Chapter 12: Consumer Protection NCERT SOLUTION CLASS 12TH BUSINESS STUDIES| EDUGROWN NOTES

Short answer Type Question:

Q.1Under which consumer right does a business firm set up a consumer grievance cell? 

ANSWER: The consumer right that requires a business to establish a consumer grievance cell is known as the “Right to be Heard.” Consumers have the right to file a complaint if they are dissatisfied with a service they have received.

Q.2 Which quality certification mark is used for agricultural products? 

ANSWER: The AGMARK sign, issued and certified by the Directorate of Marketing and Inspection of the Government of India is the quality certification mark used for agricultural products.

Q.3 What is the jurisdiction of cases that can be filed in a State Commission? 

ANSWER: The state commission will accept cases where the value of the disputed goods and services, as well as the compensation sought, fall between 1 crore and 10 crore.

Q.4 State any two relief available to consumers under CPA. 

ANSWER: Consumers can obtain the following reliefs under the CPA, or Consumer Protection Act:

• Removal of the deficiencies in the services.
• Replacement of damaged goods with new ones that are free of flaws.
  

Q.5 Name the component of the product mix that helps the consumer to exercise the right to information.

ANSWER: The component of the product mix that enables the consumer to exercise his or her right to information is known as the product’s quality certification.

Q.6 Enumerate the various Acts passed by the Government of India which help in the protection of consumers’ interests. 

ANSWER: The following are some of the Acts passed by the Government of India to protect the interests of consumers.

• The 1986 Consumer Protection Act: This Act protects consumer interests against various forms of exploitation, such as defective goods, deficiencies in services, unfair trade practices, and so on. For the redressal of consumer grievances, the Act established a three-tier machinery consisting of District Forums, State Commissions, and the National Commission.
• The Contract Act of 1982: This Act defines the conditions under which a contract’s promises are binding. Furthermore, the Act specifies the remedies available in the event of a breach of contract.
• The Sale of Goods Act, 1930: The Act provides consumers with protection and relief if the goods they purchase do not conform to the express or implied conditions and warranties.
• The Agriculture Produce (Grading and Marking) Act of 1937: This Act establishes grade specifications for agricultural and livestock commodities. It specifies the process for grading, packing, and labeling agricultural products. AGMARK is the quality certification mark provided by the Act.
• The Prevention of Food Adulteration Act of 1954: This Act was enacted to prevent food adulteration and to ensure the purity of food items.
• The Standards of Weights and Measures Act of 1976: This Act protects consumers from exploitative practices involving under-weight and under measurement of goods.
• The Essential Commodities Act of 1955: This Act establishes control over the production, supply, and distribution of essential goods. It also regulates inflationary trends and ensures that goods are distributed equally. It also keeps an eye out for anti-social activities like hoarding and black marketing.
• Trade Marks Act of 1999: This Act was enacted to prevent the use of false marks on goods and, as a result, to protect consumers from such goods.
• The Competition Act of 2002: This Act was enacted to prevent business firms from engaging in practices that impede market competition.
• The Bureau of Indian Standards Act (1986) : The Bureau of Indian Standards was established under the Act to develop standards for the quality of goods and to provide quality certification through the BIS certification scheme based on these standards. ISI is the quality certification mark provided by the Act. In addition, a grievance cell has been established to address complaints about the quality of the products.

Q.7 What are the responsibilities of a consumer? 

ANSWER: A consumer is responsible for protecting his or her own interests and avoiding exploitation. The following are some of a consumer’s responsibilities.

• Awareness: A consumer should be aware of the various goods and services that are available so that he can choose and purchase carefully and wisely.
• Seeking Quality Marks: Before purchasing goods, a consumer should always look for quality certification marks such as ISI in the case of electrical goods, AGMARK in the case of agricultural goods, and so on.
• Requesting Cash Memo: When purchasing goods and services, a consumer should always request cash memos or bills. The bill serves as proof of purchase and can be used in the future.
• Reading Labels: Product labels provide information such as price, weight, and expiration date. The labels must be carefully read.
• Honest Transactions: A consumer should always opt for legal transactions and avoid illegal trade practices such as black marketing and hoarding.
• Ensure Safety: To ensure the safe use of the product, a consumer must carefully read the manuals and instructions provided by the manufacturer.
• Complaint Filing: If the product is found to be defective or if there is a deficiency in the product’s quality, a complaint must be filed in the appropriate forum.
• Consumer Societies: Consumer organizations and societies must be established in order to promote consumer education and awareness.
• Environmental Protection: Consumers must also work to protect the environment by avoiding waste, pollution, and so on.
  

Q.8 Who can file a complaint in a consumer court? 

ANSWER: Consumer courts and consumer forums have been established under the Consumer Protection Act to address consumer complaints.

The following people have the right to file a complaint in a consumer court.

• a consumer; or
• voluntary consumer association which is registered under any appropriate law for the time being in force; or
• the Central Government or State Government; or
• the Central Authority; or
• one or more consumers, where they all share a common interest; or
• legal heir or legal representative of the consumer in case of death of a consumer, ; or
• Parent or legal guardian of the consumer, in case of a consumer being a minor.
  

Q.9 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.

ANSWER: The “right to be informed” is a consumer right that is reinforced by this proposal. In this right, the consumer has the right to complete information about the product that he or she wishes to purchase, which can include details such as the date of manufacture, quantity, expiry date, and directions for use. As a result of this legal obligation, manufacturers are required to publish all such information on the product’s packaging.

Q.10 Who is a consumer as per CPA?

ANSWER: Under the Consumer Protection Act 2019, a consumer is a person who buys any goods or avails services for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment.

Q.11 Explain the importance of consumer protection from the point of view of a business. 

ANSWER: Consumer protection refers to the education of consumers about their rights and responsibilities, as well as the resolution of their grievances and complaints. Consumer protection is critical not only for consumers but also for businesses.

The following points emphasize the importance of consumer protection from a business standpoint. 

• Long-Term Interest of Business: With rising competition and a desire to stay in business, consumer satisfaction and interest are critical for any company. A company’s goodwill and reputation are built by taking care of the interests of its customers. A satisfied customer not only returns and generates repeated sales for the company, but also attracts new customers by spreading the word. Thus, it is in the long run benefit of the business to protect the interests of consumers. 
• Business Uses Society’s Resources: A business uses societal resources to produce a variety of goods and services. A business earns profits by selling these goods and services to society. As a result, it is their responsibility to provide goods and services that are in the best interests of society as a whole.
• Moral Justification: Moral values and ethics are important in business today. Every business has a moral obligation to protect the interests of its customers. They must adhere to ethical and moral values and avoid any form of consumer exploitation, such as unfair trade practices, adulteration, and so on.
• Social Responsibility: As a business earns profits by selling various goods and services to customers, it becomes their responsibility to look after their interests and satisfaction.
• Government Interference: Any business that engages in any form of consumer exploitation, such as unfair trade practices, adulteration, and so on, invites government intervention. Such government meddling taints the company’s goodwill and image. As a result, it is in the best interests of the business to voluntarily follow such practices that protect the interests of the consumers.

Long Answer Type Questions:

1. Explain the rights and responsibilities of a consumer.
Ans: The Consumer Protection Act provides six rights to consumers. They are as follows
(i) Right to Safety
The consumer has a right to be protected against goods and services which are hazardous to life, e.g., sometimes we purchased the food items of low quality which causes severe
problems. Thus, in this case, we should purchased good quality and FPO labelled products.
(ii) 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 manufactures have to provide such information on the package and label of the product.
(iii) 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. ‘
(iv) 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.
(v) Right to Seek Redressal
The Consumer Protection Act provides a number of reliefs to the consumer including replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer etc.
(vi) Right to Consumer Education
The consumer has a right to acquire knowledge about products. He should be aware about his rights and the reliefs available to him in case of a product/service falling short of his expectations. Many consumer organisations and some enlightened businesses are taking an active part in educating consumers in this respect.
Consumer Responsibilities
A consumer must be aware about these responsibilities while purchasing, using and consuming goods and services
(i) Consumer must be aware of all their rights.
(ii) Consumer must be careful while purchasing a product.
(iii) He should file complaint for the redressal of genuine grievances.
(iv) Consumer must buy a standardised good.
(v) He should ask for a cash-memo on purchase of goods and services

2. What are various ways in which the objective of consumer protection can be achieved? Explain the role of consumer organisations and NGOs in this regard?
Ans: There are various ways in which the objective of consumer protection can be achieved
(i) Self Regulation by Business Socially responsible firms follow ethical standards and practices in dealing with their customers. Many firms have set up their customer service and grievance cells to redress the problems and grievances of their consumers.
(ii) Business Associations
The associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Conference of Indian Industries (ClI) have laid down their code of conduct which lays down for their members the guidelines in their dealings with the customers.
(iii) Consumer Awareness
A consumer, who is well informed about his rights and the reliefs, would be in a position to raise his voice against any unfair trade practices or exploitation.
(iv) Consumer Organisations
Consumer organisations plays an important role in educating consumers about their rights and protecting them. These organisations can force business firms to avoid malpractices and exploitation of consumers.
(v) Government
The Government can protect the interests of the consumers by enacting various legislations. The legal framework in India encompasses various legislations which provide protection to consumer, the most important of these regulations is the Consumer Protection Act, 1986. The Act provides for a three-tier machinery at the District, State and National levels for redressal of consumer grievance.
Role of Consumer Orgs and NGOs
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
(i) Educating the general public about consumer rights by organising training programmes, seminars and workshops.
(ii) Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other – matters of interest.
(iii) 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.
(iv) Encouraging consumers to strongly protest and take an action L against unscrupulous, exploitation and unfair trade practices of sellers.
(v) Providing legal assistance to consumers by providing aid, legal advice etc in seeking legal remedy.
(vi) Filing complaints in appropriate consumer courts on behalf of the consumers.
(vii) Taking an initiative in filing cases in consumer court in the interest of the general public, not for any individual.https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-7398766921532682&output=html&h=280&adk=1731550593&adf=20262191&pi=t.aa~a.1381849204~i.22~rp.4&w=750&fwrn=4&fwrnh=100&lmt=1639029454&num_ads=1&rafmt=1&armr=3&sem=mc&pwprc=3683862639&psa=1&ad_type=text_image&format=750×280&url=https%3A%2F%2Fwww.learncbse.in%2Fncert-solutions-for-class-12-business-studies-chapter-12-consumer-protection%2F&flash=0&fwr=0&pra=3&rh=188&rw=750&rpe=1&resp_fmts=3&wgl=1&fa=27&adsid=ChEIgJ7hjQYQtOusuuXdh6XRARI5AFfg2fGkZA9HNEq3kSPeCuB5NVBhdpfFJaenmEVHPH9mTXT88J0KxsJk-nSOMWDeC_FscMmPNKm4&uach=WyJXaW5kb3dzIiwiMTAuMC4wIiwieDg2IiwiIiwiOTYuMC40NjY0LjkzIixbXSxudWxsLG51bGwsIjY0Il0.&tt_state=W3siaXNzdWVyT3JpZ2luIjoiaHR0cHM6Ly9wYWdlYWQyLmdvb2dsZXN5bmRpY2F0aW9uLmNvbSIsInN0YXRlIjoxN31d&dt=1639542068540&bpp=2&bdt=18957&idt=2&shv=r20211207&mjsv=m202112060101&ptt=9&saldr=aa&abxe=1&cookie=ID%3Dc1df342b19723764-227cad9c69cf0002%3AT%3D1639218299%3ART%3D1639218299%3AS%3DALNI_Ma8TICz7yUoaoG-9IftcUzf9aclAQ&prev_fmts=0x0%2C728x280%2C1254x579&nras=3&correlator=5997228378489&frm=20&pv=1&ga_vid=818115747.1639218298&ga_sid=1639542050&ga_hid=955185195&ga_fc=1&u_tz=330&u_his=1&u_h=715&u_w=1270&u_ah=681&u_aw=1270&u_cd=24&u_sd=1.513&dmc=8&adx=57&ady=5587&biw=1254&bih=579&scr_x=0&scr_y=3305&eid=31063751%2C182982000%2C182982200%2C31063858%2C31063247%2C21067496&oid=2&pvsid=237601351877984&pem=742&tmod=717&eae=0&fc=1408&brdim=0%2C0%2C0%2C0%2C1270%2C0%2C1270%2C681%2C1270%2C578&vis=1&rsz=%7C%7Cs%7C&abl=NS&fu=128&bc=31&ifi=4&uci=a!4&btvi=1&fsb=1&xpc=aSOJBfzGek&p=https%3A//www.learncbse.in&dtd=55

3. Explain the redressal mechanism available to consumers under the Consumer Protection Act, 1986?
Ans: For the redressal of consumer grievances, the Consumer Protection Act provides for setting up of a three-tier enforcement machinery at the District, State and the National levels.https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-7398766921532682&output=html&h=280&adk=1733057069&adf=2420699232&pi=t.aa~a.1680580231~i.4~rp.1&w=750&fwrn=4&fwrnh=100&lmt=1639029454&num_ads=1&rafmt=1&armr=3&sem=mc&pwprc=3683862639&psa=1&ad_type=text_image&format=750×280&url=https%3A%2F%2Fwww.learncbse.in%2Fncert-solutions-for-class-12-business-studies-chapter-12-consumer-protection%2F&flash=0&fwr=0&pra=3&rh=188&rw=750&rpe=1&resp_fmts=3&wgl=1&fa=27&adsid=ChEIgJ7hjQYQtOusuuXdh6XRARI5AFfg2fGkZA9HNEq3kSPeCuB5NVBhdpfFJaenmEVHPH9mTXT88J0KxsJk-nSOMWDeC_FscMmPNKm4&uach=WyJXaW5kb3dzIiwiMTAuMC4wIiwieDg2IiwiIiwiOTYuMC40NjY0LjkzIixbXSxudWxsLG51bGwsIjY0Il0.&tt_state=W3siaXNzdWVyT3JpZ2luIjoiaHR0cHM6Ly9wYWdlYWQyLmdvb2dsZXN5bmRpY2F0aW9uLmNvbSIsInN0YXRlIjoxN31d&dt=1639542068548&bpp=2&bdt=18965&idt=2&shv=r20211207&mjsv=m202112060101&ptt=9&saldr=aa&abxe=1&cookie=ID%3Dc1df342b19723764-227cad9c69cf0002%3AT%3D1639218299%3ART%3D1639218299%3AS%3DALNI_Ma8TICz7yUoaoG-9IftcUzf9aclAQ&prev_fmts=0x0%2C728x280%2C1254x579%2C750x280&nras=4&correlator=5997228378489&frm=20&pv=1&ga_vid=818115747.1639218298&ga_sid=1639542050&ga_hid=955185195&ga_fc=1&u_tz=330&u_his=1&u_h=715&u_w=1270&u_ah=681&u_aw=1270&u_cd=24&u_sd=1.513&dmc=8&adx=57&ady=5945&biw=1254&bih=579&scr_x=0&scr_y=3677&eid=31063751%2C182982000%2C182982200%2C31063858%2C31063247%2C21067496&oid=2&psts=AGkb-H-xShvOcvFo31tv9SJinAw9SZsm91qxLcN117-lZ5iUK1fK8wKsLKzzVZBnWTNvwnQp7oShXakQsw10%2CAGkb-H8aty6eLlCpBu8d7eJzie0AbZyxU5CmYOTSpW3z_7Eow1r9gPsPCUtW-wkW–ZweuPrRmY4wmXZyT41&pvsid=237601351877984&pem=742&tmod=717&eae=0&fc=1408&brdim=0%2C0%2C0%2C0%2C1270%2C0%2C1270%2C681%2C1270%2C578&vis=1&rsz=%7C%7Cs%7C&abl=NS&cms=2&fu=128&bc=31&ifi=5&uci=a!5&btvi=2&fsb=1&xpc=GP1ViUK5WA&p=https%3A//www.learncbse.in&dtd=2689
(i) District Forum A complaint can be made to the appropriate District Forum when the value of goods or services, along with the compensation claimed, does not exceed ? 20 lakhs. In case the aggrieved party is not satisfied with the order of the District Forum, he can appeal before the State Commission within 30 days.https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-7398766921532682&output=html&h=280&adk=1733057069&adf=2554531097&pi=t.aa~a.1680580231~i.8~rp.1&w=750&fwrn=4&fwrnh=100&lmt=1639029454&num_ads=1&rafmt=1&armr=3&sem=mc&pwprc=3683862639&psa=1&ad_type=text_image&format=750×280&url=https%3A%2F%2Fwww.learncbse.in%2Fncert-solutions-for-class-12-business-studies-chapter-12-consumer-protection%2F&flash=0&fwr=0&pra=3&rh=188&rw=750&rpe=1&resp_fmts=3&wgl=1&fa=27&adsid=ChEIgJ7hjQYQtOusuuXdh6XRARI5AFfg2fGkZA9HNEq3kSPeCuB5NVBhdpfFJaenmEVHPH9mTXT88J0KxsJk-nSOMWDeC_FscMmPNKm4&uach=WyJXaW5kb3dzIiwiMTAuMC4wIiwieDg2IiwiIiwiOTYuMC40NjY0LjkzIixbXSxudWxsLG51bGwsIjY0Il0.&tt_state=W3siaXNzdWVyT3JpZ2luIjoiaHR0cHM6Ly9wYWdlYWQyLmdvb2dsZXN5bmRpY2F0aW9uLmNvbSIsInN0YXRlIjoxN31d&dt=1639542068556&bpp=1&bdt=18973&idt=1&shv=r20211207&mjsv=m202112060101&ptt=9&saldr=aa&abxe=1&cookie=ID%3Dc1df342b19723764-227cad9c69cf0002%3AT%3D1639218299%3ART%3D1639218299%3AS%3DALNI_Ma8TICz7yUoaoG-9IftcUzf9aclAQ&prev_fmts=0x0%2C728x280%2C1254x579%2C750x280%2C750x280&nras=5&correlator=5997228378489&frm=20&pv=1&ga_vid=818115747.1639218298&ga_sid=1639542050&ga_hid=955185195&ga_fc=1&u_tz=330&u_his=1&u_h=715&u_w=1270&u_ah=681&u_aw=1270&u_cd=24&u_sd=1.513&dmc=8&adx=57&ady=6355&biw=1254&bih=579&scr_x=0&scr_y=4044&eid=31063751%2C182982000%2C182982200%2C31063858%2C31063247%2C21067496&oid=2&psts=AGkb-H-xShvOcvFo31tv9SJinAw9SZsm91qxLcN117-lZ5iUK1fK8wKsLKzzVZBnWTNvwnQp7oShXakQsw10%2CAGkb-H8aty6eLlCpBu8d7eJzie0AbZyxU5CmYOTSpW3z_7Eow1r9gPsPCUtW-wkW–ZweuPrRmY4wmXZyT41&pvsid=237601351877984&pem=742&tmod=717&eae=0&fc=1408&brdim=0%2C0%2C0%2C0%2C1270%2C0%2C1270%2C681%2C1270%2C578&vis=1&rsz=%7C%7Cs%7C&abl=NS&fu=128&bc=31&ifi=6&uci=a!6&btvi=3&fsb=1&xpc=s2F7QDO69i&p=https%3A//www.learncbse.in&dtd=2779
(ii) State Commission A complaint can be made to the appropriate State Commission when the value of the goods or services, along with the compensation claimed, exceeds ? 20 lakhs but does not exceed Rs 1 crore. The appeals against the orders of District Forum can also be filed before the State Commission. In case the party is not satisfied with the order of the State Commission, he can appeal before the National Commission within 30 days of the passing of the order by State Commission.https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-7398766921532682&output=html&h=280&adk=1733057069&adf=3755065469&pi=t.aa~a.1680580231~i.12~rp.1&w=750&fwrn=4&fwrnh=100&lmt=1639029454&num_ads=1&rafmt=1&armr=3&sem=mc&pwprc=3683862639&psa=1&ad_type=text_image&format=750×280&url=https%3A%2F%2Fwww.learncbse.in%2Fncert-solutions-for-class-12-business-studies-chapter-12-consumer-protection%2F&flash=0&fwr=0&pra=3&rh=188&rw=750&rpe=1&resp_fmts=3&wgl=1&fa=27&adsid=ChEIgJ7hjQYQtOusuuXdh6XRARI5AFfg2fGkZA9HNEq3kSPeCuB5NVBhdpfFJaenmEVHPH9mTXT88J0KxsJk-nSOMWDeC_FscMmPNKm4&uach=WyJXaW5kb3dzIiwiMTAuMC4wIiwieDg2IiwiIiwiOTYuMC40NjY0LjkzIixbXSxudWxsLG51bGwsIjY0Il0.&tt_state=W3siaXNzdWVyT3JpZ2luIjoiaHR0cHM6Ly9wYWdlYWQyLmdvb2dsZXN5bmRpY2F0aW9uLmNvbSIsInN0YXRlIjoxN31d&dt=1639542068563&bpp=1&bdt=18980&idt=1&shv=r20211207&mjsv=m202112060101&ptt=9&saldr=aa&abxe=1&cookie=ID%3Dc1df342b19723764-227cad9c69cf0002%3AT%3D1639218299%3ART%3D1639218299%3AS%3DALNI_Ma8TICz7yUoaoG-9IftcUzf9aclAQ&prev_fmts=0x0%2C728x280%2C1254x579%2C750x280%2C750x280%2C750x280&nras=6&correlator=5997228378489&frm=20&pv=1&ga_vid=818115747.1639218298&ga_sid=1639542050&ga_hid=955185195&ga_fc=1&u_tz=330&u_his=1&u_h=715&u_w=1270&u_ah=681&u_aw=1270&u_cd=24&u_sd=1.513&dmc=8&adx=57&ady=6791&biw=1254&bih=579&scr_x=0&scr_y=4601&eid=31063751%2C182982000%2C182982200%2C31063858%2C31063247%2C21067496&oid=2&psts=AGkb-H-xShvOcvFo31tv9SJinAw9SZsm91qxLcN117-lZ5iUK1fK8wKsLKzzVZBnWTNvwnQp7oShXakQsw10%2CAGkb-H8aty6eLlCpBu8d7eJzie0AbZyxU5CmYOTSpW3z_7Eow1r9gPsPCUtW-wkW–ZweuPrRmY4wmXZyT41&pvsid=237601351877984&pem=742&tmod=717&eae=0&fc=1408&brdim=0%2C0%2C0%2C0%2C1270%2C0%2C1270%2C681%2C1270%2C578&vis=1&rsz=%7C%7Cs%7C&abl=NS&fu=128&bc=31&ifi=7&uci=a!7&btvi=4&fsb=1&xpc=SkkocALiuP&p=https%3A//www.learncbse.in&dtd=3505
(iii) National Commission A complaint can be made to the National Commission when the value of the goods or services, along with the compensation claimed exceeds Rs 1 crore. The appeals against the orders of a State Commission can also be filed before the National Commission. An order passed by the National Commission in a matter of its original justification is appealable before the supreme court. This means that only those appeals, where the value of goods + services in question, along with the compensation claimed, exceeded Rs. 1 crore and where the aggrieved party was not satisfied with the order of the National Commission, can be taken to the Supreme Court of India.