NCERT Solutions Class 12 Business Studies Chapter 12

Extramarks’ NCERT solutions Class 12 Business Studies Chapter 12 covers all aspects of Consumer Protection principles and theory. Extramarks subject matter experts have created the NCERT solutions Class 12 Business Studies Chapter 12 in simple language with point-by-point explanations to help students grasp the concepts easily.

Key areas covered in NCERT solutions Class 12 Business Studies Chapter 12 are Importance of Consumer Protection, Legal Protection to Consumers, Consumer Rights, Consumer Responsibilities, etc.

Students can access a variety of additional study tools on the Extramarks website in addition to the NCERT Solutions. Students get access to all materials, including NCERT books, CBSE revision notes, CBSE sample papers, CBSE previous year question papers, and so on.

Key Topics Covered In NCERT Solutions Class 12 Business Studies Chapter 12

Following are the key topics covered in NCERT Solutions Class 12 Business Studies Chapter 12- Consumer Protection.

Importance of Consumer Protection

Legal Protection to Consumers

Consumer Rights

Consumer Responsibilities

Ways and Means of Consumer Protection

Redressal under the Consumer Protection Act

Consumer Organisations and NGOs

Here’s the detailed information on each subtopic in NCERT Solutions Class 12 Business Studies Chapter 12 Consumer Protection.

Importance of Consumer Protection

Consumer protection refers to the process of informing and educating customers about their rights and duties, as well as supporting them in finding remedy for their complaints and grievances. Both consumers and companies require consumer protection.

Importance Of Consumer Protection

NCERT Solutions Class 12 Business Studies Chapter 12 by Extramarks provides a deep insight into the importance of Consumer protection.

From the Consumer’s point of view:

Unorganised Consumers: In India, consumers are still unorganised, and few consumer organisations are advocating for them.
Widespread Exploitation of Consumers: Consumers are harmed on a massive scale as a result of a range of unfair commercial practices, and consumer protection is required to protect them.
Consumer Ignorance: Because the majority of customers are uninformed of their rights and remedies, they are frequently exploited. Consumer protection is essential to safeguard customers from such unethical tactics.

From a business point of view:

Social Responsibility: Owners, workers, the government, and consumers are just a few stakeholders to whom a company has social responsibilities. As an outcome, consumers should be able to buy high-quality items at a reasonable price.
The business utilises societal resources: Every business makes use of social resources, and it is its responsibility to consider and act in the best interests of society.
Government intervention: The government will take action against a corporation if it participates in any form of unfair commercial practices, which will affect the company’s reputation.
Long-term business interests: It is in the company’s best interests to keep its consumers satisfied. To win the global competition, customers must be happy. Repeat purchases from satisfied customers assist in growing the company’s client base.
Moral justification: Any company has a moral duty to operate in its customers’ best interests and to avoid exploitation, and unfair trade practices, including defective and harmful products, adulteration, false and misleading advertising, hoardings, black marketing, and so on.

Legal Protection to Consumers

NCERT Solutions Class 12 Business Studies Chapter 12 explains how consumers are protected by the following legal framework:

The Indian Contract Act, 1872:

The Indian Contract Act of 1872 establishes the conditions for a contract signed by the parties to be valid and the remedies available in the event of a contract violation.

The Sale Of Goods Act, 1930:

The Act provides buyers with a number of safeguards and advantages in relation to the sale of goods agreement.

The Essential Commodities Act, 1955:

Profiteers, hoarders, and black marketers are prohibited from participating in anti-social behaviour under this Act. Its purpose is to preserve control over essential commodity production, supply, and distribution.

The Agricultural Produce Act, 1937 (Grading and Marketing):

The Act specifies grading standards for agricultural and animal products.

Adulteration Act, 1954:

The Adulteration Act of 1954 was created to protect public health by preventing the adulteration of food items and preserving their purity.

The Standard Of Weights and Measures, 1976:

It safeguards clients against under-weighting or under-measurement.

The Trades Mark Act, 1999:

The use of misleading markings on products is prohibited under this Act.

The Competition Act, 2002:

If businesses engage in unethical behaviour, the Act protects consumers.

The Bureau of Indian Standards Act, 1986:

The Bureau’s principal responsibilities include developing quality standards for goods and certifying them using the BIS process.

Consumer Rights

The Consumer Protection Act gives consumers six rights. Extramarks NCERT Solutions Class 12 Business Studies Chapter 12 explains the following rights of a consumer:

Right to Safety: Every customer has the right to be protected against goods and services that jeopardise their lives, health, or property.
Right to be Informed: The customer has the right to get comprehensive information about a product before acquiring it, including information on its quality, quantity, ingredients, purity, and price.
Right to Choose: A customer has the right to choose from a wide selection of reasonably priced goods and services. The customer, in other words, has a right to a varied selection of items at reasonable and competitive costs.
Right to be Heard: If a consumer has a problem or is displeased with a product or service, they have the right to make a complaint.
Right to Seek Redressal: A customer has the right to seek restitution and compensation if they have been exploited.
Consumer Education: Throughout their lives, consumers have the right to study and be well-informed. If the goods or service does not fulfil his expectations, he should be notified of his rights and remedies.

Consumer Responsibilities

In addition to the rights to defend themselves against exploitation, a consumer has several responsibilities. Some of a consumer’s responsibilities as per Extramarks NCERT Solutions Class 12 Business Studies Chapter 12 are as follows:

Awareness: A customer should be knowledgeable about the many products and services accessible. As a result, he is in a position to make an educated and intelligent decision.
Seeking Quality Marks: Consumers should constantly seek for quality certification markings like ISI in the case of electrical goods, AGMARK in the case of agricultural goods, and so on before purchasing items.
Requesting Cash Memo: Consumers should always seek cash notes or bills when acquiring products and services. The bill acts as proof of purchase and can be referred to in the event of a dispute.
Reading Labels: Price, weight, and expiration date are all included on product labels. The buyer must carefully study these labels before acquiring the items.
Honest Transactions: Consumers should always choose lawful transactions over illicit ones, such as black marketing and hoarding.
Ensure Safety: A customer must carefully study the manufacturer’s manuals and directions to ensure that the product is used safely. The instructions for an electrical item, for example, must be thoroughly studied before use.
Complaint Filing: A complaint must be made in the proper venue if the product is determined to be faulty or if the product’s quality is lacking.

Ways and Means of Consumer Protection

The goal of consumer protection can be accomplished in a variety of ways, about which the students can learn from NCERT Solutions Class 12 Business Studies Chapter 12.

Self-regulation by Business: Enlightened businesses recognise that providing excellent customer service is their long-term interest. Socially responsible businesses adhere to ethical norms and procedures when engaging with clients.
Consumer Awareness: A well-informed consumer can speak out against unfair commercial practices and unethical exploitation if he is aware of his rights and the remedies accessible to him.
Business Associations: Associations such as the Federation of Indian Chambers of Commerce (FICCI) and the Confederation of Indian Industries (CII) have established codes of conduct for their members to follow while interacting with clients.
Consumer Organisations: They play a vital role in informing consumers about their rights and protecting them. These organisations have the power to compel businesses to prevent consumer abuse and malpractice.
Government: By establishing different policies, the government can defend the interests of consumers.

Redressal under the Consumer Protection Act

The Extramarks NCERT Solutions Class 12 Business Studies Chapter 12has been curated by the subject experts providing students with notes on redressals under the consumer protection act.

Who can file a complaint under CPA, 2019:

a customer; or
any volunteer consumer organisation that is currently registered under any legislation; or
the government of the United States or any state government; or
the Central Government; or
one or more customers, if there are a large number of consumers who have a common interest; or
in the event of a consumer’s death, his legal heir or representative; or
In the event of a minor, the consumer’s parent or legal guardian.

Redressal Agencies:

According to the Customer Protection Act of 2019, there is a three-tier procedure for handling consumer complaints:

District Forum: A President and two additional members make up the District Forum, one of whom should be a woman. The respective state government appoints them. When the value of the products or services in issue and the compensation sought do not exceed rupees twenty lakhs, a complaint can be registered with the relevant District Forum. After evaluating the laboratory results and hearing the person against whom the complaint is lodged, the District Forum will issue an order. If the unhappy party is not satisfied with the District Forum’s decision, he may file an appeal with the State Commission within 30 days after the decision.
State Commission: A President and at least two additional members, one of whom should be a woman, make up each State Commission. The relevant state government appoints them. When the value of the products or services in issue and the compensation sought exceeds rupees twenty lakhs but not exceeding Rs. 1 crore, a complaint can be filed with the relevant State Commission. Appeals against District Forum orders can also be brought to the State Commission. After evaluating the laboratory report and hearing the person against whom the complaint is lodged, the State Commission will issue an order. If the unhappy party is not satisfied with the State Commission’s decision, he may file an appeal with the National Commission within 30 days of the decision.
National Commission: A President and at least four additional members make up the National Commission, one of whom should be a woman. The government of the United States appoints them. When the value of the products or services in issue and the compensation sought to exceed Rs. 1 crore, a complaint can be filed with the National Commission. Appeals against State Commission orders can also be made with the National Commission. After evaluating the laboratory report and hearing the party against whom the complaint is lodged, the National Commission will issue an order.

Consumer Organisations and NGOs

Consumer groups and non-governmental organisations (NGOs) play a critical role in safeguarding and promoting consumer interests. Among the main NGOs and consumer groups are the Consumers’ Association, Consumer Coordination Council, Consumer Protection Council, Common Cause, and others. The functions that these organisations conduct in order to defend the interests of consumers as per Extramarks NCERT Solutions Class 12 Business Studies Chapter 12 are listed below:

Consumer Education: NGOs and consumer organisations teach consumers about their rights through various training programmes and workshops.
Journal Publishing: They produce magazines and periodicals to spread information and increase awareness about a variety of consumer concerns, legal remedies, and other relevant matters.
Legal Assistance: Consumers can also get legal help from them, and they can help them seek proper remedies.
Encouraging Consumer protest against exploitation: They encourage customers to resist any exploitation or unfair trade practices.
Complaint Assistance: They urge customers to make complaints in proper channels and will even file complaints on their behalf.
Taking Charge: They encourage customers to register complaints and take the lead in filing lawsuits in the public interest.
Product Quality Testing: They carry out quality testing in laboratories on a variety of items and publish the findings.

NCERT Solutions Class 12 Business Studies Chapter 12 Consumer Protection NCERT Solutions

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By referring to Extramarks NCERT Solutions Class 12 Business Studies Chapter 12, students can easily understand the topics covered in Consumer Protection.

Key Features of NCERT Solutions Class 12 Business Studies Chapter 12

Students must study all previous concepts in order to do well in the exam. As a result, NCERT Solutions Class 12 Business Studies Chapter 12 provides detailed answers to all questions. Some of the compelling reasons for you to choose Extramarks are:

By laying a foundation and explaining the chapter’s fundamental principles, the answers help eliminate the student’s doubts and hurdles.
All solutions are formed keeping in mind the guidelines laid by NCERT.
The solutions are prepared by experts in the field of Business Studies.

Q.1 Under which consumer right does a business firm set up consumer grievance cell?

Ans. Right to be Heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells.

Q.2 Which quality certification mark is used for agricultural products?

Ans. The quality mark provided under the Act is known as “AGMARK” is used for quality certification mark for agricultural products.

Q.3 What is the jurisdiction of cases that can be filed in a State Commission?

Ans. This is established by the State Government in the state. Only those complaints can be filed with State Commission where the value of goods or services and compensation claimed is between twenty lakhs to one crore. Also, appeals against the orders of any District Forum can be filed before the State Commission.

Q.4 State any two relief available to consumers under CPA.

Ans. Relief available:

To replace the defective product with a new one, free from any defect.
To pay a reasonable amount of compensation for any loss or inquiry suffered by the consumer due to the negligence of the opposite party.
To refund the price paid for the product, or the charges paid for the services.

Q.5 Name the component of product mix that helps the consumer to exercise the right to information.

Ans. Quality certification of the product helps the consumer to exercise the right to information.

Q.6 Enumerate the various Acts passed by the Government of India which help in protection of consumers’ interests.

Ans. Various Acts passed by the Government of India which help in protection of consumers’ interests are:

Consumer Protection Act, 1986
Contract Act 1872
Sales of Goods Act, 1930
Agriculture Produce Act, 1937
Prevention of Food Adulteration Act, 1954
Essential Commodities Act, 1955

Q.7 What are the responsibilities of a consumer?

Ans. A consumer should keep in mind certain responsibilities while purchasing, using and consuming goods and service.

The responsibilities that consumer needs to exercise while purchasing the ornaments are:

Should buy only standardized goods as they provide quality assurance.
Should read labels carefully so as to have information about prices, weight, manufacturing etc.
Should ask for cash memo on purchase of goods and services as it serves as a proof of the product.
Should learn about the risk associated with products and services and follow manufacturer’s instructions and use the products safely.

Q.8 Who can file a complaint in a consumer court?

Ans. The following persons can file a complaint under Consumer Protection Act, 1986:

A consumer;
Any recognised voluntary consumer association whether the consumer is a member of that association or not;
The Central or any State Government;
One or more consumers, on behalf of numerous consumers having common interest;
Legal heir or representative in case of death of a consumer.

Q.9 FSSAI (Food Safety and Standards Authority of India) has made a proposal for hotels and other food outlets to declare the kind of oil/fat used in cooking each of the food items on their menus. Name and explain the Consumer Right being reinforced by this proposal.

Ans. The consumer right being reinforced by this is ‘Right to be informed’.

The consumer has a right a complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc. It is because of this reason that the legal framework in India requires the manufactures to provide such information on the package and label of the product.

Q.10 Who is a consumer as per CPA?

Ans. A consumer is one that buys good for consumption and not for the resale or commercial purpose.

Q.11 Explain the importance of consumer protection from the point of view of a business.

Ans. Consumer protection is important for businesses due to following reasons:

Long term interest: It is the businesses’ long term interest to satisfy their customers. Satisfied customers lead to repeat sales, goodwill and thus lead to profit maximisation for the firm.
Business uses society’s resources: Business have a responsibility to supply such products and render such services which are in public interest.
Social responsibility: Business has social responsibility towards different interest groups, mainly consumers. Business needs to supply good quality products and reasonable prices to consumers.
Moral Justification: It is the moral duty of any business to take care of consumer interests and avoid any form of exploitation. Business must avoid any unscrupulous and unfair trade practices for their own interests.
Government Intervention: A business engaging in exploitative trade practice would attract government intervention, which can spoil the image of business. Thus, it should voluntarily not resort to such practices.

Q.12 Explain the rights and responsibilities of consumer?

Ans. According to the provisions of the act consumers have been granted following six rights:

Right to safety: Certain goods may cause serious injuries. If there is any manufacturing defect in the goods, consumers have right to be protected against these fatal risks. The consumers protection act safeguards consumers’ interest.
Right to be informed: A consumer has the right to be informed about the quality, quantity and price of the product. He should also be informed about the ingredients of the product, date of manufacture and expiry, method of use, side effects of the commodity and precautions to be undertaken. The information should be written on the package or on the separate piece of paper.
Right to choose: The consumer has the right to choose the product of his choice out of the alternative products available. Manufacturers should offer a wide variety of products in terms of quality, brand, size, etc, so that consumers can make their choice.
Right to be heard: Every consumer must be granted right to be heard. He must be assured that its complaints and grievances about the product and services will be heard and attention paid to it.
Right to seek redressal: Consumers have the right to get their claims settled in their favour in case of being cheated and exploited by the producer. The government has set up many consumer courts for this specific purpose.
Right to consumer education: The consumer must be educated about the rights, he has been granted by the law to protect his interest.

A consumer should keep in mind the following responsibilities:

Be aware about various goods and services available in the market.
Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark, FPO mark, Hallmark, etc.
Learn about the risks associated with products and services and follow manufacturer’s instructions.
Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.
Assert yourself to ensure a fair deal.
Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding, etc.
Ask for a cash memo on purchase of goods or services.

Q.13 What are various ways in which the objective of consumer protection can be achieved?

Ans. Ways in which the objective of consumer protection can be achieved are:

Consumer education: A consumer must be aware and educated about his rights and responsibilities. He must also be aware of relief available.
Formation of business associations: Associations such as FCCI and CII should be formed.
Self regulation by business: A business must realise that interest of consumers should be kept in mind at all the stages of product development and selling.

In India, several consumer organisations and non-governmental organisations (NGOs) have been set up for the protection and promotion of consumers’ interests. Consumer organisations and NGOs have undertaken various activities as part of the consumer movement.

They perform several functions like:

Creating awareness about consumer rights and educates the general public about consumer problems and remedies through seminars, workshops and training programmes.
Providing legal aid to consumers by way, of assistance in seeking legal remedy.
Filing complaints in relevant consumer courts n behalf of consumers and undertaking advocacy of consumers’ point of view as representative members of consumer protection councils and others official boards.
Arranging comparative testing of consumer products through their own testing apparatus or accredited laboratories so as to evaluate the relative qualities of competing brands and publish the test results for the benefit of consumers to become informed buyers.
Publishing periodicals and journals to disseminate information among readers about consumer problems, legal reporting and other emerging matters of interest.

Q.14 Explain the redressal mechanism available to consumers under the Consumer Protection Act, 1986.

Ans. Following are three redressal forums set up to deal with consumer grievances and disputes:

District Forum:

This is established by the State Government in each district. The salient features of this Forum are as under:
It shall consist of a chairman and two members appointed by the State Government.
Only those complaints are filed where the value of goods or services and the compensation claimed is less than rupees twenty lakhs.
The consumer to whom the goods are sold or delivered can file a complaint.
The District Forum has to refer the complaint to the opposite party concerned, and send the sample of goods for testing in a laboratory.

State Commission:

This is established by the State Government in the state. The salient features of State Commission are as under:
It shall consist of a President who either is or has been a Judge of a High Court and two other Members. All the three shall be appointed by State Government.
Only those complaints can be filed where the value of goods or services and compensation claimed is between rupees twenty lakhs and rupees one crore. Also, appeals against the orders of any District Forum can be filed before the State Commission.

National Commission:

This is established by the Central Government. The salient features of the Commission are as under:
It shall consist of a President who either is or has been a Judge of a Supreme Court and four other members. All shall be appointed by the Central Government.
All complaints pertaining to those goods or services and compensation whose value is more than rupees one crore can be filed. Also, appeals against the order of any State Commission can be filed before the National Commission.

The relief available to the consumers is in the form of directions which can be issued by the Consumer Court, against the seller/manufacturer:

To remove the defects in goods or deficiency in service.
To replace the defective product with a new one.
To refund the price paid for the product or charges paid to the service.
To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
To discontinue the unfair/ restrictive trade practice and not to repeat it in future.
To withdraw the hazardous goods for sale.
To cease manufacture of hazardous goods and to desist from offering hazardous services.
To issue corrective advertisement to neutralize the effect of a misleading advertisement.

Q.15 Explain the role of consumer organisations and NGOs in protecting and promoting consumer’s interest.

Ans. In India, several consumer organisations and non-governmental organisations (NGOs) have been set up for the protection and promotion of consumers’ interests. Consumer organisations and NGOs have undertaken various activities as part of the consumer movement.

They perform several functions like:

Creating awareness about consumer rights and educates the general public about consumer problems and remedies through seminars, workshops and training programmes.
Providing legal aid to consumers by way, of assistance in seeking legal remedy.
Filing complaints in relevant consumer courts n behalf of consumers and undertaking advocacy of consumers’ point of view as representative members of consumer protection councils and others official boards.
Arranging comparative testing of consumer products through their own testing apparatus or accredited laboratories so as to evaluate the relative qualities of competing brands and publish the test results for the benefit of consumers to become informed buyers.
Publishing periodicals and journals to disseminate information among readers about consumer problems, legal reporting and other emerging matters of interest.

Q.16 Mrs. Mathur sent a jacket to a laundry shop in January 2018. The jacket was purchased at a price of ₹4,500. She had previously sent the jacket

for dry cleaning with Shine Dry Cleaners and the jacket was cleaned well. However, she noticed that her jacket had white discoloration marks when she collected the jacket this time. On informing the dry cleaner, Mrs. Mathur received a letter confirming that discolouration indeed appeared after the jacket was dry cleaned. She contacted the dry cleaner multiple times and requested for compensation for discoloured jacket but to no avail. Upon Consumer court’s intervention, Shine Dry Cleaners agreed to compensate ₹2,500 to Mrs. Mathur for the discoloured jacket.

a. Which right was exercised by Mrs. Mathur at the first instance?

b. Name and explain the right which helped Mrs. Mathur to avail the compensation.

c. State which consumer responsibility has been fulfilled by Mrs. Mathur in the above case.

d. State any other two responsibilities to be assumed by the consumers

Ans.

Right to seek Redressal right was exercised by Mrs. Mathur at the first instance.

The consumer has a right to get relief in case the product or service falls short of his expectations. The consumer Protection Act provides a number of reliefs to the consumers including replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer, etc.

c) Mr. Mathur file a complaint in an appropriate consumer forum in case of a shortcoming in the quality of service availed.

Consumer responsibilities:

Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.

Buy only standardised goods as they provide quality assurance. Thus look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewellery, etc.

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Related Chapters

Chapter 1 - Nature and Significance of Management

Chapter 2 - Principles of Management

Chapter 3 - Business Environment

Chapter 4 - Planning

Chapter 5 - Organising

Chapter 6 - Staffing

Chapter 7 - Directing

Chapter 8 - Controlling

Chapter 9 - Financial Management

Chapter 10 - Financial Markets

Chapter 11 - Marketing

Chapter 13 - Entrepreneurship Development

FAQs (Frequently Asked Questions)

1. What does Consumer Protection refer to?

2. What are the Redressal agencies?

According to the Customer Protection Act of 2019, there is a three-tier procedure for handling consumer complaints:

District Forum
State Commission
National Commission

NCERT Solutions Class 12 Business Studies Chapter 12