NCERT Solutions of Economics for Class 10 Chapter 5 Consumer Rights

IN-CHAPTER QUESTIONS

Let’s Work These Out

Question.1. What are the various ways by which people may be exploited in the market?
Answer. People are exploited in the market in various ways, which are as follows – overcharging, counterfeit or substandard goods, less measurement, impurity and adulteration, artificial shortage, lack of safeguards, misleading and In the form of misrepresentation and unsatisfactory after sales services etc.

Question.2. Think of one example from your experience where you thought that there was some ‘cheating’ in the market. Discuss in the classroom.
Answer. Students should do this on the basis of their own experience with the help of
their teacher.

Question.3. What do you think should be the role of the government to protect consumers?
Answer. For the protection of consumers, the government should have the following role-

  1. The government should give clear information about their rights and duties to the consumers through various mass media.
  2. The government should provide complete information to the consumer about the three-tier judicial process created for the protection of consumers.
  3. The government should make it mandatory for all vendors to hang price lists so that consumers do not have any confusion or difficulty in seeing the price of any item.
  4. The government should make it mandatory for the producers that every product should have price, manufacturing date, last date of use, guarantee or warranty period, quality of the product, name of the product, address and telephone number.

Let’s Work These Out

Question.1. What could have been the steps taken by consumer groups?
Answer. The following measures can be adopted by the consumer parties, which are as follows-

  1. The work of writing articles related to consumer rights should be done and its publicity should also be done.
  2. Pressure should be put on the business companies and the government to improve the inappropriate business style against the interests of the consumers.
  3. Exhibition should be organized for consumer awareness.
  4. Improper actions from ration shops should be monitored whether full ration is given to the consumers on time or not.

Question.2. There may be rules and regulations but they are often not followed. Why? Discuss.
Answer. Even after having many rules and regulations for consumer protection in India, they are not followed. The reasons for this are as follows:

  1. Most of the consumers are straight forward who do not want to get into a fight by complaining against the seller or the product. They are worried about going to court.
  2. Due to lack of awareness among the consumer.
  3. Many government officials who enforce the law are corrupt. They take bribes from unscrupulous traders and shopkeepers and give them an escape route.

Let’s Work These Out

Question.1. For the following (you can add to the list) products/services discuss what safety rules should be observed by the producer?
(a) LPG cylinder
(b) cinema theater
(c) circus
(d) medicines
(e) edible oil
(f) marriage pandal
(g) a high-rise building
Answer. (i) L.P.G. Cylinder :

  1. Its total weight (with the weight of the cylinder) and gas and cylinder separately should be written on each cylinder.
  2. Its price should be written on the cylinder.
  3. The cylinder should be fitted with a strong seal.
  4. The safety valve should be checked properly whether it is leaking.

(ii) Cinema theatre :

  1. The cinema hall should be constructed as per the approved plan and prescribed standards.
  2. There should be proper and sufficient space for parking outside the cinema.
  3. The entry and exit doors should be wide enough, proper seating arrangements should be made and electrical fittings should be as per the prescribed standards.
  4. There should be adequate and proper arrangement of fire fighting equipment.
  5. There should be a complete ban on smoking inside the cinema halls.

(iii) Circus :

  1. There should be adequate security arrangements at the circus venue also.
  2. All the dangerous wild animals of the circus like bears, leopards etc. should be kept in strong cages. So that he cannot come out.
  3. The pandal of the circus should be put up as per the prescribed standards.
  4. Every act of the circus must be done with the utmost care.

(iv) Medicines :

  1. While making medicines, the health related rules and prescribed chemicals should be used in proper quantity only.
  2. Formula, price, date of manufacture, last date of use etc. should be clearly written.
  3. Must have all the details on the medicine.

(v) Edible oil :

  1. Edible oil should be sold in sealed packet, box or tin only.
  2. Date of manufacture, quality expiry date, price, I.S.I. Trademarks etc. should be marked.

(vi) Marriage pandal :

  1. The marriage pandal should be of proper size.
  2. The electric generator should be kept at some distance from the wedding venue so that there is no possibility of fire.
  3. There should be proper and adequate fire fighting arrangements in the pandals.
  4. There should be adequate arrangements for parking outside the wedding pandal so that there is no hindrance in the movement of people and there is no jam.
  5. Care should be taken of the quality of the food prepared for the marriage.

(vii) A high rise building :

  1. The construction of a multi-storied building should be done according to the approved plan.
  2. The building material should be of excellent quality and the building should be constructed by skilled and trained engineers and craftsmen only.
  3. Proper arrangements should be made for parking, park, lift and fire fighting.

Question.2. Find out any case of accident or negligence from people around you, where you think that the responsibility lies with the producer. Discuss.
Answer. Students should do it themselves with the help of the teacher.

Let’s Work These Out

Question.1. When we buy commodities we find that the price charged is sometimes higher or lower than the Maximum Retail Price printed on the pack. Discuss the possible reasons. Should consumer groups do something about this?
Answer. When we buy goods, we find that sometimes the price charged is more or less than the price printed on the packet. The reasons for this are the following which are as follows-

  1. Uneducated ignorance or indifference of the consumer.
  2. When the demand for a commodity is more than the supply, sellers want to take advantage of this and maximize their profits by charging higher prices from the consumers.
  3. If the seller sells the goods at a price less than the fixed price, it is possible that he is selling counterfeit or low quality goods. At this stage consumer groups should pressurize the sellers to keep the price below the MRP. Apart from this, the help of Consumer Protection Court or Police can also be taken.

Question.2. Pick up a few packaged goods that you want to buy and examine the information given. In what ways are they useful? Is there some information that you think should be given on those packaged goods but is not? Discuss.
Answer. Students should do this question on their own with the help of parents or teachers in their family.

Question.3. People make complaints about the lack of civic amenities such as bad roads or poor water and health facilities but no one listens. Now the RTI Act gives you the power to question. Do you agree? Discuss.
Answer. The Right to Information Act gives people the right to ask questions to the government and institutions. This law brings transparency between the government and the people. This law gives the citizens the right to know about the activities of the road, water and health department etc. and to know the reason for the problems.

Let’s Work These Out

Question.1. The following are some of the catchy advertisements of products that we purchase from the market. Which of the following offers would really benefit consumers? Discuss.

  • 15 gm more in every 500 gm pack.
  • Subscribe for a newspaper with a gift at the end of a year.
  • Scratch and win gifts worth ₹ 10 lakhs.
  • A milk chocolate inside a 500 gram glucose box.
  • Win a gold coin inside a pack.
  • Buy shoes worth ₹ 2000 and get one pair of shoes worth ₹ 500 free.

Answer. The above advertisements are very attractive, but in reality, there is an advertisement that benefits the consumers – ‘a gold coin inside the packet’. After purchasing the packet, the consumer can take the receipt of the cash payment from him, open the packet in front of the shopkeeper and take out the gold coin from it. If there is no gold coin or fake coin in the packet, he can accuse the seller of cheating and can also go to the consumer court against him. If the gold coin is pure, then it is an added benefit to the consumer.

Let’s Work These Out

Question.1. Arrange the following in the correct order.
(a) Arita files a case in the District Consumer Disputes Redressal Commission.
(b) She engages a professional person.
(c) She realises that the dealer has given her defective material.
(d) She starts attending the commission proceedings.
(e) She goes and complains to the dealer and the Branch office, to no effect.
(f) She is asked to produce the bill and warranty before the commission.
(g) She purchases a wall clock from a retail outlet.
(h) Within a few months, the dealer was ordered by the commission to replace her old wall clock with a brand new one at no extra cost.
Answer. The correct order is as follows:
(g) Arita purchases a wall clock from a retail outlet.
(c) She realises that the dealer has given her defective material.
(e) She goes and complains to the dealer and the Branch office, to no effect.
(b) She engages a professional person.
(a) She files a case in the District Consumer Disputes Redressal Commission.
(d) She starts attending the commission proceedings.
(f) She is asked to produce the bill and warranty before the commission.
(h) Within a few months, the dealer was ordered by the commission to replace her old wall clock with a brand new one at no extra cost.

Let’s Work These Out

Question.1. Look at the posters and cartoons in this chapter. Think of any particular commodity and the aspects that need to be looked at as a consumer. Design a poster for this.
Answer. With the help of student teaching, solve it by yourself and with the help of the teacher.

Question.2. Find out the nearest Consumer Disputes Redressal Commission for your area.
Answer. With the help of student teaching, solve it by yourself and with the help of the teacher.

Question.3. What is the difference between consumer protection council and Consumer Disputes Redressal Commission?
Answer. The difference is as follows :

  • Consumer Protection Council : Consumer Protection Council is a social organization that protects the interests of consumers and answers them.
  • Consumer Courts : Under the Consumer Protection Act, 1986, a three-tier judicial system has been established, which includes consumer courts at the district, state and national levels.

Question.4. The Consumer Protection Act 1986 ensures the following as rights which every consumer in India should possess

  1. Right to choice
  2. Right to information
  3. Right to redressal
  4. Right to representation
  5. Right to safety
  6. Right to consumer education

Categorise the following cases under different heads and mark against each in brackets.

(a) Lata got an electric shock from a newly purchased iron. She complained to the shopkeeper immediately. ()
(b) John is dissatisfied with the services provided by MTNL/BSNL/TATA INDICOM for the past few months. He filed a case in the District Level Consumer Commission. ( )
(c) Your friend has been sold a medicine that has crossed the expiry date and you are advising her to lodge a complaint. ( )
(d) Iqbal makes it a point to scan through all the particulars given on the pack of any item that he buys. ( )
(e) You are not satisfied with the services of the cable operator catering to your locality but you are unable to switch over to anybody else. ( )
(f) You realise that you have received a defective camera from a dealer. You are complaining to the head office persistently. ( )
Answer. (a) Right to Representation
(b) Right to Redressal
(c) Right to Safety
(d) Right to Information
(e) Right to Consumer Education
(f) Right to Choice

Question.5. If the standardisation ensures the quality of a commodity, why are many goods available in the market without ISI or Agmark certification?
Answer. Many items are present in the market without ISI or AGMARK certification because some producers make fake products similar to genuine products and sell them at low prices and earn more profit. Apart from this, it is not necessary for all the producers to follow these norms.

Question.6. Find out the details of who provides Hallmark and ISO certification.
Answer. Hallmark certification is provided by the Bureau of Indian Standards. ISO certification is provided by the International Organization for Standardization. Hallmark’s sphere of influence is limited to India only while ISO’s recognition is inland.

TEXTBOOK EXERCISE

Question.1. Why are rules and regulations required in the marketplace? Illustrate with a few examples.
Answer. There is a need for regulation and control in the market for the safety of the citizens. Because when consumers are exploited, consumers often find themselves in a vulnerable position. Whenever there is a complaint about the goods or services purchased, the seller tries to shift all the responsibility to the buyer. The seller can exploit the consumer in many ways. To save the consumer from such a situation, consumer movements were launched so that there would be security in the market. Exploitation in the market takes place in many forms, such as sometimes traders start doing unfair trade, weigh less or sell adulterated goods. Misinformation is given from time to time by the media and other sources to attract the consumers. Therefore, there is a need for rules and regulations to ensure the safety of the consumers.

Question.2. What factors gave birth to the consumer movement in India? Trace its evolution.
Answer. The consumer movement started due to the dissatisfaction of the consumers as the sellers were involved in many unfair practices. There was no legal system available in the market to protect the consumer from exploitation. It was believed that it is the responsibility of a consumer to exercise caution while purchasing a commodity or service. It took many years for organizations in India and around the world to bring awareness among people. They put the responsibility of ensuring the quality of goods and services on the sellers.

The consumer movement as a social force in India was born out of the need to protect and promote the interests of consumers in unethical and unfair business practices. Due to extreme food shortage, hoarding, black marketing, adulteration of food items and edible oil, a systematic consumer movement emerged in the 1960s. By 1970, consumer organizations started writing and demonstrating articles related to consumer rights on a large scale. Consumer groups were formed for this. There was a huge increase in the number of consumer parties in India.

As a result of all these efforts, the movement succeeded in putting pressure on both the business companies and the government to rectify unfair business practices, against the interests of the consumers at large.

Question.3. Explain the need for consumer consciousness by giving two examples.
Answer. Consumer awareness is needed because of the following reasons :

  1. Consumer awareness is also needed because unscrupulous businessmen start playing with the lives of common people for their little profit. Like adulteration in various food items – milk, ghee, oil, butter, khoya and spices etc., which has a bad effect on the health of the common man. For this reason, consumer awareness is necessary so that traders cannot play with our health.
  2. Consumer awareness is necessary because both producers and traders can do any wrong thing by being motivated by their selfishness. For example, they may give defective goods, weigh less, charge more for their services, etc. Due to the greed of money, the prices of essential commodities increase a lot from time to time.

Question.4. Mention a few factors which cause exploitation of consumers.
Answer. Traders, shopkeepers and producers exploit the consumers in many ways. Some of the major methods are listed below-

  1. Incomplete or wrong information : Many producers exaggerate the quality of their goods and write on the packet, due to which the consumers get cheated. When they use such things, they get the opposite and feel cheated.
  2. Unsatisfactory Service : There are many items which need service for a long time after purchase, such as coolers, fridges, washing machines, scooters and cars etc. But the promises made to the consumer at the time of purchase are not fulfilled after purchase. Sellers and producers harass the consumers by putting the responsibility on each other
  3. Artificial Scarcity : Being greedy, sellers suppress many things even when they are there. Due to this artificial scarcity of goods is created in the market. Later, the shopkeepers earn profit by selling the same goods at higher prices. In this way, the producers, sellers and traders exploit the consumers in various ways.
  4. Substandard goods : Some unscrupulous producers start selling substandard goods in the market with the aim of collecting quick money. The shopkeeper also gives substandard goods to the customer because by doing so he gets more profit.
  5. Weighing or measuring less : Many clever and greedy shopkeepers try to cheat the customers by less weighing or less measuring different types of things.
  6. Higher price : Some shopkeepers try to increase their profit by selling things at higher prices, where the selling price is not written on them.
  7. Adulteration : Greedy producers do not desist from adulteration of food items like ghee, oil, butter, spices etc. to increase their profit. In such a situation, the consumers suffer a double loss. Firstly, they have to pay a higher price for inferior goods, and secondly, their health is also harmed.
  8. Ignoring safety measures : Some manufacturers do not follow safety rules while making various items. There are many things that need special care from the safety point of view, such as a faulty safety valve in a pressure cooker can lead to a fatal accident. In such a situation, the producers sell deadly devices because of a little greed.

Question.5. What is the rationale behind the enactment of Consumer Protection Act 1986?
Answer. The need for the creation of the Consumer Protection Act, 1986 arose due to the following reasons:

  1. Business is a means of human welfare : Business is a part of society. That’s why it is its religion to serve a large section of the society i.e. the consumers. In fact, the welfare of the business lies in the service of the consumer. Neglecting the interests of the consumers is the death of business.
  2. Development with Social Justice : Our constitution declares that India is a socialist, secular, democratic state. The cornerstone of our economic philosophy is development with social justice. Hence exploitation of consumers is against our Directive Principles and Policies.
  3. Single Vs. Multi Purpose Business : The responsibility is towards different people. Consumers are the main among them. Business is both a social and an economic institution. So profit making is not the sole objective of business. Business, being a part of the society, cannot ignore the important part of the society, the consumers.
  4. Ignorance of the consumers : Generally the consumers are innocent and ignorant. They do not have knowledge of the type of object, its elements and characteristics. These things can be bad, substandard and fatal to health. Therefore it is the responsibility of the administration to protect the interests of the consumers.
  5. The principle of ‘buyer beware’ is out of date : earlier it was thought that the seller is unscrupulous and evil. Therefore, it is the responsibility of the buyer to be smart and alert himself and not give an opportunity to the seller to cheat him. After the industrial revolution, there has been a change in the environment. Division of labour, specialization and mass production have taken place. Consumer prudence has been replaced by consumer dominance.

Theoretically the consumer’s empire has been accepted, but practically the consumer is the victim of exploitation of the production.

Question.6. Describe some of your duties as consumers if you visit a shopping complex in your locality.
Answer. Following are some of our duties as a consumer while visiting the market in our area –

  1. The consumer should be aware of the quality : While purchasing the goods, the buyer should buy standardized and certified goods. This standard is ISI. , Agmark, Woolmark, F.P.O. etc. can happen. Consumer precautions will protect him/her from contaminated, adulterated and counterfeit goods.
  2. Advertisements often present things in an exaggerated manner : advertisements should not be trusted blindly. If the actual item does not have the advertised characteristics, the advertiser should be informed about the same.
  3. Cash receipt must be taken : It is necessary for the buyer to take the receipt from the seller as proof of purchasing the item, otherwise he will neither have any proof of purchasing the item nor can any remedy be done. .
  4. Consumers must exercise their rights : Consumers have the right to choose protection, to be informed, to be heard, to get education and to seek remedy. Consumers should be aware of these rights and exercise these rights in times of distress.
  5. Consumers should be careful : Before buying the commodity, the consumer should get all the information related to the commodity and should test the veracity of that information at his own discretion. He should not be 100% dependent on the seller.
  6. Complaints should be lodged for redressal of due grievances : Sometimes the consumer, despite being cheated by the seller, does not lodge the complaint because the amount of loss is small. This nature of consumers encourages corrupt sellers. Often, some consumers claim an amount much higher than the actual loss, which is unwarranted.

Question.7. Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark you will have to look for and why?
Answer. While buying a bottle of honey and a packet of biscuits, we have to see the Agmark mark on it. AGMARK is the standard mark for agricultural products. It is important to see this while purchasing food items. Because these marks help in ensuring good quality. These certificates, controlled and issued by consumer organizations, are permitted to be used by producers only if they comply with certain quality standards.

Question.8. What legal measures were taken by the government to empower the consumers in India?
Answer. 1. Legislative Measures : The following statutory measures have been taken to empower the consumer :
(i) Essential Commodities Act 1955
(ii) Consumer Protection Act 1986
(iii) Official Standard Description Act, 1976
(iv) Prevention of adulteration in food articles Act,1954
2. Administrative Measures : To increase the supply of consumers, the government has started the Public Distribution System. It is expected that this will check black marketing, hoarding and overcharging by manufacturers and traders to some extent.
3. Technical Measures : Standardization of the product comes under this measure. The Indian Standards Act, 1980 has been passed in India. Under this, arrangements have been made to provide specific marks to the products, such as ISI, BIS etc.

Question.9. Mention some of the rights of consumers and write a few sentences on each.
Answer. The rights of consumers are described in the Consumer Protection Act of 1986 and the amendments in 1991 and 1993. Following are the main rights of the consumers-

  1. Right to be heard : Consumers have the right to seek redressal against unfair treatment and exploitation. If any damage is done to a consumer, then he has the right to get compensation based on the quantum of damage. To accomplish this task, the right of hearing has been given to all the consumers.
  2. Right to consumer education : Every consumer has the right that the government should keep trying to keep them aware of their rights. He should be aware of the merits and demerits of various items available in the market so that he can use that information before buying the items.
  3. Right to presentation : Every consumer has the right to present his problems in front of various institutions and organizations and these organizations can help him in solving his problems.
  4. Right to safety : Consumers have been given the right to protect themselves from the sale of all such goods, which may be harmful to their life and property.
  5. Right to Information : The consumer has been given the right to get every information regarding the quality, quantity, purity and price etc. of every item purchased so that he can save himself from exploitation.
  6. Right to choose : Every consumer has the right to choose the thing according to his wish from a variety of items after seeing and paying the right price.

Question.10. By what means can the consumers express their solidarity?
Answer.

  1. Consumers can form associations (organizations) and forums, they can use them to protect their rights.
  2. (ii) They can engage with the committees related to consumer protection and participation by the government, exercise the right to information and get complete information from the government / department.
  3. Can take membership of labor unions (trade unions) formed by various departments and servants.
  4. They can protest, campaign and picket against the wrongdoings of unscrupulous producers, distributors, shopkeepers, traders, nursing homes, hospitals, educational institutions.
  5. They can also take recourse to legal experts, lawyers and police and consumer courts.
  6. (vi) They can compel the owners/managers of factories and industries to pay full salary or wages.

Question.11. Critically examine the progress of consumer movement in India.
Answer. A critical description of consumer movement in India is as follows :

  1. The consumer movement in India started due to the dissatisfaction among the consumers, as the sellers were involved in many unfair practices.
  2. Before 1986, there was no legal system available in the country at large to protect the consumer from exploitation in the market.
  3. It took many years for various organizations in India to bring awareness among people. Both the shopkeepers and producers of our country used to shirk the entire responsibility of ensuring the quality of goods and services for the consumers.
  4. Due to extreme food shortage, hoarding, black marketing, adulteration of food items and edible oil, a systematic consumer movement emerged in the 1960s.
  5. By the 1970s, consumer organizations had started publishing articles related to consumer rights in newspapers and organizing exhibitions on a large scale. He formed a consumer team to keep an eye on the unfair practices in Ration Bheor shops. In recent years there has been a huge growth in consumer parties in India.
  6. A major step was taken by the Government of India in 1986 by passing a law called the Consumer Protection Act or COPRA.

Question.12. Match the following:
NCERT Solutions Economics Class 10 Chapter 5 Q.12 tableAnswer.  (i)- (e), (ii)- (c), (iii)- (a), (iv)- (b), (v)- (f), (vi)- (d)

Question.13. Say True or False.
(i) COPRA applies only to goods.
(ii) India is one of the many countries in the world which has exclusive authorities established for consumer disputes redressal.
(iii) When a consumer feels that he has been exploited, he must file a case in the District Consumer Commission.
(iv) It is worthwhile to move to consumer commissions only if the damages incurred are of high value.
(v) Hallmark is the certification maintained for standardisation of jewellry.
(vi) The consumer redressal process is very simple and quick.
(vii) A consumer has the right to get compensation depending on the degree of the damage.
Answer. (a) False, (b) True, (c) True, (d) False, (e) True, (f) True, (g) True.

ADDITIONAL PROJECTS/ACTIVITIES

Project.2. Mrs. Krishna bought a colour television (CTV) against a six month warranty. The CTV stopped working after three months. When she complained to the dealer/ shop where it was purchased, they sent an engineer to set it right. The CTV continues to give trouble and Mrs Krishna no longer gets any reply to the complaint she made to the dealer / shop. She decides to write to the Consumer Commission in her area.

Write a letter on her behalf. You may discuss it with your partner / group members before you write it.
Answer.
To,
The Chairman
District Consumer Forum
District – Rewa
Subject: Regarding the negligence of the seller of color television.
Sir,
It is a humble request that I had purchased a color television from Shree Electronics, Rewa on 12th March, 20____ with 6 months warranty, but this television got damaged after three months. I complained about this to the seller concerned. In response they sent an engineer to fix it, but this television has been having frequent problems. I complained to the seller several times, but there was no response to my complaints. Therefore, in this regard, you are
requested to help me by registering my complaint and guiding me for proper action in this direction.
Enclosed: Bill for purchase of color television

Applicant
Mrs. Krishna
Date: April 6, 20____
Address – A- 46, Civil Lines, Rewa