Test: Consumer Protection - 2 - Commerce MCQ

It is important that every consumer having a knowledge of every product or every things which are use in daily routine life. Every small knowledge protect the consumer from malpractices by the sellers. It's helps the consumer to spend a motivated life.

Ngos are those organisations which are meant for service motive rather than profit motive. Thus it is also known as non profit organisations.

A consumer complaint can be filed by one or more consumers, any registered voluntary consumer association, the Central or State Government, heirs or legal representatives of the consumer. Where the consumer is a minor, the complaint can be filed by his parent or legal guardian.

Introduction:
A prestigious firm has the advantage of being able to raise more capital from the public due to its established reputation and credibility. This additional capital can be utilized for various purposes to benefit the firm and its stakeholders. One of the key purposes for which a prestigious firm can raise more capital is for growth.
Explanation:
Here are the reasons why a prestigious firm can raise more capital from the public for the purpose of growth:
1. Expansion:
- A prestigious firm may use the additional capital to expand its operations, such as opening new branches or entering new markets.
- This expansion allows the firm to increase its market share, reach a larger customer base, and potentially generate more revenue and profits.
2. Research and Development:
- To stay competitive in the market, a prestigious firm needs to continuously invest in research and development (R&D).
- Raising more capital enables the firm to allocate funds towards R&D activities, which can lead to the development of innovative products or services.
- These innovations can attract new customers, increase market demand, and contribute to the firm's growth.
3. Acquisitions and Mergers:
- Another growth strategy for a prestigious firm is to acquire other companies or merge with them.
- Raising more capital allows the firm to have sufficient funds to finance such strategic moves.
- Acquisitions and mergers can provide access to new markets, technologies, or talented employees, which can contribute to the firm's growth and expansion.
4. Infrastructure and Capacity Building:
- A prestigious firm may require additional capital to invest in infrastructure, equipment, or technology upgrades to enhance its production capacity.
- By improving its infrastructure and capacity, the firm can meet increasing customer demands, improve efficiency, and scale its operations, leading to growth in market share and profitability.
Conclusion:
In conclusion, a prestigious firm can raise more capital from the public for the purpose of growth. This capital can be utilized for various growth-oriented initiatives such as expansion, research and development, acquisitions and mergers, and infrastructure and capacity building. By leveraging its reputation and credibility, a prestigious firm can attract more public investment to fuel its growth and stay competitive in the market.

Rights of a consumer are protected under Consumer Protection Act, 1986

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.