CBSE Class 12 Business Studies Consumer Protection Worksheet Set B

KEY CONCEPTS IN NUTSHELL:
Meaning : Consumer protection refers to protecting the consumer against anti-consumer trade practices by the producers or sellers.

IMPORTANCE OF CONSUMER PROTECTION :
1. Business is a means of human welfare
2. Growth with social justice
3. Single vs Multiple objectives
4. Stake holders of society / moral justification.
5. Power centre / social responsibility
6. Self interest
7. Ethical obligations
8. Public support
9. Consumer is the purpose of the business long-term interest of business

CONSUMER RIGHTS:
1. Right to safety
2. Right to be informed
3. Right to choose
4. Right to be heard
5. Right to Consumer Education
6. Right to Healthy Environment

CONSUMER PROTECTION ACT 1986:
a) Under this Act, remedies available to consumers are as follows :
1. Removal of Defects
2. Replacement of Goods
3. Refund of Price
4. Award of compensation
5. Removal of Deficiency in service
6. Discontinuous of unfair / Restrictive Trade practice

CONSUMER RESPONSIBILITIES
1. Consumer must exercise his rights: They must be aware of their rights while buying.
2. Cautions consumer / do not buy blindly.
3. Filing complaint for the redressal of genuine grievances.
4. Consumer must be quality conscious / should not compromise on quality.
5. Because of false advertisement
6. Do not forget to get receipt and Guarantee / Warranty Card.

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) 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.

Various remedies available to the consumers for redressing their grievances 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 upto 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. 30 lacs and upto 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 Centrla 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

Ride of Consumer Organisations and Non-Government Organisations (NGO‟s)
1. Education Consumers
2. Collecting data on different products and Testing them
3. Filing suit on belief if consumers
4. Help[ing Educational institutions
5. Promoting network of consumer association.
6. Extending support to Government

NGOs : Non-Government Organisations 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.
a) Consumer co-ordinating councils
b) Role of the press
c) Role of Universities / Schools

Legal protection to consumers :
a) The Consumer Protection Act 1986
b) The Contract Act 1982
c) The Sale of Goods Act 1930
d) The Essential Commodities Act 1955
e) The Agricultural produce (Grading and Makijng) Act 1937
f) The Prevention of Food Adulteration Act 1954
g) The Standards of Weights and Measures Act 1976
h) The Trade Marks Act 1999
i) The Competition Act 2002
j) The Bureau of Indian Standards Act 1986.

Sub Topic: Against whom a complaint can 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.

Consumer Protection Act, 1986 defines deficiency as “any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service”.
The term service includes any service that is not rendered free of charge.
The term deficiency has been applied differently to different sectors; For example, in the banking sector, acts such as delay in issuing a cheque book, non encashment of a cheque and delay have been held to be deficiency and whereas in the medical sector, courts are not as liberal and count only gross negligence as deficiency. The courts have however been proactive in holding that even departments such as the housing boards are liable for any deficiency in services rendered.