Previous Year Short Questions With Answers - Consumer Protection Commerce Notes | EduRev

Business Studies (BST) Class 12

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Q. 1. Explain briefly any two points of importance of consumer protection from the point of view of business. [Delhi, OD Set I, II, III 2018-19]
Ans.
Importance of Consumer protection from the point of view of business :
(If an examinee has not given the headings as above but has given the correct explanation, full credit should be given)
Detailed Answer :Two points of importance of consumer protection from the point of view of business.
(i) Long term interest of the business : In the competitive environment, the businessman can win and capture a big share in the market only through consumer satisfaction. Those who ignore the interest and satisfaction of consumers may loose their goodwill and clients
(ii) Social Responsibility : Just like other stakeholders, towards consumers also, businessmen has got social responsibility to provide quality goods at reasonable price. Consumer protection guides businessmen to fulfil social responsibility towards consumers
(iii) Government Intervention : If businessmen want to avoid intervention of Government then they should not involve in unfair trade practices and exploitative practices towards consumers.

Q. 2. Aarushi buys a packet of dry cake from a cake shop without asking for the bill. The pack does not bear any information other than the name of shop. After reaching home she finds the cake to be stale.
(i) Identify the consumer right that has been violated.
(ii) State any three responsibilities that a consumer must keep in mind while purchasing any good. [SQP 2018-19]

Ans. 
(i) Right to Information
(ii) Consumer Responsibilities
(a) Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
(b) Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewellery etc.
(c) Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
(d) Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.
(e) Assert yourself to ensure that you get a fair deal.
(f) Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoar ding etc.
(g) Ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.

Q. 3. Explain the following Rights of Consumers :
(i) Right to be Informed
(ii) Right to Safety.
OR
Explain the following Rights of Consumers :
(i) Right to Seek Redressal
(ii) Right to Consumer Education.
OR
Explain the following Right of Consumers :
(i) Right to Choose
(ii) Right to Consumer Education.
OR
Explain the following Rights of Consumers :
(i) Right to Safety
(ii) Right to be Heard.
OR
Explain the following Right of Consumers :
(i) Right to be Informed
(ii) Right to Seek Redressal.

Ans. (i) Right to Safety :
(a) Right to be protected against goods and services which are hazardous to life and health.
(b) Right to get protection against the risks caused due to the use of substandard products or products that do not confirm to the safety norms.
(ii) Right to Choose :
(a) The consumer has the freedom to choose from a variety of products at competitive prices.
(b) Marketers should offer a wide variety of product in terms of quality, price, size etc. to enable the consumer to make the choice.
(iii) Right to be Heard :
(a) The consumer has right to file a complaint and to be heard in case of dissatisfaction with a product or a service.
(b) It is because of this reason many firms have set up their own consumer service and grievance cells.
(iv) Right to Seek Redressal :
(a) The consumer has a right to get relief in case the product or service falls short of his expectations.
(b) The Consumer Protection Act provides relief to customers such as replacement of product, removal of defect in the product, compensation for any loss or injury suffered by the consumer.
(v) Right to be Informed :
(a) The consumer has a right to have complete information about the product he intends to buy such as ingredients, date of manufacturing, price, quantity, etc.
(b) It is because of this reason that the legal framework in India requires the manufacturers to provide such information on the package and label of the product.
(vi) Right to Consumer Education :
(a) The consumer has the right to acquire knowledge and to be a well-informed consumer.
(b) He should be aware about his rights and the reliefs available to him in case of a product or service falling short of his expectations.

Q. 4. How are consumer grievances redressed by the three-tier machinery under Consumer Protection Act, 1986?
Ans. Redressal of consumer grievances under Consumer Protection Act, 1986 is done under the three tier machinery comprising of :
(i) District Forum :
(a) A complaint can be made to the appropriate District Forum when the value of goods or services in question along with the compensation claimed does not exceed ₹20 lakh.
(b) The appeal against the orders of the District Forum can also be filed before the State Commission.
(ii) State Commission :
(a) A complaint can be made to the appropriate State Commission when the value of goods or services in question along with the compensation claimed exceeds ₹20 lakh but does not exceed ₹1 crore.
(b) The appeal against the orders of the State Commission can also be filed before the National Commission.
(iii) National Commission :
(a) A complaint can be made to the appropriate National Commission when the value of goods or services in question along with the compensation claimed exceeds ₹1 crore.
(b) An order passed by the National Commission in a matter of its original jurisdiction is appealable before the Supreme Court.

Q. 5. Palak went to a shopkeeper to buy a hair oil. The shopkeeper forced her to buy a particular brand of hair oil among various available brands, irrespective of the willingness of Palak. Which ‘Right’ of Palak, as a consumer has been violated? Name and explain the ‘Right‘.
Ans. The right violated here is ‘Right to Choose’. Right to Choose : The consumer has the freedom to choose from a variety of products at a competitive prices. This implies that the marketers should offer a wide variety of product in terms of quality, brand, prices, size etc. and allow the consumer to buy a product on his free will. The seller should not use aggressive selling techniques to sell the product to the consumer.

Q. 6. Harsh asked for a bottle of mineral water from a shopkeeper. The maximum retail price printed on the bottle was ₹12 whereas the shopkeeper was charging ₹35. Inspite of many arguments the shopkeeper was not ready to sell the bottle for less than ₹35. Harsh was in need of it and had no option except to buy. As an aware consumer name and explain the ‘Right‘ which Harsh can exercise.
Ans. 
The consumer right affected here is Right to be Heard. Every Consumer has the right that his complaint be heard under the ‘Right to be Heard’. A consumer can file a complaint against all those things which are prejudicial to his interests. These days several organisation have set up their consumer service cells with a view to provide the ‘right to be heard’ of the consumer. The cell will hear such complaints of the customers and take adequate measures to address them.

Q. 7. State any three responsibilities that a consumer must keep in mind while purchasing gold jewellery.
Ans. 
Following are the consumer responsibilities that a consumer must keep in mind while purchasing gold jewellery :
(i) Be aware about various goods (types of jewellery) available in the market so that an intelligent and wise choice can be made.
(ii) Buy only standardised jewellery as they provide quality assurance. Thus, look for Hallmark on jewellery.
(iii) Learn about risks associated with the product, follow manufacturer’s instructions.
(iv) Read labels carefully so as to have information about prices, net weight, etc.
(v) Assert yourself to ensure a fair deal.
(vi) Be honest in your dealings.
(vii) Ask for a cash memo on purchase of the jewellery.

Q. 8. Explain any four points of importance of ‘Consumer Protection’ from the point of view of business.
Ans. Importance of ‘Consumer Protection’ from the point of view of business :
(i) Long-term interest of business : Long-term interest of a business lies in the satisfaction of its customers that leads to repeat sales and attracts other customers.
(ii) Business uses society’s resources : As a business uses social resources, it is bound to serve the society by using its resources through adoption of fair trade practices which ensures consumer protection.
(iii) Social responsibility : Since consumers are a part of society, consumer protection is the part of its social responsibility to fulfil its social objective.
(iv) Moral justification : Business ethics advocates adoption of moral principles in conducting business affairs. Then a business is required to adopt consumer protection as its moral duty.
(v) Government Intervention : To avoid government intervention in the business activities due to malpractices, a business should take government intervention as the first priority of protection.

Q. 9. Give the definition of ‘Consumer’ as per Consumer Protection Act, 1986.
OR
What is meant by 'Consumer' as per the provisions of Consumer Protection Act, 1986.
Ans.
Under the Consumer Protection Act, a consumer is defined as :
(i) Any person who buys any goods for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. It includes any user of such goods, when such use is made with the approval of the buyer, but does not include a person who obtains goods for resale or any other commercial purpose.
(ii) Any person who hires or avails of any service, for a consideration which has been paid or promised, or partly paid and partly promised, or under any system of deferred payment. It includes any beneficiary of services when such services are availed of with the approval of the person concerned, but does not include a person who avails of such services for any commercial purpose.

Q. 10. State any eight reliefs available to a consumer under the provisions of Consumer Protection Act, 1986.
Ans. 
Reliefs available to a consumer under the provisions of Consumer Protection Act, 1986 :
(i) To remove the defect in goods or the 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.
(iv) To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to 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 the same in future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw hazardous goods from sale.
(ix) To cease manufacturing of hazardous goods.
(x) To pay any amount (not less than 5% of the value of the defective goods to be credited to the Consumer Welfare Fund or any other organisation/person, to be utilised in the prescribed manner)
(xi) To issue corrective advertisement to neutralise theeffect of misleading advertisement.

Q.11. What is meant by ‘Consumer Protection’? Also state how consumer protection is important from the point of view of consumers.
OR
Explain the concept of consumer protection and explain any three points of its importance from the point of view of consumers.
Ans.
Consumer protection means protecting the consumers from unscrupulous, exploitative and unfair trade practices of a seller or a producer for maximising their profits. Consumer protection not only includes educating the consumers about their rights and responsibilities but also helps in getting their grievances redressed. The importance of consumer protection from consumer’s point of view can be understood from the following points :
(i) Consumer’s Ignorance : In the light of widespread ignorance of consumers about their rights and reliefs available to them, it becomes necessary to educate them about the same so as to achieve consumer awareness.
(ii) Unorganised Consumers : In India, consumers are not organised. Though we do have consumer organisation working in this direction, adequate consumer protection is required to provide power and rights to these organisations to protect and promote the interests of consumers.
(iii) Widespread Exploitation of the Consumers : Unaware, ignorant consumers might be exploited by unscrupulous, exploitative and unfair trade practices like defective goods, adulteration, false and misleading advertising etc. Consumer protection provides safeguard to the consumers from such exploitation.

Q. 12. State any three directions which can be issued by the consumer court to the opposite party if it is satisfied about the genuineness of the complaint.
Ans. 
If the Consumer Court is satisfied with the genuineness of the complaint, it can issue one or more of the following directions to the aggrieved party as reliefs :
(i) To remove the defect in goods or the 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.
(iv) To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to 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 the same in future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw hazardous goods from sale.
(ix) To cease manufacture of hazardous goods.
(x) To pay any amount (not less than 5% of the value of the defective goods to be credited to the Consumer Welfare Fund or any other organisation/person, to be utilised in the prescribed manner.
(xi) To issue corrective advertisement to neutralise the effect of misleading advertisement
(xii) To pay adequate costs to the appropriate party.

Q. 13. State any three functions performed by nongovernmental organisations for consumer protection.
Ans. Functions performed by non-governmental organisations for consumer protection are :
(i) Educating the general public about consumer rights.
(ii) Publishing periodicals and other publications.
(iii) Carrying out comparative testing of consumer products.
(iv) Encouraging consumers to strongly protest and take action against unscrupulous, exploitative and unfair trade practices of sellers.
(v) Providing legal assistance to consumers.
(vi) Filing complaints in appropriate consumer courts on behalf of the consumers.
(vii) Taking initiative in filing cases in consumer courts in the interest of the general public.

Q. 14. State any three functions performed by consumer organisations for protection and promotion of interests of the consumer.
Ans. Three functions performed by the consumer organisations for the protection and the promotion of the interest of consumers are explained below :
(i) Promoting general awareness of the rights and responsibilities of the consumer by educating him and supplying relevant information.
(ii) Organising a data-base enabling the consumer to retrieve the required information in a less expensive and quick way.
(iii) Publishing general periodicals and product specific booklets pamphlets, and using other tools of mass communication for promoting consumer awareness.

Q. 15. Bye-Bye Motors recently informed the media about its aim to train up to 4000 people in the next 3 years in the skills associated with automobile industry as part of its program to provide technical and vocational education for unemployed youth. The firm has already started the programme in collaboration with Automobile Skill Development Council. This news in the media has helped the firm in promoting its image in the eyes of the public and consumer activist groups.
(i) Why is it important for the company to satisfy the public and the consumer activist groups? Give reasons.
(ii) Which departments in the firm can be given the responsibility to disseminate information and build goodwill of the firm?[SQP 2018]
Ans. 
(i) (a) The voice and opinion of the general public is important as they may be interested in the company and its product and have an impact on the business ability to achieve its objectives. Thus, it is imperative to manage public opinion and the company’s relation with the public on a regular basis.
(b) Consumer Activist groups need to be satisfied because they can impose restriction on the sales of the firm’s products directly by urging customers to refrain from buying them through the imposition of laws.
(ii) The following departments in the firm can be given the task to disseminate information and build goodwill :
(a) The marketing department.
(b) A separate department to manage public relations.

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