Please refer to Consumer Protection Class 12 Business Studies notes and questions with solutions below. These revision notes and important examination questions have been prepared based on the latest Business Studies books for Class 12. You can go through the questions and solutions below which will help you to get better marks in your examinations.
Class 12 Business Studies Consumer Protection Notes and Questions
Q. 1. Harish purchased a medicine from ‘Hari Govind Medical Stores’ for his son who had high fever. Even after giving the medicine his son’s condition did not improve and he had to be hospitalized. Doctor informed Harish that the medicine given to his son was spurious.
Harish complained about this to ‘Hari Govind Medical Stores’. As a result, ‘Hari Govind Medical stores’ decided to file a complaint against the manufacturer in the consumer court.
Can ‘Hari Govind Medical Stores’ do this? Give reason.
Ans. No, ‘Hari Govind Medical stores’ cannot file a complaint against the manufacturer in the consumer court. The Medical Stores is not a consumer since it buys medicine for re-sale or
commercial purpose.
Q. 2. Your mother purchased a colour television for Rs. 70,000 without cash-memo from an authorized dealer of the manufacturer with a guarantee that the television will be replaced with a new one if any of its parts becomes defective within three months from the date of purchase. Within 10 days a part of the television was burnt and on complaining the seller refused to replace the television. Name the redressal agency under the Consumer Protection Act where your mother can file the complaint.
Ans. No, my mother cannot file a complaint against the dealer or the manufacturer in the consumer court since she does not have cash-memo, which serves as the proof of purchase.
Q. 3. Himesh after completing his graduation started working with a multinational company in Delhi. But due to ill health of his parents he had to go back to his village. There he noticed that the villagers were literate but ignorant about their rights. Many vegetable vendors were using stones as weights to sell their vegetables. Some shopkeepers were selling food items without having ‘FPO mark’. Villagers did not find anything wrong with these practices. So to create awareness among villagers Himesh decided to publish a weekly Journal ‘Jan Jagriti’. State the ‘Right’ which Himesh has exercised by doing so.
Ans. Right to consumer education
Q. 4. Bajaj Auto Ltd. purchased a machinery for Rs. 5 crore from Priya Ltd. and found it defective. Despite many complaints the defect was not rectified. Suggest Bajaj Auto Ltd. the appropriate forum to file their complaint in the three-tier machinery under the Consumer Protection Act.
Ans. National Commission
Q. 5. Rahu Bali purchased a flat for Rs. 50 lacs and found it different from what was agreed. He wants his money back. Suggest him the appropriate authority to file his complaint in the three-tier machinery under the Consumer Protection act, 1986.
Ans. State Commission
Q. 6. Anurag bought an electric iron form a reputed showroom of a manufacturing company but it caused electric shock to his wife while she was using it. Anurag claimed a compensation of Rs. 15 lakhs. Where can he file his claim?
Ans. District Forum
Q. 7. Rajiv purchased a diesel car for Rs. 7 lakhs from an automobile company and found its engine being defective. Despite many complaints the defect was not rectified. Name the highest authority to file his complaint in the three-tier machinery under the Consumer Protection Act.
Ans. National Commission
Q. 8. Mukul purchased a house for Rs. 30 lakhs from a housing company and found it being defective. Despite many complaints, the defect was not rectified. He filed a complaint in state commission but was not satisfied with its order. Where can he appeal and within how many days?
Ans. National Commission, within 30 days of the passing of the order of the State Commission.
Q. 9. Shubhangi purchased a car for Rs. 1.1 crore and found its engine defective. Despite many complaints, the defect was not rectified. She filed a complaint in National Commission but was not satisfied with its order. Suggest her the appropriate authority where she can appeal.
Ans. The Supreme Court
Q. 10. Rita wants to buy a packet of juice. As an aware customer, how can she be sure about the quality of juice she plans to buy?
Ans. By FPO mark label
Q. 11. Anjana wants to buy a gold ring. As an aware consumer, how can she be sure about the quality of gold ring she is going to buy?
Ans. By Hallmark label
Q. 12. Pragya bought an iron of a reputed brand for Rs. 1500 but it caused an electric shock while it was being used. Pragya wants to exercise her ‘Right’. Identify the ‘Right under which she can be protected.
Ans. Right o safety
Q. 13. Siddharth went to a shopkeeper to buy soap. The shopkeeper forced him to buy a particular brand of soap out of various available brands, irrespective of the willingness of Siddharth. Which right of Siddharth, as a consumer, has been exploited?
Ans. Right to choose.
Q. 14. Ahmed wants to buy an iron. As an aware customer, how can he be sure about the quality of iron?
Ans. By ISI mark label
Q. 15. Tanya purchased some household goods from a ‘General store’. After reaching home she found a face cream which she had not billed for. After checking the date of expiry and other details, she started using it. Her face burnt due to the use of the cream. Where should Tanya file a complaint? Justify. Under Consumer Protection Act, 1986 who can file
a complaint?
Ans. Tanya cannot file a complaint in any consumer court since she does not have the proof of purchase, i.e., cash memo. She did not fulfil her responsibility of an honest consumer.
She should have gone back to the general store to get its billing. Under the Consumer Protection act, 1986, any of the following can file a complaint:
1. Any consumer
2. Any registered consumers’ association
3. The central Government or any State Government
4. One or more consumers on behalf of many consumers having same interest.
5. A legal representatively of a deceased consumer.
Q. 16. Akhil, a consumer purchased medicines without noticing the date of expiry. He also did not obtain the cash memo. Do you think he will be able to protect himself by the loss caused due to expired medicine? Give reasons to support your answer.
Ans. Akhil will not be able to protect himself by the loss caused due to expired medicine because he did not fulfil his responsibility on the following grounds:
1. He did not read the labels of the packet of medicines. He did not notice the date of expiry. A consumer should always read labels carefully to have information about prices, net weight, manufacturing and expiry dates, etc.
2. He did not obtain the cash memo from the seller. Cash memo is a proof of purchase and it is a must for filing a complaint in appropriate consumer court.
Q. 17. Deepak purchased a book from a book-seller and got the cash memo of Rs. 400 which he paid for the book. Later, he found that the actual price of the books is Rs. 380 but the book-seller has put a sticker of Rs. 400 on the original price. Can Deepak recover the extra money that he paid? What other options are available to him against book-seller?
Ans. Deepak is a responsible consumer since he has got the cash memo for the book he purchased. Cash memo is the proof of purchase. A consumer must have the cash memo
to file a complaint in a consumer court.
In this case, the book-seller has charged for the book a price in excess of the list price. So, Deepak can recover the extra money he paid (Rs. 20) from the book-seller.
Alternatively, Deepak can file complaint against the book-seller in a consumer court if he does not get back Rs. 20 from the book-seller. If the consumer court is satisfied about the genuineness of the complaint, it can issue the following directions to the bookseller.
1. To refund the price paid for the book (Rs. 400).
2. To pay adequate costs to Mr. Deepak, which he incurred for filing the complaint.
3. To discontinue the unscrupulous, exploitative and unfair trade practices and not to repeat in the future.
Q. 18. Dushyant, who was a vegetarian, went to a snack bar for having French fries and later on found out that it has non-vegetarian content. Neither the advertisement nor the packing of the product displayed that the product has non-vegetarian content. Will Dushyant be able to claim compensation? Which right of the consumer is violated?
Ans. Yes, Dushyant will be able to claim the compensation as the seller has violated the “right to information”.
Q. 19. Your mother purchased a washing machine for Rs. 10000 from an authorized dealer of the manufacturer with an oral guarantee that the machine will be replaced with a new one if any of its parts becomes defective within 3 months from the date of purchase. The motor of the machine was burnt within 15 days of its purchase. On complaining, the seller refused to replace the machine. Name the redressal agency under the Consumer Protection Act where your mother can file the complaint.
Ans. No, my mother cannot file a complaint against the dealer or the manufacturer in the consumer court since she does not have cash-memo. She had purchased the washing machine with an oral guarantee only.
Q. 20. Harsh asked for a bottle of mineral water from a shopkeeper. The maximum retail price printed on the bottle was Rs. 20 only whereas the shopkeeper was charging Rs. 35. In spite of many arguments the shopkeeper was not ready to sell the bottle for less than Rs. 35. Harsh was in need of it and had no option except to buy. Identify the ‘Right’ which
Harsh can exercise.
Ans. Right to be Heard
Q. 21. Aman a degree holder in Entrepreneurship came to know about Piplantri Village located in Rajasthan, where in 2006 an initiative was started, in which 111 trees are planted every time a girl child is born.
To keep termites away from the trees the villagers have planted 2.5 million Aloe Vera plants around the trees. This has turned the village into on oasis, as the planting of trees led to higher water levels.
Aman decided to visit the village to start a business unit, for the processing and marketing of Aloe Vera into juices, gels and other products.
However, on visiting the village Aman found that the villagers were suffering exploitation at the hands of local merchants who were engaged in unscrupulous, exploitative trade practices like hording and black marketing of food products and also selling unsafe, adulterated products to the villagers.
After looking at their plight instead of a business organization he decided to set up an organization for the protection and promotion of the consumer interest of the villagers.
State the functions that the organization established by Aman will be performing. (any six points)
Ans. Functions of an NGO / Consumer organization
1. Educating the villagers / general public about consumer rights by organizing training programmes, seminars and workshops.
2. Publishing periodicals and other publications to impart knowledge about consumer problems, reliefs available and other matters of interest.
3. Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.
4. Encouraging consumers to strongly protest and take an action against exploitative and unfair trade practices of sellers.
5. Providing legal assistance to consumers by way of providing aid, legal advice etc, in
seeking legal remedy.
6. Filing complaints in consumer courts on behalf of consumers.
Q. 22. On Sonika’s birthday her mother gave her a pair of gold earrings. After one month Sonika observed that the earning are losing their shine. She checked the mark on the ear-rings and found that it was not a proper Hallmark and her mother had been cheated by the shopkeeper. So, she filed a complaint in the district forum which rejected it. Not satisfied by the decision of district forum, she was very much disturbed and after two months decided to appeal further.
Can Sonika appeal against the decision of the district forum? Give reason in support of your answer.
Ans. No, Sonika cannot appeal now as the appeal has to be filed within 30 days of passing of the order by the district forum.
Q. 23. Manuj bought a packet of chips from a local shopkeeper and found that the ingredients given on the label were not legible. He complained about it to the company.
The company sent a written apology stating that they will make sure that existing packets are withdrawn from the market and new packets with legible labels are soon made available.
State the consumer right which Manuj exercised.
Ans. Right to be heard has been exercised by Manuj.
Q. 24. Suman bought a box of cheese of a reputed brand a local shopkeeper. On opening the box, she found a piece of stone in the cheese. She reported the matter to the shopkeeper who forwarded her complaint to the concerned company. Within a week, the representative of the company visited Suman’s residence with an apology and as a replacement offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her.
State the consumer right with Suman exercised.
Ans. Right to seek redressal has been exercised by Suman.
Q. 25. Manvendra always went to a specific shop to buy all consumable and non-consumable goods. In this shop, a variety of products of different brands were displayed nicely and the sales person available also gave good sales presentations if required. But this shop was quite far-off from his residence. His friend Annant always wondered why Manvendra wastes to much time in going to that shop whereas there were many big brand shops situated near his residence having consumable and non-consumable goods.
Annant asked Manvendra the reason of going to the particular shop. Manvendra told that he was exercising one of his rights which he could not exercise in nearby big brand shops.
State the consumer’s right which Manvendra had exercised.
Ans. Right to choose has been exercised by Manvendra.
Q. 26. Himanshu purchased a new car from ‘Galaxy Motors’ for Rs. 25 lakh. He was offered free insurance for the first servicing to be availed after the car had covered 5,000 km, 10,000 km and 15,000 km, respectively. When Himanshu took the car for the first free servicing, he was told that the car was not new and first service had already been availed on this car. He felt cheated and filed a complaint in the State Commission. Being not satisfied with the decision of the State Commission, after two months he decided to file an appeal against it.
Can Himanshu appeal against the decision of the state Commission? Give reason in support of your answer.
Ans.
No, Himanshu will not be able to appeal further against the decision of State Commission in the National Commission. This is because two months have already passed and the appeal
had to be filed within 30 days of the passing of the order by State Commission.
Q. 27. Palak went to a shopkeeper to buy a hair oil. The shopkeeper forced her to buy a particular brand of hair-oil out of 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 to choose has been violated in the given case as Palak was forced by the shopkeeper to buy a particular brand of hair oil.
According to the Right to Choose, the consumer has a right to choose from a variety of products at competitive prices. Also, the marketers should offer a wide variety of products
to buyers.
Q. 28. Anita purchased a book from Satish Book Store. While reading the book, she found that sixteen pages were missing. She approached the seller of the book and complained about the missing pages. The seller promised that if the publisher was ready to change the book he would change the same. After a week, the seller informed Anita that the publisher had refused to change the book.
Where can Anita file a complaint against the seller of the book? Give reason in support of your answer. Also explain who is a consumer as per “Consumer Protection Act 1986”.
Ans. Since, the value of the goods or services in question, along with the compensation claimed, does not exceed Rs. 20 lakhs she will file a case in the District Forum.
A ‘consumer’ is generally understood as a person who uses or consumes goods or avails of any services. A person who buys goods for commercial purpose or resale will not be
considered to be a consumer.
Q. 29. Prakahar purchased an ISI mark electric iron from Bharat Electricals. While using it, he found that it was not working properly. He approached the seller and complained about the same. The manufacturer refused to replace and Bharat Electrical decided to file a complaint in the consumer court.
Can Bharat Electricals do this? Why? Also explain who is a consumer as per Consumer Protection Act, 1986.
Ans. No, Bharat Electricals will not be able to file a complaint under Consumer Protection Act 1986 because according to this act a person is not deemed to be a customer if he buys
goods for resale or commercial purpose.
Under the Consumer Protection Act 1986, a consumer is defined as:
1. 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 uses of such goods, when such use is made with the approval of the buyer, but does not include a person who obtains goods for re-sale or any commercial purpose.
2. 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 avails of such services for any commercial purposes.
Q. 30. Reena purchased on litre of pure desi ghee from a shopkeeper. After using it, she had doubts that it was adulterated. She sent it for a laboratory test which confirmed that the ghee was adulterated. State any six reliefs available to Reena if she complains and the consumer court is satisfied about the genuineness of the complaint.
Ans. The six reliefs available to Reena are listed below:
1. To withdraw the hazardous goods from sale.
2. To provide replacement for the defective product.
3. To refund the price paid for the product, or the charges paid for the service.
4. To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the marketer.
5. Not to offer hazardous goods for sale.
6. To issue corrective advertisement to neutralize the effect of a misleading advertisement.
Q. 31. ‘Vastra Ltd.’ is engaged in the manufacturing of apparel. Over the years, it has became a popular brand due to its good product quality and exclusive designing. The company plans to open its own retail showrooms in metropolitan cities in India. In order to meet its financial needs it has offered for subscription an IPO of Rs. 4 lakh equity shares in the price band of Rs. 430 – Rs. 445 each. As per the guidelines of SEBI, the company has provided a complete disclosure of the relevant details in its prospectus.
1. Identify and explain the right of the consumer being fulfilled by the directives of SEBI in the above mentioned case.
2. Briefly explain any two points highlighting the importance of consumer protection from the point of view of the businessmen.
Ans.1. The right to information is being fulfilled by the directives of SEBI in the above mentioned case.
According to the Right to information, the consumer has the right to get complete information about the product that he / she may propose to buy including its contents, date of manufacture and expiry, maximum retail price, quantity, directions for use etc.Moreover, as per law, it is mandatory for the marketers to provide complete information about the product / service to buyers.
1. The importance of consumer protection from businessmen’s point of view is outlined below:
Q. 32. Home Shop 18 is ian online and on-air retail and distribution venture of the Network 18 group, India. It is a part of the Network 18 Media and Investments Limited which is owned and operated by Reliance Industries. Currently, Home Shop 18 com comprises of more than 15 categories namely, Mobiles, Health & Beauty, Apparel, Jewellery, Home & Kitchen, Household Appliances etc. to name a few. The company offers a wide variety of goods under each of these categories.
1. Identify and explain the relevant consumer right being promoted by the company.
2. Also mention any two values being reflected through this approach adopted by the company.
Ans.
1. The Right to Choose is being promoted by the company. According to the Right to Choose, the consumer has a right to choose from a variety of products at competitive prices. Also, the marketers should offer w wide variety of products to buyers.
2. The two values being reflected this approach adopted by the company are increasing standard of living and technological development
Q. 33. In one of the cases, the Goa State Commission held that “The Consumer Protection Act is not for entertaining or compensation speculative transactions or losses”. It held that compensation cannot be given under the Consumer Protection Act to those involved in sale and purchase of shares, which are commercial transactions. The order follows an appeal by a Mumbai – based stock broker India Infoline Limited against an order of the Goa district Consumer Forum. Initially, the judgement of the Goa District Consumer Forum had awarded damages to Panaji-resident Vaman Nagesh who had lost money in share trading through a stock broker India Infoline Limited.
In context of the above case:
1. Why do ‘commercial transactions’ not fall under the purview of ‘consumer’ under the Consumer Protection Act?
2. Why do you think that the above mentioned case was initially filed in the Goa District Forum by Vaman Nagesh?
3. Where do you think Vaman Nagesh could have filed a further appeal in case he was not satisfied with the judgement passed about his case by the Goa State Commission?
Ans.
1. Under the Consumer Protection Act, a ‘consumer’ is generally understood as a person who uses or consumes goods or avails of any service. However, a person who buys goods for commercial purpose or resale will not be considered to be a consumer.
2. Presuming that the value of the securities, along with the compensation claimed, did not exceed Rs. 20 lakhs, the above mentioned case was initially filed in the Goa District Forum by Vaman Nagesh.
3. If, Vaman Nagesh was not satisfied with the order of the State Commission, he could have filed an appeal before the National Commission within 30 days of the passing of the order
Q. 34. After completing his education, Arman opened a small restaurant in a posh market to earn his livelihood. In order to attract good clientele, he decided to install two airconditioners in the restaurant. Since he didn’t have sufficient funds to buy air conditioners of a good brand, he bought two air conditioners from a local manufacturer in Janakpuri, Delhi for Rs. 20,000 each. Later on, he found that the compressor of one of the air conditioner was not working properly. Despite many complaints, the defect was not rectified by the manufacturer. So, he feels very disappointed about the issue and wants to take a legal action against the manufacturer to not only get compensation but also to save other people from being duped by the local manufacturer.
1. Name the redressal agency to which he can approach to file complaint against the local manufacturer.
2. State any two directions which the consumer court can issue to the local manufacturer after being satisfied with the genuineness of the complaint.
3. State any two values being ignored by this automobile company.
Ans.
1. He can approach the District Forum to file complaint against the local manufacturer.
2. The two directions which the consumer court can issue to the local manufacturer after being satisfied with the genuineness of the complaint are as follows:
1. To remove the defect in goods.
2. To provide replacement for the defective product.
The two values being ignored by the local manufacturer are:
1. Honesty
2. Concern for people.
Q. 35. On her sister’s wedding, Radha decided to gift her gold earrings. When she shared her plan with her husband, he showed her an article in the daily national newspaper under the heading “Jago Grahak Jago.” The campaign included details about the various aspects that people must consider before buying any gold jewellery.
1. Why do you think campaigns like “Jago Grahak Jago” are inserted in the newspaper?
2. Name the right of consumer being fulfilled through this initiative of the government 3. State any three responsibilities that Radha must discharge as an aware consumer while buying her sister’s wedding gift.
Ans.
1. The campaigns like “Jago grahak Jago” are given in the newspaper to make the consumers aware of the various undesirable activities like unscrupulous, unfair trade practices etc which are carried out by the marketers to exploit the buyers.
2. Right to Consumer Education is being fulfilled through this initiative of the government.
3. The three responsibilities that Radha must discharge while buying her sister’s wedding gift are as follows:
1. Buy only standardized goods and check for standardization mark like Hallmark for gold jewellery.
2. Assets herself to ensure that she gets a fair deal.
3. Ask for a cash memo on purchase of goods or services.
Q. 36. In the year 2015, Under section 12(ID) of the Consumer Protection Act, the Consumer Affairs Ministry had filed a suit in National Consumer Disputes Redressal Commission (NCDRC) against Nestle India, the manufacturer of Maggi noodles, seeking about Rs. 640 crore in damages for alleged unfair trade practices, false labeling and misleading advertisements.
In context of the above case:
1. Name any two other two parties besides government who can file a case under Consumer Protection Act 1986.
2. Why has the government filed a suit in National Consumer Disputes Redressal Commission (NCDRC) and at no other level of three tier redressal system?
Ans.
1. The two other two parties besides government who can file a case under Consumer Protection Act 1986 are any consumer and any registered consumers’ association.
2. The government filed a suit in National Consumer Disputes Redressal Commission (NCDRC) and at no other level of the three tier redressal system because a complaint has to be made to the National Commission only when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 1 crore.
Q. 37. Good Health Ltd., a pharmaceuticals company, has introduced mosquito repellent bands under the brand name ‘Jaddu’ in the wake of outbreak of dengue in various parts of the country. The product attracted many people from all age groups, especially kids.
However, the company failed to provide adequate guidance for the users on the label of the product in terms of time period of the effectiveness of the repellent band once its seal is opened. Because of this ambiguity, many buyers faced problems.
In context of the above case:
1. Identify and explain the consumer right which has been overlooked by the company .
2. Name and explain any two functions of the important product related aspect ignored by the company.
Ans. The Right to information is being overlooked by the company in the above mentioned case.
1. According to the Right to information, a consumer has the right to get complete information about the product he / she intends to buy including its contents, date of manufacture, date of expiry. Price, quality, directions for use etc. Also, as per law, it is mandatory for the marketers to provide complete information about the product / service to the buyers.
2. The important aspect related to the marketing of products which has been ignored by the company is Labelling.
The two important functions performed by labeling are:
1. Describes the product and specifies its contents:
2. Helps in identification of the product or brand:
Q. 38. Radhe Shyam moved from Muradabad to Mumbai to work as an artist in television serials. On getting his first salary, he opened an account in a nearby commercial bank and also opted for ATM facility under ATM card. After a few months, he lost his ATM Card and lodged a request with the bank for furnishing duplicate card. Consequently, he was allotted duplicate ATM Card Number but that card was not given to him. After a week, he received a SMS message on his mobile stating that sum of Rs. 10,000/- has been withdrawn form his account. Since the duplicate ATM card was not given to him, he brought the debit entry in the notice of the bank. The bank assured to repay that amount to him within 15 days after investigating the issue. But, more than a month has passed sicne then and despite his persistent efforts the bank has not taken any action so far. So, he files a case against the bank in the district forum. The consumer court can issue a notice to the bank after being satisfied with the genuineness of the complaint and directs the bank to repay Rs. 10,000 to Radheshyam along with the compensation of Rs. 50,000.
Name the rights exercised by Radheshyam in the context of the above case.
Ans. The two rights exercised by Radheshyam in the context of the above case are Right to be heard and Right to seek redressal.
Q. 39. Bharti Airtel Limited is an Indian global telecommunications services company headquartered in New Delhi, India. It operates in 20 countries across South Asia, Africa,
and the channel Islands. It provides GSM, 3G and 4G LTE mobile services, fixed line broadband and voice services depending upon the country of operation. It is the largest mobile network operator in India and the third largest in the world with 325 million subscribers. Its portal displays the following information “Airtel Mobile Customer Care – Call 121, 24-hr Airtel customer service number from your Airtel phone. In case you don’t get satisfactory resolution of your query/complaint at the Airtel customer service centre, you can get in touch with Airtel Nodal officers with your complaint reference number and details of grievance.”
In context of the above case:
1. Identify and explain the right of the consumer being fulfilled by the company in the above mentioned case.
2. Name the function of marketing being performed by the company.
3. State any two values that the company wants to communicate to the society.
Ans.
1. The right of the consumer being fulfilled by the company in the above mentioned case is right to be heard.
2. The function of marketing being performed by the company is customer support services.
3. The two values that the company wants to communicate to the society are:
1. Concern for consumers
2. Respect for law.
Q. 40. Suryansh booked a flat through a private builder in Greater Noida, Uttar Pradesh at the cost of Rs.2 crores. As per the terms of the contract, the builder promised to provide him with all the basis and modern amenities such as continuous electric supply, CCTV Camera, Club facility, good quality of water, good security etc. although he was given the possession of the flat in time, the builder did not provide all the basic and common facilities which also included 3 tier security having CCTV camera coverage for each floor. Suryansh kept complaining to the builder after possession of the flat for non-installation of CCTV camera and other common and basic amenities as promised at the time of agreement, but the builder kept assuring him that he will do the needful and he need not worry. After a month, Suryansh had to travel abroad, so he left his home with his flat duly locked. But on his return, he found that his flat has been robbed and theft of Rs. 10,000 and jewellery worth Rs. 10 Lac had taken from place. He complained to the builder that had CCTV cameras been installed, it would have been a deterrent and the theft would not have been taken place. Also, CCTV would have ensured that no unwanted person would have entered the building. When Suryansh discussed this incident with his friend Sooraj, who runs a consumer association, he advised him to file a case against the builder.
In context of the above case:
1. Name the right of consumer that Sooraj has advised Suryansh to exercise.
2. State any three functions highlighting the role of a consumer association
Ans.
1. Sooraj has advised Suryansh to exercise Right to be heard.
2. The three functions highlighting the role of a consumer association are listed below:
1. Educating the general public about consumer rights.
2. Conducting comparative testing of consumer products available in the market.
3. Filing complaints in appropriate consumer courts on behalf of the consumers.
Q. 41. Gaurav purchased a pack of sweets for his son from a shop in the nearby market. After consuming those sweets, the condition of his son deteriorated and he had to be hospitalized. Later on through a laboratory test, it was certified that the sweets were adulterated.
1. State any one precaution that he should have taken while purchasing packed sweets.
2. Name the appropriate redressal agency that he can approach in case he decides to file a case against the shopkeeper.
3. State any two values which are lacking in the shopkeeper.
Ans.
1. Gaurav should have checked for the quality assurance mark like FPO / FSSAI on its label while purchasing the food product.
2. District Forum
3. The two values which are lacking in the shopkeeper are:
● Honesty
● Concern for others.
Q. 42. Aryan went to purchase a pack of chocolate for his son from a shop in the nearby market. Despite his preference to buy a pack of a particular brand the shopkeeper forced him to buy the pack of chocolate of another brand, by giving some odd justifications. After coming back home, Gaurav was feeling very dissatisfied.
1. Identify and explain the right of the consumer being violated in the above mentioned case.
2. Briefly explain any two points highlighting the importance of consumer protection from the consumer’s point of view.
Ans.
1. The Right to choose has been violated in the given case as Aryan was forced by the shopkeeper to buy a particular brand ofchocolate. According to the Right to Choose,
the consumer has a right to choose from a variety of products at competitive prices.Also, the marketers should offer a wide variety of products to buyers.
2. The importance of consumer protection from consumer’s point of view is outlined below:
● Consumer Ignorance:
● Widespread Exploitation of Consumers:
Q. 43. Geeta goes to a doctor to get herself treated for an injury in her hand. The doctor being her distant relative charged her nothing for the treatment. However, after a few days she develops an infection on the wound because the doctor didn’t use sterilized instruments.
Later on, she is advised by the surgeon to get the infected finger removed. Therefore, she is very angry with the doctor.
In context of the above case:
Can Geeta file a case against the doctor if she decides to take a legal action? Why or why not? Give a reason in support of your answer.
Ans. No, Geeta cannot file a case against the doctor because she is not a consumer because she didn’t pay for the services.
Q. 44. Abhishek bought a bottle of disinfectant spray from the nearby market. It had a knob which was to be opened in a particular way. However, there was no instruction on its package in this regard. Therefore, when he tried to open the knob in a casual way, some of the spray flew in his eyes. This affected his vision.
In context of the above case:
1. Name the right of consumer being violated by the company.
2. State any two directions which the consumer court can issue to the company after being satisfied with the genuineness of the complaint.
Ans.
1. The two rights of consumer being violated in the above case are Right to information and Right to safety.
2. The two directions which the consumer court can issue to the company after being satisfied with the genuineness of the complaint are as follows:
1. Not to offer hazardous goods for sale.
2. To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the marketer.
Q. 45. Ved purchased some medicines worth Rs. 1000 for his wife from a chemist in the nearby market. But, he didn’t take the cash memo for it from the chemist. After taking those medicines the condition of his wife deteriorated and she had to be hospitalized. Later on through a laboratory test it was certified that the medicines were spurious
1. Can he file a case against the chemist? Justify your answer with the help of a suitable reason.
2. State any two values which are jacking in the chemist.
Ans.
1. No, he cannot file a case against the chemist as he didn’t take the cash memo for it from the chemist. A cash memo is the conclusive proof of the purchase of goods.
2. The two values which are lacking in the chemist are:
● Humanity
● Trustworthiness.
Q. 46. Rajiv, a consumer purchased medicines without noticing the date of expiry. He also did not obtain the cash memo. Do you think he will be able to protect himself by the loss caused due to expired medicine? Give reasons to support your answer.
Ans. 46. Rajiv will not be able to protect himself by the loss caused due to expired medicine because Rajiv did not fulfil his responsibility on following grounds;
1. He did not go through the packing instructions mentioned on the label of the packet.
2. He did not obtain the cash memo from the seller. Cash memo is a proof of purchase and it is must for filing any complaint.
Q. 47. Bhuvan saw an advertisement in the newspaper regarding a steam iron and ordered for the purchase of the same to shopkeeper. What will be his responsibilities as a consumer so that he should not be exploited by the shopkeeper? Write any four such responsibilities
Ans. The four responsibilities which must be taken care of by Mr. Bhuvan Are, refer to topic responsibilities of consumers,
Q. 48. The owner of a restaurant is charging Rs. 30 for a bottle of water from customer.
Whereas the MRP of the bottle is Rs. 10. One of the consumers objected to it but the owner did not agreed and continued with that malpractice.
1. What are the possible reasons that other consumers are not agreeing.
2. Which right of consumer can remove this ignorance of consumer?
Ans.
1. The other consumers may not be aware of their rights.
2. Right to consumer education can help to spread awareness to consumers.
Q. 49. Anita purchased a book from ‘Satish Book Stores’. While reading the book she found that ten pages were missing. She approached the seller of the book and complained about the missing pages. The seller promised that if the publisher was ready to change the book he would change the same. After a week the seller informed Anita that the publisher had refused to change the book.
Where can Anita file a complaint against the seller of book? Give reason in support of your answer. Also, explain who is a ‘consumer’.
Ans.
1. District forum
2. Define consumers,
Important Notes for NCERT Class 12 Business Studies Chapter Consumer Protection
Protecting consumers from unpair trade practices, adopted by the producers and/or sellers of goods and services is termed as consumer protection. It not only includes educating consumers about their rights and responsibilities, but also helps in getting their grievances redressed.
Importance of consumer protection from consumer s point of view:
1. Consumers Ignorance: Majority of consumers are not aware of their rights and reliefs available to them as a result of which they are exploited. In order to save consumers from exploitation, consumer protection is needed.
2. Unorganised Consumers: In India consumers are still unorganised and there is lack of consumer organisations also, thus consumer protection is required.
3. Widespread exploitation of Consumers: Consumers are exploited on large scale by means of various unfair trade practices and consumer protection is required to protect them from exploitation.
Importance of Consumer Protection from the Point View of Business
1. Long term business interest: It is always in the interest of the business to keep its customer satisfied, Global competition could be win only after satisfying customers. Satisfied customers lead to repeat sales and help in increasing customer base of business.
2. Moral Justification: It is the moral duty of any business to take care of consumer interest & avoid any form of their exploitation & unfair trade practices like defective & unsafe products, adulteration, false & misleading advertising, hoardings black marketing etc.
3. Business uses society resources: Every business uses the resources of the society and thus it is their responsibility to work in the interest of the society.
4. Social Responsibility: A business has social responsibilities towards various groups like owner, workers, government, customers etc. Thus, customers should be provided qualitative goods at reasonable prices.
5. Government Intervention: If a business engages in any form of unfair trade practices then government take action against it, which adversely affect its goodwill. Rights of a Consumer Consumer protection Act, 1986 has provided six rights to the consumer, which are as follows:
1. Right to Safety : Consumer has the right to be protected against products, & services which are hazardous to health & life (should use ISI marked electric products)
2. Right to be informed : Consumer has right to have complete information about the product before buying it.
3. Right to choose : Consumer has a right to choose any product out of the available products as per his own decision/liking.
4. Right to be heard : Consumer has the right to file a complaint & to be heard in case of dissatisfaction with goods or services (use of grievance cell)
5. Right to Seek Redressal : Consumer has the right to get relief in case the product or service falls short of his expectations or is dangerous. He may be provided with replacement / removal of defect / compensation for any loss.
6. Right to consumer education: Consumer has right to acquire knowledge & to be well informed consumer throughout life. It makes consumer aware all the time.
Responsibilities / Duties of a Consumer
1. Consumer must exercise his right: Consumer must be aware of their rights with regard to the product or services they buy from the market.
2. Consumer must be a cautions consumer: While buying a product or services, a consumer should read labels carefully to learn about its every minute detail.
3. Consumer must file a complaint in an appropriate forum in case of any shortcoming in product / service availed.
4. Consumer must insist on cash memo; i.e., a proof of purchase & required to file a complaint.
5. Consumer must be a quality conscious: He should ask / look for ISI mark on electric goods. FPO mark on food products, Hall mark on jewellery etc.
6. Consumer must bring the discrepancy in the advertisement to the notice of the sponsor.
THE SALIENT FEATURES AND PROVISIONS OF CONSUMER PROTECTION ACT, 1986
Why was consumer protection act, 1986 enacted?
To protect & promote the interests of the consumers by providing various rights to them.
Under what circumstances complaints can be filed?
Fraudulent practices of traders & manufactures.
Goods are defective
Any deficiency in the services hired.
Redressal agencies under the consumer Protection Act 1986.
District forum
State Commission
We hope the above Consumer Protection Class 12 Business Studies are useful for you. If you have any questions then post them in the comments section below. Our teachers will provide you an answer. Also refer to MCQ Questions for Class 12 Business Studies
