Consumer Rights: 10th CBSE Economics

Question: ‘Markets do not work in a fair manner when producers are few and powerful, whereas consumers purchase in a small amounts, and are scattered.’ Explain.
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How do large companies manipulate the market? Explain with examples.

Answer:

1. Large companies can manipulate the market like control of price and supply.
2. They can pass false information to the consumer.
3. They can sell substandard goods.

Question: What were the factors responsible for arousing the consumer movement?

Answer:

1. The consumer movement arose out of the dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.
2. Before 80’s, there was no legal system available to the consumers to protect them from exploitation in the marketplace for a long time. When a consumer was not happy with a particular brand product or shop, he or she generally avoided buying that brand or product or would stop purchasing it from that shop.
3. It was presumed that it was the responsibility of the consumers to be careful while buying a commodity or service, and the seller has no responsibility.
4. Unfair trade practices, food shortage, hoarding and black marketing also encouraged the consumer movement.

Question: Explain the ‘Right to Safety’ as a consumer right.

Answer: While using many goods and services, we as consumers, have the right to be protected against the marketing of goods, and delivery of services that are hazardous to life and property. Producers need ti strictly follow the required safety rules and regulations. There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers have a safety. valve which, if defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. Consumers also need public or government action to see that this quality is maintained.

Question: (1).Explain the ‘Right to choose’ as consumer’s right.
(2). Explain the ‘Right to Seek Redressal’ as a consumer right.

Answer:

1. Consumers have the right to assess the variety of goods and services at competitive price. In case of a single supplier, the consumers have the right to be assured of satisfactory quality and services at a fair price. This right gives the consumer surety that no producer can force him/her to purchase a particular brand or product.
2. This is the most important right. The consumer has the right to seek redressal against unfair trade practices and exploitation. If any consumer, he / she has the right to get compensation depending upon to get compensation depending upon the degree of damage.

Question: What are consumer forms? What is their importance?
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Mention any three functions of consumer protection councils.

Answer: The consumer movement in India has led to the formation of various organisations locally known as Consumer Forums or Consumer Protection Councils. They guide the consumers on how to file cases in the consumer courts.

On many occasions, they also represent individual consumers in the consumer courts. These voluntary organisations also receive financial support from the government for creating awareness among the people.

Question: Explain the circumstances under which markets do not work in a fair manner.

Answer: Market do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. This happens especially when large companies with huge wealth, power and reach can manipulate the market in various ways. At times false information is passed on through the media, and other sources to attract consumers. For example, a company for years sold powder milk for babies all over the world as the most scientific product claiming this to be better than mother’s milk.

Question: How do we participate in the market as producers and consumers? Explain with two examples.

Answer:

1. Producers: most of us participate in the market as producer a goods and services. When we produce a good by exploiting natural resources. it is an activity of the primary sector. Since most of the natural products we get are from agriculture, dairy, fishing, forestry, this sector is also called agriculture and related sector. The secondary sector covers activities in which natural products are changed into other forms through ways of manufacturing that we associate with industrial activity. The tertiary are activities that help in the development of the primary and secondary sectors. These activities, by themselves, do not produce a goods but they are an aid or a support for the production process. For example, goods that are produced in the primary or secondary sector would need. These are the final goods that people as consumer use.
2. Consumers: Consumers participate in the market when they purchase goods and services that they need. These are the final goods that people as consumer use.

Question: What is Consumers International? How did it come into being?

Answer:

1. Consumers international is an umbrella body of 240 organisations from over 100 countries for consumers movement.
2. (i). In 1985, United National adopted the UN Guidelines for Consumer Protection. This was a tool for nations to adopt measures to protect consumers and for consumer advocacy groups to press their governments to do so.
   (ii). At the international level, this has become that function for consumer movement. Today, Consumers International has become a leader of 240 international organisations