Business Laws concept Consumer protection act-MBA study material

Who is Consumer :  Who utilizes the product .

Who is Customer: Who purchases the product. -->  Buyer is not a consumer.

Consumers: Consumer means any person who buys and goods for a consideration which has been paid fully or partly and should be used for the domestic purpose  at the buyers need not be consumers. Consumers does not include a person who obtains goods for resale for rental or for any commercial purpose

                Maximum consumers people are unorganized sector people (masses),illiterates , ignorant ,not well informed .

                Majority of consumers in India are unorganized ,poor, helpless, un-informed ,illiterates on the other hand manufacturers are organized , well informed , intelligent.

                Because of the ignorance of the consumers the manufacturers makes falses and misleading descriptions about the nature and quality of the goods .They use false weights and measurements .

                These are some examples of of unethical ,unfair trade practices followed by the manufacturers for the purpose of promotion of their sales . Therefore a common consumers needs protection and support from the manufacturers

                                “Justice Delayed is  Justice Denied ”

                He not in a position to approach civil court because of his weak economic position ,ignorance, illiterates , but he needs quick and cheaply &speedy justice .The biggest helps in this and came from an government of India .Therefore a number .of Acts  passed by the government from time to time to protect the rights & interest  of  the consumer.

 This act has not only recognized consumer rights but also established a redressal system.

Note:Free services or personal services have been excluded from the protective spell of the consumers protection act.

Objectives of Consumer Protection Act:

1.       The consumer protection act protects the interests of the consumer.

●      District Forum

●      State commission

●      National Commission

2.       Consumer Protection Act Protects the rights of the consumer .

There are 6 rights for consumer.

●      Right of Protection

●      Right of Information

●      Right of Assurance

●      Right of Hearing.

●      Right of Redressal.

●      Right of consumer education

Unfair trade practices:

                Any trader for the purpose of promoting his sales adopts some misleading, misguiding ,manipulating practices .Those Practices are known as as unfair trade practices.The following are the examples of unfair trade practices .

1.       False Representation /Statements.

2.       Misleading advertisements.

3.       Offer of gifts/praises.

4.       Offer of Contests/Lotteries.

5.       Sale of sub-Standard goods.

1 False representation regarding standard ,quality, quantity, Purity , grade ,composition,model etc.

2 False representation regarding sponsorship ,approval, performance, characteristics,uses(benefits)etc.

3 False representation  regarding  guaranties, warranties of good.

Warranties – A written guarantee promising to repair or replace the purchased goods.

Guarantee – It is a promise that a product is of a particular quality.

4 False promise to replace, repairs, maintenance on article.

5 Misleads the public concerning the price.

6 Gives false facts by speaking critically if another person goods or services.

Machinery for settlement of consumer disputes

                                (Or)

Legal machinery for the redressal of the consumer grievances

                                (or)

Legal Machinery for the protection of consumer rights /interest

                The following legal machinery is available to a common consumer to protect his rights , his interests and for the settlements his disputes ,for the redressal of his grievances .Those are:

●      A District Forum.

●      A State Commission.

●      A National Commission.

Basis	A District Forum	A State Commission	A National Commission
●      Composition ●      Term of Office ●      Resignation ●      Salary And Terms and Conditions of Service. ●      Jurisdiction ●      Appeal	President: District Judge Two other members: A selection committee will appoint One Should be a women . The members are very competent, ability, adequate knowledge,experience,capacity in dealing with problems relate into economics, law, commerce, accountancy, industry and public administration. Every member of the district forum shall hold office for a term of 5 years /up to the age of 65 years which ever is earlier .He/She Shall not be eligible for re-appointment. Any member may resign his office in writing under his hand writing addressed to the state government on such resignation being accepted ,his office shall become vacant .The vacancy may be filled by an appointment of a person possessing the qualifications mentioned above. The salary & other allowances payable,the other terms and conditions of the member  of the district forum may be prescribed by the State government. The District forum shall have jurisdiction where the value of goods or services , The compensation claim does not 5 lakhs. Any person aggrieved by the judgment  made by district forum may  prefer an appeal against such order to the state commission with in  a period of 30 days from the date of order.	President: High court judge. Two other members: A selection committee will appoint One must be women. SAME Every member of the district forum shall hold office for a term of 5 years /up to the age of 67 years which ever is earlier .He/She Shall not be eligible for re-appointment. Any member may resign his office in writing under his hand writing addressed to the state government on such resignation being accepted ,his office shall become vacant .The vacancy may be filled by an appointment of a person possessing the qualifications mentioned above. Addressed to Central Government. The salary & other allowances payable,the other terms and conditions of the member  of the district forum may be prescribed by the Central Government. The State commission will take up the cases which have been referred by the district forum through appeals claims does not exceed 5 to 20 lakhs. Any person aggrieved by the judgment  made by district forum may  prefer an appeal against such order to the National commission with in  a period of 30 days from the date of order.	President: Supreme court Judge. Four other members: A Selection committee will appoint One should be women. SAME Every member of the district forum shall hold office for a term of 5 years /up to the age of 70 years which ever is earlier .He/She Shall not be eligible for re-appointment. Any member may resign his office in writing under his hand writing addressed to the state government on such resignation being accepted ,his office shall become vacant .The vacancy may be filled by an appointment of a person possessing the qualifications mentioned above. Addressed to President of India. The salary & other allowances payable,the other terms and conditions of the member  of the district forum may be prescribed by the President of India. The National Commission will take up which are referred by state commission through appeals more than 20 lakhs. Any person aggrieved by the judgment  made by district forum may  prefer an appeal against such order to the Supreme court  with in  a period of 30 days from the date of order.