TN Board 12th Commerce Important Questions Chapter 16 Consumerism

Students get through the TN Board 12th Commerce Important Questions Chapter 16 Consumerism which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 16 Consumerism

Very short answer questions

Question 1.
What are the factors leading to consumer exploitations?
Answer:

1. Selling at a higher price
2. Adulteration
3. Duplicate goods
4. Artificial scarcity
5. Substandard
6. Product risk
7. Warranty and services
8. False advertisements

Question 2.
What is consumerism?
Answer:

1. It is the social force protecting the consumer and aiding the consumer.
2. In other words, it is an organized effort to fight against unfair marketing practices with a view to secure consumer protection.

Question 3.
How many parties involved in the sphere of a business transaction? What are they?
Answer:
There are three parties involved in the sphere of business transactions. They are

1. Role of business
2. Role of Government
3. Role of consumer

Question 4.
Explain consumer action councils.
Answer:

1. Consumer action councils established at village levels should educate consumers of the right.
2. Consumer protection agencies should take the necessary steps to investigate consumer complaint grievances and arrange to forward them to the correct forum.
3. Consumer cooperatives need to be strengthened.

Question 5.
Define hoarding.
Answer:

1. Hoarding is the purchase of large quantities of a commodity by a spectator with the intent of pushing up the price.
2. Hoarding is the practice of obtaining and holding resources in quantities greater than needed for one’s immediate use.

Question 6.
What are consumer grievances?
Answer:
Where the business enterprise has a customer care department it should handle the grievances of consumers immediately or within a definite time frame.

Question 7.
How to protect the consumer from hazards?
Answer:

1. Business enterprises should not market a product that is potentially hazardous and harmful.
2. It should test the safety of the product before they are marketed.
3. Regarding food items business enterprises should withdraw spoiled and contaminated food items.

Question 8.
What is the main aim of consumerism?
Answer:

1. It intends to shield the consumers from commercial terrorism and exploitative practices.
2. Its aim is to safeguard their interests by establishing their rights and powers in relation to products and sellers.

Question 9.
What are the major causes of consumerism in India?
Answer:
The major causes of consumerism in India have been identified as rising prices, poor product performance, service quality, product shortages, deceptive advertising, and inflation.

Short answer questions

Question 1.
Explain adulteration.
Answer:

1. It refers to mixing or substituting undesirable material in food. This causes heavy loss to the consumer.
2. This will lead to monitory loss and spoil the health.
3. Adulteration is quite common in food articles.
4. It is a crime that cannot be pardoned as it spoils the very health of consumers.

Question 2.
What is the main purpose of advertisement?
Answer:

1. The main purpose of advertisement is to educate the consuming public and customers of various aspects of the products and services.
2. Its reality advertisements convey very little information about the products.
3. Consumers who buy the products on the faith of claims made in advertisements.

Question 3.
Write the importance of consumer protection.
Answer:

1. Consumer protection has a wide agenda.
2. It is not only purported to educate consumers about their rights and responsibilities but also helps in getting their grievances redressed.
3. It provides judicial machinery for protecting the interest of consumers to come together and organize themselves into consumer associations for protection and promotion of their interest.
4. Consumer protection has a special significance for business too.

Long answer questions

Question 1.
Explain briefly the growth of consumerism.
Answer:

1. Consumerism or consumer movement is an outcome of the sufferings and exploitations of consumers.
2. It intends to shield the consumers from commercial terrorism and exploitative practices.
3. Its aim is to safeguard their interests by establishing their rights and powers in relation to products and sellers.
4. Mr. Ralph Nader pioneered the fight against monopoly and unethical trade practices of large companies in the United States.
5. He is considered to be the father of the consumer movement.
6. He initially fought against the automobile industry for violating safety. Standards and pollution control norms.
7. Countries like Britain, Sweden, Denmark, Netherlands, and even Kenya have stringent laws against consumer exploitation in their respective countries.
8. The United Nations General Assembly has adopted a set of general guidelines for consumer protection.

Question 2.
How to practice caveat emptor?
Answer:

1. Under the principle of caveat emptor, a consumer purchases a coffee mug and later discovers that it has a leak he has no choice other than to keep with him.
2. According to their principle, the buyer should have been cautious and should have thoroughly examined the product to check the defect if any.
3. A more common example is a used car transaction between two private parties, (as opposed to a dealership in which sale is subject to an implied warranty)
4. The buyer must assume the responsibility of thoroughly reaching and inspecting the car by taking it to a mechanic for a closer look before finalizing the sale.
5. But the “caveat emptor” principle cannot be applied where the car is bought fresh as a brand new car from the showroom as the deal in governed by a warranty of certain years.

Question 3.
Write briefly about caveat venditor.
Answer:

1. Caveat emptor was the rule for most purchases and land sales prior to the industrial revolution although sellers assume much more responsibilities for the integrity of their goods in the present day.
2. Today most sales in U.S fall under the principle of caveat venditor which means “let the seller beware, by which goods are covered by an implied warranty of merchantability.
3. Unless otherwise advertised (for example, “sold as is”) or negotiated with the buyer, nearly all consumer products are guaranteed to work if used for their intended purpose.

Multiple-choice questions

1. ………. is said to be the king.
(a) Producer
(b) Consumer
(c) Distribution
(d) None
Answer:
(b) Consumer

2. It refers to mixing or substituting undesirable material in food:
(a) Adulteration
(b) Higher price
(c) Duplicate goods
(d) Scarcity
Answer:
(a) Adulteration

3. ………… products of popular products are illegally produced and sold.
(a) Artificial
(b) Duplicate
(c) Sub-standard
(d) All the above
Answer:
(b) Duplicate

4. ……… is quite common in food articles.
(a) Scarcity
(b) Adulteration
(c) Both (a) and (b)
(d) None
Answer:
(b) Adulteration

5. ……… is to educate the consuming public and customers of various aspects of products.
(a) Warranty
(b) Service
(c) Advertisement
(d) Consumerism
Answer:
(c) Advertisement

6. ………. Protecting against exploitation.
(a) Consumerism
(b) Consumer
(c) Producer
(d) None
Answer:
(a) Consumerism

7. Who alone can put an end to all their unethical trade practices?
(a) Consumer
(b) Producer
(c) Both (a) and (b)
(d) Organization
Answer:
(a) Consumer

8. Which act prevents the use of fraudulent marks on the product?
(a) Trademark act
(b) Competition act
(c) Sale of goods act
(d) Legal metrology act
Answer:
(a) Trademark act

9. Which year a comprehensive law called the consumer protection act by the central Government?
(a) 1989
(b) 1986
(c) 1980
(d) 1983
Answer:
(b) 1986

10. Give examples of durable goods.
(a) Washing machines
(b) Refrigerators
(c) Car
(d) All the above
Answer:
(d) All the above

11 is the most exploited constituent in the business world.
(a) Producer
(b) Distributor
(c) Consumer
(d) All the above
Answer:
(c) Consumer

12. In which market consumers are forced to buy the short supply goods at higher prices:
(a) Money market
(b) Black market
(c) Capital market
(d) None
Answer:
(b) Black market

13. Consumerism was coined by the business community in the western world particularly in:
(a) London
(b) America
(c) Russia
(d) Europe
Answer:
(b) America

14. The term consumerism was first coined by business ih the mid:
(a) 1950
(b) 1960
(c) 1965
(d) 1963
Answer:
(b) 1960

15. In which century industrial economy reached a boom state:
(a) 20th
(b) 19th
(c) 15th
(d) 17th
Answer:
(a) 20th