Students must practice these AP Inter 2nd Year Commerce Important Questions 5th Lesson Consumer Protections to boost their exam preparation.
AP Inter 2nd Year Commerce Important Questions 5th Lesson Consumer Protections
Long Answer Questions
Question 1.
Explain the composition and jurisdiction of State Commission.
Answer:
State Commission is established by the state governments in their respective states. It consists of a president and two members, one of them shall be a woman. It is headed by a person of the level of High Court Judge.
A written complaint can be filed before the State Commission where the value of goods or services and the compensation claimed exceeds Rs. 20 lakh but does not exceed Rs. 1 crore.
In case the aggrieved party is not satisfied with the order of the State Commission, he can appeal to the National Commission within 30 days of passing of the order.
Question 2.
Describe the rights of a consumer as per CPA 1986.
Answer:
We have observed so many cases of consumer exploitation even then businessman is aware of his social responsibilities. Government of India provided six rights to all the consumers. They are –
- Right to Safety: Consumers have the right to be protected against the marketing of goods and services which are dangerous to life and property.
- Right to Information: The consumer has right to get information about the quality, quantity, purity, standard and price of the goods and services from the producers.
- Right to Choice: Every consumer has right to choose the goods and services of his/her likings. The suppliers should not force the customer to buy a particular brand only.
- Right to Consumer Education: It is the right of the consumer to acquire knowledge and skill to be informed to customer. It is easier for literate consumers to know their rights and take actions.
- Right to Seek Redressal: The consumer has the right to get compensation or seek remedy against unfair trade practices or any other exploitations.
- Right to be Heard / Right to Representation: The consumer has the right to represent himself or to be heard. If consumer has been exploited against the product or service, then he has the right to be heard.
Question 3.
What are the responsibilities of a consumer?
Answer:
Consumer exploitation will stop only when consumer will come forward to safeguard his own interest. Consumer responsibilities are given below.
- Be quality conscious: The manufacturers and traders will stop adulteration and corruption practices when customer buys quality products with ISI, Agmark, Hall-mark, etc.
- Beware of misleading advertisements: The advertisement often exaggerates the quality of products. Hence customers should carefully check the product or ask the users before to buy.
- Responsibility to inspect a variety of goods before making selection: The consumer should inspect a variety of goods before buying the goods and services regarding their quality, price, durability, sales services, etc.
- Collect proof of transaction: The consumer should insist invoice relating to purchase of goods and preserve it carefully. Invoice is required for filing a com-plaint. In case of durable goods they will give warranty/ guarantee card along with the product. It is duly signed, stamped and dated and kept safely till guarantee period is over.
- Consumers must be aware of their rights: The consumers must be aware of their rights while buying goods and services.
- Complaint for genuine grievances: If consumers are dissatisfied with the product, you can ask company for redressal of your grievances. If company does not respond, then you can approach the forums for claim.
- Proper use of product: The customer must use and handle the product properly but not recklessly.
Apart from the above responsibilities, consumers should be conscious of their duty towards other consumers, society, etc.
Question 4.
Explain the redressal mechanism available to consumers under the Consumer Protection Act, 1986. [May ’22; Mar. ’18,’17 (AP)]
Answer:
The Consumer Protection Act (CPA), 1986 made a provision for the establishment of appropriate machinery fo.r the settlement of consumer disputes at various levels at district, state and national level. They are 1. District Forum, 2. State Commission, 3. National Commission.
The above judicial machinery observed the principles of natural justice.
District Forums: District Forum is established by the State Government in each district by notification. It consists of a chairman and two other members, one of them shall be a woman candidate. They are headed by the person of the rank of a District Judge.
A written complaint can be filed before the District Consumer Forum, where the value of goods or services and the compensation claimed does not exceed Rs. 20 lakhs.
If a consumer is not satisfied by the decision of the District Forum, he can challenge the same before the State Commission, within 30 days of the order.
State Commission: State Commission is established by the state governments in their respective states. It consists of a president and two members; one of them shall be a woman. It is headed by a person of the level of High Court Judge.
A written complaint can be filed before the State Commission where the value of goods or services and the compensation claimed exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore.
In case the aggrieved party is not satisfied with the order of the State Commission, he can appeal to the National Commission within 30 days of passing of the order.
National Commission: The National Commission was constituted by the central government. It is the highest authority to settle the consumer disputes at the national level.
In consists of a president and not less than four members, one of them shall be a woman. All are appointed by the central government, commission is headed by Judge of the Supreme Court.
All the complaints pertaining to those goods and services and compensation value more than Rs. 1 crore can be filed directly before the National Commission.
An appeal can be filed against the order of the National Commission to the Supreme Court within 30 days from the date of order passed.
Question 5.
Who can file a complaint, what complaints can be filed, where to file the complaint, how to file the complaints redressal of grievances under the Consumer Protection Act, 1986?
Answer:
Who can file a complaint?
The following persons can file a complaint under Consumer Protection Act, 1986.
- A consumer
- Any recognised voluntary consumer associations
- The Central or State Government
- One or more consumers having same interest
- Legal heir in case of death of a consumer
What complaints can be filed?
A consumer can file a complaint relating to any one or more of the following.
- An unfair trade practice adopted by any trader
- Goods bought by him suffer from one or more defects
- Services hired or agreed to be hired suffer from any deficiency in any respect
- Price charged in excess of displayed in the price list
- Goods and services which are hazardous to life and safety when used.
Where to file a complaint?
If the value of goods and services and the compensation claimed does not exceed Rs. 20 lakh, the complaint can be filed in the District Forum; if it exceeds Rs. 20 lakh but does not exceed Rs. 1 crore, the complaint can be filed before the State Commission; and if it exceeds Rs. 1 crore, the complaint can be filed before the National Commission.
How to file a complaint?
A complaint can be made in person or by any authorised agent or by post. It can be written on a plain paper duly supported by documentary evidence in support of the allegation. It should also contain the nature, description and address of the complainant as well as the opposite party, and so also the facts relating to the complaint and when and where it arose.
Very Short Answer Questions
Question 1.
Give the meaning of Consumer. [Mar. ’17(AP)]
Answer:
A consumer is a person who consumes or uses consumable or durable goods or services, to be called “consumer’.
Under the Consumer Protection Act, 1986, the word ‘consumer’ has been defined,
- One who buys any goods for consideration.
- Any user of such goods other than the person who actually buys it.
- Provided such use is made with the approval of the buyer.
Question 2.
What is consumerism?
Answer:
Consumerism is a social movement seeking to augment the rights and powers of buyers in relation to sellers.
Consumerism is concerned with reality in advertising, safety and quality ingredients and full and reliable labelling. It is a growing social force which makes consumers to be aware of their rights.
Question 3.
What is meant by consumer protection? [Mar. ’18(AP)]
Answer:
Consumer protection means safeguarding the interest and rights of consumers. Con-sumer is exploited by the following means:
- Sale of adulterated goods
- Sale of spurious goods
- Sale of sub-standard goods
- Sale of duplicate goods
- Use of false weights and measures
- Hoarding and black-marketing leading to scarcity and raise in price
- Charging more than the maximum retail price fixed for the product
- Supply of defective goods
- Misleading advertisements
- Supply of inferior services.
Question 4.
District Forums: [Mar. 2020,’19; May ’17(AP)]
Answer:
District Forum is established by the State Government in each district by notification. It consists of a chairman and two other members, one of them shall be a woman candidate. They are headed by the person of the rank of a District Judge.
A written complaint can be filed before the District Consumer Forum, where the value of goods or services and the compensation claimed does not exceed Rs. 20 lakhs.
If a consumer is not satisfied by the decision of the District Forum, he can challenge the same before the State Commission, within 30 days of the order.
Question 5.
State Commission:
Answer:
State Commission is established by the state governments in their respective states. It consists of a president and two members; one of them shall be a woman. It is headed by a person of the level of High Court Judge.
A written complaint can be filed before the State Commission where the value of goods or services and the compensation claimed exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore.
In case the aggrieved party is not satisfied with the order of the State Commission, he can appeal to the National Commission within 30 days of passing of the order.
Question 6.
National Commission:
Answer:
The National Commission was constituted by the central government. It is the highest authority to settle the consumer disputes at the national level.
In consists of a president and not less than four members, one of them shall be a woman. All are appointed by the central government, commission is headed by Judge of the Supreme Court.
All the complaints pertaining to those goods and services and compensation value more than Rs.. 1 crore can be filed directly before the National Commission.
An appeal can be filed against the order of the National Commission to the Supreme Court within 30 days from the date of order passed.
Question 7.
Who is consumer in the opinion of Mahatma Gandhi?
Answer:
Mahatma Gandhi, the father of nation, attached great importance to what he described as the “Poor Consumer”, who according to him should be the principal beneficiary of the consumer movement. He said: “A consumer is the most important visitor on our premises. He is not dependent on us, we are on him. He is not an interruption to our work; he is the purpose of it. He is not an outsider to our business; he is a part of it. We are not doing him a favour by serving him; he is doing us a favour by giving us an opportunity to do so.”