to the system which provide legal representation to the poors, consumers, minorities and other weaker groups who are not in a position seek legal remedy of their own public interest litigation can be filled either by aggrieved person or any other person who belongs to weaker group.
3. Consumer Welfare Fund: This fond has been established for promoting the welfare of consumer.
4. Redressal Forums and Consumer Protection Councils: The Consumer Protection Act, 1986; a three tier judicial machinery has been established to settle consumer disputes :
- District forum
- State commission
- National commission.
It provide simple, speedy and economical redressal of consumers disputes.
Explain the importance of non-government organisations (NGOs) for consumer protection.
The importance of NGOs in the field of consumer protection are as follows :
- Generates consumers awareness and provides education to consumers.
- Organises protests against hording and adulteration.
- Filing suit on behalf of consumers when needed.
- Collecting various information and data related with products and using this for consumer protection.
- Helping government in activities related with consumer protection.
Explain the importance of consumer protection on the point of view of business.
1. Satisfaction and welfare of consumers: Consumer protection is important because it ensures to satisfy the needs of consumers and their welfare.
2. Key to survival and growth of business : A business can survive and grow only when it aims at safeguarding the interests of shareholders in general and consumers in particular.
3. Goodwill and image : For building favorable image and goodwill a business undertaking is expected to supply right product of right quality in right quantity at right time and right place to the consumers.
4. Creating and retaining consumers : Customer is the soul of business. A business without customer is meaningless like a body without soul. The main motto of a business must be creating and retaining customers. It is possible only when the customers are satisfied in all respects. .
What do you mean by consumer’s right or rights of consumer ?
The consumers of America are more attentive and aware than consumers of India. Compared to India the consumers of America are having more rights and their complaints are settled immediately. President Kennedy laid more stress over consumer rights. He supported the following rights :
- Right to safety.
- Right to choice.
- Right to be informed.
- Right to be heard.
Other rights have been also given to consumers. For consumer protection International Organization of Consumer Union have been set up.
Who can file a complaint in a consumer court ?
A complaint can be made by :
- Any consumer.
- Any registered consumer’s association.
- The Central Government or any State Government.
- One or more consumers, on behalf of numerous consumers having the same interest.
- A legal heir or representative of a deceased consumer.
What kind of cases can be filed in a state commission ?
A complaint can be made to the appropriate state commission when the value of the goods and services, along with compensation claim exceed 20 lakes but does not exceed 1 crore. The appeals against the orders of a district form can also be filed before the state
Explain the ways of consumer protection.
The consumer protect act has provided three tier judicial machinery for redressing the grievances of consumers.
What is consumer education ? What is the need of consumer education ?
It is considered that the consumer is the king of the market. But in the present day consumers are exploited by producers and sellers. They create an illusion in the minds of the consumers through advertisement, publicity and propaganda, so protect the interest of the consumers, consumer education or consumerism has become the need of the hour. Consumerism is an organised social and environmental force which aims at protecting the interest of consumers at large by organizing, writing and awakening the consumers.
Need of consumer educations : The main objectives of consumer education are as under:
- Awareness about the quality of the product
- Protection of consumers
- Information about prices
- Restriction on exploitation of consumers
- Awareness of rights
- Development of consumer organisation
- Ability to buy appropriate goods
- Abstaining from buying harmful products
- To get compensation in case of cheating by sellers
- To make complaint about the grievances.
What are the salient features of Consumer Protection Act 1986 ?
It is the duty of the government to ensure protection to consumers of the country. The government of India has passed various acts for protecting consumer’s interest. The consumer protection act 1986 is one of the most important acts. The salient features of this act are :
- This act covers all goods and services. It is a comprehensive act.
- This act does not nullify the provisions of other acts passed for consumer’s protection. It is complementary to all those acts which have been passed in the past.
- This act provides for establishing consumer forums, at central as well as state level. The main motto of such forums is to
protect consumer’s interest and extend consumer’s right.
How can you say that the scope of consumer protection in wide ?
Following points are in support of the answer :
- It gives information to the consumer’s right and responsibility.
- It assist consumers to remove their complaint.
- It provides legal protection to the consumer.
- It is applicable to all the goods and services.
- In it all the private and public organisations are
What are the responsibilities of a consumers ?
A consumer must be aware about these responsibilities while purchasing, using and consuming goods and services.
- Consumer must be aware of all their rights.
- Consumer must be careful while purchasing a product.
- He should file complaint for the redressal of genuine grievance.
- Consumer must buy a standardized goods.
- He should ask for a cash memo on purchase of goods and services.
Explain the responsibilities of business towards consumers.
The responsibilities of business toward consumers are as follows :
- The sell product at reasonable prices
- To sell quality products
- To settle complaints of consumers
- To sell products of high standard and certified by Indian Standards Institute
- Not to be misleading advertisements
- Proper packaging of products
- To collect information about needs, interest, etc. of consumers
- To provide after sales services.
Write the characteristics of district forum.
District Consumer Forum:
1. Establishment: According to consumer protection act, state government can set up one or more district fortifier in each district.
2. Composition: It consists of a president and two other members one of which must be a woman.
3. Term : Every member shall hold office for a term of 5 years or up to the age of 65 years, whichever is earlier and shall not be eligible for reappointment.
4. Jurisdiction : It has jurisdiction to entertain complaints where the value of goods and services and compensation does not exceed Rs. 20 lakhs.
What precautions should be taken by consumer while purchasing goods ?
Consumers should keep in mind few things while purchasing products. They are as follows:
1. Consumer should be cautious : Consumer should be cautious while purchasing products. He should insist on getting informations like quantity, quality, price of product, etc.
2. Consumer should exercise his rights : Consumer must be aware of all his rights and must use those rights while purchasing the products and services from sellers.
3. Filing complaint for redressal : Consumers should make the complaints to the authority for genuine grievances. The consumer should be prepared to take action to enforce fair and just demands.
4. Consumer must be aware of misleading advertisements : Through advertisements the seller provides various information about product to consumer, consumers should not believe on these advertisements. He should compare the actual product usage with advertisement. If there is anything false than it should be reported to concerned authorities.
5. Consumer should not compromise on quality : He should never compromise on quality. Whenever he is purchasing products he should look for quality marks on products like ISI, Agmark, Woolmark, FPO, etc., printed on them.
What do you mean by standardization of products ?
Standardization of products : These are done to assure the quality of products. The ISI stamp on goods is placed by the Bureau of Indian standards. This caters to industrial and consumer goods. These goods can be trusted to confirm to specific standards. Agmark is meant for agricultural products.
At the international level the international organization for standardization (ISO) located in Geneva sets common standards. The FAO and WHO provide food standards.
What do you mean by legislation concerning consumer rights ?
Legislation concerning consumer rights : The consumer protection act 1986 provides for consumer disputes redressal at the state and national level. With the help of this law the agencies can solve grievances in a speedy, simple and inexpensive manner. A separate department of consumer affairs was set up at the state and central government. A three tier system of consumer courts at the National, State and District levels were set up. These agencies have done good work by handling lakhs of cases.
What do you mean by unfair trade practice ? Give some example of it.
In unfair means of trade practice a trader adopt the defective and harmful methods to earn profit.
- To provide wrong information about the product.
- Not to follow the fixed standards.
- Black marketing hording.
- Sell products on high rate.
What do you mean by indian standard beauro Write any two activites of it
It was established in 1986.
Major activities :
- To establish quality of goods and services
- To standardize goods under VIS standardization.
What do you mean by Malpractices ?
In order to earn more and more profites the seller perform more profites practices like selling defective and substandard goods, charging exhorbitant prices, negligence as to the safety standard etc. Thus, to protect consumers from these business malpractices consumer protection is essential.
What do you mean by Moral jurisdiction ?
Moral Justification: It is the moral duty and responsibility of business to protect the consumers. The sellers should not perform activities like adulteration, black marketing, hoarding, profiteering, etc. By doing so they can discharge their moral responsibility.
Explain the importance of consumer protection from the point of view of business.
A business can not survive without paying attention on protection the consumers interest and adequately satisfying them. This is important because of the following reasons:
1. Long term interest of business : 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 organization 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 organizations 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 exploration time trade practices would invite government intervention or action. Thus, it is advisable that business organization voluntarily resort to such practices, where the customers need and interests will be taken care of.
“Though laws and acts are there still consumers are exploited.” Why ?
”Why there is need of consumer protection ? Write any four causes.
The importance of consumer protection are as follows :
1. Consumer’s Ignorance: Today every person is limited to his own work and services and is not interested in other informations that’s why consumer is ignorant about the products which he consumes. Thus, due to this ignorance they are exploited by the sellers and became a poppet. So it becomes necessary that they should be educated about their rights.
2. Social Responsibility : Every person whether he is a trader or an officer first of all is the member of society. As a member of society he is having some responsibilities and duties but every person runs away from responsibilities and works for earning more profits by any means. Thus, consumer protection is necessary to make them aware of their social responsibility.
3. Unorganised Consumers: In India generally the consumers are unorganised because they belong to different castes, religions and sections of society. Due to lack of unity and organization among consumers the sellers make advantage of it. Thus, consumer protection is necessary to make the consumers organised.
4. Settlement of Consumers Disputes : Due to the continuous exploitation of consumers by the sellers they files the complaints to the concerned departments or forums.
These disputes should be settled speedily so that consumers should have faith on law and order. In order to solve the disputes of consumers various acts specially consumer protection act has been enacted.
5. Makes Consumer Aware: Due to continuous exploitation of consumers, consumer protection act 1986 was passed. Thus, consumer have been granted some rights according to the provisions of this act, consumer protection is necessary to make consumers aware about these rights.
Consumer Protection Long Answer Type Questions
Explain in brief any four responsibilities of consumer to safeguard their intrest.
The six responsibilites of consumer to safeguard their interest are as follows :
1. To exercise his right properly : Every customer should be well aware of his rights. The consumer who knows these right properly should also make other consumer aware of these rights who are either less informed or ill informed.
2. Taking precautions : Taking proper precaution without taking shelter of legal action is also a responsibility of consumer. It is also a way of protection.
3. Filling complaint for redressal: The consumer should invariably file complaint to the appropriate authority for redressal of genious grievances. He should raise his voice and protest against all sorts of exploitation by trade and industry.
4. Quality and quantity consciousness : The consumer should always make it a point to buy such product which have always quality certification such as ISI, FPO, ISO etc.
5. Escaping misleading advertisement : The consumer should see that he is not tempted by ingenious and misleading advertisement with overstated claim of product and services.
6. Taking cash memo : In case goods are purchase in cash, the consumer should compel the dealer to give cash memo and if goods are purchased on credit basis their bill of purchase must be demanded.
What are various ways in which the objective of consumer protection can be achieved ? Explain the role of consumer organizations and NGOs in this regard ?
There are various ways in which the objective of consumer protection can be achieved:
(i) 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 grievance of their consumers.
(ii) Business associations : The associations of trade, commerce and business like federation of India Chambers of Commerce of India (FICCI) and conference of Indian Industries (CII) have laid their code of conduct which lays down for their members the guidelines in their dealing with the customers.
(iii) 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:
(iv) Consumer Organization : Consumer originations plays an important protecting role in educating consumers about their rights and them. These organizations can force business firms to avoid malpractices and exploitation of consumers.
(v) Government: The government can protect the interests of the consumers by enacting various legislations. The legal framework in India encompasses various legislation which provide protection to consumer, the most important of these regulations is the Consumer Protection Act, 1986. The Act provided for a three-tier machinery at the District, State and National levels for redressal of consumer grievance.
Explain the role of consumer organizations and NGO in protecting and promoting consumer’s interest.
Consumer organization 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 :
- Education the general public about consumer rights by organizing training programmers, seminars and workshops.
- 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 consumer products in accredited laboratories to test relative qualities of competing brands of publishing the test results for the benefit of consumers.
- Encouraging consumers to strongly protest and take an action against unscrupulous, exploitation and unfair trade practices of sellers.
- Providing legal assistance to consumers by providing aid, legal advice etc. in seeking legal remedy.
- Filling complaints in appropriate consumers courts on behalf of the consumers.
- Taking an initiative in filling cases in consumers court in the interest of the general public, not for any individual.
What are the rights of consumer in India ?
Following are the rights of the consumer under the act of 1986 :
(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 organisation and some enlightened businesses are taking an active part in educating consumers in this respect.
Enumerate the various Acts passed by the Government of India which help in protecting the consumer’s interest ?
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 safeguard 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 maintain 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 ISI mark.
Explain the redressal mechanism available to consumers under the Consumer Protection Act 1986.
For the redressal of consumer grievances, the Consumer Protection Act provides for setting up of a three-tier enforcement machinery at the District, State and the National levels.
(i) 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 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.
(ii) 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 20 lakhs but does not exceed 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.
(iii) National Commission : A complaint can be made to the National Commission when the value of the goods or services, along with the compensation claimed exceeds 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 I 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.
What are the responsibilities of a consumer ?
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 jewellary 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.
Explain how the complaint shall be made to the district forum ?
Manner in which complaint shall be to made to the district forum : A complaint in relation to any goods sold or delivered or against services should be filed by the consumer. It can be filed by any recognized consumer association or by the central or state government.
One copy is send to the opposite party, directing him to give his version of the case within a period of 30 days when the opposite party on receipts of the complaint referred to him, denies the allegations contained in the complaint or fails to take any action. He represents his case within the time given by the district forum, the district forum shall proceed to settle the consumers dispute.
After following the procedure, examining the statements of the complaint, the opposite party and witness of both, the district forum passes necessary orders and relief if any. The district forum is authorized to pass order to remove the defect points out to replace the goods with new goods, to pay the compensation.
Any person aggrieved by an order made by the district forum may prefer an appeal against such order to the state commission with the date of 30 days.
Explanation some measures for the protection of consumer by Indian government.
Following are the measures taken by Indian government:
(1) Lok Adalat: Lok Adalat are those centers where aggrieved parties can approach directly with their grievances. Lok Adalat give patient hearing discuss the issue and give their decision on spot. It is economical and effective system.
(2) Filling Petition for the Public Welfare : Under it legal actions are taken for the protection of those people who don’t have any representatives. In this disputes poor, environment, minorities, etc. are included.
(3) Eco friendly products : Environment and forest ministry has started Eco mark plans. Under it a big pot of mud is the mark which is used for such products which are eco friendly. In the beginning some goods like soaps, detergents, packaging material, food materials etc. are included in there products. These goods are not harmful for environment.
(4) Consumer protection council: Under the consumers act 1986 one legal mechanism was formed on 3 tier level under it all the exploitations of consumers are settled. State governments established consumer protection councils for the settlement of disputes.
(5) Giving award for fighting against consumer exploitation : For the encouragement of youths, some awards are given to those who fight against consumer exploitation.
(6) Publicity measures : 15th March is celebrated as world consumer day. In 1955 in New Delhi a function was held in which publicity measures were taken. On television every week programmed are organized. Short films are also made in favor of it.