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The consumer protection act, 1986 - class-XII

Description: the consumer protection act, 1986
Number of Questions: 37
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Tags: organization of commerce and management commerce business studies consumer protection consumerism
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The consumer protection act provides for six consumer rights.

  1. True

  2. False


Correct Option: A
Explanation:

The Consumer Protection Act provides for six consumer rights and helps consumers in getting their grievances redressed for any shortcoming in the goods purchased or services availed.

Consumer protection has a moral justification for business.

  1. True

  2. False


Correct Option: A
Explanation:

True, consumer protection has a moral justification for business. It is the moral duty of every business to protect the interests of its customers. Business organisations must follow ethical values and any form of exploitation of the consumers such as unfair trade practices, adulteration, etc. must be avoided.

Situation in which cost object has any job, customer or product is known as

  1. cost application base

  2. sale application base

  3. price application base

  4. direct application base


Correct Option: A

A consumer consuming two goods will be in equilibrium, when the marginal utilities from both goods are ____________________.

  1. Maximum possible positive

  2. Minimum possible positive

  3. Equal

  4. zero


Correct Option: C

A _______ is generally understood as a person who uses or consumes goods or avails of any service

  1. retailer

  2. consumer

  3. trader

  4. seller


Correct Option: B

The desirable method of consumer protection is ___________.

  1. imposition of self regulation and discipline by the manufacturers and traders on themselves

  2. voluntary organisation of consumers

  3. spreading information and awareness regarding different products

  4. government legislation


Correct Option: A
Explanation:

The desirable method of consumer protection is imposition of self regulation and discipline by the manufacturers and traders on themselves. It helps to prevent fraudulent practices in the market place. It also promotes fair trade and accurate information in the market.

Consumer Welfare Fund is created by ______________.

  1. The Govt. of India

  2. The Reserve Bank of India

  3. NABARD

  4. World Bank


Correct Option: A

Which of the following award(s) is/are given every year by Government of India in the field of consumer protection?

  1. Swami Vivekananda National Award on Consumer Protection

  2. Swami Vivekananda National Woman Award on Protection

  3. Swami Vivekananda National Youth Award on Protection

  4. All the above


Correct Option: D
Explanation:
Following awards are given every year by Government of India in the field of consumer protection:a) Swami Vivekananda National Award on Consumer Protection
b) Swami Vivekananda National Woman Award on Protection
c) Swami Vivekananda National Youth Award on Protection
These awards are given in order to uphold the interests and rights of the consumers.

The Consumer Welfare Fund is created in _______.

  1. 1991

  2. 1992

  3. 1999

  4. 1994


Correct Option: B
Explanation:

The Consumer Welfare Fund is created in 1992.Consumer Welfare Fund is created by The Government of India. This welfare fund is created in order to promote the uphold the consumer's interest. It also addresses unfair practices prevalent in the market place.

What are the basic remedy/remedies for the settlement of disputes? 

  1. Changing the industrial system

  2. Mutual negotiations and consequent settlements

  3. Intervention of a third party

  4. All of the above


Correct Option: D

___________ are set up in each district by the concerned State Government.

  1. State Commission

  2. District Forums

  3. National Commission

  4. None of these


Correct Option: B
Explanation:

District Forums are set up in each district by the State Government concerned.
The District Forum consists of a President and two other members, one of whom should be a woman.
They all are appointed by the State Government concerned.
A complaint can be made to the appropriate District Forum when the value of the goods or services in question, along with the compensation claimed, does not exceed Rs. 20 lakhs

Rights of a consumer are protected under __________________.

  1. Consumer Protection Act, 1984

  2. Consumer Protection Act, 1988

  3. Consumer Protection Act, 1986

  4. Consumer Protection Act, 1982


Correct Option: C
Explanation:

The Consumer Protection Act, 1986 provides for six rights of consumers.
The consumer protection councils set up under the Act are intended to promote and protect the various rights of consumers.

The apex consumer court in India under the Consumer Protection Act of 1986 is referred to as_________.

  1. The Consumer Education and Research Centre

  2. The Consumer Unity and Trust Society

  3. National Consumer Disputes Redressal Commission

  4. None of the above


Correct Option: C

Which of the following is not a forum of Consumer Dispute Redressal System?

  1. Local forum

  2. District forum

  3. State Forum (State Commission)

  4. National Commission


Correct Option: A

Which one of the following is matched correctly?

  1. Consumer Promotion - Sales Meetings

  2. Dealer Promotion - Display Allowance

  3. Internal Sales Promotion - Free Samples

  4. None of the above


Correct Option: A

Which of the following is true?

  1. A consumer court setup under the Consumer Protection Act, does not have the power to punish for its contempt.

  2. Professional services are outside the purview of the CPA.

  3. A consumer court cannot force a person indulging is misleading advertising to confess his quit.

  4. None of the above.


Correct Option: A

As per the _____________ the consumer has right to acquire knowledge and to be a well informed consumer through life.

  1. Right to be heard

  2. Right to be informed

  3. Right to consumer education

  4. Right to choose


Correct Option: C
Explanation:

The consumer has a right to acquire knowledge and to be a well informed consumer throughout life.
He should be aware about his rights and the reliefs available to him in case of a product or service falling short of his expectations. Many consumer organisations and some enlightened businesses are taking an active part in educating consumers in this respect.

A consumer has a right to file a complaint and to be heard in case of dissatisfaction with goods or services according to the ___________.

  1. Right to be heard

  2. Right to choose

  3. Right to Seek redressal

  4. None of these


Correct Option: A
Explanation:

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 that many enlightened business firms have set up their own consumer service and grievance cells.
Many consumer organisations are also working towards this direction and helping consumers in redressal of their grievances.

The state commissions are set up in each state by ___________________

  1. Central Government

  2. State Government

  3. High court

  4. Supreme court


Correct Option: B
Explanation:

The state commissions are set up in each state by State Government.
Each State Commission consists of a President and not less than two other members, one of whom should be a woman.
They are appointed by the State Government concerned.
A complaint can to be made to the appropriate State Commission when the value of the goods or services in question, along with the compensation claimed, exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore.
The appeals against the orders of a District Forum can also be filed before the State Commission.

Which act safeguards and provides reliefs to the buyers of the goods in case the goods purchased do not match with express or implied conditions or warranties?

  1. Sale of goods Act, 1930

  2. Consumer protection Act, 1986

  3. The Indian Contract Act,1872

  4. None of these


Correct Option: A
Explanation:

The Sale of Goods Act came into existence on 1 July 1930.
It is a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for price.
It is applicable all over India, except Jammu and Kashmir.
The goods are sold from owner to buyer for a certain price and at a given period of time.
This act safeguards and provides reliefs to the buyers of the goods in case the goods purchased do not match with express or implied conditions or warranties.

___________ play an important role in educating consumers about their rights and providing protection to them.

  1. Consumer awareness

  2. Consumer organisations

  3. Government

  4. Business associations


Correct Option: B
Explanation:

Consumer organization play an important role in educating consumers about their rights and providing protection to them. These consumer organization also promote consumer awareness about the fraudulent practices in the market place.

The _________ can protect the interests of the consumers by enacting various legislations.

  1. government

  2. business

  3. individual

  4. company


Correct Option: A
Explanation:

The government can protect the interests of the consumers by enacting various legislations. Government make policies in order to protect the rights of the consumers. It also helps to prevent the fraudulent practices in the market place.

Under __________, a consumer is well informed about his rights and the reliefs available to him, is in a a position to raise his voice against any unfair trade practices or unscrupulous exploitation.

  1. business associations

  2. consumer awareness

  3. consumer organisations

  4. government


Correct Option: B
Explanation:

Under consumer awareness, a consumer is well informed about his rights and the reliefs available to him, is in a a position to raise his voice against any unfair trade practices or unscrupulous exploitation. Consumer awareness is of utmost necessary to uphold the rights of the consumers.

The Consumer Protection Act, 1986 provides for _______-tier machinery at the district, state and national levels for redressal of consumer grievances.

  1. one

  2. two

  3. three

  4. four


Correct Option: C
Explanation:

The Consumer Protection Act, 1986 provides for three- tier machinery at the district, state and national levels for redressal of consumer grievances. The most important regulation which provide protection to consumers is the Consumer Protection Act. This Act helps to protect the interests and rights of the consumers. It also helps to prevent the fraudulent practices in the market place.

Which of the following is not a way of consumer protection?

  1. Self Regulation by Business

  2. Business Associations

  3. Consumer Awareness

  4. Business


Correct Option: D
Explanation:

Business is not a way of consumer protection. It is not a way to uphold the interests and rights of the consumers. Business can be defined as an activity where buying and selling take place on a daily basis.

The draft form of a proposed statute law is called:

  1. A writ

  2. A Bill

  3. A draft

  4. An Act


Correct Option: B
Explanation:

The draft form of a proposed statute law is called a bill. In other words, a bill refers to a statement which specifies the amount owed for goods and services.

Which is not an option for the victim of a breach of a condition?

  1. Accept the goods and lose the right of discharging the contract.

  2. Consider the breach of condition a breach of warranty and accept the goods.

  3. Keep the goods and lose any right to a remedy.

  4. Sure for damages but keep the goods.


Correct Option: C
Explanation:

Keep the goods and lose any right to a remedy- this is not an option for the victim of a breach of a condition. Legally, 'breach of a contract' refers to a situation when any one party fails to meet the conditions made on the contract.

Buyers can exercise high bargaining power over their suppliers if: __________.

  1. the volume they buy accounts for a large percentage of their suppliers sales.

  2. there are few buyers in the market.

  3. they have many suppliers to choose from.

  4. all of the above.


Correct Option: D
Explanation:
Buyers can exercise high bargaining power over their suppliers if the following situations occur:
a) the volume they buy accounts for a large percentage of their suppliers sales.
b) there are few buyers in the market.
c) they have many suppliers to choose from.

You are writing a report on the level of customer satisfaction at each of your three locations. Which of the following is the BEST title for your report?

  1. Why customers are happy with our service

  2. Not all customers are happy with our service

  3. Customers have interesting things to say

  4. Results of customer service survey at three locations


Correct Option: D
Explanation:

Results of customer service survey at three locations- this would be the best title of the report.  If a report is to be written on the level of customer satisfaction at each of the three locations then, the results of all three consumer's reaction should be highlighted.

Which of the following is appropriate for reports?

  1. Avoid using headings and transitions

  2. Introduce the visuals in the document

  3. Use a very formal style to impress readers

  4. Use slang and contractions


Correct Option: B
Explanation:

Introduce the visuals in the document is appropriate for reports. This will help faster retention of information by the audience. In a way visuals are more appealing for the audience to watch.

A thought of new product is examined amongst potential consumers to determine consumer Acceptance at which state? 

  1. Concept

  2. Test marketing

  3. Product development

  4. Commercialization


Correct Option: A
Explanation:

A thought of new product is examined among potential consumers to determine consumer acceptance at the concept state. New product is designed according to the need of the potential buyers. Thus, at the concept stage or planning stage, a thought of new product is examined.

A distinct advantage that provides a firm to contribute greatly to customer benefits in the end products is known as _____________.

  1. competitive advantage

  2. competence

  3. core competence

  4. value addition


Correct Option: C
Explanation:

A distinct advantage that provides a firm to contribute greatly to customer benefits in the end products is known as core competence. It also provides long term competitive advantage. Thus in turn, the consumers get benefited.

Consumer's market is a type of __________ market.

  1. buyer's

  2. sellers

  3. distributor's

  4. none of the above


Correct Option: A
Explanation:

Consumer's market is a type of buyer' market as in this market people buys goods mainly for the consumption purpose. Consumer refers to a person who consumes goods with his given income and prices of the goods and buyer is a person who buys the goods.

Distribution channel aims of moving products from producer to ___________.

  1. ultimate consumer

  2. retailers

  3. stockists

  4. brokers


Correct Option: A
Explanation:

Distribution channel aims of moving products from producer to ultimate consumer. Distribution channel refers to the pathway of several persons by which the finished goods get transferred to the final consumer. Wholesaler is an agent of the distribution channel of the products.

Dividing the total market into several groups on the basis of consumer characteristics is known as:

  1. Market segmentation

  2. Market Development

  3. Market Research

  4. None of the above.


Correct Option: A
Explanation:

Dividing the total market into several groups on the basis of consumer characteristics is known as market segmentation. In this process, potential consumers are divided into different groups. Market segmentation is done to facilitate market research.

Match the following:

A. Various combinations of two commodities that a consumer can purchase 1.  Indifference map
B. Various combinations of two commodities that give consumer equal satisfaction 2. Indifference curve
C.  A set of indifference curves 3. Budget line
D. Point of agency of a budget line and an indifference curve 4. Consumer's equilibrium
  1. A-1, B-2, C-4, D-3

  2. A-4, B-3, C-2, D-1

  3. A-2, B-3, C-4, D-1

  4. A-3, B-2, C-1, D-4


Correct Option: D
Explanation:
a) Various combinations of two commodities that a consumer can purchase is depicted by the budget line.
b) Various combinations of two commodities that give consumer equal satisfaction is depicted by an indifference curve.c) A set of indifference curves is known as indifference map.d) Point of agency of a budget line and an indifference curve is known as consumer's equilibrium point.

____ account for the bulk of call centre activities with 24 x 7 handling of inbound customer queries and grievances and out-bound activities customer surveys, payment follow up, and telemarketing.

  1. Agent care

  2. Customer care

  3. Seller care

  4. Manufacturers care


Correct Option: B
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