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Chapter 12 Consumer Protection Class 12 Business Studies HOTS
Class 12 Business Studies students should refer to the following high order thinking skills questions with answers for Chapter 12 Consumer Protection in Class 12. These HOTS questions with answers for Class 12 Business Studies will come in exams and help you to score good marks
HOTS Questions Chapter 12 Consumer Protection Class 12 Business Studies with Answers
1 Mark question
Question : MS X purchased a car of Rs.15 lakh but he is to satisfied with the quality and performance of the car. The company of the car did not provide any remedy to him. Under which authority of consumer protection Act’ 1986 he can file an appeal ?
Answer : District form.
Question : Without what period of purchase the complaint can be filed under consumer protection Act ?
Answer : Within 3 months of purchase.
Question : On which type of products can eco mark is used ?
Answer : Environmental friendly products.
Question : On which type of products can eco mark be used ?
Answer : Agriculture products.
Question : “X, who was a vegetarian went to a snack bar for having burger and later found that it had a non-vegetarian content. Neither the advertisement nor the packing of the product displayed about the content”. Which right of consume is violated ?
Answer : Right of Information.
Question : Amit wants to buy Gold Jewellary. As an aware customer how can he be sure about the quality of the jewellary ?
Answer : Hall mark.
Question : A consumer is not satisfied with the order of the District forms, where can he appeal ?
Answer : State commission.
Question : If a case is decided by the District form, can it be appealed before the supreme court.
Answer : No, it can be challenged in state common.
Question : Which kind of appeals can be taken to the Supreme Court ?
Answer : Only those where consumer is not satisfied with the decision of National Commission and value of goods exceeded Rs 1 crore.
Answer : Right to be heard.
Answer : Right to seek redressal.
Answer : 15th March.
Answer : District forum, state commission, National Commission.
Answer : Right to safety.
Answer : Right to choose.
Answer : Essential commodities Act, 1955, MRTP Act, 1969.
Answer : Common cause (New Delhi), voice, Consumer Guidance society of India, Mumbai.
Answer : (i) Educating the consumers about their rights
Answer : ISI
Answer : 1-July-1987.
Answer : Only those appeals where the value of goods and services in question, along with the compensation claimed exceeded Rs. 1 crore and where the aggrieved party was not satisfied with the order of the National Commission.
Answer : Mr. Deepak is a cautious consumer. He had taken the cash memo for the book he purchased. Therefore, he can recover the extra money (Rs. 20). Besides as per the Consumer Protection Act, 1986, following option are also available to him against the book-seller :-
a) He can return the book and ask for the repayment of Rs. 200 which he paid for buying the book.
b) He can sue the book – seller for using unfair and restrictive trade practices.
Answer : In the given case, Mr. Ashu, as a consumer, was not able to fulfill his responsibility at two fronts :-
a) He did not go through the packing specification mentioned on the product at the time of purchases.
b) Most importantly, he did not obtain the cash memo from the seller. A cash memo is a proof of purchases and a must for filing any complaint. Hence, he will not be able to protect himself by the loss caused due to expired medicines.
Consumer Protection (Question Bank) Questions (¾ marks)
Question. Who is a Consumer under Consumer Protection Act, 1986?
Answer: According Consumer Protection Act, a consumer is:
a) One who buys goods or service for some value
b) Any user of such goods or beneficiary of service with approvel of the buyer.
c) Any one who uses the goods bought or service hired for earning livelihood by self-employment.
Question. Who can file a complaint under Consumer Protection Act, 1986?
Answer: A complaint can be field by :-
a) Any consumer
b) Any registered Consumer Association.
c) The central or state government
d) One or more consumer on behalf of numberous consumers
e) A legal heir of a deceased consumer.
Question. When or under what circumstances the complaints can be lodged by the consumer?
Answer: Complaints can be filed and compensation can be claimed by the consumer with respect to :-
a) Fraudulent practices of traders and manufactures
b) If goods are defective
c) If there is any deficiency in the services hired
d) Over charging of prices
Question. Explain the role of Consumer Organizations and NGOs.
Answer: Non Government Organizations are voluntary organizations established to protect and promote the interests of under privileged sections of society. Child Relief and you (CRY) for example is a NGO for protection and welfare of children.
NGOs and can take the following steps for consumer protection :-
a) To inform and educate consumers about their rights and responsibilities.
b) To file consumer grievances with appropriate authorities for redressal.
c) To act as spokemen/representatives of consumers.
d) To organize consumers.
e) To advise and assist government agencies in matters relating to cosumer education.
f) To undertake research and publish journals for the welfare of consumers.
Question. What are the various ways & means of Consumer Protection?
Answer: Means for protecting consumers in India are given below :-
a) Publicity : All India Radio and Doordarshan telecast regular programmes on consumer protection. Film documentaries and video documentaries have been prepared to educate consumers. The Ministry publishes a quarterly journal ‘Upbhokta Jagaran’ directories and brochures on consumer affairs. World Consumer Rights Day is celebrated on 15th March every year.
b) Awards : Government of India offers awards to youth and women in order to encourage their participation in consumer protection.
c) Consumer welfare fund : Govt. of India has created a fund for the welfare of consumers. This fund is to be utilized on consumer education, training and research in consumer education, setting up counseling, guidance and complaint handling facilities, setting up of product testing laboratories, etc.
d) Lok adakats : In a lok adalat the aggrieved consumer can directly present his grievance. The officials of the concerned firm discuss the matter and take appropriate decisions. This method saves time and money of people. It is a speedy and economical redressal system. Delhi Development Authority, Delhi Transport Corporation, Mahanagar Telephone Nigam Limited and India Railways organize lok adalats from time to time.
Questions 5/6 marks
Question. Explain the importance of Consumer Protection in a developing country like India.
Answer: The need for Consumer Protection arises due to following reasons :-
A. From Consumer Point of view :
a. Consumer Ignorance : In India, incidence of poverty and level of illiteracy high. Therefore it become necessary to educate them about the pure and adulterer goods so as to achieve consumer awareness.
b. Unorganized Consumers : In India consumer have yet not
organized themselves in the form of consumer organizations. Therefore, adequate protection is required to be given to consumers till these organizations become powerful enough.
c. Widespread Exploitation of Consumer : Consumers can be exploited by unfair trade practices like defective and unsafe products, false and misleading advertisements etc.
B. From Business Point of view
a. Long term interest of the business : Enlightened business man only realizes that it is in their long interest to satisfy customers because they can only lead to repeated sales.
b. Social Responsibility : A business has social responsibilities towards various interest groups including consumers. Thus, consumers like other stakeholders; their interest has to be well taken care of.
c. Moral Justification : It is the moral duty of any business to take care of consumer’s interests and avoid any form of their exploitation and unfair trade practices.
d. Government Interventions : A business engaging in any form of exploitative trade practices would invite government interventions or action. This would tarnish the image of the company.
Question. Explain the various right of consumer given under Consumer Protection Act, 1986?
Answer: The Consumer Act Provides the following six rights of Consumers.
a) Right to safety : It means the right to be protected against products, production processes and services which are hazardious to health to life. It also includes protection against environmental pollutions.
b) Right to be informed : A consumer has a right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, so as to make the right decision and protect themselves against abusive practices.
c) Right to choose : It deals with the issue of choosing between different alternatives. It can be defined as an assurance, whenever possible, of availability, ability and access to a variety of products and services at competitive prices.
d) Right to representation : It means the right to advocate consumer’s interests with a view to receiving full and sympathetic consideration in the formation and execution of
economic and other policies, which affect consumers.
e) Right to seek redressal :This right includes the right to receive compensation for supply of unsatisfactory services or shoddy goods and availability of forms of legal aid or redress for small claims whenever necessary.
f) Right to consumer education : It means the right to acquire the knowledge and skills to be an informed consumer. It is easier for the literate to know their rights and to take actions to influence factors which affect consumers decisions.
Question. What responsibilities should a consumer keep in mind while purchasing, using and consuming goods and services?
Answer: Following are the responsibilities of consumers to safeguard their interests :
a. Awareness of rights : Consumers must be aware of their own rights. These rights are to safety, right t be heard, right to choose, right to be informed, right to seek redressal and right to consumer education. Consumers must exercise their rights.
b. Full information : A consumer must have all relevant information before making the purchase. He should not depend entirely on the seller. He should verify the quality, quantity, utility, price etc. of products and services.
c. Cash memo : A consumer must insist on cash memo, cash memo acts as a proof of purchase. Every seller is bound to give a cash memo.
d. Cautious reliance on advertisement : Consumer should not believe the advertisements blindly. Consumers should compare the uses of the product given in the advertisement copy and actual product. Any discrepancy should be brought to the notice of relevant authorities.
e. Quality conscious : Consumers must look at standard quality certification markets like ISI, Agmark, FPO, etc.
f. Redressal of grievances : Consumers should file complaints for the redressal of genuine grievances.
Question. What are the various remedies available to a consumer under Consume Protection Act, 1986?
Answer: Following are the remedies available to a consumer under Consumer Protection Act :
a. Removal of defects from the goods.
b. Replacement of the goods
c. Refund of the price paid
d. Award of compensation for or injury suffered.
e. Removal of deficiency in services.
f. Discontinuance of unfair trade practice or restricted trade practice.
g. Stopping the sale of hazardous goods.
h. Withdrawal of hazardous goods from being offered for sale.
i. Payment of adequate costs to parties.
Question. What type of judicial machinery is available to deal with consumer grievances and disputes?
Answer: The Consumer Protection Act, 1986 provides for three tier machinery for the redressal of consumer grievances :
a. District forum : This is established by the state government in each district. It shall consists of a chairman and two members appointed by the state Government. Only those complaints can be filed in the District Forum where the value of goods or service and the compensation claimed is upto rupees twenty lakhs. An appeal against the order of the District forum can be filed with the State Commission within 30 days.
b. State Commission : This is established by the Government in the state. It shall consist of a President who either is or has been a Judge of a High Court and two other members. All the three shall be appointed by the State Government. Only those complaints can be filed in the state commission where the value of goods or services and the compensation claimed exceed 20 lakhs but does not exceed Rs. 1 Crore. An appeal against the order of the state commission can be filed before the National Commission within 30
days.
National Commission : This is established by the Central Govt. It shall consist of a President who is or has been a judge of the Supreme Court and four other members. All shall be appointed by the Central Govt. All the complaints where the value of goods or services and the compensation sought is more than rupees I crore can be filed with the National Commission. An appeal against the order the National Commission can be filed before the Supreme Court within 30 days.
Case Based Questions Class 12 Business Studies Consumer Protection
Ques 1: Which consumer right gives the business firm freedom to set up their own consumer service and grievance cell?
Ans: Right to be heard.
Ques 2: Ahmed wants to buy an iron. As an aware customer how can he be sure about the quality of iron?
Ans: Through ISI mark on the iron.
Ques 3: 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?
Ans: Mohit can further appeal against the decision of District Forum in the ‘State Commission’ within 30 days.
Ques 4: Ram wants to buy ghee. How can he check the quality of product?
Ans: Through ‘AGMARK’ symbol.
Ques 5: 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’.
Ans: Amrit can further appeal in ‘National Commission’.
Ques 6: Can a consumer file complaint in consumer court without having cash memo?
Ans: No, without cash memo he cannot file a complaint. Cash memo is the proof of the transaction.
Ques 7: Name any two consumer rights.
Ans: (i) Right to Safety (ii) Right to Choice.
Ques 8: List any three consumer organizations in India.
Ans: (i) Consumer Guidance Society of India (Mumbai),
(ii) Common Cause (New Delhi),
(iii) Citizen Action Group (Mumbai)
Ques 9: Who is a consumer?
Ans: According to Consumer protection Act, a consumer is :
(i) One who buys goods or hires services.
(ii) Any use of such good or service with approval of buyer.
(iii) Any one who bought the goods for earning livelihood.
Ques 10: Why is consumer protection required in India?
Ans: Because of following reasons :
(i) Poverty and unemployment
(ii) Illiterate consumers
(iii) Consumers are not organized.
Ques 11: Suggest any three remedies or reliefs available to consumer on his complaints.
Ans: (i) Removal of defects from the goods.
(ii) Replacement of the goods.
(iii) Refund of the price paid.
Ques 12: Can a consumer appeal against the judgement of National Commission? If yes, than where?
Ans: Yes, he can appeal in High Court or Supreme Court.
Ques 13: Who can file a complaint in consumer court?
Ans: (i) Any Consumer;
(ii) Any Registered Consumers’ Association;
(iii) The Central Government or any State Government;
(iv) One or more consumes on behalf of numerous consumers having the same interest; and
(v) A legal heir or representative of a deceased consumer.
Ques 14: Explain the following as ways and means of consumer protection: (i) Consumer Awareness (ii) Government.
Ans: (i) Consumer Awareness- It is not easy to exploit an educated and well aware consumers. Consumer must be well aware about his rights, responsibilities and relief available to him under Consumer Protection Act.
(ii) Government- Government of India has framed a set of laws and legislations to protect the interests of consumers and the most important act framed by Government is Consumer Protection Act,1986. This act has provided three tier redressal agencies i.e., District Forum, National Commission and State Commission.
Ques 15: Rita wants to buy a packet of juice. As an aware customer how can she be sure about the quality of juice she plans to buy?
Ans: She should check ‘FPO’ ( Food Product Order) symbol on the product.
Ques 16: When or under what circumstances the complaints can be filed?
Ans: Complaint can be filed and compensation can be claimed by the consumer with respect to-
(a) Fraudulent practices of traders and manufacturers.
(b) If goods are defective.
(c) If there is any deficiency in the services hired.
Ques 17: Name two consumer rights defined by UNO.
Ans: (i) Right to Basic Need.
(ii) Right to Healthy Environment.
Ques 18: Rajiv, a vegetarian was traveling in Rajdhani Express was served food and later he found out that it had a non-vegetarian content. His sentiments were hurt. Will Rajiv be able to claim compensation, which right of the consumer is violated?
Ans: Yes, Rajiv will be able to claim the compensation as the railways have violated the Right to Information.
Unit-12
CONSUMER PROTECTION
Q1) Which consumer right gives the business firms freedom to set up their own consumer service and grievance cells?
Ans 1) Right to representation.
Q2) Mention when as a consumer you are not in a position to resolve your grievance under consumer protection act.
Ans 2) As a consumer we are not in a position to resolve our grievances when we have not fulfilled the responsibilities of a consumer.
Q3) Sandeep purchased a diesel car for Rs. 7 lacs from an automobile company and found its ngine defective. Despite many complaints the defect was not rectified .Suggest to him the ppropriate authority where he could file a complaint under consumer protection Act.
Ans) District Forum.
Q4) A co. is using sub- slandered electric wiring in its coolers. Which consumer right is being violated?
Ans) right to safety.
Q5) Which document serves as an evidence of purchase?
Ans) “Cash Memo.”
Q6) Rita wants to buy a packet of juice .As an aware customer how can she be sure about the quality of juice she palns to buy?
Ans) Rita can check for FPO (Fruit product order 1955) certifications. She can check the date ofmanufacture and expiry and check the storage / display conditions.
Q7) Mr. Soni a consumer purchased medicines without noticing the date of expiry . He also did not obtain the cash memo. Do you think he will be able to protect himself by the loss caused due to expired medicines ? give reasons in support of your answer?
Ans) In the given case, Mr. soni as a consumer was not able to fulfill his responsibility at two fronts.
(I) He didn't go through the packing specifications mentioned on the product at the time of purchase.
(II) Most importantly , he did not obtain the cash memo from the surer. A cash memo is a proof of purchase and it is must for filing any complaint. Hence , he will not be able to protect himself by the loss caused due to expired medicines.
Q8) Mr. Verma who was a vegetarian went to a snack bar for having French fries and later ound out that it had non-vegetarian content. Neither the advertisement nor the packing of the product displayed that the product has non-vegetarian content. Will Mr. Verma be able to claim compensation which right of the consumer is violated here?
Ans) In the given case there is violation of the consumer right to know .Acc. to the amendment of the regulations in weight and measurement Act.(2000) every product should explicitly bear a green dot for vegetarian ingredients while brown reveals that non-vegetarian ingredients have been used. t is also mandatory to show the dot on an advertisements electronic or press and all posters ,banners ,stunts etc. hence Mr. Bharti would be able to claim the compensation.
Q9) As a well informed consumer. what kind of quality certification marks you will. Look for before buying ‘products? Specify any 6.
Ans) Some of the quality certification marks are:
(1) FPO( Fruit Products Order 1955) – It contains specification and quality control requirements regarding the production and marketing of processed fruits and vegetables ,sweetened aerated water, vinegar and synthetic syrups.
(2) ISI- On consumer durable products.
(3) Hall mark- BIS certification scheme for gold jewellery items.
(4) Earthen Pitcher –For Labeling Environment friendly products.
(5) AGMARK – It is a grade standard for agricultural commodities and like stock products.
(6) Wool mark- It signifies 100% pure wool.
Q10) A shopkeeper sold you some spices, claiming that they were pure. Later a laboratory test formed that those were adulterated what precautions should you have taken before buying and what remedies are available to you for the wrong act?
Ans) We should have been conscious about quality and should obtain cash memo from the seller while purchasing goods. The remedies available are:
(1) Getting the product replaced
(2) Getting the refund of the price
(3) Compensation.
Q11) What is the quality mark provided to agricultural commodities and live stock products?
Ans) AGMARK.
Q12) Name any two NGO’s engaged in protecting and promoting consumer’s interest.
Ans)(a) Consumer co ordination council ,Delhi
(b) Consumers Association, kolkata .
Q13) Saroj wants to file a complaint where the value of goods or services in question along with the compensation claimed amounts to 25 lakhs.
Ans) State Commission.
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HOTS for Chapter 12 Consumer Protection Business Studies Class 12
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