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B.Com 1st Year The Consumer Protection Act 1986 Short Notes

B.Com 1st Year The Consumer Protection Act 1986 Short Notes :- This post is very useful for all the student. you will get full information Topic wise Chapter Wise Question Answer Salient features; Definition of consumer; Grievance redressal machinery. Notes

B.Com 1st Year The Consumer Protection Act 1986 Short Notes
B.Com 1st Year The Consumer Protection Act 1986 Short Notes

SHORT ANSWER QUESTIONS 

B.Com 1st Year The Consumer Protection Act 1986 Short Notes

Q.1. What is the meaning of consumer protection? Explain Consumer Protection Act, 1986.

Or Explain consumer protection. (2016)

Or What do you mean by consumer protection? What are the various types of consumer exploitations? (2015)

Ans. Consumer  protection means the protection of the consumers from their exploitation by the unfair trade practices of the producers/sellers. It means providing proper protection or fundamental rights and interests of the consumers, freeing them from exploitation, creating consumer awareness, consumer providing the right to clean business environment to the consumers by means of legal amendments. 

consumer Protection Act, 1986 is one of the most beneficial legislations of modern period and is intended to promote and protect the interest of consumers. This act provides inexpensive and expeditious remedies but also arms the forums constituted under the act with the power of enforcement of orders by coercive process by imposing imprisonment and fire. It is a milestone in the history of socio-economic legislation in the country and is one of the most progressive and the comprehensive piece of legislation enacted for the protection of consumer. 

Consumer Protection Act is the most progressive act of social welfare and is called as Magna Carta of consumer protection. It is a landmark event in the history of Acts in India. It is intended to protect the legitimate interests of the consumers against traders, suppliers, etc. Most of the consumers are small consumers who may not be educated or conversant with law. 

Types of Consumer Exploitations: Refer to Sec-A, Q.2.

Q.2. Explain the types of consumer exploitation. (2015)

Or What are the causes/types of consumer exploitation?

Ans. Consumers are exploited because of poverty, illiteracy, lack of education, lack of information, etc. They remain ignorant of their rights. Main causes or types of exploitation are as follows: 

1. Unfair Trade Practices: Trade community indulges itself in various trade activities so as to promote sales to supply certain goods and enhance their economic use or to provide some services. Unfair trade practices on the part of traders are: 

(a) Misleading and deceptive advertisements.

(b) Offering gifts and prices. 

2. Spiraling  Prices: Producers unduly hike the prices of their products that are followed by anti social activities like black marketing, hoarding, etc. 

3. Adulteration: Adulteration of goods are dangerous to life or hazardous to health. The traders resort to many devices for making high profits. 

4 Poor Ouality Products: Such products lead to a large number of deaths or injuries chased by the use of sub-standard and unsafe domestic products like cooking gas. 

5. Deceptive Packing: Such packings deceive customers either by changing spellings of the reputed brand. 

6. Underweight Suppliers: Many manufacturers exp underweight goods. 

because of undue delay by the courier Servic

7. Deficiency in Service: Consumers suffer due wrong billing and undue delay in handling over flats. 

8. Negligence in Service: It is another cause of consumer exploitation and many such incidents appear in the newspapers very often.

Q.3. What are the two levels of Consumer Protection Councils? 

Ans. Consumer protection councils are established to promote and protect the interests of the consumers and to advise the government in this regard. They have been established at the following two levels:

1. Central Consumer Protection Council: The main provisions regarding this council are as follows: 

(a) It is established by issuing a notification.

(b) It is composed of Minister-in-charge of consumer affairs in the Central Government and  official and non-official members. The council is composed of mainly 150 members.

(C) Duration of the council will be 3 years.

(d) Vacancies are filled by the representative of same class.

(e) Protection and promotion of rights of the consumers will be the objective of the council and these are similar to the rights mentioned in Consumer Protection Act as: 

(1) Right to secure protection from marketing of goods and services hazardous to life 

and property.

(ii) Right to be informal regarding quality, quantity, potency, purity, standard and price of goods and services.

(iii) Right to be assured of access to goods and services.

(iv) Right to consumer education. 

(v) Right to seek redressal against unfair trade practices.

2. State Consumer Protection Council: The provisions regarding this council are as under: 

(a) This council is established by State Government by notification.

(b) State council is composed of Minister-in-charge of consumer affairs in the State Government, official and non-official members as are determined by the State Government.

(c) State council can convene any number of meetings but at least two meetings held every year. 

(d) Objective of state councils is to protect and promote the rights of consumers of the state.

Q.4. What are the main provisions regarding District Forum?

Ans. Main provisions regarding District Forum are as follows: 

1. State Government may establish a consumer disputes Redressal Forum in each district of the state so as to redress the problems of consumer.

2. District Forum will be composed of: 

(a) A person having qualifications of district Judge is appointed as president. 

(bThere shall be two other members including one woman member. Each appointment is made by the selection committee composed of: 

(a) Chairman of the state commission as President,

(b) Secretary of law department of the state. 

(c) Secretary of Consumer Affairs Department.

3. Every member of the District Forum will hold office for 5 years or till the completion of 65 years of age whichever is earlier, he cannot be reappointed.

4. Any member can submit his resignation in writing to the State Government and on its acceptance, the office will fall vacant which will be filled by a person holding the same qualification.

5. State Government will prescribe the salary and other allowances payable to and the other terms and conditions of service of the members of District forum.

Q.5. What are the powers/rights of District Forum?

 Ans. Powers/rights of District Forum are as follows: 

1. Right to Call Witness: District Forum has the right to sum any dependant or witness and examine the witness on oath. 

2. Right to Discovery and Production of Evidence or Document: Every District Forum has this right. 

3. Right to Receive Evidence on Affidavits: Every District Forum has the right to receive er on affidavits. 

4. Right to Examine Witness: District Forum has the right to issue any summon for examining witness. 

5. Right to Requisition Test Report: Every District Forum has the right to requisition of test report from appropriate laboratory or from any other relevant source. 

6. Power in Other Prescribed Matters: Every District Forum have the same powers in other prescribed matters as are vested in a civil court. 

7. Judicial Powers: Every proceeding before the proceeding has written the meaning of Sections 193 and 228 of Indian Penal code and a civil court. 

8. Rights in Case of Complainants having Common Interests: District Forum can give its award on all such matters by a fixed date. 

9. Right to Requisition of Books, Documents, Account, etc.: District Forum can requisite any books, documents, amounts or directs any person to present them. 

10. Right to Get Information: District Forum can obtain relevant information from any person to achieve the objects of this act. 

11. Right to Search and Seize Documents and Articles: Ifany article is required in any proceeding. District Forum can search and seize the documents by issuing a direction. 

12. Right to Retain or Return the Seized Documents and Articles: District forum can order to retain or return documents, papers or articles to the concerned party, 

Q.6. What provisions have been made in Consumer Protection Act, 1986 regarding state commission? 

Ans. Following provisions have been made in Consumer Protection Act, 1986 regarding state commission: 

1. The State Government can’establish a Consumer Grievance Redressal Commission to be called state commission.

2. Each state commission shall consist of: 

(a) A member who has been a judge of high court shall be its president.

(b) Two other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience. Every appointment shall be made by selection committee composed of president, secretary of law department of state and secretary 

in-charge of department.

3. Salary and other allowance and other allowances shall be such as may be prescribed by the State Government.

4. Every member shall hold office for for a term of 5 years or upto the age of 67 years whichever is earlier. 

5. The state commission shall have jurisdiction to entertain complaints and appeals against the orders of any District Forum within the state. 

6. State Commission follows the same procedure for settlement of disputes as laid down in tations 12. 13 and 14 of the act for the disposal of complaints by the District Forum. 

7. When the office of the president of the District Forum or of the state commission is vacant. the duties of the office is performed by such a person who is qualified to be appointed as the president of the District Forum.

8. Any person aggrieved by an order made by the state commission may prefer an appeal against such order to the national commission within a period of 30 days from the date of the order.

 Q.7. Discuss the provisions of the Consumer Protection Act in respect of the national commission.

Ans. Following are the provisions of the Consumer Protection Act in respect of the national commission: 

1 set up a national commission by issuing a notification at New Delhi.

2. The national commission shall compose of: 

(a) A person who has been judge of the Supreme Court shall be appointed by Chief Justice of India shall be its President.

(b) There shall be four other members including one woman like having ability, integrity, experience or having capacity in dealing with problems related to economics, law, commerce, etc.

Every appointment shall be made by the Central Government on the recommendation of selection committee. 

3. The salary and other allowances and the other terms and conditions of service shall be such as may be prescribed by the Central Government.

4. Every member of the national commission shall hold office for a term of 5 years or upto the age of 70 years whichever is earlier.

5. The national commission shall have jurisdiction as: 

(a) To entertain complaints where the value of goods and services claimed exceeds rupees one crore.

(b) To entertain appeals against orders of any state commission.

(C) To call for the records and pass appropriate orders in any consumer dispute that is pending before or has been decided by state commission.

6. National commission adopts for the disposal of complaints the procedure that confirms to the rules made by the Central Government. The same procedure as followed by the District Forum in respect of redressal of grievance will also be followed by the national commission. 7. In case a person is aggrieved by any order made by the national commission he/she may prefer an appeal against such order to the Supreme Court within a period of 30 days from the date of the order.

Q.8. State the provisions of Consumer Protection Amendment Act, 2002.

Ans. Consumer Protection Amendment Act, 2002 has the following provisions: 

1. Increase in Financial Limit: District Forum shall entertain complaints when the value of goods or services and the compensation if any claimed does not exceed rupees twenty lakhs. 

The state commission shall entertain complaints where the value of goods or services and compensation exceeds rupees twenty lakhs but does not exceed one crore. National commission shall entertain complaints where the value of goods or services and compensation if any exceeds rupees one crore. 

2. Judgements Regarding Complaints: Such judgements are as follows:

(a) Time limit regarding filing of complaints, issuing notice to the opposite party, etc. has been prescribed 

(b) Unless sufficient cause is shown, no adjournment shall be ordinarily granted by the District Forum, the state commission or the national commission. 

(c) Opposite party is debarred from engaging any lawyer.

(d) Substitution of legal heir or representative as a party to the complainant in case of death of the complainant.

(e) Substitution of ‘Let the seller be Aware’ for ‘Buyer Beware’.

(f) Commercial and cooperative organisations have been entitled to pay a mate.

Q.9. What do you mean by relief available to a grieved consumer? 

Ans. Remedies or Available Relief: According to Consumer Protection Act, 1986, the Jurisdictional consumer Forum, i.e. the District, State or National Consumer Forum on arriving at a finding of defect in the goods may direct one or more of the following remedies to the aggrieved consumer: 

1. To remove the defect.

2. To replace the goods with new goods of similar description.

3. To return to complainant of the price.

4. To pay such amount as may be awarded as compensation to the consumer for the loss or injury suffered by the consumer due to the negligence of the opposite party.

5. To withdraw the hazardous goods from being offered for sale.

6. Not to offer the hazardous goods for sale.

7. To provide for adequate costs to parties.

8. To pay such sums as orders if injury or loss is suffered by a large number of consumers not identifiable conveniently.

9. To cease and desist manufacture of hazardous goods.

10. To discontinue the unfair trade practice or the restrictive trade practice or not to repeat them The Supreme Court of India has not provided any clear pronouncement till date on whether the liability under the CPA is strict or fault based. Nevertheless, to constitute a defect, a failure to conform to the standards required under any law, contract or representations of the trade is sufficient. 

Q.10. State the provisions of the Consumer Protection Act, 1986 relating to ‘Enforcement of order of the consumer forums’. 

Ans. Enforcement of Order of Consumer Forums: Regarding the enforcement of order of the District Forum, the state commission or the national commission provides as follows: 

1. Where an interim order made under this Act is not complied with the District Forum or the state commission or the national commission, as the case may be, may order the property of the person not complying with such order to be attached.

2. No attachment made under this section shall remain in force for more than 3 months at the end of which, if the non-compliance continues, the property attached may be sold and out of the proceeds there of, the District Forum or the state commission or the national commission may award such damages as it thinks fit to the complainant and shall pay the balance, if any, to the party entitled thereto.

3. Where any amount is due from any person under an order made by District Forum, state commission or the national commission, as the case may be, the person entitled to the amount may make an application to the concerned forum and such forum may issue a certificate for the int to the collector of the district and the collector shall proceed to recover the amount in the same manner as arrears of land revenue.

Q.11. State the provisions of the Consumer Protection Act, 1986 relating to the “Appeals against the orders of the forums’. 

Ans. Enforcement of Orders of the Forums: The provisions of the Consumer Protection Act, 1986 relating to the appeal against the order of the Forums are as follows: 

1. Appellate Power of the State Commission: Any person aggrieved by an order made by the District Forum may prefer an appeal against such order to the state commission within a period of 30 days from the date of order or within such extended time as the commission may allow. 

2. Appellate Power of the National Commission: Any person aggrieved by an order made by the State commission may prefer an appeal against such order to the National commission within a period of 30 days from the date of order. But no appeal by a person, who is required to pay any amount in terms of an order of the State commission, shall be entertained unless the appellant has deposited 50% of that amount or 35,000 whichever is less. 

3. Appeal to the Supreme Court: Any person aggrieved by an order made by the National commission may prefer an appeal against such order to the Supreme Court within a period of 30 days from the date of the order or within such time as the Supreme Court allows. 

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