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

Complainant means

  1. consumer

  2. any voluntary consumer association registered under the Companies Act 1956

  3. the central government or any state government

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

(4) Complainant under consumer protection act means consumer, any voluntary consumer association registered under the Companies Act, 1956 and central government or any state government.

Multiple choice

Which of the following is a consumer?

  1. An insurance company

  2. A licensee to run a phone

  3. A lottery ticket holder

  4. None of these

  5. Either (1) or (2) or (3)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

(4) Consumer as under Consumer Protection Act does not include a person who avails of services for any commercial purposes.

Multiple choice

Which of the following are the rights of a consumer under Consumer Protection Act, 1986?

I. Right to consumer education II. Right to seek redressal III. Access to a variety of goods and services at competitive prices IV. Take goods and services free of cost

  1. I and III

  2. I, II and III

  3. I and II

  4. I, II, III and IV
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Right to consumer education, right to seek redressal and access to a variety of goods and services at competitive prices are the rights available to a consumer under Consumer Protection Act, 1986.

Multiple choice

Section 2(1)(d) of the Consumer Protection Act, 1986 defines the term “consumer”. It says ‘consumer’ means any person

  1. who has promised to pay a consideration partly or fully under any system of deferred payment

  2. who is an applicant for a passport

  3. who is an applicant for a ration card

  4. who is the beneficiary of municipal services
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under Section 2(1)(d) of the Consumer Protection Act, 1986, consumer means who buys goods and has paid or promised to pay a consideration partly or fully under any system of deferred payment.

Multiple choice

Which of the following cannot be termed as ‘consumer’ under CPA?

  1. An applicant for a passport

  2. An applicant for a ration card

  3. The beneficiaries of municipal services

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

An applicant for a passport is not a consumer because the duties of the passport officer do not fall in the category of services for consideration.

Multiple choice

The potential defendants under the Consumer Protection Act, 1987 are

  1. producer, own brander, importer from outside the EU, and supplier

  2. producer, importer from outside the EU, and supplier

  3. own brander, importer, and supplier

  4. producer, own brander, importer from outside the EU
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The potential defendants under the Consumer Protection Act, 1987 are producer, own brander, importer from outside the European Union and supplier.

Multiple choice

Which of the following statements is false about the Consumer Protection Act, 1987?

  1. The act came into force on 1 March, 1988 and applies to damage caused by defective goods circulated after that date.

  2. The act imposes liability on businesses and private individuals.

  3. The act places strict liability for defective products on a number of possible defendants.

  4. Liability under the act cannot be limited or excluded.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Consumer Protection Act does not impose liability on businesses and private individuals. Section 2 imposes civil liability in tort for damage caused wholly or partly by a defect in a product on producers, persons holding themselves out as producers and importers into the European Union (EU) for commercial sale.