B USINESS ENVIRONMENT ASSIGNMENT

Amrita Kumari(Roll No. 05)

1. Consumer is king. Discuss with reference to the CPA 1986 A consumer is a person who buys good for a [Link] of us do not know our rights as a consumer and often hesitate to complaint or even stand up to unfair practices. It is time that we indulge ourselves and motivate others to do the same. Nowadays if consumers are made aware then a quick action could be taken against any injustice done to them. Consumer Protection Act, 1986 provides three tier Courts for the adjudication of Consumer Disputes. The lowest level courts are constituted at District level which are called District Courts. Above them State level Consumer Courts are constituted which are called State Commission and on National level there is National Commission The earlier principle of Caveat Emptor or Let the buyer beware which was prevalent has given way to the principle of Consumer is King. The origins of this principle lie in the fact that in todays mass production economy where there is little contact between the producer and consumer, often sellers make exaggerated claims and advertisements which they do not intend to fulfill. The onset on intense competition also made producers aware of the benefits of customer satisfaction and hence by and large, the principle of consumer is king is now accepted. The Consumer Protection Act, 1986 was enacted to provide a simpler and quicker access to redress of consumer grievances. The Act for the first time introduced the concept of consumer and conferred express additional rights on him. It is interesting to note that the Act doesnt seek to protect every consumer within the literal meaning of the term. The protection is meant for the person who fits in the definition of consumer given by the Act. This Act has provided machinery whereby consumers can file their complaints which will be entertained by the Consumer Forums with special powers so that action can be taken against erring suppliers and the possible compensation may be awarded to consumer for the hardships he has undergone. Consumer Protection Act, 1986 seeks to promote and protects the interest of consumers against deficiencies and defects in goods or services. It also seeks to secure the rights of a consumer against unfair or restrictive trade practices, which may be practiced by manufacturers and traders. This Act has provided machinery whereby consumers can file their complaints which will be entertained by the Consumer Forums with special powers so that action can be taken against erring suppliers and the possible compensation may be awarded to consumer for the hardships he has undergone. The consumer under this law is not required to deposit huge court fees, which earlier used to deter consumers from approaching the Courts. The rigors of court procedures have been dispensed with and replaced with simple procedures as compared to the normal courts, which helps in quicker redressal of grievances. The provisions of the Act are compensatory in nature. The Act applies to all goods and services unless specifically exempted by the Central Government. It covers all the sectors whether private, public or cooperative. The provisions of the Act are compensatory in nature. The provisions of this Act are in addition to and not in derogation of the provisions of any other law for the time being in force. The consumer himself need not necessarily file complaint. Any recognized consumers association can espouse his cause. Where a large of consumers has a similar complaint, one or more can file a complaint on behalf of all. Even the Central Government or State Government can act on his/their behalf.

BUSINESS ENVIRONMENT ASSIGNMENT

[Link] FEMA replaces FERA. Discuss

Situation

Foreign exchange reserves positions was not satisfactory for that stringent controls were required on the use of foreign exchange Need to take permission of RBI in connection with remittances involving external trade

With the improvement in foreign exchange reserves such stringent controls are not required now.

Permission

No need for seeking the permission of RBI in connection with remittances involving external trade except section3 relates to dealing in foreign exchange Section 5, it removes all the restrictions on drawals of foreign exchange for the papoose of current account transactions Violations of FEMA treated as civil offence removes the threat of imprisonment compared their illegal acts by paying a fine (not too high)

Restrictions

These restrictions on drawals of foreign exchange for the purpose current account transactions Violations of FERA was treated as criminal offence and burden of proof was on the guilty

Violations of Rules

FERA was established in 1983 while FEMA came into effect in 2000. FERA contained 81 sections (some were deleted in the 1993 amendment of the Act) of which 32 sections related to operational part and the rest covered penal provisions, authority and powers of Enforcement Directorate, etc. FEMA contains 49 sections of which 12 sections cover operational part and the rest contravention, penalties, adjudication, appeals, enforcement directorate, etc. What was a full section under FERA seems to have been reduced to a sub-clause under FEMA in some cases. The major difference between FERA and FEMA is in their aims like FERA is to prevent the use of foreign trade and FEMA is to facilitate trade for the growth of the economy.
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