Andhra Pradesh BIEAP AP Inter 2nd Year Commerce Study Material 5th Lesson Consumer Protections Textbook Questions and Answers.
AP Inter 2nd Year Commerce Study Material 5th Lesson Consumer Protections
Essay Answer Questions
Explain the composition and jurisdiction of the state commission.
The state commission settles consumer disputes at the state level. The state commission is headed by the judge of a high court and comprises other members not less than two and not more than as prescribed, one of whom shall be a woman.
The state commission shall have jurisdiction to entertain consumer complaints where the value of goods and services for which the compensation claimed exceeds ₹ 20 lakhs and less than ₹ 1 crore. The state commission is empowered to call for the records and pass appropriate orders in respect of any consumer dispute within the state jurisdiction. The state commission is empowered to transfer any complaint pending before on the district forum to another district forum within the state. The state commission has circuit Benches.
In case the aggrieved party is not satisfied with the order of the state commission, he can appeal to the national commission within 30 days of passing the order.
Describe the rights of a consumer as per CPA 1986.
Although a businessman is aware of his social responsibilities even then we come across many cases of consumer protection. Hence Government of India provided the following six rights to all the Consumers under Consumer Protection Act.
1) Right to safety:
According to this right, the consumers have right to be protected against the marketing of goods and services which are hazardous to life and property. The right is important for safe and secure life.
2) Right to information :
According to this right, the consumer has right to get information about the quality, quantity, purity standard and piece of goods or services. The producer must supply all the relevant information at a suitable place.
3) Right to choice :
According to this right, every consumer has a right to choose the goods or services of his or her likings. The supplier should not force the consumer to buy a particular brand only. Consumer should be free to choose the most suitable product from his view point.
4) Right to consumer education:
According to this right, it is the right of the consumer to acquire knowledge and skill to be informed to customer. It is easier for the literate consumers to know their rights and take actions.
5) Right to seek redressal:
According to this right, the consumer has the right to get compensation or seek redressal against unfair trade practices or any other exploitation. The right assures justice to consumer against exploitation.
6) Right to heard / Right to represent:
According to this right, the consumer has the right to represents himself or to be heard or right to advocate his interest. In case a consumer has been exploited or has any complaint against the product or service then he has a right to be heard.
What are the responsibilities of a consumer?
Various efforts have been made by government or non – government organisations to protect the interest of consumer, but exploitation of consumer will stop only when the consumer will come forward to safeguard his own interest. Consumer has bear the following responsibilities.
1) Be quality conscious :
To put to stop to adulteration and corrupt practices of the manufacturers and traders, it is the duty of every consumer to be conscious of the quality of the products they buy. They should look for the standard quality certification marks like ISI, Agmark, Wool mark, Ecomark, Hallmark, etc. While making the purchases.
2) Beware of misleading advertisements :
The advertisement often exaggerates the quality of the products. Hence the consumers should not rely on the advertisement and carefully check the product or ask the users before making a purchase.
3) Responsibility to inspect a variety of goods before making selection :
The consumer should inspect a variety of goods before buying the goods and services. For this purpose, he / she should compare their quality, price, durability, after sales service etc.
4) Collect proof of transaction :
The consumer should insist a valid documentary evidence (Cash memo / invoice) relating to purchase of goods or availing of any services and preserve it carefully. Such proof of purchase is required for filing a complaint. In case of durable goods the manufacturers generally provide the warrantee / guarantee card with the product. It is the duty of the consumers to obtain these documents and ensure that these are duly sighed, stamped and dated. The consumer must preserve them till the warrantee / guarantee period is over.
5) Consumers must aware of their rights:
The consumers must aware of their rights as stated above and exercise them while buying goods and services. For example, it is the responsibility of a consumer to insist on getting all information about the quality of the product and ensure himself / herself that it is free from any kind of defect.
6) Complaint for genuine grievances:
As a consumer, if you are dissatisfied with the product, you can ask for redressal of yoifr grievances. In this regard, you must file a proper claim with the company first. The manufacturer / company do not respond, then you can approach the forums. But your claim must state actual loss and the compensation claim must be reasonable. At no cost fictious complaints should be filed otherwise the forum may penalise you.
7) Proper use of product / service :
It is expected from consumers that they use and handle the product / service properly. It has been noticed that during guarantee period, people tend to reckless use of the product, thinking that it will be replaced during guarantee period. This practice should be avoided.
Explain the redressal mechanism available to consumers under the Consumers Proction Act, 1986.
The judicial machinery set up under Consumer Protection Act (C.RA) 1986 consists of consumer courts (Forums) at the District, State and National levels. These are known as District Forum, State consumer disputes redressal commission (State Commission) and National consumer disputes redressal commission (National Commission).
1. District forum :
This is established by the state government in each of its districts.
a) Composition :
The district forum consists of a chairman and two other members one of whom shall be a woman. The district forms are headed by the person of the rank of a District Judge.
A written complaint can be filed before the district forum where the value of goods or services and the compensation claimed does not exceed ₹ 20 lakhs.
If a consumer is not satisfied by the decision of the District Forum, he can challenge the same before state commission, within 30 days of the order.
2. State commission:
This is established by the state governments in their respective states.
a) Composition :
The state commission consists of a president and not less than two and not more such number of members as may be prescribed, one of whom shall be a woman. The commission is headed by a person of the rank of High Court Judge.
b) Jurisdiction :
A written complaint can be filed before the state commission where the value of goods or services and the compensation claimed exceeds ₹ 20 lakhs but does not exceed ₹ 1 Crore.
c) Appeal :
In case the aggrieved party is not satisfied with the order of the state commission he can a appeal to National Commission within 30 days of passing the order.
3. National Commission :
The national commission was constituted in 1988 by the central government; It is the apex body in the three tier judicial machinery set up by the government for redressal of consumer grievances. Its office is situated Janpath Bhawan in New Delhi.
a) Composition :
It consists of a president and not less than four and not more than such members as may be prescribed, one of whom shall be a woman. The National Commission is headed a sitting or retired judge of supreme court.
All complaints pertaining to those goods or services and compensation whose value is more than ₹ 1 Crore can be filed directly before the National Commission.
An appeal can be filed against the order of the National Commission to the supreme court within 30 days from the date of order passed.
Who can file a complaint, what complaints can be filed, where to file the complaint, how to tile the complaints redressal of grievances under the Consumer Protection Act 1986?
For redressal of consumer grievances a complaint must be filed with the appropriate form.
Who can complaint?
The following persons can file a complaint under Consumer Protection Act 1986.
a) a consumer.
b) Any recognised voluntary consumer association whether the consumer is a member of that association or not;
c) The central or any state government;
d) One more consumers where there are numerous consumers having same interest;
e) Legal heir or representative in case of death of consumer what complaints can be filed?
What complaints can be filed?
A consumer can complaint relating to any one or more of the following;
a) An unfair trade practice or a restrictive trade practice adopted by any trader or service provider;
b) Goods bought by him or agreed to bought by him suffer from one more defects ;
c) Services hired or availed of or agreed to be hired or availed of, suffer from deficiency in any respect;
d) Price charged in excess of the price
i) fixed by or under law for the time being in force
ii) displayed on the goods or the package
iii) displayed in the price list or
iv) agreed between the parties and
e) goods or services which are hazardous or likely to be hazardous to life and safety when used.
Where to file a complaint?
If the value of goods and services and the compensation claimed does not exceed ? 20 lakhs, the complaint can be filed in the district forum ; If it exceeds ₹ 20 lakhs but does not exceed ₹ 1 crore, the complaint can be filed before the State Commission ; and if it exceeds ₹ 1 Crore, the complaint can be filed before the National Commission.
How to file a complaint?
A complaint can be made in person or by any authorised agent or by post. The complaint can be written on a plain paper supported by documentary evidence in support ’of the allegation contained in the complaint. The complaint should clearly specify the relief sought. It should also contain the nature, description and address of the complaint as opposite party, and so also the facts relating to the complaint and when and where it arose.
Very Short Answer Questions
Give the meaning of consumer.
Under the Consumer Protection Act 1986, The word consumer has been defined separately for the purpose of goods and services.
For the purpose of goods, a consumer is one who buys any goods for consideration and any user of such goods other than the person who actually buys it, provided such use is made with the approval of buyer.
For the purpose of services, a consumer is one who has any service or services for consideration ; and any benificiary of such services provided the service is availed with the approval of the person who had hired the service for a consideration.
What is consumerism?
Consumerism is defined as a social force designed to protect consumer interest in the market place by organising consumer pressure on business. By consumerism we mean the process of realising the rights of the consumer as enrises in the Consumer Protection Act, 1986 and ensuring right standards for the goods and services for which one makes payment.
What is meant by consumer protection?
Consumer protection means safe guarding the interest and rights of consumers. In other words, it refers to the measures adopted for the protection of consumers from redressal of their grievances. The most common business malpractices are sale of adulterated, spurious, substandard and duplicate goods, false and under weighting, hoarding and black marketing, charging more than MRP Price etc. .
The state government in each district establishes District forum by notification. The district forum consists of a president nominated by the state government. The forum also comprises two other members who shall have atleast 10 years of experience in dealing problems of economics, law commerce and industry. Every member of the form shall have tenure of 5 years or 65 years whichever is earlier. The District collector acts as the chairman of the District Forum. The District forum shall have jurisdiction to entertain consumers complaints where the value of goods and services which the compensation claimed, should ₹ 20 lakhs.
The state commission settles the consumer dispute at state level. The state commission is headed by the judge of High Court and comprised of other members not less than two and not more than such members as prescribed. The state commission is empowered to call for the records and appropriate orders in respect of any consumer dispute within the state jurisdiction. The state commission shall have jurisdiction to entertain consumer complaints where the value of goods and services for which compensation claimed exceeds ₹ 20 lakhs.
National commission operates at National level. It settle the consumer disputes at in the country. The National Commission has a President, who should be a serving or retained Supreme Court Judge the commission also comprises other members of not less than four. The president and all the members of the commission are appointed by central government. The National Commission shall have jurisdiction to entertain consumers complaints where the value of goods and services and compensation exceeds ₹ 1 crore.
Who is consumer? In the opinion of Mahatma Gandhi.
Mahatma Gandhi, the father of nation, attached great importance to what he described as the ‘poor consumer’, who according to him should be the principle benificiary of the consumer movement. He said “A consumer is the most important visitor on our premises. He is not dependent on us, we are on him. He is not an interruption to our work; he is the purpose of it. He is not an outsider to our business ; he is a part of it. We are not doing him a favour by serving him ; he is doing us a favour by giving an opportunity to do so.