NCERT Questions for Class 12 Business Studies Chapter 11 – Consumer Protection

Important Questions with Solutions of Class 12 Business Studies Chapter 11 – Consumer Protection

1) Mention any 4 factors of necessity for user protection from the business POV.

Ans – Here are some of the vital needs why user protection is necessary from a business standpoint:  

1. Long-term Engagement: The satisfaction of customers is paramount for any enterprise. User satisfaction has gained significant importance in an era characterized by heightened competition. By prioritizing the needs and interests of its clientele, a firm can cultivate trust and enhance its brand value within the marketplace. This positive perception subsequently contributes to an increase in sales and profitability for the company. Therefore, safeguarding consumer interests is advantageous for any company in futuristic hindsight.
2. Employee Allocation & Utilization: The survival of any business is inherently linked to society. Organizations deploy societal resources throughout their production processes. Income and profits are derived by selling the necessary goods and services to the community. Consequently, companies need to acknowledge societal likings and offer products and services that streamline with the goals and demands of society.
3. Standard Reasoning: Every firm must uphold essential moral and ethical standards. Engaging in unethical activities that exploit consumers in any manner is simply unacceptable and must be avoided at any cause.
4. Social Goals: The foundation of every business is its relationship with society. By providing various goods and services to consumers, businesses generate profit. Therefore, it is incumbent upon businesses to recognize this relationship and strive to meet the interests of their customers.

2) After eating French fries at a food court, Mr. Verma, a vegetarian, discovered that the food was non-veg. The item’s non-veg composition was not disclosed either on their packaging or via marketing. Will Mr. Verma get reimbursement for the rights of consumers that have been infringed upon here?

Ans – In this instance, the consumer’s right to know has been violated. Each good shall display a green mark for vegetarian components and a brown mark for non-veg substances, according to the Weight and Measurement Act 2000 based on their requirements. Additionally, for Mr. Bharti to be eligible for pay, the dot must be shown across different print media and e-commercials, billboards, advertising hoardings, and other materials.

3) Pooja acquired a packet of juice from a nearby grocery store. The details presented on the packaging were ambiguous. After consuming the product, she became ill. Consequently, she complained with the District Forum under the Consumer Protection Act and received compensation.

(a) Mention the vital factor that has been ignored by the marketer in the earlier statement.

(b) Identify the operations of the factor as mentioned in (a) before.

Ans – (a) In the earlier example, the marketer surpassed the concept of labeling.

(b) The factors below portray the operations of labeling.

1. Implement Content Insights: Labeling serves the main purpose of describing the item’s usage, implementation, substance, warnings, etc. A shampoo container, for instance, would have information about its components as well as cautions like “keep out of reach of kids under the age of 10.” Comparably, culinary items like Maggie Cuppa Mania have an image of noodles that describes how they look. In addition, the components and manufacturing process are described.
2. Product Scouting & Separation: Item verification helps with tags. It helps customers distinguish their desired items from competitors. For instance, a man-eating potato snack has been stamped to identify it in a potato chip business. Also, a label includes helpful details like the manufacturing unit quantity, net volume, optimum selling price, and company or location of the producer.
3. Establishing a Standard & Classification: Commodity grading might be aided by labels. This enables marketers to group the goods into several groups according to particular attributes or characteristics. A facial moisturizer company, for instance, can be separated into 3 groups: typical skin, sensitive skin, and oily skin types.
4. Encourages Manufacturing: Product promotion is facilitated by an eye-catching label. It helps draw in prospective customers for the goods. Maggie Noodles’ label says, “Taste bhi, Health bhi.” In this instance, emphasizing the item and encouraging its sale depends heavily on the tag.
5. Legally Essential Data: The tag lists and discusses the mandatory details. For instance, “Chewing tobacco is harmful to your health” is printed on a cigarette package.

4) Sumit bought at TG Electronics Limited, an ISI-certified laundry machine of the popular manufacturer “MG.” He was requested to wait 2 days for the equipment to be installed by the merchant. Vivek, a buddy of his, enjoyed trying out innovative technological devices. He assured Sumit that he could set up the equipment himself and that there was no obligation to wait for the business expert to do so. As a result, none of them followed the directions provided by the creator when installing the equipment. At first, the appliance operated well, and the process of washing was satisfactory. However, after 2 days, the device began to pause between cycles of washing. Despite their best attempts, Sumit & Vivek were unable to get the device to turn on. Sumit reached out to TG Electronics Limited, which refused to offer any service on the request that the device installation wasn’t made by the firm.

(a) Mention the role Sumit had to accomplish as a well-known user to grab the services of the firm.

(b) Describe in detail any 2 fundamental rights that Sumit would have exercised if he had accomplished his desired roles and responsibilities as mentioned in section (a).

Ans – (a) To utilize the services provided by the business, Sumit, as an educated customer, must understand the hazards involved with both the goods and the associated services, adhere to the company’s directions, and employ the items carefully.

(b) If Sumit had carried out his duty, he might have claimed 2 vital rights:

1. Right to be Considered: If a customer has a grievance or is unhappy with an item or service, they’ve got the opportunity to have their case considered in a suitable court. To put it another way, a customer has the privilege to complain.
2. Right to Claim Justice: In the case of a dispute, users are entitled to demand justice and, if required, adequate reimbursement. The Act offers financial reimbursement, item replacement, and error elimination or correction as forms of settlement.

5) Elaborate in detail on the roles & responsibilities of a user.

Ans – According to the Consumer Protection Act, a user has 6 rights. The below-mentioned ones are the rights of a consumer.

1. Right to Protection: According to the act, each customer is entitled to protection against products and services that pose a risk to their assets, well-being, or existence. For instance, manufacturing errors in cooking gas containers and electrical equipment might be dangerous. The customer is entitled to protection from these kinds of goods.

2. Right to Information: The customer is entitled to information on the quality, quantity, cost, size, and other characteristics of the products and services. Producers in India are legally obligated to offer this data on the tag of the product and packaging. This assists the customer in making a well-informed choice.

3. Right to Decide: The statute grants consumers the freedom to pick from a variety of products and services at affordable costs. In other words, the customer is entitled to a wide selection of goods at affordable, affordable rates. The supplier or merchant should thereby offer a variety of items about brand, cost, craftsmanship, and other factors. They shouldn’t influence clients to buy a certain commodity or service.

4. Right to be Considered: If a customer is unhappy with anything or has a grievance, they must register one. via such a situation, an end user has the right to register an official complaint and seek remedies for any kind of violation via the proper channels set up by the federal government. These days, many firms and groups representing consumers are also active in this field.

5. Right to Claim Justice: By the statute, consumers have an opportunity to ask for reimbursement and remedy on every incidence of violation. In certain situations, the Consumer Protection Act offers remedies like item substitution, monetary reimbursement, fault correction or elimination, and more.

6. Right to Buyer Knowledge: It’s argued that buyers have an entitlement to education and understanding of their rights and possible solutions in the case of maltreatment. In this effort, several governmental & NGOs are taking part.

A user has a few roles & responsibilities along with his rights to safeguard himself from violation.

Here is a list of a consumer’s ability that can be classified as:

• Knowledge: Customers need to understand the range of products and services being offered. He is therefore able to arrive at a sensible and well-informed choice.
• Looking for Standard Markings: Before making a purchase, a buyer should constantly search for quality assurance markings, which include AGMARK for agricultural commodities and ISI for electrical items.
• Asking Money Note: Customers should always ask for cash memos or invoices when making purchases of products and services. The bill acts as evidence of the transaction and can be employed as a point of reference upon receipt of a grievance.
• Scanning Tags: Cost, volume, and expiry date are among the details found on the labels of products. The consumer must study these markings before making a purchase.
• Transparent Deals: Buyers may constantly pick lawful purchases over illicit ones, such as stockpiling and black marketing.
• Assure Security: A customer needs to thoroughly read the producer’s documentation and directions to guarantee that the item is used safely. For instance, you should thoroughly review the directions before operating a power item.
• Grievance Submission: If a good is detected by the buyer as faulty or any type of shortcoming in excellence, an appeal must be made in the relevant venue.
• Product Institutions: To further product knowledge and understanding, buyer groups and clubs like the Karnataka Consumer Service Society, the Collective Reason, and the National Consumer Managing Forum must be established.
• Eco-friendly Security: Users must collaborate to secure the working space by eliminating wastage, avoiding pollution, and much more.