Consumer Protection Act MCQ Quiz - Objective Question with Answer for Consumer Protection Act - Download Free PDF

The correct answer is 'Right to consumer education, Right to seek redressal, and Access to a variety of goods and services at competitive prices.'

Key Points

• Right to consumer education:
  • This right ensures that consumers are informed about their rights and responsibilities, and are educated on how to make informed decisions regarding the purchase and use of goods and services.
• Right to seek redressal:
  • Consumers have the right to seek redressal against unfair trade practices or exploitation. This includes the right to fair settlement of genuine grievances.
• Access to a variety of goods and services at competitive prices:
  • Consumers should have access to a wide range of goods and services at competitive prices, ensuring fair competition and the availability of choices.

Additional Information

• Take goods and services free of cost:
  • This is not a right under the Consumer Protection Act, 1986. Consumers are expected to pay for goods and services they purchase.
• Other rights under the Consumer Protection Act, 1986:
  • Right to be informed about the quality, quantity, potency, purity, standard, and price of goods to protect the consumer against unfair trade practices.
  • Right to be heard and to be assured that consumer interests will receive due consideration at appropriate forums.
  • Right to consumer safety, ensuring protection against the marketing of goods and services which are hazardous to life and property.

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The correct answer is 'The Consumer Protection Act, 2019'

Key Points

• The Consumer Protection Act, 2019:
  • The Consumer Protection Act, 2019 was enacted to replace the earlier Consumer Protection Act, 1986, and came into effect on July 20, 2020.
  • The 2019 Act aims to provide enhanced protection to consumers and address modern challenges, such as e-commerce and misleading advertisements, which were not adequately covered under the 1986 Act.
  • It introduced several new provisions, including the establishment of the Central Consumer Protection Authority (CCPA) to promote, protect, and enforce consumer rights.
  • The Act also incorporates provisions for product liability, mediation as an alternate dispute resolution mechanism, and stricter penalties for unfair trade practices.
  • One of the key features is the introduction of rules to regulate e-commerce platforms, ensuring transparency and accountability for online sellers.

Additional Information

• The Consumer Protection Act, 2017:
  • This option is incorrect as no Consumer Protection Act was enacted in 2017. The government was in the process of drafting a new consumer protection law during this period, but it was not finalized until 2019.
• The Consumer Protection Act, 2018:
  • This option is also incorrect. While discussions and preparations for revising the Consumer Protection Act were ongoing in 2018, the final Act was not passed by Parliament during that year.
• The Consumer Protection Act, 2020:
  • This option is incorrect. While the Consumer Protection Act, 2019 came into effect in 2020, the Act itself was enacted and passed in 2019, making '2019' the correct answer.

The correct answer is 'Consumer Disputes Redressal Forum, Consumer Disputes Redressal Commission, and National Consumer Disputes Redressal Commission.'

Key Points

• Overview of Consumer Protection Act, 1986:
  • The Consumer Protection Act, 1986, was introduced to safeguard consumer interests and establish mechanisms for addressing consumer grievances effectively.
  • Under this Act, a three-tier quasi-judicial machinery was created to provide simple, speedy, and inexpensive redressal to consumer disputes.
• Consumer Disputes Redressal Forum (District Forum):
  • It operates at the district level and addresses complaints where the value of goods/services and compensation claimed does not exceed ₹20 lakh (now revised under the Consumer Protection Act, 2019).
  • It is the first point of contact for consumer grievances.
• Consumer Disputes Redressal Commission (State Commission):
  • It operates at the state level and handles cases where the value of goods/services and compensation claimed exceeds ₹20 lakh but does not exceed ₹1 crore (now revised under the 2019 Act).
  • It also hears appeals against the orders of the District Forum.
• National Consumer Disputes Redressal Commission (NCDRC):
  • The NCDRC operates at the national level and deals with cases where the value of goods/services and compensation claimed exceeds ₹1 crore (now revised under the 2019 Act).
  • It also hears appeals against the orders of the State Commission.

Additional Information

• Explanation of Incorrect Options:
  • Consumer Disputes Redressal Committee: No such entity exists under the Consumer Protection Act, 1986. The Act only mentions Forums and Commissions for redressal of consumer disputes.
  • National Disputes Redressal Committee: This is an incorrect name. The correct body is the National Consumer Disputes Redressal Commission (NCDRC).
• Consumer Protection Act, 2019:
  • The Consumer Protection Act, 1986, was replaced by the Consumer Protection Act, 2019, which made several amendments, including new thresholds for financial jurisdictions and the introduction of additional mechanisms like the Central Consumer Protection Authority (CCPA).

The correct answer is Option 1.

Key Points To arrange the provisions of the Consumer Protection Act, 2019 in the correct chronological order, let's refer to the relevant sections of the Act:

1. Central Consumer Protection Council (Section 4)
   The Act establishes the Central Consumer Protection Council (CCPC) under Section 4, which functions as an advisory body at the national level, focusing on the protection and promotion of consumer rights.

2. District Consumer Protection Council (Section 8)
   Section 8 introduces the District Consumer Protection Council, which serves as an advisory body at the district level to address local consumer issues and ensure the Act’s implementation at a more localized level.

3. Central Consumer Protection Authority (Section 10)
   Following the councils, the Central Consumer Protection Authority (CCPA) is established under Section 10. This regulatory body is empowered to promote, protect, and enforce the rights of consumers, along with addressing unfair trade practices and misleading advertisements.

4. Investigation Wing (Section 15)
   Under Section 15, the Act sets up an Investigation Wing within the CCPA to enforce compliance and investigate any violation of consumer rights. This wing plays a crucial role in examining cases and complaints filed with the authority.

5. Consumer Mediation Cell (Section 74)
   Finally, Section 74 provides for the establishment of Consumer Mediation Cells to facilitate out-of-court dispute resolution. These cells aim to promote amicable settlements and speed up the dispute resolution process through mediation.

The chronological order of the provisions in the Consumer Protection Act, 2019, based on the relevant sections, is: B, A, C, D, E

The correct answer is: Option 1: B, A, C, D, E

The correct answer is 'right to be heard'

Key Points

• Right to be heard:
  • This right ensures that consumers have the ability to express their concerns and grievances before appropriate forums or authorities.
  • It is essential for the protection of consumer interests and ensures that their voices are considered in decision-making processes.
  • Authorities are obliged to listen to consumer complaints and take necessary actions to address them.

Additional Information

• Right to be informed:
  • This right ensures that consumers are provided with all necessary information regarding products or services, including quality, quantity, potency, purity, standard, and price.
  • It helps consumers make informed decisions but does not specifically address the ability to present concerns before authorities.
• Right to safety:
  • This right protects consumers from goods and services that are hazardous to their health and life.
  • It focuses on the safety and protection of consumers but does not involve the process of presenting grievances.
• Right to be educated:
  • This right ensures that consumers are educated about their rights and responsibilities.
  • It aims to empower consumers with knowledge but does not directly relate to presenting concerns before authorities.

The correct answer is Option 4.

Key Points

• Period of Limitation under the Consumer Protection Act, 2019:
  • The period of limitation to file a complaint before a Commission under the Consumer Protection Act, 2019 is 2 years from the date on which the cause of action arises.

Additional Information

• Option 1 (30 days):

  • Incorrect because 30 days is not the prescribed period of limitation for filing a consumer complaint.

• Option 2 (60 days):

  • Incorrect because 60 days is not the prescribed period of limitation for filing a consumer complaint.

• Option 3 (1 year):

  • Incorrect because 1 year is not the prescribed period of limitation for filing a consumer complaint.

• Option 4 (2 years):

  • Correct because the Consumer Protection Act, 2019 specifically states that a complaint must be filed within 2 years from the date on which the cause of action arises.

The correct answer is Option 4.

Key Points According to Section 2(1)(d) of Consumer Protection Act, 1986 provides “consumer” means any person who,—

• (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
• (ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purpose;

Explanation.— For the purposes of this clause,"commecial purpose" does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment;

The correct answer is Option 1.

Key Points To arrange the provisions of the Consumer Protection Act, 2019 in the correct chronological order, let's refer to the relevant sections of the Act:

1. Central Consumer Protection Council (Section 4)
   The Act establishes the Central Consumer Protection Council (CCPC) under Section 4, which functions as an advisory body at the national level, focusing on the protection and promotion of consumer rights.

2. District Consumer Protection Council (Section 8)
   Section 8 introduces the District Consumer Protection Council, which serves as an advisory body at the district level to address local consumer issues and ensure the Act’s implementation at a more localized level.

3. Central Consumer Protection Authority (Section 10)
   Following the councils, the Central Consumer Protection Authority (CCPA) is established under Section 10. This regulatory body is empowered to promote, protect, and enforce the rights of consumers, along with addressing unfair trade practices and misleading advertisements.

4. Investigation Wing (Section 15)
   Under Section 15, the Act sets up an Investigation Wing within the CCPA to enforce compliance and investigate any violation of consumer rights. This wing plays a crucial role in examining cases and complaints filed with the authority.

5. Consumer Mediation Cell (Section 74)
   Finally, Section 74 provides for the establishment of Consumer Mediation Cells to facilitate out-of-court dispute resolution. These cells aim to promote amicable settlements and speed up the dispute resolution process through mediation.

The chronological order of the provisions in the Consumer Protection Act, 2019, based on the relevant sections, is: B, A, C, D, E

The correct answer is: Option 1: B, A, C, D, E

The correct answer is 'right to be heard'

Key Points

• Right to be heard:
  • This right ensures that consumers have the ability to express their concerns and grievances before appropriate forums or authorities.
  • It is essential for the protection of consumer interests and ensures that their voices are considered in decision-making processes.
  • Authorities are obliged to listen to consumer complaints and take necessary actions to address them.

Additional Information

• Right to be informed:
  • This right ensures that consumers are provided with all necessary information regarding products or services, including quality, quantity, potency, purity, standard, and price.
  • It helps consumers make informed decisions but does not specifically address the ability to present concerns before authorities.
• Right to safety:
  • This right protects consumers from goods and services that are hazardous to their health and life.
  • It focuses on the safety and protection of consumers but does not involve the process of presenting grievances.
• Right to be educated:
  • This right ensures that consumers are educated about their rights and responsibilities.
  • It aims to empower consumers with knowledge but does not directly relate to presenting concerns before authorities.

The correct answer is '6 rights [Section 2(9)]'

Key Points

• Consumer Protection Act, 2019:
  • The Consumer Protection Act, 2019, was enacted to provide better protection of consumer interests and to establish authorities for timely and effective administration and settlement of consumer disputes.
  • Under Section 2(9) of the Act, consumers are entitled to six rights.
• Six Rights of Consumers:
  • The right to be protected against the marketing of goods, products, or services which are hazardous to life and property.
  • The right to be informed about the quality, quantity, potency, purity, standard, and price of goods, products, or services.
  • The right to be assured, wherever possible, access to a variety of goods, products, or services at competitive prices.
  • The right to be heard and to be assured that consumer interests will receive due consideration at appropriate forums.
  • The right to seek redressal against unfair trade practices or restrictive trade practices or unscrupulous exploitation of consumers.
  • The right to consumer awareness.

Additional Information

• Other Options:
  • 5 rights (Section 17): This is incorrect as Section 17 does not pertain to consumer rights but to the establishment of the Central Consumer Protection Authority (CCPA).
  • 7 rights (Section 14): This is incorrect as Section 14 deals with the powers of the district commission and not consumer rights.
  • 8 rights (Section 3): This is incorrect as Section 3 describes the application of the Act and does not enumerate consumer rights.

The correct answer is 'District Collector'

Key Points

• District Consumer Protection Councils:
  • These councils are established under the Consumer Protection Act, 1986, to promote and protect the rights of consumers at the district level.
  • The primary objective of these councils is to address consumer grievances and ensure the enforcement of consumer rights.
• Role of the District Collector:
  • The District Collector is the chairperson of the District Consumer Protection Councils.
  • As the chairperson, the District Collector presides over council meetings and ensures the implementation of council decisions.
  • The position of the District Collector as chairperson ensures that the council has the necessary administrative support and authority to function effectively.

Additional Information

• Other Options Explained:
  • District judge of the concerned district: While a district judge has significant judicial responsibilities, they are not designated as the chairperson of the District Consumer Protection Councils under the Consumer Protection Act, 1986.
  • Any person appointed by the High Court of the concerned state: The High Court does not appoint the chairperson of the District Consumer Protection Councils. This option is incorrect as per the provisions of the Act.
  • Any member of Parliament elected from the concerned state: Members of Parliament have legislative roles and are not involved in the administrative functioning of district-level consumer protection councils.

Hint

Correct Answer: Minister in charge of Department of Consumer Affairs in the Central Government.
Explanation: The Central Consumer Protection Council is a vital body established under the Consumer Protection Act. Its primary role is to advise the government on consumer-related policies and issues. The chairperson of this council is indeed the Minister in charge of the Department of Consumer Affairs in the Central Government. This position allows for direct governmental oversight and ensures that consumer rights are a central focus of policy-making.
Incorrect Options:
Retired judge of the Supreme Court of India: This option is incorrect because, while retired judges often head commissions or panels due to their legal expertise, the Central Consumer Protection Council is more policy-oriented and directly connected to the administration of consumer affairs, making a minister the more appropriate choice for its leadership.
President of India or his nominee: This option is not correct because the President of India, being the ceremonial head of the state, does not directly engage in administrative roles such as heading the Central Consumer Protection Council. The President's involvement in such specific administrative functions is limited.
Head of Competition Commission of India: This option is also incorrect. The Competition Commission of India deals with issues related to market competition and antitrust laws, which is a different domain from consumer protection. While both bodies aim to ensure fair practices, their focuses and leadership structures are distinct.
In summary, the leadership of the Central Consumer Protection Council by the Minister in charge of the Department of Consumer Affairs ensures that there is a direct link between consumer protection policies and the governmental department specifically responsible for such affairs, facilitating efficient and responsive governance in the area of consumer rights.

Key Points The Consumer Protection Act, 2019, indeed talks about modern concepts such as direct selling, e-commerce, and electronic service providers which were not specifically addressed in the Consumer Protection Act, 1986. The inclusion of these areas in the Consumer Protection Act, 2019, reflects the changing landscape of consumer transactions and the need to adapt legal frameworks to protect consumer rights in the digital and direct selling arenas. Hence, Options 1 and 3 are both accurate statements, making Option 4 the correct comprehensive answer.

Key Points
Statement (A) List of empanelled mediators: This document is crucial for a Mediation Cell as it provides a record of all mediators that are available and qualified to facilitate the mediation process. It ensures transparency and allows for the selection of appropriate mediators for different cases. Hence, Statement A is correct.
Statement (B) List of all cases handled by the cell: Keeping a detailed list of all cases handled by the Mediation Cell is essential for maintaining records, tracking progress, and evaluating the effectiveness of mediation processes over time. This documentation also aids in accountability and future reference. Hence, Statement B is correct.
Statement (C) Records of all proceedings: Recording the proceedings of each mediation session is fundamental for ensuring that all discussions and agreements are documented. This serves as evidence of what transpired during mediation and is crucial for enforcing agreements and for review in case of disputes. Hence, Statement C is correct.
Statement (D) Information specified by regulations: Mediation Cells are required to adhere to specific regulations that may mandate the documentation of certain information. This can include confidentiality agreements, ethical guidelines, and other regulatory requirements. Keeping such information ensures compliance with legal and ethical standards. Hence, Statement D is correct.
In conclusion, all the statements (A), (B), (C), and (D) are essential documents that a Consumer Mediation Cell must hold to operate effectively, transparently, and in accordance with regulatory requirements. Therefore, the correct answer is option 4: (A), (B), (C) and (D).

Key Points

Correct Answer: National Commission
Explanation: Section 53 of the Consumer Protection Act, 2019, mandates the establishment of the National Consumer Disputes Redressal Commission, which is to be referred to as the "National Commission." This body is the apex consumer disputes redressal commission in India, tasked with addressing grievances and disputes at a national level, ensuring the protection of consumer rights.
Summary: The Consumer Protection Act, 2019, clearly designates the establishment of the National Consumer Disputes Redressal Commission and refers to it as the "National Commission," making it the correct terminology. Other options deviate from the official naming convention either by misidentifying the body as a council or by inaccurately inserting or omitting words from the official title.