business studies consumer protection notes class 12

Consumer Protection..........short and easy notes for board exam.

1. What do you mean by consumer protection? What are its importance?
> Consumer Protection means to protect the consumer right against anti-consumer trade practicese by the producers or sellers.
The following are the specific reasons that make Consumer Protection absolutely essential;

• A consumer is expected to pay for what he get in return. They should not be expected to pay for what they are not getting. Therefore, consumer need to be protected against overcharging of prices.
• It help the consumer to seek justice from the Court against the product.
• Safety from unstandardise product.
• It helps to create tension free atmosphere for the consumer.
• Compensation for inconvenience.
• The businessman get best support from all the party.

2. What do you mean by consumer rights?
> under consumer protection act 1986 as amendment in 1993, provides the following rights to the protection of consumer;

1. Right to safety- consumer have right to protect against the marketing of goods and services which are hazardous to life or property or which are defective.
2. Right to Information- consumer has the right to be informed about the quality, quantity, potency, purity and standard of goods and services.
3. Right to choose- every consumer has the right to choose the goods and services of his or her liking.
4. Right to be heard- every consumer has the right to hear and right to presentation.
5. Right to seek redressal- the consumer have the right to seek redressal against unfair trade practices.
6. Right to consumer education- consumers can seek information about the existing act and Agencies, set up for their protection.

                              Besides the above six rights, two additional rights have been recommended by the United Nation organisation.

1. Right to basic needs- according to this right every citizen has the right to fulfill the basic needs like food, clothes, Shelters, Health Care, and education.
2. Right to healthy environment- all the citizens should we provided with suitable moment where people can work fearlessly.

3. What do you mean by a responsibilities or duties of a consumer?
> Consumer should have the following duties;

• Consumer education- obtaining consumer education is the right as well as duty of the consumers.
• Wise buying- means carefully decide what they want to buy.
• Watch-dog approach- vigilant about the quality of goods and services.
• Supportive documents- consumers should keep the supportive documents like cash memo, guarantee paper, etc.
• Literacy and education- ability to read and write.
• Must discourage black marketing, hoarding and choose legal goods and services.
• A consumer must file a complaint even for a small loss.

4. What do you mean by district forum?
>District forum deals with all complaints of goods and services does not exceed 20 lacs. It consists of president and two other members. The president is appointed by the state government. Any person who is against order of district forum can appeal in state Commission.

5. What do you mean by State Commission?
> State commission is that which deals with cases where the value or claim for compensation exceeds 20 lacs and up to 1 crore. It consists of president and two other members. The president is appointed by the state government. Any person who is not agree by the order can go to the National Commission.

6. What do you mean by National Commission?
> National Commission to take up all cases exceeding the value of 1 crore rupees. It consists of president

and any other four members. Any person who is disagree by the order can go to the supreme court.

7. What do you mean by consumer?
> A consumer is any person who buy any product or hire any services. The product or services must be paid either fully or partially. The services covered by the consumer protection act include supply of electricity, banking, financing, Airlines, repair, transport, communication, constitution and medical treatment, etc.

8. What do you mean by consumer protection act? What are its features? What are its objectives?
> One of the most important step taken by the government to protect the interest of consumers is consumer protection act. This act came into forces from 1st July 1987.
Following are its features;

• Applies to all goods and services unless specifically.
• Covers all the sectors whether private, public or cooperative.
• To solve the consumer disputes.
• It provide three tier judicial machinery.

Following are its objectives;

• Consumer Protection Act passed in 1986. It was formed to safeguard the interest of consumers.
• Consumer Protection Act is applicable in whole India.
• Consumer disputes settlement Agencies are district forum, state Commission and national commission.
• Consumer Protection Act has been enforced in India from 15th April 1987.
• Consumer Protection Act was passed in 1986.
• District forum can settle disputes upto 20 lakh rupees.
• National Commission can settle disputes above 1 crore rupees.
• There are three machineries for settlement of consumer disputes

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