CBSE 10 Economics Chapter 5 Consumer Rights Questions and Answers

Consumer rights Question and answer

➜ Consumer Rights Notes

Exercise Question and Answer

1. Why are rules and regulations required in the marketplace? Illustrate with a few examples.

Ans: Rules and regulations are required to protect consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility to the buyer. Exploitation in the marketplace happens in various ways. Hence , rules and regulations are required in the marketplace to protect consumers from such incidents.

For example:

(i) Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold. In this case, rules and regulations help buyers from this kind of seller.

(ii) A company for years sold powdered milk for babies all over the world as the most scientific product claiming this to be better than mother’s milk. It took years of struggle before the company was forced to accept that it had been making false claims due to rules and regulations.

iii) If a person buys a product and checks the expiry date after paying for the product, the shopkeeper must restore the expired product. If no rules were maintained, then the shopkeeper might refuse to compensate for the product.

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

Ans: The consumer movement arises due to the dissatisfaction of the consumers. The factors that gave birth to the consumer movement in India are as follows:

There was no legal system to protect consumers from exploitation in the marketplace.

It was started because of the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.

Rampant food shortages, Black marketing, and Adulteration of food and edible oil gave birth to the consumer movement in an organization in 1960.

Till the 1970s, consumer organizations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractices in ration shops and overcrowding in road passenger transport. More recently, India witnessed an upsurge in the number of consumer groups.

Because of all these efforts, the movement 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.

That’s why A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA.

3. Explain the need for consumer consciousness by giving two examples.

Ans: The need for consumer awareness was felt because traders and manufacturers go to any extent to make a profit. so consumers must be conscious while buying or trading so they can not cheat or exploit consumers.

For example, a person must always check the expiry and manufacturing date of the product before buying and paying. They can complain about the shopkeeper in the consumer forum if any expired product is found in the shop.

Another example that proves that consumer consciousness means a consumer must always ask for a computerized bill for the goods they buy. This is because if a consumer has been provided with the wrong product, the consumer forum demands a bill that acts as proof that the product given by the shopkeeper is wrong.

4. Mention a few factors which cause the exploitation of consumers.

Ans: Factors that cause the exploitation of consumers are mentioned below:

(i) Dishonesty and Malpractices: Overcharges, hoarding, adulteration, black marketing, tampering with weight and measures, etc.

(ii) Lack of consumer consciousness: A consumer must always check the MRP, expiry date, and manufacturing date and then buy a product.

(iii) Negligence and false information: Negligence of doctors/surgeons and other staff members in the hospitals, negligence of principal/teachers in the school, and negligence of government officials in all public dealing offices cause exploitation of consumers.

(iv) Limited and false information about the goods or products are given to the consumers. As a result, consumers make a wrong choice and suffer losses.

(v) Low literacy leads to consumer exploitation as they do not have complete knowledge about the products.

(vi) If there is one or a few producers of a product, there is a possibility of manipulation in prices and supply.

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

Ans: The rationale behind the enactment of the Consumer Protection Act 1986 was to set up a department solely responsible for handling the complaints raised by the consumer and a separate department for the Central and state governments. Its main aim was to address the problems of consumers who reach the consumer courts for exploitation in the marketplace. The consumer himself can plead the case in a consumer court. A person can make a complaint to consumer court on plain paper along with supporting documents such as a guarantee or warranty card, cash memo, etc.

6. Describe some of your duties as consumers if you visit a shopping complex in your locality.

Ans: Some of my duties as a consumer, if I visit a shopping complex, are:

i) Always ask for a proper bill.

ii) Check the MRP and do not pay more than the market price.

iii) Check the expiry and manufacture date before buying any goods from the market.

iv) If you see any rule or regulation under the marketplace laws being exploited, immediately report the consumer courts.

v) Do not leave a small amount of disparity unattended. This may make the shopkeeper liable to continue the disparity for the other consumers as well.

➜ Consumer Rights Notes

7. Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark you will have to look for and why?

Ans: If you are buying a bottle of honey or a biscuit packet, the logo or mark one will have to look for is ISI or Agmark. It is because these symbols specify that the products have been made by Government authorized companies. These are logos certifying the quality of goods in the market. Only those producers are allowed to use these marks who follow certain quality standards set by the organizations issuing these certifications. Thus, if a bottle of honey or a biscuit packet has one of these logos on it, then it implies that the product is of good quality.

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

Ans: The following legal measures were taken by the government to strengthen the consumers in India :

i) Consumer Protection Act popularly known as COPRA was enacted in 1986. It was amended in 1991 and 1993.

ii) In October 2005, the Right to Information Act was enacted. This enables citizens to have all the information about the functions of government departments. The citizens have the right to know the particulars of the goods and services they purchase.

iii) A consumer court was set up for people where cases against any disparity with the consumer were raised.

9. Mention some of the rights of consumers and write a few sentences on each.

Ans: A few rights of the consumers include:

i) Right to Information – The RTI Act was passed in 2005 with the aim of making every citizen of the country aware of the functioning of the Government.

ii) Right to Choose – Any consumer who receives a service in whatever capacity, regardless of age, gender, and nature of service, has the right to choose whether to continue to receive the service. No customer can be denied the right to choose what they want to buy.

iii) Right to Seek Redressal – Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, they have the right to get compensation depending on the degree of damage.

iv) Right to Represent – This act gives the right of the consumer to present before the consumer court and present their case of disparity in the form of law.

10. By what means can the consumers express their solidarity?

Ans: Consumers can express their solidarity by organizing themselves in small groups that can fight against exploitative trade policies. Such groups get financial aid from the government to fight the case against the shopkeeper.

11. Critically examine the progress of the consumer movement in India.

Ans: The consumer movement in India has progressed rapidly over the past few years. The consumer rights that have been passed by the Government of the country have managed the people to become more aware and fight for their rights in the consumer courts. The Consumer Protection Act (COPRA) passed by the government made it easier for people to complain about any wrong practice performed by the shopkeeper or seller of the product. The public has become more aware, and proper actions are taken against any ill practice in the marketplace.

12. Match the following.

(i) Availing details of ingredients of a product(a) Right to safety
(ii) Agmark(b) Dealing with consumer cases
(iii) Accident due to faulty engine in a scooter(c) Certification of edible oil and cereals
(iv) District Consumer Commission(d) Agency that develops standards for goods and services
(v) Food fortification(e) Right to information
(vi) Consumers International(f) Global-level institution of consumer welfare organizations.
(vii) Bureau of Indian Standards(g) Addition of key nutrients to staple foods

Ans:

(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 Commission(b) Dealing with consumer cases 
(v) Food fortification(g) Addition of key nutrients to staple foods 
(vi) Consumers International(f) Global-level institution of consumer welfare organisations 
(vii) Bureau of Indian Standards(d) Agency that develops standards for goods and services 

13. Say True or False.

(i) COPRA applies only to goods.False
(ii) India is one of the many countries in the world which has exclusive authorities established for consumer dispute redressal.True
(iii) When a consumer feels that he has been exploited, he must file a case in the District Consumer Commission.True
(iv) It is worthwhile to move to consumer commissions only if the damages incurred are of high value.True
 (v) Hallmark is the certification maintained for the standardization of jewelry.True
(vi) The consumer redressal process is very simple and quick.False
(vii) A consumer has the right to get compensation depending on the degree of the damage.True

➜ Consumer Rights Notes

Additional question and answer

Multiple choice answer type question

1. We can participate both ________ and __________ in the market.

a) producer, moneylender

b) moneylender, consumer

c) industry, consumer

d) producer, consumer

Ans: d) producer, consumer

2. Consumer use _________ goods.

a) Final

b) Raw

c) both Raw and final

Ans: a) Final

3. Which logo is used for the standardization of agricultural products?

a) Agmark

b) Hallmark

c) Amark

Ans: a) Agmark

4. When did the consumer movement organized form?

a) 1970

b) 1960

c) 1965

d) 1950

Ans: b) 1960

5. Where did the consumer movement engage till 1970?

a) writing articles and holding exhibitions

b) only writing articles

c) only holding exhibitions

d) none of them

Ans: a) writing articles and holding exhibitions

➜ Consumer Rights Notes

6. When did United Nations adopt the UN Guidelines for Consumer Protection?

a) In 1985

b) In 1970

c) In 1960

d) In 1975

Ans: a) In 1985

7. What did United Nations adopt in 1985?

a) the unity Guideline for consumer

b) the UN Guidelines for Consumer Protection

c) the UN Guidelines for producer

Ans: b) the UN Guidelines for Consumer Protection

8. When did the consumer protection act formed by the Indian government?

a) 1960

b) 1970

c) 1985

d) 1986

Ans: d) 1986

9. What is the full form of MRP?

a) Minimum retail price

b) Minimum rebate price

c) Maximum rebate price

d) Maximum retail price

Ans: d) Maximum retail price

10. When did RTI Act enact?

a) in October 2005

b) in October 1960

c) in October 1970

d) in October 1965

Ans: a) in October 2005

11. Full form of RTI

a) Right of the Information

b) Right of Information

c) Right the Information

d) Right to Information

Ans: d) Right to Information

12. When did India celebrate National Consumers’ Day?

a) October 24

b) December 24

c) June 24

d) November 24

Ans: b) December 24

➜ Consumer Rights Notes

13. When did COPRA was amended?

a) 2000

b) 2012

c) 2016

d) 2019

Ans: d) 2019

14. Hallmark logo is used is ________.

a) jewelry

b) water

c) luxury good

Ans: a) jewelry

15. District Consumer Disputes Redressal Commission deals with cases involving claims up to _____.

a) 20 crores

b) 60 lakhs

c) 1 crore

Ans: c) 1 crore

16. In the market, rules and regulations are required to protect the interest of ______.

a) consumers

b) producers

c) industries

d) organization

Ans: a) consumers

17. Total number of Consumer groups in India is __________.

a) 100

b) 700

c) 500

Ans: b) 700

18. National Commission deals with cases involving claims exceeding ______.

a) 10 crore

b) 1 crore

c) 20 crore

Ans: a) 10 crore

➜ Consumer Rights Notes

Short answer type question

19. What are consumer rights?

Ans: The rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position.

20. How we can be both producers and consumers in the market?

Ans: In the market, we are both producers and consumers. If we are producers, we can work in any sector such as agriculture, industry, or services. As consumers, we purchase final goods to use.

21. Why rules and regulations are needed to promote development?

Ans: These could be for the protection of workers in the unorganized sector or to protect people from high-interest rates charged by moneylenders in the informal sector. Similarly, rules and regulations are also required for protecting the environment.

22. Why did the consumer movement arise?

Ans: The consumer movement arose out of dissatisfaction with the consumer’s unfair practices being indulged by the sellers. There was no legal system available to protect consumers from exploitation in the marketplace.

23. What is COPRA?

Ans: A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act 1986, popularly known as COPRA.

Consumer Right

24. What is a consumer right?

Ans: Consumers have the right to protect against the marketing of goods and delivery of services that are hazardous to life and property.

25. What are the consumer’s rights?

Ans: there are many rights such as a

i) Safety is everyone’s right

ii) Information about goods and services

iii) Right to choose

iv) Learning to become well-informed consumers

26. How does the money lander bind the borrower?

Ans: Moneylenders in the informal sector tricks to bind the borrower: they make the producer sells the produce to them at a low rate in return for a timely loan; they force a small farmer to sell her land to pay back the loan.

➜ Consumer Rights Notes

27. What happened in the 1970s?

Ans: Till the 1970s, consumer organizations were largely engaged in writing articles and holding exhibitions. They formed consumer groups to look into the malpractices in ration shops and overcrowding in road passenger transport.

28. What are consumer forums?

Ans: The consumer movement in India has led to the formation of various organizations, locally known as consumer forums or consumer protection councils.

29. What is a mediator?

Ans: Settlement of disputes with the help of a neutral intermediary outside the Consumer Disputes Redressal Commission, called a mediator.

Long type answer

30. How did consumer forums work?

Ans: They guide consumers on how to file cases in the Consumer Disputes Redressal Commissions. On many occasions, they also represent individual consumers in these commissions. These voluntary organizations also receive financial support from the government for creating awareness among people.

31. How did COPRA work in India?

Ans: Under COPRA, a three-tier quasi-judicial machinery at the district and national levels was set up for the redressal of consumer disputes. The district-level authority called District Consumer Disputes Redressal Commission deals with cases involving claims up to Rs 1 crore, the state-level Consumer Disputes Redressal Commission called State Commission between Rs 1 crore and Rs 10 crore, and the national-level commission — National Commission — deals with cases involving claims exceeding Rs 10 crore. If a case is dismissed in a district-level commission, a consumer can also appeal in the state and then in national-level commissions.

➜ Consumer Rights Notes

32. Write about consumer courts in India?

Ans: Under COPRA, a three-tier quasi-judicial machinery at the district and national levels was set up for the redressal of consumer disputes.

The district-level authority called District Consumer Disputes Redressal Commission deals with cases involving claims up to Rs 1 crore.

the state-level Consumer Disputes Redressal Commissions called State Commission between Rs 1 crore and Rs 10 crore.

the national-level commission — National Commission — deals with cases involving claims exceeding Rs 10 crore.

33. Why did COPRA amend in 2019?

Ans: The COPRA was amended in the year 2019 to further strengthen consumers in India. Buying through the Internet is now included. If there is any service deficiency or defective product, the service provider or manufacturer is also held responsible and would be penalized or even imprisoned. Settlement of disputes with the help of a neutral intermediary outside the Consumer Disputes Redressal Commission called a mediator, is now encouraged at all three tiers of Consumer Commissions. After more than 30 years of the enactment of COPRA, consumer awareness in India is spreading but slowly.

34. What is the right to safety?

Ans: Right to Safety:

(i)While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property.

(ii) Producers need to strictly follow the required safety rules and regulations.

(iii) There are many goods and services that we purchase that require special attention to safety.

35. Elaborate consumer rights under COPRA,1986.

Ans: consumer right under COPRA, 1986 –

i) Right to choice: Any consumer who receives a service in whatever capacity, regardless of age, gender, and nature of service, has the right to choose whether to continue to receive the service. Suppose you want to buy toothpaste, and the shop owner says that she can sell the toothpaste only if you buy a toothbrush. If you are not interested in buying the brush, your right to choice is denied.

ii) Right to safety: The consumer has a right to be protected against goods and services which are manufactured with substandard products or do not conform to the safety norms or might cause serious injury.

iii) Right to Information: Under this right, the customers should be informed about the ingredients used, price, batch number, date of manufacture, expiry date, and address of the manufacturers.

➜ Consumer Rights Notes

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