CBSE Class 12 Business Studies Consumer Protection Part A

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Chapter – XI

(A) Consumer Protection

2 questions of 6 marks come as choice

Giving any 6 points, explain the IMPORTANCE for consumer protection?

Business is a means of human welfare:

Business serves the customer and therefore it is a means and not an end in itself. 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.

Growth with social justice:

We are a secular country and growth with social justice is the cornerstone of our economic philosophy.

Exploitation of consumers is against the directive principles of State Policy laid down in our Indian Constitution. Stakeholder approach:

The success and survival of business depends on the efforts made by all stakeholders such as consumers, shareholders, employees, government, and the public. Therefore for its survival and growth business must work for the interest of the stakeholders in general and consumers in particular. 

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 and serve the interest of a few persons only.

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 satisfy a customer and without customer satisfaction no business can survive for long and will be out beaten by competition from multinationals.

Moreover, Government has enacted laws to protect the interest of the consumers. Hence if a firm violates the laws they are likely to lose their goodwill and clients permanently.

Ethical obligations:

Business without ethical values is nothing but a criminal activity and no civil society will tolerate a business without ethical values for long.

(½ mark for naming each point and ½ mark for each explanation)

Explain in brief any six rights of consumers as provided under the Consumer Protection Act, 1986 – 6 marks Important


Explain the following rights: (6 marks) – Any 3 will be asked

Clue: CHISER – choice, heard, informed, safety, education, redressal.

Right to choose

The consumer has the right to be assured of a choice of various goods and services of satisfactory quality and competitive price.

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


Please refer to attached file for CBSE Class 12 Business Studies Consumer Protection Part A



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