Q.1 What is the main objective of consumer protection laws?
To protect sellers from unfair competition
To protect consumers from unfair trade practices
To regulate government taxation policies
To promote monopolies in trade
Explanation - Consumer protection laws are designed to safeguard the rights of consumers against unfair trade practices and ensure fair treatment.
Correct answer is: To protect consumers from unfair trade practices
Q.2 Which of the following is considered an unfair trade practice?
Providing accurate product information
False advertising of products
Offering discounts legally
Providing after-sales service
Explanation - False advertising misleads consumers about the nature, quality, or price of a product, which is prohibited under consumer protection laws.
Correct answer is: False advertising of products
Q.3 The Consumer Protection Act, 2019 in India replaced which older law?
Consumer Protection Act, 1986
Sale of Goods Act, 1930
Competition Act, 2002
Indian Contract Act, 1872
Explanation - The 2019 Act replaced the 1986 Act to include provisions for e-commerce, product liability, and stricter penalties.
Correct answer is: Consumer Protection Act, 1986
Q.4 Who can file a complaint under the Consumer Protection Act?
Only the consumer
Only the seller
Consumers, recognized consumer associations, and the government
Only the government
Explanation - Complaints can be filed by individual consumers, groups, associations, or government bodies to protect consumer interests.
Correct answer is: Consumers, recognized consumer associations, and the government
Q.5 What is the role of the Consumer Disputes Redressal Commission?
To resolve consumer complaints and disputes
To regulate prices of goods
To enforce tax policies
To register businesses
Explanation - Consumer Disputes Redressal Commissions are quasi-judicial bodies that resolve consumer complaints at district, state, and national levels.
Correct answer is: To resolve consumer complaints and disputes
Q.6 Which of the following is NOT a consumer right under the Consumer Protection Act?
Right to safety
Right to information
Right to monopolize
Right to redressal
Explanation - Consumers have rights such as safety, information, choice, and redressal, but not the right to monopolize markets.
Correct answer is: Right to monopolize
Q.7 What does the 'Right to be Informed' guarantee to consumers?
Access to product details and correct information
Access to government jobs
Access to free products
Access to legal immunity
Explanation - This right ensures consumers are given accurate information about products and services to make informed decisions.
Correct answer is: Access to product details and correct information
Q.8 Under the Consumer Protection Act, who is liable for product defects?
Only the retailer
Only the manufacturer
Manufacturer, distributor, and seller
Only the consumer
Explanation - The Act holds all parties in the supply chain responsible for product defects to ensure consumer safety.
Correct answer is: Manufacturer, distributor, and seller
Q.9 Which term refers to the legal responsibility of a manufacturer for a defective product?
Breach of contract
Product liability
Negligence
Fraud
Explanation - Product liability means the manufacturer, distributor, or seller is legally responsible for any harm caused by a defective product.
Correct answer is: Product liability
Q.10 Which of the following is an example of misleading advertisement?
Providing correct nutritional information
Claiming a product has benefits it does not possess
Offering a discount for bulk purchase
Giving customer support contact
Explanation - Misleading advertisements provide false or exaggerated claims to induce consumers to buy products.
Correct answer is: Claiming a product has benefits it does not possess
Q.11 Consumer disputes at the district level are handled by:
National Consumer Commission
State Consumer Commission
District Consumer Forum
Supreme Court
Explanation - District Consumer Forums handle complaints where the value of goods or services and compensation claimed does not exceed a certain limit.
Correct answer is: District Consumer Forum
Q.12 Which of the following acts is aimed at unfair trade practices and consumer rights?
Indian Penal Code
Consumer Protection Act
Income Tax Act
Companies Act
Explanation - The Consumer Protection Act is specifically enacted to protect consumers from unfair trade practices and ensure their rights.
Correct answer is: Consumer Protection Act
Q.13 Which body handles appeals against orders of the State Consumer Commission?
District Forum
National Consumer Commission
Supreme Court directly
Local police station
Explanation - The National Commission serves as an appellate authority for complaints and orders from the State Commissions.
Correct answer is: National Consumer Commission
Q.14 What is the maximum compensation limit for a District Consumer Forum complaint?
₹20 lakh
₹1 crore
₹50,000
No limit
Explanation - District Forums entertain complaints where the value of goods or services and compensation claimed does not exceed ₹20 lakh.
Correct answer is: ₹20 lakh
Q.15 Which of the following is an example of a service covered under consumer protection law?
Medical treatment
Sale of personal property
Private employment contracts
Real estate transactions
Explanation - Services such as medical treatment, banking, and insurance fall under the purview of consumer protection laws.
Correct answer is: Medical treatment
Q.16 E-commerce platforms are covered under which law in India?
Companies Act, 2013
Consumer Protection Act, 2019
Indian Contract Act, 1872
IT Act, 2000
Explanation - The 2019 Act includes provisions for addressing consumer complaints arising from e-commerce transactions.
Correct answer is: Consumer Protection Act, 2019
Q.17 Which of the following is true about product recall?
It is a voluntary action by consumers
It is an action by manufacturers to remove defective products from the market
It is enforced by local police
It only applies to food products
Explanation - Product recall is when manufacturers remove defective products from the market to protect consumer safety.
Correct answer is: It is an action by manufacturers to remove defective products from the market
Q.18 Who can be punished under the Consumer Protection Act for misleading advertisements?
Manufacturer
Service provider
Endorsers of the product
All of the above
Explanation - All parties involved in misleading advertisements, including endorsers, can be held accountable under the Act.
Correct answer is: All of the above
Q.19 Which right ensures that consumers can seek compensation for unfair practices?
Right to Safety
Right to Redressal
Right to Information
Right to Choose
Explanation - The Right to Redressal allows consumers to seek compensation and legal remedies for defective goods or deficient services.
Correct answer is: Right to Redressal
Q.20 The Consumer Protection Act, 2019 introduced which new concept?
Product liability
Monopoly regulation
Stamp duty
Negotiable instruments
Explanation - The Act introduced provisions for product liability, holding manufacturers, distributors, and sellers accountable for defective products.
Correct answer is: Product liability
Q.21 Which of the following is NOT a function of the National Consumer Commission?
Hearing appeals from State Commissions
Resolving consumer disputes beyond ₹1 crore
Making laws for taxation
Issuing guidelines for consumer protection
Explanation - The National Commission handles consumer disputes and guidelines, but lawmaking for taxation is outside its jurisdiction.
Correct answer is: Making laws for taxation
Q.22 What is the primary purpose of misleading advertisement regulations?
To encourage aggressive marketing
To protect consumers from false or deceptive claims
To promote monopolies
To increase product prices
Explanation - These regulations ensure that consumers are not misled by false claims and can make informed purchase decisions.
Correct answer is: To protect consumers from false or deceptive claims
Q.23 Which of the following is a remedy available to consumers under the Act?
Replacement of defective goods
Refund of price paid
Compensation for loss or injury
All of the above
Explanation - Consumers can seek replacement, refund, or compensation depending on the nature of the grievance.
Correct answer is: All of the above
Q.24 Who can represent a consumer in a complaint before the Consumer Forum?
Only the consumer personally
Legal practitioner or consumer association
Only the manufacturer
Only a government official
Explanation - Consumers can be represented by lawyers or recognized consumer associations before the forums for effective redressal.
Correct answer is: Legal practitioner or consumer association