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

Multiple Choice Questions

Q1: What is the primary purpose of consumer protection laws?
(a) Promoting monopolies
(b) Safeguarding consumer rights
(c) Encouraging unfair trade practices
(d) Ignoring product standards
Ans: (b)

Q2: Which organization in India deals with consumer grievances at the national level?
(a) RBI
(b) SEBI
(c) NCDRC
(d) TRAI
Ans: (c)

Q3: What does the term 'Product Liability' refer to in consumer protection?
(a) Consumer's liability to pay for products
(b) Manufacturer's liability for defective products
(c) Retailer's liability for high prices
(d) Government's liability for market regulations
Ans: (b)

Q4: Which of the following is an example of an unfair trade practice?
(a) Providing accurate product information
(b) Offering discounts during festivals
(c) Misleading advertisements
(d) Transparent pricing strategies
Ans: (c)

Q5: What is the purpose of the Consumer Protection Act, 2019 in India?
(a) Replacing all existing consumer laws
(b) Promoting unfair business practices
(c) Enhancing consumer rights and welfare
(d) Restricting product availability
Ans: (c)

Very Short Answers 

Q1: Define 'Consumer Exploitation'.
Ans: Exploitation of consumers occurs when businesses take advantage of consumers' lack of knowledge or bargaining power, leading to unfair practices or prices.

Q2: Mention any two consumer rights as per the Consumer Protection Act.
Ans: Right to Information and Right to Redressal.

Q3: Explain the term 'Unfair Trade Practice' briefly.
Ans: Unfair Trade Practices involve deceptive, misleading, or fraudulent practices by businesses that harm consumers' interests.

Q4: List any two responsibilities of consumers.
Ans: (i) Being aware of their rights, (ii) Making informed choices while purchasing.

Q5: What is the significance of the Bureau of Indian Standards (BIS) in consumer protection?
Ans: BIS ensures that products meet quality standards, protecting consumers from substandard or unsafe products.

Short Answers 

Q1: Discuss the role of consumer awareness in promoting consumer rights.
Ans: Consumer awareness empowers individuals by informing them about their rights and responsibilities.
Informed consumers make rational choices, leading to a competitive market.
It enables consumers to identify and report unfair trade practices, promoting a fair business environment.

Q2: Explain the concept of 'Right to Redressal' under the Consumer Protection Act.
Ans: The Right to Redressal allows consumers to seek compensation for defective goods or services. Consumers can file complaints in consumer forums to resolve grievances. This right ensures that consumers have a mechanism to address disputes and obtain justice.

Q3: Describe any three consumer responsibilities in the purchasing process.
Ans: Verify product quality and authenticity before purchase.
Read and understand product information, including terms and conditions.
Report unfair trade practices to consumer protection authorities.

Q4: Discuss the significance of the Consumer Protection Act, 2019, in strengthening consumer rights.
Ans: The Act enhances consumer rights by addressing issues like unfair trade practices and misleading advertisements.
It establishes consumer forums for efficient grievance redressal.
The Act promotes accountability among businesses, ensuring the protection of consumers in the marketplace.

Q5: Explain the term 'Consumerism' and its impact on business practices.
Ans: Consumerism refers to the movement advocating the protection of consumer interests. It influences businesses to provide quality products, fair prices, and transparent information. Companies adopting consumer-centric practices gain trust and loyalty, fostering long-term success.

Long Answers

Q1: Discuss the significance of the Consumer Protection Act in promoting fair business practices.
Ans:  The Consumer Protection Act aims to protect consumers from unfair trade practices.

• Enhanced Consumer Rights: The Act establishes and enhances consumer rights, such as the right to information, choice, and redressal.
• Grievance Redressal Mechanism: Consumer forums provide an efficient platform for resolving disputes, ensuring timely justice.
• Deterrent to Unfair Practices: Strict penalties act as a deterrent, discouraging businesses from engaging in deceptive or fraudulent activities.
• Promotion of Accountability: The Act holds manufacturers, sellers, and service providers accountable for the quality and safety of their products and services.

Q2: Examine the challenges faced by consumers in the digital marketplace and suggest measures for their protection.
Ans: Challenges in Digital Marketplace:

• Lack of Physical Inspection: Consumers cannot physically inspect products before purchase.
• Data Privacy Concerns: Risks related to the misuse of personal information in online transactions.
• Limited Redressal Options: Difficulty in resolving grievances due to the virtual nature of transactions.

Measures for Consumer Protection:

• Strengthening Cybersecurity: Ensuring secure online transactions and protecting consumer data.
• Enhanced Consumer Education: Educating consumers about online risks and safe practices.
• Establishing Digital Consumer Forums: Creating virtual platforms for efficient grievance redressal.

Q3: Case Study: The XYZ Electronics Case
Background:
XYZ Electronics sold a batch of smartphones with defective batteries, causing safety hazards. Several consumers experienced overheating issues, leading to damage.
Sub Questions:
(a) Identify the consumer rights violated in this case.
Ans: Right to Safety and Right to Redressal.

(b) Explain the legal actions consumers can take against XYZ Electronics.
Ans: Consumers can file complaints in the consumer forum seeking compensation for damages.
XYZ Electronics can be held liable for violating consumer rights under the Consumer Protection Act.

(c) Suggest preventive measures XYZ Electronics could have taken to avoid this situation.
Ans: Conducting thorough quality checks before releasing products.
Providing clear information about potential risks and safety measures.
Promptly addressing consumer complaints and issuing recalls if necessary.