Samacheer Kalvi 7th Social Science Term 3 Civics Solutions Chapter 2 Pdf
Tamilnadu Board Samacheer Kalvi 7th Social Science Term 3 Civics Solutions Chapter 2: Tamilnadu State Board Solution Class 7 Social Science Term 3 Civics Chapter 2 – Market and consumer protection.
Samacheer Kalvi 7th Social Science Civics Solutions Chapter 2: Overview
Board |
Samacheer Kalvi |
Class |
7 |
Subject |
Social Science Civics |
Term |
3 |
Chapter Name |
Market and consumer protection |
Unit 2: Market and consumer protection
Multiple choice questions: (marks:1)
1.) The legal metrology act passed on:
A.) 1986
B.) 1955
C.) 2009
Ans: 2009.
2.) The bureau of Indian standards act passed on:
A.) 1986
B.) 1980
C.) 1955
Ans: 1986.
3.) The essential commodities act passed on:
A.) 1955.
B.) 1980
C.) 1986
Ans: 1955.
Answer the following questions: (marks:1)
1.) What is a market?
Ans: Market is a set up where two or more parties engage in exchange of goods, services and information.
2.) What do you mean by consumer protection?
Ans: Consumer protection is a group of laws enacted to protect the rights of consumers, fair trade, competition and accurate information in the marketplace.
3.) When did the consumer protection act pass?
Ans: In October 1986 the consumer protection act passed and it came into action on December 24,1986.
4.) When did the prevention of black marketing and maintenance of supplies of essential commodities pass?
Ans: In 1980 the prevention of black marketing and maintenance of supplies of essential commodities act passed.
Write down the full form of the followings: (1×6)
1.) TRAI: Telecom Regulatory Authority of India.
2.) IRDAI: Insurance Regulatory and Development Authority of India.
3.) NCDRC: National Consumer Disputes Redressal Commission.
4.) SCDRC: State Consumer Disputes Redressal Commission.
5.) DCDRF: District Consumer Disputes Redressal Forum.
6.) CCPA: Central Consumer Protection Authority.
Answer the following questions: (marks:2/3)
1.) Who is a consumer?
Ans: A Consumer is a person who purchases a product or benefitted by a service for a consideration, either for his personal use or to earn his livelihood by means of self employment.
The consideration may be:
- Paid
- Promised
- Partly paid and partly promised.
It also includes a beneficiary of such goods or services when such use is made with the approval of such a person.
2.) Who is not a Consumer ?
Ans: A person is not a consumer if he or she:
- Purchases any goods or avails any service free of charge,
- Purchases a good or hires a service for commercial purpose
- Avails any service under contract of service.
3.) Write about the eight basic consumer rights?
Ans: The Eight Basic Consumer Rights are:
- The Right to Basic Needs.
- The Right to Safety.
- The Right to Information.
- The Right to Choose.
- The Right to Representation.
- The Right to Redress.
- The Right to Consumer Education.
- The Right to a Healthy Environment.
4.) Why did the government of India enact the consumer protection act,1986?
Ans: The consumer protection act enacted in 1986 in the Parliament of India to protect the interests of consumers. It makes for the establishment of consumer councils and other authorities for the settlement of consumer’s grievances and for matters connected therewith it. The act was passed in the Assembly in October 1986 and came into force on December 24, 1986.
5.) What is ‘ Magna Carta ‘?
Ans: COPRA or the consumer protection act,1986 is regarded as the ‘Magna Carta’ in the field of consumer protection for checking unfair trade practices, defects in goods and deficiencies in services as far as India is concerned. It has led to the establishment of a widespread network of consumer forums and appellate courts all over India. It has significantly impacted how businesses approach consumer complaints and has empowered consumers to a great extent.
6.) What is known as a state commission?
Ans: State Consumer Disputes Redressal Commission abbreviated as SCDRC also known as the “State Commission” established by the State Government in the State. It is a state level court that takes up cases valuing less than ₹10 million.
7.) What is known as a district forum?
Ans: District Consumer Disputes Redressal Forum or DCDRF also known as the
“District Forum” established by the State Government in each district of the State. The State Governments may establish more than one District Forum in a district. It is a district level court that deals with cases valuing up to ₹2 million.
Answer the following questions: (marks:5)
1.) What is a market? Write down the features of a market? (2+3)
Ans: Market is a set up where two or more parties engage in exchange of goods, services and information. Ideally a market is a place where two or more parties are involved in buying and selling. The two parties involved in a transaction are called seller and buyer. The seller sells goods and services to the buyer in exchange for money. There has to be more than one buyer and seller for the market to be competitive.
- Features of a Market: In economics, the term market refers to the shops for one commodity or a set of commodities. For example a market for rice, a market for cloth, a market for electronics goods, etc.
a.) A market is also not restricted to one physical or geographical location. It covers a general wide area and the demand and supply forces of the region.
b.) There must be a group of buyers and sellers of the commodity to constitute a market. And the relations between these sellers and buyers must be business relations.
c.) Both the sellers and buyers must have access to knowledge about the market. There should be an awareness of the demand for products, consumer choices, and preferences, fashion trends, etc.
d.) At any given time only one price can be prevalent in the market for the goods and services. This is only possible in the existence of perfect competition.
2.) Write about unfair trade practices?
Ans: An “unfair trade practice” means a trade practice, which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method, or unfair or deceptive practice. Some of these practices include:
- False representation
- When goods and services are not of stated standard, quality or grade
- When second hand, renovated goods are sold as new ones
- When goods and services do not have the claimed use, usefulness or benefit
- When products or services do not have the claimed warranty or guarantee
- When the price of a product or service is misleading.
- False and misleading advertisement of selling at a bargain price.
- Offering gifts, prizes, etc. to lure customers with no intention of providing them.
- Selling goods which do not fall within the safety standards set up by competent authority.
- Hoardings or destroying goods with the intention of raising the cost of these or similar goods manufactured in greater number so as to manipulate higher prices.
- Manufacturing or offering spurious goods or adopting deceptive practices in the provision of services.
3.) Write down the types of the Market?
Ans: The types of the market are as follows:
A.) On the Basis of Geographic Location:
- Local Markets: In such a market the buyers and sellers are limited to the local region or area.
- Regional Markets: These markets cover a wider area than local markets like a district, or a cluster of few smaller states.
- National Market: This is when the demand for the goods is limited to one specific country or the government may not allow the trade of such goods outside national boundaries.
- International Market: When the demand for the product is international and the goods are also traded internationally in bulk quantities, we call it an international market.
B.) On the Basis of Time:
- Very Short Period Market: This is when the supply of the goods is fixed, and so it cannot be changed at once. Such as, flower market, fruit market etc
- Short Period Market: The market is slightly longer than the previous one. Here the supply can be slightly adjusted.
- Long Period Market: In this type of market the supply can be changed easily by scaling production. So it can change according to the demand of the market. So the market will determine its equilibrium price in time.
C.) On the Basis of Nature of Transaction:
- Spot Market: This is where spot transactions occur, that is the money is paid immediately. There is no system of credit.
- Future Market: This is where the transactions are credit transactions. There is a promise to pay the consideration sometime in the future. D. On the Basis of Regulation:
- Regulated Market: In such a market there is some oversight by appropriate government authorities. This is to ensure there are no unfair trade practices in the market. Such markets may refer to a product or even a group of products. For example, the stock market is a highly regulated market.
- Unregulated Market: This is an absolutely free market. There is no oversight or regulation, the market forces decide everything.
E.) On the basis of nature of competition
- Monopoly: Monopoly refers to a market structure in which there is a single producer or seller that has a control on the entire market. This single seller deals in the products that have no close substitute.
- Oligopoly:The term oligopoly has been derived from two Greek words, Oligoi means few and poly means control. Therefore, oligopoly refers to a market form in which there are few sellers dealing either in homogeneous or differentiated products.
4.) What is the consumer protection act of 2019? Write down the highlights of it?
Ans: Indian Parliament, in August 2019, passed the landmark Consumer Protection Bill, 2019 which aims to provide the timely and effective administration and settlement of consumer disputes in this Digital Age. The New Act will come into force on such date as the Central Government may notify. The New Act seeks to replace more than 3 decades old Consumer Protection Act, 1986.
Highlights of the New Act:
A.) E-Commerce Transactions: The New Act has widened the definition of ‘consumer’. The definition now includes any person who buys any goods, whether through offline or online transactions, electronic means, teleshopping, direct selling or multi-level marketing.
B.) Enhancement of Pecuniary Jurisdiction: Revised pecuniary limits have been fixed under the New Act. Accordingly, the district forum can now entertain consumer complaints where the value of goods or services paid does not exceed INR 10,000,000 (Indian Rupees Ten Million). The State Commission can entertain disputes where such value exceeds INR 10,000,000(Indian Rupees Ten Million) but does not exceed INR 100,000,000(Indian Rupees One Hundred Million), and the National Commission can exercise jurisdiction where such value exceeds INR 100,000,000 (INR One Hundred Million).
C.) E-Filing of complaints: The New Act contains enabling provisions for consumers to file complaints electronically and for hearing and examining parties through video-conferencing.
D.) Establishment of Central Consumer Protection Authority: The New Act proposes the establishment of a regulatory authority known as the Central Consumer Protection Authority or CCPA, with wide powers of enforcement. The CCPA will have an investigation wing, headed by a DirectorGeneral, which may conduct inquiry or investigation into consumer law violations.
E.) Unfair Trade Practices: The New Act introduces a specific broad definition of Unfair Trade Practices, which also includes sharing of personal information given by the consumer in confidence, unless such disclosure is made in accordance with the provisions of any other law.
F.) Penalties for Misleading Advertisement: The CCPA may impose a penalty of up to INR 1,000,000 on a manufacturer or an endorser, for a false or misleading advertisement. The CCPA may also sentence them to imprisonment for up to two years for the same. In case of a subsequent offence, the fine may extend to INR 5,000,000 and imprisonment of up to five years. The CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year. For every subsequent offence, the period of prohibition may extend to three years.
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