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Chapter-12-Consumer Protection

Board CBSE
Textbook NCERT
Class Class 12
Subject Business Studies
Chapter Chapter-12-Consumer Protection
Chapter Name Chapter 12 Consumer protection
Category CUET (Common University Entrance Test) UG

MCQ-Based Questions for CUET Business Studies Chapter-12-Consumer Protection 

This page is prepared by HT experts and consists of MCQ-Based Questions for CUET Business Studies chapter-12-Consumer Protection with a detailed explanation of all the questions asked from 12-Consumer Protection. To find the solution to the MCQ questions click on the answer tab. Check out chapter-wise CUET Business studies MCQ questions. 

Practice Questions for CUET Business Studies chapter-12-Consumer Protection SET-1

Business Studies - MCQ on Consumer Protection

Class XII

Q.1. Consumer protection means protecting the consumers

a. from financial unavailability.

b. from misleading advertisements.

c. by providing them money to buy products.

d. from bankruptcy.

Answer:

(b)

Explanation: Consumer protection means informing and educating the customers so that greedy businessmen do not cheat them.

Q.2. One of the responsibilities of a consumer is to

a. ignore the information mentioned on the product.

b. ask for the information relating to the product.

c. pay before selecting a product.

d. pay more than the Maximum Retail Price (MRP).

Answer:

(b)

Explanation: As a consumer, every person has the responsibility to ask for full information regarding the product he is buying. It is the duty of a consumer to complain to the appropriate authority, if he comes to know that the producers are making false claims about their products.

Q.3. Consumer protection is important in India because of

a. awareness of consumers.

b. awareness of producers.

c. unorganised consumers.

d. awareness of government.

Answer:

(c)

Explanation: Consumers in India are dispersed and unorganised. On the other hand, producers and traders are organised and their organisations safeguard their rights as producers and traders. This necessitates the formulation of consumer associations, which safeguard and promote consumer rights and education.

Q.4. Right to safety means that the consumer has the

a. right to complain.

b. right to education.

c. right to be protected against harmful goods.

d. right to get the information about quality and quantity of goods.

Answer:

(c)

Explanation: Right to safety means a producer should not sell those goods to consumer that are harmful to their health or property. For example, selling food of inferior quality to customers in a hotel is a violation of consumer rights.

Q.5. Various rights of consumers are mentioned in

a. Consumer Safety Act.

b. Consumer Awareness Act.

c. Consumer Protection Act.

d. Consumer Knowledge Act.

Answer:

(c)

Explanation: Consumer Protection Act 1986 mentions different rights of the consumers so that they can use them and not get cheated by fraudulent businessmen.

Q.6. A complaint under Consumer Protection Act should be filed within

a. two months.

b. five months.

c. two years.

d. five years.

Answer:

(c)

Explanation: Consumer can file a complaint within two years of the purchase of goods and services. Any voluntary consumer organisation, which is registered by the government, can also file a complaint on behalf of the consumer. However, in exceptional cases, this two years period can be extended, if the person complaining gives reliable and sufficient reasons as to why he could not file a complaint within two years.

Q.7. Consumer protection means protecting the consumers

a. from financial unavailability.

b. from adulteration.

c. by providing them money to buy products.

d. from bankruptcy.

Answer:

(b)

Explanation: Consumer protection means making consumers aware of the things, which they must keep in mind while purchasing a product. It also involves punishing a producer who is selling goods of inferior quality.

Q.8 According to Consumer Protection Act 1986, the number of consumer rights is

a. three.

b. five.

c. six.

d. eight.

Answer:

(c)

Explanation: Consumer protection act states six consumer rights, viz. right to safety, right to information, right to choice, right to be heard, right to seek redressal and right to consumer education.

Q.9. One of the ways of consumer protection is that

a. consumers should avoid buying any product.

b. consumer association and NGOs should be formed.

c. producers should distribute goods free of cost.

d. producers should overcharge.

Answer:

(b)

Explanation: Consumers can form their associations, which actively help the cheated consumers. Non-government organisations also educate consumers and give them assistance in case producers cheat them.

Q.10. Consumer Guidance Society of India (Mumbai) and Common Cause (New Delhi) are examples of

a. consumer redressal commissions.

b. consumer redressal forums.

c. consumer organisations.

d. producer organisations.

Answer:

(c)

Explanation: These are consumer organisations who conduct various programmes to educate the consumers and guide them if they are cheated by fraudulent producers.

Q.11. BIS stands for

a. Best Indian Standards.

b. Basic Information for Sales.

c. Bureau of India Standards.

d. Bureau of Information Standards.

Answer:

(c)

Explanation: BIS stands for Bureau of Indian Standards. Bureau of Indian Standards Act 1986 has strengthened the measures for standardisation and quality control of manufactured goods in India. The Government of India created BIS, a statutory organisation. BIS has adequate autonomy as well as flexibility in its operations to achieve harmonious development of the activities of standardisation, certification making and connected matters.

Q.12. An important document for filing a complaint is

a. cash memo.

b. purchase invoice.

c. bank statement.

d. loan statement.

Answer:

(a)

Explanation: Cash memo is a must for filing a complaint in consumer forum.

Q.13. The members of national commission are appointed by

a. state government.

b. central government.

c. the Reserve Bank of India.

d. district magistrate.

Answer:

(b)

Explanation: Central government appoints the members of national commission.

Q.14. The number of consumer rights, which United Nations has recommended for providing a framework to strengthen the national consumer protection policies around the world, is

a. four.

b. six.

c. eight.

d. ten.

Answer:

(c)

Explanation: United Nations has recommended eight consumer rights. In addition to the six consumer rights mentioned in Consumer Protection Act 1986 of India, the additional two rights are — right to satisfaction of basic needs and right to healthy environment.

Q.15. Right to be heard means that the consumer has the right to

a. complain.

b. education.

c. be protected against harmful goods.

d. get the information about quality and quantity of goods.

Answer:

(a)

Explanation: According to this right, consumers should be provided a platform to register their grievances or complaints about the product used.

Q.16. Rohit purchased a television from an electronic company for Rs 20,000. He found that the picture tube of the television was defective and could not be repaired despite many services of electronic engineer of the company. The appropriate authority where Rohit should complain under Consumer Protection Act is

a. district forum.

b. state commission.

c. national commission.

d. supreme court.

Answer:

(a)

Explanation: Rohit should file his complaint with district forum as the value of the goods is not more than Rs 20 lakh.

Q.17. Consumer protection means protecting the consumers

a. from financial unavailability.

b. from under-weighing of the product.

c. by providing them money to buy products.

d. from bankruptcy.

Answer:

(b)

Explanation: Consumer protection recommends the consumers to check the quantity of the product they buy. Nowadays some producers reduce the quantity of the product instead of increasing its price. In this situation, consumer thinks that the price has not increased but paying same price for less quantity actually means increase in price. Consumer should be aware of these pricing policies of the producers. Thus, it is made mandatory for producer also to inform the consumer that the product is not of standard quantity.

Q.18. State commission is a

a. national level consumer protection authority.

b. state level consumer protection authority.

c. village level consumer protection authority.

d. district level consumer protection authority.

Answer:

(b)

Explanation: State commission is a state level consumer protection authority. State commissions have jurisdiction in the respective states.

Q.19. An aggrieved party can file a case in Supreme Court

a. directly.

b. if it is not satisfied by the decision of district forum.

c. if it is not satisfied by the decision of state commission.

d. if it is not satisfied by the decision of national commission.

Answer:

(d)

Explanation: Aggrieved party can appeal in Supreme Court only if it is not satisfied by the order of a national commission.

Q.20. The time period for completing investigation by consumer forum on the complaints received is

a. twenty days.

b. one month.

c. three months.

d. six months.

Answer:

(b)

Explanation: Consumer forum must complete its investigation within three months of receiving a complaint. If the complaint requires analysis and testing of goods, this time is extended to five months.

Q.21. Mr Rajat wants to file a case in a consumer forum and demands a compensation of Rs one crore for the inconvenience he had to suffer due to deficiency in the service provided by the producer. The forum where Rajat should file a complaint is

a. district forum.

b. state commission.

c. national commission.

d. supreme court.

Answer:

(b)

Explanation: An appeal is filed in state commission where the value of goods and service and compensation is more than Rs 20 lakh and is upto Rs one crore.

Q.22. National commission for consumer grievance redressal has powers equal to a

a. civil servant.

b. civil court.

c. gazetted officer.

d. union minister.

Answer:

(b)

Explanation: National commission has powers equal to a civil court.

Q.23. Right to healthy environment recommended by United Nations means that the consumer has the right to

a. complain.

b. know the rights and remedies available.

c. be protected against environmental pollution.

d. get the information about quality and quantity of goods.

Answer:

(c)

Explanation: Every consumer has a right to be protected against environmental pollution. Producers should avoid using such means of production, which harm the environment. They should use such methods of production, which help in sustaining natural resources for future generations. Organisations should encourage the concept of sustainable development.

Q.24. World Consumer Rights Day is celebrated on

a. 15th august.

b. 26th January.

c. 25th June.

d. 15th March.

Answer:

(d)

Explanation: Consumer Rights Day is celebrated on 15th March every year since 1983. Its objective is to promote basic rights of all consumers, ensure that these rights are respected and protected, and to protest the market abuses and social injustices, which undermine these basic rights.

Q.25. The state commission handles those consumer complaints where the value of goods and services and compensation claimed is

a. below Rs 20 lakh.

b. above Rs 20 lakh upto one crore.

c. between Rs one crore and two crore.

d. above two crore.

Answer:

(b)

Explanation: As per the Consumer Protection Act 1986, state commission handles those customer grievances where the value of goods and services and compensation claimed is above Rs 20 lakh up to 1 crore.

Q.26. Consumer protection is important in India because of

a. awareness of consumers.

b. large number of illiterate consumers.

c. awareness of producers.

d. awareness of government.

Answer:

(b)

Explanation: In India, a large number of people are illiterate. They don’t understand their rights and obligations as a consumer. A system is required to protect their rights and educate them about their rights as a consumer.

Q.27. Agmark stands for

a. Agriculture Mark.

b. Again Marking.

c. Against Marking.

d. Agricultural Marketing.

Answer:

(d)

Explanation: Agmark is a symbol of quality assurance for agricultural products.

Q.28. District Forum is a

a. national level consumer protection authority.

b. state level consumer protection authority.

c. village level consumer protection authority.

d. district level consumer protection authority.

Answer:

(d)

Explanation: District forum is set for every district to hear and settle the complaints from consumers.

Q.29. One of the responsibilities of a consumer is to

a. buy colourful goods.

b. purchase costly goods.

c. ask for cash memo.

d. compensate the producer for poor quality.

Answer:

(c)

Explanation: To apply and use their rights, consumers should first be aware of what their rights are. It then becomes their obligation to use these rights wherever possible, so that fraudulent producers are discouraged from using exploitative tactics towards the consumers at large. If consumers won’t enforce their rights, the producers may feel free or encouraged to befool the people at large for the sake of making money.

Q.30. District Forum consists of

a. one President and one member.

b. two Presidents and one member.

c. two President and two members.

d. one President and two members.

Answer:

(d)

Explanation: Each District Forum consists one President and two members who are appointed by the state government.

Q.31. Consumer protection is important in India because of

a. awareness of consumers.

b. ignorance of consumers.

c. awareness of producers.

d. awareness of government.

Answer:

(b)

Explanation: Consumers in India are ignorant about their rights as a consumer. They sometimes ignore the cheating of producers considering it as a one-off incident. It necessitates the importance to guide and educate them about the correct procedures of enforcing their rights.

Q.32. National commission consists of

a. one president and two members.

b. two presidents and four members.

c. one president and four members.

d. one president and six members.

Answer:

(c)

Explanation: National commission for consumer grievance redressal consists of one president and four members.

Q.33. District consumer protection council is called

a. district centre.

b. district forum.

c. district court.

d. district office.

Answer:

(b)

Explanation: Consumer protection council at district level is called district forum.

Q.34. Right to consumer education means that the consumer has the right to

a. complain.

b. know the rights and remedies available.

c. be protected against harmful goods.

d. get the information about quality and quantity of goods.

Answer:

(b)

Explanation: Consumer education means letting consumers know their rights and the actions they should take if they are victimised by the producers. In the absence of consumer education, consumers may get cheated and may not know the right way of complaining and seeking the redressal of their problems.

Q.35. One of the responsibilities of a consumer is to

a. ignore the price of goods.

b. ignore the quality of goods.

c. file a complaint against exploitation.

d. ignore the cheating by producers.

Answer:

(c)

Explanation: It is the responsibility of a consumer to file a complaint against the producer who cheats people by selling inferior quality and quantity goods. If a consumer ignores the wrong practices by a producer, it means he is indirectly promoting and allowing that producer to cheat more people in future.

Q.36. The apex body of consumer organisations in India is

a. consumer coordination council.

b. consumer management council.

c. consumer administration council.

d. consumer redressal council.

Answer:

(a)

Explanation: Consumer coordination council is the apex body that coordinates the activities of different consumer organisations in India.

Q.37. State commission consists of

a. one president and one member.

b. two presidents and one member.

c. two presidents and two members.

d. one president and two members.

Answer:

(d)

Explanation: State commission consists of one president and two members. The president of state commission should be a present or a past judge of a high court.

Q.38. Consumer Protection Act was formed in the year

a. 1966.

b. 1976.

c. 1986.

d. 1996.

Answer:

(c)

Explanation: Consumer Protection Act was formed in the year 1986. Its object was to make consumers aware of their rights and responsibilities as a buyer so that they can enforce these rights as and when necessary to protect them from being cheated by fraudulent producers.

Q.39. The members of a District Forum are appointed by

a. state government.

b. central government.

c. the Reserve Bank of India.

d. consumer association.

Answer:

(a)

Explanation: Respective state governments appoint the members of a district forum.

Q.40. The President of National Commission should be a

a. working or a retired judge of district court.

b. working or a retired judge of supreme court.

c. working or a retired judge of state court.

d. working or a retired member of parliament.

Answer:

(b)

Explanation: A working or a retired judge can be the president of National Commission for Consumer Grievance Redressal.

Q.41. The national commission handles those consumer complaints in which the value of goods and services and compensation claimed is

a. equal or less than Rs 20 lakh.

b. above Rs 20 lakh and up to 50 lakh.

c. above Rs 50 lakh and up to one crore.

d. above one crore.

Answer:

(d)

Explanation: National commission handles complaints where the value of goods and services and the compensation claimed is more than Rs 1 crore.

Q.42. Consumer Protection Act 1986 was formed to promote and protect the rights of

a. producers.

b. government.

c. consumers.

d. traders.

Answer:

(c)

Explanation: Consumer Protection Act 1986 was formed to protect and promote the rights of consumers.

Q.43. Rahul bought a car for Rs 19 lakh. Its engine was defective and could not be fixed after several repairing done by the company’s official. The consumer redressal commission where Rahul should file a complaint is

a. district forum.

b. state commission.

c. national commission.

d. supreme court.

Answer:

(a)

Explanation: Rahul should apply in district forum as the value of the product is up to Rs 20 lakh. Had the price of car been Rs 20 lakh and one rupee, then Rahul could have filed the complaint in state commission.

Q.44. An appeal against the orders of a state commission can be filed with national commission within

a. 10 days of such order.

b. 20 days of such order.

c. 30 days of such order.

d. 60 days of such order.

Answer:

(c)

Explanation: If a party is not satisfied with the order of the state commission, it can appeal in the national commission within 30 days of such order.

Q.45. Right to satisfaction of basic needs as a right of consumers recommended by United Nations means that the consumer has the right to

a. complain.

b. know the rights and remedies available.

c. be protected against environmental pollution.

d. access basic need goods.

Answer:

(d)

Explanation: This right states that every consumer should have access to basic essential goods and services, adequate food, clothing, shelter, healthcare, education and sanitation.

Q.46. The President and members of state commission are appointed by

a. state government.

b. central government.

c. district magistrate.

d. the Reserve Bank of India.

Answer:

(a)

Explanation: The President of state commission is appointed by state government.

Q.47. Consumer protection is important in India because of

a. awareness of consumers.

b. low quality goods in market.

c. awareness of producers.

d. awareness of government.

Answer:

(b)

Explanation: Nowadays the supply of duplicate or low quality goods has increased. It becomes very difficult for an ordinary consumer to differentiate between a genuine product and its imitation. It thus becomes important to protect consumers from such exploitation.

Q.48. An appeal against the order of district forum can be filed with state commission within

a. 10 days.

b. 30 days.

c. 45 days.

d. 60 days.

Answer:

(b)

Explanation: An appeal against the order of district forum can be filed with the state commission within 30 days of the order of district forum.

Q.49. NGO stands for

a. Non-government Office.

b. National Government Organisation.

c. Non-government Organisation.

d. National Goods Office.

Answer:

(c)

Explanation: Non-government organisations play an important role in consumer protection and awareness. They conduct programmes to make consumers more clued-up and tell them the correct procedures of buying a product. They also inform the consumers about various options, which they can exercise if producers try to cheat them.

Q.50. One of the ways of consumer protection is that

a. consumers should avoid buying any product.

b. producers should distribute goods free of cost.

c. producers should overcharge.

d. consumer awareness should be enhanced.

Answer:

(d)

Explanation: The most important person who can ensure consumer protection is the consumer himself because self-help is the best help. If the consumers are well aware of their rights and responsibilities as a consumer and take active part in enforcing these rights and obligations, no producer would be able to cheat them. Also, the government will not need to pursue consumer protection and awareness policies so actively.

Practice Questions for CUET Business Studies chapter-12-Consumer Protection SET-2

Q.51. Consumer protection means protecting the consumers

a. from financial unavailability.

b. from being overcharged.

c. by providing them money to buy products.

d. from bankruptcy.

Answer:

(b)

Explanation: The aim of consumer protection is to make consumers aware so that they can judge the quality, quantity and price of a product. It involves informing the consumers that it is illegal on the part of the producer to charge a price from them that is more than the Maximum Retail Price (MRP).

Q.52. The President of a state commission should be a

a. working or a retired Judge of a high court.

b. working or a retired Judge of Supreme court.

c. member of a parliament.

d. working or a retired Judge of district court.

Answer:

(a)

Explanation: A person who is the Judge of high court or has worked as a Judge of high court in the past can be the President of a state commission.

Q.53. Press can promote consumer education by

a. punishing producers.

b. publishing consumer complaints.

c. promoting producers.

d. accepting the advertisements by government.

Answer:

(b)

Explanation: Some newspapers regularly publish important consumer cases and how they get solved or redressed. Such information educates the public in general by making them more aware.

Q.54. Right to be informed means that the consumer has the right to

a. complain.

b. education.

c. protected against harmful goods.

d. get the details about quality and quantity of goods.

Answer:

(d)

Explanation: One of the rights of the consumers is to get all the relevant information about the product such as quantity, quality, price, standards, etc. Labelling part of product mix helps the producer to give this information to the consumers.

Q.55. Consumer protection is important in India because of

a. awareness of consumers.

b. awareness of producers.

c. awareness of government.

d. misleading advertising.

Answer:

(d)

Explanation: Some businessmen give misleading information about the quality, safety and utility of their products. Consumers are misinformed by false advertisements and exaggerations of a product’s utilities. These things necessitate the importance of consumer protection.

Q.56. District Forum hears the complaints of customers, where the value of goods and services and the compensation claimed is

a. up to rupees one thousand.

b. up to rupees one lakh.

c. up to rupees ten lakh.

d. up to rupees twenty lakh.

Answer:

(d)

Explanation: District forum receives complaints in which the value of goods and the compensation is up to 20 lakh. Please note that if a product is for Rs twenty lakh, its complaint would be applied in district forum and if the product is worth Rs twenty lakh and one rupee, its complaint would be filed with state commission.

Q.57. An appeal against the order of District Forum can be filed with

a. another district forum.

b. state commission.

c. state forum.

d. national commission.

Answer:

(b)

Explanation: An appeal against the order of District Forum can be filed with state commission within 30 days of the order of District Forum.

Q.58. One of the responsibilities of a consumer is to

a. ignore the quality of goods.

b. ignore the quantity of goods.

c. become quality conscious.

d. pay more than the MRP.

Answer:

(c)

Explanation: Consumers should insist on buying good quality goods. Marks such as Agmark, FPO and ISI are symbols of good quality certifications.

Q.59. The President of a district forum should be a

a. working or a retired Judge of a high court.

b. working or a retired Judge of Supreme court.

c. a member of parliament.

d. working or a retired Judge of district court.

Answer:

(d)

Explanation: A working or a retired judge of a district court can be the President or chairman of district forum.

Q.60. The appeal against the order of national commission can be filed with Supreme Court within

a. 10 days of such order.

b. 20 days of such order.

c. 30 days of such order.

d. 45 days of such order.

Answer:

(c)

Explanation: An appeal against the order of national commission can be filed with Supreme Court within 30 days of such order.

Q.61. Consumer protection is important in India because of

a. malpractices of producers.

b. awareness of consumers.

c. awareness of producers.

d. awareness of government.

Answer:

(a)

Explanation: Some fraudulent and unethical produces resort to unfair trade practices to exploit the consumers and earn extra money. Consumers often get inferior and below standard goods and services. It is important to take certain measures to stop these malpractices.

Q.62. One of the ways of consumer protection is that

a. producers should become self regulatory.

b. consumers should avoid buying any product.

c. producers should distribute goods free of cost.

d. producers should overcharge.

Answer:

(a)

Explanation: Producers should ensure consumer protection by way of self-discipline. They should use consumer oriented marketing. If producers become self-regulatory, then the burden on the government will reduce.

Q.63. One of the objectives of forming Consumer Protection Act 1986 is to

a. delay the redressal of consumer disputes.

b. assist producers in settling disputes with consumers.

c. assist government in collecting tax from producers.

d. provide speedy redressal of consumer grievances.

Answer:

(d)

Explanation: Consumer Protection Act 1986 was formed to help consumers in settling their grievances and complaints regarding the goods and services purchased in timely and efficient manner.

Q.64. An appeal against the order of state commission can be filed with

a. district forum.

b. district commission.

c. another state commission.

d. national commission.

Answer:

(d)

Explanation: An appeal can be filed in the national commission against the orders of a state commission within 30 days of such order.

Q.65. Right to seek redressal means that the consumer has the right to

a. complain.

b. education.

c. be protected against harmful goods.

d. get complaints settled.

Answer:

(d)

Explanation: According to this right, producer should compensate the consumers against unfair trade practices such as selling low quality goods. The defective product must be repaired or replaced. If the product cannot be repaired or replaced, the consumer should be repaid his money.

Q.66. If the person held guilty by district forum appeals against it in the state commission, he has to submit with state commission an amount of

a. Rs 10,000.

b. Rs 25,000 or 50% of fine whichever is less.

c. Rs 50,000 or 50% of fine whichever is less.

d. Rs 25,000 or 50% of fine whichever is higher.

Answer:

(b)

Explanation: The person held guilty by district forum has to submit Rs 25,000 or 50% of fine whichever is less, in case he appeals with the state commission.

Q.67. If the consumer forum receives a complaint, which requires testing and analysis of goods, the time period within which consumer forum should complete its investigations is

a. one month.

b. three months.

c. five months.

d. six months.

Answer:

(c)

Explanation: If a complaint requires analysis of goods in a laboratory, then the consumer forum should complete its investigations in five months. If goods are not to be investigated, such investigation should be completed in three months.

Q.68. Consumer protection is important because it

a. reduces the price of goods.

b. inflates the price of goods.

c. makes consumer ignorant.

d. helps an organisation to sustain in the long run.

Answer:

(d)

Explanation: Producers improve their goodwill and image in the market by following favourable trade practices and making consumers aware of their rights. Producers cannot cheat consumers for a long time.

Q.69. Consumer Education and Research Centre (CERC) Ahmedabad and Consumer Utility and Trust Society (CUTS) Jaipur are examples of

a. consumer redressal commissions.

b. consumer redressal forums.

c. consumer organisations.

d. producer organisations.

Answer:

(c)

Explanation: These are consumer organisations who conduct various programmes to educate the consumers and guide them, in case, they are cheated by fraudulent producers.

Q.70. ISO stands for

a. Indian Service Organisation.

b. Indian Standard Organisation.

c. International Organisation for Standardisation.

d. International Organisation for Safety.

Answer:

(c)

Explanation: ISO stands for International Organisation for Standardisation. ISO is the world’s largest developer and publisher of International standards. It is a network of national standards institutes of 159 countries, one member per country, with the Central Secretariat in Geneva, Switzerland, that coordinates the system. ISO has developed over 17500 International standards on a variety of subjects and some 1100 new ISO standards are published every year. ISO is a non-government organisation. BIS of India is a member body of ISO.

Q.71. If the person held guilty by state commission appeals against it in the national commission, then he has to submit with national commission an amount of

a. Rs 20,000.

b. Rs 35,000 or 50% of fine whichever is less.

c. Rs 70,000 or 50% of fine whichever is less.

d. Rs 35,000 or 50% of fine whichever is higher.

Answer:

(b)

Explanation: The person held guilty by state commission has to submit Rs 35,000 or 50% of fine (imposed by state commission) whichever is less, if he appeals with the national commission.

Q.72. The appeal against the order of national commission can be filed with

a. another national commission.

b. state commission.

c. district forum.

d. supreme court.

Answer:

(d)

Explanation: An appeal against the order of national commission can be filed with supreme court within 30 days of such order.

Q.73. ISI mark stands for

a. Industrial Safety Institute.

b. Industrial Service Institute.

c. Indian Standard Institute.

d. Indian Security Institute.

Answer:

(c)

Explanation: ISI means Indian Standard Institute. ISI mark on a product is an assurance of good quality.

Q.74. One of the responsibilities of a consumer is to

a. be quality conscious.

b. ignore the price of goods.

c. ignore the quality of goods.

d. ignore the cheating by producers.

Answer:

(a)

Explanation: While buying goods and services, a consumer must look for quality ensuring marks such as ISI, ISO, Agmark, etc.

Q.75. Right to choose means that the consumer has the right to

a. complain.

b. education.

c. access a variety of goods.

d. get the information about quality and quantity of goods.

Answer:

(c)

Explanation: A consumer should have access to different varieties of goods. According to this rule, the producers should not use so many advertisements so as to confuse the consumer and his choice-making ability.

Business Studies - MCQ on Consumer Protection

Practice Questions for CUET Business Studies chapter-12-Consumer Protection SET-3

Q.1 Why is consumer protection important for consumers?

a. Because consumers are ignorant.

b. Consumers are unorganised and exploited by the sellers.

c. Both 1 and 2

d. None of the above.

Answer:

(c)

Q.2 What is ISI?

a. It is the quality certification mark used in case of food products.

b. It is the price certification mark used for all commodities.

c. It guarantees that child labour has not been employed in production.

d. None of the above.

Answer:

(a)

Q.3 Under the Consumer Protection Act, a complaint can be filed by a consumer for __________.

a. Defective goods.

b. Deficient service.

c. Both 1 and 2

d. None of the above.

Answer:

(c)

Q.4 Which of the following act is related to Consumer Protection?

a. 1986

b. 1996

c. 1926

d. All of the above.

Answer:

(a)

Q.5 The Consumer Protection Act seeks to protect and promote__________.

a. Interests of sellers

b. Interests of consumers

c. Interests of business

d. Interests of the government

Answer:

(b)

Q.6 The Contract Act, 1982 lays down the conditions in which the promises made by parties to a contract will be ___________.

a. Not be binding on each other.

b. Binding on each other.

c. Unapplicable

d. Not enforceable.

Answer:

(b)

Q.7 Which of the following act provides for action against anti-social activities of black-marketers?

a.The Consumer Protection Act, 1986

b. The Sale of Goods Act, 1930

c. The Essential Commodities Act, 1955

d. The Trade Marks Act, 1999

Answer:

(c)

Q.8 Which act has replaced the Monopolies and Restrictive Trade Practices Act, 1969?

a. The Essential Commodities Act, 1955

b. The Trade Marks Act, 1999

c. The Sale of Goods Act, 1930

d. The Competition Act, 2002

Answer:

(d)

Q.9 The Competition Act, 2002 provides protection to the consumers in which of the following case?

a. When practices adopted by business firms hamper competition in the market.

b. When quality of goods is not upto the mark.

c. When goods are not available in the market.

d. None of the above.

Answer:

(a)

Q.10 The Consumer Protection Act provides how many rights to the consumers?

a. Two

b. Three

c. Five

d. Six

Answer:

(d)

Q.11 From what does the ‘Right to Safety’ protect the consumer?

a. Against goods and services which are hazardous to life and health.

b. Against faulty packing.

c. Against monopolistic practices by companies.

d. None of the above.

Answer:

(a)

Q.12 Consumer protection can be achieved only when _________

a. Consumers take their responsibilities lightly.

b. Consumers understand their responsibilities.

c. Both of the above.

d. None of the above.

Answer:

(b)

Q.13 Which of the following is considered as a proof of purchase made?

a. Package of the good.

b. The good itself.

c. Cash Memo

d. None of the above.

Answer:

(c)

Q.14 What does the labels on goods provide information about?

a. Prices.

b. Net Weight.

c. Manufacturing and expiry dates.

d. All of the above.

Answer:

(d)

Q.15 Which mark should a consumer look for on electrical and food products?

a. ISI mark on electrical goods and FPO mark on food products.

b. FPO mark on electrical goods and ISI mark on food products.

c. Either of the above.

d. None of the above.

Answer:

(a)

Q.16 Which of the following constitute unfair trade practices?

a. Defective and unsafe products, adulteration.

b. False and misleading advertising.

c. Hoarding and black-marketing

d. All of the above.

Answer:

(d)

Q.17 A business engaging in any form of exploitative trade practices would __________.

a. Invite government intervention or action.

b. Tarnish the image of their company.

c. Both 1 and 2

d. None of the above.

Answer:

(b)

Q.18 Which of the following act has replaced The Trade and Merchandise Marks Act, 1958:

a. The Essential Commodities Act, 1955

b. The Trade Marks Act, 1999

c. The Sale of Goods Act, 1930

d. The Competition Act, 2002

Answer:

(b)

Q.19 Which of the following are referred to as the ‘District Forum’, ‘State Commission’, and the ‘National Commission’?

a. District Consumer Dispute Redressal Forum.

b. State Consumer Disputes Redressal Commission.

c. National Consumer Disputes Redressal Commission.

d. All of the above.

Answer:

(d)

Expln. All of the above are briefly referred to as the ‘District Forum’, ‘State Commission’, and the ‘National Commission’, respectively.

Q.20 A complaint can be made to District Forum when the value of goods or services, along with compensation claimed does not exceed __________.

a. Rs. 20 lakhs

b. Rs. 10 lakhs

c. Rs. 1 crore

d. Rs. 5 lakhs

Answer:

(a)

Q.21 A complaint can be made to State Commission when the value of goods or services, along with compensation claimed exceeds __________.

a. Rs. 10 crore

b. Rs. 50 lakhs

c. Exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore

d. Rs. 10 lakhs

Answer:

(c)

Q.22 In case the aggrieved party is not satisfied with the order of the State Commission, he can appeal before the ____________.

a. District Forum within 30 days of passing of the order.

b. Supreme Court of India within 30 days of passing of the order.

c. Both 1 and 2.

d. National Commission within 30 days of passing of the order.

Answer:

(d)

Q.23 The National Commission consists of __________.

a. A President and at least four other members, one of whom should be a woman.

b. A President and at least ten other members, one of whom should be a Minister.

c. Judge of the Supreme Court only.

d. A President only.

Answer:

(a)

Q.24 For the protection of consumers’ interests, which of the following have been set up in India?

a. Police Stations.

b. Consumer Organisations.

c. Non-Government Organisations.

d. Option 2 and 3.

Answer:

(c)

Q.25 Which of the following are the aims of the ‘Essential Commodities Act, 1955’?

a. Controlling production, supply and distribution of essential commodities.

b. Checking inflationary trends in prices of essential commodities.

c. Ensuring equal distribution of essential commodities.

d. All of the above.

Answer:

(d)

Q.26 What are the functions of the ‘Bureau of Indian Standards Act, 1986’?

a. Formulation of quality standards for goods.

b. Certification of goods through BIS certification scheme.

c. Both 1 and 2.

d. None of the above.

Answer:

(c)

Q.27 Which of the following are the aims of the ‘Consumer Protection Act, 1986?

a. Protecting and promoting the interests of consumers.

b. Protecting the national heritage.

c. Getting consumers’ grievances redressed.

d. Option 1 and 3.

Answer:

(d)

Q.28 What does the ‘Right to Safety’ provide the consumers?

a. Protection against goods and services which are hazardous to life and health.

b. Protection against natural calamities.

c. Protection against rainfall damage.

d. None of the above.

Answer:

(a)

Q.29 In dealing with their customers, socially responsible firms follow _________.

a. Inflationary pricing schemes.

b. Ethical standards and practices.

c. Monopolistic policies.

d. None of the above.

Answer:

(b)

Q.30 What does FICCI stand for?

a. Footwear Import Corporation Companies of India.

b. Federation of Indian Chambers of Commerce of India.

c. Food Industries for Consumer Companies of India.

d. None of the above.

Answer:

(b)