NCERT Solutions Class 12 Business Studies Chapter 11 Consumer Protection
NCERT Solutions Class 12 Business Studies Chapter 11 Consumer Protection: National Council of Educational Research and Training (NCERT) Class 12 Business Studies Chapter 11 Solutions – Consumer Protection.
Board |
NCERT |
Class |
12 |
Subject |
Business Studies |
Chapter |
11 |
Chapter Name |
Consumer Protection |
Topic |
Exercise Solutions |
Very Short Answer Type
1.) Under which consumer right does a business firm set up consumer grievance cell?
Ans – The associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII) have laid down their code of conduct which lay down for their members the guidelines in their dealings with consumers.
2.) Which quality certification mark is used for agricultural products?
Ans- The Quality certification mark used for agricultural products are – AGMARK ,Eco – mark.
3.) What is the jurisdiction of cases that can be filed in a State Commission?
Ans – The jurisdiction of cases that can be filed in a State Commission are – State Commission has a jurisdiction to entertain complaints where value of goods and services paid as consideration exceeds one crore but does not exceed ten crore rupees.
4.) State any two relief available to consumers under CPA.
Ans – Any two relief available under Consumer Protection Act are as follows:
i) To replace the defective product with a new one, free from any defect.
(ii) To refund the price paid for the product, or the charges paid for the service.
5.) Name the component of product mix that helps the consumer to exercise the right to information.
Ans – The component of product mix that helps the consumer to exercise the right to information are –
Ingredients used , Date of Manufacture , Price , Quantity etc.
Short Answer Type
1.) Enumerate the various Acts passed by the Government of India which help in protection of consumers’ interests.
Ans – The various Acts passed by the Government of India which help in protection of consumers’ interests are as follows:
i) The Consumer Protection Act 1986: This Act seeks to protect and promote the interest of the consumers.
ii) The Indian Contract Act 1872: This Act lays down the conditions in which the promises made by the parties to a contract will be binding on each other .
iii) The Sale Of Goods Act ,1930: This Act provides some safeguards and reliefs to the buyers of the goods in case the goods purchased do not comply with express or implied conditions or warranties.
2.) What are the responsibilities of a consumer?
Ans – The responsibilities of a consumer are as follows:
i) Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
(ii) Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry, etc.
(iii) Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
(iv) Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates,etc.
3.) Who can file a complaint in a consumer court?
Ans – The following person can file a complaint in a consumer court
i) A consumer can file a complaint on his / her own and does not need the service of advocate .
ii)Any registered consumer’s association.
iii) The Central or State Government .
iv) A Legal heir or representative of a deceased consumer .
4.) 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 Consumer Right being reinforced by this proposal is Right to Information or Right To Be Informed.
The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc. It is because of this reason that the legal framework in India requires the manufactures to provide such information on the package and label of the product.
5.) Who is a consumer as per CPA?
Ans – A consumer according to Consumer Protection Act is defined as of the following:
i) Any person who buys any goods for consideration ,which has been paid or promised , or partly paid and partly promised or under any scheme of deferred payment.
ii) Any person who hires or avails any service , for a consideration which has been paid or promised , or partly paid and partly promised , or under any system of deferred payment.
Long Answer Questions :
1.) Explain the importance of consumer protection from the point of view of a business.
Ans – The importance of consumer protection from the point of view of a business are as follows:
i) Long-term Interest of Business: Enlightened businesses realise that it is in their long-term interest to satisfy
their customers. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer-base of business.
ii) Business uses Society’s Resources: B u s i n e s s organisations use resources which belong to the society.
They, thus, have a responsibility to supply such products and render such services which are in public interest and would not impair public confidence in them.
iii) Social Responsibility: A business has social responsibilities towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders, their interest has to be well taken care of.
iv) Moral Justification: It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation. Thus, a business must avoid unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, etc.
v) Government Intervention: A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company.
2.) Explain the rights and responsibilities of consumer?
Ans – The Rights Of a Consumer are as follows:
i) Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life, health and property.
ii) Right to be informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc.
iii) Right to be assured: The consumer has the freedom to access variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size, etc.
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.
The responsibilities f a consumer are as follows:
i) Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
(ii) Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry, etc.
(iii) Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
(iv) Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.
3.) What are various ways in which the objective of consumer protection can be achieved?
Ans – The various ways in which the objective of consumer protection can be achieved are as follows :
i) Self-regulation by Business: Socially responsible firms follow ethical standards and practices in dealing with their customers. Good and ethical practices encourage firms to realise that it is in their long-term interest to serve the customers in a rightful manner
ii) Business Associations: The associations of trade, commerce and business like Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII) have laid down their code of conduct which lay 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 available to him, would be in a position to raise his voice against any unfair trade practices or unscrupulous exploitation.
iv) Consumer Organisations: Consumer organisations play an important role in educating consumers about their rights and providing protection to 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 measures. For example, the GOI has set up a toll-free national consumer Helpline Number 1800114000 for this purpose. The legal framework in India encompasses various legislations which provide protection to consumers.
4.) Explain the redressal mechanism available to consumers under the Consumer Protection Act, 2019.
Ans – The consumer grievances are redressed by the three tire machinery:
i) District Commission:District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed one crore rupees.
ii) State Commission: It is established by the respective state government and ordinarily function at the state capital. State Commission has a jurisdiction to entertain complaints where value of goods and services paid as consideration exceeds one crore but does not exceed ten crore rupees.
iii) National Commission: The National Commission has territorial jurisdiction over the whole country. National Commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration exceeds ten crore of rupees.
5.) Explain the role of consumer organisations and NGOs in protecting and promoting consumer’s interest.
Ans –The role of consumer organisations and NGOs in protecting and promoting consumer’s interest are as follows:
i) (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 against unscrupulous, exploitative and unfair trade practices of sellers.
(v) Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking legal remedy.
(vi) Filing complaints in appropriate consumer courts on behalf of the consumers.
6.) 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.
(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.
Ans – a) The right exercised by Mrs Mathur is Right to seek Redressal.
b)The Right that helped Mrs Mathur to avail the compensation is Right to be Heard and Right to seek Redressal . This right enables a consumer to lodge a complaint and to be heard in case of dissatisfaction with a good or services. Under Right to seek redressal , consumers are allowed many reliefs like – replacement of products, compensation paid etc.
c) The Consumer Responsibility fulfilled by Mrs Mathur is – Filing of complaint in appropriate Consumer Forums for any kind of faults in the products or services .
d) Any other two responsibilities assumed by consumers are as follows:
i) Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
(ii) Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry, etc.