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Tamilnadu Samacheer Kalvi 12th Commerce Solutions Chapter 16 Consumerism

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Samacheer Kalvi 12th Commerce Consumerism Textbook Exercise Questions and Answers

I. Choose the Correct Answer

Question 1.
The term ‘consumerism’ came into existence in the year ________
(a) 1960
(b) 1957
(c) 1954
(d) 1958
Answer:
(a) 1960

Question 2.
Who is the father of Consumer Movement?
(a) Mahatma Gandhi
(b) Mr. John F. Kennedy
(c) Ralph Nader
(d) Jawaharlal Nehru
Answer:
(c) Ralph Nader

Question 3.
Sale of Goods Act was passed in the year?
(a) 1962
(b) 1972
(c) 1982
(d) 1985
Answer:
(c) 1982

Question 4.
The main objective of all business enterprises is ________
(a) Providing service
(b) Providing better standard of life
(c) Providing necessities to the society
(d) Earn profit
Answer:
(d) Earn profit

Question 5.
The Consumer Protection Act came into force with effect from ________
(a) 1.1.1986
(6) 1.4.1986
(c) 15.4.1987
(d) 15.4.1990
Answer:
(c) 15.4.1987

Question 6.
________ of every year is declared as a Consumer Protection Day to educate the public about their rights and responsibilities.
(a) August 15
(b) April 15
(c) March 15
(d) September 15
Answer:
(c) March 15

Question 7.
Any person who buys any goods or avails services for personal use, for a consideration is called as ________
(a) Customer
(b) Consumer
(c) Buyer
(d) User
Answer:
(b) Consumer

Question 8.
The General Assembly of United Nations passed resolution of consumer protection guide lines on ________
(a) 1985
(b) 1958
(c) 1986
(d) 1988
Answer:
(a) 1985

II. Very Short Answer Questions

Question 1.
Who is a consumer?
Answer:
A consumer is one who consumes goods manufactured and sold by others or created (air, water, natural resources) by nature and sold by others.

Question 2.
Define Consumerism.
Answer:
“Consumerism is an attempt to enhance the rights and powers by buyers in relation to sellers”

Question 3.
Give two examples of adulteration.
Answer:

  1. Powdered rice / wheat is adulterated with starch.
  2. Coffee powder is adulterated with tamarind seed.

Question 4.
What is Caveat Emptor?
Answer:
‘Caveat emptor’ is a Latin term that means “let the buyer beware.” Similar to the phrase”sold as is” this term means that the buyer assumes the risk that a product fails to meet expectations or have defects.

Question 5.
What is Caveat Venditor?
Answer:
Today, most sales in the U.S. fall under the principle of caveat venditor, which means “let the seller beware” by which goods are covered by an implied warranty of merchantability.

Question 6.
Write a short notes on Consumer Protection Act, 1986.
Answer:
The Central Government enacted a comprehensive law called the Consumer Protection Act in 1986. This Act came into force with effect from 15.04.1987. This Act was further amended in 1993. The Act is referred in short as ‘COPRA’.

III. Short Answer Questions

Question 1.
Which are the three constituent elements of business?
Answer:
The producer, the consumer and the government are the three constituent elements of business. The consumer is the most exploited constituent in the business world.

Question 2.
What are the important legislations related to consumerism in India?
Answer:
Consumer Legislation:

  1. The Indian Contract Act, 1982
  2. The Sale of Goods Act, 1982
  3. The Essential Commodities Act, 1955
  4. The Agricultural Products Grading and Marketing Act, 1937
  5. The Prevention of Food Adulteration Act, 1954
  6. Weights and Measures Act, 1958
  7. The Trademark Act, 1999

Question 3.
What is meant by artificial scarcity?
Answer:
There are certain situations where the shop-keepers put up the board “No Stock” in front of their shops, even though there is plenty of stock in the store. In such situations consumers who are desperate to buy such goods have to pay hefty price to buy those goods and thus earning more profit unconscientiously.

Question 4.
Write the importance of consumerism.
Answer:
Importance of consumerism lies in:

  1. Awakening and uniting consumers
  2. Discouraging unfair trade practices
  3. Protecting against exploitation
  4. Awakening the government
  5. Effective implementation of consumer protection laws
  6. Providing complete and latest information
  7. Discouraging anti-social activities

Question 5.
What is the role of Government in consumer protection?
Answer:
Since most of consumers including academically educated are illiterate about their rights and hence passive. Government should assure an active role in safeguarding the consumers. Government both the central and the state have brought out a number of legislations to protect the interest of consumers across the country. Law enforcement authorities should see that penal clause is not mere paper jaws-they should sting the offenders mercilessly.

IV. Long Answer Questions

Question 1.
How consumers are exploited?
Consumer is one who consumes the goods manufactured or created. Consumers are exploited in many’ways in the business.
They are as follows:

  1. Selling at Higher Price: The price charged by the seller for a product or service may not be higher compared to the quality.
  2. Adulteration: It refers to mixing or substituting undesirable material in food. This leads to heavy loss to the consumer, (e.g.) Mixing of stones with grains.
  3. Duplicate or Spurious goods: Duplicate products of popular products are illegally produced and sold
  4. Artificial Scarcity: There are certain situations where the shop-keepers put up the board “No Stock” in front of their shops, even though there is plenty of stock in the store.
  5. Sub-standard: On opening a packet or sealed container one may find the content to be of poor quality.

Question 2.
Explain the role of business in consumer protection.
Answer:
Business enterprises should do the following towards protecting consumers.

  1. Avoidance of Price Hike: Business enterprises should desist from hiking the price in the context of acute shortage of goods.
  2. Avoidance of Hoarding: Business enterprises should not indulge in hoarding and black marketing to earn maximum profit.
  3. Guarantees for Good Quality: Business enterprises should not give false warranty for the products.
  4. Product Information: Business enterprises should disclose correct, complete and accurate information about the product viz. size, quality, quantity, weight etc.
  5. The in advertising: Business enterprises should not convey false, untrue, bogus information relating to the product through the advertisement.
  6. Money Refund Guarantee: Where the product becomes defective, business enterprises should replace it with new one or refund the purchase price.

Question 3.
What are the needs for consumer protection?
Answer:
Consumer is to be protected from the cheating business people. Though the consumer is said to be the king, his interests are neglected. Consumer protection is applicable to public sector, financial and co-operative enterprises. Recently even medical services have been brought under consumer-movement. Satisfaction and well being of the consumer should be the main objective of business. But in real practice consumer is not protected and safeguarded. Thus there is a need for consumer protection or movement.

Question 4.
Explain the role of consumers in Consumer Protection.
Answer:
Consumers have to be vigilant and organize themselves into a movement for concerned action.
Activation of Consumer Action Councils:

  1. Consumer action councils established at village levels should educate consumers.
  2. Consumer protection agencies should take necessary steps to investigate consumer complaints and grievances.
  3. Voluntary consumer groups should provide information so as to educate consumers.
  4. Consumer cooperatives need to be strengthened.
  5. Consumer groups should contact the legislators to raise the consumer issue in Assembly and Parliament.
  6. There should be testing laboratories at each district to test the purity of goods.

Question 5.
What are the objectives of Consumer Protection Act, 1986?
Answer:
The Central Government enacted a comprehensive law called the Consumer Protection Act in 1986. This Act came into force with effect from 15.04.1987. It is in short, called as ‘COPRA’.
Objectives:

  1. Consumer protection Act protects the interests of the consumers.
  2. This Act provides safeguards against defective goods and deficient services, untrade practices.
  3. It also gives settlement of consumer disputes.
  4. It is applicable to public sector, financial and co-operative enterprises.

Question 6.
Write about five important consumer legislations.
Answer:
To protect the consumers from the unfair traders, the government passed various legislative Acts.
They are follows:

  1. The Indian Contract Act, 1982 was passed to bind the people on the promise made in the contract.
  2. The Essential Commodities Act, 1955 protects the consumers against artificial shortages created by the sellers by hoarding the goods.
  3. The Prevention of Food Adulteration Act, 1954 checks the adulteration of food articles and ensures purity of goods supplied.
  4. Weights and Measures Act, 1958 protects the consumer against malpractices of underweight or under measurement.

Question 7.
What are the salient features of the Consumer Protection Act, 1986?
Answer:
Salient Features of The Indian Consumer Protection Act, 1986:

  1. Protecting consumers against products and services which are harmful to the health of the consumers.
  2. Ensuring consumers, with supply of goods at fair quality.
  3. Ensuring the availability of goods in correct quantity and right size.
  4. Protecting the consumers against pollution of various kinds.
  5. Ensuring that consumers are charged fair price.
  6. Protecting the consumers against unfair trade practices of unscrupulous trader.

Question 8.
What are the objectives of United Nations guidelines for consumer protection?
Answer:
The General Assembly of the United Nations passed a Resolution on April 9,1985 adopting a set of guidelines for consumer protection to persuade the member countries.

Objectives of United Nations Guidelines for Consumer Protection:

  1. To assist countries in achieving or maintaining protection to consumers.
  2. To facilitate production and distribution patterns responsive to the needs and desires of consumers.
  3. To encourage high levels of ethical conduct for production and distribution of goods and services to consumers.
  4. To facilitate the developing of independent consumer groups.
  5. To encourage the development of market conditions which provide consumers with greater choice at lower prices.

Samacheer Kalvi 12th Commerce Consumerism Additional Questions and Answers

I. Choosy the Correct Answer

Question 1.
Match List I with List II and select the correct answer using the codes given below:

(a) Prevention of Food Adulteration Act (i) 1958
(b) Weight and Measurement Act (ii) 1982
(c) Essential commodities Act (iii) 1954
(d) Sale of goods Act (iv) 1955

Codes:
Samacheer Kalvi 12th Commerce Solutions Chapter 16 Consumerism
Answer:
(c) (i) 3, (ii) 1, (iii) 4, (iv) 2.

Question 2.
The term ‘Caveat emptor’ is a Latin term, which means _________
(a) Let the seller beware.
(b) Let the buyer beware
(c) Consumer
(d) Marketer
Answer:
(b) Let the buyer beware

II. Very Short Answer Questions

Question 1.
What is meant by sub-standard according to the Consumer Protection Act?
Answer:
On opening a packet or sealed container one may find the content to be of poor quality. If defective or damaged items are found in a pack, a consumer finds it difficult to exchange the defective one for good one.

Question 2.
What is meant by consumer protection?
Answer:
Consumer protection is a form of social action which is designed to attain the wellbeing of the society namely consumers. A consumer is said to be a king in a free market economy.

III. Short Answer Questions

Question 1.
Write a short note on False Advertisements.
Answer:
The main motive of advertisements is to educate the consumers regarding various aspects of the products and services. Sometimes it makes false representation about the quality, price, grade, composition and utility of products. Often the products are not as attractive as shown in the advertisement by the sellers. Consumers who buy the products on the faith of claims made in advertisements are cheated.

Case Study

Mr. Narasimachary bought a refrigerator of a familiar brand with a warranty for seven years. He uses the fridge as per the guidelines given by the manufacturer. After the completion of two years the fridge went out of order. He was shocked, and approached the dealer. But the dealer refused to service the fridge at free of cost.

Question 1.
What is your suggestion to Mr. Narasimachary to this grievance?
Answer:
Each and every consumer should know the rights and duties of consumers, according to the consumer protection Act – 1986. In this case, the manufacturer refused to repair and service the fridge, though there is a warranty period. So my suggestion is that the consumer Mr. Narasimachary can contact the manufacturer again to repair the fridge. If he refuses, Mr. Narasimachary can file a case in the consumer court according to the Act 1986. For proceeding to the case, the consumer has to make ready the cash bill, invoice and warranty card of the fridge.

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