This page contains the NCERT Business Studies class 12 chapter 11 Consumer Protection from Part 2 Business Finance and Marketing. You can find the solutions for the chapter 11 of NCERT class 12 Business Studies, for the Short Answer Questions, Long Answer Questions and Projects/Assignments Questions in this page. So is the case if you are looking for NCERT class 12 Business Studies related topic Consumer Protection question and answers.
Very Short Answer Type
1. Under which consumer right does a business firm set up consumer grievance cell?
Under the “Right to be heard,” the consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. Many enlightened business firms have set up their own consumer service and grievance cells to address this right.
2. Which quality certification mark is used for agricultural products?
The quality certification mark used for agricultural products is “AGMARK.”
3. What is the jurisdiction of cases that can be filed in a State Commission?
The State Commission has a jurisdiction to entertain complaints where the value of goods and services paid as consideration exceeds one crore rupees but does not exceed ten crore rupees.
Note:Based on the previous Consumer Protection Act, 1986. In that Act, the State Commission had the jurisdiction for cases where the value was between 20 lakhs and 1 crore rupees. However, based on the Consumer Protection Act 2019, which has updated the jurisdiction limits to between 1 crore and 10 crores, as provided in the answer.
4. State any two relief available to consumers under CPA.
1.
Removal of defects from the goods.
2.
Replacement of the goods.
5. Name the component of product mix that helps the consumer to exercise the right to information.
The component of the product mix that helps the consumer to exercise the right to information is the “quality certification” of the product.
Short Answer Type
1. Enumerate the various Acts passed by the Government of India which help in protection of consumers’ interests.
The following are the various legislations passed by the Government of India for the protection of consumers’ interests:
1.
The Consumer Protection Act, 2019: This Act provides for a central authority to regulate matters relating to violation of rights of consumers, unfair trade practices, and false or misleading advertisements prejudicial to the interests of consumers. It establishes the Central Consumer Protection Authority (CCPA).
2.
Standards of Weights and Measures Act: This Act ensures that consumers get the value for the money they have paid.
3.
Agricultural Produce (Grading and Marking) Act (AGMARK): This Act ensures quality products to consumers, especially in the agricultural sector.
4.
Prevention of Food Adulteration Act: This Act ensures pure and healthy food to consumers by setting standards for food products and ensuring they are met.
5.
Essential Commodities Act: This Act ensures the delivery of essential commodities to consumers, especially during times of shortages or emergencies.
6.
Bureau of Indian Standards Act: This Act ensures quality goods to consumers by setting standards for various products and certifying them with the ISI mark.
7.
Monopolies and Restrictive Trade Practices Act (MRTP Act): This Act ensures that the consumers are protected from monopolistic, restrictive, and unfair trade practices.
These legislations are aimed at ensuring that consumers are protected from unfair trade practices, receive quality products, and are not exploited by businesses. They provide a framework for addressing consumer grievances and ensuring that businesses adhere to ethical and quality standards.
2. What are the responsibilities of a consumer?
The following are the responsibilities of a consumer:
1.
Be Aware: Be informed about various goods and services available in the market to make an intelligent and wise choice.
2.
Buy Standardized Goods: Opt for standardized goods, such as those with the ISI mark on electrical goods, FPO mark on food products, and Hallmark on jewelry, as they assure quality.
3.
Safety and Risk Awareness: Understand the risks associated with products and services, follow the manufacturer’s instructions, and use products safely.
4.
Read Labels Carefully: Read labels to gather information about prices, net weight, manufacturing and expiry dates, and other relevant details.
3. Who can file a complaint in a consumer court?
The following individuals/entities are entitled to file a complaint in a consumer court.
1.
Individual Consumer: Any consumer who has faced unfair trade practices, received defective goods, or experienced deficiency in services can file a complaint.
2.
Voluntary Consumer Association: Any registered consumer association, regardless of whether the aggrieved person is a member of such association or not.
3.
Central or State Government: Either the Central or State Government can act in the interest of consumers and file a complaint.
4.
Legal Representatives: In cases where the consumer is a minor or is unable to represent themselves, a legal representative or parent can file a complaint on their behalf.
4. FSSAI (Food Safety and Standards Authority of India) has made a proposal for hotels and other food outlets to declare the kind of oil/fat used in cooking each of the food items on their menus. Name and explain the Consumer Right being reinforced by this proposal.
Right to be informed: This consumer right ensures that consumers have the right to have complete information about the product or service they intend to use or purchase. This includes details about its ingredients, date of manufacture, price, quantity, directions for use, etc. By proposing that hotels and food outlets declare the type of oil/fat used in cooking, FSSAI is reinforcing the consumer’s right to be informed, ensuring they have all the necessary information to make an informed decision about their food choices.
5. Who is a consumer as per CPA?
Under the Consumer Protection Act 2019, a consumer is defined as a person who buys any goods or avails services for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. This includes any user of such goods or beneficiary of services if such use is made with the approval of the buyer. The definition applies to both offline and online transactions through various means such as electronic, teleshopping, direct selling, or multilevel marketing. However, individuals who obtain goods or services for resale or commercial purposes are not considered consumers under this Act.
Long Answer Type
1. Explain the importance of consumer protection from the point of view of a business.
Consumer protection holds significant importance for businesses for several reasons:
1.
Long-term Interest of Business: Enlightened businesses understand that it is in their long-term interest to satisfy their customers. Satisfied customers not only lead to repeat sales but also provide positive feedback to potential customers, thereby increasing the customer base.
2.
Business Uses Society’s Resources: Business organizations utilize resources that belong to society. As a result, they have a responsibility to supply products and render services that are in the public interest and maintain public confidence in them.
3.
Social Responsibility: Businesses have social responsibilities towards various interest groups. Since businesses make profits by selling goods and providing services to consumers, it is imperative to ensure that the interests of these consumers are well taken care of.
4.
Moral Justification: It is the moral duty of any business to cater to the consumer’s interest and avoid any form of exploitation. This means businesses should refrain from unscrupulous, exploitative, and unfair trade practices like selling defective products, false advertising, hoarding, black marketing, etc.
5.
Government Intervention: Businesses that engage in exploitative trade practices risk government intervention or action. Such actions can tarnish the company’s image and reputation.
By emphasizing consumer protection, businesses not only ensure ethical practices but also build trust and loyalty among their customers, which is crucial for long-term success.
2. Explain the rights and responsibilities of consumer?
Consumer Rights:
1.
Right to Safety: Consumers have the right to be protected against goods and services that are hazardous to life, health, and property. For instance, electrical appliances should meet safety norms to prevent injury.
2.
Right to be Informed: Consumers should receive complete information about a product, including its ingredients, manufacturing date, price, quantity, and usage directions.
3.
Right to be Assured: Consumers should have access to a variety of products at competitive prices, ensuring they have choices in terms of quality, brand, and other factors.
4.
Right to be Heard: If dissatisfied with a product or service, consumers have the right to file a complaint and be heard. Many businesses have set up consumer service and grievance cells for this purpose.
Consumer Responsibilities:
1.
Be Aware: Consumers should be informed about the various goods and services available in the market to make wise choices.
2.
Buy Standardized Goods: It’s advisable to purchase standardized goods, such as those with the ISI mark on electrical goods, FPO mark on food products, and Hallmark on jewelry, as they assure quality.
3.
Understand Risks: Consumers should be aware of the risks associated with products and services and use them safely, adhering to the manufacturer’s instructions.
4.
Read Labels Carefully: Labels provide essential information about products, such as prices, net weight, and manufacturing and expiry dates. Consumers should read them meticulously.
5.
Assert Yourself: Consumers should ensure they get a fair deal and should ask for a cash memo upon purchase, which serves as proof of the transaction.
6.
Be Honest: Consumers should choose only legal goods and services and discourage unscrupulous practices like black-marketing and hoarding.
3. What are various ways in which the objective of consumer protection can be achieved?
The following are various ways in which the objective of consumer protection can be achieved
1.
Self-regulation by Business: Ethical and socially responsible firms often adhere to high standards and practices when dealing with their customers. Recognizing the long-term benefits of maintaining customer trust, many businesses have established customer service and grievance cells to address and redress consumer issues and concerns.
2.
Business Associations: Trade, commerce, and business associations, such as the Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII), have established codes of conduct for their members. These guidelines ensure that businesses deal fairly and ethically with their customers.
3.
Consumer Awareness: Educating consumers about their rights and responsibilities is crucial. An informed consumer is better equipped to make wise purchasing decisions and can effectively voice concerns or complaints when faced with unfair practices.
4.
Consumer Organizations: Consumer organizations play a pivotal role in educating and protecting consumers. By organizing training programs, seminars, and workshops, these organizations empower consumers and help them safeguard their interests.
5.
Government Initiatives: The government plays a crucial role in consumer protection by enacting laws and regulations that safeguard consumer interests. For instance, the Consumer Protection Act 2019 was established to address consumer grievances and protect their rights. The government also runs awareness campaigns, like the “Jago Grahak Jago” initiative, to educate consumers about their rights and responsibilities.
6.
Role of NGOs: Non-Governmental Organizations (NGOs) and consumer organizations work towards the welfare of consumers. They educate the public about consumer rights, assist in grievance redressal, and work towards the overall protection and promotion of consumer interests.
4. Explain the redressal mechanism available to consumers under the Consumer Protection Act, 2019
The Consumer Protection Act, 2019, provides a comprehensive redressal mechanism to address consumer grievances. This mechanism is structured as a three-tier enforcement machinery at the District, State, and National levels:
1.
District Consumer Disputes Redressal Commission (District Commission):
–
This is the primary level of redressal, set up in each district.
–
It has the jurisdiction to entertain complaints where the value of goods or services paid as consideration does not exceed one crore rupees.
–
If, during the hearing, the District Commission identifies potential elements of settlement acceptable to both parties, it can direct them to consider mediation.
2.
State Consumer Disputes Redressal Commission (State Commission):
–
Established at the state level.
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Handles cases that exceed the jurisdiction of the District Commission but are within its own defined monetary limits.
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It also acts as an appellate authority for cases decided by the District Commission within the state.
3.
National Consumer Disputes Redressal Commission (National Commission):
–
Set up by the Central Government.
–
It addresses cases that exceed the monetary jurisdiction of the State Commission.
–
Additionally, it serves as the appellate authority for cases decided by the State Commission.
Setting up of Consumer Mediation Cell:
The Consumer Protection Act of 2019 introduced a mediation process as an alternate dispute resolution mechanism. This provision is present at all three levels – National, State, and District. These mediation cells are attached to their respective commissions and aim to provide a faster and more efficient method of dispute resolution.
The objective of this three-tier redressal mechanism is to provide consumers with an accessible, efficient, and effective means to address and resolve their grievances against unfair trade practices, defective goods, or deficiencies in services.
5. Explain the role of consumer organisations and NGOs in protecting and promoting consumer’s interest.
Consumer Organisations and NGOs play a pivotal role in safeguarding and advancing the interests of consumers. Their roles can be summarized as follows:
1.
Educating the Public: One of the primary roles of consumer organisations and NGOs is to educate the general public about their rights as consumers. They organize training programs, seminars, and workshops to raise awareness about consumer rights and the mechanisms available for redressal of grievances.
2.
Assisting in Redressal: These organizations assist consumers in seeking redressal for their grievances. They guide consumers on how to file complaints, represent them in consumer courts, and provide legal advice.
3.
Research and Investigation: Consumer organizations often undertake research and investigations into various products and services available in the market. They test products for quality and safety and publish their findings, helping consumers make informed choices.
4.
Lobbying for Consumer Rights: NGOs and consumer organizations lobby with the government and policymakers to frame laws and regulations that protect consumer interests. They play a crucial role in ensuring that consumer rights are at the forefront of policy decisions.
5.
Spreading Awareness: Through campaigns, advertisements, publications, and other mediums, these organizations spread awareness about malpractices like adulteration, false advertising, and other unfair trade practices.
6.
Networking: Consumer organizations and NGOs often collaborate with international consumer groups to share information, strategies, and best practices. This global networking helps in strengthening consumer movements and ensuring that consumers get the best protection possible.
7.
Acting as Watchdogs: These organizations act as watchdogs, keeping a close eye on the market and business practices. They alert consumers about fraudulent practices, recalls, and other issues that may affect their rights and interests.
By performing these roles, consumer organizations and NGOs ensure that the rights of consumers are protected, and they are not exploited by businesses. Their relentless efforts have led to better business practices, more informed consumers, and a more just marketplace.
6. Mrs. Mathur sent a jacket to a laundry shop in January 2018. The jacket was purchased at a price of `4,500. She had previously sent the jacket for dry cleaning with Shine Dry Cleaners and the jacket was cleaned well. However, she noticed that her jacket had white discoloration marks when she collected the jacket this time. On informing the dry cleaner, Mrs. Mathur received a letter confirming that discolouration indeed appeared after the jacket was dry cleaned. She contacted the dry cleaner multiple times and requested for compensation for discoloured jacket but to no avail.
Upon Consumer court’s intervention, Shine Dry Cleaners agreed to compensate Rs. 2,500 to Mrs. Mathur for the discoloured jacket.
(a)
Which right was exercised by Mrs. Mathur at the first instance.
(b)
Name and explain the right which helped Mrs. Mathur to avail the compensation.
(c)
State which consumer responsibility has been fulfilled by Mrs. Mathur in the above case.
(d)
State any other two responsibilities to be assumed by the consumers.
(a) Which right was exercised by Mrs. Mathur at the first instance?
At the first instance, Mrs. Mathur exercised her “Right to Redressal” when she approached the dry cleaner to inform them about the discolouration and sought compensation.
(b) Name and explain the right which helped Mrs. Mathur to avail the compensation.
The right that ultimately helped Mrs. Mathur to avail the compensation is also the “Right to Seek Redressal.” This right ensures that consumers have the ability to seek compensation or a remedy for any harm caused by goods or services. With the intervention of the Consumer court, Shine Dry Cleaners agreed to compensate her, thereby fulfilling her right to redressal.
(c) State which consumer responsibility has been fulfilled by Mrs. Mathur in the above case.
Mrs. Mathur fulfilled her consumer responsibility by filing a complaint in an appropriate consumer forum when a flaw in the quality of goods and services purchased was discovered.
(d) State any other two responsibilities to be assumed by the consumers.
1.
Be Aware: Consumers should be informed about the various goods and services available in the market to make wise choices.
2.
Read Labels Carefully: Consumers should read labels meticulously to have information about prices, net weight, manufacturing and expiry dates, etc.
Project work
1. Visit a consumer organisation in your town. List down the various functions performed by it.
Functions of Consumer Organisations:
1.
Educating the General Public: Consumer organisations play a vital role in educating the public about their consumer rights. They organise training programmes, seminars, and workshops to raise awareness.
2.
Publishing Periodicals: They publish periodicals and other publications to impart knowledge about consumer problems, legal reporting, available reliefs, and other matters of interest.
3.
Comparative Testing: Consumer organisations carry out comparative testing of consumer products in accredited laboratories. They test the relative qualities of competing brands and publish the results for the benefit of consumers.
4.
Encouraging Protests: These organisations encourage consumers to protest strongly against unscrupulous, exploitative, and unfair trade practices of sellers.
5.
Providing Legal Assistance: They provide legal assistance to consumers by offering aid, legal advice, etc., in seeking legal remedies.
6.
Filing Complaints: Consumer organisations take the initiative to file complaints in appropriate consumer courts on behalf of the consumers.
7.
Initiating Cases for Public Interest: They take an initiative in filing cases in consumer courts in the interest of the general public, not just for any individual.
2. Collect some newspaper cuttings of some consumer cases and the rulings given therein.
Steps to Follow:
1.
Local Newspapers: Start by checking local newspapers, especially the business or local news sections. They often cover consumer cases, especially if they are significant or involve a well-known business.
2.
Online News Portals: Many newspapers have online versions. Websites like Times of India, The Hindu, Hindustan Times, etc., have archives where you can search for specific topics.
3.
Library Archives: Visit your local library. They often keep archives of old newspapers, and the librarian can guide you on how to search for specific topics.
4.
Consumer Forums: Check the official websites or publications of consumer forums or consumer rights organizations. They often publish significant rulings or cases.
5.
Legal Websites: Websites that focus on legal news, such as Live Law or Bar & Bench, might cover significant consumer court rulings.
6.
Document Your Findings: Once you find relevant cases, make sure to document the case’s details, the parties involved, the main issues, the court’s ruling, and any other relevant details.
7.
Analysis: After collecting the cases, provide a brief analysis of each. Discuss the significance of the ruling, its impact on consumer rights, and any broader implications for the business community or society at large.
Remember to always cite your sources and give credit to the original publishers when presenting your findings.