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Consumer Rights Test - 1

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Consumer Rights Test - 1
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Weekly Quiz Competition
  • Question 1
    1 / -0
    For which of the following products is the quality check ISI and Agmark compulsory under government rules?

    (i) LPG cylinders
    (ii) Jewellery
    (iii) Food colours and additives
    (iv) Cement
    Solution
    The products that affect health and safety of consumers or of products of mass consumption like LPG cylinders, food colours and additives, cement, packaged drinking water, it is mandatory on the part of producers to get certified by ISI and Agmark. Jewellery is not mandatory certified by the producer. Agmark certifies the quality of agricultural products and ISI certifies electrical equipment and tools.
    Under the Federal Food, Drug, and Cosmetic Act (Chapter VII, section 721), color additives, except coal tar hair dyes, are subject to FDA approval before they may be used in food, drugs, or cosmetics, or in medical devices that come in contact with the bodies of people or animals for a significant period of time.
  • Question 2
    1 / -0
    Why do consumers go to consumer courts?
    Solution
    Whenever a consumer is cheated by the producer, he/she can make a complaint regarding the producer. The court, after checking the evidences, provide the consumers with compensation or replacement. This way the consumers are able to exercise their rights. Consumer courts were established as Consumer Dispute Resolution Agencies and they deal with consumer disputes, conflicts and grievances. It is a forum where a consumer may file a case against a seller in the case where the consumer feels that he/she has been cheated or exploited by the seller.
    So, all the options are right.
  • Question 3
    1 / -0
    Who among the following are the participants in the market?

    (i) Consumers
    (ii) Producers
    (iii) Government
    (iv) Consumer Courts
    Solution
    Consumers and producers are the participants in the market. Producers participate by working in any of the sectors, while consumers participate by purchasing goods and services.
    Market participants are those buyers and sellers transacting business in the principal market for an asset or liability. These participants are not related parties, have a reasonable understanding of the asset or liability, are capable of entering into a transaction to buy or sell the item, and are motivated to do so.
  • Question 4
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    Which of the following does not require any rules and regulations?
    Solution
    We do not require any rules and regulations while making a shopping list. However, rules and regulations are required to promote development in the country. Protection of workers in organised sectors, protection from high interest rates and protecting the environment require rules and regulations. There are different laws for protecting workers in organised sectors, protecting high interest rates and protecting the environment.
  • Question 5
    1 / -0
    Whenever there is a complaint regarding goods or services, the seller tries to shift all the responsibility on the
    Solution
    Large companies with huge wealth, power and reach can manipulate the market in various ways. Rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer. Their position usually is - If you didn't like what you bought, please go elsewhere. As if the seller has no responsibility once a sale is completed.
  • Question 6
    1 / -0
    Which of the following is a fair trade practice?
    Solution
    Providing a bill at the end of the transaction is a fair trade practice. Every consumer must demand the bill after purchase of goods and services. The bill is the proof of purchase and can be used to seek justice if the consumer feels cheated after buying the commodity. Fair Trade is a set of business practices voluntarily adopted by the producers and buyers.
  • Question 7
    1 / -0
    Markets do not work in a fair manner when:

    Statement I: Consumers are present collectively at one place.
    Statement II: Consumers purchase in small amounts.

    Which of the above statement is/are correct?
    Solution
    Markets do not work in a fair manner when producers are few and powerful, whereas consumers purchase in small amounts and are scattered.
    So, only statement II is correct.
  • Question 8
    1 / -0
    How do the companies with huge wealth and power manipulate the market?
    Solution
    The companies with huge wealth and power manipulate the market by providing false information to the consumers through media and other sources to attract consumers. Large companies with huge wealth, power and reach often manipulate the markets by establishing their monopoly. Large MNCs sometimes have their net worths more than the wealth of governments. Money and muscle power play a huge role here.
  • Question 9
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    Consumers are exploited in the market in a number of ways. What does the producer do to exploit them?

    (i) Providing quality goods but not services
    (ii) Providing them guarantee for the goods for limited period only
    (iii) Providing them a replacement for defective products
    (iv) Providing them goods without mentioning its particulars

    Choose the correct option.
    Solution
    Providing the goods without mentioning its particulars is a form of customer exploitation by the producer in which customer is not informed about many of the important details regarding the product. In the absence of timely and correct information like price, quality, composition, terms of purchase, guarantee/warranty, etc., consumers may make a wrong choice and lose their money.
  • Question 10
    1 / -0
    The consumer movement arose because of

    (i) dissatisfaction of the consumers
    (ii) availability of legal system for the producers

    Which of the above statements is/are correct?
    Solution
    The consumer movement arose because of dissatisfaction of the consumers as sellers were indulged in many unfair trade practices. There was no legal system available for consumers to protect them from exploitation in the marketplace. Besides these, there was no legal system for producers as well.
  • Question 11
    1 / -0
    Which of the following did not give birth to consumer movements?
    Solution
    The expiry date of products did not give birth to consumer movements. The mentioning of expiry date of products is a useful thing for the consumers. The consumer movement is an effort to promote consumer protection through an organised social movement which is in many places led by consumer organisations.
  • Question 12
    1 / -0
    Consider the following statements and choose the correct option.

    Statement I: Till 1970s, consumer organisations were engaged in writing articles and holding exhibitions.
    Statement II: The consumer movement as a 'social force' originated with the necessity of protecting the interest of consumers.
    Solution
    In India, the consumer movement as a social force originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. These gave birth to consumer movement in an organised form in the 1960s. Till 1970s, consumer organisations were largely engaged in writing articles and holding exhibitions.
  • Question 13
    1 / -0
    When did the United Nations adopt the UN Guidelines for Consumer Protection?
    Solution
    The UN Guidelines for Consumer Protection were adopted in 1985 as a tool for nations to adopt measures to protect consumers. On 9th April, 1985, the General Assembly of the United Nations unanimously adopted a set of general guidelines for consumer protection.
  • Question 14
    1 / -0
    What was the result of the consumer movement?
    Solution
    Because of all the efforts, the consumer movement succeeded in bringing pressure on government as well as on business firms to correct business conduct which may be unfair and against the interest of consumers at large. A major step taken in 1986 was the enactment of the Consumer Protection Act, 1986, popularly known as COPRA.
  • Question 15
    1 / -0
    We still find bad quality products in the market because
    Solution
    We still find bad quality products in the market because supervision of rules is weak and the consumer movement is not strong enough. There are bad quality products in the market to earn more profit because unfair trade practices are used in market, like misrepresentation, false advertising or representation of a good or service, tied selling, false free prize or gift offers, deceptive pricing, and noncompliance with manufacturing standards.
  • Question 16
    1 / -0
    Which of the following products does not require special attention for safety?
    Solution
    Pressure cooker, LPG cylinder and electronic equipment need special attention towards safety. ISI certification is required for such products. Since pressure cookers tend to lock pressure inside, they were vulnerable to implosion if not monitored properly. Liquid Petroleum Gas (LPG) is a common fuel source for heating and cooking. LPG cylinders are safe when used correctly. To avoid personal injury, possible damage to equipment or danger of fire, all work on electronic equipment should be conducted following safety procedures.
    However, furniture need not be ISI marked.
  • Question 17
    1 / -0
    Which of the following particulars is/are not mandatory to be printed on the packaging of the product?
    Solution
    Packaging refers to the process of designing the package such as containers, wrappers, etc. It plays a very significant role in the marketing success or failure of many products especially for non-durable consumer products. Packaging of a product requires ingredients, maximum retail price and name of the product to be mentioned on it; however, it is not mandatory to specify the calorie information related to the product.
  • Question 18
    1 / -0
    Rules made it mandatory for manufacturers to display the information necessary for the product. Which of the following rights of consumers do the rules cover?
    Solution
    Rules have been made so that manufacturers display the information necessary for the product. It is because consumers have the right to be informed about the particulars of goods and services that they purchase.
  • Question 19
    1 / -0
    What do we mean by MRP?
    Solution
    MRP means Maximum Retail Price. Maximum Retail Price is the price which is printed on the packet. Producers cannot charge more than MRP.
    A Maximum Retail Price (MRP) is a manufacturer calculated price that is the highest price that can be charged for a product sold in India and Bangladesh. However, retailers may choose to sell products for less than the MRP.
  • Question 20
    1 / -0
    In October 2005, the Government of India enacted a law, popularly known as RTI. It ensures that
    Solution
    Right to Information (RTI) is an act of the Parliament of India which sets out the rules and procedures regarding citizens' right to information. RTI ensures its citizens all the information about the functions of government departments. Since RTI is implicit in the Right to Freedom of Speech and Expression under Article 19 of the Indian Constitution, it is an implied fundamental right.
  • Question 21
    1 / -0
    Sometimes gas supply dealers insist to buy stove from them when we take a new connection. By doing this, they exploit our
    Solution
    Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service. By forcing the consumer to buy a gas stove, the producer is exploiting this right.
  • Question 22
    1 / -0
    Which of the following is not true about Consumer Forums?
    Solution
    Consumer Forums are voluntary organisations. They receive financial support from the government for creating awareness among the people.
  • Question 23
    1 / -0
    A builder agreed to provide a consumer, the possession of a house in 2015. The consumer gave him Rs. 6,00,000 for the same. However, the builder could not make available the possession on the specified date. The consumer wants to file a complaint regarding the same. He wants to claim double the amount of what has been paid to the builder. In which court should he ask for the claim?
    Solution
    He should file the complaint in the district level court because it deals with the cases involving claims up to Rs. 20 lakh.
  • Question 24
    1 / -0
    Which of the following is not correctly matched?
    Solution
    (1) The ISI mark has been a standards-compliance mark for industrial products in India since 1955. The mark certifies that a product conforms to an Indian standard (IS) developed by the Bureau of Indian Standards (BIS), the national standards body of India.
    Therefore, ISI - Industrial products
    (2) Agmark is approved by the Directorate of Marketing and Inspection which falls under the Department of Agriculture.
    Therefore, Agmark - Agricultural products.
    (3) A hallmark is an official mark or series of marks struck on items made of metal, mostly to certify the content of noble metals—such as platinum, gold, silver and in some nations, palladium.
    Therefore, Hallmark - Precious metals
    Hence, all of the given pairs are correctly matched.
  • Question 25
    1 / -0
    Why does the consumer find the consumer redressal process cumbersome?

    (i) This process is expensive and time consuming.
    (ii) Consumers are required to engage lawyers.
    (iii) It is not easy to gather the evidences.
    (iv) The existing laws do not issue compensation to consumers.
    Solution
    The consumer redressal process is cumbersome, expensive and time consuming. Many times, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings, etc. In most purchases, cash memos are not issued; hence, evidence is not easy to gather.
    Therefore, (i), (ii) and (iii) are correct.
  • Question 26
    1 / -0
    National Consumers Day is celebrated on
    Solution
    Every year, 24th of December is observed as National Consumer Day with a specific theme in India. On this day, the Consumer Protection Act, 1986, had received the assent of the president. The enactment of this Act is considered a historic milestone in the consumer movement in the country.
  • Question 27
    1 / -0
    Government of India enacted Consumer Protection Act in the year:
    Solution
    Government of India enacted Consumer Protection Act in the year 1986. Based on the UN guidelines, the Government of India enacted a landmark Act called the Consumer Rights Protection Act of 1986. The basic purpose of this welfare Act was to exclusively protect consumers from various types of market exploitation. The Consumer Protection Act, 1986 seeks to promote and protect the interest of consumers against deficiencies and defects in goods or services. It also seeks to secure the rights of a consumer against unfair or restrictive trade practices.
  • Question 28
    1 / -0
    Which of the following statements is/are correct?

    (i) ISI standard is used for standardisation of agricultural products.
    (ii) Right to Information Bill was passed in November 2005.
    (iii) Human Protection Act was passed in India in 1993.
    (iv) Consumer Protection Act was passed in 1986.
    Solution
    (1) The ISI mark has been a standards-compliance mark for industrial products in India since 1955.
    So, (i) is incorrect.
    (2) Right to Information Bill was passed by the Parliament on 15th June, 2005 and came fully into force on 12th October 2005. Every day, over 4800 RTI applications are filed.
    So, (ii) is incorrect.
    (3) The National Human Rights Commission (NHRC) of India is a statutory public body constituted on 12th October, 1993 under the Protection of Human Rights Ordinance of 28th September, 1993. It was given a statutory basis by the Protection of Human Rights Act, 1993 (TPHRA).
    So, (iii) is correct.
    (4) The Consumer Protection Act, 1986 is an Act of the Parliament of India enacted in 1986 to protect the interests of consumers in India.
    So, (iv) is correct.
    Both (iii) and (iv) are correct.
  • Question 29
    1 / -0
    Agmark and ISI marks show:
    Solution
    Agmark and ISI marks show quality and standard of products. These logos and certification help consumers get assured of quality. Agmark is the quality certification mark employed on agricultural products in India. ISI mark is mandatory for all industrial products and electronic appliances in India. It certifies that a product conforms to the standards laid down by BIS.
  • Question 30
    1 / -0
    'Hallmark' is used as a logo for which of the following?
    Solution
    Hallmark is used as a logo for jewellery. A hallmark is an official mark or series of marks struck on items made of metal, mostly to certify the content of noble metals—such as platinum, gold, silver and in some nations, palladium. In a more general sense, the term hallmark can also be used to refer to any distinguishing characteristic.
  • Question 31
    1 / -0
    COPRA is related to:
    Solution
    COPRA is related to consumer. COPRA stands for 'Consumer Protection Act', which was applied on 1986 to protect consumers from fake market price, expiry dates and to make them aware of importance of consumers' rights. It was a major step enacted by the government in 1986.
  • Question 32
    1 / -0
    Right to choose, right to seek redressal, right to represent and right to be informed are
    Solution
    Right to choose, right to seek redressal, right to represent and right to be informed are consumer rights.
    Consumer rights are generally a reference to a body of law that pertains to things the producers of goods must do to protect customers from harm. These laws have come into existence through a series of legal disputes, and have been shaped by the results of those cases.
  • Question 33
    1 / -0
    Which of the following statements is not true about MRP?
    Solution
    The statement in option 3 is not true about MRP. A seller cannot sell the product above MRP.
    MRP stands for Maximum Retail Price. Under Consumer Protection Act, it is illegal to sell the product above MRP.
    The manufacturer is required to clearly mention the Maximum Retail Price on the consumer good and the retailer is prohibited to sell at a price higher than the MRP.
    A maximum retail price (MRP) is a manufacturer calculated price that is the highest price that can be charged for a product sold.
  • Question 34
    1 / -0
    Consumer must be provided with accurate information about quality, purity, price, quantity and the standard of the goods and services. What right of a consumer is this?
    Solution
    The right to information is defined as 'the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be so as to protect the consumer against unfair trade practices' in the Consumer Protection Act of 1986.
  • Question 35
    1 / -0
    Right to Information Act was passed by the government on:
    Solution
    Right to Information Act was passed by the government on 12th October, 2005.
    Right to Information (RTI) is an Act of the Parliament of India which sets out the rules and procedures regarding citizens' right to information. It replaced the erstwhile Freedom of Information Act, 2002. This law was passed by the Parliament on 15th June, 2005 and came fully into force on 12th October, 2005.
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