DB g) Consumer Protection Act Questions rg eee ea arin - Start Complete Exam Preparation eR Rete Giese roca CO tie Coreen Download App MCQ Question 1 View this Question Online > Which one of these are consumer rights specified in the Consumer Protection Act, 1986? 1. Right to safety 2. Right to choose 3. Right to Consumer education 4, All of the above Answer (Detailed Solution Below) Option 4: Alll of the above Consumer Protection Act MCQ Question 1 Detailed Solution The Consumer Protection Act, 1986 made provisions for the establishment of Consumer Protection Councils and other authorities for resolving consumers’ disputes. The Consumer Protection Councils would be set up at national and state levels (Section 6 of Consumer Protection Act), © Key Points The Consumer Protection Act provides for six rights of consumers. The consumer protection councils set up under the Act are intended to promote and protect the verious rights of consumers.* Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life and health. * Right to be Informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc, + Right to Choose: The consumer has the freedom to choose from a variety of products at competitive prices. * Right to be Heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or service. * Right to seek Redressal: The consumer has a right to get relief in case the product or service falls short of his expectations. * Right to Consumer Education: The consumer has a right to acquire knowledge about the product and to bea well-informed consumer throughout life. ‘Thus, it is clear that the government enacted the Consumer Protection Act as the Right to choose, educate, and safety. ee ane eet) PS ea Ordon ele CMe eli Col) ect eens resinous Para D> Download App MCQ Question 2 ‘View this Question Online > Which one of the following is NOT correct according to the Consumer Protection Act? 1. District Forum shall consist of a lady social worker 2. State Commission shall consist of a person who is or has been a Judge of a High Court 3. District Forum shall consist of four members 4. National Consumer Disputes Redressal Commission shall consist of a person who is or has been a Judge of the Supreme CourtAnswer (Detailed Solution Below) Option 3:3 Consumer Protection Act MCQ Question 2 Detailed Solution The Consumer Protection Act, 1986: 1. An important landmark in the history of consumer protection legislation in India is the consumer protection Act,1986, which provides for a system for the protection of consumer rights and the redressal of consumer disputes. 2. The Consumer Protection Act, 2019 received the assent of the President on 9th August 2019, and subsequently got notified on 20.07.2020. The old Act namely Consumer Protection Act, 1986 will be replaced by a new Act namely Consumer Protection Act,2019. Consumer Disputes Redressal Agencies 1. A District Forum in each State and 2. A State Commission in each State and 3. A National Commission. + The National Commission was established by the Central Government in August 1988. + The responsibility for the establishment of the other two agencies. + The prior approval of the Central Government rests with the respective State Governments. Cpxkey-Points ‘The District Forum shall consist of: 1. A person who is has been, or is qualified to be a District Judge nominated by the State Government who shall be its President, 2. A person of eminence in the field of education, trade or Commerce, and 5. A lady social worker. > Each State Commission shall consist of a person who is or has been a Judge of a High Court, appointed by the State Government (who shall be its President) and two other members who shall be a person of ability, integrity, and standing and have adequate knowledge or experience of or have shown capacity in dealing with a problem relating to economic, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman. > The National Commission shall consist of a person who is or who has been a Judge of ‘Supreme Court, appointed by the Central Government (who shall be its President) and two other members who shall be a person of ability, integrity, and standing and have adequate knowledge or experience of or have shown capacity in dealing with problem-related to economic, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman.& eee ec Start Complete Exam Preparation aCe Dar ces Dorie Download App pao ces Pa ey Dead MCQ Question 3 View this Question Online > The Consumer Protection Bill, 2018 has replaced the Consumer Protection Act in which of the given years? 1. 1981 2. 1986 3. 1991 4. 1978 Answer (Detailed Solution Below) Option 2: 1986 ‘Consumer Protection Act MCQ Question 3 Detailed Solution The correct answer is 1986. + To make modern amendments relating to consumer protection and enhance the scope of the existing laws so that it becomes more effective Consumer Protection Act 2018 has replaced the ‘old Consumer Protection Act 1986, © Key Points ~ It was passed in Lok Sabha in December 2018. * New definitions such as the definition of e-commerce have been added into the new act. + The definition of consumers now includes buying goods and services from online platforms like Flipkart, Airbnb. * Consumer Protection Act 2018 came into force on 20 July 2019 establishing the Central Consumer Protection Act promoting quality for protection, promotion, and enforcement of rights of consumers.Ka eRe arn Peetu) Start Complete Exam Preparation Ree es GipeeS =) ace rears CJ . pir Download App MCQ Question 4 View this Question Online > Which of the following sections of Companies Act, 2013 facilitates amalgamation, absorption and reconstruction of companies? 1.319 : 2.320 3.410 4.502 Answer (Detailed Solution Below) Option 1:1 Consumer Protection Act MCQ Question 4 Detailed Solution Section 319 of Companies Act, 2013 facilitates amalgamation, absorption, and reconstruction of companies. Cp key-Points Section 319 of Companies Act 2013- Power of Company Liquidator to accept shares, etc., as consideration for the sale of property of the company1. Where a company (the transferor company) is proposed to be ors in the course of being, wound up voluntarily and the whole or any part of its business or property is proposed to be transferred or sold to another company (the transferee company), the Company Liquidator of the transferor ‘company may, with the sanction of a special resolution of the company conferring on him either a general authority or an authority in respect of any particular arrangement — = receive, by way of compensation wholly or in part for the transfer or sale of shares, policies, of other like interest in the transferee company, for distribution among the members of the transferor company, or + enter into any other arrangement whereby the members of the transferor company may, in lieu of receiving cash, shares, policies or other like interest or in addition thereto, participate in the profits of, or receive any other benefit from, the transferee company. [additional Information 1. Section 320- Distribution of property of the company 2. Section 410- National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT), with effect from 1st June 2016. 3. Section 502- Appointment of liquidator. a Cg Tere areca Eoe clan Start Complete Exam Preparation Cie hoc Res PCr Creag Paonia D> Download Aap MCQ Question 5 View this Question Online > In July 2020, the Government of India established the Central Consumer Protection Authority under the Consumer Protection Act, 1. 2020 2. 2018 3. 2015 4. 2019Option 4: 2019 Consumer Protection Act MCQ Question 5 Detailed Solution The correct answer is 2019. © Key Points + The government of india established the Central Consumer Protection Authority under the Consumer Protection Act 2019. + The authority is being constituted under Section 10(1) of The Consumer Protection Act, 2019. + The 2019 Act replaced The Consumer Protection Act, 1986, and seeks to widen its scope in addressing consumer concerns. The 2019 Act recognises offences such as providing false information regarding the quality or quantity of a good or service and misleading advertisements. * This Is not specified in the notification of the Act. Regarding food, an official said the CCPA will ensure that all standards on packaged food items set by regulators such as the FSSAI are being followed. * Under Section 20 of The Consumer Protection Act, the proposed authority will have powers to recall goods or withdrawal of services that are dangerous, hazardous or unsafe. Important Points + For manufacture, selling, storage, distribution, or import of adulterated products, the penalties are: > If an injury is not caused to a consumer, fine up to Rs 1 lakh with imprisonment up to six months. > If an injury is caused, fine up to Re 3 lakh with imprisonment up to one year If grievous hurt is caused, fine up to Rs 5 lakh with imprisonment up to 7 years > In case of death, fine of Rs 10 lakh or more with a minimum imprisonment of 7 years, extendable to imprisonment for life. Bee faecal Pron Start Complete Exam Preparation a rere seul (rises MCQ Question 6 View this Question Online > Which of the following settles the consumer disputes at district level?t. eesotulo veut 2. District Court 3. District Forum 4. District Collector Answer (Detailed Solution Below) Option 3: District Forum Consumer Protection Act MCQ Question 6 Detailed Solution The Consumer Protection Act, 1986 is one of the benevolent social legislation intended to protect the large body of consumers from exploitation. + Ithhas become the vehicle for enabling people to secure speedy and in-expensive Redressal of their grievances + The Agencies are set up under the Consumer Protection Act 1986 at District, State, and National level to provide simple and inexpensive quick redressel against consumer complaints, where a Consumer can file a complaint in the consumer court against eny defective goods purchased or deficient service rendered including restrictive/ unfair trade practice adopted by any trader/person within two years from the date on which cause of action arose. » Important Points The Agencies are as follows: + a Consumer Disputes Redressal Forum to be known as the "District Forum’ established by the State Government in each district. This consumer court deals with complaints where the value of the goods or services and compensation, if any, claimed is less than twenty lakhs, + a Consumer Disputes Redressal Commission to be known as the "State Commission’ established by the State Government: This consumer court deals with complaints where the value of the goods or services and compensation, if any, claimed exceeds Tupees twenty lakhs but does not exceed rupees one crore. - 2 National Consumer Disputes Redressal Commission established by the Central Government, which deals with complaints where the value of the goods or services and compensation, if any, claimed exceeds rupees one crore. Thus, District Forum settles the consumer disputes at the district level.a ra ee are or iia) Start Complete Exam Preparation Cee are ot PLOT Weare E esac leas Verso ores en a Exotic 22 Download App MCQ Question 7 View this Question Online > Which of the following is not the right of the consumer to be protected as mentioned under the Consumer Protection Act, 1986? 1. Right to Consumer Education 2. The right to be informed about quality and purity of the goods sold 3. The right to seek redressal against un‘alr trade practice and unscrupulous exploitation of ‘consumer 4, Right to get branded goods at low price in the nearby shop Answer (Detailed Solution Below) Option 4: Right to get branded goods at low price in the nearby shop Consumer Protection Act MCQ Question 7 Detailed Solution ‘Consumer Protection has a wide agenda. + Itnot only includes educating consumers about their rights and responsibilities but also helps in getting their grievances redressed. + Itnot only requires judicial machinery for protecting the interests of consumers but also requires the consumers to get together and form themselves into consumer associations for the protection and promotion of their interests. » important Points The Consumer Protection Act 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. These rights include the following: + Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life and health.+ Right to be Informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc. + Right to Choose: The consumer has the freedom to choose from a variety of products at competitive prices + Right to be Heard: The consumer has a right to filea complaint and to be heard in case of dissatisfaction with a good or service. + Right to seek Redressal: The consumer has a right to get relief in case the product or service falls short of his expectations. + Right to Consumer Education: The consumer has a right to acquire knowledge and to bea well- informed consumer throughout life. From the above, we can say that the Right to get branded goods at low prices in the nearby shop is not the right of the consumer to be protected as mentioned under the Consumer Protection Act, 1986 ra India's #1 Learning Platform ° Start Complete Exam Preparation eC RE cect Peau eed Mock Tests Pie (erste ri Exo 22 Download App MCQ Question 8 View this Question Online Given below are two statements, one labelled as Assertion (A) and the other labeled as Reason (R). Read the statements and choose the correct answer using the code given below. Assertion (A): Consumers need to be given legal protection against certain trade practices and business methods. Reason (R): Protection as per market forces and ‘Caveat Emptor’ is not enough as perfectly competitive market is an economists dream and consumer sovereignty is a myth. 1. (A) is correct but (R) is incorrect. 2. (A) is incorrect but (R) is correct 3. Both (A) and (R) are correct and (R) is the right explanation of (A) 4. Both (A) and (R) are correct but (R) is not the right explanation of (A)Answer (Detailed Solution Below) Option 4: Both (A) and (R) are correct but (R) is not the right explanation of (A) Consumer Protection Act MCQ Question 8 Detailed Solution Assertion (A): Consumers need to be given legal protection against certain trade practices and business methods. Explanation: 1. Consumers need to be given legal protection against certain trade practices and business methods as @ seller may use unfair trade practices which can harm the consumer financially as well as in health regard. 2. Thus, Consumer Protection Act, 1986 (CPA) is enacted that provides for effective protection of the interests of consumers and as such makes provision for the establishment of consumer councils and other authorities that help in the settlement of consumer disputes and matters connected therewith. 3. Thus, the assertion is correct. Reason (R): Protection as per market forces and 'Caveat Emptor’ is not enough as a perfectly competitive market is an economist's dream and consumer sovereignty is a myth. Explanation: 1. Caveat emptor is Latin for ‘let the buyer beware" A doctrine that often places on buyers the burden to reasonably examine the property before purchase and take responsibility for its condition. . It is especially applicable to items that are not covered under a strict warranty. . The rule of ‘Caveat Emptor’ has many drawbacks in the sense that consumers might not be educated enough to understand the technical aspects of goods purchased by them . Thus, it is not enough protective measure against consumer exploitation. . Consumer sovereignty is an economic concept where the consumer has some controlling power over goods that are produced and the idea that the consumer is the best judge of their own welfare 7. However, in reality, consumer choice is affected by marketing strategies and marketers resort to advertising tactics that blindfold the consumer. 8. ‘Consumer Sovereignty is a myth BOON on Thus, even though the reason is correct, it doesn't justify the assertion. ro India's #1 Learning Platform Start Complete Exam Preparation Ree ance east Tas eee feat raca ba De De - ores eoi ci Download AppMCQ Question 9 View this Question Online > Which of the following statements regarding the National Food Security Act is incorrect? 1. Act was applicable to the whole of India 2. This act is also known as Right to Food Act. 3. The Act provided that the domestic woman of the age of 18 years or above shall be the head of ‘the household for the purpose of Issuing the ration card. 4, This act was implemented in the year 2015 Answer (Detailed Solution Below) Option 4 : This act was implemented in the year 2015 Consumer Protection Act MCQ Question 9 Detailed Solution The answer is This act was implemented in 2015. The correct statement is This act was implemented in the year 2013, © Key Points + The act was applicable to the whole of India. + This act is also known as the Right to Food Act. * This act also advocated that the head of the family will be a woman who is more than 18 years old and she will possess the ration card. + NFSA act 2013 was introduced by the GOI in 2013. It provides food grains to 75% of rural and 50 % of the urban population across all states and UTs. + The objective of the NFSA act 2013 is to provide food grains to the poor with nutritional values. 2 Thus options 1,2 and 3 are correct. ©; Additional Information * Schemes such as the mid-day meal scheme( MDMS), The Public distribution system (PDS), and the Integrated child development system ( ICDS) are included under the act.a ra ee are or iia) Start Complete Exam Preparation Cee are ot PRO Weare mae acd leas Verso ores en a Exotic! D> Download App MCQ Question 10 View this Question Online > Which of the following statements is not correct relating to consumerism ? 1. Consumerism is a manifestation of the failure of the business to guarantee and ensure consumer legitimate rights. 2. The government does not have any role in consumer protection as itis the part of business organisations alone. 3. The consumers should accept consumerism as a means of asserting and enjoying their rights. 4. Consumerism evolution is not a set-back for marketing but rather points to the next stage in the evolution of enlightened marketing. Answer (Detailed Solution Below) Option 2: The government does not have any role in consumer protection as itis the part of business organisations alone. Consumer Protection Act MCQ Question 10 Detailed Solution Consumerism: 1. Consumerism is the concept that consumers should be informed decision-makers in the marketplace. 2. In this sense consumerism is the study and practice of matching consumers with trustworthy information, such as product testing reports. 3. Consumerism is 2 manifestation of the failure of the business to guarantee and ensure consumer legitimate rights. 4. Consumerism is the concept that the marketplace itself is responsible for ensuring social justice through fair economic practices. . Consumer protection policies and laws compel manufacturers to make products safe. . Consumers should accept consumerism as @ means of asserting and enjoying their rights. . Consumerism refers to the field of studying, regulating, or interacting with the marketplace. The consumer movement is the social movement which refers to all actions and all entities within the Nowmarketplace which give consideration to the consumer. 8. Consumerism evolution is not a set-back for marketing but rather points to the next stage in the evolution of enlightened marketing, The government plays a very important role in consumer protection by establishing various acts such as the Consumer Protection Act. The government plays an active role in providing necessities at fair prices to the consumers and to avoid exploitation of the consumers. Thus, option 2 is incorrect.