Class 12 Business Studies Chapter 11: Marketing Management NCERT Solutions

1. Under which consumer right does a business firm set up a consumer grievance cell? 

Ans: The consumer right that requires a business to establish a consumer grievance cell is known as the "Right to be Heard." Consumers have the right to file a complaint if they are dissatisfied with a service they have received.

2. Which quality certification mark is used for agricultural products? 

Ans: The AGMARK sign, issued and certified by the Directorate of Marketing and Inspection of the Government of India is the quality certification mark used for agricultural products.

3. What is the jurisdiction of cases that can be filed in a State Commission? 

Ans: The state commission will accept cases where the value of the disputed goods and services, as well as the compensation sought, fall between 1 crore and 10 crore.

4. State any two relief available to consumers under CPA. 

Ans: Consumers can obtain the following reliefs under the CPA, or Consumer Protection Act:

• Removal of the deficiencies in the services.

• Replacement of damaged goods with new ones that are free of flaws.
  
  

5. Name the component of the product mix that helps the consumer to exercise the right to information.

Ans: The component of the product mix that enables the consumer to exercise his or her right to information is known as the product's quality certification.

6. Enumerate the various Acts passed by the Government of India which help in the protection of consumers' interests. 

Ans: The following are some of the Acts passed by the Government of India to protect the interests of consumers.

• The 1986 Consumer Protection Act: This Act protects consumer interests against various forms of exploitation, such as defective goods, deficiencies in services, unfair trade practices, and so on. For the redressal of consumer grievances, the Act established a three-tier machinery consisting of District Forums, State Commissions, and the National Commission.

• The Contract Act of 1982: This Act defines the conditions under which a contract's promises are binding. Furthermore, the Act specifies the remedies available in the event of a breach of contract.

• The Sale of Goods Act, 1930: The Act provides consumers with protection and relief if the goods they purchase do not conform to the express or implied conditions and warranties.

• The Agriculture Produce (Grading and Marking) Act of 1937: This Act establishes grade specifications for agricultural and livestock commodities. It specifies the process for grading, packing, and labeling agricultural products. AGMARK is the quality certification mark provided by the Act.

• The Prevention of Food Adulteration Act of 1954: This Act was enacted to prevent food adulteration and to ensure the purity of food items.

• The Standards of Weights and Measures Act of 1976: This Act protects consumers from exploitative practices involving under-weight and under measurement of goods.

• The Essential Commodities Act of 1955: This Act establishes control over the production, supply, and distribution of essential goods. It also regulates inflationary trends and ensures that goods are distributed equally. It also keeps an eye out for anti-social activities like hoarding and black marketing.

• Trade Marks Act of 1999: This Act was enacted to prevent the use of false marks on goods and, as a result, to protect consumers from such goods.

• The Competition Act of 2002: This Act was enacted to prevent business firms from engaging in practices that impede market competition.

• The Bureau of Indian Standards Act (1986) : The Bureau of Indian Standards was established under the Act to develop standards for the quality of goods and to provide quality certification through the BIS certification scheme based on these standards. ISI is the quality certification mark provided by the Act. In addition, a grievance cell has been established to address complaints about the quality of the products.
  
  

7. What are the responsibilities of a consumer? 

Ans: A consumer is responsible for protecting his or her own interests and avoiding exploitation. The following are some of a consumer's responsibilities.

• Awareness: A consumer should be aware of the various goods and services that are available so that he can choose and purchase carefully and wisely.

• Seeking Quality Marks: Before purchasing goods, a consumer should always look for quality certification marks such as ISI in the case of electrical goods, AGMARK in the case of agricultural goods, and so on.

• Requesting Cash Memo: When purchasing goods and services, a consumer should always request cash memos or bills. The bill serves as proof of purchase and can be used in the future.

• Reading Labels: Product labels provide information such as price, weight, and expiration date. The labels must be carefully read.

• Honest Transactions: A consumer should always opt for legal transactions and avoid illegal trade practices such as black marketing and hoarding.

• Ensure Safety: To ensure the safe use of the product, a consumer must carefully read the manuals and instructions provided by the manufacturer.

• Complaint Filing: If the product is found to be defective or if there is a deficiency in the product's quality, a complaint must be filed in the appropriate forum.

• Consumer Societies: Consumer organizations and societies must be established in order to promote consumer education and awareness.

• Environmental Protection: Consumers must also work to protect the environment by avoiding waste, pollution, and so on.
  
  

8. Who can file a complaint in a consumer court? 

Ans: Consumer courts and consumer forums have been established under the Consumer Protection Act to address consumer complaints.

The following people have the right to file a complaint in a consumer court.

• a consumer; or

• voluntary consumer association which is registered under any appropriate law for the time being in force; or

• the Central Government or State Government; or

• the Central Authority; or

• one or more consumers, where they all share a common interest; or

• legal heir or legal representative of the consumer in case of death of a consumer, ; or

• Parent or legal guardian of the consumer, in case of a consumer being a minor.
  
  

9. FSSAI (Food Safety and Standards Authority of India) has made a proposal for hotels and other food outlets to declare the kind of oil/fat used in cooking each of the food items on their menus. Name and explain the Consumer Right being reinforced by this proposal.

Ans: The “right to be informed” is a consumer right that is reinforced by this proposal. In this right, the consumer has the right to complete information about the product that he or she wishes to purchase, which can include details such as the date of manufacture, quantity, expiry date, and directions for use. As a result of this legal obligation, manufacturers are required to publish all such information on the product's packaging.

10. Who is a consumer as per CPA?

Ans: Under the Consumer Protection Act 2019, a consumer is a person who buys any goods or avails services for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment.

11. Explain the importance of consumer protection from the point of view of a business. 

Ans: Consumer protection refers to the education of consumers about their rights and responsibilities, as well as the resolution of their grievances and complaints. Consumer protection is critical not only for consumers but also for businesses.

The following points emphasize the importance of consumer protection from a business standpoint. 

• Long-Term Interest of Business: With rising competition and a desire to stay in business, consumer satisfaction and interest are critical for any company. A company's goodwill and reputation are built by taking care of the interests of its customers. A satisfied customer not only returns and generates repeated sales for the company, but also attracts new customers by spreading the word. Thus, it is in the long run benefit of the business to protect the interests of consumers. 

• Business Uses Society’s Resources: A business uses societal resources to produce a variety of goods and services. A business earns profits by selling these goods and services to society. As a result, it is their responsibility to provide goods and services that are in the best interests of society as a whole.

• Moral Justification: Moral values and ethics are important in business today. Every business has a moral obligation to protect the interests of its customers. They must adhere to ethical and moral values and avoid any form of consumer exploitation, such as unfair trade practices, adulteration, and so on.

• Social Responsibility: As a business earns profits by selling various goods and services to customers, it becomes their responsibility to look after their interests and satisfaction.

• Government Interference: Any business that engages in any form of consumer exploitation, such as unfair trade practices, adulteration, and so on, invites government intervention. Such government meddling taints the company's goodwill and image. As a result, it is in the best interests of the business to voluntarily follow such practices that protect the interests of the consumers.
  
  

12. Explain the rights and responsibilities of a consumer. 

Ans: Consumer Rights

A consumer has six rights under the Consumer Protection Act. A consumer's rights are as follows.

• Right to Safety: Every consumer has the right to be protected from goods and services that endanger life, health, or property. Manufacturing flaws in electrical appliances and cooking gas cylinders, for example, can be hazardous. The consumer has a right to be shielded from such products.

• Right to be Informed: Before purchasing a product, the consumer has the right to get complete information about it, regarding the quality, quantity, ingredients, purity, price etc., so as to make an informed decision In India, manufacturers are required by law to provide all such information on the package and label of the goods. 

• Right to Choose: A consumer has the right to select from a wide range of goods and services at reasonable prices. That is, the consumer has the right to a diverse range of products at reasonable and competitive prices. As a result, the retailer or supplier should provide a wide range of products in terms of quality, brand, price, and so on. They should not persuade customers to purchase a specific product or service.

• Right to be Heard: A consumer has the right to file a complaint if he or she has a grievance or is dissatisfied with a product or service. A consumer can file a legal complaint and seek redressal for any form of exploitation in appropriate government-established forums. Many consumer organizations and associations are now working in this area as well. 

• Right to Seek Redress: In the event of exploitation, a consumer has the right to seek redress and compensation. The Consumer Protection Act provides for compensation in the form of product replacement, cash compensation, defect repair/removal, and so on.

• Consumer Education: Consumers have the right to learn and be well-informed throughout their lives. He should be informed of his rights and remedies in the event that the goods or service does not meet his expectations. The Indian government has integrated consumer education in school curriculum and is using the media to educate consumers about their rights. For example, efforts like Jaago Grahak Jaago is one such measure to educate the consumers
  
  

Consumer Responsibilities

A consumer has some responsibilities in addition to his rights to protect himself from exploitation. The following are some of a consumer's responsibilities. 

• Awareness: A consumer should be aware of the various goods and services that are available. As a result, he is able to make an informed and wise decision.

• Seeking Quality Marks: Before purchasing goods, a consumer should always look for quality certification marks such as ISI in the case of electrical goods, AGMARK in the case of agricultural goods, and so on.

• Requesting Cash Memo: When purchasing goods and services, a consumer should always request cash memos or bills. The bill serves as proof of purchase and can be used as a reference in the event of a complaint.

• Reading Labels: Product labels provide information such as price, weight, and expiration date. Before purchasing the goods, the consumer must carefully read these labels.

• Honest Transactions: A consumer should always opt for legal transactions and avoid illegal trade practices such as black marketing and hoarding.

• Ensure Safety: To ensure the safe use of the product, a consumer must carefully read the manuals and instructions provided by the manufacturer. Before using an electrical appliance, for example, the instructions must be carefully read. 

• Complaint Filing: If the product is found to be defective or if there is a deficiency in the product's quality, a complaint must be filed in the appropriate forum.

• Consumer Societies: To promote consumer education and awareness, consumer organizations and societies such as the Consumer Coordination Council, Common Cause, and the Karnataka Consumer Service Society must be established.

• Environmental Protection: Consumers must also work to protect the environment by avoiding waste, reducing pollution, and so on.
  
  

13. What are the various ways in which the objective of consumer protection can be achieved? 

Ans: Consumer protection is the process of making consumers aware of and educated about their rights and responsibilities, as well as assisting them in seeking redressal for their grievances and complaints. Consumer protection is critical for both consumers and businesses. 

The following are some of the methods for achieving the goal of consumer protection.

• Self-Administration by Business: Businesses should recognize that protecting their customers' interests is in their best interests in the long run. They must put in more effort to achieve their goals. They must understand that satisfied customers not only lead to high sales but also spread the word about the company, attracting new customers. They must adhere to business ethics, and avoid activities such as unfair trade practices, adulteration, and so on that hampers the consumer interests. To address customer complaints, many businesses have established grievance cells and customer care centers.

• Formation of Business Associations: Many business and commerce associations, such as the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industries (CII), have been established in India to protect consumers. They establish guidelines for their members to follow when dealing with customers.

• Consumer Education and Awareness: One of the most important steps toward consumer protection is consumer education and awareness. A consumer's rights, as defined by the Consumer Protection Act, must be well understood and communicated to him. He must also be aware of the reliefs available to him under the Act in the event of any form of exploitation. Furthermore, he must be educated on his responsibilities in order to protect himself from deception and exploitation. A well-educated and informed consumer can make sound decisions.

• Formation of Consumer Associations and Organisations: A growing number of consumer organizations and associations, such as the Consumer Unity and Trust Society, the Consumer Guidance Society of India, the Consumer Protection Council, and so on, must be established. These organizations make an active effort to educate customers and make them aware of their rights and responsibilities. Furthermore, they encourage consumers to protest any form of exploitation or deception, and they also assist them in taking legal action and seeking redress.

• Role of Government: The government plays an important role in consumer protection by enacting various consumer protection rules and legislation. The Government of India has enacted numerous regulations and laws to protect consumers, including the Consumer Protection Act, the Contract Act, the Trade Marks Act, the Competition Act, etc. The Consumer Protection Act is the most important of these. The Act establishes a three-tiered machinery consisting of a District Forum, a State Commission, and a National Commission to address consumer grievances and complaints.
  
  

14. Explain the redressal mechanism available to the consumers under the Consumer Protection Act. 

Ans: The Consumer Protection Act established a three-tiered system for resolving consumer grievances and complaints. The machinery operates at three levels: the District Consumer Dispute Redressal Forum (or District Forum), the State Consumer Dispute Redressal Commission (State Commission), and the National Consumer Dispute Redressal Commission (National Commission). 

The following is a brief explanation of the Consumer Protection Act's machinery.

A. DISTRICT FORUM

The state concerned establishes district forums in each district. The following are the key characteristics:

• It is made up of a President and two members, one of whom must be a woman, who are officially nominated by the state government.

• The value of consumer complaints should not exceed Rs. 1 crore.

• Upon receiving the complaint, the district forum shall forward it to the opposing party and submit the items or sample to a laboratory for testing.

• If the district forum determines that the goods are defective or that there has been unfair trading practices, the opposite party may be ordered to repair or return the items or pay compensation. If any of the parties is not satisfied with the district forum's decision, they have 45 days to file an appeal with the state forum from the date of order.
  
  

B. STATE COMMISSION

The government establishes a state commission in each state. The following are the key characteristics:

• Each commission has a president and at least two members appointed by the state government, one of whom should be a woman.

• The total worth of the products or services, including the compensation sought, is greater than Rs. 1 Crore but less than Rs. 10 crore.

• Upon receiving a complaint, the state commission may submit the matter to the opposing party and send the items to a laboratory for examination.

• After being satisfied, the state commission might require the other party to replace, reimburse, or pay compensation. If any of the parties is not pleased with the judgement, they can file a complaint with the national commission within 30 days of the order being issued.
  
  

C. NATIONAL COMMISSION

Central government sets the National commission. The provisions are:

• It is made up of a President and at least four members chosen by the central government, one of whom should be a woman.

• All complaints relating to products and services with a compensation value above Rs. 10 crore can be filed with the national commission.

• When the national commission receives a complaint, it can also refer it to the opposing party and send items for testing.

• The National Commission has the authority to issue orders for product replacement and loss compensation, among other things.

• If any of the parties is not pleased with the decision taken, they can file a complaint with the Supreme Court of India within 30 days of the order being issued.
  
  

Reliefs Available To The Consumer

• Removal of flaws in the goods.

• Removal of the deficiencies in the services.

• Replacement of damaged goods with new ones that are free of flaws.

• Refunding the complainant for the price paid by him.

• Payment of an appropriate amount of compensation for any loss or injury that has occurred.

• In suitable circumstances, payment of punitive damages.

• Discontinuance or abandonment unfair/restrictive trade practices.

• Discontinuance of the sale of hazardous goods and services.

• Payment to the consumer welfare fund (not less than 5%)  which is to be used in the prescribed manner.

• Run corrective advertisements to counteract the effect of misleading advertisements.

• Reimburse all parties for their expenses.
  
  

15. Explain the role of consumer organisations and NGOs in protecting and promoting consumers' interests. 

Ans: Consumer organizations and non-governmental organizations (NGOs) play an important role in protecting and promoting the interests of consumers. Consumers' Association, Consumer Coordination Council, Consumer Protection Council, Common Cause, and others are among the important NGOs and consumer organizations. The following are the functions that these organizations perform in order to protect the interests of consumers.

• Consumer Education: Through various training programs and workshops, NGOs and consumer organizations educate consumers about their rights.

• Journal Publishing: They publish journals and periodicals to disseminate information and raise awareness about various consumer issues, legal remedies, and other related topics.

• Legal Assistance: They also offer legal assistance to consumers and assist them in seeking appropriate redress.

• Encouraging Consumer Protest Against Exploitation: They encourage consumers to protest any form of exploitation and unfair trade practices. 

• Complaint Assistance: They encourage consumers to file complaints in appropriate forums and file complaints on their behalf.

• Taking Initiatives: They not only encourage consumers to file complaints, but they also take the initiative to file cases in the public's interest.

• Product Quality Testing: They conduct quality tests on various products in laboratories and publish the results.
  
  

16. Mrs. Mathur sent a jacket to a laundry shop in January 2018. The jacket was purchased at a price of Rs. 4,500. She had previously sent the jacket for dry cleaning with Shine Dry Cleaners and the jacket was cleaned well. However, she noticed that her jacket had white discoloration marks when she collected the jacket this time. On informing the dry cleaner, Mrs. Mathur received a letter confirming that discoloration indeed appeared after the jacket was dry cleaned. She contacted the dry cleaner multiple times and requested for compensation for discoloured jacket but to no avail. Upon Consumer court’s intervention, Shine Dry Cleaners agreed to compensate Rs. 2,500 to Mrs. Mathur for the discoloured jacket.

(a) Which right was exercised by Mrs. Mathur at the first instance. 

Ans: Mrs. Mathur exercised the right "Right to be heard" in the first stance. As it is mentioned in the case that the consumer court intervened in the matter, hence, that means Mrs. Mathur filed a case in the appropriate consumer court, and therefore she exercised the right to be heard.

(b) Name and explain the right which helped Mrs. Mathur to avail the compensation. Ans: The "right to seek redressal" is the right that assisted Mrs. Mathur in obtaining compensation. The consumer has the right under this right to seek relief or compensation if the service or product falls short of the customer's expectations.

(c) State which consumer responsibility has been fulfilled by Mrs. Mathur in the above case. 

Ans: Mrs. Mathur fulfilled her consumer responsibility by filing a complaint in an appropriate consumer forum when a flaw in the quality of goods and services purchased was discovered.

(d) State any other two responsibilities to be assumed by the consumers. 

Ans: Customers can also assume the following two responsibilities:

• Seeking Quality Marks: Before purchasing goods, a consumer should always look for quality certification marks such as ISI in the case of electrical goods, AGMARK in the case of agricultural goods, and so on.

• Requesting Cash Memo: When purchasing goods and services, a consumer should always request cash memos or bills. The bill serves as proof of purchase and can be used in the future.
  
  

17. Visit a consumer organisation in your town. List down the various functions performed by it. 

Ans: The following are the functions performed by consumer organizations:

• Consumer awareness: One of the primary functions of consumer organizations is to raise consumer awareness of their rights and responsibilities. It organizes various workshops and publishes regular journals to accomplish this.

• Research: It conducts research on a variety of consumer issues and other areas of consumer interest.

• Assists Consumers: It helps consumers file complaints about fraudulent practices, and sometimes they file cases on behalf of the consumer as well..

• Monitors illegal acts: It monitors illegal activities such as black marketing and adulteration. It notifies the appropriate government authorities so that appropriate action can be taken.

• Testing product quality: Few consumer organizations also work for quality testing of the consumer products on a regular basis, so as to ensure the authenticity and the purity of the product offered by business firms.
  
  

18. Collect some newspaper cuttings of some consumer cases and the rulings given therein.

Ans: The consumer cases and their rulings are:

Kailash Vasdev vs. Bajaj Electricals Ltd., Mumbai

In the given case, the concerned individual purchased a Morphy Richards oven in September 2010. The safety lock on the oven door snapped in February 2011. In this regard, Mr. Kailash contacted the Bajaj Electricals service center. Despite numerous follow-ups, the service center did not replace the damaged part. In April 2011, he approached the consumer forum.

After the case was heard, a decision was made in favor of Kailash Vasdev, and the company was forced to replace the oven.

Tejpal Rohra vs. ICICI Bank, Mumbai

In January 2010 Mr. Tejpal had drawn two cheques of value Rs 50,000 each from his ICICI saving bank account to be transferred to a fixed deposit account. However, without informing Mr. Tejpal, the bank transferred the funds to ICICI prudential life insurance. Despite repeated complaints to management, no action was taken. Mr. Tejpal then approached the consumer forum in November 2010.

The bank was ordered to return the amount invested in ICICI prudential life insurance.

Voltas Ltd. vs. Jayesh Lohana, Mumbai

Mr. Jayesh Lohana filed a complaint alleging that Voltas ltd. failed to provide him with the annual maintenance on the purchased air conditioner as promised.

A complaint was then lodged with the consumer forum, which ordered Voltas ltd. to provide the aforementioned services.

Bhawesh Chandra Jha of Orissa v. Royal Images Catalogue Co. Pvt. Ltd. of Chennai

Mr. Bhavesh had placed an order with Royal Images Catalogue Co. Pvt. Ltd. Payment was made by credit card. The goods, however, were delivered to the incorrect address. When the customer complained, the company acknowledged the error but refused to refund the money.

Mr. Bhawesh then went to the consumer forum, which ordered the company to refund the money.

Ajit V. Gole of Andheri vs. Ramabai Paranjape Balmandir of Vile Parle

Mr. Ajit V. Gole had his daughter admitted to Ramabai Paranjape Balmandir. He also paid the registration and academic fees Rs 3,000, and Rs 30,000. While the receipt clearly stated that registration fees are non-refundable, no such statement was made for academic fees. Mr. Ajit Gole later cancelled the admission and requested a refund of his academic fees. The school, however, refused to refund the fees.

Mr. Ajit then approached the consumer forum, which ordered the school to refund the amount in question.

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NCERT Solutions of Class 12 Business Studies

Chapter – 12: Consumer Protection

NCERT Solutions for Class 12 Business Studies Chapter – 12 Consumer Protection provides all best answers. The concepts explained in this chapter include the rights of customers, the importance of Consumer Protection, The Consumer Protection Act, 1986 (CPA 1986), responsibilities of a customer, etc. It mainly focuses on the salient features of the Consumer Protection Act and also provides the provisions of the Consumer Protection Act. It will give you a brief explanation of how to file a complaint and who can file it and how can the compensation be claimed. It will also discuss the ways and means of consumer protection. It will also address the important act of Redressal Agencies under the Consumer Protect Act, 1986.

NCERT Solutions of Class 12 Business Studies Chapter Wise Marks Weightage

All the concepts in Class 12 Business Studies are equally important. The concept of Financial Management and Financial Markets constitute 15 marks. While Marketing Management and Consumer Protection will constitute 15 marks as the previous concepts. The most important concepts of Consumer protection is about the Consumer Protection Act, 1986 and Redressal Agencies under Consumer Protection Act, 1986. These laws and rules will ensure the business goes in the correct direction and the customer experience is not affected. Customer satisfaction should be given the highest priority.

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