12th OCM Chapter 7 Exercise (Consumer Protection) Maharashtra Board – Free Resource

12th OCM Chapter 7 Exercise

Chapter 7 – Consumer Protection

Q.1 (A) Select the correct option and rewrite the sentences.

1. In India, the consumer protection act was initiated in the year _____.
a) 1947
b) 1989
c) 1986

2. The President of District Commission is a _____.
a) District Judge
b) High Court Judge
c) Supreme Court Judge

3. The main objective of the consumer organization is to protect the interest of the _____.
a) Consumer
b) trader
c) producer

4. _____ is the highest authority to settle the consumer dispute under Act.
a) State Commission
b) National Commission
c) District Commission

5. The Government has established _____ to settle consumer disputes by compromise.
a) District Commission
b) Lok Adalat
c) Consumer organization

6. National Commission has _____ members.
a) 2
b) 3
c) 4

7. District Commission entertains complaints of consumers for compensation which is less than _____.
a) one crore
b) ten lacs
c) ten crore

8. _____ is celebrated as World Consumer Day.
a) 24th December
b)26th January
c) 15th March

9. In modern competitive market, consumer is regarded as the _____.
a) king
b) Agency
c) Owner

Q.1 (B) Match the pairs.

Group A	Group B
a) King of the market	1) 1930
b) National Commission	2) Socialist
c) Mumbai Grahak Panchayat	3) Exceeds Rs. ten crore
d) Sale of Goods Act	4) Non-Government Organisation
e) Consumer Right	5) Consumer
	6) Legislative Measures
	7) Exceeds Rs. one crore but does not exceeds Rs. ten crores.
	8) 1956
	9) Consumer Protection Act
	10) Right to information

Answers.
a. 5) Consumer
b. 3) Exceeds Rs. ten crore
c. 4) Non-Government Organisation
d. 1) 1930
e. 10) Right to information

Q.1 (C) Give one word/phrase/term for the following statements.

1. The commission which entertains a case where the value of the goods or services paid as consideration does not exceed Rs. one crore.
Answer: District Commission

2. A legal action initiated in a court of law regarding a matter of general public interest.
Answer: PIL (Public Interest Litigation)

3. Organizations that aim at promoting the welfare of the people.
Answer: Non-Government Organizations

4. The right of consumer which is about safety and protection to his life and health.
Answer: Right to Safety

5. One who consumes or uses any commodity or service.
Answer: Consumer

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.1 (D) State whether the following statements are true or false.

1. The seller has to recognize the rights of consumer. (True)

2. Consumer Protection Act provides protection to the producer. (False)

3. Consumer Protection Act is not required in India. (False)

4. Lok Adalat can rightly be described as “People’s Court”. (True)

5. Consumer, being the king of market, does not have any responsibility. (False)

Q.1 (E) Find the odd one out.

1. District Commission, State Commission, NGO, National Commission

2. District Judge, High Court Judge, Commissioner, Supreme Court Judge

Q.1 (F) Complete the sentences.

1. National Commission is to be established by Central Government.

2. Any person who does not agree with the decision of District Commission can appeal to the State Commission .

3. State commission has four members.

4. The President of National Commission is Supreme Court judge.

5. National Commission entertains complaints of consumer for compensation that exceeds Rs 10 Crore. 

6. The consumer protection Act established 3 tier quasi-judicial system for consumer protection.

Q.1 (G) Select the correct option.

Group A	Group B
1) Amount of compensation in  District Commission	Does not exceeds Rs. one crore
2) High court Judge	State Commission
3) Consumer Protection Act	2019
4) Consumer Organisations	Non-profit and non Political organization
5) Members of National Commission	Four

Q.1 (H) Answer in one sentence.

1) When do we observe National Consumer’s Day?
Answer: On 24th December every year we observe National Consumer’s Day.

2) Who is a consumer?
Answer: The consumer is the one who consumes or uses any commodity or service available from natural resources or through a market.

3) What information one should check before buying a product?
Answer: Before buying, the consumer should enquire about the quality, quantity, price, utility of goods and services, etc.

4) Which forum is set up at the national level for redressal for consumer complaints?
Answer: National Commission is set up at the national level for redressal of consumer complaints.

5) Who shall be appointed as president of National Commission?
Answer: A person, who is or has been a Judge of the Supreme Court, shall be appointed by the Central Government as the president of National Commission in consultation with the Chief Justice of India

6) When do we observe World Consumer’s Rights Day?
Answer: On 15th March every year we observe Worlds Consumer’s Rights Day.

Q.1 (I) Arrange in proper order.

1) National Commission, District Commission, State Commission.
Answer:
District Commission
State Commission
National Commission

2) District Judge, Supreme Court Judge, High Court Judge.
Answer:
District Judge
High Court Judge
Supreme Court Judge

Q.1(J) Correct the underlined word and rewrite the following sentences.

1) An appeal can be filed against the order of the National Commission to the State forum.
Answer: Supreme Court

2) National Commission is established by the State Government.
Answer: Central Government

3) District Commission is also referred as People’s Court.
Answer: Lok Adalat

4) In India, sellers are widely dispersed and are not united.
Answer: Consumers

5) National Commission entertains complaints where the value of the goods or services paid as consideration does not exceed Rs. one crore.
Answer: District Commission

Q.2 Explain the following terms/concepts.

1) District Commission
Answer: A consumer dispute redressal commission at each district established by the State Government is known as District Commission.

2) National Commission
Answer: A consumer dispute redressal forum at the National level established by the Central Government by notification is known as National Commission. It is also called as the National Consumer Disputes Redressal Commission. 

3) State Commission
Answer: A consumer dispute redressal commission at the state level established by the State Government is known as State Commission. It is also called as State Consumer Disputes Redressal Commission.

4) Lok Adalat.
Answer: Lok Adalat is an effective and economical system for quick redressal of public grievances. It can also be referred to as ‘People’s Court’. It is established by the government to settle disputes by compromise.
Resolution of disputes by Lok Adalat gets statutory recognition. e.g. MSEDCL, MSRTC, Railway authority, Insurance Companies, Banks, etc. organize regular Lok Adalat.

5) Janhit Yachika
Answer: Public Interest Litigation means a legal action initiated in a court of law regarding a matter of general public interest. It is a legal facility under which any person can approach to a court of law in the interest of society. Its aim is to provide legal remedies to unrepresented groups of society. The party which is not related to grievance can also file public interest litigation. It is filed in the High Court as well as Supreme Court directly in some cases.

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.3 Study the following case/situation and express your opinion.

1) Mr. Ashok visited a shop to buy a pair of shoes of RS. 700. The salesman forced him to buy a pair of bigger size shoes of ordinary company by claiming this size would be suitable to him. After reaching home, he discovered that shoes are still too big for him. He complained about the shoes to the shopkeeper. It was denied by the shopkeeper to replace the shoes despite of the availability of stock.
In above case
i) Which right has been violated?
ii) Comment on the right which has been violated.
iii) Where can Mr. Ashok file his complaint?

Solution:
i) Right to Choose has been violated.
ii) In this case, The salesman forced him to buy a pair of bigger size shoes from an ordinary company by claiming this size would be suitable for him. According to Consumer Rights, Mr. Ashok has the right to select from a range of products and services, offering competitive prices with an assurance of satisfactory quality. Here, the right to choose had been violated.
iii) Mr. Ashok can file a complaint in the District consumer forum.

2) Mrs. Meera a resident of Nagpur District bought a washing machine worth Rs. 50,000 without cash memo with a warranty period of 2 years. After 1.5 years she noticed some defect and asked the company to repair or replace it. The company did not accept her complaint despite of the defective product.
In the above case,
i) Suggest suitable redressal machinery to protect her right.
ii) If she is not satisfied with the decision given by redressal machinery, where should she appeal?
iii) What was the negligence of Mrs. Meera while buying the washing machine?

Solution:
i) Mrs. Meera can file a complaint in Nagpur District Commission as the value of machinery does not exceed Rs 1 Crore.
ii) If she is not satisfied with the decision given by District Commission, then she can appeal in State Commission within 45 days.
iii) Mrs. Meera bought the washing machine without a cash memo with a warranty period of 2 years. This was the negligence of Mrs. Meera while buying the washing machine.

Q.4 Distinguish between

1) District Commission and State Commission.

Points	District Commission	State Commission
1) Meaning	A consumer dispute redressal forum at the district level established by the State Government is known as District Commission.	A consumer dispute  redressal forum at the State level established by the  State Government is known as State Commission.
2) President	A person who is sitting or retired or qualified to be District Judge.	A person who is sitting or retired or Judge of High Court shall be appointed by  the State Government as the President of State Commission.
3) Member	Not less than two and not more than such number of  members as may be prescribed, in consultation with the Central Government	Not less than four or not more than such number of members as may be prescribed in consultation  with the Central Government.
4) Membership Tenure	The members can have the membership for a term of five years or upto the age of sixty-five years, whichever is earlier.	The members can have the membership for a term of five years or up to the age of sixty-seven, whichever is earlier.
5) Area covered	It covers a particular district.	It covers a particular state.
6) Monetary Jurisdiction	To entertain complaints where the value of the goods  or services paid as consideration does not exceed Rs. one crore.	To entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. one crore, but does not exceed Rs. ten crores.
7) Appeal	An appeal against the District Commission can be made to the State Commission.	An appeal against the State Commission can be made to the National Commission.

2) State Commission and National Commission.

Points	State Commission	National Commission
1) Meaning	A consumer dispute  redressal forum at the State level established by the  State Government is known as State Commission.	A consumer dispute redressal forum at the National level established by the Central Government by notification is known as National Commission.
2) President	A person who is sitting or retired or Judge of High Court shall be appointed by  the State Government as the President of the State Commission.	A person who is or has been a judge of the Supreme Court shall be appointed by  the Central Government.
3) Member	Not less than four or not more than such number of members as may be prescribed in consultation  with the Central Government.	Not less than four and not more than such number of  members as may be  prescribed.
4) Membership Tenure	The members can have the membership for a term of five years or up to the age of sixty-seven, whichever is earlier.	The members can have the membership for a term of five years or up to the age  of sixty-seven years and president upto seventy years, whichever is earlier.
5) Area covered	It covers a particular state.	It covers the entire country.
6) Monetary Jurisdiction	To entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. one crore, but does not exceed Rs. ten crores.	To entertain complaints where the value of the goods or services paid as con consideration exceeds Rs. ten crore
7) Appeal	An appeal against the State Commission can be made to the National Commission.	An appeal against the National Commission can be made to the Supreme Court.

3) District Commission and National Commission

Points	District Commission	National Commission
1) Meaning	A consumer dispute redressal forum at the district level established by the State Government is known as District Commission.	A consumer dispute redressal forum at the National level established by the Central Government by notification is known as National Commission.
2) President	A person who is sitting or retired or qualified to be District Judge.	A person who is or has been a judge of the Supreme Court shall be appointed by  the Central Government.
3) Member	Not less than two and not more than such number of  members as may be prescribed, in consultation with the Central Government	Not less than four and not more than such number of  members as may be prescribed.
4) Membership Tenure	The members can have the membership for a term of five years or up to the age of sixty-five years, whichever is earlier.	The members can have the membership for a term of five years or up to the age  of sixty-seven years and president up to seventy years, whichever is earlier.
5) Area covered	It covers a particular district.	It covers the entire country.
6) Monetary Jurisdiction	To entertain complaints where the value of the goods  or services paid as consideration do not exceed Rs. one crore.	To entertain complaints where the value of the goods or services paid as consideration exceeds Rs. ten crore
7) Appeal	An appeal against the District Commission can be made to the State Commission.	An appeal against the National Commission can be made to  the Supreme Court.

Q.5 Answer in brief.

1) Explain any four needs of consumer protection.

Answer: The consumer is regarded as the ‘King of Market’ hence consumer protection is required due to the following reasons:

1) Need for participation of consumers

It is noted that business organizations take decisions that affect the consumers’ interests without consulting the consumer or their organizations. Only a strong consumer organization can pressurise business organizations to allow consumer participation in the decision-making process.

2) Lack of information

It is very difficult to establish direct contact between consumers and manufacturers because consumers live in a dynamic and complex world and they are widely scattered. Today’s markets are full of domestic as well as imported products therefore it is very difficult to get correct and reliable information about products before they purchase.

3) Ignorance

Ignorance of consumers is the main cause of exploitation by businesses. Consumers in India are mostly ignorant about their rights, market conditions, price levels, and product details. A system is required to protect them from business malpractices. 

4) Unorganized Consumers

Consumers are widely scattered and are not organized, On the other hand, sellers are in a better position than consumers and they are powerful. Consumers are under the influence of businessmen. An individual consumer cannot fight against these powerful sellers.

2) State any four rights of the consumer.

Answer:

1) Right to Safety

This right protects consumers against products, production processes, and services that are hazardous to health or life. It includes concern for consumers’ long-term interests as well as their immediate requirements. According to this right, the consumer must get full safety and protection for their life and health. This safety should be in relation to medicines, electrical appliances, food, etc. The GOI has given safety standards in the form of AGMARK, lSI, BIS, Hallmark, etc.

2) Right to Information

According to this right, consumers should be provided with adequate information about all aspects of goods and services like price, name of the manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual and safety instruction, etc. This right also enables consumers to select the right product or service. It is applicable to food products, medicines, spare parts or any other consumer products or services.

3) Right to Choose

The choices available to Indian consumers across the basket of goods and services have multiplied like telecommunications, travel and tourism, banking, electronics, fast-moving consumer goods(FMCG), etc. According to this right, a consumer should be given full freedom to select an article as per his requirement, liking, and purchasing capacity. The right to choose is related to the concept of a free market economy. As per this right, the seller cannot compel consumers to buy a particular product and hence monopoly is prevented.

4) Right to be heard

Every business organization should listen to and solve the complaints of consumers. According to this right, consumers have the opportunity to voice their complaints to the consumer forum. Consumers also give suggestions to manufacturers or traders on certain matters such as quality, quantity, price, packaging, etc. Nowadays, consumers can file online complaints through portals or mobile applications.

3) Explain any four responsibilities of the consumer.

Answer: The Act, has given certain rights to the consumers. At the same time, consumers have some responsibilities too. Consumers should exercise their rights and responsibilities while purchasing products or services. These are as follows:

1) Consumer should use his rights

Consumers have many rights with regard to goods and services. They must be aware of their rights while buying.

2) Cautious consumer

Consumers should understand their responsibilities while buying goods and services. While buying, the consumer should enquire about the quality, quantity, price, utility of goods and services, etc.

3) Filing of complaint

It is the responsibility of a consumer to approach the officer concerned if consumers have some complaints about the goods and services. A delay in a complaint may result in the expiry of the guarantee or warranty. Sometimes, consumers ignore the dishonest acts of businessmen which encourage unethical business practices.

4) Quality conscious

Consumers should never compromise on the quality of goods. They should not buy inferior stuff out of greed for less prices. If the consumers behave like this, there cannot be any protection for them from any sector. It is also the responsibility of the consumers to buy quality goods. The symbols such as ISI, AGMARK, Hallmark, FPO, FASSAI, etc. are indicative of the good quality of the goods.

5) Beware from exaggerate advertisement

The seller informs the consumer about their goods and services through advertisement. Usually, the sellers exaggerate the quality of their goods in advertisements. Therefore, it is the responsibility of the consumers to identify the truth of advertisements.

4) State the role of NGOs in consumer protection.

Answer:
“Non-government organizations (NGO) are non-profit and non-political organizations which aim at promoting the welfare of the people.” The main aim of these NGOs is to study the trend of prices in the market and publish them for the information of consumers and to agitate against the malpractices of traders.

Role of Consumer organizations & NGOs in Consumer Protection and Education

i) To organize campaigns and various programmes on consumer issues to create social awareness.

ii) To organize training programmes for the consumers and make them conscious of their rights and modes of redressal of their grievances.

iii) To publish periodicals to enlighten the consumers about various consumer-related developments.

iv) To provide free legal advice to members on matters of consumer interest and help them to take up grievances.

iv) To interact with businessmen and Chambers of Commerce and Industry for ensuring a better deal for consumers.

v) To file Public Interest Litigation on important consumer issues, such as a ban on a product injurious to public health.

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.6 Justify the following statements.

1) The Consumer Protection Act was passed in the interest of consumers.

Answer:
a) The Central Government initially passed the consumer protection Act on 24th December 1986. In 2019, the Ministry of Law and Justice proposed a new act ‘Consumer Protection Act, 2019’
b) The act has recognized six rights of consumers,

• The right to be informed about the quantity, quality, purity, price, etc.
• The right to be protected from hazardous goods and services.
• The right to make a choice out of a variety of goods.
• The right to make a complaint about unsatisfactory goods
• The right to seek redressal from unfair or restrictive trade practices.
• The right to consumer education.

c) Under the Consumer Protection Act, 2019, a system has been set up to deal with consumer grievances and disputes at the district, state, and national levels.
d) The basic aim of the Consumer Protection Act is to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes.
e) The strict enforcement of these rights creates competition among the sellers. Consequently, consumers will get the quality of goods at fair prices.
Hence, The Consumer Protection Act was passed in the interest of consumers.

2) Consumers have many responsibilities.

Answer:
Consumers have many responsibilities such as:
a) Consumer should use his rights: Consumers have many rights with regard to goods and services. They must be aware of their rights while buying.

b) Cautious consumer: While buying, the consumer should enquire about the quality, quantity, price, utility of goods and services, etc.

c) Filing of complaint: It is the responsibility of a consumer to approach the officer concerned if consumers have some complaints about the goods and services.

d) Quality conscious: Consumers should never compromise on the quality of goods. They should not buy inferior stuff out of greed for less prices.

e) Demand of Invoice and Guarantee, Warranty Card: Consumers should always ask for invoices for the goods purchased. It is the responsibility of the consumer to check the details mentioned on the guarantee or warranty card.

3) Aim of a consumer organization is to protect the rights of the consumer.

Answer:

The aim of Consumer organizations & NGOs is explained as follows:

i) To organize campaigns and various programmes on consumer issues to create social awareness.

ii) To organize training programmes for the consumers and make them conscious of their rights and modes of redressal of their grievances.

iii) To publish periodicals to enlighten the consumers about various consumer-related developments.

iv) To provide free legal advice to members on matters of consumer interest and help them to take up grievances.

iv) To interact with businessmen and Chambers of Commerce and Industry for ensuring a better deal for consumers.

v) To file Public Interest Litigation on important consumer issues, such as a ban on a product injurious to public health.

Q.7 Attempt the following.

1) State rights of the consumer.

Answer:
Following are the rights of the consumer.

1) Right to Safety

This right protects consumers against products, production processes, and services that are hazardous to health or life. According to this right, a consumer must get full safety and protection to his life and health. This safety should be in relation to medicines, electrical appliances, food, etc. The GOI has given safety standards in the form of AGMARK, lSI, BIS, Hallmark, etc.

2) Right to Information

According to this right, consumers should be provided with adequate information about all aspects of goods and services like price, name of the manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual and safety instruction, etc. It is applicable to food products, medicines, spare parts, or any other consumer products or services.

3) Right to Choose

The choices available to Indian consumers across the basket of goods and services have multiplied like telecommunications, travel and tourism, banking, electronics, fast-moving consumer goods(FMCG), etc. According to this right, a consumer should be given full freedom to select an article as per his requirement, liking, and purchasing capacity. As per this right, the seller cannot compel consumers to buy a particular product and hence monopoly is prevented.

4) Right to be heard

Every business organization should listen to and solve the complaints of consumers. According to this right, consumers have the opportunity to voice their complaints to the consumer forum. Consumers also give suggestions to manufacturers or traders on certain matters such as quality, quantity, price, packaging, etc. Nowadays, consumers can file online complaints through portals or mobile applications.

5) Right to Consumer Education

This right creates consumer awareness. An aware consumer can make a rational choice of goods and services and protect his rights and interests from the exploitation of unscrupulous businessmen. Thus, consumer education becomes a priority concern. It is necessary to give education and training regarding prevailing acts and legal processes. The government, media, and NGOs play vital roles in this regard. E.g. ‘Jago Grahak Jago’ campaign.

6) Right to Represent

The act provides an opportunity to individuals and consumer groups to represent consumers’ interests in consumer forums. The act allows the consumer to be represented by a person who is not a professional advocate. This provision is in recognition of the consumer’s right to represent.

7) Right to Redress

Along with the right to represent, the right of redressal is also given. Only filing of complaints is not enough to give justice to consumers, so this right implies a fair settlement of claims. This right enables the consumer to demand repair or replacement or compensation for defective products and for poor services. According to the consumer protection Act, three-tier quasi-judicial consumer dispute redressal machinery is established for the settlement of claims such as the District Commission, State Commission, and National Commission.

8) Right to Healthy Environment

All consumers have a right to a healthy and clean environment. According to this right, consumers can demand action against the pollution causing business organizations. All consumers have the right to a healthy and clean environment in the present and future.

9) Right to Protect from unfair business practices

As per this right, all consumers are protected against unfair business practices such as black marketing, profiteering, faulty weights and measures, exorbitant prices, adulteration, etc.

10) Right against spurious goods

This right is against the marketing of goods that are hazardous to health, spurious, and pose a danger to life itself.

Note: Write any 6-7 points for 5 marks question.

2) State responsibilities of the consumer.

Answer:
The Act, has given certain rights to the consumers. At the same time, consumers have some responsibilities too. Consumers should exercise their rights and responsibilities while purchasing products or services. These are as follows:

1) Consumer should use his rights

Consumers have many rights with regard to goods and services. They must be aware of their rights while buying.

2) Cautious consumer

Consumers should understand their responsibilities while buying goods and services. While buying, the consumer should enquire about the quality, quantity, price, utility of goods and services, etc.

3) Filing of complaint

It is the responsibility of a consumer to approach the officer concerned, if consumers have some complaints about the goods and services. A delay in a complaint may result in the expiry of the guarantee or warranty. Sometimes, consumers ignore the dishonest acts of businessmen which encourage unethical business practices.

4) Quality conscious

Consumers should never compromise on the quality of goods. They should not buy inferior stuff out of greed for less prices. If the consumers behave like this, there cannot be any protection for them from any sector. It is also the responsibility of the consumers to buy quality goods. The symbols such as ISI, AGMARK, Hallmark, FPO, FASSAI, etc. are indicative of the good quality of the goods.

5) Beware from exaggerate advertisement

The seller informs the consumer about their goods and services through advertisement. Usually, the sellers exaggerate the quality of their goods in advertisements. Therefore, it is the responsibility of the consumers to identify the truth of advertisements.

6) Demand of Invoice and Guarantee, Warranty Card

Consumers should always ask for invoices for the goods purchased. It is the responsibility of the consumer to check the details mentioned on the guarantee or warranty card. If the goods purchased are of inferior quality, these documents are useful to settle all kinds of disputes with the seller.

7) Pre-planned buying

The important responsibility of consumers is that they should not buy in hurry. It means that the consumers should make an estimate of the goods they want to buy along with the quantity required. They should also take into consideration the place from where to buy the things.

8) Organised Efforts

Consumers should undertake responsibility for the protection of their rights and safeguarding their interests. Consumers can work for and support the consumer protection associations for consumer welfare.

Note: Write any 6-7 points for 5 marks question.

3) State the need of consumer protection.

Answer:
The consumer is regarded as the ‘King of Market’ hence consumer protection is required due to the following reasons:

1) Need of participation of consumers

It is noted that business organizations take decisions that affect the consumers’ interests without consulting the consumer or their organizations. Only a strong consumer organization can pressurise business organizations to allow consumer participation in the decision-making process.

2) Lack of information

It is very difficult to establish direct contact between consumers and manufacturers because consumers live in a dynamic and complex world and they are widely scattered. Today’s markets are full of domestic as well as imported products therefore it is very difficult to get correct and reliable information about products before they purchase.

3) Ignorance

Ignorance of consumers is the main cause of exploitation by businesses. Consumers in India are mostly ignorant about their rights, market conditions, price levels, and product details. A system is required to protect them from business malpractices.

4) Unorganized Consumers

Consumers are widely scattered and are not organized, On the other hand, sellers are in a better position than consumers and they are powerful. Consumers are under the influence of businessmen. An individual consumer cannot fight against these powerful sellers.

5) Spurious Goods

There is an increasing supply of duplicate products. It is not possible for an ordinary consumer to distinguish between a genuine product and its imitation. It is necessary to protect consumers from such exploitation by ensuring compliance with prescribed norms of quality and safety standards.

6) Misleading Advertising

Some businessmen give misleading information about the quality, safety, and utility of products. Consumers are misled by misleading advertisements and do not know the real quality of advertised goods. A mechanism is needed to prevent misleading advertisements.

7) Malpractices of Businessmen

Fraudulent, unethical, and monopolistic trade practices by businessmen lead to the exploitation of consumers. Many times consumers get defective, inferior, and substandard goods and services. Certain measures are required to protect the consumers against such malpractices.

8) Trusteeship

According to Gandhian, philosophy businessmen are trustees of the society’s wealth. Therefore, they should use this wealth for the benefit of people.

4) State the role of NGOs and consumer protection.

Answer:
Refer to question number 5 (4).

5) State the composition and monetary jurisdiction of district Forum.

Answer:
District Commission: A consumer dispute redressal commission at each district established by the State Government is known as District Commission.

1) Composition – Each District commission shall consist of the following.

a) President: A person who is sitting or retired or qualified to be a District Judge.

b) Member: Not less than two and not more than such number of members as may be prescribed, in consultation with the Central Government.

c) Tenure: The members will hold office for a term of five years or up to the age of sixty-five years, whichever is earlier.

2) Monetary Jurisdiction – District Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed Rs. one crore.

6) State the composition and monetary jurisdiction of state commission.

Answer:
State Commission: A consumer dispute redressal commission at the state level established by the State Government is known as State Commission. It is also called as State Consumer Disputes Redressal Commission.

1) Composition – Each State Commission shall consist of

a) President: A person who is a sitting or retired Judge of the High Court shall be appointed by the State Government as the president of the State Commission in consultation with the Chief Justice of the High Court.

b) Member: Not less than four or not more than such number of members as may be prescribed in consultation with the Central Government.

c) Tenure: The members will hold office for a term of five years or up to the age of sixty-seven years, whichever is earlier.

2) Monetary Jurisdiction – To entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. one crore, but does not exceed Rs. ten crores.

7) State the composition and monetary jurisdiction of national commission.

Answer:
National Commission
A consumer dispute redressal forum at the National level established by the Central Government by notification is known as National Commission. It is also called as the National Consumer Disputes Redressal Commission.

1) Composition – National Commission shall consist of –

a) President: A person, who is or has been a Judge of the Supreme Court, shall be appointed by the Central Government as the president of National Commission in consultation with the Chief Justice of India.

b) Member: Not less than four and not more than a such number of members as may be prescribed.

c) Tenure: The members will hold office for a term of five years or up to the age prescribed, whichever is earlier.

2) Monetary Jurisdiction – To entertain complaints where the value of the goods or services paid as consideration exceeds Rs. ten crores.

Solution of other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q.8 Answer the following.

1) Who is a consumer? Explain the rights of the consumers.

Answer:
The word ‘Consumer’ is derived from the Latin word ‘Consumere’ which means, to eat or to drink. The consumer is the one who consumes or uses any commodity or service available from natural resources or through a market.

A Consumer means any person who buys any goods, hires any service or services for a consideration which has been paid or promised or partly paid or partly promised or under any system of deferred payments.

Consumers have the following rights

1) Right to Safety

This right protects consumers against products, production processes, and services that are hazardous to health or life. According to this right, a consumer must get full safety and protection for his life and health. This safety should be in relation to medicines, electrical appliances, food, etc. The GOI has given safety standards in the form of AGMARK, lSI, BIS, Hallmark, etc.

2) Right to Information

According to this right, consumers should be provided with adequate information about all aspects of goods and services like price, name of the manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual and safety instruction, etc. This right also enables consumers to select the right product or service. It is applicable to food products, medicines, spare parts or any other consumer products or services.

3) Right to Choose

According to this right, a consumer should be given full freedom to select an article as per his requirement, liking, and purchasing capacity. The right to choose is related to the concept of a free-market economy. As per this right, the seller cannot compel consumers to buy a particular product and hence monopoly is prevented.

4) Right to be heard

Every business organization should listen to and solve the complaints of consumers. According to this right, consumers have the opportunity to voice their complaints to the consumer forum. Consumers also give suggestions to manufacturers or traders on certain matters such as quality, quantity, price, packaging, etc. Nowadays, consumers can file online complaints through portals or mobile applications.

5) Right to Consumer Education

This right creates consumer awareness. An aware consumer can make a rational choice of goods and services and protect his rights and interests from the exploitation of unscrupulous businessmen. Thus, consumer education becomes a priority concern. It is necessary to give education and training regarding prevailing acts and legal processes. The government, media, and NGOs play vital roles in this regard. E.g. ‘Jago Grahak Jago’ campaign.

6) Right to Represent

The act provides an opportunity for individuals and consumer groups to represent consumers’ interests before the consumer forum. The act allows the consumer to be represented by a person who is not a professional advocate. This provision is in recognition of the consumer’s right to represent.

7) Right to Redress

Along with the right to represent, right of redressal is also given. Only filing complaints is not enough to give justice to consumers, so this right implies a fair settlement of claims. This right enables the consumer to demand repair or replacement or compensation for defective products and for poor services. According to the consumer protection Act, three-tier quasi-judicial consumer dispute redressal machinery is established for the settlement of claims.

8) Right to Healthy Environment

All consumers have a right to a healthy and clean environment. According to this right, consumers can demand action against the pollution causing business organizations. All consumers have the right to a healthy and clean environment in the present and future.

9) Right to Protect from unfair business practices

As per this right, all consumers are protected against unfair business practices such as black marketing, profiteering, faulty weights and measures, exorbitant prices, adulteration, etc.

10) Right against spurious goods

This right is against the marketing of goods that are hazardous to health, spurious, and pose a danger to life itself.

2) Explain the ways and means of Consumer Protection.

Answer:
There are several instances of exploitation and malpractices on the part of manufacturers, traders, dealers, and services provider. Now the question arises as to how can these be eliminated. The prevailing judiciary system is not sufficient enough to protect consumers, therefore, there are various ways and means of consumer protection. They are as follows.

1) Lok Adalat

Lok Adalat is an effective and economical system for quick redressal of public grievances. It can also be referred to as ‘People’s Court’. It is established by the government to settle disputes by compromise.

The aggrieved party can directly approach the Adalat with a grievance, issues are discussed on the spot, and decisions are taken immediately. Resolution of disputes by Lok Adalat gets statutory recognition. e.g. MSEDCL, MSRTC, Railway Authority, Insurance Companies, Banks, etc. organize regular Lok Adalat.

2) Public Interest Litigation (Janahit Yachika)

It is a legal facility under which any person can approach to a court of law in the interest of society. Its aim is to provide legal remedies to unrepresented groups of society. The party which is not related to the grievance can also file public interest litigation. It is filed in the High Court as well as Supreme Court directly in some cases.

3) Redressal Forums

Under the Consumer Protection Act, 2019, a system has been set up to deal with consumer grievances and disputes at the district, state, and national levels. Any individual consumer or association of consumers can file a complaint with a respective commission depending on the value of goods and claim for compensation. The main aim of these commissions is to provide for simple, speedy, and inexpensive redressal of consumers’ grievances.

4) Awareness Programme

To increase the level of awareness among the consumers the Government of India has initiated various publicity measures. State and Central Government regularly publishes journals, brochures, booklets, and various posters depicting the rights and responsibilities of consumers, redressal machinery, etc. Several audio-video programmes on consumer awareness are broadcasted on various channels and through social media. 15th March is observed as ‘International Consumer Rights Day and 24th December is observed as ‘National Consumer Day.

5) Consumer Organizations

Consumer Organizations have been active in India to promote and protect consumer interests. The consumer movement is well settled in India and helps individuals to seek quick and adequate redressal of their grievances. It is necessary to strengthen consumer movement throughout the country.

6) Consumer Welfare Fund (CWF)

Department of Consumer Affairs has created a consumer Welfare Fund for providing financial assistance to strengthen the voluntary consumer movement, particularly in rural areas. This fund is used for training and research in consumer education, complaint handling, counseling and guidance mechanisms, product testing labs, and so on.

7) Legislative Measures

A number of laws have been enacted in India to safeguard the interest of consumers and protect them from unethical practices of businessmen. Some of these laws are as follows:

● Sale of Goods Act, 1930
● Essential Commodities Act, 1955
● Standard of Weights and Measures Act, 1956
● Bureau of Indian Standards Act, 1969
● Food Safety and Standards Act, 2006
● National Food Security Act, 2013

There are a number of laws to safeguard the interests of consumers, but these acts could not provide complete and fair justice to consumers. Therefore, an exclusive Act has been advocated in the form of the Consumer Protection Act, 2019.

3) Explain the three-tier quasi-judicial machinery under the Act.

Answer:
Following are the three-tier quasi-judicial machinery established under the Act.

1) District Commission:

i) Meaning – A consumer dispute redressal commission in each district established by the State Government is known as District Commission.

ii) Qualification -The members of the District Commission shall have the following qualifications

a) Age – Members should not be less than 35 years of age.

b) Education – They should possess a bachelor’s Degree from a recognized University.

c) Experience – They should have adequate knowledge and at least ten years of experience in dealing with problems related to economics, law, commerce, accountancy, industries, and public affairs or administration.

iii) Territorial Jurisdiction – Territorial Jurisdiction of the district commission is the entire district in which it is established.

iv) Monetary Jurisdiction – District Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed Rs. one crore.

v) Appeal – Any person aggrieved by an order made by the District Commission may prefer an appeal against such order to the State Commission within a period of forty-five· days from the date of the order, in such form and manner, as may be prescribed.

2) State Commission:

i) Meaning – A consumer dispute redressal commission at the state level established by the State Government is known as State Commission. It is also called as State Consumer Disputes Redressal Commission.

ii) Qualification – The members of the state commission shall have the following qualifications

a) Age – Members should not be less than 35 years of age.

b) Education – They should possess a bachelor’s Degree from a recognized University.

c) Experience – They should have adequate knowledge and at least ten years of experience in dealing with problems related to economics, law, commerce, accountancy, industries, and public affairs or administration.

iii) Territorial Jurisdiction – It can entertain original cases as well as appeals against the order of the District Commission which are within the geographical limits of the state.

iv) Monetary Jurisdiction – to entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. one crore, but does not exceed Rs. ten crores.

v) Appeal – Any person aggrieved by an order made by the State Commission may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed.

3) National Commission

i) Meaning – A consumer dispute redressal forum at the National level established by the Central Government by notification is known as National Commission. It is also called as the National Consumer Disputes Redressal Commission.

ii) Qualification – The members of the national commission shall have the following qualifications

a) Age – Members should not be less than 35 years of age.

b) Education – They should possess a bachelor’s Degree from a recognized University.

c) Experience – They should have adequate knowledge and at least ten years of experience in dealing with problems related to economics, law, commerce, accountancy, industries, and public affairs or administration.

iii) Territorial Jurisdiction – It can entertain original cases as well as appeals against the order of the State Commission that are within the geographical limits of the state.

iv) Monetary Jurisdiction – to entertain complaints where the value of the goods or services paid as consideration exceeds Rs. ten crores.

v) Appeal – Any person, aggrieved by an order made by the National Commission may prefer an appeal against such order to the Supreme Court within a period of thirty days from the date of the order.

12th Commerce OCM Textbook Solutions

Chapter Name	Solution Link
1) Principles of Management	Click Here
2) Functions of Management	Click Here
3) Entrepreneurship Development	Click Here
4) Business Services	Click Here
5) Emerging Modes of Business	Click Here
6) Social Responsibilities of Business	Click Here
7) Consumer Protection	Click Here
8) Marketing	Click Here

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