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ASSIGNMENT-1
TMA-1

Course Code: ACS-01

Assignment Code: Asst-1/ TMA-1/2019
Total Marks: 100

Answer all questions in each category. Write answers in your own words.

DCQ: Answer in about 500 words each. (2x20=40 Marks)

1. Discuss various dimensions of Consumer Environment.

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2. Discuss in detail the Consumer Movement in Europe.
3. Discuss in detail the six Consumer Rights provided under the Consumer Protection Act, 1986.

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4. Discuss in detail the interrelationship between Ecology, Environment and the Consumer.

MCQ: Answer in about 250 words each. (4x10=40 Marks)

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5. Who is a Consumer? Discuss the Characteristics of ‘Consumer Buying’.
6. Write a note on ‘Consumer Responsibility’.
7. Write a note on History and Growth of Consumer Movement in India.
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8. Write a note on ‘Why the Consumer needs Protection’.
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9. Discuss the salient features of ‘Perfect Competition’.

10. Write a note on ‘Social Objectives and Responsibility’.
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SCQ: Answer in about 50 words each (4x5=20 Marks)

11. Discuss in brief the role of Consumer in Market Economy.
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12. Discuss in brief the factors responsible for attitudinal changes.

13. Write a note on ‘The Consumer Manifesto’.
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14. Discus in brief the impact of Mass Media and Advertisement on Consumers.
15. Discuss in brief the ‘Role of Trade and Industry’.
16. Write a note on ‘Consumer Education and Market Regulated Economy’.

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Assignment-2
TMA-2

Course Code: ACS-01

Assignment Code: Asst-2/ TMA-2/2019
Total Marks: 100

Answer all questions in each category. Write answers in your own words.

DCQ: Answer in about 500 words each. (2x20=40 Marks)

1. Discuss and define the term ‘Unfair Trade Practice’ alognwith decided case laws on Misleading

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Advertisement and False Representation.
2. Discuss in detail the remedies available for negligence in ‘Banking Service’.
3. Discuss in detail ‘Institutional Assistance’ available for redressal of Consumer Grievances in

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India.
4. Discuss in detail various ‘Activities of an Organisation’ dealing with Consumer Problems and
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issues.

MCQ: Answer in about 250 words each. (4x10=40 Marks)

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5. Discuss the Limitations of the Consumer Protection Act, 1986 and difficulties faced in its
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implementation.
6. Highlight the difference between ‘Condition’ and ‘Warranty’.
7. Discuss the important provisions of Drugs and Cosmetics Act, 1940.
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8. Discuss in brief the Consumer Disputes Redressal Agencies created under the Consumer
Protection Act, 1986.
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9. Discuss the strategies of effective ‘Campaign and Advocacy Programmes’.

10. Discuss the meaning of Consumer with the help of decided case laws.
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SCQ: Answer in about 50 words each (4x5=20 Marks)

11. Write a note on ‘Duties of Consumers as a Corollary to Consumer Right’.
12. Discuss in brief the important provisions of ‘Sale of Good Act, 1930’.
13. Discuss a case law against Misleading Advertisement.
14. Discuss the manner of taking cognizance of PIL.
15. Discuss in brief the concept and ‘structure of an Organisation’.
16. Discuss in brief the structure and purpose of Consumer International (CI).

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ASSIGNMENT REFERENCE MATERIAL (2018-19)

ACS-01

CONSUMER STUDIES

ASSIGNMENT-1

DCQ: Answer in about 500 words each.

Q1. Discuss various dimensions of Consumer Environment.

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Ans. Totality of economic factors, such as employment, income, inflation, interest rates, productivity,
and wealth, that influences the buying behavior of consumers and firms.

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a) Income: Income is a primary economic influence determining the consumption expenditure of
individuals. The personal disposable income is the amount of money people are left with after paying
the taxes. Although money income per capita has grown steadily in most economies, real income
levels have not increased substantially due to a fall in the purchasing power of money. Consumers, on
yh a.
the basis of income, are grouped as upper-class, middle class, working class and the low income
groups. In India, there exist considerable disparities in the income and wealth distribution. Increases
in income influence the buying habits of the consumer. To quote Engle’s law, “As family income
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rises the percentage spent on food declines and the percentage on other categories (clothing,
recreation, health, education) and savings increases.”
k
ba

b) Savings and Debt: Consumer expenditures are also affected by savings and debt patterns. In India,
people hold savings in the form of bank saving accounts, bonds, shares, real estate, jewellery and
other assets. These savings are a major source of financing purchases. Consumers can increase their
purchasing power also through borrowing. ‘The availability of consumer credit due to the
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development of banking and financial institutions has been major contributor to the growth of the
Indian market. It has enabled people to buy more than their current income or salaries thus creating
more jobs and still more income and more demand.
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c) Product Considerations: A product can be defined as anything that can be offered to a group of
consumers for attention, acquisition, use or consumption that might satisfy a need or a want. It
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includes physical objects, services, persons, places, organizations and ideas. Products are packaged
and labeled and various customer services may be offered along with the product. All these criteria
exert a considerable collective influence on buyers. Brand names, for example, tell the buyer
something about product quality. Brand names also increase the shopper’s efficiency and help to call
consumers attention to new products that might benefit them. Packaging which imparts benefits such
as protection, economy and convenience, also influence buyers’ decisions.

d) Price Considerations: Inspite of the increased role of non-price factors in influencing consumer
behavior, price remains an important factor. The consumer decides whether the price is right for the
product a company is selling. The consumer, before purchasing, weighs the price against the
perceived values of using the product. Consumers differ in the values they assign to different product
features and marketers often vary their pricing strategies for different consumer segments. Sales at
concessional price, price reductions, discount offers and free gifts are commonly used as sales
promotion tools by marketers. Consumers sometimes defer purchases to avail of price reductions
during an off-season sale. Advertisements today have an important influence on consumers.

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Advertising has emerged as a potent promotional tool in enhancing sales of existing products and
introducing new products. Companies use advertising to increase the awareness of consumers through
the communication of persuasive information about their products, services or organizations.

e) Influence of Technology: The most dramatic force shaping people’s consumption is perhaps
technology. Technology has released wonders such as penicillin, open heart surgery and the birth
control pill. It has released forces of change in production processes and nature of products. It has
revolutionaries the world of media entertainment and communication. Many of today’s common
products were not available a hundred years ago. The consumer today, is, therefore, constantly
subjected to the advent of new products, which claim features of greater efficiency, comfort, speed
and reliability. The consumer today has not only a wider range of products to choose from; he also has
an enhanced variety and brands of products available for purchase.

Q2. Discuss in detail the Consumer Movement in Europe.

Ans. Though Consumer Co-operatives had great success in Europe, this did not result in formation of

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consumer organization. Basically, industrialization did not lead to the same degree of affluence in
Europe as in the United States.

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Consumer movement in Europe was fostered by the ‘Consumers’ Union’. More specifically, by the
constant efforts of Colston Worne. As early as 1939, he started to make enquiries about groups and
individuals that he might try to interest. In London he was referred to as the Householders’
Association. But he was disappointed. People were not at all enthusiastic about testing. It took another
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two decades for U.K. to provide a congenial environment for consumer movement.

Consumer movement in England began in a real sense only after the Second World War. The
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common law did protect the consumer against aggressive selling, fraud and breach of promise. The
British national Standard Institute in U.K. played a significant role in arousing the interest of the
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consumers in 1945. Many consumer magazines and shoppers’ guides were published to educate the
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consumers. Consumer Associations came into existence to expose undesirable as well as defective
products.

It was Dorothy Goodman, an American living in London who along with Ray Goodman and Michael
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Young, founded the Consumers’ Association (first called the ‘Association for Consumer Research’) in
1956. The first issue of its magazine ‘Which’ appeared in October 1957. Gradually, consumer
organizations, began to take shape in other countries.
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Before 1960, three major organization had been founded in Europe: ‘Consumer Tehand’ in the
Netherlands, the ‘Union Belge des Consummateurs’ (now the ‘Association des Consommateurs’)in
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Belgium and ‘Union Federale de la Consommation’ in France. All began publishing information for
and about consumers, including reports on products they had tested themselves.

A consumer awakening of similar type also appeared in Netherlands in 1926. Between 1947 and
1957, there was consumer revolution in Denmark, Federal Republic of Germany, Switzerland, Japan,
Kenya, France, Hungary, Italy, Canada and Belgium.

Press campaigns in favour of the consumer in these counties played a significant role in the creation
of the concept of consumerism. Women’s organizations in these countries have been a mainstay of the
consumer movement.

Poland was the first country in Eastern Europe to have independent consumer organizations,
‘Consumer Federation’ was set up in 1981 and ‘Polish Home Economics Association’ in 1990, Now,
there are many organization, awaiting registration; One is the ‘Association of Polish Consumers’. The
objective of the organization is awareness generation among consumers of rights to safety, healthy,

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information and education and protection of economic and legal interests. It has planned several
campaigns on misleading advertisements, against tobacco advertising and to make banks more
consumer friendly.

The strongest organizations in the pacific area perhaps were, in Australia and New Zealand. The
Australian movement was independent and received no government money. A Local Consumer
Movement existed in leading Australian cities. New South Wales and Victoria had consumer councils.
New Zealand Consumer Institute, on the other hand, was supported with government finance. The
pattern of consumer protection in Europe bears a remarkable similarity to the U.S. experience.
Industrialized nations in both the continents generated extensive brand name advertising and were
faced with many of the same problems of packaging and of ensuring the purity of food and drugs. The
idea of supporting the consumer with results of product testing by brand name crossed the Atlantic
after World War II. Starting with Great Britain, the Netherlands, and Belgium, it spread to
Scandinavian countries, Austria, West Germany and France and then to Australia, Japan and Israel.

Initially, European Consumer Groups feared the legal consequences of publishing adverse test results

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by brand name, even though this had never proved a problem in the U.S. Nevertheless, the movement,
once started, spread so rapidly that in April 1960, the IOCU (International Organization of Consumer
Union) now known as C.I. (Consumer International) was launched at a conference in the Hague. The

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charter members were the ‘Consumers Union’ of U.S. inc., ‘Consumers’ Association’, London;
‘Australian Consumers’ Association’, ‘Consumerton Bond, The Hague and ‘The Association des
Consummateurs’, Brussels. The C.I. sought to become an authenticating body that would admit to
membership only those organizations that accepted no income from advertising and were financially
yh a.
supported either by consumers or govt. It stimulated interchange of techniques, test results and
educational material among its affiliates. It also moved to assist consumers in less developed
countries. At present, it has 203 consumer groups as members in more than 80 countries.
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Q3. Discuss in detail the six Consumer Rights provided under the Consumer Protection Act,
1986. k
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Ans. The Consumer Protection Act enshrines six rights of the consumers. These are the Right to
Safety, Information, Choice, Be Heard, Redressal and Consumer Education.
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1) Right to Safety

The Right to Safety means the right to be protected against the marketing of goods and services which
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are hazardous to life and property. What is required here is that the purchased goods (or services)
should meet the needs of safety. Can you recollect some cases where this right of consumers was
violated?
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You hire a taxi or an auto rickshaw or decide to travel by a bus. The operator of that vehicle has not
bothered about the mechanical fitness and worse, enroute the vehicle meets with an accident due to
faulty breaks.

Here the injury caused to you or any passenger is a case of violation of consumer right to safety. You
or any other injured passenger is, therefore, entitled to compensation. Similarly an electric iron
causing electric shock, negligence by a doctor while performing an operation, a driver of a bus driving
the bus dangerously are the other examples of violation of this right.

2) Right to be Informed

Many a time you purchase a medicine. The medicine may be apparently to cure a disease. But there is
a possibility of it proving to be harmful to certain persons in certain cases. Or a medicine having same
contents might have been manufactured by different companies under different brand names and

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priced differently. In the first case if you do not know the harmful side effects of the medicine and
consume it, what will be the result? In the second case you do not know the availability of different
brands of medicine and are made to buy one which you cannot afford.

3) Right to Choose

This Right means the right to be assured, wherever possible, of access to a variety of goods at
competitive prices. In other words, a buyer has a right to buy a product of his/her choice and get
satisfaction out of a number of products available in terms of quality and price of goods. A
shopkeeper cannot force or impress upon a customer to buy a particular brand or a type of product. In
case a particular product is manufactured by only one producer, that is a monopoly product, then this
Right means assurance of a satisfactory quality and service at a fair price. This also includes Right to
basic goods and services. This is because unrestrained Right of the minority to choose can mean a
denial for the majority of its fair share.

4) Right to be Heard

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The Right to be heard means that consumers’ interests will receive due consideration at appropriate
forums. It also includes Right to be represented in various forums formed to consider the consumer’s

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welfare. For the exercise of this right both the State and the voluntary agencies are supposed to
provide necessary forums. The social accountability of producers also demand to provide such forums
in the shape of grievance redressal or customer service departments or wings.
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5) Right to Seek Redressal

This Right provides for the Right to seek redressal against unfair trade practices or unscrupulous
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exploitation of consumers. It also includes Right to fair settlement of the genuine grievances of the
consumer.
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ba

6) Right to Consumer Education

This Right encourages you to acquire the knowledge and skill to be an informed consumer throughout
life. As we have already seen ignorance of consumers particularly the rural consumers of their Rights
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is mainly responsible for their exploitation. So, consumers should know of their rights and must
exercise them willingly. To ensure this, availability of information at various levels and through
various means is essential. Consumer Protection Act itself’ provides the Right to consumer education.
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Therefore it becomes the duty of the government to keep consumers informed of their rights.

Q4. Discuss in detail the interrelationship between Ecology, Environment and the Consumer.
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Ans. Twentieth century saw developments in all spheres of human activity. Scientific and industrial
progress changed and altered life-styles and attitudes in radical ways. Man’s relationship with his
environment had been undergoing changes to the detriment of the latter. The causes of which were,
burgeoning populations, and economic strategies which controlled, manipulated and exploited the
environment for short terms immediate profit of a limited number of people. This process dislocated
indigenous communities which had evolved time tested survival strategies in relationship to the
environment.

All these put unprecedented pressure on natural resources in the environment as well as other life
forms in the eco-system. In the earlier decades of the century, as urbanization expanded and cities
grew, the market place also underwent drastic changes. Man grew away from his natural environment
and pushed away forests, cut down mountains, changed the course of rivers, built dams and dumped
huge amount of toxic and bio-degradable wastes all over the planet. The market grew and expanded to

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bring the fruits of the earth to the consumer’s doorstep. All this involved transportation, shelf life,
packaging and processing which altered production and consumption patterns.

International concern over the state of environment was expressed in 1972. The United Nations held a
conference on ‘The Human Environment” from 5th to 16th June. This conference popularly known as
the Stockholm Conference (1972) was attended by delegates from 113 states and by 450 NGOs. Since
Stockholm Conference, continuous scientific research has further established the intricate link
between various environmental problems, impact of economic activity on environment and their
interdependence. In 1992 the UN again held a conference at Rio de Janeiro, Brazil. It was called the
“United Nations Conference on Environment was formalized. This conference discussed the issues of
ozone depletion, global warning, deforestation and loss of biological diversity which have emerged as
the major environmental problems.

Ozone Depletion: Ozone is a protective layer in the atmosphere that prevents the harmful ultraviolet
rays of the sun from reaching the earth. Due to the use of some ozone depleting chemicals, industries
mainly Chloro-fluoro-carbons (CFC), British scientists documented the existence of a large hole over

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the Ozone layer in the Antarctica, in 1982.

Global Climate Change: Global warning or Green House Effect is defined as the rise in the average

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temperature of the world due to the increase in the level of atmospheric carbon dioxide. The level is
steadily increasing due to various human activities especially due to industries and burning of fossil
fuels. If the current level of CO2 emitted into the atmosphere remains the same, then the earth’s
global mean temperature would rise by about 1 C by 2025 AD. Green House effect would raise the
yh a.
sea levels by about 20 cms by the year 2050 and 65 cms by the year 2100. This would spell trouble
for millions of people in low-lying coastal areas and low lying islands such as the Maldives would
disappear.
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Deforestation: The issue of deforestation and its consequences is more obvious due to its direct
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impact on local environment. It is the root cause of many severe environmental problems like
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increased floods and droughts, situation of rivers and estuaries, destruction of fish breading areas and
marine habitats, and the threat to the survival of millions of people would wide whose livelihood are
sustained by forests.
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Loss of Bio-diversity: Bio-diversity indicates all the organisms from terrestrial, marine and aquatic
ecosystems. They are the sources of numerous resources like food, fibre, timber and drugs. The
various natural products from these eco-systems and the diverse biological species have high
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economic value. Though the financial benefit from an ecosystem is very evident, it is extremely
difficult to quantify every economic benefit from bio-diversity, making it difficult to assess its overall
economic value. Due to these reasons and uncertainties, it has been very difficult to conserve the
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ecosystems and their biological diversity. Most of the developing counties have lost more than 50% of
their original habitat and the tropical forests, which support well over half the planet’s species in
about 6% of the global land area which is undergoing relentless deforestation due to economic and
population pressures.

MCQ: Answer in about 250 words each.

Q5. Who is a Consumer? Discuss the Characteristics of ‘Consumer Buying’.

Ans. Consumers are individuals or households that “consume” goods and services generated within
the economy. Since this includes just about everyone, the term is a political term as much as an
economic term when it is used in everyday speech. Typically when business people and economists
talk of “consumers” they are talking about person-as consumer, an aggregated commodity item with
little individuality other than that expressed in the buy/not buy decision. However there is a trend in
marketing to individualize the concept. Instead of generating broad demographic and psychographic

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profiles of market segments, marketers are engaging in personalized marketing, permission

marketing, and mass customisation. In standard microeconomic theory, a consumer is assumed to
have a budget which can be spent on a range of goods and services available in the market

Characteristics of Consumer Buying

Consumers present a striking contrast to purchasing agents of government or any private enterprise.
The latter have only one job that of buying. A limited variety of goods is purchased because the unit
of purchase is large and so it is worthwhile for such buyers to spend much time in searching for
possible alternatives and in making elaborate surveys and tests in order to identify a suitable product.
They may even specify the product which is desired and get it made to order. In addition, many of the
products they buy are described in standard terms. Consumers on the other hand purchase small
quantities of a variety of goods. Extensive shopping and testing are not feasible and only in the case of
affluent consumers there is scope for having goods made to order.

Buying is often crowded into ‘spare moments’ and is only one of the many tasks carried on. A

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multitude of different goods may be selected. Without training and with little experience, consumers
must match their wits against salesmen skilled in the art of selling, many of whom take the attitude
“Let the buyers beware”. Sellers are also specialists who may confuse the consumers and sway them

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by their appeals and make them irrational buyers.

Q6. Write a note on ‘Consumer Responsibility’.

yh a.
Ans. Consumer responsibility can be divided into three phases. Initially, the consumer was supposed
to be concerned only with value for money, information and production of consumer goods.
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In the second phase, the aware consumer challenged the large corporations and their marketing
strategies and advocated consumer cause.
k
ba

In the third and the current phase, the consumer is expected to be aware of the environmental
implications of each product on the market shelf and be aware of his/her duties and responsibilities as
a consumer and as a citizen.
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Currently, the crucial area of concern is the question of consumer priority. In other words, this means
what the consumer should look for; whether to purchase cheaper and more easily available products
or to look out for fair trade practices, environmental cost and public health.
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The ethical and ecological facts of consumer behaviour have helped to evolve the concept of
consumer responsibility. A responsible consumer is a person who exercises his/her discretion with the
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full awareness of the implication of his/her right to choice, and is accountable or answerable to other
consumers and to the environment for his/her purchase decisions.

Citizen as Consumer: A person’s range of activities and interactions extends from his/her home to
the market place as a consumer. But as a citizen, the area of his/her activity expands to encompass not
only what he/she can carry from the market to his/her home for personal use, but what he/she can give
in return to society and to the environment. This involves not only action but also the decision not to
act in a certain established or acceptable manner.

Ethical Consumer: The term ‘ethics’ means values, principles or rules of conduct followed by an
individual, group or a culture as a whole. It is a science of values and by applying these values the
consumer can mobilize responsible responses in the industry, the government agencies and the market
place.

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Q7. Write a note on History and Growth of Consumer Movement in India.

Ans. The consumer movement in India is as old as trade and commerce itself. Even in Kautilya’s
Arthshastra, there are references to the concept of protection of consumers against the exploitation by
trade and industry, short weighment and measurements, adulteration along with the punishment for
these offences. As in Europe, in India also the origin of the Consumer Movement was in the form of
Consumer Co-operatives.

Consumer Protection in Ancient Times

India has an ancient history of consumer protection. Consumer protection was part of its ancient
culture and formed the core of its administration. Kautilya’s ‘Arthshastra’ was the basic law of
ancient India and the same was strengthened with provisions to protect consumers. Sale of
commodities was organized in such a way that general public was not put to any trouble

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Development of Co-operatives

Consumer Co-operatives are sometimes mentioned as the starting point of the Consumer Movement.
In general, consumer co-operatives have been successful in halting some of the abuses of the

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monopolies and in improving conditions of the lower-income classes. They have undertaken
consumer education, elementary product improvement and other projects of interests to members as
well as to other low income consumers.

Phase II
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Second World War and the accompanying scarcity situation increased their numbers again to 396. But
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lack of suitable leadership, corruption, ill paid staff and lack of storage facilities kept them in a state
of malfunction. In 1950-51, the number of consumer co-operatives reached 9674 with a membership
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ba

of 19 million members and an annual sale turnover of Rs. 76 million.

Phase III

Decontrol and derationing in 1951-52 meant a setback to the co-operative movement. Revival came in
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1962. In 1960, an all India seminar on consumer co-operatives was held in Bombay for a critical
appraisal of the entire consumer scenario. From the Third Five Year plan onwards, there has been
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much emphasis on the development of consumer co-operatives by the governments to make them
viable.
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Q8. Write a note on ‘Why the Consumer needs Protection’.

Ans. Under the modern philosophy of marketing, consumer is supposed to be the king and business is
expected to provide maximum possible satisfaction to consumers. But in reality, consumers are often
exploited. In a country like India there is shortage of many products. A few firms enjoy monopoly
powers in the market place. A large majority of consumers are ignorant and illiterate and do not know
their rights. They are poor and there is lack of unity among them. Due to all these reasons, consumers
are often deprived of their rights. They are often exploited through misleading advertisements, poor
quality goods, fractional weights and measures, overcharging, etc.

Consumer Protection is necessary due to the following reasons:

(1) It gets materials, manpower, machinery and other resources from society. Therefore, it is obliged
to supply the right products at reasonable prices to the public.

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(2) It is the moral responsibility of business to protect and promote the interests of consumers.

(3) The basic function of business is to satisfy the needs and expectations of consumers. It is through
consumer satisfaction that business can earn profits and continue operations in the long run.

(4) The Government of India is committed to the welfare of general public by encouraging fair trade
practices.

(5) Education and information through newspapers, radio and television has made people conscious of
their rights as consumers.

Q9. Discuss the salient features of ‘Perfect Competition’.

Ans. This is the market condition wherein no buyer or seller has the power to alter the market price of
a good or service. Characteristics of a perfectly competitive market are a large number of buyers and

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sellers, a homogeneous (similar) good or service, an equal awareness of prices and volume, an
absence of discrimination in buying and selling, total mobility of productive resources, and complete
freedom of entry. Perfect competition exists only as a theoretical ideal. It is also called pure
competition.

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i) Large Number of Buyers and Sellers

Perfect competition describes a market situation in which there is no rivalry among suppliers. Buyers
yh a.
do not compete among themselves for goods and services. This situation implies that sellers do worry
if they are unable to sell their products. On the other hand, consumers do apprehended that they may
not get the commodities they propose to buy.
xqY b
k
ii) Homogenous Products
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It is assumed that a perfectly competitive market has identical products brought by different sellers.
This ensures that buyers are indifferent as to the firm from which they make purchases.
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iii) Free Mobility of Resources

Each resource can move in and out of the market very readily in response to pecuniary signals. To
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understand this, note the following; If you have put up your capital or labour, say, in the car market
and find it unprofitable, you can withdraw your investments and go to some other activities without
difficulties.
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iv) Perfect Knowledge

Buyers and sellers in the market posses perfect knowledge. If the consumers are not aware of market
prices, they might end up paying higher prices when in fact, the same commodity is available at a
lower cost. In such a market, each unit of output is produced at its average cost of production.

Q10. Write a note on ‘Social Objectives and Responsibility’.

Ans. At a time when the nations all over have adopted industrialisation as an instrument of social
development, industrial and business organisations have to recognize their broader social mission and
commit themselves to the promotion of desired and directed social change. These social objectives
form a broad spectrum, and encompass issues such as:

a) value premises (industrial democracy; participatory management);

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b) atuning business ethics in a manner so as to shift from exclusive concern for profit and profitability
as the hallmark of organisational excellence to promoting social welfare and development;

c) moving away from the view that "social responsibility of business is to turn a social problem into
economic opportunity, into well paid jobs, and into wealth".

d) moving away from practices such as management-sponsored trade unions, and shifting of units
from regulated to less regulated areas;

e) recognition that every business decision has implications for society;.

f) conformity to the spirit of law and compliance to statutory obligations; '

g) not allowing private and partisan interests to result in industrial sickness and;

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h) concern for not only the quality of work but also for quality of life of the community.

This canvas of linkages between corporate organisations and community can be seen as the four facts

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of social responsibility, namely, (a) involvement in community issues; (b) human resources
development and utilisation (c) utilisation of material resources both renewable and non-renewable,
and environmental contributions; and (d) product or service contribution to the consumer, including
safety, service and fair trade practices.
yh a.
Indian managers have not as yet, and adequately, prepared themselves to accept the challenge of
atuning social objectives with their organisational objectives.
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SCQ: Answer in about 50 words each
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ba

Q11. Discuss in brief the role of Consumer in Market Economy.

Ans. In a market economy or a high consumption society, the price of a commodity, service or
production factor are determined according to supply and demand of the market.
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How market economy is related to the consumer depends upon consumer behaviour. When the
demand for a product increases for whatever reasons the producers can manipulate the market and
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exploit the consumers by creating artificial scarcity and by reducing the supply of the product into the
market. The consumers can fulfill their responsibility in this regard by not resorting to hoarding or
bulk-purchase, at the time of scarcity.
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Q12. Discuss in brief the factors responsible for attitudinal changes.

Ans. There are many factors responsible for changes in consumer behaviour and attitudes. Any
change in any of them can result in a change in attitude of consumers. Following are the factors:-

Inherent Nature of Consumers: By virtue of their inherent nature consumers do not always make
rational, economic, extensive decision. They would rather settle for a decision which is just “good
enough” or satisfactory in the circumstances at hand.

Personality Traits: Every person has some natural and acquired personality traits, which get
reflected in his/her purchase behaviour.

Social Influences: Social influences include the influence of family, friends, peer groups, work
groups, club mates, etc.

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Q13. Write a note on ‘The Consumer Manifesto’.

Ans. The modern consumer movement that began more than 50 years ago, has become an important
means to realize a just and fair society. As we move towards the year 2000, the movement remains
committed to this aim. Its theme is that conditions in which consumers have to live must become
better and more equitable. It approves of economic growth only when this leads to general well-being
and happiness.

Q14. Discus in brief the impact of Mass Media and Advertisement on Consumers.

Ans. Advertising through mass media is a purposeful activity. In fact, it is one of the most visible
activities. Businessmen, including owners of mass media, undertake to ensure two-fold, ultimate,
business objectives. One, ensuring survival of business. Two, achieving prosperity. They promise
satisfaction with what they advertise. By that, they aim to improve consumers’ attitude. Secondly,
they persuade people to opt for their products and services. Because most markets today are
characterized by heightened competition. However, in this process, they might hurt somebody.

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Q15. Discuss in brief the ‘Role of Trade and Industry’.

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Ans. They have to realise that their survival depends on consumer satisfaction. They have, therefore,
to evolve a code of conduct and business ethics through discussions with consumer groups and
organisations. Trade and industry whether producing and selling goods or providing services cannot
function in isolation.
yh a.
They have to ensure that the quality of their products are according to prescribed standards and that
they are safe and priced reasonably. They have to voluntarily ensure that they do not adopt any unfair
xqY b
or restrictive trade practices to exploit the consumers.

k
ba

Q16. Write a note on ‘Consumer Education and Market Regulated Economy’.

Ans. A deregulated or market regulated economy probably requires more consumer information and
education by both business and government. More, responsibility for consumer information flows to
the individual consumer to consumer organizations as well. Michael Mazis, Rechard Staelin, Howard
ly

Beales and Steven Salop have attempted to develop a framework for evaluating consumer information
regulation published in the ‘Journal of Marketing’.
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ASSIGNMENT-2

DCQ: Answer in about 500 words each.

Q1. Discuss and define the term ‘Unfair Trade Practice’ alognwith decided case laws on
Misleading Advertisement and False Representation.

Ans. Somewhat similar to the definition of unfair trade practice under the MRTP Act, clause (r) of
sub-section (1) of Section (2) of the Consumer Protection Act defines the expression unfair trade
practice. It is defined to mean a trade practice which, for the purpose of promoting the sale, use or
supply of any goods or for the provision of a service adopts any unfair method or unfair or deceptive
practice including any of the following practices, namely:

1) The practice of making any statement, whether orally or in writing or by visible representation,

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i) falsely represents that goods are of a particular standard, quality, quantity, grade,

ii) falsely represents that the services are of a particular standard, quality or grade;

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iii) falsely represents any rebuilt, second hand, renovated, reconditioned or old goods as new goods;

iv) represents that the goods or services have sponsorship, approval, performance, characteristics,
accessories, uses or benefits which such goods or services do not have;
yh a.
v) represents that the seller or the supplier has a sponsorship or approval or affiliation which such
seller or supplier does not have.
xqY b
2) Permits- k
ba

i) the offering of gifts, prizes or other items with the intention of not providing them as offered or
creating impression that something is being given or offered free of charge when it is fully or partly
covered by the amount charged in the transaction as a whole;
ly

ii) the conduct of any context, lottery, game of chance or skills, for the purpose of promoting, directly
or indirectly, the sale, use of supply of any product or any business interest.
ul

3) Permits the sale or supply of goods intended to be used, or are of kind likely to be used, by
consumers, knowing or having reason to believe that the goods do not comply with the standards
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prescribed by competent authority relating to performance, composition, contents, design,

construction, finishing or packaging as are necessary to prevent or reduce the risk of injury to the
person using the goods.

4) Permits the hoarding or destruction of goods, or refuses to sell the goods or to make them available
for sale or to provide any service, if such hoarding or destruction or refusal raises or tends to raise or
is intended to raise, the cost of those or other similar goods or service.

No relief to consumers in the case of unfair trade practice and restrictive trade practice. In the case of
these two practices, all that the District Forum may order is to discontinue them, or not to repeat them.

Case Law on Misleading Advertisement and False Representation

Since the concept of ‘unfair trade practice’ under the Consumer Protection Act is quite new, case-law
under the Act is not yet available. But the expression has been essentially used in the same sense as

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under the MRTP Act. Therefore, some cases decided by the MRTP Commission on the subject, may
be considered with advantage.

i) Accupressure Therapy Health Centre (1986). The respondents in this case were manufacturing
accupressure sandals which they claimed were designed to improve blood circulation, and keeping the
user healthy by walking daily on the chappals for 8 minutes every morning and evening before meals.
The respondents also claimed that WHO has approved of this therapy. When the matter was referred
to the All India Institute of Medical Sciences, it was very clearly stated by way of medical opinion
that there was no proven evidence in modern medical literature that accupressure helps treat any
ailment, and that the science of accupressure was not accepted even in developed countries.

ii) DG (I & R), New Delhi v. Principal, Kathiar Medical college, Patna (1989). Director General filed
an application suo moto against Principal, Kathiar Medical College, which was registered under the
Societies Registration Act.

iii) In Snowhite Clothiers (1986), the respondent issues advertisements promising discounts up to

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50% upon stating in the advertisements “Drop in for unbelievable bargain in men’s, ladies and
children wear”. The Commission ruled that the advertisements were misleading in that the normal
price was not shown, the bargain sale period was not indicated – ‘till stocks last’ was held a vague

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term.

iv) In Panama Taxtiles, Bombay (1987), the dealer was found to have conducted the bargain in the
name and style ‘ZAPATA’ at YWCA, Ashoka Road, New Delhi and at NDMC hall Punchkuin Road,
yh a.
New Delhi.‘Bargain sale’, the said dealer was found to have sold spurious/sub-standard suiting, etc.
falsely claiming that to be of well-known brands manufactured by M/s Raymond Woollen Ltd.
Grasim Industries Ltd., M/s Bombay Dying, etc. Held the dealer had indulged in an unfair trade
xqY b
practice.

k
ba

Q2. Discuss in detail the remedies available for negligence in ‘Banking Service’.

Ans. The bankers are professionals, who hold themselves out as persons worthy of trust and as
persons of skill with respect to the money placed by the customers in their custody. They undertake to
pay on consumer's cheques to the extent of money in their credit balance. The failure to do so
ly

constitutes negligence and make them liable for damages including for injury to the credit of the
consumer.
ul

The banks are liable for any forgery in the cheque committed by third persons. A bank which makes a
payment on a forged cheque, cannot make the customer liable except on the ground of negligence
imputable to the consumer. [Bhagwan Dass v. Creet, (1903) ILR 31 (Cal.) 2491. If the signatures of
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the customer on the cheque are not genuine, there is no mandate on the bank to pay. In such a case,
the question of any negligence on the part of the customer, such as leaving of the cheque-book
carelessly so that a third party can easily get hold of it, can afford no defence to the bank.

Similarly, if a bank fails to carry out the instructions of a customer, it will be liable for negligence.
For example, if a bank issues a bank draft without authority in accordance with the customer's
instructions against valid cheques of the customer, owing to the fraud of the customer's servant, the
bank will be liable in damages in respect thereof [Bank of Montreal v. Dominion Gresham Guarantee
and Casuality Co., (1930) AC 6591.

The Usurious Loans Act, 1918

With an object to prevent the Civil Courts from being used for the purpose of enforcing harsh and
unconscionable loans carrying interest at usurious rates, and to give additional powers to courts to
deal in certain cases with usurious loan of money or in kind, the Usurious Loans Act,1918 was

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enacted on 22nd March, 1918. It empowers the courts on the lines of Section 1 of the Money Lenders
Act, 19.00 to reopen transactions by way of money or loans in cases where the Court is satisfied (1)
that the interest or other return is excessive and (2) that the transaction is substantially unfair, -and
after investigation of the circumstances, both attendant and antecedent, to revise the transactions
between the parties and if necessary, reduce the amount payable to such sum as the Court, having
regard to the risk and all the circumstances of the case, may decide to be reasonable. Section 3 of the
Act provides for the re-opening of certain transactions.

The Banking Ombudsman scheme, 1995

The Banking Ombudsman Scheme, 1995 was framed by the Reserve Bank of India and is applicable
to all the business in India of every commercial bank (other than regional rural banks) having place of
business in India, whether such bank is incorporated in India or outside India.

The object of the scheme is to enable resolution of complaints relating to the provision of banking
services and to facilitate the satisfaction, or settlement of such complaints. Under this scheme the

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Reserve Bank of India has to appoint one or more persons to be known as the Banking Ombudsman to
carry out the functions entrusted to him by or under the Scheme. He is to hold office during the
pleasure of the Governor of the Reserve Bank of India. He is to be a person of high standing in the

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legal, banking, financial services, public administration or management sectors.

Q3. Discuss in detail ‘Institutional Assistance’ available for redressal of Consumer Grievances
in India.
yh a.
Ans. Some organisations also include in their objectives sorting out of problems faced by their
members individually. Association of Manufacturers, the Associations of Consumers; andsome
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voluntary organisations like the Voluntary Health Association of India and organisations like the
Medical Council of India are examples of such associations.
k
ba

Associations of Manufacturers

There are associations formed by the manufacturers called Manufacturers' Association or Business
Bureaus. It is important for the consumer to know that these organisations are financed by the
ly

business establishments. Leading Trade and Industry associations such as Federation of Indian
Chamber of Commerce and Industry (FICCI) have Consumer Business Forums dealing with
consumer related activities for the benefit of the business community all over the country.
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Some leading Manufacturing companies have customer service/consumer Grievances Cells or Public
Relations Officer. These act as a mediator between the manufacturer and the consumer for settling the
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grievances/disputes. Manufacturers' associations forward the complaints received from the consumer
to the concerned manufacturers and try to persuade them to accept and compensate the consumer in
cases where the fault lay with the product manufacturer.

These Associations also take action against their members who have a consistent reputation for
particular type of complaints like misleading advertisements or false claim about their products, etc.
They persuade them to cease and desist from such practices, as these may affect the image of the
industry as a whole.

Associations of Consumers

As against the manufacturers' associations, the better and more effective settlement of consumers'
grievances can be reached through the consumers' own organisations. In India, consumer protection is
of paramount importance in view of the fact that there is an ever increasing population. This in turn

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increases the demand for large variety of goods and services. To assist the consumer in getting a fair
deal for all their purchases, and in sealing their grievances, if any, local agencies like a consumer
association can play a crucial role. Their role is not only to educate and guide the consumers with
respect to redressal of their complaints but also to make the consumer movement a reality through
coordinated efforts. There are more than 300 voluntary organisations working in the area of welfare of
the consumers all over the country.

Voluntary Health Association of India/Medical Council of India

Among the non-Governmental organisations, Voluntary Health Association of India (VHAI) occupies
a special place. It is a secular, non-profit making Federation of over 3000 organisations working in the
field of health and community development: It strives to make health a reality for all, especially the
unreached and the oppressed. VHAI fulfills three objectives through training and by providing
information to the target groups.

In support of its objectives, VHAI also develops and distributes appropriate educational aids

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Grievances to the organisations serving at the grassroots level. Linking up these organisations through
the newsletters and journals also constitutes an important activity of VHAI. It also collaborates its
activities with consumer organisations in relation to consumer complaints on health-related issues. A

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consumer can also seek the assistance of VHAI for his genuine grievances in health-related issues and
drug abuse.

The Medical Council of India is another organisation which can be approached by an aggrieved
yh a.
consumer to make a complaint about a doctor practising the allopathic system of medicine for
defective services rendered by the Doctor and seek redressal.
xqY b
Q4. Discuss in detail various ‘Activities of an Organisation’ dealing with Consumer Problems
and issues.
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ba

Ans. The main concern of a consumer organisation is to protect the right of the consumer and to
promote social justice and fairness in the market place. Consumers in each area have their own
specific problems. It is important for the organisation to find out the local problems of the consumer
and try to solve them through counselling, education and information services. Since every citizen of
ly

the country is a consumer and protection of consumers' rights and interests is the main goal of a
consumer organisation, we can imagine the vast role that the consumer organisation has to play.
Therefore, the various activities that a consumer organisation has to carry out are:
ul

1) Education: Every one of us is a consumer and therefore, have the right to consumer education. But
it is the right education that would enable us to act as an informed consumer, throughout one's life.
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One of the problems of the Indian consumers is their ignorance. Most of the consumers are apathetic
because they are not aware of their rights. Therefore, they do not have the strength to resist whenever
they are cheated or exploited and they suffer silently. It is for this reason that education should be
given to each and every one of them. The main objectives of consumer education are, therefore, to:

- develop skills

- gain knowledge, and

- develop understanding

2) Research: This is one of the most important sections of a consumer organisation. Many of the
consumer problems can be solved by conducting research studies and surveys. The organisation, in
the first instance, would require to carry out research to find out what kind of consumer education the

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society needs, to what level and to what extent. The research can be carried out in all the areas that are
earlier mentioned under consumer education. Research also needs to be carried out in the market
place on malpractices and tests are carried out to check safety and quality of consumer products, water
and I foodstuffs. The results of these tests can also be published in-the organisation's magazine or
newsletter.

3) Grievances and Complaints: The consumers, generally, have lot of complaints on consumer
issues like poor quality products and services, food adulteration, unhygienic conditions, water and
electric supply etc. The complaints may be received through mail, telephone or in person. Such
consumers need proper counselling and guidance so that their grievance are redressed.

4) Vigilance: In India, many services like postal services, telephone, electricity, water supply, and the
public distribution system are managed by governmental agencies. Unfortunately, no concerted
attempt appears to have been made so far in an adequate measure to make the government
functionaries consumer friendly. Due to various reasons, such services tend to become impersonal in
their approach. Therefore, most of the consumer complaints pertain to the public utility services.

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5) Counselling: A few members of an organisation who are well conversant with the legal provisions
under the various acts of interest to the consumers can provide assistance and legal advice to

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consumers who are in need of such advice. In addition, they can observe the implementation of the
laws that might have been enacted by the local government which affects the consumers. They can
also handle public interest cases and represent the community in need of such legal assistance and
representation.
yh a.
6) Publications and Media : It is said that 'the pen is mightier than the sword'. No organisation is
complete without a publication division. A regular newsletter or a magazine brought out periodically
xqY b
can become the medium of communication between the consumer activists and the consumer public.
Through its columns, consumer activists can convey their ideas and information to the consumers.
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The consumers can also contribute their share by informing the organisation activists of their plight
ba

and the problems they encounter in their area.

7) Library: An organisation can also become a good information centre if it maintains a library. A
wide range of books, journals, research reports and pamphlets along with press clippings can meet the
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reference needs of the consumer. The library premises can also be used occasionally as a meeting
point for the members of the organisation. Many activities of the organisation may go unnoticed if
they do not have a place to exhibit their notes on consumer issues.
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MCQ: Answer in about 250 words each.

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Q5. Discuss the Limitations of the Consumer Protection Act, 1986 and difficulties faced in its
implementation.

Ans. The Consumer Protection Act, 1986, is now in operation for more than a decade. The Act was
amended in 1993 for enlarging its scope. However, there are certain shortcomings in the Act which
are:

• Presently, the position is that only those services come within this Act for which specific
payment is made, such as electricity, telephones, banking, etc.
• Thus the doctors as well as hospitals including those where treatment is given free such as
government hospitals do not come within the ambit of the Act.
• Also, the mandatory civil services, such as sanitation, water supply, etc. provided by the State
or local authorities are not covered by the Act.

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• The Government cannot remain a silent spectator to the sorry state of affairs in the
government hospitals. The government hospitals doctors have failed to improve themselves in
extending satisfactory services to the public.
• The Consumer Protection (Amendment) Act, 1993 incorporated two clauses regarding supply
of hazardous goods, but it does not impose strict liability on those who supply such goods.
• Further, the consumer Protection Act, 1986, does not give any definition of safety
requirements and permitted hazard levels. Whatever safety regulations are already prescribed
under some law or the other would have to gone into as to whether they have been violated or
not. In fact, the Act itself should incorporate certain product satisfies requirements.
• Under the Act, a consumer can seek redressal only if he has suffered a loss on a damage as a
result of the unfair trade practice or deficiency in service or the unfair trade practices resorted
to by a trader. However, the per se rule is not invoked. The per se rule ensures that any act or
practice which prima facie appears to be unfair shall be regarded as unfair and against
consumer interest as such, pending its justifications by the opposite party.
• The Act does not empower the Consumer Redressal Fora to issue either interim injunction, or
“cease and desist orders”. These powers are vested in the Monopolies and Restrictive Trade

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Practices Commission under the Monopolies and Restrictive Trade Practices Act, 1969.

Q6. Highlight the difference between ‘Condition’ and ‘Warranty’.

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Ans. Section 12 differentiates conditions and warrant; thus:

i) A stipulation in a contract of sale, with reference to goods which are the subject thereof may be
yh a.
condition or warranty.

ii) A condition is a stipulation essential to the main purpose of the contract, the breach of which gives
xqY b
rise to a right to treat the contract as repudiated.
k
ba

iii) A warranty is a stipulation collateral to the main purpose of the contract, the breach of which gives
rise to a claim for damages but not to right to reject the goods and treat the contract as repudiated.

iv) Whether a stipulation in a contract of a sale is a condition or a warranty depends in each case on
the construction of the contract. A stipulation may be a condition, though called a warranty in the
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contract.
ul

In its usual meaning a condition is a term which, without being the fundamental obligation imposed
by the contract, is still of such vital importance that it goes to the root of the transaction. The
importance of a condition in contracts for the sale of goods is that its breach, if committed by the
seller, may give the buyer the right to reject the goods completely and to decline to pay the price, or if
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he has already paid it, to recover it.

No doubt this is the usual meaning of the word ‘condition’. If the term is strictly a condition, this
means that its full performance is condition of the other party’s obligation; his duties are conditional
on the performance of conditions. For example, the seller’s statutory implied obligations as to the
quality and fitness of the goods, and as to their compliance with their description, are all conditions
under the Sale of Goods Act. That means that the duties must be strictly complied with by the seller
and that any breach of these conditions, however trivial, prima facie justifies the buyer in refusing to
accept the goods.

Q7. Discuss the important provisions of Drugs and Cosmetics Act, 1940.

Ans. a) Definitions: Ayurvedic, Siddha and Unani Drugs includes all medicines intended for internal
or external use for or in the diagnosis, treatment, mitigation, or prevention of disease or disorder in

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human being or animals, and manufactured exclusively in accordance with the formula prescribed in
the authoritative books of Ayurvedic, Siddha and Unani Tibb systems of medicine specified in the
First Schedule.

“The Board” means:

i. in relation to Ayurvedic, Siddha and Unani Drugs, the Ayurvedic, Siddha and Unani Drugs
Technical Advisory Board constituted under Section 33-C; and ii. in relation to any other drug or
cosmetic, the Drug Technical Advisory Board constituted under Section 5;

“Cosmetic” means any article intended to be rubbed, poured, sprinkled or sprayed on or introduced
into, or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting
attractiveness, or altering the appearance, and includes any article intended for use as a component of
cosmetics.

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“Drug” includes

i. all medicines for internal or external use of human beings or animals and all substances intended to
be used for or in the diagnosis, treatment, mitigation or prevention of any disease or disorder in

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human beings or animals, including preparation applied on human body for the purpose of repelling
insects like mosquitoes;

ii. All substances intended for use as components of a drug including empty gelatin capsules.
yh a.
“Government Analysts” means:
xqY b
i. In relation to Ayurvedic (including Sidha) or Unani Drug, a Government Analyst appointed by the
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Central Central Government under Section 33-F; and
ba

ii. In relation to any other drug or cosmetic, a Government Analyst appointed by the Central
Government or a State Government under Section 20.
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The Drug Technical Advisory Board

The Board has been set up by the Central Government to advise it and the State Governments of
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technical matters arising out of the administration of this Act and for carrying out other functions
assigned to it by this Act.
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Central Drugs Laboratory

This is established by the Central Government under the Control of a Director to carry out functions
laid down under the Act. Rules provide for the procedure for admission of samples of drugs or
cosmetics for analysis or test, forms of reports fees to be paid, etc.

Q8. Discuss in brief the Consumer Disputes Redressal Agencies created under the Consumer
Protection Act, 1986.

Ans. There shall be established for the purposes of this Act, the following agencies, namely:—

(i) a Consumer Disputes Redressal Forum to be known as the “District Forum” established by the
State Government in each district of the State by notification: Provided that the State Government
may, if it deems fit, establish more than one District Forum in a district.

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(ii) a Consumer Disputes Redressal Commission to be known as the “State Commission” established
by the State Government in the State by notification;

(iii) a National Consumer Disputes Redressal Commission established by the Central Government by
notification.

District Forum: Composition of the District Forum

Each District Forum consists of a president and two other members and one of them should be a
woman.

The president is a person who has been or is qualified to be a District Judge. The two other members
are persons of ability, standing and integrity and have adequate knowledge or experience or have
shown capacity in dealing with problems relating to economics law, commerce, accountancy,
industry, public affairs or administration.

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Appointment: Every appointment to the District Forum is made by the State Government on
recommendation of selection committee consisting of

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i) The President of State Commission - Chairman

ii) Secretary, Law Department of the state - Member

yh a.
iii) Secretary incharge of the Department dealing with Consumer Affairs in the State - Member.

Term: A member of the District Forum holds office for a term of 5 years or up to an age of 65 years,
xqY b
whichever happens earlier and is not eligible for appointment.
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ba

Jurisdiction

i) The ‘District Forum’ has jurisdiction to entertain complaints where the value of goods, services and
compensation claimed (if any) does not exceed Rs. five lakhs.
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ii) A complaint can be filed in the District Forum in whose territorial jurisdiction the opposite party or
parties, at the time of instruction of complaint, actually and voluntarily resides, carries on business,
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has a branch office or personally works for gain.

iii) The complaint can also be filed before the District Forum in whose jurisdiction the cause of
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action, wholly or in part arises.

Q9. Discuss the strategies of effective ‘Campaign and Advocacy Programmes’.

Ans. The Three Basic Techniques Involved in Effective Strategy Basically, the following three
techniques are involved in evolving an effective strategy;

1. Information and Publicity

This involves spreading awareness of the campaign and the issues involved by:

• Using the mass media, press releases, letters to editors, interviews on T.V. and Radio, Cable
TV/Cassettes and other audio/visual aids.
• Organizing public meetings to be addressed by popular public personalities, celebrities and
popular figures, sympathetic to the cause.

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• Organizing mobile groups to travel widely.

• Involving schools and colleges where considered appropriate.
• Preparation and circulation of posters, handbills, stickers etc. and putting up hoarding.
• Associating experts and professionals as well as relevant scientists, etc. whenever possible in
such discussions to add further weight to the campaign.

2. Soliciting Support

Techniques to solicit support-strategic planning is the essence of obtaining support from every
possible source for the success of any campaign particularly if it is a struggle oriented movement.
Such support will have to be solicited from:

• the general public

• key groups in society
• groups related to the issue

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This can best be achieved by:

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• identifying all possible factors likely to be concerned with the issues involved in the
campaign, both directly and indirectly including individuals and/or groups
• who are known to be in support
• who are known to be opposed
•
yh a.
who are fence sitters and have not made up their mind.

3. Influencing the Powerful

xqY b
This involves identifying those who are in a position to change the situation and solve the problems or
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issue under consideration by being in a position to deal with and take decisions on the various issues
ba

involved in the campaign/advocacy programme.

These powerful people may be:

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• Professional groups
• Business communities
• various decision making authorities at different levels in the organization concerned.
ul

• Members of Parliament, MLAs or other elected representatives.

Some methods that can be used in influencing them are:

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• making available to them brief memoranda, policy papers, etc. dealing with the crux of the
issues relating to the campaign/advocacy programme.
• Starting law suits and/or Public Interest Litigation.
• Submitting draft legislations, amendments to existing legislations, etc. conducting
workshops/seminars/symposium for thrashing out details and involving to the extent possible,
people in power, including professional groups, such as lawyers, doctors, legislators, etc.

Q10. Discuss the meaning of Consumer with the help of decided case laws.

Ans. The concept of a consumer is used in different contexts, so that the usage and significance of the
term may vary. Consumers are individuals or households that “consume” goods and services
generated within the economy. Since this includes just about everyone, the term is a political term as
much as an economic term when it is used in everyday speech. Typically when business people and

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economists talk of “consumers” they are talking about person-asconsumer, an aggregated commodity
item with little individuality other than that expressed in the buy/not buy decision. However there is a
trend in marketing to individualize the concept. Instead of generating broad demographic and
psychographic profiles of market segments, marketers are engaging in personalized marketing,
permission marketing, and mass customisation. In standard microeconomic theory, a consumer is
assumed to have a budget which can be spent on a range of goods and services available in the
market. Under the assumption of rationality, the budget allocation is chosen according to the
preference of the consumer, i.e. to maximize his or her utility function. In time-series models of
consumer behaviour, the consumer may also invest a proportion of their budget in order to gain a
greater budget in future periods. This investment choice may include either fixed rate interest or risk-
bearing securities. In the context of mental health, consumer is also a term applied to describe a
person living with mental illness. Concern over the best interests of consumers has spawned much
activism, as well as incorporation of consumer education into the school curriculum. One non-profit
publication active in consumer education is Consumer Reports. Within many selling companies
“consumer” has come to be a derogatory term. Meaning “purchaser of products who is not very
intelligent.” This is in contrast to the meaning of customer. This is defined as an intelligent purchaser

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who has power in the purchasing relationship between buyer and seller.

SCQ: Answer in about 50 words each

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Q11. Write a note on ‘Duties of Consumers as a Corollary to Consumer Right’.

Ans. It is also a fact of social life that rights and duties are two sides of the same coin. As consumers
yh a.
we have two types of duties. One, duties which are required for enforcement of our own rights.

For instance, for meaningful enforcement of rights to safety and healthy environment it is our duty to
xqY b
buy only ISI marked goods particularly where safety is most important, for example,
electric/electronic items, helmet, etc. Similarly, for eatables, particularly, spices, oils, ghee, atta, etc. It
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is our duty to buy packed foods with an AGMARK certification.
ba

Q12. Discuss in brief the important provisions of ‘Sale of Good Act, 1930’.

Ans. Section 14 of the Sale of goods Act, 1930 provides:

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In a contract of sale, unless the circumstances of the contract are such as to show a different intention
there is—
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(i) an implied condition on the part of the seller that, in the case of a sale, he has a right to sell the
goods and that, in the case of an agreement to sell, he will have a right to sell the goods at the time
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when the property is to pass;

(ii) an implied warranty that the buyer shall have and enjoy quiet possession of the goods;

(iii) an implied warranty that the goods shall be free from any charge of encumbrance in favour of any
third party not declared or known to the buyer before or at the time when the contract is made.

Q13. Discuss a case law against Misleading Advertisement.

Ans. In the 1980s, a manufacturer of automobiles (two-wheelers) launched an ambitious plan to

increase the number of its customer through manipulative and misleading advertisements. It exhorted
its prospective customers to get their names registered by way of payment of Rs.5001-, and promised
them that the delivery of the automobile will be made to them after a year or so. The registration
amount was to carry an interest rate ranging between 7% to 9% per annum. The fixation of the interest

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 9350849407

rate depended on the discretion of the company. In certain cases it was paid to the customer at the
time of the delivery of the vehicle. Stringent conditions were laid down in the whole scheme.

Q14. Discuss the manner of taking cognizance of PIL.

Ans. 1) Letters and Telegrams

The courts, with the aim of enabling even the poor and disadvantaged to seek judicial redressal of
their grievances, have dispensed with procedural formalities to such an extent that they have even
accepted letters, post cards and telegrams, addressed to judges, the court, or the Legal Aid
Committees, as writ petitions and have taken appropriate action.

2) Suo Moto

Even if nobody files a petition before the court, in case there is violation of the rights of people, the

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court can initiate the proceedings own its own by simply taking not of it either through newspaper or
through any other source.

Q15. Discuss in brief the concept and ‘structure of an Organisation’.

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Ans. Organisation theory is a specialised area of management. Various writers who have contributed
to this area, have defined the term organisation in different ways. However, the following list of eight
features appears in all definitions. According to this list, an organisation:
yh a.
- is a collectivity of people
xqY b
- has a relative permanence
k
ba

- is a common feature of the contemporary society

- has an orientation towards a common but focussed goal

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- demand differentiated activities and responsibilities

- responds to an hierarchy of authority

ul

- seeks rational co-ordinations

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- is an outcome of an interaction with the environment.

Q16. Discuss in brief the structure and purpose of Consumer International (CI).

Ans. With its renewed and elevated setting as mentioned earlier, CI works on a worldwide
programme, and a commitment to represent the consumer effectively, on a global level. The
membership of the Consumers International has two categories -one, the full members and the other
known as ‘The Affiliates’. Full membership is given to those organisations which give a proportion of
their gross annual income to help the Consumers International to make its budget. The other members
- Affiliates - pay a membership fee. Besides these sources, CI also receives grants from outside
sources for some of its activities, which includes government grants as well.

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