CBSE Class 12 Business Studies Consumer Protection Worksheet Set D

One Mark Questions :

Question: What is the monetary limit of claim in District Consumer Disputes Redressal Forum?
Answer: The monetary claim in District consumer disputes Redressal forum is upto Rs.20lakhs.

Question: What is the monetary limit of claim in National Consumer Disputes Redressal Commission?
Answer: Monetary limit of claim in National consumer disputes Redressal commission is claim exceeding Rs. 1crore.

Question: State any one regulation which provides legal protection to the consumers
Answer: The Consumer Protection Act, 1986

Question: In which year the Consumer Protection Act was enacted?
Answer: Consumer protection Act was passed in the year 1986.

Question: Who is a Consumer?
Answer: A consumer is a person who uses or consumes goods or avails of any service.

Question: State the monetary limit of claim in State Consumer Disputes Redressal Commission.
Answer: Monetary limit of claim in State consumer dispute redressal commission is exceeding Rs. 20lakhs but up to Rs. 1crore.

Question: Name any one redressal machinery/agency set up under Consumer Protection Act to redress consumer grievances.
Answer: District Consumer Disputes Redressal Forum or District forum.

Question: Name any one Consumer Organization/NGO engaged in protecting and promoting consumers’ interests.
Answer: Karnataka Consumer Service Society, Bangalore.

Question: State any one unfair trade practice of manufacturers and service providers by which consumers are exploited.
Answer: Defective and unsafe products, adulteration, false and misleading advertising, black marketing.

Two Mark Questions :

Question: Write any two Consumer Rights.
Answer: Right to Safety:
Consumer has the right to be protected against products, & services which are hazardous to health & life. E.g. ISI certification for electronic items.
Right to be informed:
Consumer has right to get true and complete information about the quality, quantity, price, contents, directions for use, date of manufacture and expiry date of goods and services which he intends to buy product before buying it .

Question: Who can file a complaint before the appropriate consumer forum? (Any two)
Answer: a. Any Consumer,
b. Any registered consumer association,
c. The central or any state government,
d. One or more consumers, on behalf of numerous consumers having the same interest, and
e. A legal heir or representative of a deceased consumer.
f. A complaint under section 2 (b) of the consumer protection Act 1986

Question: What is Consumer Protection?
Answer: Providing adequate legal protection to consumers against unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black- marketing etc. by sellers is called consumer protection. It helps the consumers to protect their physical and economic interests.

Question: State any two reasons to emphasize the importance of consumer protection from Consumers’ point of view.
Answer: Consumers Ignorance: Majority of consumers are not aware of their rights and reliefs available to them as a result of which they are continuously exploited. In order to save consumers from exploitation, consumer protection is needed.
Unorganized Consumers: In India consumers are still unorganized and there is lack of consumer organizations, they need to be protected.

Question: State any two reasons to emphasize the importance of consumer protection from the point of view of Business.
Answer: 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 thus help in increasing customer base of the business.
Business uses Resources of Society: Every business uses the resources of the society and thus it is their responsibility to quality goods and services which are in the interest of society.
Social Responsibility: A business has social responsibilities towards various groups like owners, workers, government, etc. Consumers also form an important group among the many stakeholders of business and like other stakeholders, their interest has to be taken care of.

Four Mark Questions :

Question: State any four directions which can be issued by the consumer court to the opposite party.
Answer: 
(i) To remove the defect in goods or deficiency in service.
(ii) To replace the defective product with a new one, free from any defect.
(iii) To refund the price paid for the product, or the charges paid for the service.
(iv) To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
(v) To pay punitive damages in appropriate circumstances.
(vi) To discontinue the unfair/ restrictive trade practice and not to repeat it in the future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw the hazardous goods from sale.
(ix) To cease manufacture of hazardous goods and to desist from offering hazardous services.
(x) Compensate for any loss or injury suffered by consumer under product liability action and withdraw hazardous products from being offered for sale etc

Question: Explain any four Rights of consumers.
Answer: Meaning of Consumer: A consumer is a person who uses or consumes goods or avails of any service.
Rights of consumers.
- 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 & services.
- Right to be Informed: A consumer has the right to get true and complete information about the quality, quantity, price, contents, and directions for use, date of manufacture and expiry date of the goods and services which he intends to buy.
- Right to choose: Consumer has a right to choose any product of his choice out of the available products as per his/ her own interests.
- 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).
- 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.
- Right to consumer education: According to this right, every consumer has the right to be educated about the consumer rights and reliefs available to him in case of a product or service falling short of his expectations.

Question: State any four responsibilities of consumers while purchasing, using and consuming goods and services.
Answer: Four responsibilities of consumers while purchasing, using and consuming goods and services:
- Be aware about the various products available in the market so that an intelligent and wise choice can be made.
- Buy only standardized goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewellery etc.
- Follow instructions related to the product and learn about the risks associated with products, and use it safely.
- Read labels carefully to have information about prices, net weight, manufacturing and expiry dates, etc.
- Ask for cash memo on purchase of goods or services. This would serve as a proof of the purchase made.
- Be honest in your dealings.
- File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed.
- Form consumer societies which would play an active part in educating consumers and safeguarding their interests.
- Respect the environment. Avoid waste, littering and contributing to pollutions.
- Assert yourself to ensure that you get a fair deal.

Question: Explain any four ways in which the objective of consumer protection can be achieved.
Answer:
1. Self-regulation by Business:
Socially responsible firms follow ethical standards and practices in dealing with their customers Good and ethical practices encourage firms to realize that it is in their long-term interest to serve the customers in a rightful manner. Many firms have set up 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 of India (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 Jago Grahak Jago campaign, for generating awareness among consumers.
4. Consumer Organizations:
Consumer organizations play an important role in educating consumers about their rights and providing protection to them. These organizations 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 1800114000 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, 2019. The Act provides for a central authority to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of consumers. This is known as Central Consumer Protection Authority (CCPA). Three-tier machinery at the district, state and national levels for redressal of consumer grievances.

Question: State any four functions of Consumer Organizations and NGOs for the protection and promotion of consumer interests.
Answer: 
(i) Educating the general public about consumer rights by organizing training programmes, seminars and workshops.
(ii) Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.
(iii) 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.
(iv) Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers.
(v) Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking legal remedy.
(vi) Filing complaints in appropriate consumer courts on behalf of the consumers.
(vii) Taking an initiative in filing cases in consumer courts in the interest of the general public, not for any individual.
(viii) Consumer unity and Trust Society (CUTS), Jaipur.

Practical Oriented Question :

Question: As an exploited consumer, write a complaint letter to your nearest District Consumer Forum claiming reasonable redressal.
Answer:
Date 31.08.2018
From
Harish Kumar
#1234, 3d 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 fly 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.
[9:45 PM, 2/21/2022] Naga Bro: 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 bothers to look into my complaint.
Finally I decided to approach Consumer Forum for redressal of my grievances and against arrogant behavior 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