2nd PUC Business Studies Question Bank Chapter 12 Consumer Protection

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Karnataka 2nd PUC Business Studies Question Bank Chapter 12 Consumer Protection

Question 1.
State any one unfair trade practice of manufacturers and service providers by which consumers are exploited. ( 1 Mark )
Answer:
Unfair trade practices of manufactures and service providers:

  1. Adulteration
  2. Hoarding
  3. Black marketing
  4. Supply of defective and unsafe products
  5. False and misleading advertising
    (Write any one point)

Question 2.
What is consumer protection? ( 2 Marks )
Answer:
Providing adequate legal protection to consumers against unscrupulous, exploitative and unfair trade practices like adulteration, hoarding, black marketing etc. by sellers is called consumer protection. It helps the consumers to protect their physical and economic interests.

Question 3.
State any two reasons to emphasise the importance of consumer protection from consumers point of view. ( 2 Marks )
Answer:
Reasons to emphasise the importance of consumer protection from consumer’s point of view:

  1. Widespread Exploitation of consumers: Consumers might be exploited by unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing etc. Consumers need protection against such malpractices of the sellers.
  2. Consumer’s ignorance: The consumers are ignorant and not aware of their right and reliefs available to them. Therefore, it is necessary to educate them about their rights to fight against exploitation.
  3.  Unorganised consumers: As the consumers are not properly organized in the form of consumer organizations (which protects their rights), they need to be protected.
    (Write any 2 points)

2nd PUC Business Studies Question Bank Chapter 12 Consumer Protection

Question 4.
State any two reasons to emphasise the importance of consumer protection from the point of view of business. ( 2 Marks )
Answer:
Reasons to emphasise the importance of consumer protection from the point of view of business:

  1. Long term interest of business: Business units are bound to protect the consumer interest by providing better quality goods and services at reasonable price for their long term profit maximization.
  2. Social responsibility: It is the social responsibility of business to protect the interest of consumers because they make money by selling goods and services to consumers.
  3. Government intervention: It is advisable to accept consumer protection in order to avoid government intervention.
  4. Business uses society’s resources.
  5. Moral justification: It is the moral duty of any business to take care of consumer’s interest.
    (Write any 2 points)

Question 5.
State any one reason (need) for consumer protection. ( 1 Mark )
Answer:

  1. Wide spread exploitation of consumers
  2. consumers ignorance
    (any one)

Question 6.
State any one Regulation which provides legal protection to the consumers. ( 1 Mark )
Answer:
The consumer Protection Act, 1986

Question 7.
In which year the Consumer Protection Act was passed (enacted)? ( 1 Mark )
Answer:
Consumer Protection Act was passed in the year 1986.

Question 8.
Explain any four rights of consumers. ( 4 Marks )
Answer:
Rights of consumers:
The Consumer Protection Act, 1986 provides for six rights of consumers. They are:

(1) Right to safety: According to this right, the health and life of the consumer is to be protected against manufacturing and other defects in the food products, medicine, electrical appliances, gas cylinders, pressure cookers and other similar products and services.

(2) Right to be informed: A consumer has the right to get true and complete information about the quality, quantity, price, contents, directions for use, date of manufacture and expiry date of the goods and services which he intends to buy.

(3) Right to choose: The consumer has the right to choose the product of his choice out of the available alternative
products.

(4) Right to be heard: According to this right, consumer is allowed to file a complaint and to be heard if he finds himself exploited or is not satisfied with the goods and services.

(5) Right to seek redressal: Every consumer has the right to seek redressal against any defect or deficiency in product or service. Eg: Right to get compensation for any loss or injury suffered, right to seek replacement of goods or removal (repair) of defects in the goods.

(6) Right to consumer education: According to this right, every consumer has the right to be educated about the consumer rights and the reliefs available to him in case of a product or service falling short of his expectations.

2nd PUC Business Studies Question Bank Chapter 12 Consumer Protection

Question 9.
Write any two Consumer Rights. ( 2 Marks )
Answer:

  1. Right to consumer education: According to this right, every consumer has the right to be educated about the consumer rights and the reliefs available to him in case of a product or service falling short of his expectations.
  2. Right to choose: The consumer has the right to choose the product of his choice out of the available alternative products.

Question 10.
State any four responsibilities of consumers while purchasing, using and consuming goods and services.
(Or State any four consumer responsibilities). ( 4 Marks )
Answer:
Consumer responsibilities: 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 standardized goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry etc.
  3. Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.
  4. Ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.
  5. Be honest in your dealings.
  6. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding etc.
  7. Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
  8. Assert yourself to ensure that you get a fair deal.
  9. File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed. Do not fail to take an action even when the amount involved is small.
  10. Form consumer societies which would play an active part in educating consumers and safeguarding their interests.
  11. Respect the environment: Avoid waste, littering and contributing to pollution.
    (Write any four points)

Question 11.
Write any two consumer responsibilities. ( 2 Marks )
Answer:

  1. Ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.
  2. Be honest in your dealings.

Question 12.
Explain any four ways in which the objective of consumer protection can be achieved. ( 4 Marks )
Answer:
Ways and means of consumer protection: There are various ways in which the objective of consumer
protection can be achieved.

(1) Self Regulation by Business: Enlightened 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 setup their customer service and grievance cells to redress the problems and grievances of their consumers.

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

(3) Consumer Awareness: A consumer, who is well-informed about his rights and the reliefs available to him,
would be in a position to raise his voice against any unfair trade practices or unscrupulous exploitation. In addition to this, an understanding of his responsibilities would also enable a consumer to safeguard his interests. In this regard, the Department of Consumer Affairs, GOI, has been undertaking the campaign, “Jago Grahak Jago” through multimedia awareness.

(4) Consumer Organisations: Consumer organisations play an important role in educating consumers about their rights and providing protection to them. These organisations can force business firms to avoid malpractices and exploitation of consumers.

(5) Government: The government can protect the interests of the consumers by enacting various measures. For example, the GOI has set up a toll-free national consumer Helpline Number 18001 14000 (9:30 am – 5:30 pm) for this purpose. 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. The Act provides for a three-tier machinery at the district, state and national levels for redressal of consumer grievances.
(Write any four points)

2nd PUC Business Studies Question Bank Chapter 12 Consumer Protection

Question 13.
Name any one redressal machinery / agency set up under Consumer Protection Act to redress consumer grievances. (1 Mark)
Answer:

  1. District Consumer Disputes Redressal Forum (or) District Forum
  2. State Consumer Disputes Redressal Commission (or) State Commission.
  3. National Consumer Disputes Redressal Commission (or) National Commission.

Question 14.
Who is a consumer? (1 Mark )
Answer:
A consumer is a person who uses or consumes goods or avails of any service.

[Under the Consumer Protection Act, a consumer is defined as:
(a) Any person who buys any goods for a consideration, which has been paid or promised, or partly paid and pattly promised, or under 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 re-sale or any commercial purpose.

(b) Any person who hires or avails of 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 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 15.
Who can file a complaint before the appropriate consumer forum? (any four) ( 4 Marks )
Answer:
A complaint before the appropriate consumer forum can be made by:

  • Any consumer,
  • Any registered consumers association,
  • The Central Government or any State Government,
  • One or more consumers, on behalf of numerous consumers having the same interest, and
  • A legal heir or representative of a deceased consumer.
  • A complaint under section 2 (b) of the Consumer Protection Act 1986.
    (Write any four points)

Question 16.
Name any one party who can file a complaint with the Redressal Agencies. ( 1 Mark )
(OR)
Who can file a complaint in consumer court?
Answer:
The Central Government or any State Government

Question 17.
What kind of cases can be filed in a state commission? ( 2 Marks )
Answer:
Kind of cases that can be filed in a state commission:

  • A case in which the amount of claim exceeds Rs. 20 lakh but limited upto Rs. 1 crore, and
  • The appeals against the orders of a District Forum.

2nd PUC Business Studies Question Bank Chapter 12 Consumer Protection

Question 18.
What is the monetary limit of claim in District consumer disputes redressal forum? ( 1 Mark )
Answer:
Monetary limit of claim in District consumer disputes Redressal Forum is upto Rs. 20 lakh.

Question 19.
State the monetary limit of claim in state Consumer Disputes Redressal Commission. ( 1 Mark )
Answer:
Monetary limit of claim in State Consumer Disputes Redressal Commission is exceeding Rs. 20 lakhs but upto Rs. 1 crore.

Question 20.
State the monetary limit of claim in National Consumer Disputes Redressed Commission. ( 1 Mark )
Answer:
The monetary limit of claim in National Consumer Disputes Redressal Commission is claim exceeding Rs. 1 crore.

Question 21.
State any four directions which can be issued by the consumer court to the opposite party. ( 4 Marks )
Answer:
If the consumer court is satisfied about the genuineness of the complaint, it can issue one or more of the following directions to the opposite party.

  1. To remove the defect in goods or deficiency in service.
  2. To replace the defective product with a new one, free from any defect.
  3. To refund the price paid for the product, or the charges paid for the service.
  4. To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to negligence of the opposite party.
  5. To pay punitive damages in appropriate circumstance.
  6. To discontinue the unfair / restrictive trade practice and not to repeat it in the future.
  7. Not to offer hazardous goods for sale.
  8. To withdraw the hazardous goods from sale.
  9. To cease manufacture of hazardous goods and to desist from offering hazardous services.
    (Write any four points)

Question 22.
State any four functions of consumer organisations and NGOs for the protection and promotion of consumer interest.( 4 Marks )
Answer:
Functions (Role) of consumer organizations and NGOs:
Consumer organizations and NGOs perform several functions for the protection and promotion of interest of consumers. These include:

  1. Educating the general public about consumer rights by organizing training programmes, seminars and workshops.
  2. Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.
  3. Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.
  4. Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers.
  5. Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking legal remedy.
  6. Filing complaints in appropriate consumer courts on behalf of the consumers.
  7. Taking an initiative in filing cases in consumer courts in the interest of the general public, not for any
    individual.
    (Write any four points)

2nd PUC Business Studies Question Bank Chapter 12 Consumer Protection

Question 23.
Name any one consumer organisation / NGO engaged in protecting and promoting consumers interests.( 1 Mark )
Answer:
Some of the important consumer organizations and NGOs engaged in protecting and promoting consumers interests include the following:

  • Consumer Coordination Council, Delhi.
  • Common Cause, Delhi
  • Voluntary Organisation in Interest of Consumer Education (VOICE), Delhi.
  • Consumer Education and Research Centre (CERC), Ahmedabad.
  • Consumer Protection Council (CPC), Ahmedabad.
  • Consumer Guidance Society of India (CGSI), Mumbai.
  • Mumbai Grahak Panchayat, Mumbai.
  • Karnataka Consumer Service Society, Bangalore.
  • Consumers’Association, Kolkata.
  • Consumer Unity and Trust Society (CUTS), Jaipur.
    (Write any one point)

Question 24.
As an exploited consumer, write a complaint letter to your nearest District Consumer Forum claiming reasonable redressal. ( 5 Marks )
Answer:

Date 31.08.2018

From
Harish Kumar
# 1234, 3rd Main, 3rd Cross,
Rajajinagara, Bengaluru 560 010.

To
The President,
District Consumer Disputes Redressal Agency
Bangalore North District,
Bengaluru 560 001.

Respected Sir,
Sub: Request for compensation in respect of defective Washing Machine supplied to me by Messrs. ABC Electronics, Bengaluru

With reference to the above subject, I would like to bring to your kind notice that I have purchased a fully automatic washing machine of reputed brand from ABC Electronics, shop situated at #24, M.G. Road, Bengaluru for Rs. 24,000/- on 5th August, 2018.

While I am using the washing machine, one day it suddenly stopped functioning. I restarted it, still it wouldn’t function. I informed the trader about malfunctioning of my washing machine. He in turn reported the matter to the company, asking them to look into the malfunctioning and set it right. He also gave me the telephone no. of the manufacturing company’s service department. I have called them several times. Later I have sent a letter explaining the situation and informing that it is newly bought item with full warranty. Neither the shop which supplied the machine nor the company which manufactured the washing machine bother to look into my complaint.

Finally I decided to approach Consumer Forum for redressal of my grievances and against arrogant behaviour of the shop as well as the manufacturer. Please find enclosed:

  1. Copy of the bill
  2. Copy of the warranty
  3. Copies of my letter to the Shop and the company

I appeal to the Consumer Redressal Forum to issue notices to the shop and the manufacturer, directing them to:

  1. Repair or Replace the malfunctioning machine, or
  2. Return the money paid at the time of purchase.

Kindly register the case explained above and do the needful and deliver the justice to me.
Thanking you,

Yours faithfully,
Sd/-
Harish Kumar