Commerce Accountancy · General Awareness

Consumer Protection and Commerce

1,192 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

A customer is defined as per provisions of

  1. Indian Contract Act

  2. Negotiable Instrument Act

  3. General Clauses Act

  4. KYC guidelines
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For the purpose of KYC policy, a customer is defined as:

a. A person or an entity that maintains an account and/or has a business relationship with the bank

b. One on whose behalf the account is maintained (the beneficial owner)

c. Beneficiaries of transactions that are conducted by professional intermediaries, such as stock brokers, chartered accountants, solicitors etc. as permitted under the law

d. Any person or entity that is connected with a financial transaction which can pose significant reputational or other risks to the bank, such as a wire transfer or issue of a high value demand draft as a single transaction

Multiple choice

Which of the following is correct in the context of Consumer Protection Act?

  1. Complaint can be filed by the consumer himself, as on his behalf no consumer association can file the complaint.

  2. Retailers who buy goods to sell to other consumers can file the complaint.

  3. The consumer courts are quasi-judicial in nature.

  4. Consumer Protection Act has been enacted to protect the manufacturers and service providers from the consumers.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The National Consumer Disputes Redressal Commission (NCDRC), India is a quasi-judicial commission in India which was set up in 1988. Only option 3 is true. 

Multiple choice

Directions: The question below is followed by two arguments numbered I and II. You have to decide which of the given arguments is/are ‘strong'.

Does e-commerce help the business of local merchants?

Arguments: I. Yes, as they can become suppliers for the e-retailers and earn via that route. II. No, as it takes away business from the local merchants and increases loss percentages in difficult economic times.

  1. Only I is strong.

  2. Only II is strong.

  3. Both I and II are strong.

  4. Neither I nor II is strong.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is the correct answer as both arguments are strong. E-commerce can help those local merchants who become suppliers for the e-retailers. It also takes away the business from the other local merchants.

Multiple choice

Which one of the following is an example of consumers good?

  1. Cloth

  2. Machines

  3. Equipment

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

Consumer goods are final products purchased by individuals for personal use, like clothing. Cloth is a consumer good when bought for making garments. Machines, equipment, and tools are capital goods (producer goods) used to produce other goods and services.

Multiple choice

Expand BPL in consumer awareness terms.

  1. Below Poverty Line

  2. Bharat Petrolium Limited

  3. Below Prosperity Line

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

BPL stands for Below Poverty Line, which is the official benchmark used in India to identify individuals and households lacking adequate income for basic needs. It determines eligibility for various government welfare schemes and subsidies designed to assist economically vulnerable sections of society. In consumer awareness contexts, understanding BPL helps citizens recognize their rights to government support and subsidized services.

Multiple choice

Which of the following services are under the Consumer Protection Act?

A. Railways B. Electricity C. Banks D. Doctors

  1. A, B and C

  2. A, B and D

  3. B, C and D

  4. A, B, C and D
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All four services - Railways, Electricity, Banks, and Doctors - fall under the Consumer Protection Act, 1986 (now replaced by Consumer Protection Act 2019). This legislation was established to protect consumers from unfair trade practices and deficiencies in services across both public and private sectors. The Act applies to all goods and services, making healthcare, banking, transportation, and utilities subject to consumer grievance redressal mechanisms.

Multiple choice

Which of the following is a great concern for e-commerce?

  1. Speed

  2. Quality

  3. Security risk

  4. Maintenance cost
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Security continues to be a problem for online businesses. Many people are reluctant to give out their credit card numbers via internet. For millions of potential cyber customers, the fear of credit card theft is a real one. Speed is not a problem in e-commerce since there is quick delivery of goods and redressal of consumer complaints. Maintenance costs are also very low. Organisations use just-in-time approach for stock instead of maintaining high inventory. Quality is also not a concern in e-commerce as the consumers have a wide range of options to choose before buying.

Multiple choice

According to the passage, why is the modern consumer willing to pay more for cleaning chemicals than he paid for soaps and detergents?

Directions: Read the following passage and answer the question.

Cleaning can be the basic guarantee of healthy environment and the cleaning products are the substances used in cleaning. An analysis on the global market of washing chemicals suggested that cleaning chemicals have reached an increasingly improved and fast development worldwide. And in the near future, cleaning chemicals will take up a larger part in the global market. The reason of cleaning chemicals developing so fast is the global demand for cleaning chemicals in the market; that is driven by the rise in population and increased impact on usage norms. There is also a greater concern for hygiene nowadays. Cleaning chemicals can make the cleaning task easier and quicker as they do not make use of any detergents or soaps that may be time consuming for most of the time. Therefore, consumers are more likely to pay more for these cleaning chemicals.

  1. Because there is a greater concern for hygiene

  2. Because they provide a basic guarantee of a healthy environment

  3. Because they have reached an increasingly improved and fast development worldwide

  4. None of these

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

This is the correct answer as the passage gives the reason why the modern consumer is willing to pay more for cleaning chemicals than he paid for soaps and detergents. The reason according to the passage is because cleaning chemicals can make the cleaning task easier and quicker as they do not make use of any detergents or soaps that may be time consuming for most of the time.

Multiple choice

MICRs are commonly used in _____.

  1. retail trade for labelling goods

  2. banks

  3. radio communication

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

MICR (Magnetic Ink Character Recognition) is primarily used in banking for processing checks and other financial documents. The special magnetic ink allows machines to read account numbers and routing information even when printed over, making it essential for automated check processing.