Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Commerce Guide Pdf Chapter 16 Consumerism Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Commerce Solutions Chapter 16 Consumerism

12th Commerce Guide Consumerism Text Book Back Questions and Answers

I. Choose The Correct Answer.

Questions 1.
The term ‘consumerism’ came into existence in the year …………
a) 1960
b) 1957
c) 1954
d) 1958
Answer:
a) 1960

Question 2.
Who is the father of consumer movement?
a) Mahatma Gandhi
b) Mr.John F. Kennedy
c) Ralph Nader
d) Jawaharlal Nehru
Answer:
c) Ralph Nader

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 3.
Sale of goods act was passed in the year?
a) 1962
b) 1972
c) 1930
d) 1985
Answer:
c) 1930

Question 4.
The main objective of all business enterprises is ………….
a) Providing service
b) Providing better standard of life
c) Providing necessities to the society
d) Earn profit
Answer:
d) Earn profit

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 5.
The consumer protection act came into force with effect from
a) 1.1.1986
b) 1.4.1986
c) 15.4.1987
d) 15.4.1990
Answer:
c) 15.4.1987

Question 6.
……………………… of every year is declared as a consumer protection day to educate the public about their rights and responsibilities.
a) August 15
b) April 15
c) March 15
d) September 15
Answer:
c) March 15

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 7.
Any person who buys any goods or avails services for personal use, for a consideration is called as …………..
a) Customer
b) Consumer
c) Buyers
d) User
Answer:
b) Consumer

Question 8.
The General Assembly of United Nations passed resolution of consumer protection guidelines on
a) 1985
b) 1958
c) 1986
d) 1988
Answer:
a) 1985

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

II. Very Short Answer Questions

Question 1.
Who is a consumer?
Answer:
A consumer is one who consumes goods manufactured and sold by others or created (air, water, natural resources) by nature and sold by others.

Question 2.
Define consumerism.
Answer:
“Consumerism is an attempt to enhance the rights and powers by buyers in relation to sellers”. L. Massie.

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 3.
Give two examples of adulteration.
Answer:

  1. Powdered rice/wheat is adulterated with starch.
  2. Coffee powder is adulterated with tamarind seed.

Question 4.
What is caveat emptor?
Answer:
‘Caveat emptor’ is a Latin term that means “let the buyer beware.” Similar to the phrase”sold as is” this term means that the buyer assumes the risk that a product fails to meet expectations or have defects.

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 5.
What is Caveat Venditor?
Answer:

  • “Caveat Venditor” or “let the seller Beware” means by which goods are covered by an implied warranty of merchantability.
  • Unless or otherwise advertised [sold as is ] with the buyer nearly all consumer products are guaranteed to work if used for their intended purpose.

Question 6.
Write short notes on Consumer Protection Act, 1986
Answer:
The Central Government enacted a comprehensive law called the Consumer Protection Act in 1986. This Act came into force with effect from 15.04.1987. This Act was further amended in 1993. The Act is referred to in short as ‘COPRA’.

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

III. Short Answer Questions

Question 1.
What are the important legislations related to consumerism in India?
Answer:

  •  Sale of goods act -1930
  •  The agricultural products grading and marketing act -1937
  •  The drugs and cosmetics act -1940
  •  The prevention of food Adulteration act -1954
  •  The essential commodities act -1955
  •  Weight and measures act -1958

Question 2.
What is meant by artificial scarcity?
Answer:

  • Even in times of plenty of stock, the sellers create artificial scarcity in the market to push up the prices to earn more profit.(e.g) “No stock” – Board in front of shops. “House full” – Board in front of theaters.
  • But goods and cinema tickets are available at a higher price in the black market.

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 3.
Write the importance of consumerism. [APP DEAD]
Answer:
Consumer Legislation:

  1. The Indian Contract Act, 1982
  2. The Sale of Goods Act, 1982
  3. The Essential Commodities Act, 1955
  4. The Agricultural Products Grading and Marketing Act, 1937
  5. The Prevention of Food Adulteration Act, 1954
  6. Weights and Measures Act, 1958
  7. The Trademark Act, 1999

IV. Long Answer Questions

Question 1.
How consumers are Exploited? [FD PASS]
Answer:
False advertisement:
Producers make false claims and bogus presentations about their products in the media, [quality, price, grade etc.]
With a view to mislead the consumers [eg] A ‘pinch of Rin’ ad ’23 components of complaint ad

Duplication [Spurious goods]:

  •  Duplicates of popular brands of products are produced and sold.
  •  A consumer is not in a position to differentiate the duplicate from the original thus consumer is exploited.
  •  [eg] Watches – TITAN – TITTAN
  •  Shoes – ADIDAS – ADITAS

Product risk:

  •  Harmful and banned drugs, Electrical appliances with inadequate safety provisions are sold in the market.
  •  Such goods are dangerous and injurious to the lives of the customers.
  •  eg: Electrical Gadgets with inadequate insulation.

Adulteration:

  •  Adulteration is quite common in food articles.
  •  It means mixing or substituting undesirable materials in food
  •  It spoils the health of the consumer
  •  It is a crime which cannot be pardoned
  •  eg: Mixing of stone with rice
  •  Mixing of water with milk
  •  Mixing of brick powder with chilli powder
  •  Papaya seeds added to black pepper.

Selling at a higher price:

  • The price charged by the seller for a product or service is not proportionate to the quality but at times it is more than the fair price.
  • eg: Price printed in the book X 200
  • But it is sold for X 240

Sub-standard:

  •  On opening a packed and sealed container one finds the contents with poor quality and quantity [damaged and low weight]
    eg: Ice creams -Zandubalm – Colgate paste.

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 2.
Explain the role of business in consumer protection?
Answer:
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.
  2. Avoidance of Hoarding: Business enterprises should not indulge in hoarding and black marketing to earn maximum profit.
  3. Guarantees for Good Quality: Business enterprises should not give false warranty for the products.
  4. Product Information: Business enterprises should disclose correct, complete and accurate information about the product viz. size, quality, quantity, weight etc.
  5. The in advertising: Business enterprises should not convey false, untrue, bogus information relating to the product through the advertisement.
  6. Money Refund Guarantee: Where the product becomes defective, business enterprises should replace it with new one or refund the purchase price.

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 3.
What are the needs for consumer protection?
Answer:
Though consumer is said to be the king of modern marketing his interests are virtually

  •  Shortage of goods makes the consumers to be content with whatever is offered for sales, v Quality is sacrificed.
  •  Warranty of performance has no meaning. v Health hazard is never considered.
  •  The main aim of business concerns is to earn more profit.
  •  In such a context consumer protection remains a vital importance.

Question 4.
Explain the role of consumers in Consumer Protection.
Answer:

  • The consumer who alone can put an end to all their unethical trade practices.
  • Consumer action councils established at village levels should educate consumers of the
  • It should regulate business enterprises according to the rules of the industry.
  • It should organize movement against the mal practice of manufacturers and traders.
  • It should contact the legislators to raise consumer issues in Assembly and Parliament,
  • VCO should publicise the malpractices of manufacturers and traders.
  • Consumers cooperatives need to be strengthened.

Question 5.
What are the objectives of the Consumer Protection Act, 1986?
Answer:
The Central Government enacted a comprehensive law called the Consumer Protection Act in 1986. This Act came into force with effect from 15.04.1987. It is in short, called as ‘COPRA’.
Objectives:

  1. Consumer Protection Act protects the interests of the consumers.
  2. This Act provides safeguards against defective goods and deficient services, untrade practices.
  3. It also gives settlement of consumer disputes.
  4. It is applicable to the public sector, financial and co-operative enterprises.

Question 6.
Write about five important consumer legislation.
Answer:
To protect the consumers from unfair traders, the government passed various legislative Acts.
They are as follows:

  1. The Indian Contract Act, 1982 was passed to bind the people on the promise made in the contract.
  2. The Essential Commodities Act, 1955 protects the consumers against artificial shortages created by the sellers by hoarding the goods.
  3. The Prevention of Food Adulteration Act, 1954 checks the adulteration of food articles and ensures the purity of goods supplied.
  4. Weights and Measures Act, 1958 protects the consumer against malpractices of underweight or under measurement.

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

12th Commerce Guide Consumerism Additional Important Questions and Answers

I. Choose The Correct Answer.

Question 1.
In the practical world, a ……………………………….. is a slave and not the sovereign as described.
a) Consumer
b) Producer
c) Wholesaler
d) Retailer
Answer:
a) Consumer

Question 2.
The consumer protection act was amended in the year …………………
a) 1986
b) 1987
c) 1993
d) 2000
Answer:
c) 1993

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 2.
The term ‘Caveat emptor’ is a Latin term, which means _________
(a) Let the seller beware.
(b) Let the buyer beware
(c) Consumer
(d) Marketer
Answer:
(b) Let the buyer beware

Question 4.
Which one of the following is not the correct method?
a) The trademark act – 1999
b) The essential commodities act – 1955
c) ISI act – 1952
d) The drugs and cosmetics act – 1900
Answer:
d) The drugs and cosmetics act – 1900

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 5.
Pick the odd one out.
a) Adulteration
b) Sub-standard
c) False advertisement
d) Sold as is
Answer:
d) Sold as is

Question 6.
Pick the odd one out.
a) The drugs and magic remedies act -1954
b) The Indian companies act -1956
c) Public liability insurance act -1991
d) The Narcotic drugs and psychotropic substances act -1985
Answer:
b) The Indian companies act-1956

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 7.
Choose the correct statement.
i) Significance of consumerism – Awakening and uniting consumers
ii) Encouraging unfair trade practices
iii) Awakening the government.
a) (i) is correct
b) (i) and) (ii) are correct
c) (i) and (iii) are correct and (ii) is incorrect
d) (i) (ii) (iii) are correct
Answer:
c) (i) and (iii) are correct and (ii) is incorrect

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

II. Match The Following

Question .1

List-I

List-II

(i) Indian contract act 1. 1930
(ii) Sales of goods act 2. 2009
(iii) Metrology act 3. 2002
(iv) Competition act 4. 1982

a) i-4, ii-1, iii-2, iv-3
b) i-4, ii-2, iii-1, iv-3
c) i-4, ii-3, iii-2, iv-1
d) i-3, ii-4, iii-1, iv-2
Answer:
a) i-4, ii-1, iii-2, iv-3

Question 2.

List – I

List – II

i. Caveat Emptor 1. Malpractices
ii. Caveat Venditor 2. House full
iii. Artificial Scarcity 3. Let the buyer beware
iv. Weights and Measures act 4. Let the seller beware

a) i-3, ii-4, iii-2, iv-1
b) i-4, ii-3, iii-1, iv-2
c) i-1, ii-2, iii-4, iv-3
d) i-2, ii-1, iii-3, iv-4
Answer:
a) i-3, ii-4, iii-2, iv-1

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

III. Assertion and Reason

Question 1.
Assertion (A) : Duplicate products of popular products are illegally produced and sold.
Reason (R) : A consumer is not in a position to distinguish duplicates from the originals
a) (A) and (R) are true
b) (A) and (R) false
c) (A) is true (R) is false
d) (A) is false (R) is true
Answer:
a) (A) and (R) are true

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

IV. Short Answer Questions

Question 1.
Write a short note on False Advertisements.
Answer:
The main motive of advertisements is to educate the consumers regarding various aspects of the products and services. Sometimes it makes a false representation of the quality, price, grade, composition, and utility of products. Often the products are not as attractive as shown in the advertisement by the sellers. Consumers who buy the products on the faith of claims made in advertisements are cheated.

Question 2.
Which are the three constituent elements of business?
Answer:

  •  Government
  •  Business
  •  Consumer

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 3.
What is the role of the Government in consumer protection?
Answer:

  • The government should assure an active role in safeguarding the consumers.
  • Governments [central and state] have brought out more legislation to protect the consumers in the country.
  • Most of the consumers [ including educated] are illiterate about their rights and passive
  • Mere statute book [law book] will not address the problems.
  • Law enforcement authorities should sting the offenders mercilessly.

V. Long Answer Questions

Question 1.
Explain the Evolution and growth of consumerism
Answer:
Evolution:
The major causes of consumerism in India have been identified as rising prices, poor product performance and service quality product shortages, and deceptive advertising and inflation.

Growth:

  • Consumerism or consumer movement is an outcome of the sufferings and exploitations of consumers.
  • It intends to shield the consumers from commercial terrorism and exploitative practices.
  • Its aim is to safeguard consumer interests by establishing their rights and powers in relation to products and sellers.
  • Ralph Nader fought against the monopoly and unethical trade practices of large companies in the USA.
  • He is considered to be the father of the consumer movement.
  • He initially fought against the automobile industry for violating safety standards and pollution control norms
  • Countries like Britain, Sweden, Demark, Netherlands, and even in Kenya have stringent laws against consumer exploitation in their respective countries.
  • The united nations general assembly has adopted a set of general guidelines for consumer protection.

Samacheer Kalvi 12th Commerce Guide Chapter 16 Consumerism

Question 2.
What are the salient features of the Consumer Protection Act, 1986?
Answer:

  • Protecting consumers against products and services which are harmful to the health of consumers.
  • Protecting consumers from the breach of contract by sellers /manufacturers.
  • Ensuring consumers with a supply of goods at fair quality.
  • Ensuring that consumers are charged a fair price.
  • Ensuring an uninterrupted supply of goods.
  • Protecting the consumers against unfair trade practices of unscrupulous traders.
  • Protecting the consumers against pollution of various kinds
  • Protecting consumers against the effect of competition.

Question 3.
What are the objectives of the united nations Guidelines for consumer protection?
Answer:

  • To facilitate production and distribution patterns responsive to the needs and desires of consumers.
  • To facilitate the development of independent consumer groups.
  • To encourage high levels of ethical conduct for those engaged in the production and distribution of goods and services to the consumers.
  • To encourage the development of market conditions that provide consumers with greater choice at lower prices.
  • To further international co-operative in the field of consumer protection.