This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 12 Consumer Protection – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 12 Consumer Protection Quiz 15 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An individual who acquires goods for primarily for personal use A) Customer. B) Consumer. C) Client. D) Patient. Show Answer Correct Answer: B) Consumer. 2. Chapter II of the Consumer Protection Act, 2019 came into effect from: A) 21st July 2020. B) 20th July 2020. C) 19th August 2019. D) 20th September 2020. Show Answer Correct Answer: B) 20th July 2020. 3. The media can play a role in drawing attention to consumer issues. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 4. What does the Consumer Protection Act provide for? A) Three-tier machinery consisting of District Forum, State Commission, and National Commission. B) Formation of protection councils in every state. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 5. Any substance or mixture of substances which is toxic, corrosive, irritant, a strong sanitizer, flammable or combustible or generates pressure through decomposition, heat or other means A) Hazardous substance-. B) Substance. C) Chemicals. D) Poison. Show Answer Correct Answer: A) Hazardous substance-. 6. Which act primarily governs health and safety in the workplace in Great Britain? A) The Consumer Rights Act 2015. B) The Health and Safety at Work etc. Act 1974. C) The Environmental Protection Act 1990. D) The Competition Act 1998. Show Answer Correct Answer: B) The Health and Safety at Work etc. Act 1974. 7. President of State Commission is appointed by- A) Chief-Justice of High Court. B) Central Government. C) State Government. D) President of India. Show Answer Correct Answer: C) State Government. 8. Consumers need to be protected because of A) Their lack of skills. B) Good suppliers. C) The way they think. D) Unfair trading practices. Show Answer Correct Answer: D) Unfair trading practices. 9. What is the maximum value for complaints handled by the District Forum? A) Rs. 50 lakhs. B) Rs. 10 lakhs. C) Rs. 1 crore. D) Rs. 20 lakhs. Show Answer Correct Answer: D) Rs. 20 lakhs. 10. Products that are linked to each other in that the use of one leads to the use of another (e.g. cars and gas), are called: A) Substitute products. B) Fake products. C) Linked products. D) Complement products. Show Answer Correct Answer: D) Complement products. 11. What should a consumer do if they receive a defective product? A) Keep it and not inform anyone. B) Immediately dispose of it. C) Contact the seller for a refund or replacement. D) Sell it to another consumer. Show Answer Correct Answer: C) Contact the seller for a refund or replacement. 12. What actions can the Consumer Protection Council take against businesses? A) Offer loans to struggling businesses. B) Provide tax breaks to businesses. C) Investigate complaints, impose fines, issue warnings, mandate corrective actions, and promote consumer education. D) Conduct market research for companies. Show Answer Correct Answer: C) Investigate complaints, impose fines, issue warnings, mandate corrective actions, and promote consumer education. 13. Mabel has £120, 000 in a savings account in a bank. The bank has gone bankrupt and they're not able to secure peoples' savings. Who will help her? A) FOS. B) FCA. C) FSCS. D) None of the above. Show Answer Correct Answer: C) FSCS. 14. Reena purchased one litre of pure desi ghee from a shopkeeper. After using it, she had doubts that it was adulterated. She sent it for a laboratory test which confirmed that the ghee was adulterated. State any six reliefs available to Reena if she complains and the consumer court is satisfied about the genuineness of the complaint A) REPLACEMENT OF PRODUCT. B) REFUND. C) COMPENSATION FOR ANY INJURY CAUSED. D) ALL OF THE ABOVE. Show Answer Correct Answer: D) ALL OF THE ABOVE. 15. What is the maximum penalty for a manufacturer or trader found guilty of selling adulterated or misbranded products under the Consumer Protection Act of India? A) Fine up to Rs. 10, 000. B) Imprisonment for life. C) Fine up to Rs. 50, 000. D) Imprisonment for up to 5 years. Show Answer Correct Answer: B) Imprisonment for life. 16. What are the consumer rights when buying goods and services? A) They should be fit for purpose, of satisfactory quality and match the description. B) They should work as intended. C) All the above. D) None of the above. Show Answer Correct Answer: A) They should be fit for purpose, of satisfactory quality and match the description. 17. When filing a complaint with the Better Business Bureau, what is an advantage compared to direct contact with a business? A) The BBB can force businesses to respond to complaints. B) The BBB can immediately issue refunds to consumers. C) The BBB creates a public record of complaints that other consumers can see. D) The BBB automatically files lawsuits against businesses with complaints. Show Answer Correct Answer: C) The BBB creates a public record of complaints that other consumers can see. 18. What is a 'Consumer Transaction'? A) The supply of goods or services by a supplier to a consumer. B) A government transaction. C) A transaction that does not involve goods. D) A transaction between two businesses. Show Answer Correct Answer: A) The supply of goods or services by a supplier to a consumer. 19. The President and members of the State Commission shall be appointed by the State Commission on the recommendation of a selection committee NOT consisting of the following persons, namely: A) Justice of the High Court. B) Nominee of the Chief Secretary of the State. C) Chief Justice of the High Court. D) Secretary in charge of Consumer Affairs of the State Government. Show Answer Correct Answer: A) Justice of the High Court. 20. The Dodd-Frank Wall Street Reform and Consumer Protection Act enhances transparency and accountability in the financial industry. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 21. How does consumer education play a role in promoting consumer protection? A) By helping consumers understand their rights and responsibilities, enabling them to make informed decisions and protect themselves from fraud or unfair practices. B) By promoting fraudulent practices to consumers. C) By providing false information to consumers. D) By encouraging consumers to ignore their rights and responsibilities. Show Answer Correct Answer: A) By helping consumers understand their rights and responsibilities, enabling them to make informed decisions and protect themselves from fraud or unfair practices. 22. British Airways was colluding to set the price of fuel surcharge for long haul flights. They were charged $ 300 million for doing what? A) Deceptively pricing. B) Price fixing. C) Deceptive estimates. D) Trying to create a monopoly. Show Answer Correct Answer: B) Price fixing. 23. A consumer can file a suit in ..... , when the value of goods and service along with the compensation claimed does not exceed ₹ 20 lakhs. A) State Commission. B) National Commission. C) District Forum. D) Supreme Court. Show Answer Correct Answer: C) District Forum. 24. As the consumer is having the rights they are also having ..... A) Promotion. B) Measures. C) Duties. D) Responsibilities. Show Answer Correct Answer: D) Responsibilities. 25. Which authority has jurisdiction to entertain complaints where the value of goods/services and compensation claimed is less than Rs. 20 lakhs? A) District Forum. B) National Commission. C) Supreme Court of India. D) State Commission. Show Answer Correct Answer: A) District Forum. 26. Which is an example of Public Relations or publicity? A) A news release about interesting activities of the firm. B) A television advertisement. C) A door to door salesman. D) Discounts and special offers. Show Answer Correct Answer: A) A news release about interesting activities of the firm. 27. Liquidation means to do what? A) Sell assets to raise cash. B) Soak your debts with cash. C) Pay off all your credit cards. D) None of the above. Show Answer Correct Answer: A) Sell assets to raise cash. 28. Eesha is studying different types of regulations for her business class. She comes across the term GPSR. The GPSR is part of which broader category? A) Financial regulations. B) Environmental regulations. C) Consumer protection issues. D) Employment laws. Show Answer Correct Answer: C) Consumer protection issues. 29. The example of having all of the models of autonomous (self-driving) car with flawed software, is an example of which? A) Manufacture defect. B) Design defect. C) Failure to warn. D) None of the above. Show Answer Correct Answer: B) Design defect. 30. A consumer buys an air purifier that doesn't match the features advertised.Which consumer right has been violated? A) Right to be informed. B) Right to equality. C) Right to education. D) Right to be protected against unfair trade practice. Show Answer Correct Answer: A) Right to be informed. 31. Who can file a complaint under Consumer Protection Act, 1986? A) Any consumer can file a complaint on his/ her own and does not need the services of advocate/professionals. B) Any registered consumer association. C) The Central Government or any State Government. D) All of the above. Show Answer Correct Answer: D) All of the above. 32. Identity theft occurs by A) Someone stealing your wallet. B) Hacking into your computer. C) Someone stealing non-shredded paperwork. D) All of the above. Show Answer Correct Answer: D) All of the above. 33. They enact legislation, establish consumer protection agencies and organize educational programmes to protect consumers. The above statement describe the role of the A) Non-profit organizations. B) Government agencies or regulatory bodies. C) Private companies. D) International trade associations. Show Answer Correct Answer: B) Government agencies or regulatory bodies. 34. In the U.S consumer protection agencies are called consumer watch dogs A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 35. An avenue for victims of injustice from government agencies or public utilities A) The Consumer Affairs Division. B) The Bureau of Standards. C) The Ombudsman. D) The Ministry of Public Utilities. Show Answer Correct Answer: C) The Ombudsman. 36. Red box makes an error and sends a DVD to an incorrect address. The person at that address ..... ? A) Should expect a visit from the police. B) Can be made to pay for what they got. C) Needs to go to the post office & ship the DVD back to Red Box. D) Can keep the DVD. Show Answer Correct Answer: D) Can keep the DVD. 37. One of the most important pieces of identification you need to protect is your A) Drivers License. B) Pass Port. C) Social Security Card. D) School Id. Show Answer Correct Answer: C) Social Security Card. 38. Obligation implicitly imposed on all sellers. A) Limited warranty. B) Implied warranty. C) Warranty of merchantability. D) Express warranty. Show Answer Correct Answer: B) Implied warranty. 39. Which of the following is the most common cause of product liability claims? A) Labeling defect. B) Warning defect. C) Manufacturing defect. D) Design defect. Show Answer Correct Answer: C) Manufacturing defect. 40. Which of the following is NOT protected by consumer laws? A) Loan terms. B) Celebrity endorsements. C) Credit reporting. D) Product labeling. Show Answer Correct Answer: B) Celebrity endorsements. 41. If Mrs. Jones runs a game-of-chance for money and she does not follow the rules, you can sue her in small claims court if you lose < $ 1, 000? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 42. Which choice pairs the term with its most accurate definition? A) Phishing-laws that prevent unfair business practices. B) Data Breach-fraudulent calls requesting money. C) Ponzi Scheme-investment fraud paying earlier investors with new investors' money. D) Scam-legal incentive program. Show Answer Correct Answer: C) Ponzi Scheme-investment fraud paying earlier investors with new investors' money. 43. What action should you take if a local retailer sells an item above the recommended government controlled price A) Ignore the price and purchase the item anyway. B) Negotiate a lower price with the retailer. C) Report the retailer to the appropriate regulatory authority. D) Buy the item from a different retailer without reporting. Show Answer Correct Answer: C) Report the retailer to the appropriate regulatory authority. 44. Chapter 13 Bankruptcy is ..... A) Forgiving. B) Restructuring business. C) Chance to repay debts. D) None of the above. Show Answer Correct Answer: C) Chance to repay debts. 45. The maximum fine for a company committing an offence under CPA is: A) RM200, 000. B) RM250, 000. C) RM100, 000. D) RM150, 000. Show Answer Correct Answer: B) RM250, 000. 46. Our government started to move toward protecting consumers because of why? A) The sheer variety and abundance of goods. B) The complexity of goods & intense advertising claims. C) The size of companies and lack of customer service. D) All of the above. Show Answer Correct Answer: D) All of the above. 47. Mehak Limited has hired 300 salesmen who will be assigned the task of contacting prospective buyers and creating awareness about the new range of organic incenses introduced by the company. Identify the element of promotion been described in the given lines. A) Public relation. B) Advertising. C) Sales promotion. D) Personal selling. Show Answer Correct Answer: D) Personal selling. 48. All of these are basic consumer rights under Indian law except; A) Right to seek redressal. B) Right to be assured. C) Right to be heard. D) Right to gamble. Show Answer Correct Answer: D) Right to gamble. 49. A seller states, "This laptop will run for ten hours on a single charge." What makes this statement an express warranty? A) It is an assurance about product quality and performance. B) It is a disclaimer removing liability for all defects. C) It is a promise limited only to original purchasers. D) It is a general puffery without measurable claim. Show Answer Correct Answer: A) It is an assurance about product quality and performance. 50. Where can he appeal further against the decision of 'District Forum'? A) State Commission. B) National Commission. C) Consumer Committee. D) None of the above. Show Answer Correct Answer: A) State Commission. 51. Maximum age limit of the member of National Commission is- A) 60 years. B) 75 years. C) 65 years. D) 70 years. Show Answer Correct Answer: D) 70 years. 52. What is the maximum age limit of members of National Consumer Dispute Redressal Forum? A) 70. B) 75. C) 67. D) 65. Show Answer Correct Answer: A) 70. 53. A consumer can be a corporation if it acquires goods for household purposes. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 54. Which best distinguishes a Fraud Alert from a Credit Freeze? A) A Fraud Alert blocks all new accounts while a Credit Freeze only warns creditors. B) A Fraud Alert warns creditors; a Credit Freeze restricts access to credit reports. C) Both terms mean the same thing. D) A Credit Freeze warns creditors; a Fraud Alert restricts access to reports. Show Answer Correct Answer: B) A Fraud Alert warns creditors; a Credit Freeze restricts access to credit reports. 55. Offering consumers credit is heavily regulated through several pieces of legislation and is governed by which authority? A) FCC. B) FDA. C) FSA. D) FCA. Show Answer Correct Answer: D) FCA. 56. Who is considered a consumer under the CPA? A) A manufacturer buying raw materials. B) A person buying goods for household use. C) A business buying goods for resale. D) A retailer purchasing for trade. Show Answer Correct Answer: B) A person buying goods for household use. 57. True or False. The Consumer Credit Act does not give consumers protection from purchases? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 58. When shopping, avoid A) Generic products. B) Impulse buying. C) Checking sale racks. D) Store-brand product. Show Answer Correct Answer: B) Impulse buying. 59. What is an example of misleading advertisement? A) Hotel has a swimming pool. B) Tour guide provides a map. C) Restaurant offers a loyalty program. D) Hotel shows beach image, but actually far from the beach. Show Answer Correct Answer: D) Hotel shows beach image, but actually far from the beach. 60. A complaint before the appropriate consumer forum can be filed by: A) Any registered consumer's association. B) A legal heir or representative of a deceased consumer. C) The Central Government or any State Government. D) All of these. Show Answer Correct Answer: D) All of these. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Business Studies Chapter 12 Consumer Protection Quiz 1Class 12 Business Studies Chapter 12 Consumer Protection Quiz 2Class 12 Business Studies Chapter 12 Consumer Protection Quiz 3Class 12 Business Studies Chapter 12 Consumer Protection Quiz 4Class 12 Business Studies Chapter 12 Consumer Protection Quiz 5Class 12 Business Studies Chapter 12 Consumer Protection Quiz 6Class 12 Business Studies Chapter 12 Consumer Protection Quiz 7Class 12 Business Studies Chapter 12 Consumer Protection Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books