CA Foundation Exam June 2023 » CA MCQs » Consumer Protection Act

Consumer Protection Act

MCQs on "Consumer Protection Act ": Find the multiple choice questions on "Consumer Protection Act", frequently asked for all competitive examinations.

The Consumer Protection Act came into force in 2019 and gives quick and straightforward remuneration to consumer complaints. It defends and urges consumers to criticize deficiency and imperfections in labour and products. Assuming dealers and manufacturers practice any unlawful exchange, this Act safeguards their privileges as a consumer. The essential inspiration of this forum is to give help to both the parties(Consumer & Manufacturer) and dispose of extensive claims.

This Protection Act generally covers labour and products of all public, private, or cooperative areas, aside from those absolved by the Union government. The Act gives a stage to a consumer where they can record their objection. The gathering moves against the concerned provider, and remuneration is conceded to the consumer for the issue they have experienced.

MCQs (Multiple Choice Questions)

Ques1.) When was Consumer Protection Act 2019 ratified?

    1. August 9th 2019
    2. August 7th 2019
    3. August 9th 2018
    4. August 10th 2019

Ans. A. The Consumer Protection Act 2019 was notified on August 9th 2019. However, it came into effect on July 20th 2020.

Ques 2.) Which Consumers Right is not guaranteed under Consumer Protection Act, 2019?

    1. Right to Choose
    2. Right to Exploitation
    3. Right to be Heard
    4. Right to seek redressal

Ans. B. Consumers have the following six guaranteed consumer rights under the Act • Right to Safety • Right to be Informed • Right to Choose • Right to be heard • Right to seek redressal • Right to Consumer Awareness

Ques 3.) Who can make a complaint under this Act?

    1. Consumer
    2. 3rd Person
    3. Alien
    4. None of the above

Ans. A. i. a consumer; or ii. any voluntary consumer association registered under any law for the time being in force; or iii. the Central Government or any State Government; or iv. the Central Authority; or v. one or more consumers, where numerous consumers have the same interest; or vi. in case of death of a consumer, his legal heir or legal representative; or vii. in case of a consumer being a minor, his parent or legal guardian

Ques 4.) Which of the following are Consumer Disputes Redressal Agencies?

    1. Panchayat Commission
    2. Municipal Commission
    3. State Commission
    4. None of the above.

Ans. C. There are quasi-judicial bodies established under the Act to provide simple, speedy and inexpensive redressal to the consumers’ grievances. These have been established at three levels: District, State and National known as • District Consumer Disputes Redressal Commission or District Commission • State Consumer Disputes Redressal Commission or State Commission • National Consumer Disputes Redressal Commission or National Commission.

Ques 5.) What is the Fiscal jurisdiction of the District Commission?

    1. Up to 1 Crore
    2. Up to 5 Crore
    3. Up to 10 Crore
    4. None of the above

Ans. A. District Commission: Upto 1cr, State Commission: 1 cr – 10cr, National Commission: above 10cr

Ques 6.) Where can the complaint be filed?

    1. Civil Court
    2. District Court
    3. District Forum
    4. State Forum

Ans. C. A complaint shall be instituted in a District Commission within the local limits of whose jurisdiction the: • Place of business or residence of opposite parties, or • Place of business or residence of the complainant, or • where the cause of action, wholly or in part, arises.

Ques 7.) What are the powers of the Central Authority?

    1. To promote the rights
    2. To protect the rights
    3. To enforce the rights
    4. All of the above.

Ans D. The Union Authority shall protect, promote and enforce the rights of the consumers as a class, and prevent violation of Consumers Rights under the Act.

Ques 8.) Who heads the Central Authority’s, Investigation Wing?

    1. Police Officer
    2. Magistrate
    3. Director-General
    4. None of the above

Ans C. Central Authority’s Investigation Wing shall be headed by a Director-General to conduct an inquiry or investigation.

Ques 9.) Does Central Authority have a Chief Commissioner?

    1. Yes
    2. No
    3. Maybe

Ans A. The Central Authority shall consist of a Chief Commissioner and several other Commissioner.

Ques 10.) Who elects Chief Commissioner and other Commissioner?

    1. State Government
    2. President
    3. Central Government
    4. Prime Minister

Ans C. Chief Commissioner and several other Commissioner to be appointed by the Central Government.

Ques 11.) Does the Central Authority have Suo Moto powers? 

    1. Yes
    2. No
    3. Maybe

Ans A. Yes, the Central Authority may inquire or cause an inquiry or investigation to be made into violations of Consumer Rights, either Suo moto or on a complaint received or on the directions from the Central Government.

 Ques 12. Does the Central Authority have the power to file complaints? 

    1. No
    2. Yes
    3. Maybe

Ans B. Yes, the Central Authority can file complaints before the District Commission, the State Commission or the National Commission, as the case may be.

Ques 13. On what grounds you cannot claim compensation from the product manufacturer?

    1. Manufacturing Defect
    2. Defect in design
    3. Deviation from specification
    4. Damaged by consumer

Ans D. A consumer can not claim compensation if the consumer himself damages the product. 

A product manufacturer shall be liable in a product liability action if— a. the product contains a manufacturing defect; or b. the product is defective in design, or c. there is a deviation from manufacturing specifications; or d. the product does not conform to the express warranty, or e. the product fails to contain adequate instructions of correct usage to prevent any harm or any warning regarding improper or incorrect usage. 2. A product manufacturer shall be liable in a product liability action even if he was not negligent or fraudulent in making the express warranty of a product.

Ques 14.) Does the consumer need an advocate to represent his case in the Commission? 

    1. Yes
    2. Maybe
    3. No

Ans C. Consumer Commissions are semi-legal bodies to give short and expedient equity. These have been kept liberated from the confounded legal methodology. The way is very casual. What’s more, they were freed from the shackles of the Civil Court. There is no requirement for a lawyer or some other person. Pleader and consumer can see himself or his delegate record and address his complaint.

Ques 15.) What is the time limit for filing the complaint?

    1. within one year
    2. within two years
    3. within three years
    4. within ten years

Ans B. The complaint will be recorded somewhere around two years from the date the reason for action has emerged. This would mean two years from the day the lack of service or merchandise deformity has emerged/been identified. This is otherwise called the limitation period for lodging the complaint.

Ques 16.) Is there any fee for filing a complaint with the Commission?  

    1. Yes
    2. No
    3. Maybe

Ans A. Each complaint recorded will be joined by fees, as crossed Demand Draft drawn on a nationalized bank or through a crossed Indian Postal Order for the President of the District Commission or the Enlistment centre of the State Commission or the Registrar of the National Commission, and payable at the individual spot where the District Commission, State Commission or the National Commission is arranged, or through electronic mode according to game plan made by the Commission concerned.

Ques 17.) How much change in the amount to be deposited for filing an appeal?

    1. 10%
    2. 25%
    3. 30%
    4. 50%

Ans D. For appeal before the State Commission and National Commission, 50% of the total award amount was passed by the lower court.

Ques 18.) Is an E-commerce website included in Consumer Protection Act?

    1. Yes 
    2. No
    3. Maybe

Ans A. E-commerce under CP Act 2019 means buying or selling goods or services, including digital products, over digital or electronic networks.

Ques 19.) Harm in this Act refers to: 

    1. damage to any property other than the product itself; 
    2. personal injury, illness or death; 
    3. mental agony or emotional distress attendant to personal injury or disease or damage to property
    4. All of the Above 

Ans D. “harm” about a product liability includes— i. damage to any property, other than the product itself; ii. personal injury, illness or death; iii. mental agony or emotional distress attendant to personal injury or disease or damage to property; or iv. any loss of consortium or services or other loss resulting from harm referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii) but shall not include any harm caused to a product itself or any damage to the property on account of breach of warranty conditions or any commercial or economic loss, including any direct, incidental or consequential loss relating to it.

Ques 20.) Can I claim compensation if the product itself is damaged?

    1. No
    2. Yes
    3. Maybe

Ans A. No, damage to the product itself cannot be the base for product liability compensation.