This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 12 Consumer Protection – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 12 Consumer Protection Quiz 19 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A voluntary, court-enforceable agreement to stop and illegal or questionable practice. A) Cease-and-desist order. B) Consent order. C) Restitution order. D) Stop order. Show Answer Correct Answer: A) Cease-and-desist order. 2. "Protecting consumers from unfair trading to avoid negative effects for both life and wealth." What objective of consumer protection is this? A) Competitive consumption. B) Fair consumption. C) Safe consumption. D) Saving on consumption. Show Answer Correct Answer: C) Safe consumption. 3. True or False. The Consumer Credit Act ensures that all regulated debts can't be investigated by the Financial Ombudsman Service? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 4. Can Member States give rights to SMEs/start-ups as consumers? A) No. B) Yes. C) Only for start-ups. D) Only for SMEs. Show Answer Correct Answer: B) Yes. 5. What must businesses provide according to their duties? A) Unlimited returns. B) Free services. C) Discounts for everyone. D) Safe products and services. Show Answer Correct Answer: D) Safe products and services. 6. The Govt. introduced an act to protect the Consumer Protection Act is- A) Sales Act. B) Agricultural Production Act. C) Medicine & Cosmetic Act. D) All of these. Show Answer Correct Answer: D) All of these. 7. Why is consumer education vital in the context of consumer protection? A) Consumer education only benefits businesses, not consumers. B) Consumer education is vital as it enables informed decision-making and awareness of consumer rights, enhancing protection against exploitation. C) Consumer education is unnecessary as consumers are always aware of their rights. D) Consumer education leads to confusion and misinformation. Show Answer Correct Answer: B) Consumer education is vital as it enables informed decision-making and awareness of consumer rights, enhancing protection against exploitation. 8. The need for consumer protection came as a result of sellers A) Always acting in the best interest of their customers. B) Making good business decisions to protect their investors. C) Who wanted to make the least amount of money possible. D) Who made products that either injured customers or didn't do what they claimed it would do. Show Answer Correct Answer: D) Who made products that either injured customers or didn't do what they claimed it would do. 9. When did the Central Government establish Central Consumer Protection Authority? A) 24 August 2020. B) 20th July 2020. C) 24th July 2020. D) 20th July 2019. Show Answer Correct Answer: C) 24th July 2020. 10. What types of products does the Standards Organization of Nigeria regulate? A) Food and beverages, building materials, electrical appliances, chemicals, consumer goods. B) Pharmaceuticals and medical devices. C) Clothing and fashion accessories. D) Automobiles and vehicles. Show Answer Correct Answer: A) Food and beverages, building materials, electrical appliances, chemicals, consumer goods. 11. Which Act protects businesses from monopolies? A) Consumer Protection Act. B) Bureau of Indian Standards Act. C) Essential Commodities Act. D) Competiton Act. Show Answer Correct Answer: D) Competiton Act. 12. A good credit score is 300 A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 13. This is a form of stealing one's identity in which someone pretends to be someone else A) Identify robbery. B) Name robbery. C) Stolen description. D) Identity theft. Show Answer Correct Answer: D) Identity theft. 14. What does the Act encourage consumers to do? A) Trust all advertisements. B) Remain silent about issues. C) Avoid purchasing products. D) Speak up against flaws in goods. Show Answer Correct Answer: D) Speak up against flaws in goods. 15. Assurance that a defective product will be repaired or replaced without charge within a reasonable time. A) Full Warranty. B) Limited Warranty. C) All the above. D) None of the above. Show Answer Correct Answer: A) Full Warranty. 16. Withholding the delivery of goods is a possible remedy for A) The seller. B) The buyer. C) All the above. D) None of the above. Show Answer Correct Answer: A) The seller. 17. Enforcement, as one of the FCA's main areas of focus, means using powers to ensure ..... are maintained. A) Standards. B) Profits. C) Employees. D) Assets. Show Answer Correct Answer: A) Standards. 18. ..... is said to a king in a free market economy. A) Consumer. B) Seller. C) Prince. D) None of the above. Show Answer Correct Answer: A) Consumer. 19. What happens if a company breaks a consumer protection law? A) Nothing. B) They are promoted. C) They may face penalties or lawsuits. D) They get a warning only. Show Answer Correct Answer: C) They may face penalties or lawsuits. 20. Which of the following is an organization which assists consumers wanting to exercise their right to be heard? A) Justice Department. B) Patent and Trademark Office. C) Better Business Bureau. D) Federal Communications Commission. Show Answer Correct Answer: C) Better Business Bureau. 21. Which of the following is a key feature of the Consumer Credit Act 1974? A) It sets the national minimum wage. B) It provides guidelines for consumer credit agreements. C) It controls the supply of money. D) It regulates the advertising of financial products. Show Answer Correct Answer: B) It provides guidelines for consumer credit agreements. 22. Why should you sign up for alerts from your bank? A) People need the job. B) You will know if you won the lottery. C) If there is suspicious activity you will know right away. D) There are many banks. Show Answer Correct Answer: C) If there is suspicious activity you will know right away. 23. Siya recently faced an issue with a product she purchased online and wants to know which body the CCPA interacts with for consumer disputes. A) Consumer Rights Organizations. B) Consumer Disputes Redressal Commissions. C) Ministry of Consumer Affairs. D) Federal Trade Commission. Show Answer Correct Answer: B) Consumer Disputes Redressal Commissions. 24. The Fair Housing Act of 1968 was intended to prevent ..... in housing A) Fixed Rate Loans. B) Discrimination. C) Access to loans. D) Monthly Payments. Show Answer Correct Answer: B) Discrimination. 25. What is the maximum penalty for contravening a prohibition notice under the Consumer Protection Act 1987? A) A warning letter. B) Imprisonment for a term not exceeding three months or a fine not exceeding level 5 on the standard scale or both. C) A fine not exceeding level 3 on the standard scale. D) A temporary suspension of business. Show Answer Correct Answer: B) Imprisonment for a term not exceeding three months or a fine not exceeding level 5 on the standard scale or both. 26. What is the primary purpose of the Fair Credit Reporting Act (1970)? A) To allow businesses to freely share consumer information. B) To prevent false or misleading information about a consumer from being provided to another agency. C) To restrict consumer access to their credit reports. D) To promote the sale of consumer credit reports. Show Answer Correct Answer: B) To prevent false or misleading information about a consumer from being provided to another agency. 27. Any kind of property may be acquired and transferred by contract. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 28. ..... Is a new marketing tool A) Service marketing. B) Viral marketing. C) Social marketing. D) None of the above. Show Answer Correct Answer: C) Social marketing. 29. In the risk of loss, which of the following occurs when the goods are intended primarily for the buyer's use? A) Convert sale. B) Consignment sale. C) Sale or return. D) Sale on approval. Show Answer Correct Answer: D) Sale on approval. 30. The consumer provides to approach the government and public bodies when decision and policies are made which can hamper consumer interests. A) Right to be heard. B) Right to Consumer Protection Act. C) Right to consumer education. D) Right to safety. Show Answer Correct Answer: A) Right to be heard. 31. In 1962, what President introduced during his state of the union address to help protect the consumers? A) Pres. Joe Biden. B) Pres. Chester Alan Arthur. C) Pres. John F. Kennedy. D) Pres. Jimmy Carter. Show Answer Correct Answer: C) Pres. John F. Kennedy. 32. What was the primary motive of the Dodd-Frank Act when it was introduced in 2010? A) To reduce taxes on financial institutions. B) To put more stringent checks and controls on the financial services industry. C) To increase the profits of mortgage companies. D) To eliminate all financial regulations. Show Answer Correct Answer: B) To put more stringent checks and controls on the financial services industry. 33. She wrote the book Silent Spring that brought to light the problems of widespread pesticide use. A) Betty Friedan. B) Rachel Carson. C) Taylor Swift. D) Phyllis Schlafly. Show Answer Correct Answer: B) Rachel Carson. 34. What are not the objectives of Central Consumer Protection Authority? A) To regulate matters relating to unfair trade practices. B) To enforce the rights of the consumers as a class. C) To act as a redressal mechanism. D) To regulate matters relating to violation of rights of consumers. Show Answer Correct Answer: C) To act as a redressal mechanism. 35. All of these are basic consumer rights under Indian law EXCEPT which? A) The right to be grateful. B) The right to be compensated. C) The right to be heard. D) The right to be educated. Show Answer Correct Answer: A) The right to be grateful. 36. What is consumer protection? A) Laws and regulations to protect consumers from unfair business practices. B) Tax breaks for large corporations. C) Ways to increase business profits. D) Government subsidies for businesses. Show Answer Correct Answer: A) Laws and regulations to protect consumers from unfair business practices. 37. Which of the following is a key right protected under the Consumer Rights Act 2015 in Great Britain? A) The right to paid annual leave. B) The right to receive goods that are as described, of satisfactory quality, and fit for purpose. C) The right to a clean environment. D) The right to form a trade union. Show Answer Correct Answer: B) The right to receive goods that are as described, of satisfactory quality, and fit for purpose. 38. Goods that are NOT both existing and identified A) Credit goods. B) Warrantied goods. C) Auction goods. D) Future goods. Show Answer Correct Answer: D) Future goods. 39. National Consumer Day is observed on A) 24th March. B) 24th April. C) 24th December. D) 24th November. Show Answer Correct Answer: C) 24th December. 40. What happens when you declare bankruptcy A) It gets put back into the debts needed to pay. B) The court takes over your money and distributes it to those you owe. C) Money gets put back into the government. D) All of the above. Show Answer Correct Answer: B) The court takes over your money and distributes it to those you owe. 41. Which of the following was created to protect consumers from dangerous products? A) EPA. B) FTC. C) BBB. D) CPSC. Show Answer Correct Answer: D) CPSC. 42. Which is not a way to provide consistent and reliable service? A) Short waiting time. B) Dealing with problems. C) Product knowledge. D) Long waiting time. Show Answer Correct Answer: D) Long waiting time. 43. Jordan received a notice about a loan in his name that he never applied for. He suspects someone is using his identity fraudulently. What should be his immediate action? A) Contact the lender to dispute the loan. B) Change his email password. C) Request a credit freeze from the credit bureaus. D) File a police report about the identity theft. Show Answer Correct Answer: C) Request a credit freeze from the credit bureaus. 44. A popular nationalised bank has been fined ₹ 8 lakh by the country's highest consumer court, National Consumer Disputes Redressal Commission (NCDRC), for not sharing complete insurance policy details with a customer. The bank has been ordered to pay the full amount as compensation to the customer. Identify the right of consumers being violated in the given case. A) Right to seek redressal. B) Right to safety. C) Right to be heard. D) Right to information. Show Answer Correct Answer: D) Right to information. 45. One of the ways consumers can protect themselves is by A) Knowing the best time to shop. B) Knowing their consumer rights and responsibilities. C) All the above. D) None of the above. Show Answer Correct Answer: B) Knowing their consumer rights and responsibilities. 46. What does the Federal Trade Commission's Bureau of Consumer Protection do to help maintain a fair and trustworthy marketplace for all consumers? A) By printing new currency. B) By investigating and stopping deceptive business practices. C) By lowering interest rates for businesses. D) By setting prices for consumer goods. Show Answer Correct Answer: B) By investigating and stopping deceptive business practices. 47. What should businesses provide to comply with the GPSR? A) Clear instructions on how the product should be used. B) Free samples. C) Extended warranties. D) Discounts for bulk purchases. Show Answer Correct Answer: A) Clear instructions on how the product should be used. 48. The only areas the EPA monitors are water and land. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 49. Which of the following is true about unemployment insurance coverage? A) It will provide you with the same income that your employer did. B) It will stop if you don't look for work. C) It will last as long as you need it. D) None of the above. Show Answer Correct Answer: B) It will stop if you don't look for work. 50. This law was designed to eliminate abusive debt collection practices. A) Fair Credit Reporting Act. B) Fair Credit Billing Act. C) Fair Debt Collection Practices Act. D) Equal Credit Opportunity Act. Show Answer Correct Answer: C) Fair Debt Collection Practices Act. 51. Which of the following is a common tactic used by identity thieves to steal personal information? A) Sending phishing emails to unsuspecting individuals. B) Analyzing handwriting on public signs. C) Collecting fingerprints from library books. D) Observing people in crowded places. Show Answer Correct Answer: A) Sending phishing emails to unsuspecting individuals. 52. Consumers are considered to be an important asset within an economy because A) Without them there will be an increase in jobs. B) Without them the suppliers will not have a job. C) Without them there will be a great loss. D) Without them the economy will shut down. Show Answer Correct Answer: B) Without them the suppliers will not have a job. 53. What legislation gave rise to the Dodd-Frank Wall Street Reform and Consumer Protection Act? A) Glass-Steagall Act of 1933. B) Truth in Lending Act of 1968. C) Consumer Credit Protection Act of 1974. D) Financial Services Modernization Act of 1999. Show Answer Correct Answer: D) Financial Services Modernization Act of 1999. 54. What is the primary role of the Better Business Bureau (BBB)? A) To help consumers find trustworthy businesses and resolve disputes. B) To regulate the stock market. C) To enforce laws against deceptive advertising. D) To insure bank deposits. Show Answer Correct Answer: A) To help consumers find trustworthy businesses and resolve disputes. 55. E-commerce platforms are categorized as: A) Physical retailers. B) Tele-marketers. C) Marketplaces and inventory-based models. D) Agents. Show Answer Correct Answer: C) Marketplaces and inventory-based models. 56. Which provision of the Dodd-Frank Act aims to ensure the cooperation of insiders engaged in financial and trading activities? A) Whistleblower Provisions. B) Critical Provisions. C) Consumer Protection. D) Financial Stability. Show Answer Correct Answer: A) Whistleblower Provisions. 57. Which of the following is not a way of acquiring real property? A) Adverse possession. B) Eminent domain. C) Dedication. D) All of the above are ways to acquire real property. Show Answer Correct Answer: D) All of the above are ways to acquire real property. 58. The chairman of the national consumer disputes redressal council is ..... A) Serving or retired judgeof the the supreme court of India. B) Prime minister. C) President of India. D) None of the above. Show Answer Correct Answer: A) Serving or retired judgeof the the supreme court of India. 59. Which of the following are ways to protect consumer rights?A. Self regulation by businessB. Business AssociationsC. Government A) A, B & C. B) B & C. C) A & C. D) B ONLY. Show Answer Correct Answer: A) A, B & C. 60. What is the purpose of a consumer product safety standard? A) To regulate pricing of consumer goods. B) To protect consumers from hazardous products. C) To ensure products are marketed effectively. D) To promote competition among manufacturers. Show Answer Correct Answer: B) To protect consumers from hazardous products. ← 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