CBSE Class 12 Business Studies Consumer Protection Worksheet Set B

Meaning: Consumer protection means protecting the interest of consumers.

Importance of consumer protection.

From consumer s point of view

1. Consumer Ignorance: Most of the consumers are not aware of their rights and relief available to them. It is therefore necessary to educate them and create awareness among them.

2. Unorganized Consumers: There is need to organize consumers in the form of consumer association who would take care of their interest.

3. Wide spread exploitation of consumers: Unscrupulous and unfair trade practices, such as defective and unsafe products, hoarding and black marketing etc. are wide spread. Consumers require protection against such malpractices.

From Business Point of view:

1. Long term Interest: It is in the long term interest of the business to satisfy customers. When customers are satisfied business gets repeat sales and its customer base increase.

2. Use of society’s resources: Business firms use resources of the society. Therefore they are under an obligation to supply products and services which are in public interest.

3. Social Responsibility: A businessman has responsibility towards various groups. Customer is one of the important groups because firms earn money by selling goods and services to them.

4. Government Intervention: If businessman wants to avoid intervention of government then they should not involve in unfair trade practices. Firms should voluntarily serve the needs and interests of customers.

5. Moral Justification: It is a moral duty of every business firm to take care of customer’s interest. It must avoid all types of unscrupulous and unfair trade practices.

Consumer’s Rights:

1. Right to safety: It is a consumer’s right to be protected against goods and services which are hazardous to health and life.

2. Right to Information: A consumer has a right to have complete information about the quality, quantity, price of goods, ingredients etc

3. Right to Choice: Every consumer has the right to choose the goods from a variety of products at competitive prices. Right to be heard: The consumer has the right to file a complaint and to be heard in case of dissatisfaction with a product or services.

4. Right to Seek Redressal: The consumer has a right to get relief in case the product or services falls short of his expectations. 

5. Right to consumer Education: The consumer has a right to acquire knowledge and to be a well-informed consumer throughout life.

Redressal Agencies

Consumer’s Responsibilities:

1. Be aware about various goods and services available in the market so that an intelligent and wide choice can be made.

2. Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates etc.

3. Ask for cash memo on purchase of goods and services. This would serve as a proof purchase made.

4. Be honest in your dealing. Choose only from legal sources and discourage unfair practices like black marketing, hoarding etc.

5. File a complaint in appropriate consumer forum in case of a short coming in the quality of goods purchased or services availed.

6. Respect the environment. Avoid waste, littering and contributing to pollution.

Role and functions of consumer organizations and NGOs
1. Educating to Consumers
2. Collecting data on different products and Testing them
3. Filing suit on belief if consumers
4. Helping Educational institutions
5. Promoting network of consumer association.
6. Extending support to Government

NGOs: Non-Government Organizations are those organizations which aim at promoting the welfare of the people with non-profit concept. They are taking up various aspects of consumer exploitation.

Very Short Answer Type Questions

Question. Government is actively advertising for ‘Jago Grahaks Jago’. Which consumer right is highlighted in the given statement?
Answer: Right to consumer education.

Question. The approach of Caveat Emptor has been changed to Caveat Venditor. What do the two approaches mean? Why such a radical change has taken place?
Answer: The approach of Caveat Emptor means let the buyer beware and approach of caveat venditor means let the seller be ware. The change has taken place because a consumer is said to be a king in the current competitive market and all the marketing efforts of a firm revolve around him.

Question. If the market has enough qualities and varieties of product at competitive prices, then buyer have an opportunity of wise selection. Identify the consumer right discussed.
Answer: Right to choose.

Question. Identify the products to which the following quality certification marks are associated.
Also mention the name of quality mark.
Answer: (i) food products (FPO marks );
(ii) Electrical appliances (ISI mark);
(iii) Jewellery (Hallmark);
(iv) Environmental friendly products (Eco mark);
(v) Agriculture products (Agmark).

Question. Mili went to a shopkeeper to buy vegetable oil. The shopkeeper forced her to buy a particular brand out of various available brands. Which right of Mile has been exploited?
Answer: Right to choose.

Question. Ramesh purchased medicines without noticing a date of expiry. He did not obtain cash memo. Do you think, Ramesh will be able to protect himself by loss caused due to expired medicine?
Answer: No, Ramesh will not be able to protect himself as he didn’t obtain the proof of purchase, i.e. cash memo.

Question. Mention the quality mark which a consumer should look for while purchasing the following products:
(i) Electrical goods; (ii) Jewellery; (iii)Agriculture products;
(iv) Food products; (v) Environmental friendly products.
Answer: (i) ISI marks; (ii) Hallmarks; (iii) Agmark;
(iv) FPO mark; (v) Eco mark.

Question. Why consumer protection is important for consumers? Give any one reason.
Answer: It is important because of ‘consumer ignorance’.

Question. Which act provides for the setting up of three tier machinery?
Answer: Consumer Protection Act, 1986.

Question. Which consumer right entitles the consumer to get relief in case the product or service falls short of his expectation?
Answer: Right to seek redressal.

Question. Name the right, Which suggests that a consumer has a right to register his dissatisfaction?
Answer: Right to be heard.

Question. Which can serve as the proof of purchase made, for filing a complaint against defective product?
Answer: Cash memo.

Question. Rita wants to buy a packet of juice. As an aware customer how can she be sure about the quality of juice she plans to buy?
Answer: Rita should look for FPO Mark on the packet of juice.

Question. Pragya brought an iron of a reputed brand for Rs. 1,500 but it caused an electric shock while it was being used. Pragya wants to exercise her ‘Right’.
Identify the ‘Right ‘under which he can be protected.
Answer: Right to Safety.

Short Answer Question

Question. Hari shankar purchase a book for Rs. 250. Later on, he found that MRP of book was Rs.
200 only and the shopkeeper had put a sticker of Rs. 250 on the original MRP. Answer the following question:
(i) Which right of Hari shankar is violated in the given case?
(ii) Can he recover the extra money?
(iii) Whether any option is available against the book seller?
Answer:
(i) Right to be informed is violated;
(ii) Yes, Hari shankar can recover extra money of Rs. 50;
(iii) Hari shankar also has more option:
(a He can ask for refund of money after returning the book;
(b) He can also sue bookseller for unfair practices.

Question. What is the role of consumer organizations and non-government organizations? Describe.
Answer: Role of consumer organizations and non-government organizations-
7. Educating to Consumers
8. Collecting data on different products and Testing them
9. Filing suit on belief if consumers
10. Helping Educational institutions
11. Promoting network of consumer association.
12. Extending support to Government

Long Answer Type Questions

Question. What is the concept of consumer protection? Give importance of consumer protection.
Answer: Meaning: Consumer protection refers to protecting the consumer against anti-consumer trade practices by the producers or sellers.
Importance of consumer protection.
From consumer s point of view
1. Consumer Ignorance: Most of the consumers are not aware of their rights and relief available to them. It is therefore necessary to educate them and create awareness
among them.
2. Unorganized Consumers: There is need to organize consumers in the form of consumer association who would take care of their interest.
3. Wide spread exploitation of consumers: Unscrupulous and unfair trade practices, such as defective and unsafe products, hoarding and black marketing etc. are wide spread.
Consumers require protection against such malpractices.
From Business Point of view:
1. Long term Interest: It is in the long term interest of the business to satisfy customers.
When customers are satisfied business gets repeat sales and its customer base increase.
2. Use of society’s resources: Business firms use resources of the society. Therefore they are under an obligation to supply products and services which are in public interest.
3- Social Responsibility: A businessman has responsibility towards various groups.
Customer is one of the important groups because firms earn money by selling goods and services to them.

Question. What are Rights of consumers? Explain.
Answer: Right to safety: It is a consumer’s right to be protected against goods and services which are hazardous to health and life. Ex- Electrical Appliances which are not ISI marked might cause serious injury.
1. Right to Information: A consumer has a right to have complete information about the quality, quantity, price of goods, ingredients etc. which he intends to purchase.
Thus manufacturer must mention complete information about the product.
2. Right to Choice: Every consumer has the right to choose the goods from a variety of products at competitive prices. The marketers must allow consumers to make a choice from a wide variety of product.
3. Right to be heard: The consumer has the right to file a complaint and to be heard in case of dissatisfaction with a product or services.
4. Right to Seek Redressal: The consumer has a right to get relief in case the product or services falls short of his expectations.
5. Right to consumer Education: The consumer has a right to acquire knowledge and to be a well-informed consumer throughout life.

Question. What remedies are available to consumers in consumer’s protection Act-1986?
Answer: Under this Act, remedies available to consumers are as follows:
1. To remove the defect in goods or deficiency in service.
2. To replace defective product with a new non defective product.
3. To refund the price paid for the product or the charge paid for the service.
4. To pay reasonable compensation for loss or injury suffered by the consumer due to negligence of the opposite party.
5. To discontinue unfair or restrictive trade practice and not to repeat in the future.
6. Not to offer hazardous goods for sale.

Question. What is the responsibilities of consumers?
Answer: Consumer responsibilities-
1. Consumer must exercise his rights: They must be aware of their rights while buying.
2. Consumers should buy only standard goods like ISI/AGMARK goods only.
3. Filing complaint for the redressal of genuine grievances.
4. Consumer must be quality conscious / should not compromise on quality.
5. Consumers should learn the risks associated with products and services.
6. Do not forget to get receipt and Guarantee / Warranty Card.
7. Consumers should read labels carefully.
8. Consumers should be honest in their dealings. They should buy only legal goods.
9. Consumers should respect environment. Avoid waste, littering and contributing to pollution.
10. Consumers should form consumer societies.

Question. What are the ways and means of consumer’s protection?
Answer: Ways and Means of Consumer protection
a) Self regulation by business: Every firm insists to have a strong consumer base which means that more and still move people should buy their products. This is possible only when the consumers are fully satisfied with the products of the firm.
b) Business Associations: Business associations prepare a code of conduct for businessmen.
c) Consumer Awareness : Consumer should protect himself
d) Consumer organizations: these organizations can force business firms to avoid malpractices and exploitation of consumers.
e) Government: Interests of the consumers are protected by the government by enacting various legislations. Consumer protection Act 1986 is an important legislation by the government to provide protection to the affected consumer.

Question. Explain the redressal machinery under the consumer protection Act,1986.
Answer: The redressal machinery under the consumer protection Act,1986-
a) District forum: According to consumer protection Act state government can set up one or more district forum in each district.
1) District forum hears disputes involving a sum up to Rs. 20 Lacs.
2) It can file appeal against it with the state commission within 30 days.
b) State commission:
1) State commission redresses grievances involving a sum exceeds Rs. 20 lacs and up to Rs. 1 crore.
2) It can file an appeal before the national commission within 30 days.
c) National commission :
1) It is appointed by the Central Government
2) It has the jurisdiction to hear complaints involving a sum exceeding Rs. 1 crore.
3) It can file an appeal with the Supreme Court within 30 days.

Important Questions for NCERT Class 12 Business Studies Consumer Protection

Question. Which of the following is a consumer organisation?
(a) Common Cause, New Delhi
(b) Voice, New Delhi
(c) Consumer Forum, Udipi
(d) All of these

Answer : D

Question. The consumer must be assured whenever possible access to a variety of goods and services at competitive prices. 
a. Right to Consumer Protection Act
b. Right to choose
c. Right to safety
d. Right to be heard
Answer : B

Question. The consumer provides to approach the government and dspublic bodies when decision and policies are made which can hamper consumer interests. 
a. Right to safety
b. Right to be heard
c. Right to Consumer Protection Act
d. Right to consumer education.
Answer : B

Question. When does false representation that the goods are of the particular standard, quality is termed as: 
a. Restricted trade practices
b. Unfair trade practices
c. Caveat emptor
d. Caveat Vendittor
Answer : A

Question. What does false representation that the goods arte of the particular standard, quality is termed as : 
a. Unfair trade practices
b. Spurious goods and services
c. Restrictive trade practice
d. Defect
Answer : A

Question. Which mark is suitable for eco-friendly products? [R]
a. Eco-mark
b. Agmark
c. Hallmark
d. ISI Mark
Answer : A

Question. Identify the importance of consumer protection according to consumers point of view. [R]
a. Consumer ignorance
b. Government interverntion
c. Moral justification
d. Social responsibility
Answer : A

Question. Disputes of ________ amount are settled at the level of District Forum?
(a) Upto rupees ten lakh
(b) Upto rupees thirty lakh
(c) Upto rupees fifty lakh
(d) Upto rupees twenty lakh

Answer : D

Question. ________ is not a part of the three tier judicial machinery?
(a) Tehsil Forum
(b) District Forum
(c) State Commission
(d) National Commission

Answer : A

Question. Which of the following is importance of consumer protection in the view of business: [R]
a. Unorganized consumers
b. Consumer ignorance
c. Moral justification
d. Unorganized consumers
Answer : C

Question.Rights of consumer protection are protected under :
(a) CPA, 1988
(b) CPA, 1986
(c) CPA, 1982
(d) CPA, 1984
Answer : B

Question. Which is not the certification for quality assurance ?
a. ISI mark 
b. MRI mark
c. Hall mark
d. AG mark
Answer : B

True or False

1) “Let the buyer beware” has now been changed to “Let the seller beware”.  True.
2) Each state commission must have one women as its member. True,
3) Right to Education is one of the consumer right. True
4) The scope of Consumer Protection Act is applicable to big undertakings, private sector and co-operative sector only . False , 
5) Redressal through Consumer Protection Act is expensive and slow way of solving their grievances.  False , 
6) Consumer Protection Act provides 5 consumer rights to help in getting their grievances redressed. False , 
7) Consumer Protection Act only covers goods manufactured in India.  False , 
8) BIS Hallmark is standard for agricultural products. False , 
9) The consumers has the forced to choose from the available variety of products.  False 
10) Consumer Protection Act only includes educating consumers about their rights and responsibilities.  False ,
11) Business firms should aim at long-term profit maximization through customers satisfaction. True
12) NGOs does not take initiative in filing cases in consumer courts in the internet of general public. False 
13) NGO's doesn';t file complaint in consumer courts on the behalf of consumers. False 
14) Resale goods are covered under CPA. True
15) Services provided by a lawyer or doctor are covered under CPA. True

Question. Mr. Verma who was a vegetarian went to a snack bar for having French fries and later found out that it had non-vegetarian content. Neither the advertisement nor the packing of the product displayed that the product has non-vegetarian content. Will Mr. Verma be able to claim compensation which right of the consumer is violated here?
Answer: In the given case there is violation of the consumer right to know .Acc. to the amendment of the regulations in weight and measurement Act.(2000) every product should explicitly bear a green dot for vegetarian ingredients while brown reveals that non-vegetarian ingredients have been used. It is also mandatory to show the dot on advertisements electronic or press and all posters, banners, stunts etc. hence Mr. Bharti would be able to claim the compensation.

Question As a well informed consumer. what kind of quality certification marks you will. Look for before buying ‘products? Specify any 6.
Answer: Some of the quality certification marks are:
(1) FPO( Fruit Products Order 1955) – It contains specification and quality control requirements regarding the production and marketing of processed fruits and vegetables ,sweetened aerated water, vinegar and synthetic syrups.
(2) ISI- On consumer durable products.
(3) Hall mark- BIS certification scheme for gold jewellery items.
(4) Earthen Pitcher –For Labeling Environment friendly products.
(5) AGMARK – It is a grade standard for agricultural commodities and like
Stock products.
(6) Wool mark- It signifies 100% pure wool.

Question. A shopkeeper sold you some spices, claiming that they were pure. Later a laboratory test formed that those were adulterated what precautions should you have taken before buying and what remedies are available to you for the wrong act?
Answer: We should have been conscious about quality and should obtain cash memo from the seller while purchasing goods. The remedies available are:
(1) Getting the product replaced
(2) Getting the refund of the price
(3) Compensation.

Question.As a well-informed consumer, what kind of quality certification marks you will look for before buying ‘products? Specify and 6 points. 
Answer: Some of the quality certification marks are:
1)FPO (Fruit Products Order 1955) – It contains specification and quality control requirements regarding the production and marketing of processed fruits and vegetables, sweetened aerated water, vinegar and synthetic syrups.
2)ISI– On consumer durable products. ISI mark is a certification mark for industrial products in India. It is the most popular and recognised certification mark in the Indian subcontinent. This mark ensures that the product conforms to the Indian standards mentioned by the Indian Standard Institute.
3)Hallmark– BIS certification scheme for gold jewellery items.
4)Earthen Pitcher- for Labelling Environment-friendly products.
5)AGMARK – It is a grade standard for agricultural commodities and like stock products.
6)Wool mark– It signifies 100% pure wool.

Question Name any two NGO’s engaged in protecting and promoting consumer’s interest.
Answer: (a) Consumer co ordination council ,Delhi
(b) Consumers Association, Kolkata .

Question  Saroj wants to file a complaint where the value of goods or services in question along with the compensation claimed amounts to 25 lakhs.
Answer: State Commission.

CONSUMER PROTECTION KEY WORDS
1 Consumer : Person who consume the product.
2 Consumer rights : Actions in favour of consumer.
3 Right to Safety : Protect against harmful goods or services.
4 Right to be Heard : To listen the complaint of consumer.
5 Right to Choose : Choice of consumer to buy the product.
6 Right to Information : Giving information about product.
7 Right to Seek Redressal : Place to put the complaint against harmful product.
8 Right to Education : Giving information about rights of consumer.
9 Redressal Machinery : Place to complain- District Commission, State Commission, National Commission
10 Remedies : Reliefs against the complaint.
11 Responsibilities : Actions to be taken by consumers.

Protecting consumers from unfair trade practices, adopted by the producers and sellers of goods and services is termed as consumer protection. It not only includes educating consumers about their rights and responsibilities, but also helps in getting their grievances redressed. Generally consumers are explaited by (1) Adulteration (2) Poor quality etc.

Importance of Consumer Protection
(from Consumer’s point of view)
1. Consumers’ Ignorance: Majority of consumers are not aware of their rights and reliefs available to them as a result of which they are exploited.
In order to save consumers from exploitation, consumer protection is needed.
2. Unorganised Consumers: In India consumers are still unorganised and there is lack of consumer organisations also, thus consumer protection is required.
3. Widespread Exploitation of Consumers: Consumers are exploited on large scale by means of various unfair trade practices and consumer protection is required to protect them from exploitation.

Importance of Consumer Protection (from the point of view of Business)
Traditional Approach
Caveat Emptor
(Let the buyer beware) Modern Approach Caveat Venditor
(Let the seller beware)

Market–Consumer=Zero
1. Long term Business Interest: It is always in the interest of the business to keep its customer satisfied. Global competition could be won only after satisfying customers. Satisfied customers lead to repeat sales and help in increasing customer base of business.
2. Moral Justification: It is the moral duty of any business to take care of consumer interest & avoid any form of their exploitation & unfair trade practices like defective & unsafe products, adulteration, false and misleading advertising, hoardings, black marketing etc.
3. Business uses resources of society: Every business uses the resources of the society and thus it is their responsibility to work in the interest of the society.
4. Social Responsibility: A business has social responsibilities towards various groups like owners, workers, government, customers etc. Thus, customers should be provided qualitative goods at reasonable prices.
5. Government Intervention: If a business engages in any form of unfair trade practices then government takes action against it, which adversely affects its goodwill.

CONSUMER PROTECTION ACT, 1986 (CPA, 1986)

Meaning of Consumer
Consumer Protection Act 1986 was introduced to make consumers aware about their rights and to give them legal protection. According to it consumer is defined as follows.
1. Any person who buys any goods for a consideration. It includes any user of such goods with the approval of the buyer. But it does not include a person who obtains goods for resale or any commercial purpose.
2. Any person who avails any services for a consideration. It includes any beneficiary of such services but it does not include a person who avails such service for any commercial purpose.

Meaning of Consumer Protection

CPA, 1986 defines consumer protection as
1. To protect and promote the interest of consumers by recognising consumer’s rights such as right to safety, right to be informed, right to choose, right to be heard, right to seek redressal and right to consumer education.
2. To provide for a simple, speedy and inexpensive redressal of consumer grievances by setting a 3-Tier enforcement machinery.

Rights of a Consumer
Consumer Protection Act, 1986 has provided six rights to the consumers, which are as follows:

1. Right to Safety: Consumer has the right to be protected against products, & services which are hazardous to health & life (should use ISI marked electronic devices.
2. Right to be Informed: Consumer has right to have complete information about the product before buying it.
                                                                                                        Manufacturing Date (20th Aug., 2016)
                                                                                                        Price (Rs. 35)
                                                                                                        Quantity (330 ml)
                                                                                                        Expiry Date (Best before Jan., 2017)
3. Right to choose: Consumer has a right to choose any product out of the available products as per his own decision making.
4. Right to be heard: Consumer has the right to file a complaint to be heard in case of dissatisfaction with goods or services (use of grievance cell)
5. Right to Seek Redressal: Consumer has the right to get relief in case the product or service falls short of his expectations or is dangerous. He may be provided with replacement/removal of defect or compensation for any loss. Various redressal forums are set up by the Govt. at National and State level.
6. Right to consumer education: Consumer has the right to acquire knowledge and to be well informed throughout life. He should be made aware of his rights and reliefs available to him in case of the product or service falls short of his expectations. The Govt. of India has included consumer education in
the school curriculum & is making use of media to make consumers aware of their rights.

Responsibilities/Duties of a Consumer
1. Consumer must exercise his rights: Consumers must be aware of their rights with regard to the products or services they buy from the market.
2. Consumer must be a Cautious consumer: While buying a product or services, a consumer should read labels carefully.
3. Consumer must file a complaint in an appropriate forum in case of any shortcoming in product/service availed.
4. Consumer must insist on cash memo i.e a proof of purchase is required to file a complaint.
5. Consumer must be quality conscious. He should ask/look for ISI mark on electric goods. FPO mark on food products, Hall mark on jewellery etc.
6. Consumer must bring the discrepancy in the advertisement to the notice of the sponsor.
7. Consumer must exercise his legal right. If any of these rights is violated by manufacturer or seller, the consumers must file a complaint with the legal machinery constituted under CPA, 1986.

THE SALIENT FEATURES AND PROVISIONS OF CONSUMER PROTECTION ACT, 1986

                        Who Can File A Complaint Under CPA, 1986

A complaint before the appropriate consumer forum can be made by:
1. Any consumer.
2. Any registered consumer association.
3. The central or state government.
4. One or more consumers on behalf of numerous consumers having same interest.
5. A legal heir or representative of a deceased consumer.

Against whom can a complaint be filed?
Consumer Protection Act, 1986 is applicable to all types of undertakings, whether big or small, private or public, or in co-operative sector, manufacturer or a trader, wholesaler or retailer, supplying goods or providing services.

Thus, a complaint can be filed against:
1. The seller, manufacturer or dealer of defective goods. Defect means any fault, imperfection or shortcoming in the quality, quantity or purity of goods.
2. The provider of services if they are deficient in any manner. Deficiency means any imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of services.

REDRESSAL AGENCIES UNDER CONSUMER PROTECT ACT, 1986

For the redressal of consumer grievances the act provides a three–tier machinery as:

Note: Only those cases can be reappealed before Supreme Court which were originally filed in national commission and amount of claim is more than ` 1 crore

REMEDIES AVAILABLE TO CONSUMERS
1. To remove the defect in goods or services.
2. To replace the defective product with new one free from defect.
3. To refund the price paid for the product/service.
4. To pay compensation for the loss or injury suffered by the consumer due to product/service.
5. To discontinue the unfair trade practice and not to repeat them.
6. To withdraw the hazardous goods from sale.
7. To pay any amount (not less than 5% of value of defective goods) to any person, consumer organisation.

Role of Consumer organisations and NGO’s
1. Educating the general pubic about consumer rights by organising training programmes, seminars and workshops.
2. Publishing periodical & other publications to educate consumers.
3. Providing legal assistance to consumers by providing legal advice etc.
4. Producing films or cassettes on food adulteration, misuse of drugs etc.
5. Filing complaints in appropriate consumer courts on behalf of consumers.
6. Encouraging consumers to take on action against unfair trade practices.
7. Taking an initiative in filing cases in consumer courts on behalf of consumers.

Scope of Consumer Protection Act
The Act applies to all goods and services of any kind other than for commercial purposes provided by any sector - private, public or co-operative. It also covers public utility services.
Any ultimate consumer or registered association of consumers, state and central government can file a complaint under the Act. Complain can be filed either personally or by post. There is no fee for filing a complaint.
The complaint may relate to defect in the goods, deficiency in service, price variation and unfair trade practice.

Ways and Means of Consumer Protection
1. Government: Protects the interest of consumers by enacting various legislations like CPA, 1986, Sale of Goods Act 1930, Bureau of Indian Standard 1986 etc. Consumer Protection Act provides for a three-tier machinery at the district, state & national level for speedy & inexpensive redressal of consumer grievances.
2. Consumer Organisation: Force business firms to avoid mal practices & exploitation of consumers.
3. Business Association: The associations of trade, Commerce & business like federation of Indian Chambers of Commerce (FICCI), Confederation of Indian Industries (CII) have laid down their code of conduct for their members in their dealings with the customers.

Important Questions for NCERT Class 12 Business Studies Consumer Protection

Question. Which one of the following is the agency that develops standards for goods and services in India?
a. COPRA c. National consumer court
b. Consumer Protection Council
c. National consumer court
d. Bureau of Indian Standards

Answer : D

Question. ________ is an example of the unfair trade practice?
(a) Hoarding
(b) Issuing a gift scheme
(c) Not observing prescribed standards
(d) All of these

Answer : D

Question. Don’t purchase in haste’, this is an important ________ of the consumer.
(a) Responsibility
(b) Right
(c) Act
(d) All the above

Answer : A

Question. The consumer organisations collect the samples of the products for ________ .
(a) Sell them
(b) Check them
(c) Get bribe from the sellers
(d) Distribute them among the poor

Answer : B

Question. Which of the following does not fall under consumer rights.
(a) Right to be informed
(b) Right to choose
(c) Right to present the consumer court
(d) Right to seek government help

Answer : C

Question. Which consumer right provides a safeguard for consumers against goods and services which are hazardous to health.
(a) Right to safety
(b) Right to choose
(c) Right to be informed
(d) Right to be heard

Answer : A

Question. Which consumer right provides the adequate and accurate information about quality, quantity, purity standard and the price of the goods and services.
(a) Right to choose
(b) Right to be heard
(c) Right to be informed
(d) Right to consumer education

Answer : B

Question. Which consumer right provides a fair settlement of genuine grievances relating to the performance, grade, quality etc. of goods and services.
(a) Right to safety
(b) Right to consumer education
(c) Right to seek redressal
(d) Right to choose

Answer : C

Question. Which consumer right empowers consumers to fight against any unfair trade practices.
(a) Right to safety
(b) Right to consumer education
(c) Right to be heard
(d) Right to choose

Answer : B

Question. Which of the following is not a description of a consumer?
a. Any person who buys goods for a consideration which has been paid or promised.
b. A person who obtains goods for re-sale purpose.
c. Any person who avails any service for a consideration which has been partly paid.
d. Any person who hires any service for a consideration which has been partly promised.

Answer : B

Question. In which of the forum, it is mandatory to include a woman as a member of the forum:
a. District Forum
b. State Commission
c. National Commission
d. All of the above

Answer : D

Question. Which consumer right refers to acquiring of knowledge and be a well-informed consumer throughout life?
a. Right to be informed
b. Right to be heard
c. Right to consumer education
d Right to choose

Answer : C

Question. What is the complete nomenclature of ‘District Forum’? 
a. District Consumer Dispute Redressal Forum
b. District Consumer Redressal Forum
c. District Consumer Forum
d. None of the above

Answer : A

True or False

1) CPA is not fruitful for producers. False
2) Only government educate consumers about their consumer rights. False, 
3) NGO's carried out comparative rests of products to test relative qualities.  True
4) NGO's provide workshops, training programmes for educating consumer. True
5) To achieve consumer awareness, it is necessary to educate them. True
6) A complaint can be made to the District Forum when the value of goods or services in question along with the compensation claimed, does not exceed Rs 30 lakhs. False.
7) Each State Commission must have one woman as its member. True
8) A legal heir or representative of a deceased consumer cannot file a complaint in consumer forum. False
9) Under Consumer Protection Act, a consumer is defined as a person who obtains goods for re-sale or any commercial purpose. False
10) An order passed by the National commission in a matter of its original jurisdiction is appealable before the Supreme Court. True.
11) A consumer has the responsibility to learn about the risks associated with products and services. True
12) Right to seek redressal, suggests the business firms to set up their own consumer service and grievance cell. False
13) Under Consumer Protection Act, a complaint can be filed by a consumer only for a defective good. False
14) National commission is the apex institution under Consumer Protection Act, 1986. True

Question .The state commissions are set up in each state by ___________________
a) State Government
B) High court
C) Supreme court
D) Central Government
Answer: 
a)State Government
Explanation:
The state commissions are set up in each state by State Government.
Each State Commission consists of a President and not less than two other members, one of whom should be a woman.
They are appointed by the State Government concerned.
A complaint can to be made to the appropriate State Commission when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore.
The appeals against the orders of a District Forum can also be filed before the State Commission.

Question .Which consumer right entitles the consumer to get relief in case the product or service falls short of his expectations?
Answer: Right to Seek Redressal.

Question. Sirajuddin purchased a car for Rs.15 lacs from an automobile company and found that its airbags were defective. After many complaints with the company that went unheard, he filed a case in the District Forum. He was not satisfied with the orders of the District Forum. He then appealed before the State Commission and on being dissatisfied with the orders of State Commission, he appealed before the National Commission. Sirajuddin was not satisfied with the orders of National Commission. Suggest him the highest authority where he could appeal against the decision of the National Commission. 
Answer: Sirajuddin cannot appeal to any other higher authority. This is because only those matters which have been directly filed in the National Commission and where the value of goods and services in question along with the compensation claimed exceed Rs.1 crore are appealable before Supreme Court. Their main function centers on maintaining the trade practices that are offered by the seller to the consumers. Consumers are free to file a case against the seller if they have been exploited or harassed which in this sirajuddin has been done.

Question ..What roll can you as a student play to contribute to the cause of consumer protection? 
Answer: A student can play an active role in bringing out an awareness campaign on ‘Consumer Protection’.
Special assemblies can organised to show the display of consumer rights and responsibilities e.g. right to satisfaction of basic needs, right to safety, right to be informed and protected, responsibility to be aware of the quality and safety of goods and services before purchasing, responsibility to Think Independently and make choices about well considered needs and wants etc.
1)When school organises any exhibition the commerce students can put a stall and give demonstration on responsibilities of a consumer.
2)The Biology and Chemistry laboratories can be used for testing adulterated goods, (e.g., milk, paneer, spices etc).
3) Essay writing competitions, debate competition and quiz can be organised to promote the awareness on consumer protection.
4) Encourage students to boycott goods/eatables which are adulterated or defective in school canteen.
5)To set up voluntary complaint centre for consumer guidance and counselling.

Question. Abhishek bought a bottle of disinfectant spray from the nearby market. It had a knob which was to be opened in a particular way. However, there was no instruction on its package in this regard. Therefore, when he tried to open the knob in a casual way, some of the spray flew in his eyes. This affected his vision.
In context of the above case: Name the rights of consumer being violated by the company.
State any two directions which the consumer court can issue to the company after being satisfied with the genuineness of the complaint.
Answer: The two rights of consumer being violated in the above case are Right to information and Right to safety.
The two directions which the consumer court can issue to the company after being satisfied with the genuineness of the complaint are as follows:
Not to offer hazardous goods for sale.
To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the marketer.