CBSE Class 10 Social Science Economics Consumer Rights Assignment

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Assignment for Class 10 Economics Understanding Economic Development Chapter 5 Consumer Rights

Class 10 Economics students should refer to the following printable assignment in Pdf for Understanding Economic Development Chapter 5 Consumer Rights in Class 10. This test paper with questions and answers for Class 10 Economics will be very useful for exams and help you to score good marks

Understanding Economic Development Chapter 5 Consumer Rights Class 10 Economics Assignment

INTRODUCTION
The end user of agood or service is called a consumer. A consumer is said to be king in an economy as no company can exist without consumers. people participate in the market both as producers and consumers. producers of goods and services could be from any of the sectors succh as agriculture, industry and services. consumers participate in the market place by purchasing final goods and services that they need. However, consumers are exploited in the market place because they do not insist on their rights . If any consumer gets poor quality product or services and mostly they either avoid or are afraid to complaint . In this chapter, we shall read how consumers are exploited and what steps the Government is taking to protect their interest.

THE CONSUMER IN THE MARKET PLACE
Consumer’s consciousness towards his rights and the social and legal obligation of the business community and government towards consumer is known as consumer awareness. If the consumer is not provided the amount of goods and services for which he/she has paid, it is called consumer exploitation.

(a) Forms of Consumer exploitation :
(i) Under measurement: Sellers generally provide under measured goods and charge for the actual quantity.
(ii) Sub-standard goods: Sell inferior quality goods in order to make more profits.
(iii) High prices: Sellers dealing in basic necessities generally charge high prices depending upon the demand & supply.
(iv) Adulteration & impurity: Means mixing or substituting undesirable materials in food materials that causes heavy loses to the consumers, both monetary & health.
(v) False Claims : Sellers make false claim about the durability & quality of their products mainly through advertisements.
(vi) Hoarding & blackmarketing: To make more profit sellers indulge in creating artificial scarcity through hoarding & black marketing.
(vii) Unsatisfactory after sale service : Producers & suppliers do not provide the satisfactory after sale services despite the necessary payments.
(viii) Rough Behavior & undue conditions : Consumers are often harassed and undue conditions are put before them to get their requirement fulfilled

(b) Factors causing exploitation of consumers :
(i) Limited information: For a correct decision and choice about a product a consumer needs full information about the price, quality, durability, and composition etc. of the goods. In the absence of full and correct information he/she will generally be exploited.
(ii) Limited supply: When the supply goes less in comparison to demand, the prices will go high and may also encourage the tendency of hoarding, leading to consumer exploitation.
(iii) Limited competition: When there is limited competition among the producers, the consumer is left with no choice and the producers have an upper hand in deciding the price and supply of goods.
(iv) Low literacy: In a country like India, an illiterate consumer can easily be exploited and it also effects the consumer consciousness.

CONSUMER MOVEMENTS
In India, the consumer movement as a ‘social force’ originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. Rampant food shortages, hoarding, black marketing, adulteration of food and edible oil gave birth to the consumer movement in an orgainsed form in the 1960s. Till the 1970s consumer organisations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractises in ration shops and overcrowding in the road passenger transport. More recently, India witnessed an upsurge in the number of consumer groups. Because of all these efforts, the movement succeeded in bringing pressure on business conduct which may be unfair and against the interests of consumers at large. A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA.

(a) Need for Rules and Regulations to save the Consumers
Need for consumer protection act
in an era where consumer is the king:
(i) Globalisation inpact
Due to the expansion of the business activities and globalisation there are variety of goods available in the market and producers are spending a lot of money to influence the consumers which makes it difficult for the consumers to make a correct choice. So there is a need for consumer awareness.
(ii) Sufficient information
Producers do not provide sufficient information to the consumers and sometime even harass them.
(iii) Consumer awareness
Consumer awareness is also must because at times greedy traders begin to play with the health of the people by indulging in adulteration of edible oils, milk, butter, ghee etc.
(iv) health and security aspects.
After 1991, the Government of India has withdrawn itself from most of the productivity and allowed the private sector to take over. So it was felt that there is a greater need to enforce discipline and regulations in the market and to make the consumers aware not only of the commercial aspects of sale and purchase of goods but also the health and security aspects.
(v) Rules and regulations
There is a need for rules and regulations because most of goods and services are being produced by private sector with profit as a main motive.

CONSUMER RIGHTS

(a) Safety is Everyone’s Right :
While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property. Producers need to strictly follow the required safety rules and regulations.
Example : Pressure cookers have a safety valve which, if it is defective, can cause a serious accident. The manufactures of the safety valve have to ensure high quality. Public or government action is also required to see that this quality is maintained.

(b) Information about Goods and Services :
Consumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation or replacement if the product proves to be defective in any manner. Similarly, one can protest and complain if someone sells a good at more than the printed price on the packet. This is indicated by ‘MRP’ - maximum retail price. In fact consumers can bargain with the seller to sell the product at less than the MRP. In October 2005, the Government of India enacted a law, popularly known as RTI (Right to Information) Act, which ensures its citizens all the information about the functions of government departments.

(c) When Choice is Denied :
Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service. Consumer can choose the products from the given alternatives. In case of a single supplier, consumer must be assured of quality and price of the good.

(d) Right to seek Redressal:
Consumers have the right to seek redressal against unfair trade practises and exploitation. If any damage is done to a consumer, she has the right to get compensation depending on the degree of damage.

(e) Right to Represent
COPRA has enabled the consumers to have the right to represent in the consumer courts. The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state governments.

Where should Consumers go to get Justice?
(i) The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils. They guide consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts. These voluntary organisations also receive financial support from the government for creating awareness among the people.
(ii) Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes. The district level court deals with the cases involving claims upto Rs 20 lakhs, the state level courts between Rs 20 lakhs and Rs 1 crore and the national level court deals with cases involving claims exceeding Rs 1 crore. If a case is dismissed in district level court, the consumer can also appeal in state and then in National level courts.

STEPS TAKEN BY GOVERNMENT FOR PROTECTION OF CONSUMERS

(a) Legislative step :
Various Acts have been formed, the most important Act is :
(i) Consumer Protection Act, 1986 : To solve the consumer grievances in a speedy, simple & inexpensive manner. Under this three types of courts have been established.
(ii) Separate departments for consumer welfare have been established in both central and state government.

(b) Administrative steps :
(i) Public distribution system (PDS) has been established for preventing the exploitation of consumers.
(ii) Government tries to prevent illegal ways of making profit like hoarding and black marketing.

(c) Technical steps :
Government has established various agencies for developing standard for various products and to check and certify the products according to the standards. In India, two agencies are responsible for it.
(i) BIS or Beureau of Indian standards : Sets the standards for industrial products, checks them and certifies them with ISI mark. Through regular surveillance and taking samples both from market and factories ensures the standards of the products.
(ii) AGMARK : Established under the Ministry of Agriculture is responsible for certifying the food and
agricultural products.

LEARNING TO BECOME WELL-INFORMED CONSUMERS
When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring the knowledge and skill to become a well-informed consumer. The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state governments which releases posters and other informations about legal process which people cause.

(a) Duties of the Consumers :
(i) Check the quality and quantity
Consumer must check the quality and quantity, he/she should insist for the warranty card and should always buy products marked as ISI, AGMARK.
(ii) Cash memo
Consumer should ask for cash memo for the items purchased.
(iii) Consumer awareness organisations
Consumer should form consumer awareness organisations.
(iv) Complaint
Consumer must make complaint for their genuine grievances, they should take the help of consumer organisation in seeking redressal of their grievances.
(v) Rights
Consumer must know their rights and must exercise them.

TAKING THE CONSUMER MOVEMENT FORWARD
India has been observing 24 December as the National Consumers’ Day. It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1986. India is one of the countries that have exclusive courts for consumer redressal. The Consumer movement in India has made some progress in terms of numbers of organised groups and their activities. There are today more than 700 consumer groups in the country of which only about 20-25 are well organised and recognised for their work.
The consumer redressal process is becoming cumbersome, expensive and time consuming. Many a times, consumers are required to engage lawyers. These cases require time for filing and attending the court proceeding etc. In most purchases cash memos are not issued hence evidence is not easy to gather. Moreover most purchases in the market are small retail sales. The existing laws also are not very clear on the issue of compensation to consumers creates by defective products. After 20 years of the enactment of COPRA, consumer awareness in India is spreading but slowly. Besides this, the enforcement of laws that protect workers, especially in the unorganised sectors is weak. Similarly, rules and regulations for working of markets are often not followed.
Nevertheless, there is a scope for consumers to realise their role and importance. It is often said that consumer movements can be effective only with the consumers’ active involvement. It requires a voluntary effort and struggle involving the participation of one and all.

 

MCQs

Question. In the market place rules and regulations are needed for the production of:
(a) Sellers
(b) Suppliers
(c) Consumers
(d) Owners
Answer : C

Question. When was the ‘Consumer Protection’ Act amended?
(a) In 1990 and 1992
(b) In 1992 and 1995
(c) In 1989 and 1991
(d) In 1991 and 1993
Answer : D

Question. When was the ‘Right to Information Act’ passed?
(a) In October, 2005
(b) In October, 2006
(c) In September, 2005
(d) In September, 2006
Answer : A

 

Very Short Answer Type Question

Question. What is the significance of 24 December in India?
Answer : It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1980.

Question. What is the significance of RTI in relation to consumers?
Answer : (i) Right to information about the details of the goods and services that consumers purchase is essential in order to protect their interest or save them from exploitation in the marketplace.
(ii) Every product must carry certain details on the packing such as date of manufacture, expiry date, address of the manufacturer, etc.
(iii) If any product proves to be defective in any manner, consumers can complain and ask for compensation or replacement of it.

Question. Mention a few Organizations that provide certification of standardization in India.What do you mean by ISO?
Answer : (i) BIS and ISI (ii) AGMARK (iii) HALLMARK Standardization work at the international level.

Question. How do the logos ISI, Agmark or Hallmark help consumers?
Answer : These logos and certification help consumers get assured of quality while purchasing goods and services. The organizations that monitor and issue the certificates allow the producers to use these logos provided they follow certain quality standards.

 

Short Answer Type Question

Question. Why is the consumer redressal process becoming burdensome?
Answer : The consumer redressal process is becoming burdensome because
(i) Many a time consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings etc.
(ii) In most purchases cash memos are not issued hence evidence is not easy to gather.
(iii) Most purchases in the market are small retail sales. The existing laws are also not very clear on the issue of compensation to consumers injured by defective products.
(iv) The enforcement of laws that protect workers, especially the unorganised sectors is weak. Similarly, rules and regulations for working markets are often not followed.

Question. Write a short note on ISI and AGMARK.
Answer : These are logos and certifications which help consumers get assured of quality while purchasing goods and services. The organisations that monitor and issue these certificates allow producers to use their logos provided they follow certain quality standards. It is not compulsory for all producers to follow standards. However, the products that affect health and safety of consumers or the products of mass consumption such as LPG cylinders, food colours and additives, drinking water, it is mandatory on the part of the producers to get certified by these organisations.

Question. How do ‘Consumer Protection Councils’ help consumers? Explain three ways.
                                                 Or
What is the main function of Consumer Protection Councils?
Answer : ‘Consumer Protection Councils’ help consumers in the following ways:
(i) They guide consumers on how to file cases in the consumer court.
(ii) On many occasions, they also represent individual consumer in the consumer courts.
(iii) They also create awareness among the people.

Question. Why COPRA is enacted in India?
Answer : Consumer Protection Act 1986 (COPRA) is enacted in India with following motives:
(i) To pressurize business firms.
(ii) To correct unfair business conduct.
(iii) To protect the interests of the consumers.

Question. What do you understand by consumer protection?
Answer : By consumer protection we mean the protection of the consumers against the unfair and malpractices adopted by the businessmen. These may be grouped mainly into two categories.
(i) Government measures
(ii) Voluntary measures

 

Long Answer Type Question

Question. Describe salient feature of Consumer Protection Act of 1986. How did it enhance the powers of the redressal machinery of India? 
Answer : Salient features of Consumer Protection Act, 1986 are:
(i) It applies to all goods and services.
(ii) It covers all the sectors whether private, public or cooperative.
(iii) It gives various right to the consumers.
(iv) It also established consumer protection councils at the central and state levels to promote and protect the rights of the consumers.
(v) It provides a separate three tier quassi judicial machinery at the national, state and district levels.
The Act provides for the establishment of consumer disputes redressal agencies of district, state and national levels for the protection and promotion of consumer interests and to redress their grievances in a speedy, simple and inexpensive manner. The agencies are required to dispose of each complaint within three months. At the national level, it is called the national consumer commission, which is the apex court under the Act, and function at Delhi.
At the state level, it is called the state consumer commission.
At the district level, it is called district forum.
These courts look into grievances and complaints of the consumers against the traders and manufacturers and provide the necessary relief and compensation. The district level court deals with the cases involving claims up to Rs. 20 lakhs, the state level courts between Rs. 20 lakhs, and Rs. 1 crore and the national level court deals with cases involving claims exceeding Rs. 1crore.

Question. Explain the main causes for the increase in the prices. Give two arguments in favour of regulating the rising prices. 
Answer : Cause for rise in prices in India are:
(i) When cost of production goes up because of the increase in the prices of raw materials, the increased cost is added to the existing price levels.
(ii) When people have more income in their hands, their demand for goods and services increase. If this increase is not met by increase in supply of goods and services, there is shortage. This increases the price of goods and services.
(iii) The government keeps on raising the process of number of commodities (e.g., petroleum) from time to time. All these revisions in the administered prices have contributed to the price rise in recent years.
(iv) Hoarding by producers, wholesalers especially when production goes down in the country, aggravates scarcity conditions and pushes up the price level.
(v) Imposition of indirect taxes like excise and custom duties, and sales tax gives an opportunity to trading class to raise the prices.
(vi) Increase in population creates pressure on the demand for goods and services which in turn becomes the cause for price rise.
Two arguments in favour of regulating the rising prices are:
(i) Sometimes, traders whose main aim is to earn profit raise the prices by illegal ways.
(ii) If there is no increase in wage for workers who are also consumers in the market, they cannot buy the goods. This creates problem for the people.

Question. Attempt a brief note on COPRA.
Answer : COPRA - 'Consumer Protection Act 1986' was passed by the parliament in 1986 (and came into force with effect from July 1, 1987) for the protection of the consumers from unscrupulous producers and dishonest traders.
Salient features of the Consumer Protection Act are as follows:
(i) Applies to all goods and services unless specifically exempted by the Union Government.
(ii) Covers all the sectors whether private, public or cooperative.
(iii) Provisions of the Act are compensatory in nature.
(iv) Enshrines the consumer's rights related to safety, information choice, representation, and redressal and consumer education.
(v) Empower consumers seeking discontinuance of certain unfair and restrictive trade practices, defects or deficiencies in service, and stopping in services, or withdrawal of hazardous goods from the market.

Question. Explain three causes of price rise in India. How is the public distribution system helpful in controlling the price rise? Explain with suitable examples.
Answer : Causes for rise in price in India are:
(i) When cost of production goes up because of the increase in the price of raw materials, the increased cost is added to the existing price levels.
(ii) When people have more income in their hands, their demand for goods and services increase. If this increase is not met by increase in supply of goods and services, there is shortage. This increases the price of goods and services.
(iii) The government keeps on raising the process of number of commodities (e.g., petroleum) from time to time. All these revisions in the administered prices have contributed to the price rise in recent years.
(iv) Hoarding by producers, wholesalers especially when production goes down in the country, aggravates scarcity conditions and pushes up the price level.
(v) Imposition of indirect taxes like excise and custom duties, and sales tax gives an opportunity to trading class to raise the prices.
(vi) Increase in population creates pressure on the demand for goods and services which in turn becomes the cause for price rise.
Public Distribution System: Government of India, under its public distribution system ensures the availability of essential commodities such as wheat rice, sugar edible oil and kerosene oil to the consumers at reasonable prices through a network of fair price shops. At present, there are about 4.61 lakh of fair price shops in the country. Subsidies are borne by the government.
Administrative Price Mechanism: Administrative Prices are those prices of goods and services, which are controlled by the government. Government of India has imposed price controls on a number of commodities, e.g. steel, automobiles, etc. Producers of these commodities cannot charge prices higher than the maximum prices fixed by the government.

Question. Describe the circumstances leading to the awareness among the consumers and the steps for promoting their welfare. 
Answer : There is a great importance need for consumer awareness due to the following consideration:
(i) The need for consumer awareness was felt because out of their selfishness, both the manufacturers and traders can go to any extent. They can charge high prices, stoop to underweight and under measurement methods. For example - their lust for money led to an enormous rise the price of onions in 1999.
(ii) The need for consumer awareness was felt all the more when some unscrupulous traders began to play with the health of the nation by indulging in adulteration of edible oils, milk, butter ghee, etc. For example - even spurious medicine were introduced. This was beyond the patience of the nation. Nobody can allow then to play with the life of the nation.
(iii) Legislative measure includes enactment of the consumer protection act. The government also amended certain provisions in other Acts. It has enacted a specific law called the consumer protection Act in 1986.
(iv) Administrative measure includes distributing essential commodities through Public Distribution System (PDS). PDS ensures availability of essential commodities like wheat, rice, sugar, kerosene, etc. to the consumers through a network of outlets or Fair Price Shops (FPS). There is at present a network of 4.61 lakhs PDS outlets in the country.

 

NCERT Questions

Question. Describe some of your duties as consumers if you visit a shopping complex in your locality.
Answer : Any person who buy anything in the market and uses it is called a consumer.
Duties of Consumers are:
(i) It is responsibility of the consumer to be more alert and questioning about the price and quality of goods and services that he or she uses.
(ii) To assert and act to ensure that he or she gets a fair deal.
(iii) To organize together as consumers to develop the strength and influence to promote and protect their interests
(iv) To purchase quality marked products such as ISI, AGMARK arc.
(v) To ask for cash memo for the items purchased whenever possible.
(vi) To make complaint for genuine grievances.
(vii) Consumers must know their rights and must exercise them.

 

Say true or False

(i) COPRA applies only to goods.
Answer : False

(ii) India is one of the many countries in the world which has exclusive courts for consumer redressal.
Answer : True

(iii) When a consumer feels that he has been exploited, he must fill a case in the district consumer court.
Answer : True

(iv) It is worthwhile to move to consumer courts only if damages incurred are of high value.
Answer : False

(v) Hallmark is the certification maintained for standardization of jeweler.
Answer : True

(vi) The consumer redressal process is very simple and quick.
Answer : True

(vii) A consumer has the right to get compensation depending on the degree of the damage.
Answer : True

Value Based Questions

Question. 'Exploitation in the market place happens in various ways. Sometimes the traders indulge in unfair trade practices, such as when shopkeepers weigh less than what they should do or when traders add charges that were not mentioned before.'
a. How are the consumers exploited by the traders and the shopkeepers?
b. What value(s) do you learn from the above paragraph?

Answer : (a) The consumer are exploited by the shopkeeper. They charged full amount fir the comparatively lesser weight of the commodity. Many hidden charges are also included in the bill or interior quality of goods are sold.
(b) The value(s) learnt is to be an alert customer and check what you have purchased before making payment. Check for logos like B.ISSUE.S or AGMARK, Read the whole matter given on the label.

 

Question.  A consumer
a) Sells goods and services
b) Buy goods and services
c) Produces goods and services
d) Delivers goods and services
Answer : B

Question. Adulteration is
a) Selling defective items
b) Overpricing
c) Underweight measurement
d) Mixing cheap materials
Answer : D

Question. Causes of consumer exploitation
a) Right to Information
b) Proper Supply
c) Low literacy
d) High literacy
Answer : C

Question. Which is not a function of PDS
a) Control Hoarding
b) Control Prices
c) Control over charging
d) Consumer Redressal
Answer : D

Question. COPRA stands for
a) Consumer Protection Act
b) Consumer Prevention Act
c) Consumer Police Act
d) Consumer Power Act
Answer : A

Question. Pick odd one out
a) Right to information
b) Right to choice
c) Right to adulteration
d) Right to redressal
Answer : C

Question. Pick odd one out
a) Right to safety
b) Right to life
c) Right to consumer education
d) Right to representation
Answer : B

Question. National Consumer Day is celebrated in India
a) 24 December
b) 25 December
c) 26 December
d) 27 December
Answer : A

Question. COPRA does not propose formation of
a) National Consumer Court
b) State Consumer Court
c) District Consumer Court
d) High Court
Answer : D

Question. ISO stands for
a) International Standard Organization
b) International Organization for Standardization
c) International School Organization
d) International Standardization
Answer : B

Question. In which one of the following courts consumer should file a case if he or she exploited in the market? 
a) Local court
b) State court
c) Supreme court
d) Consumer court
Answer : D

Question. In which one of the following the logos ISI is used for? 
a) LPG cylinder
b) Jewelry
c) Gold
d) Agricultural product
Answer : A

Question. The district court deals with the cases involving claim up to the_________. 
a) Rs. 1 crore
b) Rs. 40 lakhs
c) Rs. 30 lakhs
d) Rs. 20 lakhs
Answer : D

Question. Which of the following rights related to availing details of ingredients of a product?
a) Right to safety
b) Right to choose
c) Right to be informed
d) Right to represent
Answer : C

Question. The district level court deals with the cases involving claims: 
a) Up to Rs. 10 lakhs
b) Up to Rs. 20 lakhs
c) Between Rs. 20 lakhs to Rs. 1 crore
d) Exceeding Rs. 1 crore
Answer : B

Question. Which one of the following statements is false? 
a) The consumer has right to represent in the consumer court
b) The consumer redressal process is very simple and very quick
c) Hall mark is the certification maintained for standardization of jewelry
d) The consumer has the right to be informed.
Answer : B

Question. In India, the consumer movement as a _________ originated with the necessity of consumers against unethical and unfair trade practices.
a) Cultural force
b) Social force
c) Economical force
d) Political force
Answer : B

Question. At international level, this has become the foundation for consumer movement…
a) Consumers international
b) COPRA
c) Consumer forum
d) None of the above
Answer : A

Question. In the case of Reijo Mathew, he suffer due to anesthesia which resulted in brain abnormalities. Who was held responsible by the national commission after looking in to complain?
a) Father
b) Mother
c) Hospital
d) Patient himself
Answer : C

Question. In October 2005, the government of India enacted a law known as
a) Right to choose act
b) Right to information act
c) COPRA
d) Public distribution system
Answer : B

Question. Consumers have the right to be protected against any danger cause by goods like electrical goods and pressure cookers. The right referred here is
a) Right to seek redressal
b) Right to be heard
c) Right to safety
d) Right to consumer education
Answer : C

Question. Which right of consumer is violated if the consumers are not allowed to get their claims settled against manufacturer in case they are cheated or exploited?
a) Right to seek redressal
b) Right to choose
c) Right to be heard
d) None of them
Answer : A

Question. Consumer forums guide consumers on how to file cases and represent individual consumers in the consumer court. Is this statement true?
a) No
b) May be or may not
c) Yes
d) Never
Answer : C

Question. State level court deals with the cases involving claims between
a) Rs. 1 lakhs to 20 lakhs
b) Rs. 1 crore and above
c) Rs. 20 lakhs to 1 crore
d) Any amount
Answer : C

Question. National Consumer Day in India observed on:
a) 24 December
b) 14 December
c) 14 January
d) 31 December
Answer : A

Question. The organization which sets standard of products at the international level
a) ISO
b) COPRA
c) Agmark
d) BIS
Answer : A

Question. When is ‘World Consumer Rights Day’ celebrated?
a) 12th March
b) 15th March
c) 11th March
d) 18th March
Answer : B

Question. What does ‘ISO’ stand for?
a) International Organisation for Security
b) Indian Organisation for Standardisation
c) International Organisation for Standardisation
d) None of the above
Answer : C

 

Very Short Answer Type Questions

Question. What do sellers usually do when there is a complaint regarding a good or service that had been bought?
Answer : They try their best to shift all the responsibility to the buyer.

Question. When did the consumer movement come into being in an organised form in India?
Answer : It came into being in an organised form in the 1960s.

Question. What are the details given on the packing of a commodity?
Answer : These details are about ingredients used, price, batch number, date of manufacture, expiry date and the address of the manufacture.

Question. The consumer movement in India has led to the formation of various organisations. Name them.
Answer : Consumer forums or consumer protection councils.

Question. How do organisations like consumer forums help consumers?
Answer : They guide consumers on how to file cases in the consumers court on many occasions. They also represent individual consumers in the consumer courts.

Question. What is adulteration?
Answer : When some foreign matter, injurious to health, is mixed with any good or natural production, it is called adulteration. This is the most heinous crime against humanity.

 

 

Short Answer Type Questions

Question.  Why COPRA is enacted in India?
Answer : Consumer Protection Act 1986 (COPRA) is enacted in India with following motives:
(i) To pressurize business firms.
(ii) To correct unfair business conduct.
(iii) To protect the interests of the consumers.
 
Question.  What do you understand by consumer protection?
Answer : By consumer protection we mean the protection of the consumers against the unfair and malpractices adopted by the businessmen. These may be grouped mainly into two categories.
(i) Government measures
(ii) Voluntary measures
 
Question. How do the logos ISI, Agmark or Hallmark help consumers?
Answer : These logos and certification help consumers get assured of quality while purchasing goods and services. The organizations that monitor and issue the certificates allow the producers to use these logos provided they follow certain quality standards.
 
Question. Mention a few Organizations that provide certification of standardization in India.
What do you mean by ISO?
Answer : (i) BIS and ISI (ii) AGMARK (iii) HALLMARK
It means International Organization for Standardization which has its headquarter at Geneva. It does the Standardization work at the international level.
 
Question. What is the need for consumer awareness?
Answer : The need for consumer awareness was felt because both the manufacturers and traders can go to any extent out of their selfishness. They can charge high prices, and resort to underweight and under measurement methods. Their lust for money may lead to loss of money and health of consumers.

Question. Mention the consumer’s ‘right to choose’ with an example.
Answer :  Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service has the ‘right to choose’ whether to continue to receive the service.
Example: Suppose you want to buy soap and the shop owner says that he can sell the soap only if you buy a shampoo. If you are not interested in buying the shampoo, your right to choice is denied. The consumer has every right to purchase only those things that he wants to purchase.

Question. Describe the conditions in which markets do not work in a fair manner.
Answer : Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. This happens especially when large companies are producing these goods. These companies with huge wealth, power and reach can manipulate the market in various ways. At times false information is passed on through the media and other sources to attract consumers.

Question. What is the three-tier quasi-judicial machinery in India under COPRA?
Answer : Under COPRA, a three-tier quasi-judicial machinery at district, state and national levels has been setup for redressal of consumer disputes.
(i) The district level court deals with the cases involving claims up to ` 20 lakhs.
(ii) The state level courts take cases between ` 20 lakhs to ` 1 crore.
(iii) The national level court deals with the cases involving claims exceeding ` 1 crore.
If the case is dismissed at district level court, the consumer can also appeal in state and then in national level courts. Thus, the act has enabled us as consumers to have the right to represent in the consumer courts.

Question. How does consumer awareness help our society?
Answer :
The awareness of being a well-informed consumer arose out of consumer movement and active participation of people through their struggles over a long period. Before this movement, consumers were being exploited in a number of ways. Sometimes they were becoming the victims of hoarding and black marketing while sometimes shopkeepers sold them adulterated food. But these practices ceased to exist after the consumer movement. The movement empowered the consumers by giving them certain rights such as right to be informed, right to choose, etc. Now the consumers have every right to purchase only their things that they want to purchase.
Consumer awareness helps in making our society highly sophisticated.

 

Long Answer Type Questions

Question. What are the different forms of consumer exploitation?
Answer : The different forms of consumer exploitation are:
(i) Less weigh. (ii) Defective goods. (iii) Provide poor services.
(iv) Impure quality of products/goods. (iv) High prices: sellers usually charge a price higher than the prescribed retail price. (v) Duplicate Articles.
(vi) False or incomplete information, misleading consumers.
(vii) Lack of safety devices which cause harm to the consumers.
(vi) Adulteration: Mixing or substituting undesirable materials in food items etc.
(vii)Unsatisfactory after sale service: supplies do not provide satisfactory behavior.
(viii) Large companies with huge wealth, power and reach can manipulate in the market.
 
Question. What are the factors responsible for the consumer exploitation?
Answer : The following factors are responsible for the consumer exploitation:
(i) Limited information - For a correct decision and choice about a product, a consumer needs full information about the price, quality, durability, composition, etc of the Product. In the absence of full and correct information, a consumer may get exploited.
(ii) Limited supplies- when the supply of goods is less than their demand, the prices may go high and may also encourage the tendency of hoarding. As a consequence, consumers will get exploited.
(iii) Limited competition-when there is limited competition with regard to production i.e., when producers are few and can control and restrict the supply of a product there is a possibility of manipulation in prices.
(iv) Low literacy-Illiteracy causes ignorance, which leads to exploitation of consumers. The level of awareness in our country is generally low.
 
Question. What are consumer protection councils?
OR
Question. What are consumer forums?
Answer : These are voluntary organizations locally known as consumer forums or consumer protection councils. The main activities of the consumer forums or consumer protection councils are:
(i) They guide consumers on how to file cases in the consumer court.
(ii) They may represent individual consumers in the consumer courts.
(iii) They create awareness among the people.
These voluntary organizations receive financial support from the government for the above purposes.
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