Business Studies
CBSE
Business Studies — CBSE Class XII Sample Paper 1 (2025-26)
Questions 1 – 34
આ MCQ મોડ્યુલ આના પર આધારિત છે: Consumer Responsibilities & CPA 2019
ટોપિક 8 / 9
Consumer Responsibilities & CPA 2019
🎓 Class 12
Business Studies
CBSE
Theory
Chapter 3 — Consumer Protection
⏱ ~28 min
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આ મૂલ્યાંકન આના પર આધારિત હશે: Consumer Responsibilities & CPA 2019
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Consumer Responsibilities, CPA 2019 & Three-Tier Redressal
Consumer Protection Act 2019 class 12 NCERT — ten consumer responsibilities, the new CPA 2019 features (CCPA, product liability, e-commerce), the three-tier redressal machinery (district, state, national) and reliefs under Section 39.
3.5 Consumer Responsibilities — The Other Half of Protection
The Consumer Protection Act empowers the consumer to fight against any unscrupulous, exploitative, unfair and restrictive trade practices adopted by sellers. But NCERT is explicit: consumer rights, by themselves, cannot be effective in achieving the objective of consumer protection. Consumer protection can be achieved only when consumers also understand their responsibilities.
NCERT lists ten responsibilities a consumer should keep in mind while purchasing, using and consuming goods and services. Together, they form a charter of the alert, informed and engaged consumer.
| # | Responsibility | What It Means in Daily Life |
|---|---|---|
| (i) | Be aware of various goods and services available in the market | So that an intelligent and wise choice can be made — comparison-shop online and offline before deciding. |
| (ii) | Buy only standardised goods | Because they provide quality assurance. NCERT specifies — look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewellery, AGMARK on agricultural produce. |
| (iii) | Learn about the risks associated with products and services | Follow the manufacturer's instructions, use products safely — read the warning labels on medicines, electrical appliances, kitchen knives, household chemicals. |
| (iv) | Read labels carefully | So as to have information about prices, net weight, manufacturing and expiry dates, FSSAI licence number, country of origin (now mandatory on e-commerce listings). |
| (v) | Assert yourself | To ensure that you get a fair deal — politely insist on rightful service, refund, replacement or compensation. |
| (vi) | Be honest in your dealings | Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding, etc. Do not participate in tax evasion or under-billing. |
| (vii) | Always ask for a cash memo on purchase | This serves as proof of purchase — without it, no consumer commission can hear your complaint. The cash memo carries the seller's identity, the product, the price and the date. |
| (viii) | File a complaint in an appropriate consumer forum | In case of any shortcoming. NCERT's pointed advice — do not fail to take action even when the amount involved is small. (Recall the Raipur ATM case where a ₹2,500 award created a precedent.) |
| (ix) | Form consumer societies | Which would play an active part in educating consumers and safeguarding their interests — and provide collective bargaining power against large firms. |
| (x) | Respect the environment | Avoid waste, littering and contributing to pollution. Refuse single-use plastic, segregate waste, prefer products in eco-friendly packaging. |
📘 Why the "Cash Memo" Rule Is So Important
Without a cash memo (or in modern terms, a GST-compliant invoice / printed bill / e-mail receipt of an online order), a consumer commission cannot establish (a) that the transaction took place, (b) what was bought, (c) the price paid and (d) the seller's identity. Section 35 of CPA 2019 requires a "complaint" to attach proof of purchase — making this single piece of paper the gateway to all six consumer rights.
3.6 Ways and Means of Consumer Protection — Five Pathways
A consumer's awareness of rights and responsibilities is just one of the ways of achieving consumer protection. NCERT identifies five interlocking pathways. Together they form the ecosystem within which the Consumer Protection Act 2019 operates.
3.6.1 ① Self-Regulation by Business
Socially responsible firms follow ethical standards and practices in dealing with their customers. Good and ethical practices encourage firms to realise that it is in their long-term interest to serve customers in a rightful manner. Many firms have set up their own customer service and grievance cells to redress the problems and grievances of their consumers — for example, Tata's Customer Service Helpdesks, Reliance JioCare, IndianOil's "Customer First" portal.
3.6.2 ② Business Associations
Trade and industry associations like the Federation of Indian Chambers of Commerce of India (FICCI) and the Confederation of Indian Industries (CII) have laid down their own codes of conduct which spell out, for their members, the guidelines in their dealings with customers. These voluntary codes often go beyond the minimum legal requirements and include disclosure norms, advertising ethics and fair-pricing pledges.
3.6.3 ③ Consumer Awareness
A consumer who is well-informed about his rights and the reliefs available to him would be in a position to raise his voice against any unfair trade practices or unscrupulous exploitation. In addition, an understanding of his responsibilities would also enable a consumer to safeguard his interests. In this regard, the Department of Consumer Affairs, Government of India, has been undertaking the "Jago Grahak Jago" campaign for generating awareness among consumers — through TV ads, posters, school outreach and social-media campaigns.
3.6.4 ④ Consumer Organisations
Consumer organisations play an important role in educating consumers about their rights and providing protection to them. These organisations can force business firms to avoid malpractices and exploitation of consumers. (You will study a detailed list of these organisations — CERS Ahmedabad, CGSI Mumbai, VOICE Delhi, CUTS Jaipur — in Part 3.)
3.6.5 ⑤ Government
The government can protect the interests of consumers by enacting various measures. The GOI has set up a toll-free National Consumer Helpline Number — 1800-11-4000 — for this purpose. The legal framework in India encompasses a long list of legislations, the most important of which is the Consumer Protection Act 2019.
📜 The Web of Indian Consumer Laws (NCERT Summary)
Beyond the CPA 2019, the legal framework covers: the Indian Contract Act 1872; the Sale of Goods Act 1930; the Essential Commodities Act 1955; the Agricultural Produce (Grading and Marking) Act 1937 — basis of the AGMARK scheme; the Prevention of Food Adulteration Act 1954 (now subsumed under the FSS Act 2006); the Standards of Weights and Measures Act 1976; the Trade Marks Act 1999; the Competition Act 2002; and the Bureau of Indian Standards Act 1986. Each fills a piece of the protection puzzle.
Activity 3.3 — Map Each Responsibility to a Right
For each consumer responsibility on the left, identify the consumer right it most closely supports. Justify briefly.
- Reading labels and expiry dates.
- Always asking for a cash memo.
- Filing complaints even for small amounts.
- Buying only ISI/Hallmark-marked goods.
- Forming consumer societies.
- (1) Right to be Informed — labels are the carrier of legally required information.
- (2) Right to Seek Redressal — without a cash memo, no commission can entertain the claim.
- (3) Right to be Heard — small-amount complaints reinforce systemic accountability.
- (4) Right to Safety — quality marks certify that the product meets prescribed safety standards.
- (5) Right to Consumer Education — collective bodies multiply individual learning and bargaining power.
3.7 The Consumer Protection Act 2019 — A New Age Statute
The Consumer Protection Act 2019 is the central legislation that protects consumers. It seeks to protect and promote the consumers' interest through speedy and inexpensive redressal of their grievances. It extends to the whole of India. It is applicable to all types of businesses — whether a manufacturer or a trader, and whether supplying goods or providing services, including e-commerce firms. The Act confers certain rights on consumers with a view to empowering them and protecting their interests.
The 2019 Act replaced the earlier Consumer Protection Act 1986 and seeks to widen its scope in addressing consumer concerns — particularly the new challenges of online commerce, telemarketing, multi-level marketing and modern digital advertising.
Old Act (1986)
- Did not cover e-commerce / direct selling
- No central regulator (no CCPA)
- Pecuniary jurisdiction much lower
- No specific product-liability provisions
- No mediation as a formal step
- No statutory class-action suits
- Filing only at the place of seller
New Act (2019)
- Explicitly covers e-commerce, teleshopping & MLM
- Establishes the CCPA (Central Consumer Protection Authority)
- Higher jurisdiction limits (₹1 cr / ₹10 cr / above)
- Detailed product liability provisions (Sections 82–87)
- Mandatory mediation cells at every level
- Express class-action remedy
- e-filing — file complaint where consumer resides
3.7.1 Who is a Consumer? — Section 2(7), CPA 2019
📘 Statutory Definition — "Consumer"
A consumer is generally understood as a person who uses or consumes goods or avails of any service. Under the Consumer Protection Act 2019, a consumer is a person who buys any goods or avails services for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. It includes any user of such goods or beneficiary of services if such use is made with the approval of the buyer. It applies to both offline and online transactions through electronic means or by teleshopping or direct selling or multilevel marketing. However, any person who obtains goods or avails services for resale or commercial purpose is NOT treated as a consumer and is outside the scope of the Act.
3.7.2 Other Key Definitions (NCERT box "Terms & Definitions")
| # | Term | Statutory meaning (paraphrased from NCERT) |
|---|---|---|
| 1 | Complaint | Any allegation in writing made by the complainant for obtaining relief — restrictive trade practice, defect in goods, deficiency in service, overcharging, or offer of goods/services injurious to life and safety. |
| 2 | Complainant | One or more consumers; any voluntary consumer association; the central or state government; the central authority (CCPA); or a legal heir / legal representative / parent (for a minor). |
| 3 | Spurious goods | Goods that are falsely claimed to be genuine. |
| 4 | Unfair trade practice? | A trade practice for the purpose of promoting sale, use or supply of any goods or service which falsely represents its quality, standard, quantity, composition, style or model. |
| 5 | Restrictive trade practice | A trade practice which manipulates price or affects the flow of supplies in the market in such a manner that an unjustified cost is imposed on the consumer. |
| 6 | Defect | Any fault, imperfection, shortcoming or inadequacy in quality, nature or manner of performance of goods or a product. |
| 7 | Deficiency? | Any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance of any service; includes act of negligence or omission/commission or withholding of relevant information. |
| 8 | Injury | Any harm illegally caused to any person in body, mind or property. |
| 9 | Product | Any article, goods, substance, raw material or extended cycle of such product (gaseous, liquid or solid) — but NOT human tissues, blood, blood products and organs. |
| 10 | Product Seller | Any person who, in the course of business, imports, sells, distributes, leases, installs, prepares, labels, markets, repairs, maintains or otherwise places the product for commercial use; or a service provider. |
| 11 | Product Liability? | The responsibility of a product manufacturer or seller of any product or service to compensate for any harm caused to a consumer by a defective product manufactured/sold or by deficiency in services. |
3.7.3 New Architecture Under the 2019 Act
CCPA
Central Consumer Protection Authority — a regulator empowered to take suo-motu action against violation of consumer rights, unfair trade practices and false/misleading advertisements.
Mediation Cells
A mediation cell is attached to every Commission. Disputes that admit of settlement are referred to mediation within five days of consent — saving years of litigation.
Product Liability
Manufacturer, seller and service provider can all be held liable for harm caused by a defective product or deficient service — a powerful new claim head.
e-Filing
Complaints can be e-filed through the official portal — and at the place where the consumer resides (not just where the seller resides), saving travel and cost.
Class-Action Suits
A group of consumers similarly affected (e.g. by a misleading advertisement) can file a single class-action complaint — multiplying the deterrent effect on big firms.
Coverage of E-commerce
Online and tele-shopping transactions, direct selling and multi-level marketing all fall squarely within the Act — closing the digital-age loophole of the 1986 statute.
3.8 Three-Tier Redressal Machinery — District, State, National
For the redressal of consumer grievances, the Consumer Protection Act 2019 provides for setting up a three-tier enforcement machinery at the District, State and National levels. As per the Consumer Protection Rules 2021, the pecuniary jurisdiction (the ceiling on the value of goods/services that the body can hear) is as follows:
3.8.1 District Commission — The Foundation
The District Commission has jurisdiction to entertain complaints where the value of goods or services paid as consideration does not exceed ₹1 crore (under the 2021 Rules — NCERT mentions the earlier "₹50 lakh" threshold which has since been raised). On the first hearing, or at any later stage, if the District Commission feels there exist elements of settlement acceptable to the parties, it may direct them to give their consent for settlement of the dispute through mediation within five days. If the parties agree by written consent, the matter is referred to mediation; if mediation fails, the District Commission proceeds with the complaint.
Where the complaint alleges a defect in goods which cannot be determined without proper analysis or testing, the Commission obtains a sample of the goods, seals it and refers it to an appropriate authority for analysis. In service disputes, the dispute is settled on the basis of evidence brought to its notice. If any party is dissatisfied with the order of the District Commission, an appeal can be filed before the State Commission on grounds of fact or law within 45 days of the order.
3.8.2 State Commission — The Middle Tier
Each State Commission is established by the respective state government and ordinarily functions at the state capital. It has jurisdiction to entertain complaints where the value of goods or services paid as consideration exceeds ₹1 crore but does not exceed ₹10 crore. If any party is dissatisfied with the order of the State Commission, an appeal can be filed before the National Commission within 30 days of such order.
3.8.3 National Commission — The Apex Forum
The National Consumer Disputes Redressal Commission (commonly "National Commission") has territorial jurisdiction over the whole country. It has jurisdiction to entertain complaints where the value of goods or services paid as consideration exceeds ₹10 crore. If any party is dissatisfied with the order of the National Commission, an appeal can be filed before the Supreme Court of India within 30 days of such order.
3.8.4 Finality of Orders
Every order of a District, State or National Commission is deemed final if no appeal is made by any of the parties involved within the prescribed period. This finality is what gives consumer commissions teeth — most defendants comply rather than face contempt action.
3.9 Reliefs Available to the Consumer (Section 39, CPA 2019)
Where a District, State or National Commission is satisfied about a defect in goods, deficiency in service, an unfair trade practice, or a claim for compensation under product liability, it can issue any of the following ten orders:
| # | Relief | Practical example |
|---|---|---|
| (i) | Remove the defect in goods or deficiency in service | A buggy laptop is repaired free of cost. |
| (ii) | Replace the defective product with a new one, free from any defect | A non-functional refrigerator is exchanged for a fresh unit. |
| (iii) | Refund the price paid for the product, or charges for the service | Full refund of the cost of a discoloured jacket damaged in dry cleaning. |
| (iv) | Pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party | Compensation for medical expenses arising from a contaminated soft drink. |
| (v) | Pay punitive damages in appropriate circumstances | Heavy damages on a builder for a fraudulent flat-sale scheme. |
| (vi) | Discontinue the unfair / restrictive trade practice and not to repeat it in the future | An advertiser ordered to stop airing a misleading "fairness in 7 days" ad. |
| (vii) | Not to offer hazardous goods for sale | Gas cylinders below safety norms must be removed from market. |
| (viii) | Withdraw the hazardous goods from sale | A toy with sharp edges recalled from all retail outlets. |
| (ix) | Cease the manufacture of hazardous goods and desist from offering hazardous services | Order against a factory producing harmful pesticide-based snacks. |
| (x) | Compensate for any loss/injury under product liability action and withdraw hazardous products from sale | Combination order in a class-action suit on an exploding pressure cooker. |
Activity 3.4 — Choose the Correct Commission
For each scenario, decide which Commission has jurisdiction and explain why:
- Mr. Kapoor seeks ₹40 lakh for a defective car.
- A society of 12 flat-buyers files a class-action seeking ₹6 crore against a builder.
- A pan-India misleading-advertising complaint values the loss at ₹40 crore.
- Mrs. Mathur claims ₹4,500 for her discoloured dry-cleaned jacket.
- Eight passengers seek ₹2 crore compensation from an airline for cancellation losses.
- (1) District Commission — value (₹40 lakh) is up to ₹1 crore.
- (2) State Commission — value (₹6 crore) lies between ₹1 crore and ₹10 crore.
- (3) National Commission — value (₹40 crore) exceeds ₹10 crore.
- (4) District Commission — small value (₹4,500); the appropriate first-tier forum.
- (5) State Commission — value (₹2 crore) is within ₹1–10 crore band.
📝 Competency-Based Questions — Responsibilities, CPA 2019 & Redressal
Source-based scenario: Mrs. Mathur (NCERT case) sent a ₹4,500 jacket to Shine Dry Cleaners in January 2018. On collection, she noticed white discoloration marks. Shine Dry Cleaners sent her a written letter confirming that the discolouration appeared after dry cleaning. She contacted them several times but received no compensation. Upon Consumer Court's intervention, the dry cleaner agreed to pay ₹2,500. Mrs. Mathur had carefully preserved her cash memo and the dry cleaner's confirmation letter — proving every step of her claim.
Q1. The ₹4,500 jacket dispute involves a value far below ₹1 crore. Which commission has jurisdiction?
L1 RememberAnswer: (a) — The District Commission has jurisdiction up to ₹1 crore (Rules 2021), making it the right first forum for any dispute below that ceiling.
Q2. Mrs. Mathur first contacted Shine Dry Cleaners and sought compensation directly. Which consumer right was she exercising at this first stage?
L3 ApplyAnswer: (b) — She filed a complaint and asked to be heard by the dry cleaner's grievance counter — that is precisely the Right to be Heard. Once that proved fruitless, she escalated to the Consumer Commission, where her Right to Seek Redressal kicked in and yielded ₹2,500.
Q3. NCERT lists ten consumer responsibilities. Mrs. Mathur preserved her cash memo and the written confirmation. Which two responsibilities did she fulfil — and how would these have helped her case?
L4 AnalyseAnswer: (i) Always ask for a cash memo — the cash memo proved the price (₹4,500) and the date (January 2018), establishing the contractual basis of her claim. (ii) File a complaint, even if the amount is small — she did not give up at ₹4,500 (NCERT explicitly says: do not fail to take action even when the amount is small). Together, these two responsibilities supplied the evidence and the resolve the Commission needed to award compensation.
Q4. (HOT) Compare the 1986 Act and the 2019 Act on (a) coverage of e-commerce, (b) the existence of a central regulator, and (c) class-action remedies. Argue whether the 2019 Act is "fit for the digital era".
L6 CreateAnswer: (a) Coverage of e-commerce — the 1986 Act predated India's e-commerce boom and made no specific provision for online transactions; the 2019 Act explicitly covers electronic transactions, teleshopping, direct selling and MLM. (b) Central regulator — the 1986 Act had none; the 2019 Act creates the CCPA with suo-motu powers to investigate misleading advertisements and product safety. (c) Class action — the 1986 Act left class action ambiguous; the 2019 Act expressly permits a single complaint on behalf of identifiable groups of similarly affected consumers, raising the deterrence on big firms. Verdict — the 2019 Act is broadly fit for the digital era because it patches the three big gaps that hurt Indian consumers most in the 2010s. The remaining challenge is enforcement capacity at the District level rather than statutory deficiency.
🔗 Assertion–Reason Questions (Class 12 Format)
Options: (A) Both A & R true, R correctly explains A · (B) Both true, R does not explain A · (C) A true, R false · (D) A false, R true.
Assertion (A): A person who buys goods for resale is not a consumer under the Consumer Protection Act 2019.
Reason (R): The CPA 2019 expressly excludes any person who obtains goods or avails services for resale or commercial purpose from the definition of a consumer.
Answer: (A) — Both true; R correctly explains A. Section 2(7) of the 2019 Act explicitly carves out resale and commercial-purpose buyers from the protected category.
Assertion (A): The State Commission has jurisdiction in disputes where the value of goods or services exceeds ₹1 crore but does not exceed ₹10 crore.
Reason (R): The State Commission is the apex forum and hears all disputes regardless of monetary value.
Answer: (C) — A is true (State Commission's jurisdiction is ₹1 crore – ₹10 crore under the 2021 Rules), but R is false. The National Commission is the apex forum at the level of the Act; appeals from National Commission go to the Supreme Court.
Assertion (A): Consumer rights, by themselves, are sufficient to achieve consumer protection in India.
Reason (R): Consumers must also understand and discharge their responsibilities — buying standardised goods, asking for cash memos, filing complaints, etc.
Answer: (D) — A is false. NCERT explicitly states "consumer rights, by themselves, cannot be effective in achieving the objective of consumer protection." R is true and explains why protection requires both rights and responsibilities.
Frequently Asked Questions — CPA 2019 & Three-Tier Redressal
What are the consumer responsibilities under Class 12 NCERT?
NCERT lists ten consumer responsibilities: be aware of available products, buy only standardised goods (ISI, FPO, Hallmark, AGMARK), learn about product risks, read labels carefully, assert yourself for a fair deal, be honest in dealings, always ask for a cash memo as proof of purchase, file complaints in case of genuine grievance, form consumer societies, and respect the environment by avoiding waste and pollution. NCERT stresses that consumer rights cannot deliver consumer protection unless consumers also discharge these responsibilities.
What is the three-tier redressal machinery under CPA 2019?
The Consumer Protection Act 2019 sets up a three-tier quasi-judicial redressal machinery. The District Commission hears complaints where the value of goods/services paid does not exceed Rs 1 crore (Rules 2021). The State Commission hears complaints from Rs 1 crore up to Rs 10 crore and appeals from the District Commission. The National Commission hears complaints above Rs 10 crore and appeals from the State Commission. Final appeals from the National Commission go to the Supreme Court. NCERT also notes that complaints must be disposed of within three months (or five months if testing is needed).
What are the new features of the Consumer Protection Act 2019?
The Consumer Protection Act 2019 replaced the 1986 Act and brought several new features. It set up the Central Consumer Protection Authority (CCPA) to regulate matters relating to consumer rights, unfair trade practices and misleading advertisements. It introduced product liability — manufacturers, sellers and service providers can be held liable for harm caused by defective products. It expanded the definition of consumer to cover e-commerce, online sellers and direct selling. It enabled e-filing of complaints, video-conference hearings and provisions for mediation. NCERT highlights these as the modernising changes of the 2019 Act.
What reliefs are available to consumers under Section 39 of CPA 2019?
Section 39 of the CPA 2019 lists the reliefs a consumer commission can grant. They include removal of defects in goods or deficiency in services, replacement of the defective goods, refund of the price paid, payment of compensation for any loss or injury suffered, payment of punitive damages, withdrawal of hazardous goods from sale, discontinuance of unfair trade practices, return of property, payment of adequate costs, and issue of corrective advertisements. The Commission may grant any one or several of these reliefs in the same order, depending on the merits of the complaint.
What are the ways and means of consumer protection?
NCERT lists five ways and means of consumer protection. The first is self-regulation by business — voluntary codes of conduct, customer care cells and grievance redressal. The second is business associations — chambers like FICCI and CII publish ethical codes their members follow. The third is consumer awareness — consumers themselves becoming informed and assertive. The fourth is consumer organisations and NGOs that educate the public, file class actions and lobby government. The fifth is the government, which legislates protective laws (CPA 2019, FSSAI, BIS) and runs enforcement bodies (CCPA, consumer commissions).
What standardisation marks should consumers look for in India?
NCERT identifies five major quality and certification marks Indian consumers should recognise. The ISI mark (issued by the Bureau of Indian Standards) certifies industrial products like electrical appliances. The FPO mark certifies fruit and vegetable products under the FPO Act. The Hallmark of the BIS certifies the purity of gold and silver jewellery. AGMARK certifies agricultural produce — pulses, spices, edible oils. Eco-mark certifies environment-friendly products. Buying standardised goods is the second responsibility NCERT lists for consumers because these marks ensure independent third-party quality assurance.
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