GENII INSTITUTE OF SCIENCE & COMMERCE

Consumer Protection
CONSUMER PROTECTION
Consumer Protection: Definition
Consumer protection refers to not only providing education to
consumers about their rights and responsibilities, but also helping
them in getting their grievances redressed

Importance of Consumer Protection from Businessman’s Point

of View

 Long-term Interest of Business is assured.

 Business uses society’s resources so they need to safeguard
consumer’s interests.
 Social Responsibility towards consumers as an important interest
group.
 It is the moral obligation of the businessmen to give due
consideration to the consumer’s interest.
 To avoid government intervention in business.

Importance of Consumer Protection from Consumers’s Point of

View

 Consumer Ignorance needs to be removed

 Unorganised Consumers need a mechanism to unite themselves.
 Widespread Exploitation of Consumers needs to be checked.

Ways and Means of Consumer Protection

 Self Regulation by enlightened business firms.

 Business Associations have laid down code of conduct for
businesses.
 Consumer Awareness promotes consumerism.
 Consumer Organisations provide support to the consumers.
 Government provides necessary framework to safeguard the
interest of consumers.

Consumer: Definition
A ‘consumer’ is generally understood as a person who uses or

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consumes goods or avails of any service. A person who buys goods for
commercial purpose or resale will not be considered to be a consumer.

CONSUMER PROTECTION ACT, 1986

Who can file a complaint?

 Any consumer
 Any registered consumer’s association
 The Central Government or any State Government. One or more
consumers, on behalf of numerous consumers having the same
interest.
 A legal heir or representative of a deceased consumer.

Rights Available to a Consumer

 Right to Information.
 Right to Choose.
 Right to be Heard.
 Right to Seek Redressal.
 Right to Consumer Education.
 Right to Safety.

Reliefs Available to a Consumer

 To remove the defect in goods or deficiency in service.

 To replace the defective product with a new one, free from any
defect.
 To refund the price paid for the product, or 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 pay punitive damages inappropriate circumstances.
 To discontinue the unfair/restrictive trade practice and not to
repeat it in the future.
 Not to offer hazardous goods for sale.
 To withdraw the hazardous goods from sale.
 To cease manufacture of hazardous goods and to desist from
offering hazardous services.
 To pay any amount (not less than 5% of the value of the
defective 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.

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 To issue corrective advertisement to neutralise the effect of a

misleading adverstisement.
 To pay adequate costs to the appropriate party.

Responsibilities of a Consumer

 Be aware about various goods and services available in the

market.
 Buy only standardised goods and check for standardisation mark.
 Be aware about the risks associated with the products and
services and use them prudently.
 Read the labels carefully.
 Assert yourself to ensure that you get a fair deal.
 Be honest in your dealings.
 Ask for a cash memo on purchase of goods or services.
 File a complaint in an appropriate consumer forum in a case of a
shortcoming in the quality of goods purchased or services
availed.
 Form consumer societies which would play an active part in
educating consumers and safeguarding their interests.
 Show concern for the environment

CONSUMER PROTECTION
Role of Consumer Organisations and NGOs in Promoting
Consumer Protection

 Educating the general public about consumer rights.

 Educating consumers through various publications.
 Conducting comparative testing of consumer products.
 Encouraging consumers to strongly protest wherever necessary.
 Filing complaints in appropriate consumer courts on behalf of the
consumers.
 Providing legal assistance to consumers in seeking legal
remedy. ,
 Being proactive in filing cases in consumer courts in the interest
of the general public.

Names of a few Consumer Organisations and NGOs

 Consumer Coordination Council, Delhi

 Common Cause, Delhi
 Voluntary Organisation in Interest of Consumer Education
(VOICE), Delhi

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 Consumers’ Association, Kolkata.

REDRESSAL AGENCIES UNDER THE CONSUMER PROTECTION

ACT
District Forum

 It comprises of three members who are appointed by the State

Government concerned, namely, a President and two other
members, one of whom should be a woman.
 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 ? 20 lakhs.
 On receiving the complaint, the District Forum shall refer the
complaint to the party against whom the complaint is filed. If
required, the goods or a sample thereof, shall be sent for testing
in a laboratory. The District Forum shall pass an order after
considering the test report from the laboratory and hearing to the
party against whom the complaint is filed.
 In case the aggrieved party is not satisfied with the order of the
District Forum, he can appeal before the State Commission within
30 days of the passing of the order

State Commission

 Each State Commission comprises of a President and not less

than two other members, one of whom should be a woman. They
are appointed by the State Government concerned.
 A complaint can to be made to the appropriate State Commission
when the value of the goods or services in question, along with
the compensation claimed, exceeds Rs. 20 lakhs but does not
exceed Rs. 1 crore.
 On receiving the complaint, the State Commission shall refer the
complaint to the party against whom the complaint is filed. If
required, the goods or a sample thereof, shall be sent for testing
in a laboratory. The State Commission shall pass an order after
considering the test report from the laboratory and hearing to the
party against whom the complaint is filed.
 The appeals against the orders of a District Forum can also be
filed before the State Commission.
 In case the aggrieved party is not satisfied with the order of the
State Commission, he can appeal before the National Commission
within 30 days of the passing of the order.

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National Commission

 The National Commission consists of a President and at least four

other members, one of whom should be a woman.
 All the members are appointed by the Central Government.
 A complaint can to be made to the National commission when the
value of the goods or services in question, alongwith the
compensation claimed, exceeds Rs. 1 crore.
 On receiving the complaint, the National Commission shall refer
the complaint to the party against whom the complaint is filed. If
required, the goods or a sample there of, shall be sent for testing
in a laboratory. The National Commisson shall pass an order after
considering the test report from the laboratory and hearing to the
party against whom the complaint is filed.
 The appeals against the orders of a State Commission can also be
filed before the National Commission and no further.
 An order passed by the National Commission in a matter of its
original jurisdiction is appealable before the Supreme Court if the
aggrieved party was not satisfied with the order of the National
Commission.

LATEST CBSE QUESTIONS

Question 1.
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.

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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.
(CBSE, Delhi 2017)

Answer:

1. The six directions that might have been issued by the court are
as follows:
Reliefs available to a consumer
o To remove the deficiency in service.
o To refund the charges paid for the service.
o To pay a reasonable amount of compensation for any loss or
injury suffered by the consumer due to the negligence of the
opposite party.
o To discontinue the unfair/restrictive trade practice and not to
repeat it in the future.
o 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:
o Social service
o Promoting health and hygiene

Question 2.
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. (CBSE, Sample Paper, 2017)
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 3.
Sirajuddin purchased a car for Rs. 15 lacs from an automobile company
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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.
(CBSE, Sample Paper, 2017)
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 4.
“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. (CBSE, Sample Paper,
2017)
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 5.
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
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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.
(CBSE, Delhi 2016)
Answer:
Right to be heard has been exercised by Manuj.

Question 6.
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. (CBSE, OD
2016)
Answer:
Right to seek redressal has been exercised by Suman.

Question 7.
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. (CBSE, Foreign 2016)
Answer:
Right to choose has been exercised by Manvendra.

Question 8.
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.

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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 (CBSE, OD 2016)

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. (CBSE, Delhi 2016)

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:
o 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.
o 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.

Question 9.
Aman, a degree holder in Entrepreneurship came to know about
Piplantri Village located in Rajasthan, where in 2006 an initiative was
started in which 111 trees are planted every time a girl child is born.
To keep termites away from the trees the villagers have planted 2.5
million Aloe Vera plants around the trees. This has turned the village
into an oasis, as the planting of trees led to higher water levels.
Aman decided to visit the village to start a business unit, for the
processing and marketing of Aloe Vera into juices, gels and other
products.
However, on visiting the village Aman found that the villagers were
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suffering exploitation at the hands of local merchants who were

engaged in unscrupulous, exploitative trade practices like hoarding
and black marketing of food products and also selling unsafe and
adulterated products to the villagers.
After looking at their plight, instead of a business organisation, he
decided to set up an organisation for the protection and promotion of
the consumer interest of the villagers.
State the functions that the organisation established by Aman will be
performing. (Any six points). (CBSE, Sample Paper 2015-16)
Answer:
Aman has set up an NGO or consumer organisation in the village for
the protection and promotion of the consumer interests.
The key functions highlighting the role of a consumer association are
listed below:

 Educating the general public about consumer rights by

conducting training programmes, conferences and workshops.
 Publishing periodicals and other publications to give knowledge
about consumer problems, legal reporting, reliefs available and
other matters of interest.
 Carrying out comparative testing of consumer products in
accredited laboratories to test relative qualities of competing
brands and publishing the test results for the benefit of
consumers.
 Encouraging consumers to strongly protest and take an action
against unscrupulous, exploitative and unfair trade practices of
sellers.
 Providing legal assistance to consumers by way of providing aid,
legal advice etc. in seeking legal remedy.
 Filing complaints in appropriate consumer courts on behalf of the
consumers. .

Question 10.
Himesh, after completing his graduation, started working with a
multinational company in Delhi. But due to ill health of his parents, he
had to go back to his village. There he noticed that the villagers were
literate but ignorant about their rights. Many vegetable vendors
were using stones as weights to sell their vegetables. Some
shopkeepers were selling food items without having the ‘FPO Mark’.
The villagers did not find anything wrong with these practices. So, to
create awareness among the villagers, Himesh decided to publish a
weekly journal ‘Jan Jagriti.’ State the right which Himesh has exercised

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by doing so. (CBSE, Sample Question Paper 2015)

Answer:
Right to consumer education has been exercised by Himesh.

Question 11.
On Sonika’s birthday, her mother gave her a pair of gold earrings. After
one month, Sonika observed that the earrings were losing their shine.
She checked the mark on the earrings and found that it was not a
proper Hallmark and her mother had been cheated by the shopkeeper.
So, she filed a complaint in the District Forum which rejected it. Not
satisfied by the decision of the district Forum, she was very much
disturbed and after two months, she decided to appeal further.
Can Sonika appeal against the decision of the district forum? Give
reason in support of your answer. (CBSE, Delhi 2015)
Answer:
No, Sonika will not be able to appeal further in the State commission.
This is because two months have already passed and the appeal had to
be filed within 30 days of the passing of the order by the District
Forum.

Question 12.
Himanshu purchased a new car from ‘Galaxy Motors’ for Rs. 25 lakh.
He was offered free insurance for the first year and three free servicing
to be availed after the car had covered 5,000 km, 10,000 km and
15,000 km, respectively. When Himanshu took the car for the first free
servicing, he was told that the car was not new and first service had
already been availed on this car. He felt cheated and filed a complaint
in the State Commission. Being not satisfied with the decision of the
State Commission, after two months he decided to file an appeal
against it.
Can Himanshu appeal against the decision of the State Commission?
Give reason in support of your answer. (CBSE, 2015)
Answer:
No, Himanshu will not be able to appeal further against the decision of
State Commission in the National Commission. This is because two
months have already passed and the appeal had to be filed within 30
days of the passing of the order by State Commission.

Question 13.
Palak went to a shopkeeper to buy a hair oil. The shopkeeper forced
her to buy a particular brand of hair-oil out of various available brands,
irrespective of the willingness of Palak. Which right of Palak, as a
consumer, has been violated? Name and explain the right.
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(CBSE, Delhi 2013)

Answer:
The Right to choose has been violated in the given case as Palak was
forced by the shopkeeper to buy a particular brand of hair oil.
According to the Right to Choose, the consumer has a right to choose
from a variety of products at competitive prices. Also, the marketers
should offer a wide variety of products to buyers.

Question 14.
Harsh asked for a bottle of mineral water from a shopkeeper. The
maximum retail price printed on the bottle was Rs. 12 only whereas
the shopkeeper was charging Rs. 35. In spite of many arguments, the
shopkeeper was not ready to sell the bottle for less than Rs. 35. Harsh
was in need of it and had no option except to buy. As an aware
consumer, name and explain the right which Harsh can exercise.
(CBSE, OD, Comptt. 2013)
Answer:
As an aware customer, Harsh can exercise his Right to be Heard. The
consumer has a right to be of a complaint and to be heard in case
he/she is dissatisfied with a product or a service.

Question 15.
Anita purchased a book from Satish Book Store. While reading the
book, she found that sixteen pages were missing. She approached the
seller of the book and complained about the missing pages. The seller
promised that if the publisher was ready to change the book he would
change the same. After a week, the seller informed Anita that the
publisher had refused to change the book.
Where can Anita file a complaint against the seller of the book? Give
reason in support of your answer. Also explain who is a consumer as
per “Consumer Protection Act 1986”. (CBSE, 2011)
Answer:
Since, the value of the goods or services in question, along with the
compensation claimed, does not exceed Rs. 20 lakhs she will file a
case in the District Forum.
A ‘consumer’ is generally understood as a person who uses or
consumes goods or avails of any service. A person who buys goods for
commercial purpose or resale will not be considered to be a consumer.

Question 16.
Prakhar purchased an ISI mark electric iron from Bharat Electricals.
While using it, he found that it was not working properly. He
approached the seller and complained about the same. The seller
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satisfies Prakhar by saying that he will ask the manufacturer to replace

the 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. (CBSE, Delhi 2011)
Answer:
No, Bharat Electricals will not be able to file a complaint under
Consumer Protection Act 1986 because according to this act a person
is not deemed to be a customer if he buys goods for resale or
commercial purpose.
Under the Consumer Protection Act 1986, a consumer is defined as:

 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 uses 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.
 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 avails of such
services for any commercial purposes.

Question 17.
Reena purchased one litre of pure desi ghee from a shopkeeper. After
using it, she had doubts that it was adulterated. She sent it for a
laboratory test which confirmed that the ghee was adulterated. State
any six reliefs available to Reena if she complains and the consumer
court is satisfied about the genuineness of the complaint. (CBSE,
Delhi 2011)
Answer:
The six reliefs available to Reena are listed below:

 To withdraw the hazardous goods from sale.

 To provide replacement for the defective product.
 To refund the price paid for the product, or 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
marketer.
 Not to offer hazardous goods for sale.

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 To issue corrective advertisement to neutralise the effect of a

misleading advertisement.

ADDITIONAL QUESTIONS

Question 1.
A few days back in Uttar Pradesh, an ATM of a nationalized bank in
Shahjahanpur dispensed counterfeit Rs. 2,000 notes. The victim Puneet
Gupta, who withdrew a total of Rs. 10,000, was shocked when he found
that one of the five notes he withdrew was a scanned copy, but the
bank refused to change it. They, in fact, even refused to acknowledge
that the note came out of their ATM. His friend Avneet who is banker
told him that as per the Reserve Bank directive issued in May 2012, no
bank can put back into circulation currency notes (of Rs. 100 and
higher denominations) received by them, without first processing them
for authenticity. Moreover he suggested to him to exercise a particular
right and ask the bank for evidence on the kind of steps being taken by
the bank to stop fake notes entering the ATM and also the number of
complaints that they have received so far from consumers about fake
notes coming out of their ATMs.
In context of the above case:

1. Identify and explain the right of consumer that Puneet Gupta has
been suggested to exercise by his friend in the above case.
2. List any two values being ignored by the bank.

Answer:

1. Puneet Gupta has been suggested to exercise Right to

information by his friend in the above case.
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 etc.
Moreover, as per law, it is mandatory for the marketers to
provide complete information about the product/service to
buyers.
2. The two values being ignored by the bank are:
o Responsibility
o Loyalty

Question 2.
‘Vastra Ltd.’ is engaged in the manufacturing of apparel. Over the

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years, it has became a popular brand due to its good product quality
and exclusive designing. The company plans to open its own retail
showrooms in metropolitan cities in India. In order to meet its financial
needs it has offered for subscription an IPO of Rs. 4 lakh equity shares
in the price band of Rs. 430 – Rs. 445 each. As per the guidelines of
SEBI, the company has provided a complete disclosure of the relevant
details in its prospectus.

1. Identify and explain the right of the consumer being fulfilled by

the directives of SEBI in the above mentioned case.
2. Briefly explain any two points highlighting the importance of
consumer protection from the point of view of the businessmen.

Answer:

1. The Right to information is being fulfilled by the directives of SEBI

in the above mentioned case.
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 etc.
Moreover, as per law, it is mandatory for the marketers to
provide complete information about the product/service to
buyers.
2. The importance of consumer protection from businessmen’s point
of view is outlined below:
o Long-term interest of business: In order to ensure long term
interest of business it is important that businessmen strive to
earn profits only through consumer satisfaction. This will not only
ensure the survival of business but also lead to its growth in the
future.
o Business uses society’s resources: Since a business employs
society’s resources to create offerings so they need to safeguard
the consumer’s interests.

Question 3.
HomeShop18 is an online and on-air retail and distribution venture of
the Network 18 Group, India. It is a part of the Networkl8 Media and
Investments Limited which is owned and operated by Reliance
Industries. Currently, [Link] comprises of more than 15
categories namely, Mobiles, Health & Beauty, Apparel, Jewellery, Home
& Kitchen, Household Appliances etc. to name a few. The company
offers a wide variety of goods under each of these categories.
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GENII INSTITUTE OF SCIENCE & COMMERCE

1. Identify and explain the relevant consumer right being promoted

by the company.
2. Also mention any two values being reflected through this
approach adopted by the company.

Answer:

1. The Right to Choose is being promoted by the company.

According to the Right to Choose, the consumer has a right to
choose from a variety of products at competitive prices. Also, the
marketers should offer a wide variety of products to buyers.
2. The two values being reflected through this approach adopted by
the company are increasing standard of living and technological
development .

Question 4.
In one of the cases, the Goa State Commission held that “The
Consumer Protection Act is not for entertaining or compensating
speculative transactions or losses”. It held that compensation cannot
be given under the Consumer Protection Act to those involved in sale
and purchase of shares, which are commercial transactions. The order
follows an appeal by a Mumbai-based stock broker India Infoline
Limited against an order of the Goa District Consumer Forum. Initially,
the judgement of the Goa District Consumer Forum had awarded
damages to Panaji- resident Vaman Nagesh who had lost money in
share trading through a stock broker India Infoline Limited.
In context of the above case:

1. Why do ‘commercial transactions’ not fall under the purview of

‘consumer’ under the Consumer Protection Act?
2. Why do you think that the above mentioned case was initially
filed in the Goa District Forum by Vaman Nagesh?
3. Where do you think Vaman Nagesh could have filed a further
appeal in case he was not satisfied with the judgement passed
about his case by the Goa State Commission?

Answer:

1. Under the Consumer Protection Act, a ‘consumer’ is generally

understood as a person who uses or consumes goods or avails of
any service. However, a person who buys goods for commercial
purpose or resale will not be considered to be a consumer.

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2. Presuming that the value of the securities, along with the

compensation claimed, did not exceed Rs. 20 lakhs, the above
mentioned case was initially filed in the Goa District Forum by
Vaman Nagesh.
3. If, Vaman Nagesh was not satisfied with the order of the State
Commission, he could have filed an appeal before the National
Commission within 30 days of the passing of the order.

Question 5.
After completing his education, Arman opened a small restaurant in a
posh market to earn his livelihood. In order to attract good clientele, he
decided to install two air conditioners in the restaurant. Since he didn’t
have sufficient funds to buy air conditioners of a good brand, he
bought two air conditioners from a local manufacturer in Janakpuri,
Delhi for Rs. 20,000 each. Later on, he found that the compressor of
one of the air conditioner was not working properly. Despite many
complaints, the defect was not rectified by the manufacturer. So, he
feels very disappointed about the issue and wants to take a legal
action against the
manufacturer to not only get compensation but also to save other
people from being duped by the local manufacturer.

1. Name the redressal agency to which he can approach to file

complaint against the local manufacturer.
2. State any two directions which the consumer court can issue to
the local manufacturer after being satisfied with the genuineness
of the complaint.
3. State any two values being ignored by this automobile company.

Answer:

1. He can approach the District Forum to file complaint against the

local manufacturer.
2. The two directions which the consumer court can issue to the
local manufacturer after being satisfied with the genuineness of
the complaint are as follows:
o To remove the defect in goods.
o To provide replacement for the defective product
3. The two values being ignored by the local manufacturer are:
o Honesty
o Concern for people.

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Question 6.
On her sister’s wedding, Radha decided to gift her gold earrings. When
she shared her plan with her husband, he showed her an article in the
daily national newspaper under the heading “Jago Grahak Jago.” The
campaign included details about the various aspects that people must
consider before buying any gold jewellery.

1. Why do you think campaigns like “Jago Grahak Jago” are inserted
in the newspaper?
2. Name the right of consumer being fulfilled through this initiative
of the government
3. State any three responsibilities that Radha must discharge as an
aware consumer while buying her sister’s wedding gift.

Answer:

1. The campaigns like “Jago Grahak Jago” are given in the

newspaper to make the consumers aware of the various
undesirable activities like unscrupulous, unfair trade practices etc
which are carried out by the marketers to exploit the buyers.
2. Right to Consumer Education is being fulfilled through this
initiative of the government.
3. The three responsibilities that Radha must discharge as an aware
consumer while buying her sister’s wedding gift are as follows:
o Buy only standardised goods and check for standardization mark
like Hallmark for gold jewellery .
o Assert herself to ensure that she gets a fair deal.
o Ask for a cash memo on purchase of goods or services.

Question 7.
In the year 2015, Under section 12(1D) of the Consumer Protection Act,
the Consumer Affairs Ministry had filed a suit in National Consumer
Disputes Redressal Commission (NCDRC)
against Nestle India, the manufacturer of Maggi noodles, seeking
about Rs. 640 crore in damages for alleged unfair trade practices, false
labelling and misleading advertisements.
In context of the above case:

1. Name any two other two parties besides government who can file
a case under Consumer Protection Act 1986.
2. Why has the government filed a suit in National Consumer
Disputes Redressal Commission (NCDRC) and at no other level of
three tier redressal system?
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Answer:

1. The two other two parties besides government who can file a
case under Consumer Protection Act 1986 are any consumer and
any registered consumers’ association.
2. The government filed a suit in National Consumer Disputes
Redressal Commission (NCDRC) and at no other level of the three
tier redressal system because a complaint has to be made to the
National Commission only when the value of the goods or
services in question, along with the compensation claimed,
exceeds ? 1 crore.

Question 8.
Good Health Ltd., a pharmaceuticals company, has introduced
mosquito repellent bands under the brand name ‘Jaddu’ in the wake of
outbreak of Dengue in various parts of the country. The product
attracted many people from all age groups, especially kids. However,
the company failed to provide adequate guidance for the users on the
label of the product in terms of time period of the effectiveness of the
repellent band once its seal is opened. Because of this ambiguity,
many buyers faced problems.
In context of the above case:

1. Identify and explain the consumer right which has been

overlooked by the company.
2. Name and explain any two functions of the important product
related aspect ignored by the company.

Answer:
The Right to information is being overlooked by the company in the
above mentioned case.

1. According to the Right to information, a consumer has the right to

get complete information about the product he/she intends to
buy including its contents, date of manufacture, date of expiry,
price, quantity, directions for use etc. Also, as per law, it is
mandatory for the marketers to provide complete information
about the product/ service to the buyers.
2. The important aspect related to the marketing of products which
has been ignored by the company is Labelling.
The two important functions performed by labelling are:
o Describes the product and specifies its contents: Labelling
provides information
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about the core function of the product i.e. how and why the
product is likely to be beneficial to the prospective buyers. It
educates them about the usage and precautions related to the
product. It also gives detailed information about the ingredients
of the product.
o 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.

Question 9.
Radheshyam moved from Muradabad to Mumbai to work as an artist in
television serials. On getting his first salary, he opened an account in a
nearby commercial bank and also opted for ATM facility under ATM
card. After a few months, he lost his ATM Card and lodged a request
with the bank for furnishing a duplicate card. Consequently, he was
allotted duplicate ATM Card Number but that card was not given to
him. After a week, he received a SMS message on his mobile stating
that sum of Rs. 10,000/- has been withdrawn from his account. Since
the duplicate ATM card was not given to him, he brought the debit
entry in the notice of the bank. The bank assured to repay that amount
to him within 15 days after investigating the issue. But, more than a
month has passed since then and despite his persistent efforts the
bank has not taken any action so far. So, he files a case against the
bank in the district forum. The consumer court can issue a notice to
the bank after being satisfied with the genuineness of the complaint
and directs the bank to repay Rs. 10,000 to Radheshyam along with a
compensation of Rs. 50,000.
Name the rights exercised by Radheshyam in the context of the above
case.
Answer:
The two rights exercised by Radheshyam in the context of the above
case are Right to be heard and Right to seek redressal.

Question 10.
Bharti Airtel Limited is an Indian global telecommunications services
company headquartered in New Delhi, India. It operates in 20 countries
across South Asia, Africa, and the Channel Islands. It provides GSM, 3G
and 4G LTE mobile services, fixed line broadband and voice services
depending upon the country of operation. It is the largest mobile
network operator in India and the third largest in the world with 325
million subscribers. Its portal displays the following information

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“Airtel Mobile Customer Care – Call 121, 24-hr Airtel customer service
number from your Airtel phone. In case you don’t get satisfactory
resolution of your query/complaint at the Airtel customer service
centre, you can get in touch with Airtel Nodal officers with your
complaint reference number and details of grievance.”
In context of the above case:

1. Identify and explain the right of the consumer being fulfilled by

the company in the above mentioned case.
2. Name the function of marketing being performed by the
company.
3. State any two values that the company wants to communicate to
the society.

Answer:

1. The right of the consumer being fulfilled by the company in the

above mentioned case is right to be heard.
2. The function of marketing being performed by the company is
customer support services.
3. The two values that the company wants to communicate to the
society are:
o Concern for consumers
o Respect for law.

Question 11.
Suryansh booked a flat through a private builder in Greater Noida,
Uttar Pradesh at the cost of ? 2 crores. As per the terms of the
contract, the builder promised to provide him with all the basic and
modern amenities such as continuous electric supply, CCTV Camera,
Club facility, good quality of water, good security etc. Although he was
given the possession of the flat in time, the builder did not provide all
the basic and common facilities which also included 3 tier security
having CCTV camera coverage for each floor. Suryansh kept
complaining to the builder after possession of the flat for non-
installation of CCTV camera and other common and basic amenities as
promised at the time of agreement, but the builder kept assuring him
that he will do the needful and he need not worry. After a month,
Suryansh had to travel abroad, so he left his home with his flat duly
locked. But on his return, he found that his flat has been robbed and
theft of ? 10,000 and Jewellery worth ? 10 Lac had taken place. He
complained to the builder that had CCTV cameras been installed, it
would have been a deterrent and the theft would not have been taken
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place. Also, CCTV would have ensured that no unwanted person would
have entered the building. When Suryansh discussed this incident with
his friend Sooraj , who runs a consumer association, he advised him to
file a case against the builder.
In context of the above case:

1. Name the right of consumer that Sooraj has advised Suryansh to

exercise.
2. State any three functions highlighting the role of a consumer
association.

Answer:

1. Sooraj has advised Suryansh to exercise Right to be heard.

2. The three functions highlighting the role of a consumer
association are listed below:
o Educating the general public about consumer rights.
o Conducting comparative testing of consumer products available
in the market.
o Filing complaints in appropriate consumer courts on behalf of the
consumers.

Question 12.
Gaurav purchased a pack of sweets for his son from a shop in the
nearby market. After consuming those sweets, the condition of his son
deteriorated and he had to be hospitalized. Later on through a
laboratory test, it was certified that the sweets were adulterated.

1. State any one precaution that he should have taken while

purchasing packed sweets.
2. Name the appropriate redressal agency that he can approach in
case he decides to file a case against the shopkeeper.
3. State any two values which are lacking in the shopkeeper.

Answer:

1. Gaurav should have checked for the quality assurance mark like
FPO /FSSAI on its label while purchasing the food product.
2. District Forum
3. The two values which are lacking in the shopkeeper are:
o Honesty
o Concern for others.

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Question 13.
Aryan went to purchase a pack of chocolate for his son from a shop in
the nearby market. Despite his preference to buy a pack of a particular
brand the shopkeeper forced him to buy the pack of chocolate of
another brand, by giving some odd justifications. After coming back
home, Gaurav was feeling very dissatisfied.

1. Identify and explain the right of the consumer being violated in

the above mentioned case.
2. Briefly explain any two points highlighting the importance of
consumer protection from the consumer’s point of view.

Answer:

1. The Right to choose has been violated in the given case as Aryan
was forced by the shopkeeper to buy a particular brand of
chocolate.
According to the Right to Choose, the consumer has a right to
choose from a variety of products at competitive prices. Also, the
marketers should offer a wide variety of products to buyers.
2. The importance of consumer protection from consumer’s point of
view is outlined below:
o Consumer Ignorance: In order to remove their ignorance, it is
essential that the consumers are made aware of their rights and
responsibilities.
o Widespread Exploitation of Consumers: In pursuit of higher
profits the businessmen are likely to resort to unfair trade
practices like charging higher price, selling adulterated products,
deficiency in services etc. Thus, there is a need to curb this kind
of widespread exploitation of consumers.

Question 14.
Geeta goes to a doctor to get herself treated for an injury in her hand.
The doctor being her distant relative charged her nothing for the
treatment. However, after a few days she develops an infection on the
wound because the doctor didn’t use sterilised instruments. Later on,
she is advised by the surgeon to get the infected finger removed.
Therefore, she is very angry with the doctor.
In context of the above case:
Can Geeta file a case against the doctor if she decides to take a legal
action? Why or why not? Give a reason in support of your answer.
Answer:

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No, Geeta cannot file a case against the doctor because she is not a
consumer because she didn’t pay for the services.

Question 15.
Abhishek bought a bottle of disinfectant spray from the nearby market.
It had a knob which was to be opened in a particular way. However,
there was no instruction on its package in this regard. Therefore, when
he tried to open the knob in a casual way, some of the spray flew in his
eyes. This affected his vision.
In context of the above case:

1. Name the rights of consumer being violated by the company.

2. State any two directions which the consumer court can issue to
the company after being satisfied with the genuineness of the
complaint.

Answer:

1. The two rights of consumer being violated in the above case are
Right to information and Right to safety.
2. The two directions which the consumer court can issue to the
company after being satisfied with the genuineness of the
complaint are as follows:
o Not to offer hazardous goods for sale.
o To pay a reasonable amount of compensation for any loss or
injury suffered by the consumer due to the negligence of the
marketer.

Question 16.
Ved purchased some medicines worth Rs. 1000 for his wife from a
chemist in the nearby market. But, he didn’t take the cash memo for it
from the chemist. After taking those medicines the condition of his wife
deteriorated and she had to be hospitalized. Later on through a
laboratory test it was certified that the medicines were spurious.

1. Can he file a case against the chemist? Justify your answer with
the help of a suitable reason.
2. State any two values which are lacking in the chemist.

Answer:

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1. No, he cannot a case against the chemist as he didn’t take the

cash memo for it from the chemist. A cash memo is the
conclusive proof of the purchase of goods.
2. The two values which are lacking in the chemist are:
o Humanity
o Trustworthiness.

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