Chapter consumer-protection: Consumer Protection Short Questions | business studies Class 12 CBSE

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Chapter consumer-protection: Consumer Protection Short Questions | business studies Class 12 CBSE | ByteNotes.in

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Question 1

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Why is consumer protection considered important from the business point of view?

It is in the long-term interest of business because satisfied customers lead to repeat sales and positive word-of-mouth, helping increase customer base.
Businesses use society's resources and hence have a responsibility to supply products and services that are in public interest and do not impair public confidence.
Ignoring consumer interests invites government intervention, which can tarnish a company's image; voluntary ethical practices help businesses avoid such interference.

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Question 2

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What is meant by 'caveat emptor' and how has the market shifted from this concept?

Caveat emptor is a Latin phrase meaning 'let the buyer beware'; it represented the earlier seller's market where the buyer was solely responsible for evaluating the quality of goods before purchase.
The market has now shifted to caveat venditor, meaning 'let the seller beware,' where the seller is held responsible for the quality, safety, and fairness of goods and services offered.
In the current free market economy, the consumer is regarded as the king, and consumer protection laws like the Consumer Protection Act 2019 enforce this shift by empowering consumers legally.

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Question 3

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Who qualifies as a 'consumer' under the Consumer Protection Act 2019?

A consumer is a person who buys goods or avails services for a consideration that has been paid, promised, or partly paid and partly promised, including under a deferred payment scheme.
It includes any user of such goods or beneficiary of services with the approval of the buyer and covers both offline and online transactions including teleshopping, direct selling, and multilevel marketing.
However, a person who obtains goods or avails services for resale or commercial purposes is not treated as a consumer and falls outside the scope of the Act.

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Question 4

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Explain the Right to Safety available to consumers under the Consumer Protection Act.

The Right to Safety gives a consumer the right to be protected against goods and services that are hazardous to life, health, and property.
For example, electrical appliances manufactured with substandard materials or those not conforming to safety norms might cause serious injury to consumers.
Consumers are therefore educated to use ISI-marked electrical appliances, as the ISI mark assures that the product meets prescribed quality and safety specifications.

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Question 5

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Distinguish between 'defect in goods' and 'deficiency in services' as defined under the Consumer Protection Act 2019.

A defect refers to any fault, imperfection, shortcoming or inadequacy in the quality, nature, and manner of performance in relation to goods or a product.
A deficiency refers to any fault, imperfection, shortcoming or inadequacy in quality, nature, and manner of performance in relation to any service, and includes acts of negligence, omission, commission, or withholding of relevant information.
The key difference is that defect applies to tangible goods, whereas deficiency applies to services; both can result in loss or injury to the consumer and entitle them to seek redressal.

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Question 6

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What is the jurisdiction of the District Commission under the Consumer Protection Rules 2021?

The District Commission has jurisdiction to entertain complaints where the value of goods or services paid as consideration does not exceed fifty lakh rupees.
If at any stage it appears that elements of settlement exist, the District Commission may direct parties toward mediation within five days; if mediation fails, the commission proceeds with the complaint.
Any party dissatisfied with the order of the District Commission may appeal to the State Commission on grounds of fact or law within forty-five days of the order.

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Question 7

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State any four reliefs available to consumers under the Consumer Protection Act 2019.

The consumer court can order removal of the defect in goods or deficiency in services, and replacement of the defective product with a new one free from any defect.
It can also order a refund of the price paid for the product or charges paid for the service, along with payment of reasonable compensation for any loss or injury suffered.
Additionally, the court can order payment of punitive damages in appropriate circumstances and discontinuation of unfair or restrictive trade practices to prevent their repetition.

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Question 8

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What is the Right to be Heard and how do businesses facilitate it?

The Right to be Heard gives consumers the right to file a complaint and to be heard in case of dissatisfaction with a good or a service.
Many enlightened business firms have set up their own consumer service and grievance cells specifically to provide a platform for consumers to register and resolve their complaints.
Many consumer organisations are also working in this direction, helping consumers in the redressal of their grievances against sellers and service providers.

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Question 9

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What is 'product liability' as defined under the Consumer Protection Act 2019?

Product liability is the responsibility of a product manufacturer or seller of any product or service to compensate for any harm caused to a consumer by a defective product manufactured or sold.
It also covers deficiency in services, meaning that service providers are equally liable to compensate consumers for harm caused due to inadequate or negligent services.
This provision strengthens consumer protection by making manufacturers and sellers directly accountable for the quality and safety of their products and services.

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Question 10

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Explain the responsibility of a consumer to purchase only standardised goods.

A consumer should buy only standardised goods as they provide quality assurance, ensuring that the products meet prescribed safety and quality standards.
While purchasing goods, consumers should look for quality marks such as ISI mark on electrical goods, FPO mark on food products, Hallmark on jewellery, and AGMARK on agricultural produce.
Buying standardised goods not only protects the consumer from inferior or hazardous products but also encourages businesses to maintain quality standards and discourages the production of sub-standard goods.

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Question 11

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How does the Right to Consumer Education empower consumers?

The Right to Consumer Education gives consumers the right to acquire knowledge and to be well-informed throughout life about products, services, and the marketplace.
An educated consumer is aware of his rights and the reliefs available to him, enabling him to take appropriate action in case a product or service falls short of expectations.
Consumer organisations and enlightened businesses contribute actively to this right by conducting training programmes, publishing informational materials, and running awareness campaigns like Jago Grahak Jago.

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Question 12

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What is the role of FICCI and CII in consumer protection?

FICCI (Federation of Indian Chambers of Commerce and Industry) and CII (Confederation of Indian Industries) are prominent business associations in India.
These associations have laid down their own codes of conduct which provide guidelines to their member firms in their dealings with customers, promoting ethical business practices.
By enforcing these codes among members, they act as a means of self-regulation by business, helping protect consumer interests without requiring direct government intervention.

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Question 13

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Explain the responsibility of a consumer to file a complaint even when a small amount is involved.

A consumer should file a complaint in an appropriate consumer forum in case of any shortcoming in the quality of goods purchased or services availed.
Importantly, a consumer should not fail to take action even when the amount involved is small, as every act of exploitation — however minor — needs to be challenged to deter unfair trade practices.
Filing complaints not only helps the individual consumer get redressal but also creates a broader accountability mechanism that discourages sellers from engaging in unscrupulous practices against any consumer.

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Chapter sections

Chapter consumer-protection: Consumer Protection | Short Questions

Why is consumer protection considered important from the business point of view?

What is meant by 'caveat emptor' and how has the market shifted from this concept?

Who qualifies as a 'consumer' under the Consumer Protection Act 2019?

Explain the Right to Safety available to consumers under the Consumer Protection Act.

Distinguish between 'defect in goods' and 'deficiency in services' as defined under the Consumer Protection Act 2019.

What is the jurisdiction of the District Commission under the Consumer Protection Rules 2021?

State any four reliefs available to consumers under the Consumer Protection Act 2019.

What is the Right to be Heard and how do businesses facilitate it?

What is 'product liability' as defined under the Consumer Protection Act 2019?

Explain the responsibility of a consumer to purchase only standardised goods.

How does the Right to Consumer Education empower consumers?

What is the role of FICCI and CII in consumer protection?

Explain the responsibility of a consumer to file a complaint even when a small amount is involved.

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