Class 12 Business Studies Chapter 12 Notes

The Business Studies subject is an integral part of the commerce curriculum in Class 12. In this curriculum, the subject provides information about business administration and management. Each and every chapter holds equal importance and imparts knowledge that students seek. One such chapter is Consumer Protection, the 12th chapter of the Business Studies syllabus for Class 12. While there are many study materials students can refer to, the most important material is the notes. 

The Business Studies class 12 Chapter 12 Notes are written in such a way that students will be able to get hold of topics quickly and discover how the law protects consumers. In an attempt to help students, the team of experts at Extramarks have created Chapter 12 Business Studies Class 12 Notes. These notes will help the students prepare for the forthcoming board examinations. 

Business Studies Class 12 Notes Chapter 12- Consumer Protection is written in simple language with point-by-point explanations. Students can access a variety of additional study tools on the Extramarks website in addition to the Class 12 Business Studies Chapter 12 Notes. They can get access to all materials, including NCERT books, CBSE revision notes, CBSE sample papers, CBSE previous year question papers, and so on.

Key Topics Covered in Class 12 Business Studies Chapter 12 Notes

The key topics covered in Extramarks class 12 Business Studies chapter 12 notes include

CONSUMER PROTECTION

Consumer protection refers to protecting customers against anti-consumer trade practices by producers or merchants. Class 12 Business Studies Chapter 12 Notes provide an in-depth explanation of the chapter.

Earlier Approach: The previous strategy was known as ‘caveat emptor,’ which means “let the buyer beware.”

Present Approach: However, the current strategy is known as ‘caveat venditor,’ which means “let the vendor beware.”

Consumers are put at risk by exploitative and unfair commercial activities such as faulty and unsafe goods, adulteration, false and misleading advertising, hoarding, and black-marketing. As a result, comprehensive consumer protection is essential against such activities.

Importance Of Consumer Protection

Class 12 Business Studies chapter 12 Notes by Extramarks provides a deep insight into the importance of Consumer protection.

1. From the Consumer’s point of view:

• Unorganised Consumers: In India, consumers are still unorganised, and few consumer organisations are advocating for them.
• Widespread Exploitation of Consumers: Consumers are harmed on a massive scale as a result of a range of unfair commercial practices, and consumer protection is required to protect them.
• Consumer Ignorance: Because the majority of customers are uninformed of their rights and remedies, they are frequently exploited. Consumer protection is essential to safeguard customers from such unethical tactics.

1. From a business point of view:

• Social Responsibility: Owners, workers, the government, and consumers are just a few stakeholders to whom a company has social responsibilities. As an outcome, consumers should be able to buy high-quality items at a reasonable price.
• The business utilises societal resources: Every business makes use of social resources, and it is its responsibility to consider and act in the best interests of society.
• Government intervention: The government will take action against a corporation if it participates in any form of unfair commercial practices, which will affect the company’s reputation.
• Long-term business interests: It is in the company’s best interests to keep its consumers satisfied. To win the global competition, customers must be happy. Repeat purchases from satisfied customers assist in growing the company’s client base.
• Moral justification: Any company has a moral duty to operate in its customers’ best interests and to avoid exploitation, and unfair trade practices, including defective and harmful products, adulteration, false and misleading advertising, hoardings, black marketing, and so on.

The Consumer Protection Act, 2019

• The Consumer Protection Act of 2019 intends to protect and promote customers’ interests by quickly and cost-effectively addressing their concerns. It took effect on July 20th, 2020.
• Except for Jammu and Kashmir, it covers the whole nation of India.
• It applies to all sorts of businesses, including e-commerce organisations, whether they are producers or merchants and whether they offer goods or services.
• Consumers are given certain rights under the Act in order to empower them and protect their interests.

SCOPE OF THE ACT

This Act has a broad scope and covers a wide variety of activities. Extramarks Class 12 Business Studies Chapter 12 Notes explain that all enterprises are covered by this Act:

• Both large and small-scale projects are possible.
• The private, public, and cooperative sectors are all covered.
• It is also relevant to e-commerce businesses.
• It is relevant to the entire country of India.

Legal Protection to Consumers

Class 12 Business Studies Chapter 12 Notes explains how consumers are protected by the following legal framework:

• The Indian Contract Act, 1872:

The Indian Contract Act of 1872 establishes the conditions for a contract signed by the parties to be valid and the remedies available in the event of a contract violation.

• The Sale Of Goods Act, 1930:

The Act provides buyers with a number of safeguards and advantages in relation to the sale of goods agreement.

• The Essential Commodities Act, 1955:

Profiteers, hoarders, and black marketers are prohibited from participating in anti-social behaviour under this Act. Its purpose is to preserve control over essential commodity production, supply, and distribution.

• The Agricultural Produce Act, 1937  (Grading and Marketing):

The Act specifies grading standards for agricultural and animal products.

• Adulteration Act, 1954:

The Adulteration Act of 1954 was created to protect public health by preventing the adulteration of food items and preserving their purity.

• The Standard Of Weights and Measures, 1976:

It safeguards clients against under-weighting or under-measurement.

• The Trades Mark Act, 1999:

The use of misleading markings on products is prohibited under this Act.

• The Competition Act, 2002:

If businesses engage in unethical behaviour, the Act protects consumers.

• The Bureau of Indian Standards Act, 1986:

The Bureau’s principal responsibilities include developing quality standards for goods and certifying them using the BIS process.

CONSUMER

A consumer is someone who purchases or gets consumer products or services in exchange for money. Anyone who benefits from such services is included, but anyone who utilises such services for financial gain is excluded.

A consumer is referred to as a person who buys products or receives services for compensation. As per the 2019 Consumer Protection Act, a person who pays or promises to pay, has partly paid or partly promised, or has paid under any delayed payment system for a product or service is called a consumer. 

Get on board with Extramarks and get access to class 12 Business Studies chapter 12 notes, which will come in handy during your upcoming examination preparation.

Consumer Rights:

Extramarks Class 12 Business Studies Chapter 12 Notes provides students with a pointwise explanation of Consumer Rights.

1. Right to be Informed: The buyer has the right to get complete information about a product before acquiring it, including information on its quality, quantity, ingredients, purity, and price.
2. Right to Choose: Consumers have the privilege to select any product from a variety of possibilities depending on their personal tastes. As a result, no vendor has the right to use deceptive tactics to persuade a customer to buy a product.
3. Right to Safety: Consumers have a right to be protected against products and services that are hazardous to their health and well-being. Consumers have a right to expect excellent products, and they have the right to seek a quality guarantee from the vendor. Quality marks for food products, industrial items, agricultural products, and gold include ISI, FPO, AGMARK, and Hallmark.
4. Right to Consumer Education: Buyers have the right to study and be well-informed throughout their lives. If the goods or services do not fulfil his expectations, they should be notified of their rights and remedies. The Indian government has included consumer education into the school curriculum and is educating customers about their rights through the media. Efforts like Jaago Grahak Jaago, for example, are one such strategy to inform customers.
5. Right to Seek Redressal: A customer has the right to seek redress if a product or service fails to fulfil their expectations or is hazardous. The consumer might be entitled to a replacement or repair of the defective item and compensation for any losses incurred.
6. Right to be Heard: In such instances, the customer has the right to express his opinion about the goods and services and the right to be heard. As a result, if a customer believes his rights have been infringed, he has the right to register a complaint. In India, different consumer cells have been established to provide people with the opportunity to be heard.

Consumer Responsibilities

There are certain responsibilities of a good consumer that have been explained by Extramarks Class 12 Business Studies Chapter 12 Notes:

• To be Knowledgeable: Learn as much as you can about the various products on the market to make an informed and conscious selection.
• Honesty: Avoid buying from merchants that use unethical practices like black marketing and hoarding by being honest in your interactions and buying only legal goods and services.
• Standardised products: To assure quality, always buy standardised items. Among other things, look for the ISI mark on electrical items, the FPO label on food products, and the Hallmark on jewellery.
• Assert yourself: Assert yourself to ensure that you get a good deal and a good price on the merchandise.
• Follow instructions: Follow the instructions inscribed on the product and learn about the potential dangers before using it.
• Cautious purchasing: Read labels thoroughly for information on costs, net weight, manufacture, and expiration dates, among other things.
• Avoid Littering: Respect and cherish the environment, and refrain from engaging in any action that would have a negative impact on it.
• Cash Memo: Request a cash memo while purchasing goods or services. This will serve as the transaction’s evidence.
• Take action whenever needed: File a complaint with an appropriate consumer forum if you find a flaw in the quality of the things you bought or the services you received. Don’t be hesitant to act, even if the amount involved is small.
• Consumer societies: Create consumer societies that will participate actively in consumer education and protection.

Students can register at Extramarks to access various other study materials in addition to Class 12 Business Studies Chapter 12 notes.

Ways And Means Of Consumer Protection

The goal of consumer protection can be accomplished in a variety of ways, about which the students can learn from Class 12 Business Studies Chapter 12 Notes.

• Self-regulation by Business: Enlightened businesses recognise that providing excellent customer service is their long-term interest. Socially responsible businesses adhere to ethical norms and procedures when engaging with clients.
• Consumer Awareness: A well-informed consumer can speak out against unfair commercial practices and unethical exploitation if he is aware of his rights and the remedies accessible to him.
• Business Associations: Associations such as the Federation of Indian Chambers of Commerce (FICCI) and the Confederation of Indian Industries (CII) have established codes of conduct for their members to follow while interacting with clients.
• Consumer Organisations: They play a vital role in informing consumers about their rights and protecting them. These organisations have the power to compel businesses to prevent consumer abuse and malpractice.
• Government: By establishing different policies, the government can defend the interests of consumers. For example, the Government of India has established a toll-free national consumer helpline number 1800114000 (from 9:30 AM to 5:30 PM). In India, the legal system comprises a number of statutes that protect consumers. The 1986 Consumer Protection Act is the most significant of these restrictions. The Act establishes a three-tier system for resolving consumer complaints at the district, state, and national levels. The three-tiered machinery’s redress process has been described below.

Get on board with Extramarks and get access to class 12 Business Studies chapter 12 notes, which will come in handy during your upcoming examination preparation.

Redressal Under The Consumer Protection Act

Extramarks precisely curated Class 12 Business Studies Chapter 12 Notes by the subject experts provide students with redressals under the consumer protection act.

1. Who can file a complaint under CPA, 2019:

• a customer; or
• any volunteer consumer organisation that is currently registered under any legislation; or
• the government of the United States or any state government; or
• the Central Government; or
• one or more customers, if there are a large number of consumers who have a common interest; or
• in the event of a consumer’s death, his legal heir or representative; or
• In the event of a minor, the consumer’s parent or legal guardian.

1. Redressal Agencies:

According to the Customer Protection Act of 2019, there is a three-tier procedure for handling consumer complaints:

• District Forum: A President and two additional members make up the District Forum, one of whom should be a woman. They are appointed by the respective state government. When the value of the products or services in issue and the compensation sought do not exceed rupees twenty lakhs, a complaint can be registered with the relevant District Forum. After evaluating the laboratory results and hearing the person against whom the complaint is lodged, the District Forum will issue an order. If the unhappy party is not satisfied with the District Forum’s decision, he may file an appeal with the State Commission within 30 days after the decision.
• State Commission: A President and at least two additional members, one of whom should be a woman, make up each State Commission. The relevant state government appoints them. When the value of the products or services in issue and the compensation sought exceeds rupees twenty lakhs but not exceeding Rs. 1 crore, a complaint can be filed with the relevant State Commission. Appeals against District Forum orders can also be brought to the State Commission. After evaluating the laboratory report and hearing the person against whom the complaint is lodged, the State Commission will issue an order. If the unhappy party is not satisfied with the State Commission’s decision, he may file an appeal with the National Commission within 30 days of the decision.
• National Commission: A President and at least four additional members make up the National Commission, one of whom should be a woman. The government of the United States appoints them. When the value of the products or services in issue and the compensation sought to exceed Rs. 1 crore, a complaint can be filed with the National Commission. Appeals against State Commission orders can also be made with the National Commission. After evaluating the laboratory report and hearing the party against whom the complaint is lodged, the National Commission will issue an order.

Get on board with Extramarks and get access to class 12 Business Studies chapter 12 notes, which will come in handy during your upcoming examination preparation.

WHO CAN FILE A COMPLAINT?

Class 12 Business Studies Chapter 12 Notes explains this in detail. A complaint before any consumer forum can be made by: 

• Any consumer can make a complaint with the proper consumer forum on their own and does not require the assistance of an advocate or professional.
• Any consumer group that is registered.
• The federal government or a state government.
• One or more consumers acting on behalf of a group of consumers who share a common interest.
• An heir or legal representative of a dead customer.
• A complaint under the Consumer Protection Act of 1986, Section 2 (b).

RELIEFS AVAILABLE TO THE CONSUMERS

Class 12 Business Studies Chapter 12 Notes describes in detail the reliefs available to the consumers. If the consumer court is convinced that the complaint is legitimate, it might give the other party one or more of the following orders: 

• The items’ defects are removed.
• Defects in the services must be fixed.
• Damaged items are replaced with new ones that are defect-free.
• Refunding the amount paid by the complaint.
• Payment of a reasonable amount of compensation in the event of a loss or harm.
• Punitive damages may be paid in inappropriate situations.
• Unfair/restrictive commercial practices must be discontinued or abandoned.
• The selling of dangerous goods and services is halted.
• Payment to the consumer welfare fund (at least 5%) must be spent in a specified way.
• To offset the effect of misleading marketing, run corrective commercials.
• All parties should be reimbursed for their expenditures.

ROLE OF NGOs AND CONSUMER ORGANISATIONS

Several consumer organisations and non-governmental organisations (NGOs) have been established in India to protect and promote the interests of consumers. Non-governmental organisations (NGOs) are non-profit organisations that work to improve people’s lives. Consumer organisations and non-governmental organisations (NGOs) serve a variety of purposes in the protection and promotion of consumer interests. These are some of them:

• Organising training programmes to educate the general population about consumer rights
• Publication of journals and other publications to disseminate information about consumer issues, legal reports, accessible redress, and other topics of interest.
• Comparative testing of consumer items at accredited laboratories to determine the relative quality of rival brands and publicise the results for the benefit of customers.
• Consumers are encouraged to protest loudly and attend seminars and workshops. Measures were taken against merchants who engaged in unethical business activities.
• Providing legal support to consumers in the form of aid, legal advice, and other forms of legal assistance in the pursuit of a legal remedy.
• On behalf of customers, filing complaints at competent consumer courts.

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Extramarks Class 12 Business Studies Chapter 12 Notes presents some of the most important consumer organisations and non-governmental organisations (NGOs) working to defend and promote consumers’ interests:

1. Consumer Coordination Council, Delhi
2. Common Cause, Delhi
3. Voluntary Organisation in Interest of Consumer Education (VOICE), Delhi
4. Consumer Education and Research Centre (CERC), Ahmedabad
5. Consumer Protection Council (CPC), Ahmedabad
6. Consumer Guidance Society of India (CGSI), Mumbai

The Extramarks Class 12 Business Studies Chapter 12 Notes are considered to be the most ideal study material to understand consumer protection. Students may refer to it during exams.

Class 12 Business Studies Chapter 12 Notes: Exercises and Answer Solutions

Class 12 Business Studies Chapter 12 Notes are available at the Extramarks website, wherein subject experts have prepared these notes as per the CBSE syllabus. Register online with Extramarks to clear all the doubts and get access to all exercises and answer solutions. 

A list of detailed solutions for all the questions is listed below:

• Very Short Answer type Questions and Solution- 5 Questions
• Short Answer type Questions and Solution- 5 Questions
• Long Answer Type Questions and Solutions- 6 Questions

Get on Board with Extramarks to get access to Class 12 Business Studies Chapter 12 Notes and all the exclusive news about the upcoming board examinations. In addition, you may also get access to the following.

CBSE revision notes

CBSE sample papers

CBSE previous year question papers

CBSE extra questions

NCERT Exemplar Class 12 Business Studies

Students can use the answers to the NCERT Exemplar Class 12 Business Studies questions to help them prepare for their final examinations. These sample questions are a little more complex, and they cover a wide variety of subjects covered in each chapter of class 12’s Business Studies course. At Extramarks, we offer Exemplar questions, problems, and solutions for class 12 Business Studies for students to refer to.

Students will thoroughly learn the ideas discussed in each chapter by studying the NCERT Exemplar for Business Studies class 12. Each of the questions in these resources is relevant to the CSBE Class 12 curriculum. Our professionals offer the most effective solutions to the problems that students face. All the notes are based on the NCERT question pattern.