Consumer Protection NCERT Solutions | Business Studies (BST) Class 12 - Commerce PDF Download

Very Short Answer Type Questions

Q2: Which quality certification mark is used for agricultural products? 
Ans: Agmark

Q3: What is the jurisdiction of cases that can be filed in a State Commission?
Ans: Cases where the value of goods or services paid as consideration exceeds ₹1 crore but does not exceed ₹10 crore.

Q4: State any two relief available to consumers under CPA.
Ans: (i) To remove the defect in goods or deficiency in services.
(ii) To refund the price paid for the product or charges paid for the service.

Q5: Name the component of product mix that helps the consumer to exercise the right to information. 
Ans: Labelling

Short Answer Type Questions

• The Consumer Protection Act, 1986: This law offers protection to consumers against faulty products, poor services, and unfair business practices. 
• The Contract Act, 1982: This act outlines the rules that make the promises in a contract binding for both parties. 
• The Sale of Goods Act, 1930: This law provides protections and remedies for buyers when the products they purchase do not meet the stated conditions or warranties. 
• Essential Commodities Act, 1955: This act is aimed at regulating the production, distribution, and pricing of essential goods. 
• The Agricultural Produce Act, 1937: This act sets quality standards for agricultural products and livestock. 
• The Prevention of Food Adulteration Act, 1954: This law seeks to prevent the contamination of food items to ensure their purity, thus protecting public health. 
• The Standards of Weights and Measures Act, 1976: This act protects consumers from fraudulent practices related to underweight or under-measured goods. 
• The Trade Marks Act, 1999: This law stops the use of fake trademarks on products, helping to protect consumers from being misled. 
• The Competition Act, 2002: This act safeguards consumers from business practices that harm competition in the marketplace. 
• The Bureau of Indian Standard Act, 1986: This bureau's main functions include setting quality standards for products and certifying them through the BIS certification scheme. It also has a grievance cell where consumers can file complaints about the quality of products that carry the ISI mark.

Q2: What are the responsibilities of a consumer? 
Ans: Know about different goods and services in the market to make smart decisions. 

• Purchase only standardized products because they ensure quality. Look for the ISI mark on electrical items, FPO mark on food, and Hallmark on jewelry, etc. 
• Understand the risks related to the products and services you use. 
• Read labels carefully to find important details like prices, weight, manufacturing dates, and expiry dates. 
• Stand up for yourself to get a fair deal when buying. 
• Be honest in your transactions. Choose only legal goods and services. 
• Always ask for a cash memo when you buy goods and services. This serves as proof of your purchase. 
• If you experience any issues with the quality of purchased goods or services, file a complaint with the appropriate consumer forum. 
• Form consumer societies that can help educate people and protect their interests. 
• Respect the environment by avoiding waste, not littering, and reducing pollution. 

Q3: Who can file a complaint in a consumer court?
Ans: A complaint can be made by

1. Any consumer.
2. Any registered consumer’s association.
3. The Central Government or any State Government.
4. One or more consumers. on behalf of numerous consumers having the same Interest.
5. A legal heir or representative of a deceased consumer.

Q4: 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. 
Ans: The proposal made by FSSAI reinforces the consumer right to information. This right ensures that consumers have access to accurate, clear, and transparent information about the products they purchase or consume. By requiring hotels and food outlets to declare the kind of oil or fat used in cooking each food item on their menus, consumers can make informed choices based on their dietary preferences, allergies, or health considerations. This initiative empowers consumers to make healthier choices by being aware of the types of oils or fats used in the preparation of their food. For example, individuals who are conscious about their cholesterol levels can opt for dishes cooked in healthier oils, while those with allergies or dietary restrictions can avoid foods prepared with certain types of fats. Overall, by providing such information, the proposal enhances consumer awareness and enables them to make decisions aligned with their preferences and health goals, thereby promoting their right to information and ensuring their well-being.

Q5: Who is a consumer as per CPA?
Ans: According to the Consumer Protection Act (CPA), a consumer is defined as any person who: 

1. Buys any goods for a consideration that has been paid or promised, or partly paid and partly promised, or under any system of deferred payment, and includes any user of such goods other than the person who buys such goods for consideration paid or promised, or partly paid, or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or 
2. Hires or avails of any services for a consideration that has been paid or promised, or partly paid and partly promised, or under any system of deferred payment, and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first-mentioned person.

Long Answer Type Questions

• Long-Term Business Goals: Companies should focus on making profits over the long run by keeping their customers happy. When customers are satisfied, they are likely to buy again and recommend the business to others, which helps grow the customer base.
• Use of Society's Resources: Businesses rely on resources that belong to the community. Therefore, they have a duty to offer products and services that benefit the public.
• Social Responsibility: Companies have a social duty to various groups. Since businesses earn money by selling goods and services, they must pay attention to consumers, who are a key part of the many groups affected by their operations.
• Moral Duty: It is the ethical responsibility of businesses to protect consumer interests and prevent exploitation. Companies should avoid practices that lead to harm, such as selling unsafe products, misleading advertising, or engaging in unfair trade practices like black marketing.
• Government Oversight: If a business exploits consumers or engages in unfair practices, it risks facing government intervention. Therefore, it is wise for businesses to adopt practices that prioritize customer needs and interests.

Q2: Explain the rights and responsibilities of consumer? 
Ans: Consumer Protection Act:

Rights of Consumers:

• Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life. e.g., sometimes we purchase food items of low quality which causes severe problems. Thus, in this case, we should purchase good quality and FPO labelled products.
• Right to be Informed: The consumer has a right to have complete information about the product which he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use etc. Under the legal framework of India, manufacturers have to provide such information on the package and label of the product.
• Right to Choose: The consumer has the freedom to choose from a variety of products. The marketers should offer a wide variety of products and allow the consumer to make a choice and choose the product which is most suitable.
• 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. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells.
• Right to Seek Redressal: The Consumer Protection Act provides a number of reliefs to the removal of defects in the product, including replacement of the product, compensation paid for any loss or injury suffered by the consumer etc.
• Right to Consumer Education: The consumer has a right to acquire knowledge about products. He should be aware of his rights and the reliefs available to him in case of a product/service falling short of his expectations. Many consumer organizations and some enlightened businesses are taking an active part in educating consumers in this respect.

Consumer Responsibilities:

• Consumer must be aware of all their rights.
• Consumer must be careful while purchasing a product.
• He should file a complaint for the redressal of genuine grievances.
• Consumer must buy a standardised good.
• He should ask for a cash-memo on purchase of goods and services.

Q3: What are various ways in which the objective of consumer protection can be achieved?
Ans: Various ways in which the objective of consumer protection can be achieved are given below:

• Self-Regulation by Businesses: Companies that act responsibly follow ethical practices in their interactions with customers. Many businesses have established customer service and complaint centers to address consumer issues and concerns.
• Business Associations: Trade and business groups, such as the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Conference of Indian Industries (CII), have created codes of conduct. These codes provide guidelines for their members on how to engage with customers.
• Consumer Awareness: A well-informed consumer understands their rights and available remedies. This knowledge enables them to speak out against unfair business practices or mistreatment.
• Consumer Organizations: These groups play a crucial role in educating consumers about their rights. They can also pressure businesses to refrain from unfair practices and protect consumers from exploitation.
• Government: The government protects consumer interests by creating laws. In India, there are several laws aimed at consumer protection, with the most significant being the Consumer Protection Act of 1986. This act establishes a three-tier system at the District, State, and National levels to resolve consumer complaints.

Q4: Explain the redressal mechanism available to consumers under the Consumer Protection Act, 2019.
Ans: The Consumer Protection Act, 2019, provides a comprehensive redressal mechanism for consumers to seek remedies in case they face issues with goods or services. Here's an overview of the redressal mechanism available under the Act:

1. District Consumer Disputes Redressal Commission (DCDRC): This is the first tier of dispute resolution. Consumers can file complaints regarding goods or services valued up to ₹1 crore ($135,000) before the DCDRC, which is located at the district level.

2. State Consumer Disputes Redressal Commission (SCDRC): If a consumer is dissatisfied with the decision of the DCDRC or if the value of the dispute exceeds ₹1 crore ($135,000), they can appeal to the SCDRC, which operates at the state level.

3. National Consumer Disputes Redressal Commission (NCDRC): The apex consumer court in India, the NCDRC, hears appeals against the orders of the SCDRC and cases involving disputes valued over ₹1 crore ($135,000). It also deals with cases that involve substantial questions of law.

4. Alternate Dispute Resolution (ADR) Mechanisms: The Consumer Protection Act encourages the use of mediation, conciliation, and arbitration as alternative methods for resolving consumer disputes. These mechanisms aim to provide quicker and less formal avenues for resolving disputes outside the traditional court system.

5. Consumer Commissions' Powers: The Consumer Protection Act empowers consumer commissions to issue various orders, such as refund of the price paid, replacement of goods, removal of defects, payment of compensation for any loss or injury suffered, discontinuance of unfair trade practices, and discontinuance of the restrictive trade practices.

6. Online Consumer Disputes Redressal: The Act recognizes the importance of online transactions and provides for the establishment of an online dispute resolution mechanism to facilitate the resolution of disputes arising from e-commerce transactions.

Overall, the Consumer Protection Act, 2019, aims to provide consumers with efficient and accessible mechanisms to seek redressal for grievances related to defective goods, deficient services, unfair trade practices, or exploitation by sellers or service providers.

Q5: Explain the role of consumer organisations and NGOs in protecting and promoting consumer’s interest. 
Ans: Consumer organisation and NGOs perform several functions for the protection and promotion of interest of consumers. In India, these associations are performing lots of functions some of them are
 

• Educating the public about their consumer rights through training programs, seminars, and workshops. 
• Publishing newsletters and other materials to inform people about consumer issues, legal updates, available solutions, and other relevant topics. 
• Conducting tests on various consumer products in certified labs to compare the quality of different brands and sharing the results to help consumers make informed choices. 
• Encouraging consumers to actively oppose and take action against unfair treatment and exploitation by sellers. 
• Providing legal help to consumers by offering assistance and legal advice when they seek justice. 
• Filing complaints in the proper consumer courts on behalf of consumers to address their grievances. 
• Initiating legal cases in consumer courts for the benefit of the general public, rather than for individual gain. 

Q6: 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. 
Questions:
(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.
Answers:
(a) Which right was exercised by Mrs. Mathur at the first instance. 
Ans: Mrs. Mathur exercised her right to seek redressal for grievances, specifically regarding the quality of service provided by Shine Dry Cleaners. 

(b)  Name and explain the right which helped Mrs. Mathur to avail the compensation. 
Ans: The right that helped Mrs. Mathur to avail compensation is the right to seek redressal. This right ensures that consumers have access to a fair and efficient mechanism to resolve disputes and seek remedies for any deficiencies in goods or services purchased. By approaching the consumer court and seeking intervention, Mrs. Mathur exercised her right to seek redressal, which ultimately led to Shine Dry Cleaners agreeing to compensate her for the discolored jacket.

(c) State which consumer responsibility has been fulfilled by Mrs. Mathur in the above case. 
Ans: Mrs. Mathur fulfilled her responsibility to be vigilant and assertive. She noticed the issue with her jacket immediately upon collection from the dry cleaner and took proactive steps to address the problem. By contacting the dry cleaner multiple times and pursuing the matter until a resolution was reached, she demonstrated diligence in asserting her rights as a consumer. 

(d) State any other two responsibilities to be assumed by the consumers.
Ans: Two other responsibilities assumed by consumers include:

1. Responsibility to be Informed: Consumers have a responsibility to gather information about the products or services they purchase, including their quality, price, and terms of service. Being informed allows consumers to make educated decisions and choose products or services that best meet their needs.

2. Responsibility to Provide Feedback: Consumers should provide feedback to businesses regarding their experiences with products or services. Whether positive or negative, feedback helps businesses improve their offerings and ensures better satisfaction for future consumers. Additionally, providing feedback can also help other consumers make informed decisions.