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Chapter 8: Marketing Balbharati solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 8: Marketing

Select the correct option and rewrite the statement.

1. The term market is derived from the ____________ word 'Mercatus'

French
Latin
Italian

Solution: The term market is derived from the Latin word 'mercatus'.

2. In the ____________ concept of market, the emphasis is given on 'buying and selling of goods or services'.

Place
Exchange
Customer

Solution: In the Exchange concept of market, the emphasis is given on 'buying and selling of goods or services'.

3. Perishable goods such as vegetables, fruits, milk products, etc. are sold in Market

Very Short Period
Short Period
Long Period

Solution: Perishable goods such as vegetables, fruits, milk products, etc. are sold in the Market - Very Short Period.

4. The retail market is the market where the retailer sells goods directly to the____________in small quantities.

Producer
Wholesaler
Consumer

Solution: The retail market is the market where the retailer sells goods directly to the Consumer in small quantities.

Match the pair

Question Table:

Group A	Group B
Market	Single Seller
Registered brands	Stock Market
Monopoly	Distinct Name
Branding	Mercatus
Digital Marketing	Single Buyer
	ISI
	Trademark
	Use of traditional media
	Multiple sellers
	Use of digital media

Solution:

Group A	Group B
Market	Mercatus
Registered brands	Trademark
Monopoly	Single seller
Branding	Distinct Name
Digital Marketing	Use of digital media

Write a word/term/phrase for the following sentence.

1. The market for the commodities which are produced in one country and sold in another countries.

Solution: International Market

2. Type of market where durable commodities that are generally non-perishable in nature are sold.

Solution: Long-period market

3. The market where goods are sold to the ultimate consumers or the users of the product.

Solution: Retail Market

4. Two sellers, selling either a homogeneous product or a differentiated product.

Solution: Duopoly

5. Giving of distinct name to one's product.

Solution: Branding

State whether the following statement is true or false.

1. The term market is derived from the Latin word 'Mercatus'.

Solution: True

2. The market may be defined as aggregate demand by potential buyers for a product or service.

Solution: True

3. The market for the commodities which are produced in one country and sold in other countries is known as the national market.

Solution: False

4. In the wholesale market, sellers are known as retailers and buyers are known as a wholesaler.

Solution: False

5. Regulated Market operates according to forces of demand and supply.

Solution: False

Find the odd one.

1. Primary Market, Secondary Market, Retail Market, Terminal Market

Solution: Retail Market

2. Stock Exchange, Foreign Exchange, Bullion Market, Manufactured Goods Market

Solution: Manufactured Goods Market

3. Price, People, Promotion, Product

Solution: People (The others are part of the 4Ps, People is part of 7Ps)

4. People, Promotion, Physical Evidence, Process

Solution: Promotion (The others are the additional 3Ps of Service Marketing)

Complete the sentence.

1. ____________ is the place where transactions of buying and selling of goods and services take place in exchange for money or money's worth.

Solution: Market

2. ____________ refers to a market situation when there is a single buyer of a commodity or service.

Solution: Monopoly

3. ____________ is a slip which is found on the product and provides all the information regarding the product and its producer.

Solution: Label

Select the correct option and complete the table.

(Mercatus, Industrial goods, Oligopoly, E. Jerome McCarthy, Booms & Bitner)

Group 'A'	Group 'B'
Commodity Market	(1) __________________
(2) __________________	A few sellers
(3) __________________	To trade merchandise
4Ps	(4) __________________
(5) __________________	3Ps

Solution:

Group 'A'	Group 'B'
A) Commodity Market	1) Industrial Goods
B) Oligopoly	2) A few sellers
C) Mercatus	3) To trade Merchandise
D) 4Ps	4) E. Jerome McCarthy
E) Booms & Bitner	5) 3Ps

Answer in one sentence.

1. What do you mean by 'Local Market'?

Solution: The market for the commodities which are sold within local geographical limits of a region is known as a local market.

2. What do you mean by 'Regulated Market'?

Solution: The regulated market refers to the markets regulated by statutory provisions of the country. For example, Commodity Exchanges, Stock Exchanges, Foreign Exchanges.

3. Define Market.

Solution: In simple words, a market is the place where two or more parties are involved in buying and selling. These two parties involved in the transactions are called buyers and sellers.

4. What do you mean by standardization?

Solution: Standardization means to determine standards related to process, size, quality, design, weight, color, etc. of the product. It helps in ensuring uniformity in the quality of the product.

5. What do you mean by Branding?

Solution: Branding is a process of giving special identity to a product through a unique brand name to differentiate it from competitor's products.

Correct the underlined word and rewrite the following sentence.

1. Commodity Market refers to the market for borrowing and lending long term capital required by the business.

Solution: Capital market refers to the market for borrowing and lending long term capital required by the business.

2. In a duopoly, there is a single seller.

Solution: In Monopoly there is a single seller.

3. Pricing bridges the time gap between the production and sale of goods.

Solution: Warehousing bridges the time gap between the production and sale of goods.

4. Branding is the process of classification of products according to similar characteristics and/ or quality.

Solution: Grading is the process of classification of products according to similar characteristics and/ or quality.

5. Grading helps in avoiding breakage, damage and destruction of the product.

Solution: Packaging helps in avoiding breakage, damage and destruction of the product.

Arrange in proper order

1. Local market, international market, national market.

Solution: Local market, national market, international market.

2. Grading, Market Planning, Distribution.

Solution: Market Planning, Grading, Distribution.

Explain the following term/concept.

1. Market

Solution: The term market is derived from the Latin word 'Mercatus', which means 'to trade', 'to trade merchandise' or 'a place where the business is transacted'. In simple words, market is the place where two or more parties are involved in buying and selling. These two parties involved in the transactions are called buyers and sellers.

2. Place Concept of Market

Solution: The term market is commonly understood as the place where the transaction of buying and selling of goods and services takes place in exchange for money or money's worth. It is the place where buyers, sellers, and other intermediaries come together and exchange goods or services. In the age of information technology, the term 'market' has a wider meaning than just a place.

3. Commodity Concept of Market

Solution: In the commodity concept of the market, the emphasis is given on 'buying and selling of goods or services'. In this concept, the process of buying and selling of goods or services is important and not the place of exchange.

4. Digital Concept of Market

Solution: Digital Market can be defined as a "Market which uses Information Technology for buying and selling of the products or services and facilitate communication of quality, features, price, and terms of exchange among them". E-Commerce portals and mobile apps are examples.

5. Product

Solution: Product refers to the goods or services that are offered to the customers for sale and are capable of satisfying the need of the customer. The product can be intangible or tangible, as it can be in the form of services or goods.

6. Price

Solution: The price of the product is basically the amount that a customer pays for the product. Price plays an important role in creating demand for the product. The cost of the product and willingness of the customer to pay for the product plays an important role in pricing.

7. Promotion

Solution: Promotion is a tool of marketing communication that helps to publicize the product to the customer. It helps to convey product features to the potential buyer and inducing them to buy it. It includes advertising, direct marketing, sales promotion, etc.

8. Marketing Mix

Solution: Marketing Mix is the combination of different marketing variables that the firm blends and controls to achieve the desired result from the target market. It involves the 4Ps (Product, Price, Place, Promotion) and for services, the additional 3Ps (People, Process, Physical Environment).

9. Packaging

Solution: Packaging means designing the package for the product. It helps to avoid breakage, damage, and destruction of the product. Packing material includes bottles, containers, plastic bags, etc.

10. Labeling

Solution: A label is a slip which is found on the product and provides all the information regarding the product and its producer. The process of attaching this slip is called labeling.

Study the following case/situation and express your opinion

Case 1: Mr. X purchases goods from the nearest shop. Mr. Y purchases mobiles from Tokyo. Mr. Z of Nandurbar purchases electronic goods from Delhi.

From which type of market does Mr.X purchase?
Name the type of market from where Mr.Y deals?
State the type of market from where Mr.Z purchases goods?

Solution:

Mr. X purchases goods from the local market.
Mr. Y deals in the International market (foreign market).
Mr. Z purchases goods from the National market.

Case 2: Mr. X deals in import and export business so he needs different foreign currencies. For the expansion of his business, he borrows money from the bank. He invests his funds in the equity shares.

Name the market from where does Mr.X borrow money?
Name the market where does Mr. X invests his funds?
Which type of currency is required for the international market?

Solution:

Mr. X borrows money from the Capital market.
Mr. X invests his funds in the Regulated market (Stock Exchange).
The different Foreign currency is required by Mr. X for the international market.

Answer in Brief

1. Explain in detail the significance of marketing to society.

Solution:

The significance of marketing to society is explained as follows:

1) Increase in Standard of Living:

The prime objective of marketing is to provide goods and services to customers to satisfy their needs. Paul Mazur defined marketing as, "The delivery of standard of living to the society". Marketing helps to identify the needs of the customers and take an initiative to provide quality goods at cheaper prices.

2) Provides Employment:

Modern marketing covers almost all functions of an organization such as buying, selling, financing, transport, warehousing, etc. To run this system there is a need for people. Thus, marketing gives job opportunities.

3) Decreases Distribution Costs:

Effective utilization of channels of distribution can help in reducing the cost prices of the products and services. The reduction of cost will help to increase the potential consumers for the products or services.

4) Consumer Awareness:

Marketing helps society by informing and educating consumers. Marketing helps consumers to know about new products and services available in the market and its usefulness.

5) Increase in National Income:

Every economy revolves around marketing, production, and finance to the industry. The scientifically organized marketing activities help in the economic development of the country.

6) Managing Consumer Expectations:

Marketing research helps organizations to understand the needs of the consumers. It helps in developing the products which fulfill customer's expectations.

2. Explain the 4Ps of the product marketing mix.

Solution:

1) Product:

Product refers to the goods or services that are offered to the customers for sale and are capable of satisfying the need of the customer. The product can be intangible or tangible.

2) Price:

The price of the product is basically the amount that a customer pays for the product. Price plays an important role in creating demand for the product.

3) Place:

The place is also known as a distribution channel. Business needs to distribute the product in a place that is accessible to potential buyers.

4) Promotion:

Promotion is an important element of marketing as it creates brand recognition and sales. It helps to convey product features to the potential buyer and inducing them to buy it.

3. Explain 3Ps in the marketing of services.

Solution:

1) People:

People comprise of all the human beings that play an active role in offering the product or service to the customer. The right people in the right place add value to the business.

2) Process:

Process refers to the steps involved in delivering products and services to the customer. Processes are important to deliver a quality service.

3) Physical Environment:

Physical Environment refers to the marketing environment wherein the interaction between customer and firm takes place. In the service market, physical evidence is important to ensure that the service is successfully delivered (e.g., location, interior design, branding).

4. Explain types of the market on the basis of the area covered.

Solution:

a) Local Market:

The market for the commodities which are sold within local geographical limits of a region is known as a local market.

b) National Market:

The market for the commodities which are sold within the country is known as the national market.

c) International Market:

The market for the commodities which are produced in one country and sold in other countries is known as the international market.

5. Explain types of the market on the basis of time.

Solution:

a) Very Short Period Market:

This type of market has a very short time existence viz., for a few hours or for a day. Perishable goods such as vegetables, fruits, milk products, etc. are sold.

b) Short Period Market:

This type of market has existed for a short period viz. weekly markets, festival market, etc. Perishable or semi-durable goods are sold.

c) Long Period Market:

This type of market has existed for long period. In this type of market durable commodities that are generally non-perishable in nature are sold.

Justify the following statement.

1. Marketing is significant to consumers.

Solution:

Promotes Product Awareness: Helps consumers know about different products and services available.
Provides Quality Products: Competition creates moral pressure to provide quality goods.
Provides Variety of Products: Creates options for consumers.
Helps in Selection: Helps the consumer to choose the best products from different options.
Consumer Satisfaction: Leads to satisfaction through honest advertising and quality assurance.
Regular supply of goods: Maintains balance between demand and supply, resulting in stable prices.

2. Promotion plays an important role in marketing.

Solution:

Promotion informs and persuades potential buyers to buy products.
It increases brand awareness and recognition in the market.
Promotional strategies depend on budget and target market.
It helps attract consumers, increase sales, and consequently increase profits.
It creates a brand image and helps build a loyal customer base.

3. The market can be classified on the basis of competition.

Solution:

(1) Perfect market: Large numbers of buyers and sellers selling homogeneous products at a single uniform price.

(2) Imperfect market: Characterized by market imperfections. Sub-divided into:

Monopoly: Single seller selling a unique product.
Duopoly: Two sellers dominating the market.
Oligopoly: Few sellers selling homogeneous or differentiated products.
Monopsony: Single buyer controlling the market.

4. Marketing helps in increasing consumer awareness.

Solution:

Marketing activities promote products and services, making consumers aware of features and usefulness.
It educates consumers, helping them make informed decisions.
Consumers can compare products based on price, quality, and availability.
It informs consumers about major changes like mergers or new product launches.

5. There is a need for branding to get recognition among consumers.

Solution:

Branding gives a distinctive identity to a product (e.g., name, symbol).
Effective brands increase business value and ensure customer loyalty.
Branding facilitates advertising and price control.
It creates trust and a professional image in the market.

Attempt the following.

1. Give classification of the market in detail on the basis of 'Volume of Transaction'

Solution:

a) Wholesale Market:

Buying and selling goods in large quantities at cheaper prices. Goods are sold to retailers. Sellers are wholesalers and buyers are retailers.

b) Retail Market:

The market where the retailer sells goods directly to the consumer in small quantities.

2. Give classification of the market on the basis of 'Time'

Solution:

a) Very Short Period Market:

Exists for a few hours/day. Selling perishable goods (vegetables, milk).

b) Short Period Market:

Exists for a short period (weekly markets, fairs). Selling perishable or semi-durable goods.

c) Long Period Market:

Exists for a long period. Selling durable commodities.

3. Explain packaging and labeling

Solution:

Packaging: Designing the package to avoid breakage and damage. Includes bottles, containers, etc. It acts as a marketing tool.

Labeling: A slip on the product providing information about the product and producer. It creates the first impression on the consumer.

4. Explain standardization and grading.

Solution:

Standardization: Determining standards related to size, quality, design, etc., ensuring uniformity.

Grading: Classification of products according to similar characteristics (size, shape, quality). Common in agricultural products.

5. Explain the importance of marketing to the firm.

Solution:

Increases Awareness: Creates brand image among consumers.
Increases Sales: Attracts customers, leading to profit generation.
Creates Trust: Builds customer loyalty and reputation.
Basis for Making Decisions: Helps in solving complex business problems (what/how/when to produce).
Source of New Ideas: Feedback helps improve existing products.
Tackling the Competition: Helps create a brand image in a competitive market.

Answer the following.

1. Define Marketing and explain in detail the concepts of marketing.

Solution:

Definition: According to American Marketing Association, "Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."

Concepts of Marketing:

Place concept: Market as a place where buying and selling happens.
Commodity Concept: Emphasis on the buying and selling process of goods/services, not the place.
Exchange concept: Emphasis on free consent, mutual trust, and voluntary exchange.
Area concept: Related to exchange; buyers and sellers fix prices within a certain area (not necessarily meeting in person).
Demand/Customer concept: Market defined by aggregate demand of potential buyers.
Digital concept: Using IT (E-Commerce, Apps) for buying and selling.

2. Explain different types of markets in detail.

Solution:

1) On the Basis of Area Covered

Local Market: Within local geographical limits.
National Market: Within the country.
International Market: Produced in one country, sold in others.

2) On the Basis of Time

Very Short Period: Few hours/day (Perishable goods).
Short Period: Weekly/festivals (Semi-durable/perishable).
Long Period: Durable commodities.

3) On the Basis of Volume of Transaction

Wholesale Market: Bulk purchase/sale.
Retail Market: Direct sale to consumers in small quantities.

4) On the Basis of Importance

Primary Market: Agricultural/forest products.
Secondary Market: Semi-processed goods (yarn, iron ore).
Terminal Market: Goods sold to ultimate consumers.

5) On the Basis of Nature of Goods

Commodity Market: Consumer and industrial goods.
Capital Markets: Borrowing/lending long term capital.

6) On the Basis of Regulation

Regulated Market: Controlled by statutory provisions (Stock Exchange).
Unregulated/Free Market: Operates on demand and supply.

7) On the Basis of Competition

Perfect Market: Large buyers/sellers, homogeneous products, single price.
Imperfect Market: Monopoly, Oligopoly, etc.

3. Explain in detail the 7Ps of Marketing.

Solution:

Product: Goods/services offered to satisfy customer needs. Can be tangible or intangible.
Price: Amount paid by customer. Determines demand and profitability.
Place: Distribution channel. Making product available to potential buyers.
Promotion: Marketing communication (Advertising, Sales promotion) to persuade buyers.
People: Human beings playing an active role in service delivery (employees).
Process: Steps involved in delivering products/services. Ensures efficiency and quality.
Physical Environment: Tangible elements in service marketing (location, layout, decor) that enhance customer experience.

4. Explain the functions of marketing in detail.

Solution:

Marketing Research: Collecting and analyzing information to identify customer needs.
Buying and Assembling: Collecting raw materials from different sources.
Market Planning: Organizing marketing objectives and strategies.
Product Development: Designing products to suit consumer needs (quality, shape, design).
Standardisation and Grading: Ensuring uniformity and classifying products by quality/size.
Packaging and Labelling: Designing packages for protection and labels for information.
Branding: Giving a special identity/name to the product.
Customer Support Service: Providing after-sales support to gain loyalty.
Pricing of Product: Deciding the price based on cost and utility.
Promotional Channels: Informing consumers through ads, personal selling, etc.
Distribution: Movement of finished goods to consumers.
Transportation: Physical movement creating place utility.
Warehousing: Storing goods to create time utility.

5. Explain the importance of marketing to society and consumers.

Solution:

Importance to Society:

Increase in Standard of Living: Delivering better living standards.
Provides Employment: Jobs in buying, selling, transport, etc.
Decreases Distribution Costs: Makes goods cheaper.
Consumer Awareness: Educates consumers.
Increase in National Income: Boosts economic development.
Managing Consumer Expectations: Fulfills needs through research.

Importance to Consumers:

Promotes Product Awareness: helps in buying decisions.
Provides Quality Products: Moral pressure on businesses.
Provides Variety of Products: More options for consumers.
Helps in Selection: Choosing the best from competitors.
Consumer Satisfaction: Through honest advertising and quality.
Regular supply of goods: Stabilizes prices.

Chapter 7: Consumer Protection Balbharati solutions for Organisation of Commerce and Management (OC) 12th Standard HSC Maharashtra State Board

Chapter 7: Consumer Protection

Select the correct answer and rewrite the sentence.

In India, the consumer protection act was initiated in the year ____________.

1947

1989

1986

Solution: In India, the consumer protection act was initiated in the year 1986.

The President of the District Commission is a ____________.

District Judge

High Court Judge

Supreme Court Judge

Solution: The President of the District Commission is a District Judge.

The main objective of the consumer organization is to protect the interest of the ____________.

Consumer

trader

producer

Solution: The main objective of the consumer organization is to protect the interest of the Consumer.

____________ is the highest authority to settle the consumer dispute under Act.

State Commission

National Commission

District Commission

Solution: The National Commission is the highest authority to settle the consumer dispute under Act.

The Government has established ____________ to settle the consumer disputes by compromise.

District Commission

Lok Adalat

Consumer organisation

Solution: The Government has established Lok Adalat to settle the consumer disputes by compromise.

The National Commission has ____________ members.

Solution: The National Commission has 4 members.

District Commission entertains complaints of the consumer for compensation which is less than ____________

one crore

ten lacs

ten crore

Solution: District Commission entertains complaints of the consumer for compensation which is less than one crore.

____________ is celebrated as World Consumer Day.

24th December

26th January

15th March

Solution: 15th March is celebrated as World Consumer Day.

In the modern competitive market, consumers are regarded as the ____________.

king

Agency

Owner

Solution: In the modern competitive market, consumers are regarded as the king.

Match the pair.

Group A	Group B
A) King of the market	1) 1930
B) National Commission	2) Socialist
C) Mumbai Grahak Panchayat	3) Exceeds Rs. ten crore
D) Sale of Goods Act	4) Non-Government Organization
E) Consumer Right	5) Consumer
	6) Legislative Measures
	7) Exceeds Rs. One crore but does not exceed Rs. ten crores.
	8) 1956
	9) Consumer Protection Act
	10) Right to information

Solution:

Group A	Group B
A) King of the market	5) Consumer
B) National Commission	3) Exceeds Rs. ten crore
C) Mumbai Grahak Panchayat	4) Non-Government Organization
D) Sale of Goods Act	1) 1930
E) Consumer Right	10) Right to information

Give one word/phrase/term for the following sentence.

The commission which entertains cases where the value of the goods or services paid as consideration does not exceed Rs. one crore.

Solution:

The commission which entertains cases where the value of the goods or services paid as consideration does not exceed Rs. one crore. - District Commission

A legal action initiated in a court of law regarding a matter of general public interest.

Solution:

A legal action initiated in a court of law regarding a matter of general public interest. - Public Interest Litigation

Organizations aim at promoting the welfare of the people.

Solution:

Organizations aim at promoting the welfare of the people. - Non-Government Organizations.

The right of the consumer which is about safety and protection to his life and health

Solution:

The right of the consumer which is about safety and protection to his life and health. - Right to safety

One who consumes or uses any commodity or service.

Solution:

One who consumes or uses any commodity or service. - Consumer

State whether the following statements are true or false.

The seller has to recognize the rights of the Consumer.

True

False

The Consumer Protection Act provides protection to the producer.

True

False

Consumer Protection Act is not required in India.

True

False

Lok Adalat can rightly be described as "People's Court".

True

False

The consumer, being the king of the market, does not have any responsibility.

True

False

Find the odd one.

District Commission

State Commission

NGO

National Commission

District Judge

High Court Judge

Commissioner

Supreme Court Judge

Complete the sentence.

The National Commission is to be established by the ________ Government.

Solution:

The National Commission is to be established by the Central Government.

Any person who does not agree with the decision of the District Commission can appeal to the__________________.

Solution:

Any person who does not agree with the decision of the District Commission can appeal to the State Commission.

State commission has ____________members.

Solution:

State commission has four members.

The President of the National Commission is a ____________ judge.

Solution:

The President of the National Commission is a Supreme Court judge.

National Commission entertains complaints of the consumer for compensation that exceeds Rs __________________.

Solution:

National Commission entertains complaints of the consumer for compensation that exceeds Rs ten crore.

The consumer protection Act established ____________ Tier quasi-judicial systems for consumer protections exists.

Solution:

The consumer protection Act established three Tier quasi-judicial systems for consumer protections exist.

Select the correct option and complete the following table.

(High court Judge, Four, Consumer Organisations, does not exceeds Rs. one crore, 2019)

Group A	Group B
1) Amount of compensation in District Commission	A. __________________
2) __________________	B. State Commission
3) Consumer Protection Act.	C. ____________
4) __________________	D. non-profit and non Political organisation
5) Member National Commission	E. ____________

Solution:

Group A	Group B
1) Amount of compensation in District Commission	A. Does not exceed Rs. one crore
2) High court Judge	B. State Commission
3) Consumer Protection Act.	C. 2019
4) Consumer Organizations	D. non-profit and non Political organization
5) Member National Commission	E. Four (4)

Answer in one sentence.

When do we observe a National Consumers Day?

Solution:

24th December is observed as 'National Consumer Day

Who is the consumer?

Solution:

A Consumer means any person who buys any goods, hires any service or services for a consideration which has been paid or promised or partly paid or partly promised or under any system of deferred payments.

What information one should check before buying a product?

Solution:

Adequate information about all aspects of goods and services like price, name of the manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual and safety instruction, etc. Should be checked before buying a product.

Which forum is set up at the national level for redressal for consumer complaints?

Solution:

National Consumer Disputes Redressal Commission is the forum set up at the national level for redressal of consumer complaints.

Who shall be appointed as president of the National Commission?

Solution:

A person, who is or has been a Judge of the Supreme Court, shall be appointed by the Central Government as the president of the National Commission in consultation with the Chief Justice of India.

When do we observe World Consumer's Rights Day?

Solution:

15th March 1962 is observed as World Consumer’s Right Day.

Arrange in proper order.

National Commission, District Commission, State Commission.

Solution:

District Commission, State Commission, National Commission.

District Judge, Supreme Court Judge, High Court Judge.

Solution:

District Judge, High Court Judge, Supreme Court Judge.

Correct the underlined word and rewrite the following sentence

An appeal can be filed against the order of the National Commission to the State forum.

Solution:

An appeal can be filed against the order of the National Commission to the Supreme Court.

The National Commission is established by the State Government.

Solution:

The National Commission is established by the Central Government.

The District Commission is also referred to as the People's Court.

Solution:

Lok Adalat is also referred to as People's Court.

In India, sellers are widely dispersed and are not united.

Solution:

In India, Consumers are widely dispersed and are not united.

National Commission entertains complaints where the value of the goods or services paid as consideration does not exceed Rs. one crore.

Solution:

District Commission entertains complaints where the value of the goods or services paid as consideration does not exceed Rs. one crore.

Explain the following term/concept.

District Commission.

Solution:

A consumer dispute redressal commission at each district established by The State

Government is known as the District Commission.

Territorial Jurisdiction - Territorial Jurisdiction of district commission is the entire district in which it is established.

Monetary Jurisdiction - District Commission shall have jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed Rs. one crore.

National Commission.

Solution:

A consumer dispute redressal forum at the National level established by the Central

The government by notification is known as the National Commission. It is also called as the National

Consumer Disputes Redressal Commission.

Territorial Jurisdiction - It can entertain original cases as well as appeals against the order of State

The commission which is within the geographical limits of the state.

Monetary Jurisdiction - to entertain complaints where the value of the goods or services paid as consideration exceeds Rs. ten crores.

State Commission.

Solution:

A consumer dispute redressal commission at the state level established by the State

The government is known as the State Commission. It is also called the State Consumer Disputes Redressal Commission.

Territorial Jurisdiction - It can entertain original cases as well as appeals against the order of the District Commission is within the geographical limits of the state.

Monetary Jurisdiction - to entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. one crore, but does not exceed Rs. ten crores.

Lok Adalat.

Solution:

Lok Adalat is an effective and economical system for quick redressal of the public grievances.

It can also be referred to as 'People's Court'. It is established by the government to settle disputes by compromise.

The aggrieved party can directly approach Adalat with a grievance, and issues are discussed on the spot, and decisions are taken immediately. Resolution of disputes by Lok Adalat gets statutory recognition. e.g. MSEDCL, MSRTC, Railway Authority, Insurance Companies, Banks etc. organize regular Lok Adalat.

Janhit Yachika

Solution:

Janhit Yachika is also known as Public Interest Litigation. Public Interest Litigation means a legal action initiated in a court of law regarding a matter of general public interest. It is a legal facility under which any person can approach the court of law in the interest of society. Its aim is to provide a legal remedy to unrepresented groups of society. The party which is not related to grievance can also file public interest litigation. It is filed in the High Court as well as Supreme Court directly in some cases.

Study the following case/situation and express your opinion.

Mr. Ashok visited a shop to buy a pair of shoes for RS. 700. The salesman forced him to buy a pair of bigger size shoes of the ordinary company by claiming this size would be suitable for him. After reaching home, he discovered that shoes are still too big for him. He complained about the shoes to the shopkeeper. It was denied by the shopkeeper to replace the shoes despite the availability of stock.

In the above case,

i) Which right has been violated?

ii) Comment on the right which has been violated.

iii) Where can Mr. Ashok file his complaint?

Solution:

In the above case, the Right to Choose has been violated.

In India, the choices are available to consumers to select goods and different services like telecommunications, travel and tourism, banking, electronics, consumer goods, etc. According to the right to choose, a consumer should be given full liberty to select an article as per his requirements, liking, and purchasing capacity. The seller cannot force or compel the customer to buy specific products or services In this manner monopoly is avoided and prevented.

According to the Right to be Heard, Mr. Ashok can lodge a complaint to the consumer forum. Mr. Ashok can also file an online complaint through the portal or mobile applications to the trader as well as to the appropriate consumer commission or forum.

Study the following case/situation and express your opinion.

Mrs. Meera a resident of Nagpur District bought a washing machine worth Rs. 50,000 without cash memo with a warranty period of 2 years. After 1.5 years she noticed some defect and asked the company to repair or replace it. The company did not accept her complaint despite the defective product.

In the above case,

i) Suggest suitable redressal machinery to protect her right.

ii) If she is not satisfied with the decision given by redressal machinery, where should she appeal?

iii) What was the negligence of Mrs. Meera while buying the washing machine?

Solution:

According to Right to Redressal, Mrs. Meera should file a complaint about the fair settlement of the claim. This right enables Mrs. Meera to demand repair or replacement or compensation for defective products i.e., in the above case washing machine supplied. Three-tier quasi-judicial consumer dispute redressal machinery is established for the settlement of the claim. Mrs. Meera can file a complaint in the District Commission established in her district as the value of machinery does not exceed 1 crore.

If Mrs. Meera is not satisfied that the order or judgment was given by the District Commission, then she can appeal against such order to the State Commission within 45 days from the date of such order, in such form and manner as may be prescribed.

Mrs. Meera did not collect or ask for a cash memo and guarantee/warranty card for a period of 2 years as soon as she purchased the washing machine worth 50,000.

Distinguish between.

District Commission and State Commission.

Solution:

District Commission	State Commission
1. Meaning: A consumer dispute redressal forum at the district level established by the State Government is known as District Commission.	A consumer dispute redressal forum at the State level established by the State Government is known as State Commission.
2. President: A person who is sitting or retired or qualified to be District Judge.	A person who is sitting or retired or Judge of High Court shall be appointed by the State Government as the President of the State Commission.
3. Member: Not less than two and not more than such number of members as may be prescribed, in consultation with the Central Government	Not less than four or not more than a such number of members as may be prescribed in consultation with the Central Government.
4. Membership Tenure: The members can have the membership for a term of five years or up to the age of sixty five years, whichever is earlier.	The members can have the membership for a term of five years or up to the age of sixty seven, whichever is earlier.
5. Area covered It covers a particular district	It covers a particular state
6. Monetary Jurisdiction: To entertain complaints where the value of the goods or services paid as consideration does not exceed Rs. one crore.	To entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. one crore, but does not exceed Rs. ten crores.
7. Appeal: An appeal against the District Commission can be made to the State Commission.	An appeal against the State Commission can be made to the National Commission.

State Commission and National Commission.

State Commission	National Commission
1. Meaning: A consumer dispute redressal forum at the State level established by the State Government is known as State Commission.	A consumer dispute redressal forum at the National level established by the Central Government by notification is known as National Commission.
2. President: A person who is sitting or retired or Judge of High Court shall be appointed by the State Government as the President of the State Commission.	A person who is or has been a judge of the Supreme Court shall be appointed by the Central Government by notification is known as National Commission
3. Member: Not less than four or not more than a such number of members as may be prescribed in consultation with the Central Government.	Not less than four and not more than a such number of members as may be prescribed.
4. Membership Tenure: The members can have the membership for a term of five years or up to the age sixty-seven, whichever is earlier.	The members can have the membership for a term of five years or up to the age of sixty-seven years and president up to seventy years, whichever is earlier.
5. Area covered It covers a particular state	It covers the entire country
6. Monetary Jurisdiction: To entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. one crore, but does not exceed Rs. ten crores.	To entertain complaints where the value of the goods or services paid as consideration exceeds Rs. ten crores.
7. Appeal: An appeal against the State Commission can be made to the National Commission	An appeal against the National Commission can be made to the Supreme Court.

District Commission and National Commission

District Commission	National Commission
1. Meaning: A consumer dispute redressal forum at the district level established by the State Government is known as District Commission.	A consumer dispute redressal forum at the National level established by the Central Government by notification is known as National Commission.
2. President: A person who is sitting or retired or qualified to be District Judge.	A person who is or has been a judge of the Supreme Court shall be appointed by the Central Government by notification is known as National Commission
3. Member: Not less than two and not more than such number of members as may be prescribed, in consultation with the Central Government	Not less than four and not more than a such number of members as may be prescribed.
4. Membership Tenure: The members can have the membership for a term of five years or up to the age of sixty five years, whichever is earlier.	The members can have the membership for a term of five years or up to the age of sixty-seven years and president up to seventy years, whichever is earlier.
5. Area covered It covers a particular district	It covers the entire country
6. Monetary Jurisdiction: To entertain complaints where the value of the goods or services paid as consideration does not exceed Rs. one crore.	6. Monetary Jurisdiction: To entertain complaints where the value of the goods or services paid as consideration exceeds Rs. ten crores.
7. Appeal: An appeal against the District Commission can be made to the State Commission.	An appeal against the National Commission can be made to the Supreme Court.

Answer in brief.

Explain any four needs of consumer protection.

Solution:

In the modern competitive market, the consumer is regarded as the 'King of Market' hence consumer protection is required due to the following reasons:

The need for participation of consumers:

It is noted that business organizations make decisions that affect consumers' interest without consulting the consumer or their organizations.

Only a strong consumer organization can pressurize business organizations to allow consumer participation in the decision-making process.

Lack of information:

It is very difficult to establish direct contact between consumers and manufacturers because consumers live in a dynamic and complex world and they are widely scattered. Today's markets are full of domestic as well as imported products therefore it is very difficult to get correct and reliable information about the product before they purchase.

Ignorance:

The ignorance of consumers is the main cause of exploitation by the business. Consumers in India are mostly ignorant about their rights, market conditions, price levels, and product details. A system is required to protect them from business malpractices.

Unorganized Consumers:

Consumers are widely scattered and are not organized, On the other hand, sellers are in a better position than consumers and they are powerful. Consumers are under the influence of businessmen. An individual consumer cannot fight against these powerful sellers.

Spurious Goods:

There is an increasing supply of duplicate products. It is not possible for an ordinary consumer to distinguish between a genuine product and its imitation. It is necessary to protect consumers from such exploitation by ensuring compliance with prescribed norms of quality and safety standards.

Misleading Advertising:

Some businessmen give misleading information about the quality, safety, and utility of products. Consumers are misled by misleading advertisements and do not know the real quality of advertised goods. A mechanism is needed to prevent misleading advertisements.

Malpractices of Businessmen:

Fraudulent, unethical, and monopolistic trade practices by businessmen lead to the exploitation of consumers. Many times consumers get defective, inferior, and substandard goods and services. Certain measures are required to protect consumers against such malpractices.

Trusteeship:

According to Gandhi, philosophy businessmen are trustees of the society's wealth. Therefore, they should use this wealth for the benefit of people.

State any four rights of the consumer.

Solution:

Some of the rights of consumers are as follows:

Right to Safety:

This right protects consumers against products, production processes, and services which are hazardous to health or life. It includes concern for consumer's long-term interests as well as their immediate requirements. According to this right, the consumer must get full safety and protection to his life and health.

Right to Information:

According to this right, a consumer should be provided with adequate information about all aspects of goods and services like price, name of the manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual, and safety instruction, etc. This right also enables the consumer to select the right product or service.

Right to Choose:

According to this right, a consumer should be given full freedom to select an article as per his requirement, liking, and purchasing capacity. The right to choose is related to the concept of a free-market economy. As per this right, the seller can not compel the consumer to buy a particular product and hence monopoly is prevented.

Right to be heard:

Every business organization should listen and solve the complaints of consumers. According to this right, consumers have the opportunity to voice their complaints to the consumer forum. Consumers also give suggestions to manufacturers or traders on certain matters such as quality, quantity, price, packaging, etc. Nowadays, consumers can file online complaints through the portal or mobile applications.

Right to Consumer Education:

Every consumer has the right to know about consumer rights and solutions to their problems. This right creates consumer awareness. An aware consumer can make a rational choice of goods and services and protect his rights and interests from the exploitation of unscrupulous businessmen. Thus, consumer education becomes a priority concern.

Right to Represent:

The act provides an opportunity for individuals and consumer groups to represent consumer’s interests before the consumer forum. The act allows the consumer to be represented by a person who is not a professional advocate. This provision is in recognition of the consumer's right to represent.

Right to Redress:

This right enables the consumer to demand repair or replacement or compensation for defective products and for poor services. According to the consumer protection Act, three-tier quasi-judicial consumer dispute redressal machinery is established for the settlement of claims such as the District Commission at the District level, State Commission at the state level, and National

Commission at the national level. Consumers are protected from business malpractices.

Right to Healthy Environment:

All consumers have a right to a healthy and clean environment.

According to this right, the consumer can demand actions against the pollution causing business organizations. All consumers have the right to a healthy and clean environment in the present and future.

Right to Protect from unfair business practices:

As per this right, all consumers are protected against unfair business practices such as black marketing, profiteering, faulty weights and measures, exorbitant prices, adulteration, etc.

Right against spurious goods:

This right is against the marketing of goods which are hazardous to health, spurious, and pose a danger to life itself.

Explain any four responsibilities of the consumer.

Solution:

Consumers should exercise their rights and responsibilities while purchasing products or services. These are as follows:

The consumer should use his rights:

Consumers have many rights with regard to the goods and services. They must be aware of their rights while buying.

Cautious consumer:

The consumers should understand their responsibilities while buying goods and services. While buying, the consumer should enquire about the quality, quantity, price, utility of goods and services, etc.

Filing of complaint:

It is the responsibility of a consumer to approach the officer concerned if consumers have some complaints about the goods and services. A delay in the complaint may result in the expiry of guarantee or warranty.

Quality conscious:

The consumers should never compromise on the quality of goods. They should not buy inferior stuff out of greed for less prices. If consumers behave like this, there cannot be any protection for them from any sector. It is also the responsibility of consumers to buy quality goods. The symbols such as ISI, AGMARK, Hallmark, FPO, FASSI, etc. are indicative of the good quality of the goods.

Beware from exaggerating advertisement:

The seller informs the consumer about their goods and services through advertisement. Usually, the sellers exaggerate the quality of their goods in advertisements. Therefore, it is the responsibility of the consumers to identify the truth of advertisement.

The demand for Invoice and Guarantee, Warranty Card:

Consumers should always ask for an invoice for the goods purchased. It is the responsibility of the consumer to check the details mentioned on the guarantee or warranty card. If the goods purchased are of inferior quality, these documents are useful to settle all kinds of disputes with the seller.

Pre-planned buying:

The important responsibility of consumers is that they should not buy in hurry. It means that the consumers should make an estimate of the goods they want to buy along with their quantity required. They should also take into consideration the place where to buy things.

Organized Efforts:

Consumers should undertake responsibility for the protection of their rights and safeguarding their interests. Consumers can work for and support consumer protection associations for consumer welfare.

State the role of NGOs and consumer protection.

Solution:

The main aim of these NGOs is to study the trend of prices in the market and publish them for the information of consumers and to agitate against the malpractices of traders.

Role of Consumer organizations & NGOs in Consumer protection and Education:

To organize campaigns and various programs on consumer issues to create social awareness.

To organize training programs for the consumers and make them conscious of their rights and modes of redressal of their grievances.

To publish periodicals to enlighten the consumers about various consumer-related developments.

To provide free legal advice to members on matters of consumer interest and help them to take up grievances.

To interact with businessmen and Chambers of Commerce and Industry for ensuring a better deal for consumers.

To file Public Interest Litigation on important consumer issues, such as a ban on a product injurious to public health.

Justify the following statement.

The Consumer Protection Act was passed in the interest of consumers.

Solution:

The Consumer Protection Act came into force from 1986. Thereafter the Ministry of Law and Justice proposed a new act in 2019. The Act has for the first time recognized six rights of the consumer

The right to be protected against the marketing of hazardous goods.

The right to be informed about the price and features of goods.

The right to make a choice out of a variety of goods.

The right to make a complaint against unsatisfactory goods.

The right to seek redressal against unfair trade practices.

The right to consumer education. All the above rights are in the interest of the consumer and not the seller.

The Act has made provision for the establishment of Consumer Protection Councils at the central and state levels for promoting and protecting these rights.

The Act has created quasi-judicial machinery consisting of the District Commission, State Commission, and National Commission to entertain complaints and to give fair justice to the aggrieved consumers.

The Act prescribes punishment of imprisonment not less than one month which may extend to 3 years and a fine which shall not be less than Rs. 25,000 which may extend to Rs. 1 lakh or with both for the guilty person.

The strict enforcement of these rights creates competition among the sellers. Consequently, consumers get quality goods at fair prices. The government has also adopted various measures for creating public awareness about the rights of consumers. Various programs are shown on television channels as well as programs are broadcasted by All India to educate consumers.

Consumers have many responsibilities.

Solution:

Consumers have many responsibilities such as

Consumers should use their rights:

Consumers have many rights with regard to goods and services. They must be aware of their rights while buying.

Cautious consumer:

Consumers should understand their responsibilities while buying goods and services. While buying, the consumer should enquire about the quality, quantity, price, utility of goods and services, etc.

Filing of complaint:

It is the responsibility of a consumer to approach the officer concerned if consumers have some complaints about the goods and services.

Consumers must be quality conscious:

Beware from exaggerating advertisement:

The seller informs the consumer about their goods and services through advertisement.

The demand for Receipt and Guarantee/ warranty card:

Consumers should always ask for an invoice for the goods purchased.

Pre-Plan for buying:

The important responsibility of consumers is that they should not buy in a hurry.

Organized efforts:

Consumers should undertake responsibility for the protection of their rights and safeguarding their interests.

The aim of the consumer organization is to protect the rights of the consumer.

Solution:

The role of Non-Government Organisations (NGOs) in consumer protection is explained as follows:

NGO organise campaigns and various programmes on consumer issues to create social awareness.

They initiate and organise training programmes for the consumers and make them aware and conscious of their rights and various modes of redressal of their grievances.

They publish journals and periodicals at regular intervals to make the consumers understand and keep them informed about various consumer-related developments.

They provide legal advice free of charge to the members on the matters of consumer interest and help them to put up grievances before the appropriate authority.

NGOs active members interact (communicate) with the businessmen and Chambers of Commerce and Industry for ensuring a better deal for the consumers.

The file Public Interest Litigation (Janhit Yachika) on important consumer issues like ban on a product or medicine injurious to public health. They also file cases in the court of law to safeguard the rights and protect the interest of the general public.

Few examples of NGOs working for the consumers are Consumer Guidance Society of India (CGSI), Voluntary Organisation in Interest of Consumer Education (VOICE), Consumer Education and Research Centre (CERC), Consumers Association of India (CAI), Mumbai Grahak Panchayat (MGP), Grahak Shakti (GS), etc.

Attempt the following:

State the rights of the consumer.

Solution:

Some of the rights of consumers are as follows:

Right to Safety:

Right to Information:

Right to Choose:

Right to be heard:

Right to Consumer Education:

Right to Represent:

Right to Redress:

Right to Healthy Environment:

All consumers have a right to a healthy and clean environment.

Right to Protect from unfair business practices:

As per this right, all consumers are protected against unfair business practices such as black marketing, profiteering, faulty weights and measures, exorbitant prices, adulteration, etc.

Right against spurious goods:

This right is against the marketing of goods which are hazardous to health, spurious, and pose a danger to life itself.

State responsibilities of the consumer.

Solution:

Consumers should exercise their rights and responsibilities while purchasing products or services. These are as follows:

The consumer should use his rights:

Consumers have many rights with regard to the goods and services. They must be aware of their rights while buying.

Cautious consumer:

Filing of complaint:

Quality conscious:

Beware from exaggerating advertisement:

The demand for Invoice and Guarantee, Warranty Card:

Pre-planned buying:

Organized Efforts:

State the need for consumer protection.