Consumer Protection Class 12 Business Studies Exam Questions

Please refer to Consumer Protection Class 12 Business Studies Exam Questions provided below. These questions and answers for Class 12 Business Studies ave been designed based on the past trend of questions and important topics in your class 12 Business Studies books. You should go through all Class 12 Business Studies Exam Questions provided by our teachers which will help you to get more marks in upcoming exams.

Class 12 Business Studies Exam Questions Consumer Protection

Class 12 Business Studies students should read and understand the important questions and answers provided below for Consumer Protection to understand all important and difficult topics.

Short Answer Type Questions :

Question. Day-by-day the cases related to consumer exploitation are increasing in number. As you are working in a newspaper agency, what actions will you take to protect the interest of customers?
Ans. As I am associated with media, it is my duty to protect the interest of consumers. I can launch a consumer awareness campaign or publish an article in newspaper as follows
Follow smart shopping tips
(i) Take bill/cash memo of every purchase.
(ii) Check date of expiry and manufacturing before leaving the counter.
(iii) Do not pay more than MRP (Maximum Retail Price).
(iv) Consumers be aware, approach 1800-11-4000 (Toll Free for MTNL/BSNL) for any complaints of products services.

Question. State any two reliefs that the consumer court can grant to consumers in case of genuine complaints in each of the following situations
(i) Divya was charged more than the printed Maximum Retail Price (MRP) for a bottle of water.
(ii) Clara was sold a car with a defective engine.
(iii) Antony suffered injury while using newly bought defective electric heater.
Ans. Following are the two reliefs that the Consumer Court can offer in the given cases
Case (i) Divya was charged more than the printed Maximum Retail Price (MRP) for a bottle of water.
(a) To refund the price paid for the product.
(b) To discontinue the unfair trade practice.
Case (ii) Clara was sold a car with a defective engine.
(a) To remove the defect in engine.
(b) To replace the defective engine with the new engine.
Case (iii) Antony suffered injury while using newly bought defective electric heater.
(a) To pay a reasonable compensation for any loss or injury suffered by the consumer due to negligence of the opposite party.
(b) To withdraw hazardous goods like defective electric heater from sale.

Question. Meeta purchased a book of ₹ 375 and took the cash memo. Later, she found that the original price of a book is ₹ 275, but the local bookseller had put a sticker of ₹ 375. What actions can be taken by her in this case?
Ans. Following actions can be taken
(i) She should force him to refund the extra price paid by her.
(ii) She can make her friend circle aware about the wrong practices of the seller and ask them not to buy books from that bookseller.
(iii) She can inform to the publication house, whose books are being sold by that bookseller at wrong price, so that appropriate actions can be taken.

Question. What are the responsibilities of a consumer?
Ans. A consumer should fulfil the following responsibilities, while purchasing, using and consuming goods and services (any four)
(i) A consumer must read the labels carefully, so as to have complete information about the price, quantity, ingredients, usage, contents, expiry date, etc.
(ii) A consumer must ensure that he gets a fair deal. 
(iii) A consumer should be honest in his dealings, choose legal goods and discourage unscrupulous practices like black marketing, hoarding, etc.
(iv) A consumer should always ask for a cash memo, as it is the proof of purchase required at the time of taking any action against a fraudulent seller/manufacturer.
(v) A consumer must file a complaint in case of any shortcoming in goods or services availed.
(vi) A consumer should take initiative to form consumer societies that can take active part in educating consumers and safeguarding their interests.
(vii) A consumer should respect the environment and avoid creating pollution.

Question. 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 fond 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. 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.
(i) State the responsibility which Sumit had to fulfil as an aware consumer to get the services of the company.
(ii) Explain briefly any two rights which Sumit could have exercised had he fulfilled his responsibility identified in part (i).
Ans. (i) As an aware consumer, the responsibility that Sumit should have followed is following the manufacturer’s instructions and user manuals carefully before using the product for safety purposes.
(ii) If Sumit had fulfilled his responsibility, then he could have enjoyed the following rights
(a) Right to be Heard Under this right, a consumer has the right to file a complaint under appropriate forum established by the government, in case of any grievance or dissatisfaction.
(b) 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.

Question. Suppose, you are familiar with an organisation, who is protecting and promoting the interests of consumers. In this context, state some of the functions of such organisations.
      Or
State any three functions performed by non-governmental organisation for consumer protection. 
      Or
What functions would you perform for the general benefit, if you are running an NGO for consumer protection?
Ans. These are consumer organisations or NGOs, who are serving different sections of society.
Such organisations perform following functions
(i) Making consumers aware of their rights and responsibilities.
(ii) Educating consumers about the remedies, which are available to them for their protection.
(iii) On behalf of the deceased consumer, protest against malpractices and fraud done by the producers or sellers.

Question. Anita purchased a book from ‘Satish Book Stores’. While reading the book, she found that ten pages are missing. She approached the seller of the book and complained about the missing pages.
The seller promised that if the publisher was ready to change the book he would change the same. After a week, the seller informed Anita that the publisher had refused to change the book. Where can Anita file a complaint against the seller of book? Give reason in support of your answer. Also explain, who is a consumer as per Consumer Protection Act, 2019.
Ans. Anita can file a complaint against the book seller in the District Commission. District Commission is set up in each district by the concerned State Government. In District Commission, those complaints can be filed in which the value of goods and services in question along with compensation claim does not exceed ₹ 1 crore. To Define a Consumer
Under the Consumer Protection Act, 2019, the term ‘consumer’ has been defined as any person who buys goods or hires or avail any service for a consideration which has been paid or promised or partly paid and partly promised or under any system of deferred payment.
It also includes any user of such goods with the approval of the buyer or any beneficiary of services when such goods or services are availed of with the approval of the person concerned but does not include a person who avails such services for any commercial purpose.

Question. A shopkeeper sold you some spices, claiming that those were pure. Later, a laboratory test showed that those were adulterated. What precautions you should have taken before buying the products?
Ans. While buying a product or service, a consumer should take the following precautions
(i) See the name of the product, the manufacturer’s name and address.
(ii) Date of manufacture and date of expiry.
(iii) Net weight.
(iv) Standardisation mark.
(v) Maximum retail price.
(vi) Directions for using the product, if any.
(vii) See that the packet was properly sealed and not puffed, torn or in a bad condition.

Question. Explain in brief any three means, by which a consumer can be protected.
Ans. Three means of consumer protection are (i) Self-regulation by Business Enlightened business firms realise that it is in their long-term interest to serve the customers well. For this, they usually set up their customer services and redessal cells.
(ii) Business Associations Associations of trade, commerce and business like CII and FICCI lay down the code of conduct for their members for dealing with customers.
(iii) Government The government can protect the consumers’ interest by enacting various legislations.

Question. Reena purchased a litre of refined oil, which she doubted to be adulterated. She sent it to laboratory test which confirmed her doubt to be true. State eight remedies that she can avail if the court is satisfied about the genuineness of her complaint.
       Or
Explain the various remedies available to the consumer for redressing their grievances under the Consumer Protection Act, 2019?
Ans. If 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 (any eight)
(i) To remove the defect in goods or deficiency in services.
(ii) To replace the defective product with a new one, free from any defect.
(iii) To refund the price paid for the product or the charges paid for the service.
(iv) To pay a reasonable amount of compensation for any loss of injury suffered by the consumer due to the negligence of the opposite party.
(v) To pay punitive damages in appropriate circumstances.
(vi) To discontinue the unfair/restrictive trade practice and not to repeat it in the future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw the hazardous goods from sale.
(ix) To cease manufacture of hazardous goods and to desist from offering hazardous services.
(x) To pay any amount (not less than 5% of the value of the defective goods or deficient services provided), to be credited to the Consumer Welfare Fund or any other organisation/ person, to be utilised in the prescribed manner.
(xi) To issue corrective advertisement to neutralise the effect of a misleading advertisement.
(xii) To pay adequate costs to the appropriate party.

Question. Explain the concept of ‘consumer protection’ and any three points of its importance from the point of view of consumers. 
Ans. Consumer protection refers to the steps taken to protect and promote the rights of consumers. Since long, consumers have been exploited in various ways, e.g. adulteration, misleading advertising, short weighing, etc. In recent years, there has been increasing awareness among consumers about their rights.
Three importance of consumer protection from the point of view of consumers are
(i) Consumer Awareness Consumer Protection Act provides required information related to the rights and remedies available to consumers. It spreads awareness, so that a consumer will be able to know about the redressal agencies and can approach them whenever needed.
(ii) Unorganised Consumers Consumers need to be organised in the form of consumer organisations which would take care of their interests. Due to lack of consumer organisations in India, consumer protection becomes necessary to promote and protect the interests of consumers.
(iii) Widespread Exploitation of Consumers Consumer is the reason for existence of business still there is lot of exploitation of consumers as businessmen use various unfair trade practices to cheat and exploit consumers. Consumer protection provides safety to consumers from exploitations such as adulteration, black-marketing, hoarding, defective and unsafe
products, etc.

Question. What is a complaint under the Consumer Protection Act, 2019?
Ans. Complaint means any allegation in writing in regard to one or more of the following
(i) Complaint has suffered loss or damage as a result of any unfair trade practice or restrictive trade practice adopted by any trader.
(ii) Goods bought by him suffer from one or more defects.
(iii) Services hired or availed of suffer from any deficiency in that respect.
(iv) Trader has charged a price in excess of the price fixed by law or displayed on the goods or package.
(v) Goods are hazardous to life and property.

Question. Rahul Bajaj purchased a car for ₹ 78 lakh from an automobile company. Later on, he found defects in its engine.
Suggest to him the appropriate authority, where he could file a complaint under Consumer Protection Act.
Ans. He can appeal before the District Commission as in this, such complaints can be filed whose claim is less than ₹ 1 crore. On receiving the complaint, the District Commision shall refer the complaint to the opposite party.
After being satisfied with the genuineness of complainant, it passes orders such as remove the defects in goods, return the price paid or pay compensation, etc.

Question. Explain any three points of importance of consumer protection from the point of view of a business. 
Ans. A business must also lay emphasise on protecting the consumers and adequately satisfying them. This is important because of the following reasons (any three) 
(i) Long-term Interest of Business Customer is the foundation of business. Satisfied consumers not only bring repeated sales but also give positive feedback about the product, which help to increase the customer-base of business. 
In order to satisfy and retain consumers for long-term, consumer protection is necessary. This facilitates long-term profit maximisation of the firm. 
(ii) Business uses Society’s Resources Business firms use resources that belong to the society such as manpower, mineral resources, capital, etc.
Therefore, it is the responsibility of businesses to convert these resources into useful goods and services for the welfare of society.
(iii) Social Responsibility Business organisation makes money by selling their products to consumers.
It is the social responsibility of businessman to provide satisfaction to their customers and take care of their interests.
(iv) Government Intervention If a business organisation is engaged in any form of exploitative trade practices, government would interfere and can tarnish the image of the company.
Therefore, it is in the interest of business itself, to take care of consumer protection.

Question. ‘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 realised 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 filed 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.
State any six directions that might have been issued by the court. 
Ans. Directions that might have been issued by the court are
(i) To remove the deficiency in services.
(ii) To refund the price paid for the services, if any.
(iii) To pay a reasonable amount of compensation.
(iv) To pay punitive damages in appropriate cases.
(v) To ban the provision of services by the company.
(vi) To pay adequate costs to the aggrieved party.

Question. A consumer should keep in mind certain responsibilities while purchasing, using and consuming goods and services. State any four such responsibilities of a consumer. 
Ans. A consumer should fulfil the following responsibilities, while purchasing, using and consuming goods and services.
(i) Consumer should have Knowledge about Market A consumer should be aware about the various goods and services available in the market, so that he can make a wise choice by comparing their features and prices.
(ii) Consumer must be Quality Conscious A consumer should buy standardised goods as they provide quality assurance. Thus, he/she should look for various quality marks, ISI mark on electrical goods, FPO mark on the food products, hallmark on jewellery, etc.
(iii) Use the Product Safely A consumer should learn about the various risks associated with the use and maintainence of goods. He should follow the manufacturer’s instructions carefully and use the product safely.
(iv) Consumer must Read Labels Carefully A consumer must read the labels carefully, so as to have complete information about the price, quantity, ingredients, usage, contents, expiry date, etc.

Question. Aditi set-up a company ‘Dantik Ltd.’ to manufacture toothpastes using herbs found in her village instead of chemicals that are hazardous to health. The package of the product was
eco-friendly and had details like price, quantity, ingredients, directions for use and other relevant information. It also carries the contact details like address, phone number and e-mail id of ‘Dantik Consumer Services and Grievance Cell’.
The toothpaste became very popular and she started getting orders from reputed traders. Identify and explain any two rights of consumers discussed above.
Ans. Consumer rights discussed above are
(i) Right to Safety It means a consumer has a right to be protected against the marketing of such goods and services that are harmful to life and health. Thus, consumers are educated to use standardised goods, such as electrical goods with ISI mark, food products with FPO mark, etc as such goods would be an assurance of meeting quality specifications.
(ii) Right to be Informed A consumer has the right to get true and complete information about the quality, quantity, price, contents, expiry date of the goods and services which he intends to buy.
Therefore, the legal framework in India has made it compulsory to provide all such information on the package of the product.

Question. Gopal, Mohan and Shyam are three friends having their separate small manufacturing units in an industrial estate. They are hard-working and honest and undertake their respective production activities following the good practices of business. They use good quality raw materials and adopt standardised process.
They fix the prices of their products with a reasonable profit margin. But all of them are worried about the malpractices like manufacturing sub-standard, duplicate, and defective goods by the fellow manufacturers. Therefore, they decided to form an organisation with a constitution of its own which is free from government interference. This organisation would encourage consumers to strongly protest and take action against unscrupulous, exploitative and unfair trade practices of sellers.
State three other functions which may be performed by this organisation in addition to those mentioned above. 
Ans. Functions performed by consumer organisations and NGO’s are
(i) They provide legal assistance to consumers by way of providing aid, legal advice, etc in seeking legal remedy.
(ii) Carrying out comparative testing of consumer products in accredited laboratories and publishing the results for the general benefit.
(iii) NGO’s and consumer organisations conduct various training programmes and workshops to educate the consumers about their rights and responsibilities.

Long Answer Type Questions :

Question. TheMaharashtra State Consumer Commission has asked Coca Cola, one of the international fizzy drinks manufacturer, its bottler and distributor to pay ₹ 1 lakh in damages to a consumer who found impurities in a bottle of soft drink that he had bought. Chandrashekhar Paradkar, a resident of Shankar Nagar area here, filed a complaint with the Nagpur District Commission seeking compensation of ₹ 4 lakh after he found some solid objects inside a sealed bottle of a soft drink. He had bought six various brands of the soft drink—two bottles each of Mazaa, Coca Cola and Sprite from a shop near his house. Based on that, the District Commission earlier gave a ruling after finding Coca Cola, its bottlers Superior Drinks Pvt. Ltd. and distributors Balaji Sales guilty of supplying drinks unfit for human consumption, which was upheld by the State Consumer Commission.
The District Commission had found objects resembling pieces of mosquito repellent mats floating inside the sealed bottle. Having conducted the tests by a Public Health Laboratory, they found the drink unfit for human consumption.
While giving its ruling, the District Commission relied upon the historic Donald versus Stevenson case, wherein heavy compensation had been awarded to a consumer, who had found rusted nails inside a bottle of ginger beer.
With reference to the above case, state the reliefs that could be given to an aggrieved consumer.
Ans. If 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
(i) To remove the defect in goods or deficiency in services.
(ii) To replace the defective product with a new one, free from any defect.
(iii) To refund the price paid for the product or the charges paid for the service.
(iv) To pay a reasonable amount of compensation for any loss of injury suffered by the consumer due to the negligence of the opposite party.
(v) To pay punitive damages in appropriate circumstances.
(vi) To discontinue the unfair/restrictive trade practice and not to repeat it in the future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw the hazardous goods from sale.
(ix) To cease manufacture of hazardous goods and to desist from offering hazardous services.
(x) To pay any amount (not less than 5% of the value of the defective goods or deficient services provided), to be credited to the Consumer Welfare Fund or any other organisation/ person, to be utilised in the prescribed manner.
(xi) To issue corrective advertisement to neutralise the effect of a misleading advertisement.
(xii) To pay adequate costs to the appropriate party.

Question. Explain the rights of a consumer.
Ans. Consumer Rights The Consumer Protection Act provides following six rights to consumers to safeguard their interests
(i) Right to Safety It means a consumer has a right to be protected against the marketing of such goods and services that are harmful to life and health. Thus, consumers are educated to use standardised goods, such as electrical goods with ISI mark, food products with FPO mark, etc as such goods would be an assurance of meeting quality specifications.
(ii) Right to be Informed A consumer has the right to get true and complete information about the quality, quantity, price, contents, expiry date of the goods and services which he intends to buy. Therefore, the legal framework in India has made it compulsory to provide all such information on the package of the product.
(iii) Right to be Assured Consumers have the freedom to choose products of their choice. This implies that the marketers should offer a wide variety of products in terms of quality, brand, size, etc, so that the consumer can make a wise choice by comparing different products available at competitive prices.
(iv) Right to be Heard The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. It is because of this reason, many enlightened
business firms have setup their own consumer service and grievance cells, and help consumers in redressal of their grievances.
(v) Right to Seek Redressal This right assures justice to consumers against exploitation and includes compensation for any loss or injury suffered by the consumers, replacement of goods or repair of defects in the goods in order to provide satisfaction to consumers. Thus, the consumer has a right to get relief in case the product falls short of his expectation.
(vi) Right to Consumer Education Consumer should have knowledge about the various rights and reliefs provided by the legislations to protect their interest. Every consumer has the right to be well informed about his rights, and to spread awareness and education by forming consumer organisations and associations.

Question. Explain the three tier machinery under The Consumer Protection Act for redressal of consumers grievances.
Ans. The three tier machinery under The Consumer Protection Act for redressal of consumer’s grievances consists of
(i) District Commission
(a) The State Governments are required to establish District Commission in each district.
(b) A District Commission can receive consumer complaints, where the value of goods or services and the compensation claimed does not exceed ₹ 1crore.
(c) On receiving the complaint, the District Commission shall refer the complaint to the opposite party concerned and send the sample of goods for testing in a laboratory.
(ii) State Commission
(a) State Commission is set up by the State Government and its jurisdiction is restricted to the boundaries of the state concerned.
(b) Only those complaints can be filed, where the value of goods or services and compensation claimed is more than ₹ 1 crore but not more than ₹ 10 crore.
(c) The appeals against the orders of any District Commission can also be filed before the State Commission, within 45 days of passing of the order.
(iii) National Commission
(a) The National Commission is set up by the Central Government.
(b) All complaints pertaining to those goods or services and compensation whose value is more than ₹ 10 crore can be filed.
(c) Appeals against the order of any State Commission can also be filed before the National Commission, within 30 days of passing of the order.
(d) An order passed by the National Commission is appealable before the Supreme Court within a period of 30 days of such order.