BUSINESS STUDIES

CH. 12 – CONSUMER PROTECTION

CASE STUDIES

Question 1.
Indian Youth Organisation (IYO) organized a visit of its members to an old age home to
inculcate the habit of social work among them. The visit revealed that the living
conditions of the inmates of the old age home were not hygienic. So, the IYO members
decided to clean the premises. During their cleanliness drive, they realized that the old
age home also required pest control. But some of the inmates of old age home were
reluctant for it because they believed that the pest control may create health problems
for them. IYO, therefore decided to provide ethical, safe and odorless pest control. They
showed to the inmates of old age home a pamphlet of the proposed pest control product
which promised easy, inexpensive and long-lasting pest control. The inmates happily
agreed and the pest control was carried out. It worked for a fortnight but to their dismay
the effect started wearing off. IYO contacted the pest control company which kept on
postponing their visit. After waiting for a month, IYO filed a cased in the consumer court.
The consumer court was satisfied about genuineness of the complaint and issued
necessary directions to the pest control company.

1. State the six directions that might have been issued by the court.
2. Also identify any two values that are being communicated by IYO to the society.

Question 2.
Ronit Raj, a marketing manager is a patient of diabetes for which he takes medicines
regularly. One day, on his tour to Patna, he met with an accident and was hospitalized.
Due to doctor’s negligence a delicate nerve of his right leg was cut rendering hum
crippled throughout his life. Identify the consumer right that has been violated by the
doctors under the Consumer Protection Act, 1986 in the above situation. 

Question 3.
Sirajuddin purchased a car for Rs. 15 lacs from an automobile company and found that
its airbags were defective. After many complaints with the company that went unheard,
he filed a case in the District Forum. He was not satisfied with the orders of the District
Forum. He then appealed before the State Commission and on being dissatisfied with
the orders of State Commission, he appealed before the National Commission.
Sirajuddin was not satisfied with the orders of National Commission. Suggest him the
highest authority where he could appeal against the decision of the National
Commission.

Question 4.
“Grahak Shakti”, an N.G.O. organized a workshop to discuss various issues relating to
consumers. During the discussion, one of the members drew attention towards
exploitation of consumers due to defective and unsafe products, adulteration, black
marketing, hoarding etc. To this another member argued that consumers themselves
are responsible as they do not raise collective voice against the exploitation. The
Chairperson of the organization was of the opinion that it was also the duty of the
businessman to take care of the interests of various stakeholders. Business
organizations earn money by selling goods and services to consumers. So the interests
of the stakeholders have to be well taken care of.
State three points that highlight the need for consumer protection as discussed in
“Grahak Shakti’s workshop. 

Question 5.
Manuj bought a packet of chips from a local shopkeeper and found that the ingredients
given on the label were not legible. He complained about it to the company. The
company sent a written apology stating that they will make sure that existing packets
are withdrawn from the market and new packets with legible labels are soon made
available. State the consumer right which Manuj exercised.

Question 6.
Suman bought a box of cheese of a reputed brand from a local shopkeeper. On opening
the box, she found a piece of stone in the cheese. She reported the matter to the
shopkeeper who forwarded her complaint to the concerned company. Within a week,
the representative of the company visited Suman’s residence with an apology and as a
replacement offered her a new cheese pack with four other varieties of cheese as
compensation for the inconvenience to her. State the consumer right with Suman
exercised. 

Question 7.
Manvendra always went to a specific shop to buy all consumable and non-consumable
goods. In this shop, a variety of products of different brands were displayed nicely and
the sales person available also gave good sales presentations if required. But this shop
was quite far-off from his residence. His friend Annant always wondered why
Manvendra wastes so much time in going to that shop whereas there were many big
brand shops situated near his residence having consumable and non-consumable
goods.
Annant asked Manvendra the reason of going to that particular shop. Manvendra said
that he was exercising one of his rights which he could not exercise in nearby big brand
shops. State the consumer’s right which Manvendra had exercised. 

Question 8.
Vasvi purchased a bottle of pickle from the local grocery shop. The information provided
on the bottle was not clear. She fell sick on consuming it. She filed a case in the District
Forum under the Consumer Protection Act and got the relief.

1. Identify the important aspect neglected by the marketer in the above case.
2. Explain briefly the functions of the aspect identified in (1) above 

Question 9.
Aman, a degree holder in Entrepreneurship came to know about Piplantri Village
located in Rajasthan, where in 2006 an initiative was started in which 111 trees are
planted every time a girl child is born.
To keep termites away from the trees the villagers have planted 2.5 million Aloe Vera
plants around the trees. This has turned the village into an oasis, as the planting of
trees led to higher water levels.
Aman decided to visit the village to start a business unit, for the processing and
marketing of Aloe Vera into juices, gels and other products.
However, on visiting the village Aman found that the villagers were suffering exploitation
at the hands of local merchants who were engaged in unscrupulous, exploitative trade
practices like hoarding and black marketing of food products and also selling unsafe
and adulterated products to the villagers.
After looking at their plight, instead of a business organisation, he decided to set up an
organisation for the protection and promotion of the consumer interest of the villagers.
State the functions that the organisation established by Aman will be performing. (Any
six points). 

Question 10.
Himesh, after completing his graduation, started working with a multinational company
in Delhi. But due to ill health of his parents, he had to go back to his village. There he
noticed that the villagers were literate but ignorant about their rights. Many vegetable
vendors
were using stones as weights to sell their vegetables. Some shopkeepers were selling
food items without having the ‘FPO Mark’. The villagers did not find anything wrong with
these practices. So, to create awareness among the villagers, Himesh decided to
publish a weekly journal ‘Jan Jagriti.’ State the right which Himesh has exercised by
doing so.

Question 11.
On Sonika’s birthday, her mother gave her a pair of gold earrings. After one month,
Sonika observed that the earrings were losing their shine. She checked the mark on the
earrings and found that it was not a proper Hallmark and her mother had been cheated
by the shopkeeper. So, she filed a complaint in the District Forum which rejected it. Not
satisfied by the decision of the district Forum, she was very much disturbed and after
two months, she decided to appeal further.
Can Sonika appeal against the decision of the district forum? Give reason in support of
your answer.

Question 12.
Himanshu purchased a new car from ‘Galaxy Motors’ for Rs. 25 lakh. He was offered
free insurance for the first year and three free servicing to be availed after the car had
covered 5,000 km, 10,000 km and 15,000 km, respectively. When Himanshu took the
car for the first free servicing, he was told that the car was not new and first service had
already been availed on this car. He felt cheated and filed a complaint in the State
Commission. Being not satisfied with the decision of the State Commission, after two
months he decided to file an appeal against it.
Can Himanshu appeal against the decision of the State Commission? Give reason in
support of your answer. 
Question 13.
Palak went to a shopkeeper to buy a hair oil. The shopkeeper forced her to buy a
particular brand of hair-oil out of various available brands, irrespective of the willingness
of Palak. Which right of Palak, as a consumer, has been violated? Name and explain
the right.

Question 14.
Harsh asked for a bottle of mineral water from a shopkeeper. The maximum retail price
printed on the bottle was Rs. 12 only whereas the shopkeeper was charging Rs. 35. In
spite of many arguments, the shopkeeper was not ready to sell the bottle for less
than Rs. 35. Harsh was in need of it and had no option except to buy. As an aware
consumer, name and explain the right which Harsh can exercise.

Question 15.
Anita purchased a book from Satish Book Store. While reading the book, she found that
sixteen pages were missing. She approached the seller of the book and complained
about the missing pages. The seller promised that if the publisher was ready to change
the book, he would change the same. After a week, the seller informed Anita that the
publisher had refused to change the book.
Where can Anita file a complaint against the seller of the book? Give reason in support
of your answer. Also explain who is a consumer as per “Consumer Protection Act
1986”. 

Question 16.
Prakhar purchased an ISI mark electric iron from Bharat Electricals. While using it, he
found that it was not working properly. He approached the seller and complained about
the same. The seller satisfies Prakhar by saying that he will ask the manufacturer to
replace the iron. The manufacturer refused to replace and Bharat Electricals decided to
file a complaint in the consumer court.
Can Bharat Electricals do this? Why? Also explain who is a consumer as per Consumer
Protection Act, 1986.

Question 17.
Reena purchased one liter of pure desi ghee from a shopkeeper. After using it, she had
doubts that it was adulterated. She sent it for a laboratory test which confirmed that the
ghee was adulterated. State any six reliefs available to Reena if she complains and the
consumer court is satisfied about the genuineness of the complaint to issue corrective
advertisement to neutralize the effect of a misleading advertisement.