Consumerism Text Book Solutions

Dear Class 12 Samacheer Kalvi students, here are the text book solutions for Chapter 16, Consumerism in Commerce for your reference.

I. Choose the Correct Answers:

II. Very Short Answer Questions:

1. Who is a consumer?

A consumer is an individual who consumes goods- manufactured by firms or created by nature air, water etc. and services offered by government or firms, hospitals, educational institutions etc.,

2. Give two examples of adulteration.

Two examples of adulteration are:

1. Chemicals, detergent chalk, urea caustic soda, etc. are added to make the milk dense and white.
2. Mixing of stones with grains

3. What is Caveat Emptor?

‘Caveat emptor’ is a Latin term that means “let the buyer beware.” This term means that the buyer assumes the risk that a product fails to meet expectations or have defects.

4. What is Caveat Venditor?

Caveat venditor, means “let the seller beware,” by which goods are covered by an implied warranty of merchantability. Unless otherwise advertised  or negotiated with the buyer, nearly all consumer products are guaranteed to work, if used for their intended purpose.

5. Write a short notes on Consumer Protection Act, 1986.

The Consumer Protection Act 1986 seeks to protect and promote the interests of consumers. The act provides safeguards to consumers against defective goods, deficient services, unfair trade practices, and other forms of their exploitation. The object of the act is to provide for the better protection of the interests of the consumer courts for the settlement of consumer’s disputes and all matters connected there with. It is applicable to public sector, financial, and cooperative enterprises.

III. Short Answer Questions:

1. What are the important legislations related to consumerism in India? (any 3)

The important legislations related to consumerism are The Sale of Goods Act, 1930, The Essential Commodities Act, 1955, and the Weights and Measures Act, 1976.

2. What is meant by artificial scarcity?

There are certain situations where the shop-keepers put up the board ‘No Stock” in front of their shops, even though there is plenty of stock in the store. In such situations consumers who are desperate to buy such goods have to pay hefty price to buy those goods and thus earning more profit unconscientiously.

3. Write the importance of consumerism. (any 3)

Importance of consumerism lies in:

1. Awakening and uniting consumers.
2. Discouraging unfair trade practices.
3. Protecting against exploitation.

IV. Long Answer Questions:

1. How consumers are exploited? (any 5)

Some of the ways in which consumers are being exploited are:

1. Selling at Higher Price

The price charged by the seller for a product service may not be commensurate with the quality but at times it is more than the fair price. Even though sellers have surplus or adequate goods they create artificial scarcity in the market with an intent to push up the prices. As a result, consumers are forced to buy the short supply of goods at higher prices in the black market.

2. Adulteration

It refers to mixing or substituting undesirable material in food. This causes heavy loss to the consumers. This will lead to monitory loss and spoil the health. Adulterators make illegitimate profit. Whenever unscrupulous traders seek to reap higher profit out of greed, they seek to adulterate the products. Adulteration is quite common in food articles. It is a crime which cannot be pardoned as it spoils the very health of consumers. Example: Chemicals, detergent chalk, urea caustic soda, etc. are added to make the milk dense and white.

3. Duplicate or Spurious goods

Duplicate products of popular products are illegally produced and sold. Duplicates are available in plenty in the market for every original and genuine parts or components like automobile spare parts, blades, pens, watches, radios, medicines, jewellery, clothes and even for currency notes. A consumer is not in a position to distinguish duplicate from the original.

4. Artificial Scarcity

There are certain situations where the shop-keepers put up the board ‘No Stock” in front of their shops, even though there is plenty of stock in the store. In such situations consumers who are desperate to buy such goods have to pay hefty price to buy those goods, thus earning more profit unconscientiously.

5. False Advertisements

The main purpose of advertisement is to educate the consuming public and customers of various aspects of the products/service. In reality, advertisements convey very little information about the product. Many times it makes false representation about the quality, price, grade, composition, utility guaranteed, performance etc. Consumers who buy the products on the faith of claims made in advertisements are cheated.

2. Explain the role of business in consumer protection. (any 5)

Business enterprises should do the following towards protecting consumers.

1. Avoidance of Price Hike

Business enterprises should desist from hiking the price in the context of acute shortage of goods /articles.

2. Avoidance of Hoarding

Business enterprises should allow the business to flow normally. It should not indulge in hoarding and black marketing to earn maximum possible profit in the short term at the cost of consumers.

3. Guarantees for Good Quality

Business enterprises should not give false warranty for the products. It should ensure supply of good quality.

4. Product Information

Business enterprises should disclose correct, complete and accurate information about the product viz. size, quality, quantity, substances, use, side effects, precautions, weight, exchange, mode of application etc.

5. Truth in advertising

Business enterprises should not convey false, untrue, bogus information relating to the product through the advertisements in media and thus mislead the consumers.

3. What are the objectives of Consumer Protection Act, 1986? (any 5)

Following are the objectives of Consumer Protection act 1986

1. Protection of consumers against marketing of goods which are hazardous and dangerous to life and property of consumers.

2. Providing correct and complete information about quality, quantity, purity, price and standard of goods purchased by consumers.

3. Protecting consumers from unfair trade practices of traders.

4. Empowering consumers to seek redressal against exploitation.

5. Educating the consumer of their rights and duties.