This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 12 Consumer Protection – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 12 Consumer Protection Quiz 20 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are the basic consumer rights? A) The basic consumer rights include the right to safety, the right to be informed, the right to choose, and the right to be heard. B) The basic consumer rights include the right to never receive faulty products. C) The basic consumer rights include the right to return items whenever. D) The basic consumer rights include the right to unlimited shopping. Show Answer Correct Answer: A) The basic consumer rights include the right to safety, the right to be informed, the right to choose, and the right to be heard. 2. What is the limit of amount of goods, services and compensation upto which cases can be filed with State Consumer Dispute Redressal Forum? A) Rs.1 crore-10 crore. B) Upto Rs. 20 lakh. C) Upto Rs.10 crore. D) Upto Rs. 1 crore. Show Answer Correct Answer: A) Rs.1 crore-10 crore. 3. The Right to be Heard states that the government should consider consumer complaints when creating laws. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 4. What is the 'Volcker Rule' element of the Dodd-Frank Wall Street Reform and Consumer Protection Act? A) A regulation prohibiting banks from making high-risk investments. B) A rule requiring banks to maintain a regular balance sheet. C) A regulation allowing banks to lend money to investors. D) A rule forcing banks to loan money to small businesses. Show Answer Correct Answer: A) A regulation prohibiting banks from making high-risk investments. 5. Consumer protection adopts measures to protect consumers from unethical malpractices by businesses and provide a swift redressal of their grievances with regard to: A) Overcharging a product, i.e., charging a product above its Maximum Retail Price. B) Supplying of defective goods. C) Use of malfunctioning weights and measures that lead to underweight of products. D) Supply of inferior services, i.e., quality of service lesser than the condition agreed. Show Answer Correct Answer: C) Use of malfunctioning weights and measures that lead to underweight of products. 6. Ash doesn't read the directions when he assembles his new barbeque. He uses the wrong screws, and the lid snaps off. Can he get a remedy from the store? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 7. What challenges does the Consumer Protection Council face in Nigeria? A) High levels of public awareness. B) Strong regulatory compliance and support. C) Inadequate funding, limited public awareness, regulatory enforcement issues, and lack of collaboration. D) Excessive funding from the government. Show Answer Correct Answer: C) Inadequate funding, limited public awareness, regulatory enforcement issues, and lack of collaboration. 8. What is the primary purpose of the National Credit Act in South Africa? A) To regulate interest rates. B) To provide financial education. C) To promote responsible lending. D) To eliminate all forms of debt. Show Answer Correct Answer: C) To promote responsible lending. 9. A collection of laws that governs various types of business transactions A) ACC. B) FTC. C) SEC. D) UCC. Show Answer Correct Answer: D) UCC. 10. Which one of these actions might a seller take if faulty goods are returned? A) Offer a full refund. B) Apologise but explain that the goods were perfectly OK when they were sold. C) Explain that it is company policy not to give refunds. D) Advise the customer to take legal action. Show Answer Correct Answer: A) Offer a full refund. 11. What is the role of NGOs in consumer protection? A) To create awareness about consumer rights. B) To regulate prices in the market. C) To manufacture goods. D) To sell products at lower prices. Show Answer Correct Answer: A) To create awareness about consumer rights. 12. In effective consumer protection, it is essential that ..... involved A) Consumers. B) Businessmen. C) Goverment. D) All of these. Show Answer Correct Answer: D) All of these. 13. From which entity is the authority to create rules, regulations, and guidance to protect investors granted to by the Dodd-Frank Wall Street Reform and Consumer Protection Act? A) Department of the Treasury. B) U.S. Financial Protection Bureau. C) Securities and Exchange Commission. D) Comptroller of the Currency. Show Answer Correct Answer: C) Securities and Exchange Commission. 14. Mia is trying to understand what the current law applies to regarding digital content. What does it cover? A) Any digital content, physical or downloaded. B) Only downloaded content. C) Only physical content. D) Only streaming content. Show Answer Correct Answer: A) Any digital content, physical or downloaded. 15. What is the purpose of a 'notice to warn' under the Consumer Protection Act 1987? A) To provide marketing guidelines. B) To require a person to publish a warning about unsafe goods. C) To inform consumers about product pricing. D) To approve the sale of goods. Show Answer Correct Answer: B) To require a person to publish a warning about unsafe goods. 16. Where NGO Legal Society is situated? A) Kolkata. B) Mumbai. C) Tamilnadu. D) New Delhi. Show Answer Correct Answer: A) Kolkata. 17. A manufacturer shall be liable under product liability if: A) The product is expensive. B) The packaging is attractive. C) The product is imported. D) The product has manufacturing or design defects. Show Answer Correct Answer: D) The product has manufacturing or design defects. 18. Which type of scam is most frequently reported to the Federal Trade Commission by consumers? A) Phishing scams. B) Imposter scams. C) Lottery scams. D) Online shopping scams. Show Answer Correct Answer: B) Imposter scams. 19. Provides compensation to customers who have suffered financially as a result of the actions of a financial service provider, if the provider is unable to pay the compensation themselves. This is the role of ..... A) Financial Ombudsman Service. B) Financial Services Compensation Scheme. C) Financial Conduct Authority. D) Office of Fair Trading. Show Answer Correct Answer: B) Financial Services Compensation Scheme. 20. Which act provides safeguards and reliefs to the buyers of the goods in case the goods purchased do not match with express or implied conditions or warranties? A) The Indian Contract Act, 1872. B) Sale of Goods Act, 1930. C) Consumer Protection Act, 1986. D) None of the above. Show Answer Correct Answer: C) Consumer Protection Act, 1986. 21. In India, which government body is primarily responsible for enforcing consumer protection laws at the national level? A) Ministry of Commerce and Industry. B) Consumer Affairs Department. C) National Consumer Disputes Redressal Commission (NCDRC). D) Reserve Bank of India (RBI). Show Answer Correct Answer: B) Consumer Affairs Department. 22. Purchasing items on the spur of the moment? A) Timing Purchase. B) Unit Pricing. C) Impulse Buying. D) Comparison Shopping. Show Answer Correct Answer: C) Impulse Buying. 23. Aarav is concerned about his rights as a consumer and wants to understand the role of the CCPA as per the Consumer Protection Act, 2019. What is one of the key functions of the CCPA? A) To manage consumer funds. B) To provide legal aid to consumers. C) To conduct inquiries and investigations. D) To represent consumers in court. Show Answer Correct Answer: C) To conduct inquiries and investigations. 24. Which new concept was introduced in CPA 2019? A) E-commerce audit. B) Product liability. C) Public interest litigation. D) Licensing system. Show Answer Correct Answer: B) Product liability. 25. What is the role of consumer organizations in consumer protection? A) Advocate for consumer rights, provide education and information to consumers, and work with government agencies to enforce consumer protection laws. B) Encourage consumers to ignore their rights. C) Lobby for corporate interests. D) Provide false information to consumers. Show Answer Correct Answer: A) Advocate for consumer rights, provide education and information to consumers, and work with government agencies to enforce consumer protection laws. 26. Which of the following is a good way to protect yourself from identity theft? A) Post personal information online. B) Use the same password everywhere. C) Monitor your financial statements regularly. D) Share your passwords with friends. Show Answer Correct Answer: C) Monitor your financial statements regularly. 27. Which of the following statements about consumer rights is true? A) Consumers have no rights regarding product safety. B) Consumers do not have the right to complain about defective products. C) Consumers can be forced to accept products without warranties. D) Consumers have the right to be informed about the products they purchase. Show Answer Correct Answer: D) Consumers have the right to be informed about the products they purchase. 28. Which act makes it illegal to discriminate when renting or selling housing? A) Fair Debt Collection Practices Act (FDCPA). B) Dodd-Frank Act. C) Fair Housing Act. D) Truth in Lending Act (TILA). Show Answer Correct Answer: C) Fair Housing Act. 29. Any person who does not agree with the decision of District Commission can appeal to the A) State Commission. B) National Commision. C) High Court. D) District Senior Commission. Show Answer Correct Answer: A) State Commission. 30. Consumer protection affords safeguards to consumers in which of these areas? A) Safe and well-constructed items. B) Faulty, defective products. C) Clear advertising campaigns. D) Healthful foods and drinks. Show Answer Correct Answer: B) Faulty, defective products. 31. What is the burden of proof on the claimant as per Section 3 in product liability cases? A) To prove the defect. B) To prove negligence. C) To prove safety standards. D) To prove damages. Show Answer Correct Answer: A) To prove the defect. 32. A complaint can be filed against ..... who adopt(s) unfair trade practices. A) Trader only. B) Manufacturer only. C) Trader and Manufacturer. D) Consumer. Show Answer Correct Answer: C) Trader and Manufacturer. 33. What is the role of the District Forum under the Consumer Protection Act? A) To file complaints on behalf of consumers. B) To handle complaints where the value does not exceed Rs. 20 lakh. C) To send goods for testing in a lab. D) To entertain complaints exceeding Rs. 1 crore. Show Answer Correct Answer: B) To handle complaints where the value does not exceed Rs. 20 lakh. 34. In India, it was found that "milk" was diluted with water, detergent and fat. This is known as what type of food? A) An illegal food (in India). B) An adulterated food. C) A scam food. D) A false food. Show Answer Correct Answer: B) An adulterated food. 35. A partial refund on the price of a product? A) Service Contract. B) Warranty. C) Rebate. D) Unit Pricing. Show Answer Correct Answer: C) Rebate. 36. Appeal against the judgment given by a District Forum can be filed in State Commission. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 37. A legal heir or representative of a deceased consumer cannot file a complaint in consumer forum A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 38. Right to choose means the right to be A) Able to choose products and services based on competitive prices. B) Purchase goods and services. C) To be informed about the quality. D) To buy more thank you can afford. Show Answer Correct Answer: A) Able to choose products and services based on competitive prices. 39. Complaint for a product having value of Rs. 1 Crore can be filed in ..... A) National Commission. B) National Court. C) Supreme Court. D) All of the above. Show Answer Correct Answer: A) National Commission. 40. The Tribunal for Consumer Claims only provides advice to the Minister. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 41. What is the primary purpose of the Fair Debt Collection Practices Act (FDCPA) of 1977? A) To set guidelines for debt collectors' behavior. B) To increase the interest rates on loans. C) To provide tax benefits to debt collectors. D) To eliminate all forms of debt. Show Answer Correct Answer: A) To set guidelines for debt collectors' behavior. 42. ..... should ensure supply of quality goods and services at reasonable prices. A) Businessmen. B) Goverment. C) All the above. D) None of the above. Show Answer Correct Answer: A) Businessmen. 43. Which of the following is not a function of Nongovernment Organisations (NGOs) for enhancing Consumer Protection? A) Accelerating consumer awareness. B) Filing suits, complaints on behalf of consumers. C) Solving personal and marital problems of consumers. D) Collecting data on different products and testing them. Show Answer Correct Answer: C) Solving personal and marital problems of consumers. 44. ..... provides the adequate and accurate information about quality, quantity, purity, standard and the price of goods and services. A) Right to safety. B) Right to be informed. C) Right to consumer education. D) Right to choose. Show Answer Correct Answer: B) Right to be informed. 45. What should the Board of Directors primarily be responsible for? A) Approving and overseeing the implementation of the BSFI's CPRMS. B) Ensuring that the practices of the BSFIs are aligned with the approved consumer protection policies. C) Identifying, measuring, monitoring, and mitigating FCP risks. D) Providing training to employees on consumer protection. Show Answer Correct Answer: A) Approving and overseeing the implementation of the BSFI's CPRMS. 46. Which standardisation mark should be checked by Ms. Jain while buying gram flour? A) ISI. B) Agmark. C) FPO. D) Hallmark. Show Answer Correct Answer: B) Agmark. 47. A form of identity theft when thieves create fake websites designed to look like a bank or online store and then trick people out of account or login information. A) Social Engineering. B) Phishing. C) Skimming. D) Pharming. Show Answer Correct Answer: D) Pharming. 48. The Prudential Regulation Authority (PRA) is responsible for the prudential regulation of: A) Financial advisers. B) Consumer credit providers. C) Banks, building societies, credit unions, insurers and major investment firms. D) None of the above. Show Answer Correct Answer: C) Banks, building societies, credit unions, insurers and major investment firms. 49. What would be a secure password to use online? A) The word "password". B) 12345678. C) Your birthdate. D) 1Ha$ p&Ud. Show Answer Correct Answer: D) 1Ha$ p&Ud. 50. Consumer Protection Act came into force in: A) 1988. B) 1986. C) 1982. D) 1984. Show Answer Correct Answer: B) 1986. 51. Under the amended Consumer Protection Act, 1993 the time limit for filing a complaint has been limited to a period of ..... year. A) 3. B) 2. C) 5. D) 4. Show Answer Correct Answer: B) 2. 52. Which logo would you like to see while purchasing a tin of edible oil? A) ISI. B) Agmark. C) All the above. D) None of the above. Show Answer Correct Answer: B) Agmark. 53. What is caveat emptor? A) "Let the seller beware. B) "Let the buyer beware. C) Both A and B. D) None of the above. Show Answer Correct Answer: B) "Let the buyer beware. 54. True or False. The Financial Conduct Authority is funded by membership fees charged to financial service providers? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 55. The government of the Bahamas accepts some of the responsibilities for consumer protection. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 56. A settlement of a dispute or controversy by setting up an independent person between two contending parties in order to aid them in the settlement of their disagreement. A) Mediation. B) Settlement. C) Legal Action. D) Complaint. Show Answer Correct Answer: A) Mediation. 57. Rita wants to buy a food processor. What qualification certification mark should she look for to ensure about its quality. A) FPO. B) WOOLMARK. C) ISI. D) AGMARK. Show Answer Correct Answer: C) ISI. 58. What should be provided to Financial Consumers to ensure they understand the terms and conditions prior to signing a contract? A) Clear verbal explanation. B) Written contract only. C) No explanation needed. D) None of the above. Show Answer Correct Answer: A) Clear verbal explanation. 59. Which of the following is a defense a manufacturer can use in a product liability case? A) The product was misused by the consumer. B) The product was altered after purchase. C) The consumer did not read the instructions. D) All of the above. Show Answer Correct Answer: D) All of the above. 60. What is the main goal of the committee on consumer policy? A) Educating consumers about their rights. B) Creating consumer protection laws. C) Promoting international cooperation. D) Improving consumer policy research. Show Answer Correct Answer: D) Improving consumer policy research. ← 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