All questions of Consumer Protection for Commerce Exam

Yes,, Answer is C.,, Explanation .. 1) It shall consist of president, who is or has been a judge of the supreme court and four the members appointed by the central govt., one of whom shall be women.. 2)An order pass by the National Commission is appealable before the supreme court. THANKYOU VERY MUCH..

Non profit organisation

It's B right to safety bcoz this logo is only use in which thing which is not harm anybody

The Sale of Goods Act 1930. ... A contract for sale of goods has, however, certain peculiar features such as, transfer of ownership of the goods, delivery of goods rights and duties of the buyer and seller, remedies for breach of contract, conditions and warranties implied under a contract for sale of goods, etc.

The Consumer Protection Act, 1986 is a legislation that aims to protect the interests of consumers in India. It provides for the establishment of consumer courts and the redressal of consumer grievances. Any person who is a consumer as per the definition provided by the Act can file a complaint under the Consumer Protection Act, 1986.

Who can file a complaint?

The following entities are eligible to file a complaint under the Consumer Protection Act, 1986:

1. Any consumer: A consumer who has purchased goods or availed services for his personal use or consumption is eligible to file a complaint under the Act. The Act defines a consumer as any person who buys any goods or hires any services for a consideration.

2. Any registered consumers association: A consumers association that is registered under the Companies Act, 1956 or any other law for the time being in force can file a complaint under the Act. The association should have a minimum of ten members who are consumers.

3. A legal heir of a deceased consumer: In case a consumer has passed away, his legal heir or representative can file a complaint under the Act.

Conclusion

In conclusion, any person who falls under the definition of a consumer as per the Consumer Protection Act, 1986 is eligible to file a complaint. This includes any consumer, registered consumers association, or legal heir of a deceased consumer. It is important for consumers to be aware of their rights and take necessary steps to protect themselves from unfair trade practices. The Consumer Protection Act, 1986 is an important legislation that empowers consumers and ensures that their grievances are addressed in a timely and effective manner.

To provide cheap, speedy and simple redressal to consumer disputes, quasi-judicial machinery is set up at each District, State and National levels called District Forums, State Consumer Disputes Redressal Commission and National Consumer Disputes Redressal Commission respectively. 

Right to be informed

The right to be informed is one of the fundamental rights of consumers. It means that consumers have the right to be provided with accurate and complete information about the products and services they are buying. In this case, consumers can ask anything regarding the date of manufacture, price, quantity, etc. This is an example of the right to be informed.

Explanation

The right to be informed ensures that consumers can make informed decisions about what they are buying. It requires that manufacturers and sellers provide consumers with accurate and complete information about their products and services. This includes information about the price, quantity, date of manufacture, ingredients, and any potential risks associated with the product.

In this case, consumers have the right to ask for information about the date of manufacture, price, quantity, etc. This information can help consumers make informed decisions about whether or not to buy a particular product. For example, if a consumer is concerned about the freshness of a product, they can ask for information about the date of manufacture to ensure that it is not expired.

Conclusion

In conclusion, the right to be informed is an essential consumer right that allows consumers to make informed decisions about what they are buying. Consumers have the right to ask for information about the products and services they are considering buying, and manufacturers and sellers have a responsibility to provide accurate and complete information. In this case, consumers can ask for information about the date of manufacture, price, quantity, etc., which is an example of the right to be informed.

The detailed solution is as follows:
Introduction:
The Consumer Protection Act, 1986 is a legislation enacted by the Government of India to protect the rights and interests of consumers. It aims to provide a fair and efficient redressal mechanism for consumer grievances and ensures that consumers have access to goods and services of acceptable quality.
Key provisions of the Consumer Protection Act, 1986:
1. Right to Safety: Consumers have the right to be protected against goods and services that are hazardous to life and property. They can seek compensation for any harm caused due to defective products or services.
2. Right to Information: Consumers have the right to obtain accurate and complete information about the goods and services they purchase. They should be informed about the quality, quantity, price, and other relevant details.
3. Right to Choose: Consumers have the right to choose from a variety of goods and services at competitive prices. They should not be forced to buy a particular product or service.
4. Right to be Heard: Consumers have the right to be heard and have their grievances addressed. They can file complaints and seek redressal for any unfair trade practices or deficiencies in goods and services.
5. Right to Redressal: Consumers have the right to seek a speedy and effective remedy. They can approach consumer courts or forums to resolve their complaints and claim compensation.
6. Right to Consumer Education: Consumers have the right to be educated about their rights and responsibilities. They should be aware of the laws and regulations related to consumer protection.
7. Right to Representation: Consumers have the right to be represented in consumer forums or courts. They can seek legal assistance or engage a representative to present their case.
Conclusion:
The Consumer Protection Act, 1986 plays a crucial role in safeguarding the rights of consumers. It empowers consumers to seek justice and claim compensation for any harm or injustice they may face in the marketplace. By ensuring fair trade practices and promoting consumer welfare, this act contributes to a more equitable and transparent consumer market.

Assertion and Reasoning in Commerce: Indian Chambers of Commerce

Assertion (A): Indian Chambers of Commerce of India is a pressure group.

Reason (R): The institution deals with bread guideline for consumer welfare.

Explanation:

• Assertion (A) is true as Indian Chambers of Commerce is a non-governmental organization that represents the interests of business and industry in India. It is primarily a pressure group that works towards promoting and safeguarding the interests of its members.


• Reason (R) is partially true. The Indian Chambers of Commerce does not deal with bread guidelines for consumer welfare. However, it does work towards the welfare of consumers by promoting fair trade practices and ethical business conduct among its members.


• Therefore, both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

Conclusion: Indian Chambers of Commerce is a pressure group that works towards promoting and safeguarding the interests of its members while also promoting fair trade practices and ethical business conduct among its members for the welfare of consumers.

The correct answer is option 'C', the right to be heard.

Explanation:
The right to be heard is one of the fundamental rights of consumers. It ensures that consumers have the opportunity to voice their concerns and dissatisfaction regarding goods or services they have purchased. This right enables consumers to file a complaint and have their grievances addressed by the relevant authorities and businesses.

Here is a detailed explanation of the right to be heard:

1. Definition: The right to be heard means that consumers have the right to express their opinions, feedback, and complaints regarding the goods or services they have acquired. It ensures that consumers are not ignored or overlooked when they face issues with the products or services they have purchased.

2. Filing a complaint: If a consumer is dissatisfied with a product or service, they have the right to file a complaint. This can be done through various channels, such as customer service hotlines, complaint forms, or online platforms. Consumers can provide details of their grievances, including the nature of the problem, the product or service in question, and any supporting evidence.

3. Addressing grievances: Once a complaint is filed, it is essential for the consumer to be heard and for their concerns to be taken seriously. Businesses or relevant authorities should provide a prompt and appropriate response to address the consumer's grievances. This may involve providing a solution, compensating for any damages, or taking corrective measures to rectify the issue.

4. Consumer redressal forums: In case the consumer's complaint is not adequately resolved by the business, there are consumer redressal forums or consumer courts that can be approached. These forums ensure that consumers have a platform to present their case and seek a fair resolution. The right to be heard empowers consumers to take legal action if necessary.

5. Importance: The right to be heard is crucial for consumer protection. It ensures that consumers have a voice and are not taken advantage of by businesses. It allows for the timely resolution of complaints and helps maintain trust between consumers and businesses. Additionally, it encourages businesses to improve their products and services based on consumer feedback.

In conclusion, the right to be heard is a vital consumer right that enables individuals to file complaints and have their grievances addressed. It ensures that consumers are not left unheard and helps in resolving issues related to goods or services.

Assertion: The MRTP Act is enacted to prevent monopoly in the market.
Reason: Monopoly is not good for any economy.

The correct answer is option A, which states that both the assertion and reason are true, and the reason is the correct explanation of the assertion.

Explanation:
MRTP Act:
- The MRTP Act, also known as the Monopolies and Restrictive Trade Practices Act, was enacted in India in 1969.
- The primary objective of the MRTP Act was to prevent the concentration of economic power and curb monopolistic and restrictive trade practices.
- It aimed to promote fair competition, protect consumers' interests, and ensure a level playing field for all market participants.

Assertion (A): The MRTP Act is enacted to prevent monopoly in the market.
- This assertion is true. The MRTP Act was specifically enacted to prevent the creation and abuse of monopolies in the market.
- Monopoly refers to a situation where a single firm or a group of firms have control over the supply of a particular product or service, giving them the power to set prices and limit competition.
- The MRTP Act aimed to prevent the establishment of such monopolies, which can lead to market distortions, unfair practices, and exploitation of consumers.

Reason (R): Monopoly is not good for any economy.
- This reason is also true. Monopoly is generally considered detrimental to an economy for several reasons:
- Lack of competition: Monopolies restrict competition, leading to reduced innovation, lower quality of products or services, and limited choices for consumers.
- Higher prices: Monopolistic firms can set prices at their discretion, often leading to higher prices for consumers.
- Inefficiency: Monopolies may lack the motivation to be efficient and innovative since they face limited competition.
- Barriers to entry: Monopolies can create barriers to entry for new firms, limiting market entry and stifling entrepreneurship.

Explanation of the Reason:
- The reason provided in the statement correctly explains why the MRTP Act was enacted.
- Monopolies are generally considered detrimental to economies due to the negative impacts mentioned above.
- By preventing the creation and abuse of monopolies, the MRTP Act aimed to promote healthy competition, protect consumer interests, and foster economic growth.

Therefore, both the assertion and reason are true, and the reason provides a correct explanation of the assertion.

For the redressal of consumer grievances, the Consumer Protection Act 2019 provides for setting up of a three-tier enforcement machinery at the District, State, and the National levels, known as the District Consumer Disputes Redressal Commission, State Consumer Disputes Redressal Commission, and the National Consumer Disputes Redressal Commission.

Explanation:

Consumer Responsibility not followed by the residents:
- Following manual instructions: The residents of Rishab's colony failed to follow the manual instructions which specified cleaning the mosquito rackets every month. This led to the rackets becoming faulty and unusable within two months.
By not adhering to the manual instructions, the residents neglected their responsibility as consumers to properly maintain the product they purchased. This negligence ultimately resulted in the malfunction of the rackets, causing inconvenience and dissatisfaction among the residents.
It is important for consumers to carefully read and follow the instructions provided by the manufacturer to ensure the longevity and proper functioning of the product. In this case, had the residents cleaned their rackets as instructed, they may have been able to avoid the issues they faced and still have functional rackets.

To put a stop to adulteration and corrupt practices of the manufacturers and traders, it is the duty of every consumer to be conscious of the quality of product they buy. They should look for the standard quality certification marks like ISI, Agmark, FPO, Woolmark, Eco-mark, Hallmark, etc. while making the purchases.

Cash memo is often referred as a paid bill for cash sales. It is a document stating cash received for the goods sold. Documents issued for purchased goods for cash is known as cash memo. A document issued by a trader for credit purchases is known as credit memo.

According to the Right of the Consumer Awareness, the consumer has the right to represent him or to be heard or right to advocate his interest. In case a consumer has been exploited or has any complaint against the product or service then he has the right to be heard and be assured that his/her interest would receive due consideration. Under this right, the companies must have complaint cells to attend the complaints of customers.

The States Reorganisation Commission (SRC) was a body constituted by the Central Government of India in 1953 to recommend the reorganisation of state boundaries. In 1955, after nearly 2 years of study, the Commission recommended that India's state boundaries should be reorganised to form 14 states and 3 union territories.States Reorganisation Commission consisted of Fazal Ali, K. M. Panikkar and H. N. Kunzru. Some of its recommendations were implemented in the States Reorganisation Act of 1956

Hallmark

Right to be Protected: To have a constitutionally protected right means that even the govemment cannot interfere with acts of that kind, not even by passing laws against that kind of conduct, not even if the exercise of that right means the loss of other values.

A consumer organisation/association is a membership-based non-governmental non-profit body created to promote the interests of consumers of goods and services, by disseminating information and lobbying for laws to protect consumers against producers or sellers, who may usually be better organised or have more resources.

Explanation:

Supreme Court of India's Jurisdiction:
- The Supreme Court of India is the highest judicial authority in the country.
- It primarily deals with constitutional matters and disputes between the Centre and States or between States.

Consumer Protection Act and Supreme Court:
- The Consumer Protection Act provides a three-tier machinery for redressal of consumer grievances.
- The Supreme Court generally does not entertain direct appeals from aggrieved consumers under the Consumer Protection Act.

Hierarchy of Courts:
- The hierarchy of courts in India starts from the District Courts, moving up to the High Courts and finally the Supreme Court.
- The Supreme Court is the court of last resort and generally deals with matters of constitutional importance or legal significance.

Appellate Process:
- Sameer went through the three-tier machinery under the Consumer Protection Act before deciding to appeal in the Supreme Court.
- Each tier has its own appellate process, and the Supreme Court is usually not the next step after tier three.

Conclusion:
- In Sameer's case, the Supreme Court may not entertain his appeal directly as the Consumer Protection Act provides for a specific appellate process through the three tiers.
- Sameer may need to explore other legal options or avenues for seeking redressal for his consumer grievance.

The Act has defined the criteria of Consumer Disputes Redressal Commission (CDRCs). The National CDRC will hear complaints worth more than ₹ 10 crores. The State CDRC will hear complaints when the value is more than ₹ 1 crore but less than ₹ 10 crore. While the District CDRC will entertain complaints when the value of goods or service is upto ₹ 1 crore.

State Commission
Sameer approached the tier two authority, which is the State Commission, under The Consumer Protection Act. The State Commission is the second level of the three-tier machinery established to address consumer grievances and disputes. Here, consumers can appeal against the orders of the district commission if they are not satisfied with the decision.

Role of State Commission
- The State Commission has the authority to hear appeals from the district commission and has a wider jurisdiction covering cases involving higher amounts.
- It is responsible for adjudicating on consumer complaints that are beyond the jurisdiction of the district commission.
- The State Commission plays a crucial role in providing justice to consumers and ensuring that their rights are protected under the Consumer Protection Act.

Sameer's Action
After being dissatisfied with the orders at the district commission level, Sameer decided to escalate the matter and appeal before the State Commission. This step was taken to seek a fair resolution to the issue he was facing with the faulty suspension of his car purchased from 'Lance Motors'.

Outcome
By approaching the State Commission, Sameer hoped to receive a just decision that would address his concerns and provide a suitable remedy for the faulty product he had purchased. The State Commission serves as an important platform for consumers like Sameer to seek redressal for their grievances and ensure that their consumer rights are upheld.

The basic aim of the Consumer Protection Act, 2019 is to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes.

Assertion (A): Income tax is governed by the CBDT in India.
Reason (R): Income tax is an indirect tax.

Explanation:
The given assertion states that income tax is governed by the CBDT (Central Board of Direct Taxes) in India. The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963. It is responsible for the administration of direct taxes in India, including income tax.

The reason provided states that income tax is an indirect tax. However, this reason is incorrect. Income tax is actually a direct tax, not an indirect tax. Direct taxes are imposed directly on individuals or entities, while indirect taxes are imposed on the production, sale, or consumption of goods and services.

Direct Taxes:
Direct taxes are levied directly on the income, wealth, and profits of individuals and corporations. These taxes are paid directly to the government by the taxpayer. Examples of direct taxes include income tax, corporate tax, wealth tax, and capital gains tax. Income tax is one of the most significant direct taxes in India, and it is levied on the income earned by individuals and entities.

Indirect Taxes:
Indirect taxes, on the other hand, are levied on the production, sale, or consumption of goods and services. These taxes are not directly paid by the individuals or entities on whom they are imposed but are passed on to the consumers through the prices of goods and services. Examples of indirect taxes include goods and services tax (GST), excise duty, customs duty, and sales tax.

Conclusion:
Based on the explanation above, it can be concluded that Assertion (A) is true as the CBDT is responsible for governing income tax in India. However, Reason (R) is false as income tax is a direct tax and not an indirect tax. Therefore, the correct answer is option 'C' - A is true, but R is false.

The Consumer Protection Act, 1986, defines Right to Information as 'the right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices'.

The Commission is headed by a sitting or retired Judge of the High Court. The Commission is presently headed by Hon'ble Mrs. Justice Daya Chaudhary, former Judge of the Punjab and Haryana High Court. State Commission deals with the consumer complaints where the value of goods or services paid as considered exceeds Rs.One Crore but upto Rs.Ten Crore, filed by the consumers under the Act. State Commission acts as Appellate Authority under Section 41 and Section 47 of Consumer Protection Act, 2019.

The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc. It is because of this reason that the legal framework in India requires the manufactures to provide such information on the package and label of the product.

The consumer should ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.

In case aggrieved party is not satisfied with the order of the District Commission, he can appeal before the National Commission within 30 days of the passing of order.

Consumers need to be organised in the form of consumer organisations which would take care of their interests.

The main objectives of the Competition Act, 2002 are: to prevent monopolies and to promote competition in the market. to protect the freedom of trade for the participating individuals and entities in the market. to protect the interest of the consumer.

A complaint can be made to the appropriate District Commission when the value of the goods and services in question along with the compensation claimed, does not exceed ₹ 1 crore.

The Consumer Protection Act, 2019 has defined the criteria of Consumer Disputes Redressal Commission (CDRCs). The District CDRC will entertain complaints when the value of goods or services is upto ₹ 1 crore.