Chapter 5 - Consumer Protection, Select the proper option from the options given below and rewrite the complete sentence:

Chapter 5 - Consumer Protection

Select the proper option from the options given below and rewrite the complete sentence:

Under the Consumer Protection Act, 1986, there is a________ quasi judicial consumer dispute redressal machinery for solving the complaints of the consumers.

(a) Two-tier
(b) Five-tier
(c) Three-tier

ANSWER: Correct option-c

Under the Consumer Protection Act 1986, there is a three-tier quasi-judicial consumer disputes redressal machinery for solving the complaints of the consumers.

Explanation:

Under the Consumer Protection Act, a three-tier machinery comprising District Forums, State Commissions and the National Commission has been set up for the speedy redressal of consumer grievances. This machinery works at the district, state and national levels. The prime motive of this three-tier machinery is to protect consumer interests against various forms of exploitation such as sale of defective goods, improper services and unfair trade practices.


In the modern competitive market, consumer is regarded as the ________.
(a) King
(b) Agency
(c) Superintendent

ANSWER: Correct option-a

In the modern competitive market, consumer is regarded as the king.

Explanation:

In the modern competitive market, the producer always produces goods and services keeping in mind the needs and desires of consumers. Customer satisfaction is the main objective of every organisation. Thus, in modern times, consumer is regarded as the king of the market.

A District Forum can entertain the claims up to Rs ________
(a) 10 lakh
(b) 20 lakh
(c) 1 crore

ANSWER: Correct option-b

A district form can entertain the claims up to Rs 20 Lakh.

Explanation:

Those cases are taken to district courts in which the value of goods or services in question, along with the compensation that is claimed, is less than Rs 20 lakh. If the value in question exceeds Rs 20 lakh but is under 1 crore, the State Commission undertakes such cases. Also, if the value in question exceeds 1 crore, then the National Commission solves such cases.

State Consumer Dispute Redressal Commission is popularly known as ________.
(a) National Commission
(b) State Commission
(c) District Forum

ANSWER: Correct option-b

State consumer disputes redressal commission is popularly known as State Commission.

Explanation:

State governments have set up State Commissions for redressal of consumer grievances. Like District Forums, State Commissions also comprise a president and two or more members, one of whom should be a woman.

The President of State Commission is ________.

(a) District Court Judge
(b) Supreme Court Judge
(c) High Court Judge

ANSWER: Correct option-c

The President of State commission is high court judge.

Explanation:

The president of a State Commission is the person who is or had been a high court judge. He is appointed by the state government after consulting the Chief Justice of the High Court.

Amendments were introduced to Consumer Protection Act in the year 1993 and ________.

(a) 1998
(b) 2000
(c) 2002

ANSWER: Correct option-c

Amendments were introduced to consumer protection act in the year 1993 and 2002.

Explanation:

Two rights were introduced by the Amendment Act in 1993 and 2002. The first right is the right to be protected against unfair trade practices; the right was incorporated by the Amendment Act 1993. The second right is the right to be protected against spurious goods; the right was incorporated by the Amendment Act 2002.

Any person who does not agree with the decision of State Commission can appeal to the ________.

(a) Supreme Court
(b) High Court
(c) National Commission

ANSWER: Correct option-c

Any person who does not agree with the decision of State Commission can appeal to the National Commission.

Explanation:

In case the party filing the complaint is not satisfied with the order passed by the State Commission, it can file an appeal before the National Commission within 30 days of passing the judgement.

Right to ________ restricts monopolistic tendencies in the market.
(a) information
(b) choose
(c) safety

ANSWER: Correct option-b

Right to choose restricts monopolistic tendencies in the market.

Explanation:

The right to choose enables consumers to select from a variety of goods and services at competitive prices. The right ensures that the consumers are not compelled to purchase a good or service from only one seller. The consumer is free to choose the product he/she wants to buy from whichever place he/she prefers.

The Government has established ________ to settle the consumer disputes by compromise.
(a) Lok Adalat
(b) District Forum
(c) Supreme Court

ANSWER: Correct option-a

The Government has established Lok Adalat to settle the consumer disputes by compromise.

Explanation:

Lok Adalats have been established by the government to resolve cases that have been pending in the court for a long time. These Adalats resolve cases by the way of compromise and no court fee is charged.

National Commission has ________ members in addition to the president.

(a) 2
(b) 3
(c) 4

ANSWER: Correct option-c

National commission has 4 members in addition to the president.

Explanation:

The National Commission, a consumer dispute redressal forum, consists of a president and a minimum of four other members, one of whom should be a woman.

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