All questions of Consumer Protection for Commerce Exam

The Sale of Goods Act 1930. ... A contract for sale of goods has, however, certain peculiar features such as, transfer of ownership of the goods, delivery of goods rights and duties of the buyer and seller, remedies for breach of contract, conditions and warranties implied under a contract for sale of goods, etc.

It's B right to safety bcoz this logo is only use in which thing which is not harm anybody

Right to be informed

The right to be informed is one of the fundamental rights of consumers. It means that consumers have the right to be provided with accurate and complete information about the products and services they are buying. In this case, consumers can ask anything regarding the date of manufacture, price, quantity, etc. This is an example of the right to be informed.

Explanation

The right to be informed ensures that consumers can make informed decisions about what they are buying. It requires that manufacturers and sellers provide consumers with accurate and complete information about their products and services. This includes information about the price, quantity, date of manufacture, ingredients, and any potential risks associated with the product.

In this case, consumers have the right to ask for information about the date of manufacture, price, quantity, etc. This information can help consumers make informed decisions about whether or not to buy a particular product. For example, if a consumer is concerned about the freshness of a product, they can ask for information about the date of manufacture to ensure that it is not expired.

Conclusion

In conclusion, the right to be informed is an essential consumer right that allows consumers to make informed decisions about what they are buying. Consumers have the right to ask for information about the products and services they are considering buying, and manufacturers and sellers have a responsibility to provide accurate and complete information. In this case, consumers can ask for information about the date of manufacture, price, quantity, etc., which is an example of the right to be informed.

The Consumer Protection Act, 1986 is a legislation that aims to protect the interests of consumers in India. It provides for the establishment of consumer courts and the redressal of consumer grievances. Any person who is a consumer as per the definition provided by the Act can file a complaint under the Consumer Protection Act, 1986.

Who can file a complaint?

The following entities are eligible to file a complaint under the Consumer Protection Act, 1986:

1. Any consumer: A consumer who has purchased goods or availed services for his personal use or consumption is eligible to file a complaint under the Act. The Act defines a consumer as any person who buys any goods or hires any services for a consideration.

2. Any registered consumers association: A consumers association that is registered under the Companies Act, 1956 or any other law for the time being in force can file a complaint under the Act. The association should have a minimum of ten members who are consumers.

3. A legal heir of a deceased consumer: In case a consumer has passed away, his legal heir or representative can file a complaint under the Act.

Conclusion

In conclusion, any person who falls under the definition of a consumer as per the Consumer Protection Act, 1986 is eligible to file a complaint. This includes any consumer, registered consumers association, or legal heir of a deceased consumer. It is important for consumers to be aware of their rights and take necessary steps to protect themselves from unfair trade practices. The Consumer Protection Act, 1986 is an important legislation that empowers consumers and ensures that their grievances are addressed in a timely and effective manner.

To provide cheap, speedy and simple redressal to consumer disputes, quasi-judicial machinery is set up at each District, State and National levels called District Forums, State Consumer Disputes Redressal Commission and National Consumer Disputes Redressal Commission respectively. 

The detailed solution is as follows:
Introduction:
The Consumer Protection Act, 1986 is a legislation enacted by the Government of India to protect the rights and interests of consumers. It aims to provide a fair and efficient redressal mechanism for consumer grievances and ensures that consumers have access to goods and services of acceptable quality.
Key provisions of the Consumer Protection Act, 1986:
1. Right to Safety: Consumers have the right to be protected against goods and services that are hazardous to life and property. They can seek compensation for any harm caused due to defective products or services.
2. Right to Information: Consumers have the right to obtain accurate and complete information about the goods and services they purchase. They should be informed about the quality, quantity, price, and other relevant details.
3. Right to Choose: Consumers have the right to choose from a variety of goods and services at competitive prices. They should not be forced to buy a particular product or service.
4. Right to be Heard: Consumers have the right to be heard and have their grievances addressed. They can file complaints and seek redressal for any unfair trade practices or deficiencies in goods and services.
5. Right to Redressal: Consumers have the right to seek a speedy and effective remedy. They can approach consumer courts or forums to resolve their complaints and claim compensation.
6. Right to Consumer Education: Consumers have the right to be educated about their rights and responsibilities. They should be aware of the laws and regulations related to consumer protection.
7. Right to Representation: Consumers have the right to be represented in consumer forums or courts. They can seek legal assistance or engage a representative to present their case.
Conclusion:
The Consumer Protection Act, 1986 plays a crucial role in safeguarding the rights of consumers. It empowers consumers to seek justice and claim compensation for any harm or injustice they may face in the marketplace. By ensuring fair trade practices and promoting consumer welfare, this act contributes to a more equitable and transparent consumer market.

Hallmark

The Act has defined the criteria of Consumer Disputes Redressal Commission (CDRCs). The National CDRC will hear complaints worth more than ₹ 10 crores. The State CDRC will hear complaints when the value is more than ₹ 1 crore but less than ₹ 10 crore. While the District CDRC will entertain complaints when the value of goods or service is upto ₹ 1 crore.

Explanation:

Assertion (A) and Reason (R) Analysis:
- Assertion (A): State Commission to consumer protection is headed by a President, who has been a Judge of the High Court.
- Reason (R): Consumer Protection Commission is a Quasi-Judicial Body.

Evaluation of Assertion and Reason:
- Both A and R are true: The State Commission for consumer protection is indeed headed by a President who must have been a judge of a High Court. Additionally, it is correct that the Consumer Protection Commission is a quasi-judicial body.
- R is the correct explanation of A: The reason provided (R) supports the assertion (A) by explaining that the Consumer Protection Commission being a quasi-judicial body requires a President with a judicial background.
Therefore, option 'B' - Both A and R are true, but R is not the correct explanation of A is the correct choice. The statements are both true, but the reason does not directly explain the assertion.

Assertion and Reasoning in Commerce: Indian Chambers of Commerce

Assertion (A): Indian Chambers of Commerce of India is a pressure group.

Reason (R): The institution deals with bread guideline for consumer welfare.

Explanation:

• Assertion (A) is true as Indian Chambers of Commerce is a non-governmental organization that represents the interests of business and industry in India. It is primarily a pressure group that works towards promoting and safeguarding the interests of its members.


• Reason (R) is partially true. The Indian Chambers of Commerce does not deal with bread guidelines for consumer welfare. However, it does work towards the welfare of consumers by promoting fair trade practices and ethical business conduct among its members.


• Therefore, both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

Conclusion: Indian Chambers of Commerce is a pressure group that works towards promoting and safeguarding the interests of its members while also promoting fair trade practices and ethical business conduct among its members for the welfare of consumers.

The correct answer is option 'C', the right to be heard.

Explanation:
The right to be heard is one of the fundamental rights of consumers. It ensures that consumers have the opportunity to voice their concerns and dissatisfaction regarding goods or services they have purchased. This right enables consumers to file a complaint and have their grievances addressed by the relevant authorities and businesses.

Here is a detailed explanation of the right to be heard:

1. Definition: The right to be heard means that consumers have the right to express their opinions, feedback, and complaints regarding the goods or services they have acquired. It ensures that consumers are not ignored or overlooked when they face issues with the products or services they have purchased.

2. Filing a complaint: If a consumer is dissatisfied with a product or service, they have the right to file a complaint. This can be done through various channels, such as customer service hotlines, complaint forms, or online platforms. Consumers can provide details of their grievances, including the nature of the problem, the product or service in question, and any supporting evidence.

3. Addressing grievances: Once a complaint is filed, it is essential for the consumer to be heard and for their concerns to be taken seriously. Businesses or relevant authorities should provide a prompt and appropriate response to address the consumer's grievances. This may involve providing a solution, compensating for any damages, or taking corrective measures to rectify the issue.

4. Consumer redressal forums: In case the consumer's complaint is not adequately resolved by the business, there are consumer redressal forums or consumer courts that can be approached. These forums ensure that consumers have a platform to present their case and seek a fair resolution. The right to be heard empowers consumers to take legal action if necessary.

5. Importance: The right to be heard is crucial for consumer protection. It ensures that consumers have a voice and are not taken advantage of by businesses. It allows for the timely resolution of complaints and helps maintain trust between consumers and businesses. Additionally, it encourages businesses to improve their products and services based on consumer feedback.

In conclusion, the right to be heard is a vital consumer right that enables individuals to file complaints and have their grievances addressed. It ensures that consumers are not left unheard and helps in resolving issues related to goods or services.

The basic aim of the Consumer Protection Act, 2019 is to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes.

The consumer should ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.

Right to be Informed:
The consumer right that helped protect the company in this situation is the "Right to be Informed." This right ensures that consumers have access to complete information about the product or service they are purchasing.

Explanation:
- The company was able to protect itself by pointing out that in the instruction manual of the mosquito racket, it was specified to clean the racket every month.
- This information was crucial as it showed that the residents who faced issues with their rackets, including Rishab, did not follow the maintenance instructions provided by the company.
- By highlighting this point, the company was able to shift the blame onto the consumers for not properly maintaining the product, thus avoiding liability for the faulty rackets.

Significance of Right to be Informed:
- The right to be informed is essential as it empowers consumers to make informed decisions about their purchases.
- It also holds companies accountable for providing accurate and complete information about their products and services.
- In this case, the company was able to utilize this right to protect itself by demonstrating that the consumers were aware of the maintenance instructions but did not adhere to them.
In conclusion, the Right to be Informed played a crucial role in protecting the company in this situation by highlighting the lack of compliance from consumers in following the maintenance instructions provided by the company.

State Commissions
State commissions are bodies that are established at the state level to perform specific functions and carry out certain tasks. These commissions are set up by the state government and play a crucial role in the governance and administration of the state.

Role of State Commissions
State commissions are responsible for various tasks and functions, including:

1. Policy Formulation: State commissions are involved in policy formulation and implementation. They provide valuable inputs and recommendations to the state government on various issues and help in the development and implementation of policies that benefit the state and its citizens.

2. Regulation and Oversight: State commissions carry out regulatory and oversight functions in specific areas. For example, there may be state commissions for human rights, women's rights, consumer protection, etc. These commissions ensure that the rights of individuals and groups are protected and that regulations are followed.

3. Dispute Resolution: State commissions often act as quasi-judicial bodies and are responsible for resolving disputes and grievances. They provide a forum for individuals and organizations to seek redressal for their grievances and ensure that justice is served.

4. Research and Analysis: State commissions conduct research and analysis on various issues and provide valuable insights and recommendations to the state government. They help in identifying problems, analyzing trends, and formulating effective solutions for the betterment of the state and its residents.

Establishment of State Commissions
State commissions are set up by the state government through the enactment of specific legislation. The state government has the authority to establish these commissions and define their powers, functions, and composition. The process of establishing a state commission involves the following steps:

1. Legislation: The state government introduces a bill in the state legislature to establish the commission. The bill goes through the legislative process, including debates, discussions, and voting.

2. Passage of the Bill: If the bill is passed by the state legislature, it becomes an act and is signed into law by the Governor. This act provides the legal framework for the establishment and functioning of the state commission.

3. Composition and Appointment: The act specifies the composition of the state commission, including the number of members, their qualifications, and the method of appointment. The state government appoints the members of the commission based on the provisions of the act.

4. Powers and Functions: The act also defines the powers, functions, and responsibilities of the state commission. It outlines the areas in which the commission has jurisdiction and the tasks it is authorized to perform.

Conclusion
State commissions are important bodies that are set up by the state government to perform specific functions and carry out certain tasks. These commissions play a crucial role in governance, policy formulation, regulation, dispute resolution, and research. The establishment of state commissions is done through the enactment of specific legislation by the state government.

Explanation:

Supreme Court of India's Jurisdiction:
- The Supreme Court of India is the highest judicial authority in the country.
- It primarily deals with constitutional matters and disputes between the Centre and States or between States.

Consumer Protection Act and Supreme Court:
- The Consumer Protection Act provides a three-tier machinery for redressal of consumer grievances.
- The Supreme Court generally does not entertain direct appeals from aggrieved consumers under the Consumer Protection Act.

Hierarchy of Courts:
- The hierarchy of courts in India starts from the District Courts, moving up to the High Courts and finally the Supreme Court.
- The Supreme Court is the court of last resort and generally deals with matters of constitutional importance or legal significance.

Appellate Process:
- Sameer went through the three-tier machinery under the Consumer Protection Act before deciding to appeal in the Supreme Court.
- Each tier has its own appellate process, and the Supreme Court is usually not the next step after tier three.

Conclusion:
- In Sameer's case, the Supreme Court may not entertain his appeal directly as the Consumer Protection Act provides for a specific appellate process through the three tiers.
- Sameer may need to explore other legal options or avenues for seeking redressal for his consumer grievance.

To put a stop to adulteration and corrupt practices of the manufacturers and traders, it is the duty of every consumer to be conscious of the quality of product they buy. They should look for the standard quality certification marks like ISI, Agmark, FPO, Woolmark, Eco-mark, Hallmark, etc. while making the purchases.

Understanding the Consumer Protection Act
Under the Consumer Protection Act, there are three tiers of authorities to address consumer grievances. Sameer's case involves these tiers, where he initially approached the first tier for his complaint regarding the faulty suspension of his newly purchased car.
Explanation of Tier One Authority
- District Commission: The first level of the consumer redressal mechanism is the District Commission. It handles cases where the claim amount does not exceed ₹1 crore. Sameer, having made multiple complaints to the car company without any response, is entitled to seek redress through this authority.
- State Commission: This is the second tier, which deals with cases that exceed the District Commission's limit but are less than ₹10 crores. Since Sameer started his journey at the District Commission, this tier was not his initial approach.
- National Commission: The highest tier, which deals with complaints exceeding ₹10 crores or appeals from the State Commission. Since Sameer first approached the District Commission, he did not start here.
Conclusion
In conclusion, Sameer appropriately approached the District Commission as his first tier authority for filing his complaint. The process of escalating the complaint through the various tiers ensures that consumers like Sameer can seek justice effectively when their grievances are not addressed by companies.

Consumers need to be organised in the form of consumer organisations which would take care of their interests.

Assertion (A): Many enlightened business firms have set up their own consumer service and grievance cells.
Reason (R): The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service.

The correct answer is option A. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Consumer service and grievance cells are established by many enlightened business firms to address consumer complaints and grievances. These cells act as a platform for consumers to voice their dissatisfaction with a product or service and seek resolution.

The reason behind the establishment of these cells is the consumer's right to file a complaint and be heard in case of dissatisfaction. In most countries, consumer protection laws provide consumers with certain rights, including the right to file a complaint and have their concerns addressed. These laws aim to protect consumers from unfair practices and ensure that they receive satisfactory products and services.

Consumer service and grievance cells are a proactive approach taken by businesses to demonstrate their commitment to consumer satisfaction. These cells provide a dedicated channel for consumers to report issues, seek assistance, and obtain solutions. By setting up these cells, businesses show their willingness to address consumer concerns, improve their products or services, and maintain a positive brand reputation.

Furthermore, these cells allow businesses to collect valuable feedback from consumers, which can help them identify areas of improvement and make necessary changes. Engaging with consumers through these channels also helps businesses build trust and loyalty, as consumers feel valued and listened to.

In conclusion, many enlightened business firms have established their own consumer service and grievance cells to address consumer complaints and grievances. This is in line with the consumer's right to file a complaint and be heard in case of dissatisfaction. These cells serve as important platforms for businesses to demonstrate their commitment to consumer satisfaction and improve their products or services.

The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of the Board in their ex-officio capacity also function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes.

Assertion: The MRTP Act is enacted to prevent monopoly in the market.
Reason: Monopoly is not good for any economy.

The correct answer is option A, which states that both the assertion and reason are true, and the reason is the correct explanation of the assertion.

Explanation:
MRTP Act:
- The MRTP Act, also known as the Monopolies and Restrictive Trade Practices Act, was enacted in India in 1969.
- The primary objective of the MRTP Act was to prevent the concentration of economic power and curb monopolistic and restrictive trade practices.
- It aimed to promote fair competition, protect consumers' interests, and ensure a level playing field for all market participants.

Assertion (A): The MRTP Act is enacted to prevent monopoly in the market.
- This assertion is true. The MRTP Act was specifically enacted to prevent the creation and abuse of monopolies in the market.
- Monopoly refers to a situation where a single firm or a group of firms have control over the supply of a particular product or service, giving them the power to set prices and limit competition.
- The MRTP Act aimed to prevent the establishment of such monopolies, which can lead to market distortions, unfair practices, and exploitation of consumers.

Reason (R): Monopoly is not good for any economy.
- This reason is also true. Monopoly is generally considered detrimental to an economy for several reasons:
- Lack of competition: Monopolies restrict competition, leading to reduced innovation, lower quality of products or services, and limited choices for consumers.
- Higher prices: Monopolistic firms can set prices at their discretion, often leading to higher prices for consumers.
- Inefficiency: Monopolies may lack the motivation to be efficient and innovative since they face limited competition.
- Barriers to entry: Monopolies can create barriers to entry for new firms, limiting market entry and stifling entrepreneurship.

Explanation of the Reason:
- The reason provided in the statement correctly explains why the MRTP Act was enacted.
- Monopolies are generally considered detrimental to economies due to the negative impacts mentioned above.
- By preventing the creation and abuse of monopolies, the MRTP Act aimed to promote healthy competition, protect consumer interests, and foster economic growth.

Therefore, both the assertion and reason are true, and the reason provides a correct explanation of the assertion.

The Consumer Protection Act, 2019 has defined the criteria of Consumer Disputes Redressal Commission (CDRCs). The District CDRC will entertain complaints when the value of goods or services is upto ₹ 1 crore.

Explanation:

Assertion (A) and Reason (R) Analysis:

- Consumer organisations such as NGOs and civil societies ensure check and balance against ill practices of business.
- This statement is true because consumer organisations play a crucial role in advocating for consumer rights, ensuring fair business practices, and holding companies accountable for any unethical behavior.

- CA, 1986 gave legal status to such organisations.
- This statement is false because the Consumer Protection Act (CPA) of 1986 in India does not specifically mention giving legal status to consumer organisations. However, the CPA does provide a legal framework for consumer protection and redressal of grievances.

Evaluation of the Statements:

- Both A and R are true, but R is not the correct explanation of A.
- While both statements are individually true, the Reason (R) does not directly explain the Assertion (A). The legal status of consumer organisations is not explicitly linked to the enactment of the Consumer Protection Act, 1986.

Therefore, the correct answer is A is false, but R is true as per the evaluation of the given statements.

State Commission
Sameer approached the tier two authority, which is the State Commission, under The Consumer Protection Act. The State Commission is the second level of the three-tier machinery established to address consumer grievances and disputes. Here, consumers can appeal against the orders of the district commission if they are not satisfied with the decision.

Role of State Commission
- The State Commission has the authority to hear appeals from the district commission and has a wider jurisdiction covering cases involving higher amounts.
- It is responsible for adjudicating on consumer complaints that are beyond the jurisdiction of the district commission.
- The State Commission plays a crucial role in providing justice to consumers and ensuring that their rights are protected under the Consumer Protection Act.

Sameer's Action
After being dissatisfied with the orders at the district commission level, Sameer decided to escalate the matter and appeal before the State Commission. This step was taken to seek a fair resolution to the issue he was facing with the faulty suspension of his car purchased from 'Lance Motors'.

Outcome
By approaching the State Commission, Sameer hoped to receive a just decision that would address his concerns and provide a suitable remedy for the faulty product he had purchased. The State Commission serves as an important platform for consumers like Sameer to seek redressal for their grievances and ensure that their consumer rights are upheld.

Cash memo is often referred as a paid bill for cash sales. It is a document stating cash received for the goods sold. Documents issued for purchased goods for cash is known as cash memo. A document issued by a trader for credit purchases is known as credit memo.

Explanation:

Assertion (A):
- The assertion states that the Right to safety under the Consumer Protection Act, 1986 is taken from the UN Convention on consumer protection.
- This statement is true as the Consumer Protection Act, 1986 was enacted in India to provide better protection of consumers' interests, and it drew inspiration from the UN guidelines on consumer protection.

Reason (R):
- The reason provided is that the Right to safety will ensure good quality of products to the consumer.
- This statement is also true as one of the fundamental rights of consumers is the right to safety, which means that consumers should be protected against goods and services that are hazardous to their health or safety. Ensuring safety will indeed lead to the provision of good quality products to consumers.

Therefore, both assertion (A) and reason (R) are true, and reason (R) is the correct explanation of assertion (A). The right to safety not only protects consumers from harm but also ensures that they receive products of good quality. Hence, option 'B' is the correct choice for this question.

In case aggrieved party is not satisfied with the order of the District Commission, he can appeal before the National Commission within 30 days of the passing of order.

It is the responsibility of a consumer to learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.

The main objectives of the Competition Act, 2002 are: to prevent monopolies and to promote competition in the market. to protect the freedom of trade for the participating individuals and entities in the market. to protect the interest of the consumer.