3 Marks Each

Question 13 Marks

How is consumer awareness created?

Answer

The process of making consumers aware about their rights related to the products and services they buy is called consumer awareness.
Today, many items having similar features but belonging to different brands are . available in the market.
Illiterate, ignorant and unaware consumers who do not have complete knowledge or information about such things get fooled easily by buying fake or poor quality goods.
There are several middlemen between producers and consumers and so the consumers get exploited in many ways.
The system which sees that the goods and services the consumer buys are of good quality, proper weight and at a reasonable price is known as consumer protection.
Consumer protection is a movement which is undertaken to make consumers aware about their rights.
Consumer protection is a well-organized programme for the people of the society so that they become mature consumers. The programme aims at controlling anti-consumer activities, exploitation and deception that the consumers face.
Every year, 15th March is celebrated as World Consumer Rights Day.

Question 23 Marks

Define consumer and state who can complaint to the disputes settlement institution?

Answer

Meaning of consumer:
According to the Consumer Protection Act, a consumer is “A person who receives goods or services against an exchange, who pays or agrees to compensate partly or fully or promises to compensate on a future date or has participated in some future payment plan. Any user of the product or service who uses it on the basis of the permission of the purchaser is a consumer. But the one who purchases on a resale basis or for further production is not included under the definition of a consumer.”Any of the following can complain to the dispute settlement institutions:

Consumer himself
Registered consumer union on behalf of consumer
State government or central government on behalf of consumers
Legal heirs or representatives of deceased consumers

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Question 33 Marks

What are the rights made available to consumers as per the consumer protection act?

Answer

Rights of consumer :

Under consumers protection act total six rights are availed.
Consumer forum is appointed which protects rights of the consumers and provides encouragement.

Safety :
It provides protection against products and services causing harm to hygiene and human life e.g. Tobacco, cigarette, Gutakha is harmful to human life so warning against its use should be given to consumers.
It is their right to get warning.
Information :
Consumer has the right to have complete information regarding the product or service he desires to buy.
E.g. Ingredients of the products, price, date of manufacturing, expiry dates quantity, purity, quality etc.
It is statutory to indicate all these details on the label or packing or the product.
Choice :
Every customer has right to choose product or service.
He is at liberty to buy the product or service from various things at competitive price.
Due to customer’s right to choose producers, it ring variety in size, price, weight of the product and services and provide wide range of selection to consumers.
Representation :
Consumer has legal right to represent his positive or negative opinion about desired product.
He can suggest too.
Business units set up redressal cell for the complaints of their customers.
Redressal :
Under consumers protection act, many complaints are received and customers do get much relief.
E.g. Replacement of goods or services, and right to complaint and redressal.
Consumer education :
Every consumer has the right to get right quality, quantity at the given time, place and at an ideal time.
To get assurance of all these things, he has right to education too.
Many business units and institutions associated to consumer protection are active to educate consumers regarding their rights.
Rights favored by united nations organization $(U.N.O) :$
Uno has issued a directive recommending two more rights :
Primary needs and Hygienic environment right is favored.
Primary $($Basic Needs$) :$
Basic needs means product and services required for decent living and right get this facility.
Hygienic environment :
Hygienic environment means protection from various types of pollution so that everybody can lead quality life.
Every individual has right to pollution free air, water, food and land.

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Question 43 Marks

State the importance of consumer protection from the view point of business.

Answer

Importance of Consumer Protection from the Business Point of View :

Consumer should be protected in current competitive market.
Consumer interest should be protected.
Business units too are active in providing maximum satisfaction to consumers and to protect them against fraud and fake goods.
Importance of consumer protection from business view point is as below:

$(1)$ Use of resources and wealth :

Business is started and developed with the resources of community.
It is the responsibility of business firm to provide the product through which the Standard of living of the consumer raises.

$(2)$ Social Responsibility :

Business holds social responsibility towards all groups having interest in business.
Consumer too is a part of community.
Like other groups, business units should fulfill its responsibility towards consumers.

$(3)$ Part of Community :

Every Business is a part of community.
Each trader is a customer of bigger trader or producer.
He should not be exploited.
Consumer's trust should be won.

$(4)$ Impression on community :

The activities of business firm create favourable or adverse effect on community.
Through advertisement effect on lifestyle, habits, food-habits, concept ideology etc are affected.
So business units are responsible to hear moral responsibility and form just and fair policy in public interest.

$(5)$ Consumers Protection is good for Business :

Consumer - Business firm find it necessary to protect their objectives of business.
Without knowing the taste of consumer, if the product is manufactured, Consumer will turn to competitors products.
So it is necessary to protect consumer and to know his liking preferences and demand for developed and interest of business.

$(6)$ Principle of Trusteeship and Consumer Protection :

According to Gandhi's principle of trusteeship, those who are given wealth by society, should utilise it for poor and needy people of the society.

Gandhiji presents his views on consumer saying - "Consumer is the most important person in business. He is not an outsider but an integral part of business. Consumers are not business based. He is not an obstacle in our business but purpose of our business. He is not an outsider in our business but a part of our business. We are not favouring him by providing goods desired by him but he favours us by giving opportunity to do so."

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Question 53 Marks

Explain : “To protect consumer and to manufacture as per his desire or demand is in the interest of business.”

Answer

Basic condition of competitive market is that business should reach to the consumer.

Product should be manufactured according to their demand and desire.
If the producer does not accept this, consumer will purchase from his competitors.
It is in the interest of business to protect customer, to understand his desire and demand and to develop business accordingly.
Satisfied consumer re-purchases as well as informs others to buy the product or service.
As a result new consumer are attracted towards the goods or service.

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Question 63 Marks

Explain government and non-government institutions functioning in the interest of consumer protection. Mention their functions.

Answer

Working of consumers union and Non-government organizations:

To spread awareness among consumer regarding their rights by publishing pamphlets, booklets etc.
To organize seminars to educate consumer.
Quality of product or service be tested in authorized laboratory and bring its result to consumers.
The quality of the product / service is compared to the same of other product / service.
Consumer be educated regarding legality and when required he should be given legal advice.
To help consumer to protest against unethical, exploiting, unjust and unfair sales policy of sales department.
To register a complaints in consumer court to protect the interest of consumer.
To collect and publish information or release films for consumer education.
To organize consumer education programs to educate students regarding consumer protection.
To spread awareness about adulteration in food.
To support the institutions working for consumer awareness.
Many organization are working for consumer awareness such as
$CERC –$ Ahmedabad.
$CPC -$ Ahmedabad.
$VOICE -$ New Delhi.
$CGSI -$ Mumbai.

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OCM 3 Marks Each

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