Answer key

2019-2020
Class: 12 Worksheet Number: GR12/BST/CH12/AK
Subject: Business Studies Chapter: 12 – ConsumerProtection

Section A
Each question carries 1 mark:
1. What is meant by “Right to Choose” to a consumer?
Ans - The consumer has the freedom to choose from a variety of products at
competitive prices. (Implies in terms of quality, brand, prices, size of product etc.)
2. What is meant by “Right to be heard” to a company?
Ans - The consumer has the right to file a complaint and to be heard in case of
dissatisfaction with the good or service.
3. Why consumer protection is important for consumers? Give any one reason.
Ans - Consumer ignorance, unorganized consumers, widespread exploitation of
consumers (any1)
4. What is meant by a 'consumer' as per the provisions of Consumer Protection
Act, 1986?
Ans:As per the Consumer Protection Act, a consumer is defined as follows:
(i) Any individual who purchases any good for which he has paid or promised to pay;
partly paid and promised to pay the remaining part. That is, it includes all individuals
who use the goods with the approval of the seller. However, those individuals who
purchase the goods for the purpose of resale or for commercial purposes are not
considered as consumers.
(ii) Any individual who avails any service or hires a service for which he has paid or
promised to pay; partly paid and promised to pay the remaining part. That is, it
includes all individuals who have availed the service with the approval of the seller.
5. Give the constitution of the District Consumer Disputes Redressal Forum under
the Consumer Protection Act, 1986.
1 President and 2 other members, one of whom should be a woman.

Each question carries 3 marks :

6. Explain briefly the meaning of ‘consumer’ with reference to Consumer
protection Act, 1986 and the need for consumer protection.
 Under the consumer protection act, a consumer is defined as:
 Any person who buys any good for a consideration, which has been paid or
promised, or partly paid or promised, or under any scheme of deferred
service.
 Any person who hires or avails of any service for a consideration, which has
been paid or promised, or partly paid or promised, or under any scheme of
deferred service.

Each question carries 4 marks :

7. Explain in brief any four functions of consumer organizations in the area of
Consumer Protection.
 Ans. Functions of consumer organizations are:
 Educating the general public about consumer rights organizing training
programs, seminars and workshops.

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 Encouraging consumers to strongly protest and take 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.
 Filling complaints in appropriate consumer courts on behalf of the consumers.

Each question carries 6 marks:

8. Explain, in brief, any six responsibilities of Consumer to Safeguard their interest
Ans. They areas follows:
Consumer must exercise his Rights: Consumers have many rights with regard to
the goods and services. They must be aware of their rights while buying. These rights
are: right of safety, right to be informed, right to representation, right to seek
redressal, right to consumer education, etc.
Cautious Consumer/do not buy Blindly: The consumers should make full use of
their reason while buying things. They should not take the seller's words as the final
truth. In other words, while buying consumer must get information regarding the
quality, quantity, price, utility, etc. of goods and services.
Filing complaint for theredressal of genuine grievances: It is the responsibility of
the consumers to approach the officer concerned in case there is some complaint
about the goods purchased. A late complaint may find that the period of
guarantee/warrantee has lapsed. Sometimes, consumers ignore the deception
of businessmen. This tendency encourages corrupt business practices.
Consumer must be Quality Conscious /should not compromise on Quality:
Theconsumers should never compromise on the quality of the goods. Therefore, they
should not buy inferior stuff out of greed for cheaper prices. If the consumers
behave like this, hecannot be any protection for them from any quarter. It is
also the responsibility of the consumers only to buy goods with the ISI,
AGMARK, Woolmark, FPO, etc. printed on All these symbols are indicative of the
good quality of the goods.
Advertisements Often Exaggerate/Beware of False Advertisement: The
sellers inform the consumers about their things through the medium of
advertisement. The sellers exaggerate the quality of their goods through
advertisement. Therefore, it , is the responsibility of the consumers to recognize
the truth of the advertisement.
Do not forget to Get Receipt and Guarantee/Warranty Card: Oneshould always
get a receipt or bill for the things purchased. In case a guarantee/warranty card is also
offered by the seller, it should also be taken. In case, the goods purchased turn out
to be of inferiorquality or some defect appears and bothers the customers, these
documents will be of help in settling all kinds of disputes with the seller.
9. Explain any six rights of a consumer under the Consumer Protection
Act, 1986.
Ans. Under section-6 of Consumer Protection Act, consumer has the following
rights:
Right to Safety: It is the right to safety against such goods and services as are
hazardous to health, life and property of the consumer. For example, spurious and
sub-standard drugs.
Right to be Informed: Consumer has also the right that he should be provided all the
information on the basis of which he decides to buy goods or services. Such
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information relate to quality, purity, potency, standard', date of manufacture, method of
use, etc. of the commodity.
Right to Choose: Consumer has the full right to buy any good or service of his
choice from among the different goods or services available in the market. In other
words, no seller can influence his choice in an unfair manner.
Right to be Heard: Consumer has the right to file a complaint and to be heard in
case of dissatisfaction with the good or service. Due to this, many business firms
have set up their own consumer grievance cells.
Right to Consumer Education: Consumer education refers to educate the
consumer constantly with regard to their rights. In other words, consumers must be
aware of the rights they enjoy against the loss they suffer on account of goods and
services purchased by them.
Right to seek redressal: The consumer has the right to get relief in case the product
or service falls short of his expectations. He may seek redressal against any unfair
trade practices. Number of reliefs available to the consumers includes replacement of
the product, removal of defect in the product, compensation paid for any loss or
injury suffered by the consumer etc.
10. Explain, in brief, any six remedies available to consumers under
Consumer Protection Act, 1986.
Ans. Under this Act, remedies available to consumers are as follows:
Removal of Defects: If after proper testing the product proves to be defective
the-'remove its defects' order can be passed by concerned authority.
Replacement of Goods: Orders can be passed to replace the defective product by
new non-defective product of the same type.
Refund of Price: Orders can be passed to refund the price paid by the complaint
for the product.
Award of Compensation: If because of the negligence of the seller a consumer
suffers physical or any other loss, then compensation for that loss can be demanded
for.
Removal of Deficiency in Service: If there is any deficiency in delivery of
service then orders can be passed to remove that deficiency. For instance, if an
insurance company, makes unnecessary delay in giving final touch to the claim,
then under this Act orders can be passed to immediately finalize the claim.
Discontinuance of Unfair/Restrictive Trade Practice: If complaint is filed against
unfair/restrictive trade practice then under the Act that practice can be
banned with immediate effect. For instance, if any gas company makes it
compulsory for a consumer to buy gas stove with the gas connection then this
type of restrictive trade practice can be checked with immediate effect.
11. Giving any six points, explain the importance of consumer protection in
India.
From the Consumers' Point of view:
Ans:The importance of consumers' protection from the point of view of the
consumers can be made clear with the help of the following points:
Consumers' Ignorance: Generally, the consumers are not aware of their rights. It is
only because of this ignorance that they cannot raise their voice against their
exploitation rampart in the market. They bear this exploitation ungrudgingly thinking it
as a part of the market. Hence, they remain inactive in this respect. Therefore, it has
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become necessary in public interest that they should be educated about their rights so
that they become activated.
Unorganized Consumers: Consumers are unorganised and this fact alone
highlightsthe importance of consumers' protection. A single consumer raising his voice
against exploitation is not as effective as the voice of an organised consumers' body can
be. So far the consumers have not shown such an attitude that they should raise their
voice in an organised manner. Consumers' protection encourages the consumers to
organise themselves.
Widespread Exploitation of Consumers: These days’ consumers are being
exploited on a large scale. Following are some of the examples of their exploit.
Adulteration in consumers' products. Inferior quality of goods and services.
Misleading advertisement.
Consumers' protection is absolutely necessary in order to get rid of such exploitation.
B. From the Point of View of Business: Business needs consumers as much as
consumers need business. Therefore, business should also join hands in
protecting consumers' interest. Its importance is highlighted by the following facts
Long term interest of Business: Every business wants to enjoy long existence.
This is possible only when business firms provide absolute satisfaction to the
consumers. A firm that succeeds in satisfying the consumers, the consumers
themselves turn to suchfirm for buying their products time and again and they tell
others also about satisfaction. In this way, the number of customers for that firm
goes up and the firm continues to live for a long time. Paying attention to the
satisfaction of the consumers nothing but consumer protection.
Business Uses Society's Resources: Every business uses various resources,
material, machinery, human, capital, etc. All these resources are supplied by
society. From this point of view, it becomes the responsibility of business to
provide facilities to society. By doing this and through the medium of
consumer protection business gets an opportunity to discharge its responsibility
towards society.
Government Intervention: By ignoring consumers' interest, business is almost
inviting government intervention. Government intervention in defense of consumer’s
interest is certainly a setback for any firm. This is why every firm wants to avoid
situation. Such a situation can be avoided only if the consumers' interest is taken care
of. Doing so means taking care of consumers' protection.

Section B
Each question carries 1 mark:
12. Why is consumer protection necessary?
Ans - Consumer protection is necessary to protect and promote the interest of the
consumers.
Mention when as a consumer you are not in position to solve your grievances
13. under Consumer Protection Act.
Ans - In case of breach of contract.

14. What is the purpose of enacting Consumer Protection Act, 1986?

Ans - The consumer protection act 1986 seeks to protect and promote the interests of
consumers by safeguarding consumers against defective goods, deficient services,
unfair trade practices and other forms of exploitation.
15. Who can file a complaint under the Consumer Protection Act 1986?

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Ans - Any consumer, any registered consumers association, central government or
any state government, one or more consumers having same interest, a legal heir of a
deceased person. (any1)
16. Which Act provides protection to the consumers against the use of fraudulent
marks?
Ans - The trade marks act, 1999

17. Why should a consumer look for ISI mark on electrical goods?
Ans - ISI mark on electrical goods is a proof of standardized goods as they provide
quality assurance.
18. Why consumer protection is important for a businessman? Give any one reason.
Ans - Long-term interest of business, business uses society resources, social
responsibility, moral justification, government intervention (any 1)
19. Which Act of Consumer Protection provides for the formation of ‘Consumer
Protection Councils’ in every district and state of the country?
Ans - The consumer protection act, 1986
20. Which Act of consumer protection provides safety to consumers against
deficient services?
Ans. The consumer protection act, 1986
21. Which Act of consumer protection provides for the formation of Consumer
Protection Council’s in every district and state of the country?
The consumer protection act, 1986
22. 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 which Suman exercised.
Ans: "Right to seek Redressal" is the consumer right exercised by Suman.
23. Manvendra always went to a specific shop to buy all consumable and non-
consumable goods. In this shop variety of products of different brands were
displayed nicely and the sales person available also gave good sales presentation
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
where as there were many big brand shops situated near his residence having
consumable and non-consumable goods.
Annant asked Manvendra the reason of going to that particular shop.
Manvendra told that he was exercising one of his ‘Rights’ which he could not
exercise in near-by big brand shops.
State the consumer’s right which Manvendra had exercised.
Ans: Right to Choose had been exercised by Manvendra. This is because in the shop
variety of products of different brands were displayed nicely and Manvendra can
easily choose from the displayed products.

Each question carries 3 mark:

24. Explain the following rights of a consumer.
 Right to be heard
 Right to seek redressal
Right to be heard: The consumer has a right to file a complaint and to be heard in
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case of dissatisfaction with a good or service. It is because of this reason that many
enlightened business firms have set up their own consumer service and grievance
cells. Many consumer organizations are also working towards this direction and
helping consumers in redressal of their grievances.
Right to seek redressal: The consumer has a right to get relief in case the product or
service falls short of his expectations. The Consumer Protection Act provides a
number of reliefs to the consumers including replacement of the product, removal of
defect in the product, compensation paid for any loss or injury suffered by the
consumer, etc.
25. State any three functions performed by non-governmental organisations for
consumer protection.
Ans: The functions performed by Non- Governmental Organisations (NGOs) for
consumer protection are as follows.
i. Consumer Education: The NGOs and consumer organisations organise
various training programmes and workshops to educate the consumer
about their rights and responsibilities.
ii. Publishing Journals: In addition to the training programmes and seminars
they also spread awareness through journals and periodicals. These
journals and other publications provide knowledge about various
consumer problems, legal remedies available and other such matters.
iii. Testing Quality of the Products: They carry out the quality tests for
various products in laboratories and publish the results. Such results help
the consumers in making informed choices.
26. Explain the following ‘Rights’ of consumers
 Right to Safety
 Right to Choose
a) Right to Safety – The consumer has a right to be protected against goods and
services, which are hazardous to life and health. For instance, electrical appliances
which are manufactured with substandard products or do not confirm to the safety
norms which might cause serious injury.
b) Right to Choose – The consumer has the freedom to choose from a variety of
products at competitive prices.
27. State any three directions which can be issued by the consumer court to the
opposite party if it is satisfied about the genuineness of the complaint.
Ans: The three directions which can be issued by the consumer court to the opposite
party if it is satisfied about the genuineness of the complaint are:
1. Repair the defective goods or remove the deficiency in the service.
2. Replacement of the defective good with a new one.
3. Refund the price paid by the consumer for the good or the service.
Each question carries 4 marks :
28. Explain the importance of consumer protection from point of view of business.
A business may also lay emphasis on protecting the consumers and adequately
satisfying them. This is important because:
(i) Long-term interest of business – Enlightened businesses realizes that it is in their
long-term interest to satisfy their consumers. Satisfied consumers not only lead to
repeat sales but also provide good feedback to prospective customers.
(ii) Business uses society’s resources – Business organisations use resources, which
belong to the society.
(iii) Social responsibility – A business has social responsibilities towards various
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interest groups. They make money by selling goods and providing services to
customers.
(iv) Moral justification – It is the moral duty of any business to take care of
consumer’s interest and avoid any form of their exploitation.
29. Explain any two points of importance of consumer protection from point of view
of business and any two points from the point of view of consumers.
Ans. From Consumers’ point of view
The importance of consumer protection from the consumers’ point of view can be
understood from the following points:
(i) Consumer Ignorance: In the light of widespread ignorance of consumers about
their rights andreliefs available to them, it becomes necessary to educate them about
the same so as to achieve consumer awareness.
(ii) Unorganised Consumers: Consumers need to be organised in the form of
consumer organisations which would take care of their interests. Though, in India, we
do have consumer organisations which are working in this direction, adequate
protection is required to be given to consumers till these organisations become
powerful enough to protect and promote the interests of consumers.
From the point of view of Business
A business must also lay emphasis on protecting the consumers and adequately
satisfying them. This is important because of the following reasons:
(i) Long-term Interest of Business: Enlightened businesses realize that itis in their
long-term interest to satisfytheir customers. Satisfied customersnot only lead to
repeat sales but alsoprovide good feedback to prospective customers and thus, help in
increasing the customer-base ofbusiness. Thus, business firms should aim at long-
term profit maximization through customer satisfaction.
(ii) Business uses Society’s Resources: Business organisations useresources which
belong to the [Link], thus, have a responsibility tosupply such products and
render suchservices which are in public interestand would not impair public
confidencein them.
(iii) Social Responsibility: A business has social responsibilities towards various
interest groups. Business organisations make money by selling goods and providing
services to consumers. Thus, consumers form an important group among the many
stakeholders of business and like other stakeholders, their interest has to be well
taken care of.
30. Explain any four ways and means of consumer protection followed in India.
Ans. Main means of consumer protection are as under:
i. Self-Regulation by Business: Every firm insists to have a strong
consumer base which means that more and still more people should buy
their products. This is possible only when the consumers are fully satisfied
with the products of the firm. With this purpose in view the firms ban all
types of undesirable activities that can be harmful to the consumers. In
addition to this consumer service, a grievance cell is also established to
handle consumers' problems. In this way, business regulates itself and acts to
protect consumers' interests.
ii. Business Associations: Business associations prepare a code of
conduct for businessmen. It is laid down in the code of conduct as to how
businessmen are expected to behave with the consumers. For example, the
Federation of Indian Chambers of Commerce and Industries (FICCI) and
the Confederation of Indian Industries (CII) have proposed their code of
conduct which governs the attitude of their members towards consumers.
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iii. Consumer Awareness: As an important means of consumer protection,
consumer should protect himself. He should be alert in the matter of his
rights. Alert consumer alone can demand his rights from the sellers. Thus,
the consumer himself must know his rights and raise voice against unfair
practices of the sellers.
iv. Government: Interests of the Consumers are protected by the
government by enacting various legislations. Consumer Protection Act,
1986 is an important legislation by the government to provide protection
to the affected consumers. Under the provisions of the Act, Consumer
Protection Councils have been set up by the Central and State Governments
for the protection of the rights of consumers. On the recommendation of the
amendment of the Consumer Protection Act, 2000 these councils are also to
be constituted at district level by the State Governments. Under the Act,
there is a provision of Three-tier Judicial Machinery to redress the
grievances of the consumers in a simple, speedy and inexpensive way;
namely,
1. District Forum at district level.
2. State Commission at state level.
3. National Commission at national level.

Each question carries 5 marks:

31. Explain the variousremedies available to the consumers for redressing
theirgrievances under theConsumer Protection Act, 1986.
Ans. The Consumer Protection Act has provided three tier judicial machinery
for redressing: - grievances of consumers:
District Forum: According to Consumer Protection Act, state government can set
up COE or more district forum in each district. Main features of district forum are as
under:
 There are three members including one presiding officer. Of these
one must be a member. They are appointed by the state government.
The presiding officer must H the qualifications of a District Judge.
 Forum hears disputes involving a sum upto Rs. 1crore.
 If neither party is satisfied with the judgement of the District Forum,
it can file application against it with the state commission within 45
day.
State Commission: One state commission is appointed by the state government in
each state. Its main characteristics are as follows:

 It consists of a President and atleast two members, one of whom should be a

woman. They are appointed by the State Govt.
 State commission redresses grievances involving a sum exceeds Rs 1 crores
and uptoRs10 crore.
 If either of the party is not satisfied with the decision of the state commission,
can file an appeal before the National Commission within 30 days.
National Commission: It is appointed by the central government. Its main
characteristics are as under:
 It consists of a President and at least four other members, one of whom should
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be a woman. They are appointed by the Central Government.
 It has the jurisdiction to hear complaints involving a sum exceeding Rs 10
crore.
 If any party is not satisfied with the decision of the National Commission, it
can file an appeal with the Supreme Court within 30 days.

32. What precautions should a consumer take while buying a product or service?
Explain.
Ans.
1) Be aware about various goods and services available in the market so that an
intelligence and wise choice can be made
2) Buy only standardized goods as they provide quality assurance. Thus, look for ISI
mark on electrical goods, FPO mark on food products, Hallmark on jewelry etc.
3) Learn about the risks associated with products and services, follow manufacturer’s
instructions and use the products safely.
4) Read labels carefully so as to have information about prices, net weight,
manufacturing and expiry dates, etc.
5) Assert himself to ensure that he gets a fair deal.
6) Be honest in dealings. Choose only from legal goods and services and discourage
unscrupulous practices like black marketing, hoarding etc.
7) Ask for a cash memo on purchase of goods or services. This would serve as a
proof of the purchase made.
8) Respect the environment. Avoid waste, littering and contributing to pollution.

33. State any six functions performed by consumer organization working in the
field of consumer protection.
OR
Non-Government Organizations perform several functions for the protection
and promotion of interests of consumers. State any six functions performed by
them.
Ans. These consumer organisations perform the following functions:
Accelerating Consumer Awareness/Educating Consumers: The first priority of
consumer organisation is to accelerate consumer awareness towards their rights. To
accomplish this task following efforts are made:
To publish brochures, journals and monographs.
To arrange conferences, seminars and workshops.
Collecting Data on Different Products and Testing them: These organisations
collect samples of different products from time to time and test them. After that the results
of tests are declared to public. In this way, the organisation provides prior information to
consumers about the authenticity of product and protects them.
Filing Suit on behalf of Consumers: Whenever a consumer fails to raise his voice
of protection regarding his complaints, these consumers' organisations come to his
rescue and file a case in the court. They also run voluntary complaint centres for the
guidance of consumer
Helping Educational Institutions: These organisations tell the educational
institutions the way to prepare courses of study keeping in view the interests of
the consumers. They stress the fact that a special chapter on consumers' interest
should always be added to the courses on general study.

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Promoting network of Consumer Associations: Consumer organisations are trying
to grow their numbers. They want to cover all regions so that consumers of all
regions are benefited by their services.
Extending Support to Government: Consumer organisations by informing
government agencies about adulteration, artificiality, inferior quality products and
other such evils helps government. This helps government to conduct proceedings on
time.
34. 'RO Youth Club' 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 RO
Youth Club members decided to clean the premises. During their cleanliness
drive, they realized that the Old Age Home also required pest control. But some
of the inmates of the Old Age Home were reluctant for it because they believed
that the pest control may create health problems for them. RO Youth Club,
therefore, decided to provide ethical, safe and odourless pest control. They
showed to the inmates of the 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. The
effect of the pest control started wearing off after a fortnight. RO Youth Club
contacted the pest control company which kept on postponing their visit. After
waiting for a month, RO Youth Club field a case in the consumer court.
The consumer court was satisfied about the genuineness of the complaint and
issued necessary directions to the pest control company.
(a) State any six directions that might have been issued by the court.
(b) Identify any two values that are being communicated by RO Youth Club to
the society.
(a) The court may direct to
(i) Repair the defective goods or remove the deficiency in service.
(ii) Replacement of the defective good with a new one.
(iii) Refund the price that was paid by the consumer for the good or service.
(iv) Payment of compensation in cash for the loss or injury suffered.
(v) Removal of misleading advertisement and issue of a correct advertisement
henceforth.
(vi) Payment of an appropriate amount (not less than 5% of the good in question) to
be credited to the Consumer Welfare Fund.

(b) Values involved

(i) Promoting cleanliness and hygiene
(ii) Fulfilling social responsibility

Section C
Each question carries 1 mark:
35. Ahmed wants to buy an iron. As an aware customer, how can he be sure about
the quality of iron?
Ans - By the ISI mark on the iron
36. 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
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vegetables. Some shopkeepers were selling food items without having ‘FPO
mark’. Villagers did not find anything wrong with these practices. So to create
awareness among villagers Himesh decided to publish a weekly Journal ‘Jan
Jagriti’. State the ‘Right’ whichHimesh has exercised by doing so.
Ans. Right to consumer education.
37. Manuj bought a packet of chips from a local shopkeeper and found that the
ingredients given on the label were not legible. He complained about it to the
company. The company sent a written apology stating that they will make sure
that existing packets are withdrawn from the market and new packets with
legible labels are soon made available.
State the consumer right which Manuj exercised.
Ans: Manuj exercised ‘Right to be informed’
Explanation: In this scenario, Manuj could not see the ingredients used in the chips as
they were not legible. Since, a consumer has the right to be completely informed
regarding the quality, quantity, price, ingredients, weight, etc., of goods and services,
he exercised this right.
38. 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 hospitalized. Due to doctors 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.
Right to safety
39. 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 - By the FPO mark on the packet of juice.
40. ‘Consumer has a right to acquire knowledge and to be a well-informed
consumer throughout life.’ Which consumer right does it indicate?
Ans - Right to consumer education.
41. If Mr. A is not satisfied with the order of the District Forum, Where can he
appeal?
Ans - State Forum
42. Name the new approach of Marketing replacing earlier one called ‘Caveat
Emptor’.
Ans - Caveat Venditor
43. Name the apex institution under consumer protection Act, 1986.
Ans - National Commission
44. What is AGMARK?
Ans - It is the quality mark provided by agriculture produce act,1937
45. Name any two organizations, which provide certification of standardization in
India.
Ans - AGMARK and the Bureau of Indian Standards Act, 1986
46. Name the quality certification work used in case of food products.
Ans – FPO
47. Which Act has replaced the Trade & Merchandise Marks Act, 1968?
Ans - The trademarks act, 1999
48. Himanshu purchased a new car from “Galaxy motors’ for Rs, 20crore. He was
offered free insurance for the first year and three free servicing to be availed
after the car had covered 5000 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
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first service had already been availed on this car. He felt cheated and filed a
complaint in 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.
Ans. No Himanshu cannot file a case against the decision of the state commission.
This is because an appeal can be filed against the decision of state commission only
within 30 days of passing of the judgement.
In a given situation, Himanshu decides to file an appeal after 2 months. Thus, now an
appeal cannot be filed by him.
49. Sirajuddin purchased a car for `15 lacs from an automobile company and found
that its airbags were defective. After many complaints with the company that
went unheard, he filed a case in the District Forum. He was not satisfied with the
orders of the District Forum. He then appealed before the State Commission
and on being dissatisfied with the orders of State Commission, he appealed
before the National Commission. Sirajuddin was not satisfied with the orders of
National Commission. Suggest him the highest authority where he could appeal
against the decision of the National Commission.
He cannot appeal to any other higher authority as 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 Rs.1 crore are appealable
before Supreme Court.

50. Under the consumer Protection Act, 1986, there is a________ quasi judicial
consumer dispute redressal machinery for solving the complaints of the consumers.
a. Two-tier b. Five-tier
c. Three-tier d. Four-tier
51. In the modern competitive market, consumer is regarded as the ________ of the
market.
a. King b. Agent
c. Superintendent d. All of these
52. A District Forum can entertain the claims up to Rs ________
a. 10 lakh b. 20 lakh
c. 1 crore d. 30 lakh
53. State Consumer Dispute Redressal Commission is popularly known as ________.
a. National Commission b. State Commission
c. District Forum d. None of these
54. The President of State Commission is ________.
a. District Court Judge b. Supreme Court Judge
c. High Court Judge d.
55. Amendments were introduced to Consumer Protection Act in the year 1993 and
________.
a. 1998 b. 2000
c. 2002 d. 2003
56. Any person who does not agree with the decision of State Commission can appeal to
the ________.

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a. Supreme Court b. High Court
c. National Commission d. Lok Adalat
57. Right to ________ restricts monopolistic tendencies in the market.
a. Information b. Choose
c. Safety d. Consumer education
58. The Government has established ________ to settle the consumer disputes by
compromise.
a. Lok Adalat b. District Forum
c. Supreme Court d. High Court
59. National Commission has ________ members in addition to the president
a. 2 b. 3
c. 4 d. 5
Each question carries 3 marks :
60. I saw an advertisement in the newspaper regarding a domestic iron and ordered
for the purchase of the same to the shopkeeper. What will be my responsibilities
as a customer so that the shopkeeper should not exploit me? State any four such
responsibilities.
Ans. As a consumer we must:
 For an ISI mark on the iron. If it contains an ISI mark it means that it has
passed good quality controls and is fit for use.
 Ask for a cash memo on its purchase. This will serve as a proof of the
purchase made.
 Learn about the risks associated with d product.
 Assert ourselves to ensure that we get a fair deal.
61. “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.
(a) State three points that highlight the need for consumer protection as
discussed in “Grahak Shakti’s workshop.
Ans.
(i) Widespread exploitation of consumers.
(ii) Unorganized consumers.
(iii) Social responsibility.

62. Sumit purchased an ISI marked washing machine of a famous brand 'MG' from
TG Electronics Ltd. The shopkeeper asked him to wait for two days for
installation of the machine. His friend, Vivek, was very fund of experimenting
with new electronic products. He told Sumit that there is no need to wait for the
company's representative to install the machine and that he could do it. So, both
of them installed the machine without following the manufacturer's instructions.
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Initially, the machine worked effectively and the wash was good. But after two
days, the machine started stopping in between the wash cycle. Sumit and Vivek
tried their best to start the machine but failed in their efforts. Sumit, therefore,
approached TG Electronics Ltd., which refused to provide any service on the
plea that the installation of the machine was not done by the company.

(a) State the responsibility which Sumit had to fulfil as an aware consumer
to get the services of the company.
(b) Explain briefly any two rights which Sumit could have exercised had he
fulfilled his responsibility identified in part (a).

a. As an aware consumer, the responsibility that Sumit should have followed is ‘learn
about the risks’
b. If Sumit had fulfilled his responsibility, then he could have enjoyed the following
rights:
1. Right to be Heard: Under this right, a consumer has the right to file a complaint
under appropriate forums established by the government, in case of any grievance or
dissatisfaction.
2. Right to Seek Redressal: Under this right, a consumer has the right to seek
redressal and compensation in case of any exploitation. The Consumer Protection Act
provides for compensation in various forms such as replacement of product, cash
compensation and repair/removal of defects, among others.

Each question carries 5 marks :

63. Reena purchased one liter of pure Desi Ghee from a shopkeeper. After using it
she had a doubt. That it is adulterated. She sent it for a laboratory test, which
confirmed that the Ghee is adulterated. State any six reliefs available to Reena,
if she complains and the Consumer Court is satisfied about the genuineness of
the complaint.
Ans. Since the consumer court is satisfied about the genuineness of the complaint, it
can issue one or more of the following directions to the opposite party:
 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 charges paid for a 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 in appropriate circumstances.
 To discontinue the unfair/restrictive trade practice and not to repeat it in the
future
64. Suman wanted to purchase a sandwich toaster. She checked about the various
sandwich toasters available online and compared the prices so that an intelligent and
wise choice could be made.
Then she went to a nearby market to buy the sandwich toaster. Being an informed
consumer, she looked for the correct standardization mark. The shopkeeper showed
her different toasters but was quoting higher price than the price she had checked
online. After negotiating with the shopkeeper, she was able to bring the price down.
As a responsible consumer, she asked for a cash memo against the amount paid for
the product and took the toaster home. On opening the package, she found an
instruction booklet which she read carefully. Then she followed all instructions step
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by step and made nicely toasted paneer sandwiches for her family.
(a) State the consumer responsibilities, which have been discharged by Suman
besides asking for a cash memo.
(b) Explain the two rights being discussed in the above ease.
Ans. Consumer responsibilities, which have been discharged by Suman besides
asking a cash memo: (Any three)
(i) She was aware about various goods and services available the market and made a
wise choice.
(ii) She bought standardization provides quality assurance.
(iii) She learnt about the associated with product and followed manufacturer's
instructions
(iv) She sorted herself to get a fair deal.
(b) Rights discussed in the case above are:
(i) Right to choose
(ii) Right to be informed
(iii) Right to safety.

Section D
Each question carries 4 marks:
65. Under the Consumer Protection Act, every consumer has a right to be protected
against goods and services which are hazardous to life and health. Alpha Ltd.
manufactures and sells substandard refrigerators. As these appliances did not
confirm to the safety norms and a mark assuring quality specification was
missing. Cases were noticed where these substandard refrigerators had caused
serious injury to many consumers. Suggest any two precautions to be taken by
the consumer while purchasing the refrigerator. Which values do you find
disturbing in the above paragraph?
Ans: Social responsibility: Goods which are hazardous should not to be provided to
the consumers.
Honesty – By not providing the complete information about the product to the
consumers.
Safety.
66. Prakash purchased an ISI Mark electric induction stove from ‘Rama electrical.
While using he found that it was not working properly. He approached the seller
and complained for the same. The seller satisfies Prakash by saying that he will
ask the manufacturer to replace this induction stove.
Name the consumer right Prakash exercised in the above situation.
Name the value which is followed in the above case.
Ans. Honesty, Respect, .Loyalty, Faithfulness, Trust.

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