Updated on July 15, 2022, 8:25 AM
by Tiwari Academy
Class 12 Business Studies Chapter 12 MCQ and Important Questions of Consumer Protection updated for new session 2024-25. Students of Class 12 can take help in Business Studies Chapter 12 using these MCQ and extra question answers. Class 12 Business Studies Chapter 12 Solutions.
Class 12 Business Studies Chapter 12 MCQ
Q1
The new law relating to Consumer Protection is titled Consumer Protection Act
[A]. 1986
[B]. 2002
[C]. 2013
[D]. 2019
Answer: Option D
Explanation:
The latest amendment was made in 2019. The old Act of 1986 is no longer valid.
If a consumer after making the enquiry as given question 2 above gets a discount of 15%, What responsibility has been exercised by the consumer so as to get that discount?
[A]. Purchasing only standardized goods
[B]. Asserting himself to get a good deal
[C]. Showing honesty in dealings
[D]. Reading the package carefully
Answer: Option B
Explanation:
For consumer does not negotiate, he may have to purchase the goods at MRP. That is why it is his responsibility to strike a good deal.
The pet cat of Garima fell ill because the packaging of the food material serve to her did not mention the correct procedure of how to mx water with the solid food. Which right of the consumer was violated by the company?
[A]. Right to education
[B]. Right to Redressal
[C]. Right to information
[D]. Right to choose
Answer: Option C
Explanation:
Right to information includes the price quantity as well as method of use.
1. Consumers’ Ignorance: In order to save consumers from exploitation, consumer protection is needed.
2. Unorganised Consumers: In our country consumers are still unorganised and there is lack of consumer organisations also, thus consumer protection is required.
3. Widespread Exploitation of Consumers: Consumers are exploited on large scale by means of various unfair trade practices and consumer protection is required to protect them from exploitation.
Q5
According to recent amendment in Consumer Protection Act who is the highest authority for consumer redressal?
[A]. TRAI
[B]. IRDAI
[C]. IRCTC
[D]. CCPA
Answer: Option D
Explanation:
The full form of CCPA is Central Consumer Protection authority. The other options (a), (b) and (c) are unrelated to consumer protection.
Consumer Protection Act 1986 is about consumer rights and to provide them legal protection. According to it consumer is defined as follows:
1. Any person who buys any goods for a consideration. It includes any user of such goods with the approval of the buyer. But it does not include a person who obtains goods for resale or any commercial purpose.
2. Any person who avails any services for a consideration. It includes any beneficiary of such services but it does not include a person who avails such service for any commercial purpose.
Q9
Once a worm was found in noodles of a famous company and similarly insect was found in soft drink of a company. The consumer should exercise which right. So that in future health hazard is not caused to any consumer?
[A]. Right to safety
[B]. Right to Redressal
[C]. Right to information
[D]. Right to choose
Answer: Option A
Explanation:
The consumer should issue a notice, preferably a legal notice to the company to safeguard his right.
Mahendra invested a large amount to purchase a flat. He could not get possession of the flat as promised. He, therefore, filed a case with the state commission. Identify the right Act exercising by the consumer.
[A]. Right to safety
[B]. Right to Redressal
[C]. Right to be heard
[D]. Right to choose
Answer: Option C
Explanation:
Right to be heard means there should be some agency to look into the problem/Grievance of the consumer. It could be the department of a company or an appropriate firm under the 3-tier mechanism.
An insurance company was fined by the competent redressal forum for not sharing complete details at the time of proposal to issue a policy. Violation of what right of consumer lead to fine being imposed?
[A]. Right to safety
[B]. Right to Information
[C]. Right to be heard
[D]. Right to choose
Answer: Option B
Explanation:
It is the basic principle of insurance that there should be utmost good faith between the parties to insurance. The insurance company deliberately hid important information to get the policy.
A tech giant (large technological company) invested in constructing a hospital where treatment is free as a part of its corporate social responsibility. Why do you think the company did thus?
[A]. Legally required
[B]. Long – term interest of business is assured
[C]. Business uses society’s resources so they need to safeguard consumer’s interests.
[D]. All of the above.
Answer: Option D
Explanation:
It is but obvious that apart from Companies Act, it is a moral duty and in the interest of the company to serve the society.
Suppose water supply in a particular city is not up to the mark and people are getting bad quality water- but they are made to pay for that also. Will the organization supplying water (if it is government organization) be penalized for deficiency of service.
[A]. Yes
[B]. No
[C]. Can’t say
[D]. Depends upon the facts of the case
Answer: Option A
Explanation:
Since, the consumers are paying for it, there is a consideration (which could even be small. Hence, Consumer Protection Act be applicable).
Which function or functions do Consumer Protection organization carry out?
[A]. Filing complaints in appropriate consumer courts on behalf of the consumers.
[B]. Publishing periodicals to impart knowledge about consumer issues.
[C]. Providing legal assistance to consumers.
[D]. All of the above.
Answer: Option D
Explanation:
Mostly Indian consumers are unorganized and uneducated. Therefore, they need every kind of support from non-governmental organization and consumer association.
A consumer has the right to be compensated for any loss or injury caused to him if the fault lies with the seller or manufacturer. This is called right to redressal.
1. Educating the general public about consumer rights.
2. Publishing periodical and other publications to educate consumers.
3. Providing legal assistance to consumers.
4. Producing films on food adulteration, misuse of drugs and other similar facts.
5. Filing complaints in appropriate consumer courts on behalf of consumers.
6. Encouraging consumers to take on action against unfair trade practices.
7. Taking an initiative in filing cases in consumer courts.
Is there equal weightage to all MCQ?
Generally yes. However, sometimes some MCQs in competitive exams may carry more marks.
Is it sufficient to follow the MCQ given here for practice?
There no end to knowledge. Knowledge is like a see-fathomless/boundless. We have given adequate number of questions on our website. You are expected to revise the entire chapter before attempting the MCQs.
What is yet another precaution while attempting MCQ?
Sometimes the question will be framed in the following manner
Identify which among the following is not a consumer. Notice the use of the word not in the question. So observe the question carefully. Do not rush to answer the question.