Importance of Consumer Protection for CLAT - Practice Questions & MCQ

Passage 7

Read the passage and answer the questions that follow. 

Consumers are an integral part of society. But the importance of consumers was only recognized in primal societies but with the advent of time, Consumers became a victim of exploitation. With the evolution of unfair trade practices, the introduction of consumer rights also became necessary. Consumer Rights and Responsibilities are intertwined together. Consumer Rights tend to safeguard consumer interests. Consumer protection rules are built on the premise that consumers are the weaker party to the transaction, but consumers’ responsibilities are evident too. The second face of the coin lends a duty on the consumers also. In a major case, the State of UP & Ors v All UP Consumer Protection bar Association, the Supreme Court of India had asked Centre to frame rules for the effective implementation of the Consumer Protection Act. The Rulings like these are intended to empower the consumers. To safeguard the interest of the consumers, consumer rights were introduced. Consumer’s rights in the contemporary world are very well defined and effectively implemented. The awareness relating to consumer rights has been properly spread by the respective governments of the countries. In the Western world people are well aware of the matter of their rights as a consumer as compared to the people of countries like India and other developing Countries like Sri Lanka, Bangladesh etc. Only the educated class knows their rights as a consumer but on the other hand, the poor and uneducated class is still unaware of the rights provided to them.

The Consumer Protection, 1986 Act is regarded as the Magna Carta in the field of consumer protection for checking ‘defects in goods’ and ‘deficiencies in services’ as far as India is concerned which is now substituted by a new legislation the Consumer Protection Act, 2019. Apart from the rights incorporated with the consumers against the unprofessional trade activities of the sellers, the consumers are also vested with some responsibilities. These responsibilities are not clearly defined in any statute, but it is upon the conscience and knowledge of the consumers as to how they should act in a responsible manner. Consumers’ responsibilities are often referred to the acts of awareness among consumers. It refers to the responsibility to speak out, and to inform manufacturers and governments of needs and wants and the Responsibility to Complain or inform businesses along with other people about discontentment with a product or service in an honest way.

Question:

From the following, identify the options which led to the introduction of consumer rights in India.

(1) When the scholars in India recognized the importance of consumer activism.

(2) When the Planning Commission backed the foundation of the Indian Association of Consumers in 1956.

(3) The fact that Indian traders believed in using the policy of honesty even in the Vedic period.

Passage 7

Read the passage and answer the questions that follow. 

Consumers are an integral part of society. But the importance of consumers was only recognized in primal societies but with the advent of time, Consumers became a victim of exploitation. With the evolution of unfair trade practices, the introduction of consumer rights also became necessary. Consumer Rights and Responsibilities are intertwined together. Consumer Rights tend to safeguard consumer interests. Consumer protection rules are built on the premise that consumers are the weaker party to the transaction, but consumers’ responsibilities are evident too. The second face of the coin lends a duty on the consumers also. In a major case, the State of UP & Ors v All UP Consumer Protection bar Association, the Supreme Court of India had asked Centre to frame rules for the effective implementation of the Consumer Protection Act. The Rulings like these are intended to empower the consumers. To safeguard the interest of the consumers, consumer rights were introduced. Consumer’s rights in the contemporary world are very well defined and effectively implemented. The awareness relating to consumer rights has been properly spread by the respective governments of the countries. In the Western world people are well aware of the matter of their rights as a consumer as compared to the people of countries like India and other developing Countries like Sri Lanka, Bangladesh etc. Only the educated class knows their rights as a consumer but on the other hand, the poor and uneducated class is still unaware of the rights provided to them.

The Consumer Protection, 1986 Act is regarded as the Magna Carta in the field of consumer protection for checking ‘defects in goods’ and ‘deficiencies in services’ as far as India is concerned which is now substituted by a new legislation the Consumer Protection Act, 2019. Apart from the rights incorporated with the consumers against the unprofessional trade activities of the sellers, the consumers are also vested with some responsibilities. These responsibilities are not clearly defined in any statute, but it is upon the conscience and knowledge of the consumers as to how they should act in a responsible manner. Consumers’ responsibilities are often referred to the acts of awareness among consumers. It refers to the responsibility to speak out, and to inform manufacturers and governments of needs and wants and the Responsibility to Complain or inform businesses along with other people about discontentment with a product or service in an honest way.

Question:

As per the author, the campaign of “Jaago Grahak Jaago” was initiated by the government to primarily promote which of the following responsibilities of a consumer under the consumer protection law?

What is the principal-agent problem in corporate finance?

Imagine you run a small toy store, and a competitor has recently started selling counterfeit versions of popular toys identical to the ones you sell. These counterfeit toys are of inferior quality and may pose safety risks to children.What action should you take to address this situation and combat unfair trade practices?

You notice that a toy you bought for your child has small parts that could be a choking hazard. What's the best course of action?