CBSE Class 12 Business Studies Consumer Protection Assignment

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 redresse(d) 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 exploite(d) 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, adultration, false & misleading advertising, hoardings black marketing etc.

3. Business uses society s 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 engage in any form of unfair trade practices then government take action against it, which adversely affect its goodwill.

CONSUMER PROTECTION ACT, 1986 (CPA, 1986)

Consumer protection Act 1986 was introduced to make consumers aware about their rights and to give them legal protection. According to it consumer is defined as follows.

1. Any person who buys any goods for a consideration It includes any user of such goods with the approval of the buyer. But it does not include a person who obtains goods for resale or any commercial purpose.

2. Any person who avails any services for a consideration. It includes any beneficiary of such services but it does not include a person who avails such service for any commercial purpose.

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 make 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 a 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 cousumers by providing various rights to them.
Under what circumstances complaints can be filed ?
Frandulent 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
National commission
Within what period the complaint must be filed ?
With in 3 months of purchase & if some testing of goods is required then with in 5 months.
Who can file a complaint.
Any consumer
Any registered consumer association.
Central / State Govts.
Legal heir / representation of a a deceased customer.

Relief Available to Consumers (Remedies)
1. To remove the defect in goods or services.
2. To replace the defective product with a new one free from defect.
3. To refund the price paid for the product/Service.
4. To pay compensation for the loss or injury suffered by the consumer due to product/Service.
5. To discontinue the unfair trade practice & not to repeat them.
6. To withdraw the hazardous goods from sale.

Role and Functions of Consumer Organisation & NGOs.
1. Educating the general public about consumer right by organising training programmes, seminars and workshops.
2. Publishing periodical & other publications.
3. Providing Legal assistance to consumers.
4. Producing films or cassettes on food adultration, misuse of drugs etc.
5. Filing complaints in appropriate consumer courts on behalf of consumers.

Ways And Means of Consumer Protection.

1. Government : Protcts the interest of consumers by enacting various legislations like CPA 1986, Sale of goods Act 1930, Bureau of Indian Standard 1986 etc. Consumer Protection Act provides for a three-tier machinery at the district, state & national level for speedy & inexpensive redressal of consumer grievances.

2. Consumer Organisation : Force business firms to avoid malpractices & exploitation of consumers.
i) e.g. Consumer coordination council, Delhi.
ii) Common cause, Delhi
iii) Consumers Association, Kolkata.
iv) Mumbai Grahak Panchyat, Mumbai etc.

3. Business Association : The associations of trade, commerce & business like federation of Indian Chambers of commerce (FICCI) & Confederation of Indian Industries (CII) have laid down their code of conduct for their members in their dealings with the customers.

 Important Questions for NCERT Class 12 Business Studies Consumer Protection
 

Question. A consumer has a right to fill a complaint and to be heard in case of dissatisfaction with goods or services according to which right of consumer protection act?
(a) Right to be heard
(b) Right to seek redressal
(c) Right to choose
(d) Right to consumer education

Answer : A

Question.  If a customer is not satified with the judgement of state commission, he can file appeal in
(a) District Forum
(b) Supreme Court
(c) High Court
(d) National Commission

Answer : D

Question. As per Consumer Protection Act, the retailer or wholeseller is
(a) A consumer
(b) Not a consumer
(c) Both (a) and (b)
(d) None of the above

Answer : B

Question. To avail the benefits of Consumer Protection Act, the consumer
(a) Must insist on cash memo
(b) No necessity for cash memo
(c) Need a certificate of consumer
(d) None of the above

Answer : A

Question. If goods require no testing, then complaint must be filed within
(a) 1 month
(b) 2 months
(c) 3 months
(d) 4 months

Answer : C

Question. To provide protection to the consumers against the improper behaviour of the producers and sellers is called ________ .
(a) Consumers Protection Act
(b) Consumer Protection
(c) Consumer Welfare
(d) Consumer Education

Answer : B

Question. Under the amended Consumer Protection Act, 1993 the time limit for filing a complaint has been limited to a period of ________ year.
(a) Two
(b) Three
(c) Four
(d) Five

Answer : A

Question. When a single consumer fails to get his rights protected, he seeks the help of ________ .
(a) Trade Union
(b) Consumer Association
(c) Labour Union
(d) None of the above

Answer : B

Question. Consumer organisations are making efforts to ________ their number.
(a) Increase
(b) Decrease
(c) Stabilise
(d) None of the above

Answer : A

Question. ________ broadcasts the programme ‘Apne Adhikar’ with reference to consumer protection?
(a) All India Radio
(b) Doordarshan
(c) Advertising Agency
(d) All of these

Answer : A

Question.---------------- is set up by the central govt.
(a) National commission 
(b) Supreme court
(c) District forum
(d) None of these
Answer : A

Question. Consumer protection affords safe gaurd to consumer in which of these areas?
(a) Safe gaurd and well constructed items 
(b) Faulty defective products
(c) Clean advertising campaign
(d) Healthful food and drinks
Answer : B

 True or False

1) An intelligent and wise choice can be made when consumer is aware .True
2) FPO mark is a quality assurance for agricultural product .False 
3) The National Commission consists of atleast eight members . False 
4) Government of India can file complaint against producer if it finds it guilty . False 
5) If consumer is not satisfied with the judgement of district forum , can appeal in supreme court.  False 
6) If national commission , a complaint can be made when the value of the goods and service exceeds Rs 1 crore . True
7) Hall Mark is the certification maintained for standardisation of jewellery .True
8) The Consumer Protection Act was passed in India in 1996 . False 
9) The Consumer protection Act provides for six consumer rights. True
10) A produer can not complaint file in the court / forum under Consumer Protection Act. True
11) COPRA/ CPA applies only to goods . False 
12) The Consumer redressal process is very simple and quick. False 
13) While purchasing an edible oil, a consumer has the responsibility to look for AGMARK label besides cash memo. True

Question. Prakhar purchased an ISI mark electric iron from ‘Bharat Electricals’. While using he found that it was not working properly. He approached the seller and complained for the same. The seller satisfies Prakhar by saying that he will ask the manufacturer to replace this iron.The manufacturer refused to replace and Bharat Electricals 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. 
Answer:
I) Bharat Electricals cannot file a complaint. This is because Bharat Electricals is not a consumer as per Consumer Protection Act, 1986 because they bought the goods for resale/commercial purpose.
Ii)A ‘consumer’ is generally understood as a person who uses or consumes goods or
avails of any service. Under the Consumer Protection Act, a consumer is defined as:
a)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 user 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.
b)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 availed of with the approval of the person concerned, but does not include a person who avails of such services for any commercial purpose.

Question. As per the _____________ the consumer has right to acquire knowledge and to be a well informed consumer through life. 
1)Right to be informed
2)Right to consumer education
3)Right to choose
4)Right to be heard
Answer:
2.Right to consumer education
Explanation: According to right to consumer education:
The consumer has a right to acquire knowledge and to be a well informed consumer throughout life.
He should be aware about his rights and the reliefs available to him in case of a product or service falling short of his expectations. Many consumer organisations and some enlightened businesses are taking an active part in educating consumers in this respect.

Question. ___________ are set up in each district by the State Government concerne(d)  
1)District Forums
2)National Commission
3)State Commission
4)None of these
Answer:
1.District Forums
Explanation:
District Forums are set up in each district by the State Government concerne(d)
The District Forum consists of a President and two other members, one of whom should be a woman.
They all are appointed by the State Government concerne(d)
A complaint can to be made to the appropriate District Forum when the value of the goods or services in question, along with the compensation claimed, does not exceed Rs. 20 lakhs.

Question. Jolly bought an Anti-dandruff Shampoo of a reputed company which claimed to contain zinc pyrithione (ZPTO) to control dandruff. When the product did not show the promised results even after regular use for two months she discussed the problem with his aunt Dolly who is a dermatologist. Dolly told him ZPTO is an anti-fungal agent, meaning that only dandruff caused by a fungal infection could be ‘cure(d) ’ But to Jolly’s surprise, this condition was not mentioned in the shampoo case.
In the context of the above case:
a)Identify and explain the consumer right being violated in the above case.
b)List any two other consumer rights.
Answer: a)Right to information is being violated in the above case.
The Consumer Protection Act, 1986 (CPA) protects the interests of the consumers in the widest range possible. 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 et(c) Moreover, as per law, it is mandatory for marketers to provide complete information about the product/service to buyers. Though CPA came into force in 1986 it had the provision empowering consumers to seek information regarding goods or services under proper legislation.
b)The two other consumer rights are:
Right to be Heard
Right to Seek Redressal.

Question. Which act provides safeguards and reliefs to the buyers of the goods in case the goods purchased do not match with express or implied conditions or warranties? 
1)The Indian Contract Act,1872
2)Consumer protection Act, 1986
3)Sale of goods Act, 1930
4)None of these
Answer:
3.Sale of goods Act, 1930
Explanation:
The Sale of Goods Act came into existence on 1 July 1930.
It is a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for price.
It is applicable all over India, except Jammu and Kashmir.
The goods are sold from owner to buyer for a certain price and at a given period of time.
This act provides safeguards and reliefs to the buyers of the goods in case the goods purchased do not match with express or implied conditions or warranties.

Question. What is meant by right to be heard to a consumer? 
Answer: Nowadays, with the emphasis on Marketing Concept, almost all the business houses have their consumer grievance cell where the complaints of the consumers can be heard and the consumers can seek justice for their exploitation by the goods or service providers. This is called Right to be heard.

Question. Which claims can be appealable before the Supreme Court under Consumer Protection Act? 
Answer: It takes appeals against Orders passed by the State National commission which has value of more than 1 crore rupees.

Question. What is the constitution of District Consumer Dispute redressal Forum?
Answer: One president and two other members, one of whom should be woman.

Question. Besides a consumer, name any two parties who can file a complaint before the appropriate consumer forum.
Answer: (i) Any registered consumer association.
(ii) The Central or State government.

Question. Give the definition of ‘Consumer’ as per the Consumer Protection Act, 1986.
Answer: (i.) 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 user 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.
(ii.) Any person who hires or avails off any service 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 user of such goods, when such use is made with the approval of the buyer, but does not include a person who avails off such services for any commercial
purpose.

Question. Give any one responsibility of the consumer in addition to obtaining an invoice while purchasing an air conditioner.
Answer: To look for the ISI mark.

Question. Mukul purchased a house for 50 lakhs from a housing company and found it being defective. Despite many complaints, the defect was not rectified. In which consumer forum should he file the case? Where should he go for appeal and on what condition?
Answer: State forum He can appeal in the National forum if not satisfied by the decision of the State forum that too within 30 days of passing of the order.

Question. At a railway platform, a vendor was selling the packet of chips for 20 each instead of the printed M.R.P. of 15 per packet on it. Name the right that can be exercised by the consumers in this case.
Answer: Right to be heard

Question. Name the quality certifications that are associated with the following products.
(i.) Food products
(ii.) Electrical goods
(iii.) Agricultural products
Answer: (i.) FPO, FSSAI
(ii.) ISI
(iii.) Agmark

Question. On ordering the products online, what responsibilities any consumer should assume to avoid any kind of exploitation?
Answer: (i.) Buying only the standardized goods.
(ii.) Reading labels carefully before buying.
(iii.) Learning about the various risks associated with the product.
(iv.) Asking for the cash memo.
(v.) Conducting an intelligent survey to get information about various
brands and facilitating comparisons.

Question. Shilpa purchased a pure honey from the market. After using it for a while, she doubted its purity since it got crystallized. She sent it for laboratory testing which confirmed that it contained sugar molecules.
State any six reliefs available to Shilpa, if she files a complaint and the consumer court is satisfied about the genuineness of the complaint.
Answer: (i.) To remove the defects.
(ii.) To replace the defective good with a non-defective one.
(iii.) To refund the price paid.
(iv.) To pay reasonable compensation for the loss.
(v.) To discontinue unfair trade practice.
(vi.) To pay adequate costs by seller to consumer.

Question. Meetu purchased a carom board from Prakhar Toys and Gifts shop. Within few days, she observed various cracks on the board and came to the conclusion that the wood used is not of appropriate quality. She went to the shopkeeper with the complaint who had recently started to keep the stock of such boards. The shopkeeper satisfied meetu by assuring her to get it replaced by the manufacturer. He also approached the manufacturer who refused to replace the products and ultimately Prakhar toys decided to file a complaint in the consumer court. Can Prakhar Toys and Gifts do this? Why or why not?
Answer: No, Prakhar Toys and Gifts cannot file a complaint in consumer forums as they are not ‘consumers’ as per the definitions of the consumer Protection act, 1986 since tey bought the goods for commercial purpose or for resale.

Question. Which consumer right is highlighted in the advertising for ‘Apne Adhikar’?
Answer: Right to consumer education

Question. There are few organizations that specifically work for looking after the different plights of a consumer and supports them in numerous ways for protection of their rights. Explain atleast six functionings of such organizations.
Answer:
(i.) Educating the consumers.
(ii.) Publishing periodicals for knowledge.
(iii.) Carrying out comparative laboratory testings.
(iv.) Encouraging consumers to strongly protest.
(v.) Providing legal assistance to consumers.
(vi.) Filing complaints in consumer courts.

Mcqs Questions for NCERT Class 12 Business Studies Consumer Protection

Question. The members of the District Forum are appointed by: 
a. Central Govt.
b. State Govt.
c. Local authority
d. None of the above

Answer : B

Question. Appeal against the National Forum can be done in: 
a. District Forum
b. High Court
c. Supreme Court
d. State Forum

Answer : C

Question. Which of the following is not the example of unfair trade practice?
(a) Wrong information about goods/services.
(b) Compelling consumers to buy gas stove while getting gas connection.
(c) Not observing prescribed standards.
(d) Indulging in hoarding

Answer : B

Question. Supplying wrong bills by the Electricity and Telephone Departments exemplifies which of the following?
(a) Deficiency of services
(b) Defective things
(c) Charging more price
(d) Unfair trade practice

Answer : A

Question. Informing consumer about the contents of the product, its usage, etc. is part of
(a) Right to Safety
(b) Right to Information
(c) Right to Consumer Education
(d) Right to be Heard

Answer : B

Question. Which of the following is not a part of the three-tier grievance redressal machinery?
(a) International Commission
(b) National Commission
(c) State Commission
(d) District Forum

Answer : A

Question.The consumer has a right to get relief in case of defective goods or deficient service as per the ....................
(a) Right to be informed
(b) Right to seek redressal
(c) Right to choose
(d) Right to be heard
Answer : B

Question.Any aggrieved party, not satisfied with the order of the District Forum can appeal before the State Commission within: [R]
a. 60 days of passing of the order
b. 30 days of passing of the order
c. 45 days of passing of the order
d. None of the above
Answer : B

Question. If the value of goos or services is more than 20 lac but less than one one crore, then consumer can file case in
(a) District Forum
(b) State Commission
(c) National Commission
(d) All of the above
Answer : B

Question.Consumer should use ISI marked electrical appliance is an example of :
(a) Right to safety
(b) Right to be informed
(c) Right to choose
(d) Right to be heard
Answer : A

Question.Consumer can ask anything regarding date of manufacture, price, quantity, etc. is an example of :
(a) right to be informed
(b) right to choose
(c) right to be heard
(d) right to safety
Answer : A

Question. If a customer is not satified with the judgement of state commission, he can file appeal in
(a) District Forum
(b) Supreme Court
(c) High Court
(d) National Commission

Answer : D

Question. If the value of product is10 lacs the consumer can file case in
(a) District Forum
(b) State Commission
(c) National Commission
(d) All of the above

Answer : A

Question. As per Consumer Protection Act, the retailer or wholeseller is
(a) A consumer
(b) Not a consumer
(c) Both (a) and (b)
(d) None of the above

Answer : B

Question. The Provisions of Consumer Protection act came into force from
(a) 1986
(b) 1987
(c) 1988
(d) 1991

Answer : A

Question. Informing consumer about the contents of the product, its usage, etc. is part of
(a) Right to Safety
(b) Right to Information
(c) Right to Consumer Education
(d) Right to be Heard

Answer : B

Question. Informing consumer about their rights is part of
(a) Right to Safety
(b) Right to Information
(c) Right to Consumer Education
(d) Right to be Heard

Answer : C

Question. Right to safety
(a) Protects consumer from physical damage or injury
(b) Informs the consumer
(c) Both (a) and (b)
(d) None of the above

Answer : A

Question. If the value of goods or services is more than 20 lac but less than one one crore, then consumer can file case in
(a) District Forum
(b) State Commission
(c) National Commission
(d) All of the above

Answer : B

Fill in the Blanks :

1. The CPA provides for 6 number of consumer rights.

2. The consumer has a right to have complete Information. about the product.

3. Standardized goods provide quality assurance.

4. NGO’s provide Legal assistance to consumer’s by way of aid and legal advice.

5. Right to choose implies that the marketer’s should offer a wide variety of products in terms of quality and brand and prices etc.

6. Right to be informed is the reason that the legal framework in India requires the manufactures to provide such information on the  package  and label of the product.

7. Right to seek redressal a right to get relief in case of the product  or service falls short of his expectations.

8. The consumer must have the right to choose between different products at Competitive prices.

9. .Business must avoid unscrupulous, exploitative and unfair trade practices.

10.Non governmental organizations aim at promoting the welfare of people.

11. Business firms should aim at long-term profit maximization through Customer Satisfaction

12. A business has social Responsibilities towards various interest groups.

13.Confederation of Indian Industries have laid down their Code of Conduct for their members, which has guidelines in their dealings with the customers.

14.In case the aggrieved party is not satisfied with the order of the State Commission, he/she can appeal before the National Commission within 30 days of the passing of the order. 

15.The Consumer Protection Act, 1986 provides for a Three tier machineryat the district, state and national levels for redressal of consumer grievances.

Important Questions for NCERT Class 12 Business Studies Consumer Protection

Very Short Answer Questions :

Question. Mohit filed a case against ‘Domestic Cooling ltd.’ in the ‘District Forum’, but was not satisfied with the orders of the District Forum. Where can he appeal further against the decisions of District Forum?
Answer : Mohit can further appeal against the decision of District Forum in the ‘State Commission’ within 30 days.

Question. 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.
Answer : Right to be heard has been exercised by Manuj.

Question. 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 so 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 Manvendira the reason of going to that 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. 
Answer : Right to choose has been exercised by Manvendra.

Question. Which consumer right gives the business firm freedom to set up their own consumer service and grievance cell?
Answer : Right to be heard.

Question. Amrit filed a case against ‘Volvo Ltd.’ in the ‘State Commission’. But he was not satisfied with the orders of the ‘State Commission’. Name the authority to which he can appeal against the decisions of ‘State Commission’.
Answer : Amrit can further appeal in ‘National Commission’.

Question. Ahmed wants to buy an iron. As an aware customer how can he be sure about the quality of iron?
Answer : Through ISI mark on the iron.

Question. Suman bought a box of cheese of a reputed brand from 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.
Answer : Right to seek redressal has been exercised by Suman.

Question. Name any two consumer rights.
Answer : (i) Right to Safety
(ii) Right to Choice.

Question. Ram wants to buy ghee. How can he check the quality of product?
Answer : Through ‘AGMARK’ symbol.

Question. Can a consumer file complaint in consumer court without having cash memo?
Answer : No, without cash memo he cannot file a complaint. Cash memo is the proof of the transaction.

Short Answer Questions :

Question. Indian Youth Organisation (IYO) organised a visit of its members to an old age home to inculcate the habit of social work among them. The visit revealed that the living conditions of the inmates of the old age home were not hygienic. So, the IYO members decided to clean the premises. During their cleanliness drive, they realised that the old age home also required pest control. But some of the inmates of old age home were reluctant for it because they believed that the pest control may create health problems for them. IYO, therefore decided to provide ethical, safe and odourless pest control. They showed to the inmates of old age home a pamphlet of the proposed pest control product which promised easy, inexpensive and long lasting pest control. The inmates happily agreed and the pest control was carried out. It worked for a fortnight but to their dismay the effect started wearing off. IYO contacted the pest control company which kept on postponing their visit. After waiting for a month, IYO
filed a cased in the consumer court. The consumer court was satisfied about genuineness of the complaint and issued necessary directions to the pest control company.
1. State the six directions that might have been issued by the court.
2. Also identify any two values that are being communicated by IYO to the society. 
Answer : 1. The six directions that might have been issued by the court are as follows: Reliefs available to a consumer
♦ To remove the deficiency in service.
♦ To refund the charges paid for the service.
♦ To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
♦ To discontinue the unfair/restrictive trade practice and not to repeat it in the future.
♦ To pay any amount (not less than5% of the value of the d effective goods or deficient services provided), to be credited to the Consumer Welfare Fund or any other organisation /person, to be utilised in the prescribed manner.
2. To issue corrective advertisement to neutralise the effect of a misleading advertisements.
3. The two values that are being communicated by IYO to the society are:
♦ Social service
♦ Promoting health and hygiene

Question. Ronit Raj, a marketing manager is a patient of diabetes for which he takes medicines regularly. One day, on his tour to Patna, he met with an accident and was hospitalised. Due to doctor’s negligence a delicate nerve of his right leg was cut rendering hum crippled throughout his life. Identify the consumer right that has been violated by the doctors under the Consumer Protection Act, 1986 in the above situation.
Answer : Right to safety is the consumer right that has been violated by the doctors under the Consumer Protection Act, 1986 in the above situation.

Question. Sirajuddin purchased a car for Rs. 15 lacs from an automobile company and found that its airbags were defective. After many complaints with the company that went unheard, he filed a case in the District Forum. He was not satisfied with the orders of the District Forum. He then appealed before the State Commission and on being dissatisfied with the orders of State Commission, he appealed before the National Commission. Sirajuddin was not satisfied with the orders of National Commission. Suggest him the highest authority where he could appeal against the decision of the National Commission.
Answer : Sirajuddin cannot appeal to any other higher authority. This is because only those matters which have been directly filed in the National Commission and where the value of goods and services in question along with the compensation claimed exceed ? 1 crore are appealable before Supreme Court.

Question. “Grahak Shakti”, an N.G.O. organized a workshop to discuss various issues relating to consumers. During the discussion, one of the members drew attention towards exploitation of consumers due to defective and unsafe products, adulteration, black marketing, hoarding etc. To this another member argued that consumers themselves are responsible as they do not raise collective voice against the exploitation. The Chairperson of the organization was of the opinion that it was also the duty of the businessman to take care of the interests of various stakeholders. Business organizations earn money by selling goods and services to consumers. So the interests of the stakeholders have to be well taken care of. State three points that highlight the need for consumer protection as discussed in “Grahak Shakti’s workshop.
Answer : The three points that highlight the need for consumer protection as discussed in “Grahak Shakti’s workshop are described below:
♦ Widespread exploitation of consumers
♦ Unorganized consumers
♦ Social responsibility.

Question. Vasvi purchased a bottle of pickle from the local grocery shop. The information provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the District Forum under the Consumer Protection Act and got the relief.
1. Identify the important aspect neglected by the marketer in the above case.
2. Explain briefly the functions of the aspect identified in (1) above OR Ashima purchased a bottle of tomato-sauce from the local grocery shop. The information provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the District Forum under the Consumer Protection Act and got the relief.
1. Identify the important aspect neglected by the marketer in the above case.
2. Explain briefly the functions of the aspect identified in (1) above.
Answer : 1. The marketer had overlooked the Labelling as it was not done appropriately for the product
2. The functions of labelling are detailed below:
♦ Describes the product and specifies its contents: Labelling provides information about the core function of the product i.e. how and why the product is likely to be beneficial to the prospective buyer. It educates them about the usage and precautions related to the product. It also gives detailed information about the ingredients of the product.
♦ Helps in identification of the product or brand: The label contains the logo, brand name, tagline, name and address of the manufacturer etc. of the product which helps in easy identification of the product.