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Subject Enrichment Material Class XII BUSINESS STUDIES

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Published by KV Khichripur, 2020-02-20 00:18:44

Subject Enrichment Material Class XII BUSINESS STUDIES

Subject Enrichment Material Class XII BUSINESS STUDIES

liquidity. asTheDiscount
FinanceHouseof
Indiaworksasa
compulsory
marketmaker

.

37 1x5=5
1. TheobjectiveofsettingupSEBIareoutlinedbelow:

•Topreventtradingmalpracticeinthesecuritiesmarkets.

•Toprotecttherightsandinterestofinvestors,andtoguide
andeducatethem.

•Toregulateanddevelopacodeofconductandfair
practicesbyintermediarieslikebrokers,merchantbankers,
etc.withaviewtomakingthem competitiveand
professional.

•Toregulatestockexchangesandthesecuritiesmarketto
promotetheirorderlyfunctioning.

ProtectivefunctionisperformedbySEBI:“TheSEBIhas
imposedapenaltyofRs.7,269.5croreonPearlsAgrotech
CorporationLimited.”

38 1+3+2=
1.SecuritiesAndExchangeBoardofIndia(SEBI)regulatesthe 6
workingofstockexchangesinIndia.
2.Threefunctionsperformedbystockexchangesareas
follows:

 Ensuresliquidityandmarketabilityofexisting
securitiesbyaprovidingareadyandcontinuous
marketforthesaleandpurchaseofsecurities.

 Helpsindeterminingthepricesofthesecurities
throughtheforcesofdemandandsupply.

 Itprovidesalegalframeworkforfairandsafe
dealings.

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Twoadvantagesofscreen-basedtradingareasfollows:
 Astheinvestorsgetaccesstothestockmarket

duringrealtime,thereiscompletetransparencyinthe
dealings.
 Itprovidesacommonplatform forexchangeof
securitiestherebyincreasingtheefficienttransactions
bysavingtime,effortandmoney.

39 2+4=6
1. Dematerialisationreferstotheprocessofholding
securitiesinelectronicform.

2. Thetwoproblemsofholdingsharesinphysical
form areasfollows:

(1)Whenthesharescertificatesareheldinphysicalform,
thereisdangeroflossortheft.

(2)Thereisriskofforgery,asthebuyermaybedelivered
fakecertificates.

(3)Transferdelay

(4)Paperworkassociatedwiththesharecertificatesor
debenturesheldinphysicalforms.

40 2+2+2=
1.Primarymarketisthesegmentofcapitalmarketbeing
6
approachedbythecompany.Itisalsoknownasthenew

issuemarketasthesecuritiesareissuedforthefirsttime

bythecompaniesthroughthismarket.

2.Thetwomethodsoffloatationusedbythecompanyto
raisetherequiredcapitalare–Issuethroughprospectus
andOfferforsale.

3.Incaseofissuethroughprospectus,thecompany
approachesthemembersofthegeneralpublicdirectlyby
issuingaprospectuswhereasincaseofOfferforsale,the
companyapproachesmembersofthegeneralpublic
indirectlythroughintermediarieslikeissuinghouses,stock
brokersetc.

202/190

MarketingManagement

Marks(unit11&12carries15marks)
Pointstoberememberforsolvingthecasestudies

 Alwaysreadthequestionfirstwhatthequestionwant
 Importantlineandpointsshouldbeunderlinedatthetimeofreadingthecase
 Inthischapteryoujustremember–marketingmix,elementsofpromotion

mix,product,price,placeandpromotion

S.N Questions Mark

os

1 Devwantedtopurchaseafuelefficientcarhavingthelateststandardsregarding 1
minimizationofpollution.Hesawanadvertisementofferingsuchacarandvisited

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theshowroom ofthecompanywhereinthecarwasdisplayed.Inhisdiscussion,
theMarketingmanagertoldhim thatthecompanyisprovidingcreditfacilities,
maintenanceservicesand manyothereffectiveserviceswhicharehelping in
bringingrepeatsalesanddevelopingbrandloyalty.

IdentifythemarketingfunctionwhichtheMarketingmanagerwasdiscussingwith
Kumar.

2 ‘TVSLtd.’enteredintothemarketwithcoloredtelevisionandhavenowintroduced 1
productslikeaudiosystems,air-conditionerswashingmachines,etc.Thecompany
isnotonlyofferingtheproductsbutalsohandlingcomplaintsandofferingafter-
salesservices.
Theelementofmarketing-mixdiscussedhere.

a)Product b)Price
c)Physicaldistribution d)Promotion

3 ‘ChamoliMedicareEquipmentLtd.’manufacturesequipmentforsurgeonshavinga 1
uniquelasertechnique.Theequipmentcanbeusedbythesurgeonsonlyafter
propertraining.Eventheirmaintenancerequiresguidanceofspecializedengineers.
Becauseofthis,theequipmentisusedinalimitednumberofhospitals.The
companywantstoincreasethesaleoftheequipment.

Suggestthepromotiontooltobeusedbythecompanygivingreasoninsupportof
youranswer.

4 Namethefunctionofmarketingwhichisconcernedwithcostandlocationof 1
targetmarket.

a)Physicaldistribution b)pricing
c)Transportation d)storageandwarehousing

5 WhichofthefollowingisaShoppingProduct? 1

(a)T.V.Set (b)RawMaterial

(c)Sugar (d)Milk

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6 OneofthefollowingisanelementofPromotionMix: 1

(a)Product (b)Price

(c)Personalselling (d)Plantlocation

7 Marketingistheprocesswhichaimsat_____________

a)Production b)selling
c)customersatisfaction d)profitmaking

8 Anythingthatcanbeofferedformarketforattention,useandconsumptionthat 1
maysatisfyneedandwantsisa/an

a)Idea b)product
c)demand d)service

9 Ifthesalesforecastswillbehavinghigherdegreeofaccuracythenthelevelof 1
inventorieswillbe___________

10 “Howareyoutellingthetargetcustomersaboutyourproduct”thisrelatestowhich 1
conceptofmarketingmix

a)product b)price
c)place d)promotion

11 StarewhetherthefollowingstatementisTrue/False 1

Thespokenpartofbrandiscalledbrandname.

12 Marketingcanbebestunderstoodas: 1

I.Preproductionactivity
II.Postproductionactivity
III.Pre&Postproductionactivity
IV.Sellingactivity

13 __________________isalsocalledassilentsalesman. 1

14 Underdirectchannels,firm have__________________intermediaries. 1

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15 Thecommunicationtoolwhichisusedtoimprovetheimageorgoodwillofthe 1
companyiscalled__________________. 1
1
16 StarewhetherthefollowingstatementisTrue/False
1
“PackagingandLabelingaresameorsynonymsofeachother”

17 Matchthefollowingonthebasisofsuitability

I.ZeroLevel a)Colgatetoothpaste
II.TwoLevel b)MarutiUdyog

IIIThreelevel c)MailorderHouse

18 Matchthefollowingsexampleswiththeitemsthatcanbemarketed

a)VisittoUdaipur i) Event
b)Diwalimela ii) Organisation
c)HindustanUnilever iii) Person
d)LokSabhaelections iv) Place

19 Matchthefollowingcharacteristicsofagoodbrandnamewithitsobjective 1

1.Todifferentiatefrom the a)Adaptable
otherproducts
b)Versatile
2.Tonotgetoutofdate c)Distinctive
3.Toaccommodatenew
d)Stayingpower
product
4.Toadvertisetheproduct

conveniently

20 Matchthefollowingexampleswiththeirrelativeterms

1.BasmatiRice a)Genericname

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b)Brandname

2. c)Logo
3.Book d)Grading
4.Maggi

21 “Ideasforlife”isthetaglineof

a)Samsung b)Google

c)Panasonic d)Sony

22 Matchthefollowingfunctionsoflabelingwiththesuitableexamples

1.Shampoofornormalhair a) Salespromotion
2.Nosmokingoncigarette b)Specifiescontents
c)Grading
packet d)RequiredbylawSpecifies
3.Oilcontainingamla,neem
contents
etc.
4.Buyonegetonefree

23 Japanesetechnique‘JustInTime’isrelatedtowhichcomponentofPhysical
Distribution
(a)OrderProcessing
(b)Transportation
(c)Warehousing
(d)InventoryControl

24 Youareasoapmanufacturerandwanttointroduceanew handwashinthe 3
market.Whichfactorswillyouconsidertofixpriceofyourproduct?Giveanythree
points.

25 JTM Ltd.launched‘Buddyline’,anexercisebookandcomprehensivestationery 3
brandnamecomprisingofballpens,gelpensandgeometryboxesafteridentifying

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thetargetmarketandunderstandingtheneedsandwantsoftheconsumersofthat
market.Alltheirproductswereofgoodqualityandeco-friendlybutexpensive.They
wantedtodistinguishtheirproductsfrom thatoftheircompetitors.Theyspentlot
ofefforts,timeandmoneyincreatingthebrandname,astheyknewthatwithouta
brandname,theycanonlycreateawarenessforthegenericproductsandcan
neverbesureofthesaleoftheirproducts.Theeffortpaidoffandthedemandfor
theproductsstartedgrowing.Thecustomerslikedthebrandandbecamehabitual
toit.Theydidnotmindpayingahigherprice.Overaperiodoftime,itbecamea
statussymboltobuy‘Buddyline’brandbecauseofitsquality.Theconsumersfelt
prideinusingthem.

(i)IdentifythemarketingmanagementphilosophyfollowedbyJTM Ltd.

(ii)Explaintheadvantagesofbrandingtothemarketershighlightedintheabove

26 Acompanylaunchedanewcarrunningonbiodiesel.Thelauncheventwas 4
coveredbythepopularnewspapersandnewschannels.

a)Whichnon-personalform ofcommunicationwasusedbythecompany?
b)Howisitdifferentforothernon–personalmodeofcommunication?
c)Explainanytwodemeritsofthemodeusedbythecompany.
27 Jayisworking astheChiefExecutiveOfficerofasoftdrinkscompany.The 4
companyisdoingitsbusinessincollaborationwithasoftdrinkscompanyof
France.Jay’sfriend,Swami,ateacherofBusinessStudiesinareputedcollegewas
discussingthe‘Marketing’chapterwithhisstudents.Hewantedclarityfrom Jay
aboutthefactorswhichaffectthemarketingdecisions.Jayexplainedthatthere
werealargenumberoffactorsaffectingmarketingdecisionswhichmaybedivided
intotwocategories:(i)controllablefactors,and(ii)non-controllablefactors.Jay
furtherexplainedthatcontrollablefactorsbecamemarketingtoolsthatcanbe
constantlyshapedandreshapedbymarketingmanagers,toachievemarketing
success.

Identifyandexplainthesetofmarketingtoolsthatcanbeconstantlyshapedand
reshapedbymarketingmanagers.

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28 Yourcompanyhassetup a coconuthair-oilfactoryin CoastalKerala,with a 4
productioncapacityof10,000bottlesof100milliliterperday.Thecompanyplans
tomarketthehair-oilwiththebrandname‘KaleKesh’.Designalabelforthehairoil
bottles.

29 Oriflamehavebeenworkingwithskincareandthathasbeentheirareaofexpertise
formorethanover40years.Theycombinetheirproductswiththebestofwhatthe 4
naturehasgottogive,withthesciencebehindit.Pureingredientsandverystrict
manufacturingstandards,littleenergywasteandstrongenvironmentalpoliciesare
themanufacturingmantrasofthecompany.Oriflameisawareofthegrowing
concernsaboutenvironmentsoitisprovidingproductswhicharenottestedon
animals,withoutanyperfume,naturalingredientswhichcannotharm theskinor
causeallergiesuseenvironmentfriendlytechniquesofproduction

Identifyandexplainthemarketingphilosophyfollowedbythecompanyonthe
basisof:

a)mainfocus
b)means
c)ends
30 Flipkartwas setup bytwo software engineers from the Indian Institute of 5
Technology,Delhi,SachinBansalandBinnyBansal,in2007.Itsoldmanyitems
undervariouscategorieslikeapparels,appliances,books,etc.Octoberbeingthe
festiveseasoninIndia,thebige-commercecompanieswerelookingtolurebuyers
throughvariousattractivediscountsandoffers.Flipkarttoodeclaredasaleon
October6,2014.The company spenta huge amountofmoney on its ad
campaigns,installing servers to handle online traffic and deploying stafffor
processingtheordersanddeliveringthegoods.Unfortunatelyforthem,thingsdid
notturnoutquiteastheyexpected.Flipkart'sserverscrashed,itemswentoutof
stock,andthepricesofitemschangedduringthesale.Buyerswereoutragedand
tookto the socialmedia to expresstheirire.Manufacturerstoo accused the
companyofsellinggoodsbelow thesellingprice.Toprotecttheimageoftheir
company,Flipkart’sfounderssentoutapologyletterstothebuyersregrettingthe

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inconveniencetheyhadcausedandassuringthem thattheywoulddeliverbetter
serviceinfuture.Despiteallthehueandcry,Flipkartwitnessedamegasaleof
$100million(Rs6billion)injust10hours.

NameandexplainthemarketingconceptwasusedbyFlipkarttoprotecttheimage
ofthecompany?

31 Reliance Jio Infocomm Limited is the subsidiary company of Reliance 5
industry whichprovides 4Gnetworkservice.JioistheonlyVo-LTE(voiceoverLTE)
providerinthecountry.RelianceJiowaslaunchedwithfreeunlimitedcallingand
datausagefor3monthswhichwasextendedforanotherthreemonthslaterasa
specialoffer.Thiswasoneofthebiggestreasonsforitspopularityamongthe
masses.AfterApril2017customerhastopayfortheircallsanddatausagethere
aremanyveryreasonablepriceplansfrom whichyoucanchoosetouse.Company
usedalltypesofmedium forpromotingitsproductsinmarketi.e.print,electronic
media,sponsorshipofsportsandgameshows,DisplayandHoardings,Social
NetworkingSites,departmentalstoresetc.attheendofthethirdmonthitprovided
anotherattractiveofferforitsexistingcustomerstopayasum ofRs.300onceand
enjoythesameservicefornextthreemonths.Asaresultthecompanycovereda
majormarketsharewithinashortspanoftime.Ithaslauncheditsownmobile
phones,wifiRoutersalso.Inthecontextoftheabovecase:

a)Identifywhichtypesofpromotionaltoolswereusedbythecompany?

b)Identifyandexplaintwofeaturesofpromotionaltoolsidentifiedinpart(a)

32 ‘PushpanjaliLtd.’,ismanufacturingchocolates,biscuits,cakesandother 5

similarproducts.The companyis notgenerating enough profits.Saurabh,the
Marketing managerofthe companygota surveyconducted to find outthe
reasons.Thefindingsofthesurveyrevealedthatinspiteofbetterquality,the
customerswerenotabletodistinguishtheproductsofthecompanyfrom its
competitors.Thoughthecustomerswantedtobuytheproductsof‘Pushpanjali
Ltd.’againandagainbecauseofitsgoodquality,buttheywerenotabletoidentify
itsproductsinthemarket.Becauseofthis,thesalesofthecompanycouldnotpick
upresultingininadequateprofits.Saurabh,theMarketingmanagernow realised

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that‘PushpanjaliLtd.’hadforgottentotakeoneofthemostimportantdecisions
relatedtotheproduct.

Whatdecisionshould‘PushpanjaliLtd.’takesothatitscustomersare

abletoidentifyitsproductsinthemarket?Explainthebenefitsthatmay

resultto‘PushpanjaliLtd.’anditscustomersiftheabovedecisionistaken.

33 PiomaIndustries,knownforitsRasnaSDC(softdrinkconcentrates)brand,decided 5
tomakeitsentryintotheready-to-drinkbeveragesmarket.Itbelievedthatadding
new productstoexistingproductrangewouldimproveitssales.InIndia,theSDC
productwasintroducedbyPiomaIndustriesin1976underthebrandname'Jaffe'.
Itwasrenamed'Rasna'in1979.Inthelate70'sand80's,companyfoundin market
analysisthatpeoplewerehabituatedtodrinkingsquashesandsherbetsathome,
andthesewerequiteexpensive.Thecompanylaunchedlesscostlysubstitutesof
squashesandsherbetsandthattooinvarietyofflavours.PiomaIndustriesfounda
hugeuntappedpotentialin1977whenCocaCola'soperationsintheIndianmarket
werecloseddownduetochangedForeignExchangeRegulationAct(FERA)laws
forMNCsinIndia.ThisservedasanadvantageforRasnainitsbidtopenetratethe
market.In2012 Rasnaalso ventured into ethnicproductslikePickles,Paste,
Chutney,Curries,Gravies,Snacks,and Instanttea mix,etc.Pioma Industries
believedthataddingready-to-drinkbeveragesundertheflagshipbrandRasna
would help itgainnew revenuesaswellasachieveconsistentgrowthinits
business.

Byquotinglinesfrom theaboveparagraphidentifyandexplainthemarketing
functionsperformedbythePiomaIndustries.

34 SincechildhoodNiruandJanakhadbeenwatchingtheirgrandmotherprocuring 5
wheatfrom themarket,washingitwell,dryingitandgettingitconvertedintoatta.
Theyconductedasurveytocollectdatatoidentifywhetherthereisdemandfor
readymadeattaandrealisedthatwiththegrowingnumberofworkingwomen,itis
theneedofthehourtomanufacturehighqualityatta.Theynamedtheirproduct
‘Srijan’andsetup‘SrijanAttaFactory’atJaunpurVillage.Topenetrateinthe
market,theydecidedtokeepthepricelow.Formaintainingsmoothflow oftheir

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productintothemarketandavoidingdelaysindelivery,itwasdecidedtostore
wheatatSKM Serviceswhichhadscientificprocessesandlogisticsfacilitating
quick delivery.Theyalso setup an online complaintportalto take care of
consumergrievances.

Byquotingthelinesfrom theaboveparagraph,statefivemarketingfunctions
undertakenbyNiruandJanakforsuccessfulmarketingof‘Srijan’atta.

35 Asthenumberofpeoplemakingonlinepurchasehasincreasedmanifolds,thereis 6
agrowingconcernaboutthedisposalandmanagementofpackagingwaste.Every
item boughtis delivered with excess packaging and sometimes even non-
biodegradablematerialsareused.

Inthecontextoftheabovecase:

a)Nameandexplainthedifferentlevelsofpackagingusedbythemarketer.
b)Describeanytwofunctionsperformedbytheadditionalpackagingdonein

onlinesoldmaterial.
c)Stateanytwo factorsto bekeptin mind byonline marketer while

designingthepackagingofitsproducts.

ANSWERS

MARKETINGMANAGEMENT

1 CustomerSupportServices 1

2 a)Product 1

3 PersonalSelling. 1

Thisisbecauseitisacomplexproductrequiringtechnicaldetailsand
isbestsoldthroughshorterchannels.

4 Transportation 1

5 a)TVset 1

6 c)Personalselling 1

7 c)customersatisfaction 1

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8 b)product 1

9 Low 1

10 d)promotion 1

11 True 1

12 III.Pre&Postproductionactivity 1

13 packaging 1

14 Zero/no 1

15 PublicRelation 1

16 false 1

17 i.(c),ii.(a) 1

18 a(iv),b(i),c(ii),d(iii) 1

19 1(c),2(d),3(b),4(a) 1

20 1(d),2(c),3(a),4(b) 1

21 c)Panasonic 1

22 1(c),2(d),3(b),4(a) 1

23 (d)InventoryControl 1

24 Factorsaffectingprices(anythree) 1x3=
1.Cost 3
2.Demandandutility
3.Pricingobjectives 1+2
4.Extentofcompetitioninthemarket
5.Governmentregulations
6.Marketingmethodused

25 (i)Societalmarketingphilosophy.

(ii)Advantagesofbrandinghighlightedintheabovecaseare:(Anytwo)

(a)Helpsinproductdifferentiation.

(b)Helpsinadvertisinganddisplayprogrammes.

(c)Differentialpricing.

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26 a)Publicity 1+1
b)Itisnon-paidform ofcommunicationitisfreeofcostand +2=4
comesintheform ofnews
c)i.nocontrolonmessage
ii.newsmaybenegativealso

27 Setofmarketingtoolsthatcanbeconstantlyshapedandreshapedby 4
marketingmanagersare:

(i)Product

Productisamixtureoftangibleandintangibleattributeswhichare
capableofbeingexchangeforavaluewithabilitytosatisfycustomer
needs.

(ii)Price

Pricemaybedefinedastheamountofmoneypaidbythebuyer(or
receivedbytheseller)inconsiderationforthepurchaseofaproductor
aservice.

(iii)PlaceorPhysicalDistribution

PlaceorPhysicalDistributionisconcernedwithmakingthegoodsand
servicesavailableattherightplace,inrightquantityandattheright
timesothattheconsumerscanpurchasethesame.

(iv)Promotion

Promotionreferstotheuseofcommunicationwiththeobjectiveof
informingpotentialcustomersabouttheproductandpersuadingthem
tobuythesamec

28 Thefollowinginformationistobeprovidedonthelabelinanyform (any 1x4=

four): 4

Nameoftheproduct/KaleKesh

Nameofthemanufacturer/FutureOilsLtd.

Addressofthemanufacturer/54,ChandniChowk

Netweightwhenpacked/100ml
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Manufacturingdate/20thJuly2015

Expirydate/20thDecember2016

Maximum retailprice(MRP)/40

Batchnumber/D4567

Directionsforuse/Forbestresults,massagewithLukewarm oil

29 Societalmarketingconcept/philosophy 1+3=
Mainfocus:customers’needandsociety’swellbeing 4
Means:integratedMarketing
Ends:Profitthroughcustomersatisfactionandsocialwelfare 1+3=
4
30 MarketingconceptusedbyFlipkartisPublicRelation 1+2+
2=5
31 a)AdvertisementandSalesPromotion
b)Featuresofadvertising 1+2
1.Paidform +2=5
2.Impersonalcommunication
3.Massreach
4.Identifiedsponsor
FeaturesofSalespromotion
1.encouragethebuyerstomakeimmediatepurchase
2.includeallpromotionaleffortsotherthanadvertising,

personalsellingandpublicity
3.provideshortterm incentivestoboostthesalesofafirm.
4.itisusuallyundertakentosupplementotherpromotional

effortssuchasadvertisingandpersonalselling.
32 Thedecisionwhich‘PushpanajaliLtd.’shouldtakesothatits

customersareabletoidentifyitsproductsinthemarketisBranding.

BenefitsthatmayresulttoPushpanjaliLtd.:(Anytwo)

(i)Enablesmarkingproductdifferentiation.

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(ii)Helpsinadvertisinganddisplayprogrammes.

(iii)Differentialpricing.

(iv)Easeinintroductionofnewproduct.

Benefitsthatmayresulttothecustomers:(Anytwo)

(i)Helpsinproductidentification.

(ii)Ensuresquality.

(iii)Statussymbol

33 FunctionsofmarketingperformedbyPiomaIndustries 1x5=

MarketPlanning:PiomaIndustries,knownforitsRasnaSDC(softdrink 5

concentrates)brand,decidedtomakeitsentryintotheready-to-drink

beveragesmarket

GatheringandAnalysingMarketInformation:Inthelate70'sand80's,
companyfoundinmarketanalysisthatpeoplewerehabituatedto
drinkingsquashesandsherbetsathome,andthesewerequite
expensive

Branding:.InIndia,theSDCproductwasintroducedbyPioma
Industriesin1976underthebrandname'Jaffe'.Itwasrenamed'Rasna'
in1979

Pricing:Thecompanylaunchedlesscostlysubstitutesofsquashesand
sherbetsandthattooinvarietyofflavours.

Product:In2012RasnaalsoventuredintoethnicproductslikePickles,
Paste,Chutney,Curries,Gravies,Snacks,andInstantteamix,etc.

34 MarketingfunctionsundertakenbyNiruandJanak: 5

(i)Gatheringandanalyzingmarketinformationisnecessarytoidentify
theneedsofthecustomersandtakevariousdecisionsforsuccessful
marketingofproductsandservices.

“Theyconductedasurveytocollectdatatoidentifywhetherthereis
demandforreadymadeattaandrealisedthatwiththegrowingnumber
ofworkingwomen,itistheneedofthehourtomanufacturehighquality

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atta.”

(ii)Branding:Itistheprocessofgivinganame/sign/symboltothe
productinordertodistinguishtheproductfrom thatofcompetitors.

“Theynamedtheirproduct‘Srijan”

(iii)Pricingofproductinvolvesfixationofpriceofaproductandtaking
variousrelateddecisionslikepricingstrategies.

“Topenetrateinthemarket,theydecidedtokeepthepricelow.”

(iv)Storageorwarehousingreferstoarrangingforproperstorageof
goodstomaintainsmoothflowofgoodsinthemarketandavoiddelay
indelivery.

“Formaintainingsmoothflow oftheirproductintothemarketand
avoiding delaysin delivery,itwasdecided to storewheatatSKM
Serviceswhichhadscientificprocessesandlogisticsfacilitatingquick
delivery.”

(v)CustomersupportServicesaim atprovidingmaximum satisfaction
tothecustomersfordevelopingbrandloyaltyforaproduct.

“Theyalsosetupanonlinecomplaintportaltotakecareofconsumer
grievances.”

35 a)1.PrimaryPackage:Itreferstotheproduct’simmediatecontainer.In 3+2

somecases,theprimarypackageiskepttilltheconsumerisreadyto +1=

usetheproduct. 6

2.SecondaryPackaging:Itreferstoadditionallayersofprotectionthat

arekepttilltheproductisreadyforuse,e.g.,atubeofshavingcream

usuallycomesinacardboardbox.

3.TransportationPackaging:Itreferstofurtherpackagingcomponents
necessaryfortorage,identificationortransportation.

b)Functionsperformedbytheadditionalpackagingdoneinonlinesold
material.

1.ProductProtection:additionalpackagingprotectstheproductfrom
damagewhichmaybecausedduringtransportation

2.EasyToTransport:additionallayershelptohandletheproducteasily
during itstransportation and carrying itthrough differentmodesof
transportswithoutdamage.

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c)factorstobekeptinmindbyonline marketerwhiledesigningthe
packagingofitsproducts

1.usebiodegradablepackagingmaterial

2.packagingshouldenhanceutilityoftheproduct

CONSUMERPROTECTIONACT1986

Q.no Questions Marks

1 Shubhangi​p​urchased​​a​c​ar​​for​R​s.​1​.1​c​rore​​and​f​ound​i​ts​e​ngine​ 1
d​efective.​​​Despitemany​​complaints,​t​he​d​efect​w​as​​not​r​ectified.​​​She​

218/190

​filed​​a​c​omplaint​i​n​​National​​Commissionbut​​was​​not​​satisfied​​with​i​ts​
o​rder.​​​Suggest​h​er​​the​​appropriate​a​uthority​​where​​she​c​anappeal.

(a)Nationalcommission (b)Districtforum

(C)SupremecourtofIndia (d)Noneoftheabove.

2 S​onu​went​​to​a​​​shopkeeper​t​o​b​uy​s​hampoo.​​​The​s​hopkeeper​f​orced​ 1
​him​​to​b​uy​​aparticular​​brand​o​f​s​hampoo​out​​of​​various​​available​
​brands,​i​rrespective​o​f​​the​w​illingness​​ofSonu..​​W​hich​​right​o​f​S​onu,​​as​
a​​c​onsumer,​​has​b​een​e​xploited?

(a)RighttoInformation. (b)Righttochoose

(c)Righttoconsumereducation. (d)Righttobeheard

3 Rita​​wants​​to​b​uy​a​​​packet​o​f​​juice.​​A​s​​an​​aware​c​ustomer,​h​ow​​can​​she​ 1
b​e​s​ureabout​t​he​q​uality​​of​​juice​s​he​p​lans​t​o​b​uy?
(a)ByISImark (b)ByFPO marklabel

(c)ByHallmark (d)Agmark

4 ConsumercanmakeacomplainttotheNationalCommissionwhenthe 1
valueofgoodsorservicesandcompensationclaimedexceedsrupees 1

5 Vijayp​urchased​​a​​flat​f​or​​Rs.​​50​​lacs​a​nd​​found​​it​d​ifferent​​from​​what​
​was​a​greed.He​w​ants​h​is​m​oney​​back.​​​Suggest​h​im​t​he​​appropriate​
​authority​​to​f​ile​​his​​complaint​​in​t​hethree-tier​m​achinery​u​nder​t​he​
​Consumer​P​rotection​​act,​​1986.

(a)Statecommission (b)Districtforum

(c) Nationalcommission (d)Supremecourt

6 Whenwastheconsumerprotectionactenacted 1

(a)1984 (b)1985

(c)1986. (d)1987

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7 RajaBabu​p​urchased​a​​​diesel​c​ar​​for​​Rs.​​7​l​akhs​​from​​an​​automobile​ 1
c​ompany​a​nd​​found​​itsengine​b​eing​d​efective.​​​Despite​​many​
c​omplaints​t​he​d​efect​w​as​​not​​rectified.​​​Name​​thehighest​​authority​​to​
​file​​his​​complaint​​in​​the​t​hree-tier​m​achinery​u​nder​t​he​C​onsumer
Protection​​Act.

(a)Nationalcommission (b)Statecommission

(c)Districtforum (d)Supremecourt

8 Harsh​a​sked​​for​a​​b​ottle​o​f​m​ineral​​water​​from​​a​​shopkeeper.​​T​he​ 1
​maximum​​retailprice​p​rinted​o​n​​the​b​ottle​w​as​​Rs.​2​0​o​nly​​whereas​​the​
​shopkeeper​​was​​charging​R​s.​3​5.​​I​nspite​​of​​many​​arguments​​the​
s​hopkeeper​​was​​not​​ready​t​o​​sell​​the​b​ottle​​for​​less​t​han​R​s.35.​​H​arsh​
w​as​​in​​need​o​f​i​t​​and​h​ad​n​o​​option​e​xcept​​to​b​uy.​​I​dentify​t​he​‘​Right’​
​whichHarsh​c​an​e​xercise.

(a)Righttochoose (b)Righttoseekredressal

(c)Righttoheard (d) Righttoinformation

9 Whetherfollowingwillbetreatedasaconsumersay'yes'or'no' 1

(a)Sitapurchaseawashingmachineforherhome.

(b)RameshpurchasedaDVDPlayerforresale.

(c)RahulpurchaseacomputerforearninghislivelihoodbydoingDTP
work.

(d)Kunaluseanewmobileconnection.

10 Matchthefollowingqualitymarkisaconsumershouldlookforwhile 1
purchasingthefollowingproducts.

Products. Qualitymarks

(A)electricalgoods. 1.FPOmarks

(B)AgriculturalProducts. 2.ISImark

(C)jewellery. 3.Hallmark

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(D)Foodproducts. 4.Agmark

11 Identifytheconsumerrightdiscussedinthefollowingcases: 1

(A)Manyconsumerorganisationsaretakinganactivepartincreating
awarenessinconsumers.

(B)Accordingtothisrightproduceshavetoprovideallrelevant
informationabouttheproduct.

12 .Aconsumerisnotcertainsatisfiedwithdistrictforum.Inhowmany 1
dayswecanchallengethesameandapproachthestateCommission?

(A)20days. (B)30days

(C) 40days. (D)50days

13 RedressalAgenciescomeunderwhichConsumerProtectionAct? 1
(A)Districtforum
(B)Statecommission
(C)Nationalcommission
(D)Noneofthese
(E)Allofthese

14 ________________________________________________________reliefis 1
availableifthegoodsareadulteratedandthemanufacturerisstillin
practiceofselling.

(A)ceasemanufacturingofhazardousgoods

(B)tocompleteconsumereducation.

(C)tofreechoiceofgoodsandservice.

15 Fullform ofVOICEanNGOis: 1
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(A)variousOrganisationininterestofconsumereducation
(B)voluntaryorganisationininterestofconsumereducation.
(C) Voluntryorganisationininterestofcommodityeducation.

16 StatewhetherthefollowingstatementisTrueorFalse 1

(a)Consumerprotectionhasamoraljustificationforbusiness.

(b)Inadditiontorights,aconsumeralsohassomeresponsibilities.

(c).Aacomplaintcanbemadetoadistrictforum whenthevalueofthe
goodsorserviceinthequestion,alongwiththecompensationclaimed
exceedsRupees20lakh.

(d)ISIisthequalitycertificatemarkusedincaseoffoodproducts

17 IdentifythegivenstatementwhetheritisRightofconsumeror 1
Responsibilityofconsumer:

(A)consumermustreferlabelcarefully.

(B)consumertogetreliefincasetheproductorserviceFallsshortof
hisexpectations.

(C)toacquireknowledgeandtobeawellinformedconsumer
throughoutlife.

(D)totakecashmemo.

18 _________________________issetupbythecentralgovernment. 1
(A)stateCommission
(B)districtForum
(C)NationalCommission
(D)noneofthese

19 Reena​​purchased​s​ome​h​ousehold​​goods​f​rom​​a​​‘General​​store’.​​​After​ 3
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​reachinghome​​she​​found​​a​​face​c​ream​w​hich​s​he​​had​​not​b​illed​f​or.​​ 3
A​fter​​checking​​the​​date​o​f​e​xpiryand​​other​​details,​​she​s​tarted​u​sing​​it.​​ 3
​Her​​face​​burnt​d​ue​t​o​t​he​​use​​of​t​he​​cream.​​W​hereshould​T​anya​f​ile​a​​
​complaint?​​J​ustify.​​U​nder​​Consumer​​Protection​A​ct,​1​986​w​ho​​can​f​ile 4
a​​complaint?

20 Seema​purchased​a​​b​ook​f​rom​H​arish​​Book​S​tore.​​W​hile​r​eading​t​he​
b​ook,​s​he​​foundthat​s​ixteen​p​ages​w​ere​m​issing.​​​She​a​pproached​t​he​
​seller​​of​t​he​​book​​and​​complainedabout​​the​​missing​p​ages.​​​The​s​eller​
​promised​t​hat​​if​t​he​p​ublisher​w​as​​ready​t​o​​change​t​hebook​​he​w​ould​
​change​t​he​​same.​​​After​a​​​week,​​the​​seller​​informed​​Seema​that​t​he​
p​ublisherhad​​refused​​to​c​hange​​the​b​ook.Where​c​an​S​eema​file​​a​
c​omplaint​​against​t​he​​seller​o​f​t​he​​book?​​​Give​r​eason​​in​​support​​ofyour​
a​nswer.​​​Also​e​xplain​​who​​is​​a​c​onsumer​a​s​​per​“​Consumer​P​rotection​
​Act​​1986”.

21 ​R​aghavmoved​f​rom​​Dehradun​to​​Mumbai​​to​​work​​as​a​n​​artist​​in​
​televisionserials.​​​On​g​etting​​his​f​irst​s​alary,​​he​o​pened​​an​a​ccount​i​n​​a​
n​earby​​commercial​b​ank​a​ndalso​o​pted​f​or​​ATM​f​acility​u​nder​​ATM​
​card.​​A​fter​a​​f​ew​m​onths,​h​e​​lost​h​is​A​TM​C​ard​a​ndlodged​​a​​request​
w​ith​​the​b​ank​f​or​​furnishing​​duplicate​c​ard.​​​Consequently,​​he​​was​
a​llottedduplicate​A​TM​C​ard​N​umber​​but​​that​​card​w​as​​not​​given​t​o​​him.​​
A​fter​a​​w​eek,​h​e​​received​a​SMS​​message​​on​h​is​​mobile​​stating​t​hat​
​sum​​of​R​s.​1​0,000/-​h​as​​been​w​ithdrawn​f​rom​h​isaccount.​​​Since​​the​
​duplicate​​ATM​c​ard​​was​n​ot​g​iven​t​o​h​im,​h​e​b​rought​​the​​debit​​entry​i​n
the​​notice​o​f​t​he​​bank.​​T​he​b​ank​a​ssured​t​o​​repay​t​hat​​amount​t​o​​him​
​within​​15​​days​​afterinvestigating​t​he​i​ssue.​​​But,​​more​​than​​a​​month​h​as​
p​assed​​since​​then​​and​d​espite​​hispersistent​​efforts​t​he​b​ank​​has​n​ot​
t​aken​​any​a​ction​s​o​f​ar.​​S​o,​​he​​files​a​​​case​a​gainst​t​hebank​​in​​the​
​district​f​orum.​​​The​​consumer​​court​c​an​​issue​a​​n​otice​​to​t​he​​bank​​after​
​beingsatisfied​w​ith​​the​​genuineness​o​f​​the​c​omplaint​a​nd​d​irects​​the​
​bank​​to​r​epay​R​s.​​10,000​​toRaghav​along​​with​t​he​c​ompensation​​of​​Rs.​
5​0,000.Name​​the​​rights​e​xercised​b​y​R​aghavi​n​t​he​c​ontext​o​f​t​he​a​bove​
c​ase.

22 ​In​​the​​year​​2015,​​Under​​section​​12(ID)​​o​f​t​he​​Consumer​P​rotection​​Act,​
​theConsumer​A​ffairs​M​inistry​h​ad​f​iled​​a​​suit​i​n​N​ational​​Consumer​
​Disputes​R​edressalCommission​(​NCDRC)​​against​N​estle​I​ndia,​​the​
m​anufacturer​​of​​Maggi​n​oodles,​​seekingabout​R​s.​6​40​​crore​​in​
​damages​f​or​​alleged​u​nfair​t​rade​p​ractices,​​false​​labeling​​and
misleading​​advertisements.

In​​context​​of​t​he​​above​​case:1.Name​a​ny​​two​​other​​two​​parties​

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​besides​g​overnment​​who​​can​​file​a​​c​ase​​underConsumer​P​rotection​A​ct​
1​986.

2.Why​​has​​the​​government​f​iled​​a​s​uit​i​n​N​ational​​Consumer​​Disputes​
R​edressalCommission​(​NCDRC)​a​nd​a​t​​no​​other​​level​​of​​three​t​ier​
​redressal​s​ystem?

23 ​​Rajat​​purchased​a​n​I​SI​m​ark​​electric​​iron​​from​B​harat​E​lectricals.​​W​hile​ 4
​using​i​t,he​f​ound​​that​i​t​​was​n​ot​​working​​properly.​​​He​a​pproached​​the​ 5
​seller​a​nd​​complained​​aboutthe​​same.​​T​he​m​anufacturer​​refused​​to​
​replace​a​nd​B​harat​​Electrical​​decided​t​o​f​ile​a​complaint​​in​​the​​consumer​
​court.Can​​Bharat​​Electricals​d​o​​this?​​​Why?​​​Also​e​xplain​w​ho​i​s​​a​
c​onsumer​a​s​p​er​​ConsumerProtection​​Act,​1​986.

24 On​h​er​​sister’s​​wedding,​​Radha​​decided​​to​​gift​​her​g​old​e​arrings.​​​When​
s​he​s​haredher​​plan​​with​​her​h​usband,​h​e​s​howed​​her​​an​​article​​in​t​he​
d​aily​​national​​newspaper​​underthe​h​eading​“​Jago​​Grahak​​Jago.”​​​The​
c​ampaign​​included​d​etails​a​bout​t​he​​various​​aspectsthat​​people​m​ust​
c​onsider​b​efore​b​uying​a​ny​g​old​​jewellery.

1.Why​​do​​you​t​hink​c​ampaigns​l​ike​“​Jago​​Grahak​​Jago”​​are​​inserted​​in​
​the​n​ewspaper?

2.Name​​the​​right​o​f​c​onsumer​​being​f​ulfilled​​through​​this​​initiative​​of​
​the​g​overnment

3.State​​any​t​hree​r​esponsibilities​​that​R​adha​​must​d​ischarge​​as​​an​
​aware​c​onsumerwhile​b​uying​h​er​​s​ister’s​​wedding​​gift.​​​​​​​​​​​​​​​​​​​​​​

25 Home​S​hop​​18​i​s​i​an​​online​a​nd​o​n-air​r​etail​​and​​distribution​v​enture​​of​ 5
t​he​N​etwork18​g​roup,​​India.​​​It​​is​​a​​part​o​f​t​he​​Network​​18​M​edia​​and​
​Investments​​Limited​​which​i​sowned​​and​o​perated​b​y​​Reliance​
I​ndustries.​​C​urrently,​​Home​S​hop​1​8​​com​c​omprises​​ofmore​​than​​15​
c​ategories​​namely,​M​obiles,​​Health​&​​​Beauty,​​Apparel,​J​ewellery,​H​ome​
&​Kitchen,​H​ousehold​A​ppliances​e​tc.​​to​n​ame​​a​​few.​​​The​c​ompany​
o​ffers​​a​w​ide​v​ariety​o​fgoods​​under​​each​o​f​​these​c​ategories.

1.Identify​​and​​explain​t​he​​relevant​c​onsumer​​right​​being​​promoted​b​y​
​the​c​ompany.

2.Also​​mention​​any​t​wo​​values​b​eing​r​eflected​​through​​this​​approach​
a​dopted​b​y​​thecompany.

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26 ​RajaRam ​bought​a​​b​ottle​o​f​d​isinfectant​​spray​​from​t​he​​nearby​m​arket.​​ 6
I​t​​had​a​​k​nobwhich​w​as​​to​b​e​o​pened​i​n​a​​​particular​w​ay.​​​However,​
t​here​​was​​no​​instruction​​on​i​tspackage​i​n​t​his​​regard.​​T​herefore,​​when​
h​e​t​ried​t​o​​open​​the​k​nob​i​n​​a​​casual​w​ay,​​some​​ofthe​​spray​f​lew​i​n​​his​
e​yes.​​T​his​​affected​​his​v​ision.

In​​context​​of​t​he​a​bove​c​ase:

1.Name​t​he​​right​​of​c​onsumer​b​eing​v​iolated​b​y​t​he​​company.

2.State​a​ny​​two​d​irections​​which​t​he​c​onsumer​c​ourt​c​an​​issue​​to​​the​
​company​​afterbeing​s​atisfied​w​ith​​the​​genuineness​o​f​​the​​complaint.

27 ​Aman​​a​​degree​​holder​​in​E​ntrepreneurship​​came​t​o​k​now​a​bout​​Piplantri​ 6
V​illagelocated​​in​R​ajasthan,​​where​​in​​2006​a​n​i​nitiative​w​as​​started,​i​n​
w​hich​​111​​trees​​are​​plantedevery​t​ime​​a​g​irl​c​hild​​is​​born.To​k​eep​
t​ermites​​away​​from​t​he​​trees​t​he​​villagers​​have​p​lanted​2​.5​m​illion​​Aloe​
​Vera​​plantsaround​​the​​trees.​​T​his​​has​​turned​​the​v​illage​​into​o​n​​oasis,​
a​s​t​he​​planting​o​f​​trees​​led​t​ohigher​​water​​levels.Aman​​decided​t​o​v​isit​
t​he​​village​​to​​start​a​​b​usiness​u​nit,​​for​t​he​p​rocessing​​and​m​arketing​​of
Aloe​​Vera​i​nto​​juices,​g​els​a​nd​o​ther​​products.However,​o​n​v​isiting​​the​
​village​​Aman​​found​​that​t​he​v​illagers​​were​​suffering​e​xploitation​​atthe​
​hands​o​f​​local​​merchants​w​ho​​were​e​ngaged​i​n​u​nscrupulous,​
e​xploitative​​tradepractices​​like​h​ording​​and​b​lack​​marketing​o​f​​food​
​products​a​nd​a​lso​​selling​​unsafe,adulterated​p​roducts​​to​​the​v​illagers.
After​l​ooking​​at​​their​p​light​​instead​o​f​a​​b​usiness​o​rganization​​he​
​decided​t​o​s​et​u​p​a​norganization​​for​t​he​p​rotection​​and​p​romotion​o​f​
​the​c​onsumer​i​nterest​​of​t​he​v​illagers.

State​​the​​functions​​that​​the​o​rganization​e​stablished​b​y​A​man​​will​​be​
​performing.​(​any​​sixpoints)​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

28 Good​​Health​L​td.,​a​​​pharmaceuticals​​company,​​has​​introduced​​mosquito​ 6
​repellentbands​​under​​the​​brand​n​ame​‘​Jaddu’​i​n​t​he​w​ake​o​f​​outbreak​o​f​
​dengue​i​n​​various​​parts​o​fthe​​country.​​T​he​p​roduct​​attracted​m​any​
p​eople​f​rom​a​ll​a​ge​g​roups,​​especially​k​ids.However,​​the​c​ompany​
f​ailed​​to​​provide​​adequate​g​uidance​​for​t​he​​users​​on​t​he​l​abel​o​f​t​he
product​i​n​t​erms​​of​t​ime​​period​o​f​​the​​effectiveness​o​f​t​he​​repellent​
b​and​o​nce​i​ts​​seal​​isopened.​​B​ecause​o​f​t​his​a​mbiguity,​m​any​b​uyers​

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f​aced​p​roblems.In​c​ontext​o​f​t​he​a​bove​​case:1.Identify​a​nd​e​xplain​​the​
​consumer​​right​​which​h​as​b​een​​overlooked​​by​​the​​company​​.

2.Name​​and​​explain​a​ny​t​wo​​functions​​of​t​he​i​mportant​p​roduct​​related​
​aspect​i​gnoredby​t​he​​company.

Markingscheme

Q.n Answer Marks
o
1
1 (c)The​​Supreme​​Court 1

2 (b)Right​to​​choose. 1

3 (b)By​​FPO​m​ark​l​abel 1
1
4 1crore 1
5 (a)S​tate​C​ommission
6 (​c)1986 1
1
7 (a)National​C​ommission 1
8 (c)Right​t​o​​be​​Heard
9 a,candd'yes'

b.'No'

226/190

10 A. __2 1

B.____4 1
C_____3 1
D______1 1
1
11 (a)righttoconsumereducation 1
1
(b)Righttobeinformed
1
12 B

13 E

14 A
15 B

16 A.True

B.True
CFalse
D False

17 (a)Responsibility

(b).Right
(C).Right
(D)Right

227/190

18 c 1
3
19 ​Reenacannot​f​ile​​a​​complaint​​in​a​ny​​consumer​c​ourt​​since​​she​

​does​​not​h​ave​​the​p​roofof​p​urchase,​i​.e.,​​c​ash​​memo.​​S​he​d​id​
n​ot​​fulfil​​her​​responsibility​o​f​​an​h​onest​​consumer.She​s​hould​
h​ave​g​one​​back​t​o​t​he​​general​​store​t​o​​get​​its​​billing.​​​

Under​​the​C​onsumerProtection​a​ct,​1​986,​​any​o​f​​the​​following​​can​
f​ile​a​​​complaint:

1.Any​​consumer

2.Any​​registered​​consumers’​a​ssociation

3.The​c​entral​G​overnment​o​r​​any​​State​​Government

4.One​o​r​m​ore​​consumers​​on​​behalf​o​f​m​any​c​onsumers​h​aving​
s​ame​​interest.

5.A​​legal​r​epresentatively​​of​​a​d​eceased​​consumer.

20 Since,​t​he​​value​o​f​​the​​goods​o​r​​services​i​n​​question,​a​long​​with​​the​ 3

c​ompensationclaimed,​d​oes​​not​​exceed​R​s.​​20​​lakhs​s​he​​will​​file​​a​
​case​i​n​​the​​District​​Forum.

1A​​‘consumer’​​is​​generally​u​nderstood​​as​a​​​person​w​ho​u​ses​​or​
​consumes​g​oods​o​r​​avails​o​fany​s​ervices.​​​

2.A​p​erson​w​ho​​buys​g​oods​f​or​​commercial​​purpose​​or​​resale​w​ill​
n​ot​​beconsidered​t​o​​be​​a​c​onsumer.

21 The​t​wo​r​ights​​exercised​b​y​​Raghav​i​n​​the​​context​o​f​t​he​​above​ 3
3
​case​​are​​Right​​tobe​h​eard​a​nd​​Right​​to​​seek​r​edressal.

22 The​​two​o​ther​​two​​parties​b​esides​g​overnment​​who​c​an​f​ile​a​​​case​

u​nder​C​onsumerProtection​A​ct​​1986​​are​​any​c​onsumer​a​nd​​any​
r​egistered​c​onsumers’​​association.

2.The​g​overnment​f​iled​​a​​suit​i​n​​National​​Consumer​​Disputes​
​Redressal​​Commission(NCDRC)​​and​​at​n​o​​other​​level​​of​t​he​t​hree​
​tier​​redressal​​system​b​ecause​​acomplaint​h​as​t​o​​be​m​ade​​to​​the​
​National​C​ommission​o​nly​​when​t​he​​value​​of​t​hegoods​​or​s​ervices​
i​n​q​uestion,​a​long​​with​​the​c​ompensation​c​laimed,​e​xceeds​​Rs.​1​

228/190

crore.

23 No,​​Bharat​E​lectricals​w​ill​​not​b​e​a​ble​t​o​​file​​a​​complaint​u​nder​ 4

C​onsumer​​ProtectionAct​​1986​​because​a​ccording​t​o​t​his​a​ct​a​​
p​erson​i​s​n​ot​​deemed​t​o​​be​​a​c​ustomer​i​f​h​e​​buysgoods​f​or​r​esale​
o​r​​commercial​​purpose.Under​t​he​​Consumer​​Protection​A​ct​1​986,​
​a​c​onsumer​​is​d​efined​a​s:

1.Any​​person​w​ho​b​uys​a​ny​​goods​f​or​a​​c​onsideration,​​which​​has​
​been​​paid​o​rpromised,​o​r​​partly​​paid​​and​​partly​​promised​​or​u​nder​
​any​s​cheme​​of​d​eferredpayment.​​​It​​includes​​any​u​ses​o​f​​such​
g​oods,​w​hen​​such​​use​i​s​​made​w​ith​​theapproval​o​f​t​he​b​uyer,​b​ut​
d​oes​​not​​include​a​​​person​​who​​obtains​​goods​​for​r​e-sale​​orany​
c​ommercial​p​urpose.

2.Any​​person​w​ho​​hires​o​r​a​vails​o​f​a​ny​s​ervice,​f​or​a​​
​consideration​w​hich​h​as​​beenpaid​o​r​p​romised​o​r​​partly​p​aid​a​nd​
p​artly​p​romised​​or​u​nder​​any​s​ystem​o​f​d​eferredpayment.​​I​t​
i​ncludes​​any​​beneficiary​​of​​services​​when​s​uch​s​ervices​​are​a​vails​
o​fsuch​​services​​for​​any​​commercial​p​urposes.

24 The​c​ampaigns​l​ike​“​Jago​​grahak​​Jago”​​are​g​iven​i​n​​the​n​ewspaper​ 5
5
t​o​​make​​theconsumers​​aware​​of​​the​v​arious​u​ndesirable​a​ctivities​
l​ike​​unscrupulous,​u​nfair​​tradepractices​​etc​​which​​are​c​arried​o​ut​
b​y​t​he​​marketers​t​o​e​xploit​t​he​​buyers.

2.Right​​to​​Consumer​​Education​​is​​being​​fulfilled​t​hrough​​this​
i​nitiative​​of​​thegovernment.3.The​​three​r​esponsibilities​t​hat​
​Radha​m​ust​​discharge​​while​​buying​​her​​sister’swedding​g​ift​​are​​as​
​follows:

1.Buy​o​nly​s​tandardized​​goods​​and​​check​​for​s​tandardization​
​mark​​like​​Hallmark​​forgold​j​ewellery.

2.Assets​​herself​​to​e​nsure​t​hat​s​he​​gets​a​​​fair​d​eal.

3.Ask​f​or​a​​c​ash​​memo​o​n​p​urchase​o​f​​goods​​or​​services.

Ans.25

25 The​R​ight​t​o​C​hoose​i​s​​being​​promoted​​by​t​he​c​ompany.​​

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​According​​to​​the​​Right​​toChoose,​​the​​consumer​​has​a​​r​ight​t​o​
c​hoose​f​rom​​a​​variety​o​f​​products​​at​c​ompetitiveprices.​​A​lso,​​the​
​marketers​s​hould​o​ffer​​w​w​ide​v​ariety​​of​p​roducts​t​o​​buyers.

2.The​t​wo​v​alues​​being​r​eflected​t​his​​approach​​adopted​​by​t​he​
​company​a​re​i​ncreasingstandard​o​f​​living​a​nd​t​echnological​
d​evelopment

26 The​​two​r​ights​o​f​c​onsumer​​being​​violated​i​n​​the​​above​​case​a​re​ 6
6
​Right​​to​​informationand​R​ight​t​o​s​afety.

2.The​t​wo​d​irections​w​hich​t​he​c​onsumer​​court​​can​​issue​​to​​the​
​company​a​fter​b​eingsatisfied​​with​​the​g​enuineness​​of​​the​
​complaint​a​re​​as​​follows:

1.Not​t​o​​offer​h​azardous​g​oods​​for​​sale.

2.To​​pay​​a​r​easonable​​amount​​of​c​ompensation​​for​​any​l​oss​​or​
i​njury​s​uffered​​by​t​heconsumer​​due​t​o​t​he​n​egligence​​of​​the​
m​arketer

27 ​Functions​o​f​​an​​NGO​/​​C​onsumer​​organization

1.Educating​t​he​v​illagers​/​​g​eneral​​public​​about​​consumer​r​ights​
​by​​organizing​t​rainingprogrammes,​s​eminars​a​nd​w​orkshops.

2.Publishing​p​eriodicals​a​nd​o​ther​p​ublications​​to​i​mpart​
k​nowledge​​about​c​onsumerproblems,​r​eliefs​​available​a​nd​​other​
​matters​o​f​​interest.

3.Carrying​o​ut​​comparative​​testing​​of​c​onsumer​​products​​in​
a​ccredited​l​aboratories​t​otest​​relative​q​ualities​o​f​c​ompeting​
b​rands​a​nd​​publishing​t​he​t​est​r​esults​​for​t​hebenefit​o​f​
​consumers.

4.Encouraging​c​onsumers​​to​s​trongly​​protest​a​nd​​take​a​n​​action​
​against​​exploitativeand​​unfair​t​rade​​practices​o​f​​sellers.

5.Providing​l​egal​a​ssistance​​to​c​onsumers​​by​w​ay​​of​​providing​​aid,​
l​egal​​advice​​etc,​i​nseeking​l​egal​​remedy.

6.Filing​c​omplaints​i​n​​consumer​​courts​​on​b​ehalf​​of​​consumers.

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28 The​Right​​to​​information​​is​b​eing​o​verlooked​​by​​the​c​ompany​​in​​the​ 6

a​bove​m​entionedcase.1.According​t​o​​the​R​ight​​to​i​nformation,​a​​
c​onsumer​h​as​​the​​right​​to​​get​​completeinformation​a​bout​​the​
p​roduct​h​e​/​​​she​i​ntends​t​o​​buy​​including​​its​​contents,​d​ate​o​f
manufacture,​d​ate​​of​e​xpiry.​​Price,​​quality,​​directions​f​or​u​se​​etc.​​
A​lso,​​as​​per​l​aw,​i​tis​​mandatory​f​or​t​he​​marketers​​to​​provide​
c​omplete​​information​​about​t​he​p​roduct​​/service​t​o​t​he​b​uyers.

2.The​​important​a​spect​r​elated​​to​t​he​m​arketing​o​f​​products​
​which​​has​​been​​ignored​​bythe​c​ompany​​is​​Labelling.

The​t​wo​​important​f​unctions​p​erformed​​by​l​abeling​a​re:1.
Describes​​the​​product​​and​​specifies​​its​​contents:2.Helps​​
in​​identification​​of​​the​​product​​or​​brand:

.
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