Consumer Rights - Class 10 Economics - Extra Questions

Say true of false:
COPRA applies only to goods.

False
COPRA applies to goods and services.


Say true of false:
Hallmark is the certification maintained for standardisation of jewellry.

True

A hallmark is an official mark or series of marks struck on items made of precious metals - platinum, gold, silver and in some nations, palladium. In a more general sense, the term hallmark can also be used to refer to any distinguishing characteristic.



Say true of false:
India is one of the many countries in the world which has exclusive courts for consumer redressal.

True

Consumer Court is the special purpose court, mainly in India, that deals with cases regarding consumer disputes and grievances. These are judiciary set ups by the government to protect the consumer rights. Its main function is to maintain the fair practices by the sellers towards consumers.



Say true of false:
It is worthwhile to move to consumer courts only if the damages incurred are of high value.

True


Say true or false :
The consumer redressal process is very simple and quick.

False

Consumer redressal  process is cumbersome, expensive and time consuming. 



Where should the consumer go to get justice ?

The three-tier quasi-judicial machinery under COPRA is established for the consumers to get justice for their grievances.


Say true of false:
When a consumer feels that he has been exploited, he must file a case in the District Consumer Court.

True
In cases where the value of goods and services involved is less than Rs. 20 lakhs in value, you will have to file the complaint in the District Forum constituted in the specified districts of a State.


How do advertisements cause consumer's exploitation?

Through false claims like quality of product in the advertisement.
Product viewed in advertisement is different from the actual one.



What is the scope of the Consumer Protection Act (1986)?

The Consumer Protection Act, scope is to provide for better protection of the interest of the consumers and for the purpose to make provisions for the establishment of Consumer Councils and other authorities for providing speedy solutions in the settlement of consumer disputes and for matters connected therewith.


What are the different rights assigned to the citizen of India to collect information ?

Right to Information (RTI) is an Act of the Parliament of India "to provide for setting out the practical regime of right to information for citizens" and replaces the erstwhile Freedom of information Act, 2002. Under the provisions of the Act, any citizen of india may request information from a "public authority" (a body of Government or "instrumentality of State") which is required to reply expeditiously or within thirty days. The Act also requires every public authority to computerise their records for wide dissemination and to proactively certain categories of information so that the citizens need minimum recourse to request for information formally.



What is RTI and when did it come into force?

Right to Information (RTI) is an Act of the Parliament of India "to provide for setting out the practical regime of right to information for citizens" and replaces the erstwhile Freedom of information Act, 2002. Under the provisions of the Act, any citizen of india may request information from a "public authority" (a body of Government or "instrumentality of State") which is required to reply expeditiously or within thirty days. The Act also requires every public authority to computerise their records for wide dissemination and to proactively certain categories of information so that the citizens need minimum recourse to request for information formally.

This law was passed by Parliament on 15 June 2005 and came fully into force on 12 October 2005. The first application was given to a Pune police station. Information disclosure in India was restricted by the Official Secrets Act 1923 and various other special laws, which the new RTI Act relaxes. It codifies a fundamental right of citizens.

 



What is COPRA and when did it come into force?

CORPA stands for Consumer Protection Act
It came into force in 1986.
CORPA was enacted to protect the interests of consumers in India.


Name the various redressal agencies.

As mentioned above, the Consumer Protection Act, 1986 envisages a Three-Tier Consumer Disputes Redressal Agencies. These are:
(i) The District Consumer Disputes Redressal Forum;
(ii) The State Consumer Disputes Redressal Commission; and
(iii) The National Consumer Disputes Redressal Commission.


What aspects does the provisions of COPRA cover?

Following are the aspects which the provisions of COPRA cover

  1. The right to be protected against the marketing of goods and services which are hazardous to life and property.
  2. The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be to protect the consumer against unfair trade practices;
  3. The right to be assured, wherever possible, access to a variety of goods and services at competitive prices ;
  4. The right to be heard and to be assured that consumer's interest will receive due consideration at appropriate forums;
  5. The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers
  6. The right to consumer education.


Explain the ways by which consumer can be protected.

  • Legal acts by the government (CORPA 1986):

Consumer Protection Act, 1986 includes  the right to the satisfaction of basic needs; the right to safety; the right to be informed; the right to choice; the right to be heard; the right to seek redressal; and the right to consumer education.

  • Consumer movements by Societal consumer groups (Consumer International):
Consumer Movements builds pressure on the firms or businesses for expressing their grievances Consumer groups also represents individual consumers in Consumer Courts.


How many consumer protection councils are there? Explain each of them briefly.


Following are the consumer protection councils  -

(1) Consumer Education And Research Center (Gujarat)- CERC is a recognised consumer organisation by the Government of India and Government of Gujarat. It is dedicated to the cause of consumer protection, environment protection, investor protection and public health and safety issue.

(2) Bureau Of Indian Standards- BIS is the National Standard Body of India established under the BIS Act 2016 for the harmonious development of the activities of standardization. The Product Certification Schemes of BIS aims at providing Third Party assurance of quality, safety and reliability of products to the customer.

(3) Federation Of Consumer Organisation In Tamil Nadu-Cuddalore District Consumer Protection Organisation is a not-for-profit organisation based in Tamil Nadu which aims to protect the interests of consumers through campaigning, to educate consumers on their rights to legal redressal and to hold workshops and training for consumer activists.

(4) Mumbai Grahak Panchayat-Mumbai Grahak Panchayat (MGP) is perhaps the largest voluntary consumer organisation in India with a membership of 24,500 families. It has been engaged in activities of consumer protection and education for the last 33 years. Its unique collective group buying system provides a best practice model for sustainable consumption

(5) Consumer Voice (New Delhi)-VOICE is an acronym for Voluntary Organisation in Interest of Consumer Education which has pioneered the protection of consumers in India. Based in New Delhi, the organisation has championed consumer education in the country since 1983.

(6) Legal Aid Society (Kolkata)- Legal Aid Services, West Bengal (LASWEB), one of the pioneering legal aid offering civil society organizations in India, empowers the poor and the disadvantaged with varied legal entitlements. Functioning since 1980 as an organic collective of retired judges, practising lawyers and social activists.

(7) Akhil Bhartiya Grahak Panchayat-The Pioneer of Indian Consumer Movement, Grahakteerth Hon. Shri Bindumadhav Joshi is the founder of this organization. Inspired by him, Dr. Vijay Lad registered this organization. Grahaktirth Hon. Bindumadhav Joshi is the founder president of Akhil Bhartiya Grahak Panchyat, Freedom Fighter and Ex Minister. 

(8) The Consumers Eye India.-The Consumer Guidance Society of India (CGSI) is a Non-Profit consumer organization established in India in 1966 to protect and educate the Indian consumer about sub-standard products and services, adulterated foods, short weights and measures, spurious and hazardous drugs, exorbitant prices, endemic shortages leading to black marketing and profiteering, unfulfilled manufacture guarantees, and a host of other problems

(9)United India Consumer's Association- Consumers Association of India (CAI) is a membership-based organisation with 8,000 registered members all over India. Its main objectives are: spreading consumer awareness; empowering consumers and teaching them their responsibilities and rights as consumers. CAI regularly conducts seminars, workshops and training programmes and publishes various consumer guides on a variety of topics, which are of interest to consumers.



What is meant by information? 

Information is that which informs or information is news or knowledge received or given.
An example of information is what's given to someone who asks for background about something.



"Deceptive advertising costs a consumer's pocket ". Comment on this statement

Deceptive advertising, or false advertising, is any type of advertising that is false, misleading, or has the effect of deceiving consumers. An ad can be deceptive in many aspects, including: Price of a product. Times, dates, and locations that the product is available. Information regarding warranties etc. Now as the consumer gets attracted,or misleaded by these false ads,he buys the products even if he doesn't needs it, this way it costs to his pocket only.


How does 'consumer dissonance' form a root cause for consumer exploitation?

Consumer exploitation refers to the act of taking advantage of buyers. Consumers are being exploited in the following manner: Sale of adulterated goods, i.e. adding something inferior to the product being sold. Misleading advertisements, i.e. advertisements falsely claiming a product or service to be of superior quality, grade or standard. This occurs because of limited information about the product, such as guarantees and terms of purchase.
consumer exploitation leads to consumer dissonance . Dissonance in marketing causes a conflict or tension within a consumer considering a product purchase. This is usually an uncomfortable feeling for the consumer and usually leads to the buyer taking her money elsewhere or experiencing remorse over the purchase.


What is a 'consumer' according to the Consumer Protection Act?

As per the act; a person is called a consumer who avails the services and buys any good for self-use. 

Section 2(d)of the Consumer Protection Act says that consum­er means any person who—
(i)  buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment, and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approv­al of such person but does not include a person who obtains such goods for resale or for any commercial purpose; or

(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly prom­ised, or under any system of deferred payment, and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred pay­ment, when such services are availed of with the approval of the first mentioned person;



Why is consumer protection important for the growth of a business?

Consumer protection contributes to dynamic and effective markets for businesses to grow. Consumer demand drives innovation and economic development asbusinesses are required to maintain fair prices and good quality of their products and services. Consumer protection is important for businessman because of long-term interest of business.


Explain the need for consumer consciousness by giving two examples.

Many people seldom bother to check the MRP and pay whatever the shopkeeper demands. While developing a faith on the neighbourhood shopkeeper is a good attitude, but one should always check the MRP. Some people do not even check expiry date on the pack of a medicine. This can prove to be dangerous and can even be life threatening for the patient who is going to consume the medicine. These examples suggests that there is a real need for consumer consciousness. Consumer consciousness is being aware of your right as a consumer while buying any goods or services. 

Examples: 1) It is common to see consumers bargaining with sellers for additional discounts below the MRP. 

2) Because of conscious consumers, most of the sweet shops do not include the weight of the container when they weigh sweets.



Give the expanded forms of COPRA and RTI.

COPRA—Consumer Protection Act
RTI—Right to Information



What is the significance of consumer awareness in the world today?

Consumer Awareness is an act of making sure the buyer or consumer is aware of the information about products, goods, services, and consumers rights.Consumer awareness is important so that buyer can take the right decision and make the right choice. The need of consumer awareness is due to: 
(i) As selfishness of manufacturers and traders can go to any extent. 
(ii) Some unscrupulous traders began to play with the health of the nation by indulging in adulteration of edible oils, milk, butter, ghee, spurious medicine, etc.
Consumer awareness is an act that allows people to get informed about products while purchasing and selling. ... Awareness among people helps them to get a better deal for the products and removes their ignorance that a seller often tries to use it.


What factors gave birth to the consumer movement in India? Trace its evolution.

The factors that gave birth to the consumer movement in India are manifold. It started as a "social force" with the need to protect and promote consumer interests against unfair and unethical trade practices. Extreme food shortages, hoarding, black marketing and adulteration of food led to the consumer movement becoming an organised arena in the 1960s. Till the 1970s, consumer organisations were mostly busy writing articles and holding exhibitions. More recently, there has been an upsurge in the number of consumer groups who have shown concern towards ration shop malpractices and overcrowding of public transport vehicles. In 1986, the Indian government enacted the Consumer Protection Act, also known as COPRA. This was a major step in the consumer movement in India.


Mention a few factors which cause exploitation of consumers.

Factors which cause exploitation of consumers are:

1.       Lack of awareness of consumer rights among buyers.

2.       Improper and inadequate monitoring of rules and regulations.

3.       Individual purchase quantity is quite small.

4.       Consumers are scattered over large areas.

5.       Lack of awareness among consumers.

6.       Greed of businessperson.

7.       Lax enforcement of rules.

8.       Slow and time taking process of consumer grievance redressal.



What is the rationale behind the enactment of Consumer Protection Act 1986?

The rationale behind the enactment of COPRA 1986 was to set up a separate department of consumer affairs in Central and State governments and it has enabled us as consumers to have the right to represent in a consumer court. Protection of consumers against exploitation was the main rationale behind the enactment of Consumer Protection Act 1986.

The enactment of Consumer Protection Act succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large. The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state governments to spread information about legal process which people can use. This information is spread through posters and advertisements on television channels.



What legal measures were taken by the government to empower consumers in India?

Legal measures taken by the government to empower consumers in India are plenty. First and foremost being the COPRA in 1986. Then, in October 2005, the Right to Information Act was passed, ensuring citizens all information about the functioning of government departments. Also, under COPRA, a consumer can appeal in state and national courts, even if his case has been dismissed at the district level. Thus, consumers even have the right to represent themselves in consumer courts now. Also, Monopolies and Restrictive Trade Practices Act (MRTP Act) was enacted in 1984 to check unfair trade practices.



Match the following.

List I

List II
i
 Availing details of ingredients of a producta
 Right to safety
ii
Agmarkb
Dealing with consumer cases
iii
Accident due to faulty engine in a scooterc
Certification of edible oil and cereals
iv
District Consumer Courtd
Agency that develop standards for goods and services
v
 Consumers Internationale
Right to information
vi
Bureau of Indian Standardsf
Global level institution of consumer welfare organisations


 LIST 1  List 2
i.  Availing details of ingredients
of a product		 (e) Right to information 
ii. Agmark (c) Certification of edible oil and cereals
iii. Accident due to faulty engine in a scooter (a) Right to safety
iv.
 District Consumer Court (b) Dealing with consumer cases
v. Consumers International (f) Global level institution of consumer welfare organisations
vi. Bureau of Indian Standards (d) Agency that develops standards for goods and services


Why are rules and regulations required for the protection of the consumers in the market place? Explain with examples.

Rules and regulations are required in the market place to protect the consumers against exploitation by the producers, sellers and service providers. They often indulge in unfair trade practices and provide false information about a particular service or product. Most of consumers are unaware about their rights and they are often deceived by the suppliers, So in the interest of the consumer, it is necessary to take action against suppliers and producers.


How do Consumer Protection Councils help consumers? Explain in three ways.

'Consumer Protection Councils' help the consumers in the following ways: 
These councils guide the consumers on the method of filing cases in the consumer court. 
They also create awareness among the people regarding their rights as consumers. 
They also get aid from the Government for the same purpose.


If any damage is done to a consumer by a trader, under which consumer right one can move to consumer court to get compensation.

If any damage is done to a consumer by a trader, under Right to seek Redressal consumer can move to consumer court to get compensation.


Why are rules and regulations required in the market-place? Explain.

In many cases, we found that consumer is cheated by the producer, seller sells the product on high price as compared with MRP. So rules and regulations are required in the marketplace to protect the consumers against exploitation by the producers, sellers and service providers.


Critically examine the progress of consumer movement in India

The consumer movement in India has evolved vastly since it began. There has been a significant change in consumer awareness in the country. Till the enactment of COPRA in 1986, the consumer movement did not bear much force, but ever since its inception, the movement has been empowered substantially. The setting up of consumer courts and consumer groups has been a progressive move. However, in contemporary India, the consumer redressal process is quite complicated, expensive and time-consuming. Filing cases, attending court proceedings, hiring lawyers, and other procedures make it cumbersome. 

The number of consumer groups and their activities has increased. Currently, about 700 consumer groups work in the country but only 20-25 groups have been recognized by the government. The existing laws are not effective as far as compensation for defective products goes. 

Even after more than 25 years of enactment of Consumer Protection Act (COPRA), a large section of consumers are unaware of their rights. Often rules and regulations applicable to marketplace are not followed. 



By what means can the consumers express their solidarity?

Consumers can express their solidarity by forming consumer groups that write articles or hold exhibitions against traders' exploitation. These groups guide individuals on how to approach a consumer court, and they even fight cases for consumers. Such groups receive financial aid from the government to create public awareness. The consumers can express their solidarity by forming: (a) Consumer protection councils (b) Voluntary consumer association and registering them (c) Consumer clubs and (d) Resident Welfare Associations (RWAs).



What do you understand by 'Right to be heard'?

Right to be heard:
(a) Consumers have been give the right to express their opinions with regard to the quality and prices of the commodities or services purchased or used.
(b) The views of consumers should be duly considered by manufacturers, sellers and traders.
(c) Most of the business houses have their own Consumer Affairs Departments to look after the consumer's feedback regarding their products and services.
(d) Thus the consumers have the Right for their complaints and grievances to be heard by the Consumer Councils.
(e) No one can discriminate against hearing their complaint on any basis.


What is the alternative name of Consumer Protection Act 1986?

In 1986, the government of India enacted the Consumer Protection Act, also known as COPRA. 



Give the full form of COPRA. How does it benefit consumers?

COPRA: Consumer Protection Act, $$1986$$.
This Act recognises six consumer rights. These rights are: Right to be protected, to be informed, right to choose, to be heard, to seek redressal, to consumer education. It has also established a redressal system unique in the world.



What are the main objectives of Consumer Protection Act ?

The main objectives of the Consumer Protection Act are:
(a) Providing better and all round protection to consumer.
(b) Providing machinery for the speedy redressal of the grievances. 
(c) Creating framework for consumers to seek redressal.
(d) Providing rights to consumers.
(e) Safeguarding rights of Consumers.


State the market form of the following commodities:
i. Railways
ii. Automobiles
iii. Shampoos
iv. Fighter Aircrafts

i. Monopoly Market
ii. Oligopoly Market
iii. Monopolistic Competition Market
iv. Monopsony Market


Give two reasons for consumer exploitation in India.

The reasons for consumer exploitation are as follows:
$$(1)$$ Limited Information: Producers provide incomplete and incorrect information about various products.
$$(2)$$ Low Literacy: Illiteracy leads to exploitation. Lack of consumer awareness is the root cause for exploitation.



Describe any three rights provided to the consumer in Consumer Protection Act, 1986.

The objectives of the Central Council is to promote and to protect the rights of the consumers such as:-

  1. Right to safety-The right to be protected against the marketing of goods and services which are hazardous to life and property.
  2. Right to information- The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be to protect the consumer against unfair trade practices;
  3. Right to be heard - The right to be heard and to be assured that consumer's interest will receive due consideration at appropriate forums


What is meant by Consumer Exploitation?

1. Consumer exploitation is a situation in which a consumer is cheated or given false information by the producer.
2. Large companies with huge wealth, power, and reach can manipulate the market in various ways.
3. At times they pass on false information through the media, other sources to attract consumers.


When is consumer day observed in India?

Consumer day is also known as National Consumer Right Day. Which was observed  across India on 23 December. The day is being observed on 24 December, since the Consumer Protection Act, 1986 was enacted on this day in 1986.


How is consumer awareness helpful in keeping a check on anarchy and harmful consumption?

(1)To achieve maximum satisfaction.
(2)Protection against exploitation of producers.
(3)  Control over consumption of harmful goods.
(4)  Motivation for saving.
(5)  Knowledge regarding solution to problems.
(6)  Construction of healthy society.


What are the duties of a consumer?

While all consumers have rights, they also have duties or responsibilities

1. Safety - To be safe is the main duty of the consumers various labels and precautions are provided to consumers when they purchase an item. They should read the information and adhere to it.

2.Making the best choice-Consumer must take time to compare product features and prices before making a decision to purchase it. Generally, there is more than one choice per product in the marketplace, and it's consumers duty to determine which one will work best for their purposes.

3. Expression-Consumer should speak up complaints or praises to the appropriate sources, such as the Better Business Bureau or the manufacturer.

4. Obtain compensation- If the product fails or does not meet the expectations,compensation should be sought. Some manufacturers issue warranties with their products, while others  give  a refund if you products are not satisfactory.

5. Education- Consumer should educate themselves through research to find the best product fit for their situation. Organizations such as Consumer Reports offer helpful non-biased, research-based advice about products.

6. Act of responsibility-  Consumer must use the products purchased in a way that doesn't negatively impact the environment or other consumers. Consumers should follow the product instruction and safety labels, to avoid harming others with the use of the item.



Write any two ways of consumer exploitation.

One well-established method of consumer exploitation is the use of false advertising. These advertising messages can make outrageous and untrue claims to prey on the fears of customers. Adulteration of foodstuffs by some companies is another important way of exploiting the consumers.


How is the maximum retail price printed (MRP) on packets beneficial for you?

The maximum retail price (MRP) is the maximum value of a retail good that a retail seller can charge to his customers. The MRP protects the customers from arbitrary pricing and often over charging by the retail sellers. Thus, the MRP helps to protect the interests of the customers.


Answer the following question in five or six sentences.
Explain the duties of a consumer.

Following are the duties of a consumer:-
  • Be quality conscious and aware of rights to restrict business malpractices. 
  • Be aware of misleading advertisements. 
  • Insist the seller to give a bill, receipt and guarantee/warranty card. 
  • Compare the quality, price, durability, after sales services etc. of the product. 
  • Carefully inspect the variety of goods and make the best choice.
In India 24th December is the ‘National Consumers Day’ while 15th March is ‘World Consumers Day’. Lok Adalat is an effective source of rapid redressal in our country. Consumers protection is a social responsibility, so various consumer organization are actively functioning worldwide.


When the value of average propensity to save is negative, the value of marginal propensity to save will also be negative.
True/False.

False. 

MPS i.e. Marginal Propensity to Save cannot be more than one or less than zero as it is percentage change in savings when there is some change in the level of income which cannot be more than or less than the change in income.



Describe the importance of the 'Right to Seek Redressal' for consumers.

Right to seek redressal is defined a the right to seek compensation due to damage caused by unfair trade practices and exploitation. The compensation awarded depends on the degree of damage. Consumers have the right to get their claims settled in their favor in case of being cheated and exploited by the producers. Under the Consumer Protection Act $$1986$$, a three-tier judicial system has been formed. This act provides the establishment of consumer disputes redressal agencies at district, state, and national level. Consumers can invoke their right to redressal and right to represent. We may give the example of a person who is dissatisfied with services provided by say MTNL, BSNL, or Airtel and thereafter files a case at the consumer court.


A consumer consumes only two goods, each priced at Rupee one per unit. If the consumer chooses a combination of the two goods with Marginal Rate of Substitution equal to 2, is the consumer in equilibrium? Give reasons. Explain what will a rational consumer do in this situation.

At the point of consumer equilibrium the following equality should be met : 
$$MRS = \dfrac{P_x}{P_y}$$
According to the question, 
$$MRS = 2$$
$$\dfrac{P_x}{P_y}=\dfrac{1}{1} = 1$$
So, $$MRS$$ is greater than the price ratio. Thus, to reach the equilibrium point a rational consumer wo and decrease that of good $$y$$. 


Who can file a complaint with the Redressal Agencies?

The following can file a complain with the redressal agencies:-
1) A consumer
2) Any registered consumer association
3) The central government
4) In case of death of a consumer


Define consumer law?

Consumer law or consumer protection law is considered an area of law that regulates private law relationships between individual consumers and the business that sell those goods and services. Consumers law covers a wide range of topics including but not necenarily limited to product liability privacy rights, unfair business practices, fraud misrepresentation nad other consumer business interaction. 


Highlight any three problems which a consumer may face in the process of redressal.

The problems which a consumer may face in the process of redressal are 
(i) It may be time-consuming, as the consumer may have to take out time from his daily activities for Ming a complaint, engaging a lawyer, attending hearings, etc. 
(ii) It may be expensive, as a consumer has to engage a lawyer. 
(iii) If cash memos or receipts are not issued, then it makes the collection of evidence difficult. 


Mention any two duties of a consumer.

The consumer must perform the following duties : 
 (i) Consumers must exercise his rights: Consumers have many rights with regards to the goods and services. They must be aware of their rights while buying goods. 
 (ii) Consumers should not buy blindly: Consumers should ensure that they get a fair and honest deal. They should not take the seller’s words as the final truth. 
 (iii) Consumers should not compromise on quality: Consumers should never compromise on the quality of the goods. They should not buy inferior stuff out of greed for cheaper price. 
 (iv) Beware of false advertisement: The sellers inform the consumers about their things through the medium of advertisement. The seller’s exaggerate the quality of their goods through advertisement. Therefore, consumers should recognize the truth of the advertisement.
 (v) Do not forget to get receipt and guarantee/warranty card: One should always get a receipt or bill for the things purchased.


Define the term consumer awarness.

Consumer Awareness is an act of making sure the buyer or consumer is aware of the information about products, goods, services, and consumers rights. Consumer awareness is important so that buyer can take the right decision and make the right choice.


When we buy commodities we find that the price charged is sometimes higher or lower than the Maximum Retail Price printed on the pack. Discuss the possible reasons. Should consumer groups do something about this?

The possible reason for higher price may be overcharging by the retailer from an ignorant customer. The possible reason for a price lower than Maximum Retail Price (MRP) may be due to bargaining by the customer, or a discount being given by the retailer to increase his sale. 
Consumer groups should pressurise the dealers to ensure that no dealer c.harges more than the MRP under any condition. They should in fact put pressure on dealers to reduce their margins and charge lesser than the MRP as far as possible. 


"Consumer awareness in India faced so many obstacles and had not been an easy growth". Explain. 

Consumer awareness in India faced the following obstacles for which it had not been an easy growth 
(i) The consumer redressal process is becoming cumbersome, expensive and time consuming. 
(ii) Many a time, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings, etc. 
(iii) Evidence is not easy to gather as most of purchases are done without cash memo. 
(iv) Most purchases in the market are small retail sales. The enforcement of laws that protect consumers especially in the unorganised sectors is weak. 
(v) The existing laws are also not very clear on the issue of compensation to consumer injured by defective products. 


Answer the following questions in a sentence each:
When is the 'World Consumers' Day' celebrated? 

World Consumer Rights Day Is celebrated every year on Match 15.


"It was presumed that it was the responsibility of consumers to be careful while buying." Do you agree with the statement? Give your view points.

Yes, I do agree with this statement that it is the responsibility of consumers to be careful while buying. Consumer movements can be effective only with the consumers' active involvement.
Consumers should purchase quality marked products such as ISI, Agmark, Hallmarks, etc. Also, they should ask for cash memo for the items purchased whenever possible. Consumers should know their rights and excise them. They should make complaint for genuine grievances. When we as consumers become conscious of our rights, we will be able to discriminate and make informed choices.


"There is a need for rules and regulations to ensure protection for consumers". Give any two examples to substantiate the statement.

Following are the reasons that rules and regulation are needed for the protection of consumers in the marketplace
(i) Adulteration causes heavy loss to the consumers, they suffer from monetary loss as well as it affects their health.
(ii) Sellers make false claim about the durability and quality of their products through attractive advertisements.
(iii) Individual consumers often find themselves in a weak position in the market when the seller tries to shift all the responsibilities on to the buyer in case of complaint.
(iv) Markets do not work in fair manner when producers are few and powerful, whereas consumers purchase in small amounts and are scattered.
(v) Many people who work in the unorganised sector have to work at a low wage and accept conditions that are not fair and are also harmful to their health.


"The consumer movement arose out of dissatisfaction of the consumers." Justify the statement. 

Yes, the consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers. Earlier there was no legal system available to consumers to protect them from exploitation in the marketplace. The consumer movement in India as a social force originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. 


"Consumer is the King of market, nevertheless he is exploited." Discuss the reasons for this statement.

Customers are considered to be the King of the market. This holds true in today's market scenario. Traditionally, this rule usually entails a company's promise to provide good customer services to the Customers. Customers are key to business success.
For a business to sustain having its customers is the prime requirement. various businesses spend a lot of time and effort in advertising and promotion of their product to attract the consumer.



Define a consumer. Explain the importance of educating consumers of their rights.

Consumer - A person who has indicated his or her willingness to obtain goods and / or services from a supplier with the intention of paying for them is termed as consumer.
Importance of educating consumers of their rights-
(i) For the physical protection of - To educate consumers of their rights is necessary so as to provide safeguard against the products that are unsafe or harmful to the health and welfare of a consumer.
(ii) For protection against unfair trade practices - Consumer should know about his rights and in case of any exploitation, due to supply of substandard defective goods etc. he should know the means to redress against frauds.
(iii) Protection against environmental hazards - Use of chemical fertilizers and certain refinery complexes pollute air, water and food and they cause a threat to human life. Thus, protection is needed for it.
(iv) Protection for deceptive advertising - Some producers give incorrect information about their products and the consumer is misled by these fake advertisements which costs hard on their pockets. They should aware of deceptive advertising.



Write a short note on consumer awareness.

Educating consumers about their rights and duties is known as consumer awareness.
Major limitation of consumers is that they are not fully aware of their rights and different Acts enacted by government for the protection of their interests.


Briefly explain any five rights stated in the Consumer Protection Act.

The rights stated in the Consumer Protection Act are follows:

  • (i) Right to safety: It implies the right to be protected against the marketing of such goods and services which are hazardous to our health and property. The goods and services purchased by any consumer should be safe. The producers should also strictly follow the safety rules and regulations while producing any goods or services. The consumer should preferably purchase branded products with ISI mark or Agmark or Hallmark.
  • (ii) Right to be informed: It implies the right of any consumer to be informed about the quality, quantity, purity, standard and price of the product so as to protect him/her against unfair trade practices.
  • (iii) Right to choose: It implies that a consumer has the right to choose from among the variety of goods and services available before him/her at a competitive price.
  • (iv) Right to be heard: It implies that the interests of the consumers will receive due considerations at appropriate forums. Thus any consumer has the right to raise his/her voice against unfair and restrictive trade practices. It also includes the right to be represented in various forums formed to protect the interests of the consumer.
  • (v) Right to seek redressal: It implies the right of any consumer to seek redressal of his/her grievances against unfair trade practices or unscrupulous exploitation of consumers, by the traders. He/she also preserves the right to seek compensation for the damage (physical or mental) caused by the unfair trade practice.



Class 10 Economics Extra Questions