Business Studies class 12 chapter 11 questions and answers Consumer Protection

Class 12 business studies chapter 11 ncert solutions: Consumer Protection class 12 questions and answers

Textbook	Ncert
Class	Class 12
Subject	Business Studies
Chapter	Chapter 11
Chapter Name	Consumer Protection class 12 ncert solutions
Category	Ncert Solutions
Medium	English

Are you looking for business studies class 12 chapter 11 questions and answers? Now you can download Consumer Protection class 12 questions and answers pdf from here.

Very Short Answer Type:

Question 1: Under which consumer right does a business firm set up consumer grievance cell?

Answer 1: The consumer right that makes a business firm set up a consumer grievance cell is known as “Right to be heard”. Under this right, a consumer can file a complaint in case of dissatisfaction that arises from availing of a service.

Question 2: Which quality certification mark is used for agricultural products?

Answer 2: 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.

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

Answer 3: The State Commission has jurisdiction over consumer disputes where the claim amount exceeds ₹50 lakh but does not exceed ₹2 crore, as per the Consumer Protection Act, 2019. It also hears appeals against District Commission orders.

Question 4: State any two relief available to consumers under CPA.

Answer 4: Relief available under CPA, 2019 are:
(i) To remove the defect in goods or deficiency in service.
(ii) Replacing the defective product with a new one, free from any defect.

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

Answer 5: The component of the product mix that helps the consumer to exercise the right to information is called the quality certification of the product.

Short Answer Type:

Question 1: Enumerate the various Acts passed by the Government of India which help in protection of consumers’ interests.

Answer 1: The Government of India has passed various regulations to protect the interests and rights of consumers which are as follows:-

1. Consumer Protection Act, 2019 – Establishes consumer rights, dispute redressal commissions, and penalties for unfair trade practices.
2. Essential Commodities Act, 1955 – Regulates the production, supply, and distribution of essential goods to prevent hoarding and black marketing.
3. Prevention of Food Adulteration Act, 1954 – Ensures food safety and quality by prohibiting adulteration.
4. The Bureau of Indian Standards Act, 2016 – Establishes quality certification for goods and services.
5. Legal Metrology Act, 2009 – Regulates weights, measures, and packaging to prevent consumer fraud.
6. Drugs and Cosmetics Act, 1940 – Regulates the manufacture, sale, and distribution of drugs and cosmetics to ensure safety and efficacy.
7. Competition Act, 2002 – Prevents anti-competitive practices, monopolies, and protects consumer interests.
8. Food Safety and Standards Act, 2006 – Regulates food safety, standards, and hygiene.
9. The Sale of Goods Act, 1930 – Governs contracts for the sale of goods, ensuring fairness in transactions.
10. The Contract Act, 1872 – Regulates agreements between parties to ensure legal enforcement.

Question 2: What are the responsibilities of a consumer?

Answer 2: A consumer must also be responsible while purchasing, using, consuming goods and services. This is one of the ways in which consumer protection can be strengthened. The responsibilities of a consumer are as follows:-

1. Awareness – Being informed about the quality, price, and standards of goods and services before purchasing.
2. Checking Quality and Standards – Ensuring products have quality certifications like ISI, AGMARK, FSSAI, etc.
3. Reading Labels and Instructions – Carefully reading product labels, expiry dates, and usage instructions.
4. Demanding Bills and Receipts – Always asking for a bill or receipt as proof of purchase for future reference.
5. Reporting Complaints – Lodging complaints against unfair trade practices, defective products, or poor services.
6. Avoiding Wasteful Consumption – Using resources efficiently and avoiding overconsumption.
7. Being Ethical – Not engaging in dishonest practices like buying counterfeit goods or causing harm to sellers.
8. Promoting Consumer Rights – Spreading awareness and educating others about consumer rights and responsibilities.

Question 3: Who can file a complaint in a consumer court?

Answer 3: A complaint can be made by:
(i) Any consumer.
(ii) Any registered consumer’s association.
(iii) The Central Government or any State Government.
(iv) One or more consumers, on behalf of numerous consumers having the same interest.
(v) A legal heir or representative of a deceased consumer.

Question 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.

Answer 4: The consumer right, which is reinforced by this proposal, is the “right to be informed”. In this right, the consumer has the right to have complete information about the product that the consumer wants to purchase, it can include the details like date of manufacture, quantity, expiry, date of manufacture, and directions of use. Due to this legal obligation, the manufacturers are required to have all such information published on the package of the product.

Question 5: Who is a consumer as per CPA?

Answer 5: As per the Consumer Protection Act, 2019 (CPA), a consumer is:

1. A person who buys goods or avails services for a consideration (payment), whether fully paid, partly paid, or under a deferred payment system.
2. Includes online and offline transactions, through electronic means, teleshopping, direct selling, or multilevel marketing.
3. Excludes a person who purchases goods or services for resale or commercial purposes, except when used for self-employment.

Long Answer Type:

Question 1: Explain the importance of consumer protection from the point of view of a business.

Answer 1: A business cannot survive without protecting consumer interests and ensuring their satisfaction. This is important for the following reasons:

Long-Term Interest of Business – Businesses should focus on long-term profit maximization through customer satisfaction. Satisfied customers lead to repeat sales and positive word-of-mouth, helping to expand the customer base.

Business Uses Society’s Resources – Since businesses use society’s resources, they have a responsibility to provide quality products and services that benefit the public.

Social Responsibility – Businesses have a social responsibility towards various stakeholders, including consumers. Since businesses earn revenue by selling goods and services, they must ensure consumer interests are protected.

Moral Justification – It is the ethical duty of businesses to protect consumers from exploitation. They should avoid unfair trade practices such as selling defective or unsafe products, adulteration, misleading advertisements, hoarding, and black marketing.

Government Intervention – If businesses engage in unfair practices, they may face legal actions and government regulations. To avoid such consequences, businesses should proactively adopt fair practices that safeguard consumer interests.

Question 2: Explain the rights and responsibilities of consumer?

Answer 2: Rights and Responsibilities of a Consumer are:

Consumer Rights (As per the Consumer Protection Act, 2019)

1. Right to Safety – Consumers have the right to be protected from hazardous goods and services that may pose risks to life and property.
2. Right to be Informed – Consumers must be given complete and accurate information about the quality, price, purity, and standards of goods and services.
3. Right to Choose – Consumers should have access to a variety of products and services at fair prices without coercion.
4. Right to be Heard – Consumers have the right to voice their complaints and concerns and seek redressal.
5. Right to Seek Redressal – Consumers can seek compensation or replacement for defective goods, poor services, or unfair trade practices.
6. Right to Consumer Education – Consumers should be educated about their rights, responsibilities, and protection laws.

Consumer Responsibilities

1. Being Aware – Consumers must be informed about products, their quality, and pricing before purchasing.
2. Checking Quality and Certifications – Ensuring goods have quality marks like ISI, AGMARK, or FSSAI before buying.
3. Reading Labels and Instructions – Checking expiry dates, terms of service, and product details.
4. Demanding Bills and Receipts – Always asking for a bill as proof of purchase to claim warranty or file complaints.
5. Reporting Complaints – Raising concerns against fraud, defective products, or unfair practices.
6. Avoiding Wastage – Using products and resources efficiently to prevent wastage.
7. Being Ethical – Avoiding counterfeit products and dishonest practices.
8. Spreading Awareness – Educating others about consumer rights and protection measures.

Question 3: What are various ways in which the objective of consumer protection can be achieved?

Answer 3: Other than consumer awareness there are multiple by which consumers can be protected.

Consumer awareness:- Consumer needs to be aware of his right and responsibilities and he should take action against the wrongdoing of sellers, government and many other organisations are working to make more and more consumers aware of their rights.

self-regulation by business:- it is in the interest of the business to serve the customers better to retain them for the long term and increase profitability. Many companies have set up their own redressal mechanism to help consumers, and they follow their standard procedures to do business ethically.

Business Association:- The Association and business federations like FICCI and CII have set up a code of conduct for laid down guidelines for their members for dealing with customers.

Consumer organisations:- consumer organisations and various NGOs are working for consumer protection. They provide information about consumer rights, organise seminars, and help the consumer to approach redressal mechanisms in legal ways, on behalf of the general public they also file cases in consumer courts.

Government:- the Government protects the interest of the customer by taking various measures, For example, the GOI has set up a toll-free national consumer Helpline Number 1800114000 for this purpose. Under the consumer protection act, the government has also set up the redressal mechanism at the district state, and national levels to protect the consumers.

Question 4: Explain the redressal mechanism available to consumers under the Consumer Protection Act, 2019.

Answer 4: The Consumer Protection Act, 2019 provides a three-tier consumer grievance redressal system to resolve disputes efficiently. Consumers can file complaints based on the value of goods/services involved.

1. District Consumer Disputes Redressal Commission (District Commission)

• Jurisdiction: Cases where the value of goods/services does not exceed ₹50 lakh.
• Who can file? Consumers, legal heirs, or voluntary consumer organizations.
• Relief provided: Refund, replacement, compensation, or penalty on the seller/service provider.

2. State Consumer Disputes Redressal Commission (State Commission)

• Jurisdiction: Cases where the value of goods/services exceeds ₹50 lakh but does not exceed ₹2 crore.
• Appellate Authority: Hears appeals against District Commission decisions.
• Relief provided: Compensation, refund, or penalty, depending on the case.

3. National Consumer Disputes Redressal Commission (NCDRC)

• Jurisdiction: Cases where the value of goods/services exceeds ₹2 crore.
• Appellate Authority: Hears appeals against State Commission decisions.
• Final Appeal: Appeals from NCDRC decisions go to the Supreme Court.

Other Features of Redressal Mechanism

• E-filing of complaints: Consumers can file complaints online for convenience.
• Mediation: Encourages out-of-court settlements to resolve disputes quickly.
• Product Liability: Consumers can claim compensation for defective goods or services.
• Penalties for misleading ads and unfair trade practices.

Question 5: Explain the role of consumer organisations and NGOs in protecting and promoting consumer’s interest.

Answer 5: Consumer organisations and NGOs play an important role in protecting and promoting consumers’ interests. Some of the important NGOs and consumer organisations include Consumer Coordination Council, Common Cause, Consumer Protection Council, Consumers’ Association, Mumbai Grahak Panchayat, etc.

The following are the functions performed by these organisations in regard of safeguarding the interest of the consumers:

• (i) Consumer Education: The NGOs and consumer organisations educate the consumer about their rights through various training programmes and workshops.
• (ii) Publishing Journals: They publish journals and periodicals to spread knowledge and awareness about various consumer problems, legal remedies available and other such matters.
• (iii) Legal Assistance: They also provide legal assistance to the consumers and help them in seeking suitable redressal.
• (iv) Encouraging Protest against Exploitation: They encourage the consumers to protest against any form of exploitation and unfair trade practices.
• (v) Assistance in Filing Complaints: They encourage the consumers to file complaints in appropriate forums and also file complaints on their behalf.
• (vi) Taking Initiatives: They not only encourage the consumers to register complaints but also take initiatives themselves in filing cases in the general interest of the public.
• (vii) Testing Quality of the Products: They carry out the quality tests for various products in laboratories and publish the results.

Question 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.

Answer 6: a. The right exercised by Mrs Mathur is the “Right to seek Redressal”.

b. Right to seek Redressal is the right that helped Mrs. Mathur to avail the compensation. Here consumer has a right to get relief in case the product or service falls short of his expectations. The Consumer Protection Act provides a number of reliefs to the consumers including replacement of the product, removal of a defect in the product, compensation paid for any loss or injury suffered by the consumer, etc.

c. Mrs. Mathur has been fulfilled with the consumer responsibility of Filing a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services.

d. The other two responsibilities that can be assumed by customers include:

• Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.
• Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewellery etc.