Commerce Accountancy · General Awareness

Consumer Protection and Commerce

1,245 Questions

Consumer Protection and Commerce encompasses consumer rights, unfair trade practices, retail operations, and e-commerce strategies. It details how goods and services are regulated, sold, and managed within various markets. Questions from this area are common in commerce, economics, and general awareness exam sections.

E-Commerce PlatformsRetail Trade TypesConsumer Rights ProtectionUnfair Trade PracticesOmnichannel StrategiesTariff Impacts

Consumer Protection and Commerce Questions

Multiple choice technology packaged enterprise solutions

What is Standard RFQ

  1. Used for Items , that will be ordered regularly

  2. Used for one-off items or items that are ordered infrequently

  3. Used to source a specific quantity of an item to be delivered at certain site on certain date

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Standard RFQ (Request for Quotation) is used for one-off items or infrequently ordered items where you don't have an established agreement. Option A describes Blanket Purchase Agreements. Option C describes Planned Purchase Orders. Standard RFQs are ad-hoc sourcing documents.

Multiple choice technology

Which of the following is the most likely candidate for a ‘Fact’?

  1. Customer Name

  2. Number of overtime hrs

  3. ZIP Code

  4. Product
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A Fact in data warehousing must be numeric, additive, and represent a measurement. 'Number of overtime hrs' is quantitative and can be aggregated (summed) across dimensions. Customer Name, ZIP Code, and Product are descriptive attributes that belong in dimension tables, not facts.

Multiple choice

The choice of distribution channel is affected by

  1. market consideration

  2. product consideration

  3. middle man consideration

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The choice of distribution channel is a complex decision that requires considering multiple factors: market factors (customer needs, preferences, location), product factors (perishability, value, technical complexity), and middleman factors (availability, cost, reliability). All three categories of considerations affect the distribution channel choice, making 'all of the above' the correct answer.

Multiple choice

Which out of the following is not a type of non-store retailing?

  1. Limited line stores

  2. Automatic vending

  3. Direct selling

  4. Telemarketing
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Limited line stores are brick-and-mortar retail establishments with a narrow product assortment, which makes them a TYPE of store retailing, not non-store retailing. Non-store retailing includes methods like automatic vending, direct selling, and telemarketing that sell products without physical retail locations.

Multiple choice

According to the passage, consumers are buying more products

Directions: Read the following passage and answer the question.
We truly live in an age of abundance. Everything from our wardrobes, to our homes, to the stores selling all kinds of stuff - every place is overflowing with stuff we have managed to acquire or aspire to own and it is a corroboration of a truly consumerist era. We know what we want and we want it now. Everyone has wants that need to be fulfilled and envy - the Green eyed monster has transmuted into Shrek - the lovable ogre - with the world now not only coming to terms with, but also embracing with gusto, a culture of material ambition. Keeping up with the Joneses is out and ‘Have it, flaunt it’ is the new style statement.
Advertisers, through every platform available, television, newspaper, radio, internet and sundry other means, are encouraging us to go out and buy the latest model, the latest product or the latest service. With manufacturers churning out newer models every few months and consumers lapping them up, it would seem that perfectly good working products would be consigned to the waste basket but that is not the case. The market for second hand products is burgeoning, except for the fact that they are now no longer called second hand but ‘used products’. Without offending the sensibilities or the ego of someone who doesn’t have enough spare money to buy the latest, state of the art model, the altered name means he can now buy and flash a product which till yesterday was haute but has suddenly lost value and favor after the coming of its latest avatar.

  1. because advertisers are bombarding them with messages to buy new products

  2. because newer models are making older models obsolete

  3. because people are earning more and thus spending more

  4. because everyone wants to keep up with the Joneses

  5. because thrift and frugality have lost favor
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Correct answer as envy is fueling want without established need. 'Have it, flaunt it' conveys 'earn and splurge'.

Multiple choice

Research indicates that consumer behavior regarding the purchase of soaps varies very little except when the soap contains rose essence. Accordingly, soaps containing the ingredient will have labels indicating that rose essence is present.

Which one of the following is an assumption upon which the above argument is based?

  1. If soap isnot available with the ingredients, then a consumer prefers to buy whatever is available.

  2. The ingredients used in different soaps may differ significantly.

  3. Consumers prefer buying soaps that contains rose essence.

  4. Soap bars labels should reveal all ingredients.

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This argument leaps from 'people are influenced by the presence of rose essence' to 'companies advertise the presence of rose essence.' The assumption on which the given argument is based is that people like rose essence.

Multiple choice

Anti-competitive practices include

  1. insider trading

  2. grey markets

  3. employment of child labour in production activities

  4. tying arrangements
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Anti-competitive practices include manipulation of supply, exclusive dealing arrangements, tying arrangements, etc.

Multiple choice

The consumer durables industry is increasing its market discounts more widely and earlier this year than it normally does at the beginning of the winter vacations, it is a period during which shopping usually increases and the industry uses lower prices for the attraction of more buyers.

  1. than it normally does at the beginning of the winter vacations, it is a period during which shopping usually increases and the industry uses lower prices for the attraction of more buyers

  2. then it normally does at the beginning of the winter vacations; it is in a period during which shopping usually increases and the industry uses lower prices for the attraction of buyers

  3. than it does normally at the beginning of the winter vacations in which shopping usually increases and in which the industry uses lower prices to attract more buyers

  4. than it normally does at the beginning of winter vacations, when shopping usually increases and the industry uses lower prices to attract more buyers

  5. than it does normally at the beginning of the winter vacations when shopping usually increases and therefore the industry uses lower prices to attract more buyers
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correct; uses 'when' to signify time duration; clarifies the objective of lower prices: to attract more buyers.

Multiple choice

Which of the following sales prescribed by regulation?

  1. AMFI Code of Ethics

  2. SEBI Advertising

  3. AMFI's Code for Agents

  4. None of the above practices is
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SEBI has prescribed comprehensive advertising regulations for mutual funds to ensure fair disclosure and prevent misleading claims. The question appears to have grammatical issues, but SEBI advertising rules are the correct regulatory framework.

Multiple choice

Which of the following types of cooperatives is formed by small independent producers to sell their output through one centralised agency?

  1. Consumers cooperative

  2. Producers cooperative

  3. Cooperative Farming Society

  4. Marketing Cooperative

  5. Credit Cooperative
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

These are voluntary associations of independent producers who want to sell their output at remunerative prices. The output of different members is pooled and sold through a centralised agency to eliminate middlemen. The sale proceeds are distributed among the members in the ratio of their outputs. Marketing societies are set up generally by farmers, artisans and small producers who find it difficult to face competition in the market and to perform necessary marketing functions individually. The National Agricul­tural Cooperative Marketing Federation (NAFED) is an example of marketing cooperative in India.