This quiz works best with JavaScript enabled. Home > Class 12 > Class 12 Business Studies Chapter 12 Consumer Protection – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 12 Consumer Protection Quiz 12 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. During a marketing class, Avani presented a campaign for a new energy drink. However, her advertisements contained misleading claims about the drink's health benefits. What penalties can be imposed for misleading advertisements? A) Fines, injunctions, corrective advertising, and potential criminal charges. B) Free samples for misleading claims. C) Increased advertising budget. D) Complimentary products for all customers. Show Answer Correct Answer: A) Fines, injunctions, corrective advertising, and potential criminal charges. 2. A process whereby a conflict between a customer and a business is resolved by an impartial third party whose decision is legally binding? A) Mediation. B) Arbitration. C) Fraud. D) Conversation. Show Answer Correct Answer: B) Arbitration. 3. Which action restricts access to credit reports to prevent identity theft? A) Fraud Alert. B) Credit Freeze. C) Data Breach. D) Red Flag. Show Answer Correct Answer: B) Credit Freeze. 4. According to the Fair Housing Act, which entities are prohibited from discriminatory practices? A) Only landlords. B) Only real estate companies. C) Municipalities, banks, and homeowners insurance companies. D) Only banks. Show Answer Correct Answer: C) Municipalities, banks, and homeowners insurance companies. 5. What is one step you can take if you receive a suspicious message asking for personal information? A) Reply with your information. B) Delete the message and report it as spam. C) Forward it to your contacts. D) Ignore and do nothing. Show Answer Correct Answer: B) Delete the message and report it as spam. 6. What is the purpose of co-operating with sector regulators according to the CMA? A) Encouraging them to use their competition powers. B) Increasing market share. C) Reducing operational costs. D) Enhancing brand image. Show Answer Correct Answer: A) Encouraging them to use their competition powers. 7. What is a Ponzi scheme? A) A type of insurance policy. B) A fraudulent investment operation. C) A government-backed investment program. D) A legitimate investment opportunity. Show Answer Correct Answer: B) A fraudulent investment operation. 8. Which of the following is not a right of consumers under the Consumer Protection Act? A) Right to Safety. B) Right to be Heard. C) Right to Exploit. D) Right to Choose. Show Answer Correct Answer: C) Right to Exploit. 9. Term of duration of Central Consumer Protection Council will be for ..... years. A) 4. B) 3. C) 5. D) 2. Show Answer Correct Answer: B) 3. 10. Which one of the following is a reason for having consumer legislation? A) Some businesses are happy to exploit consumers if they can. B) Consumer legislation is easy to enforce. C) Governments generate revenue from consumer legislation. D) There are too many sellers in the market. Show Answer Correct Answer: A) Some businesses are happy to exploit consumers if they can. 11. To whom an aggrieved party can file a case against the order of the National Commission? A) Gram Panchayat. B) District Forum. C) Supreme Court. D) None of the above. Show Answer Correct Answer: C) Supreme Court. 12. What does the term "predatory lending" refer to? A) Offering loans at reasonable interest rates. B) Lending practices with unfair terms and excessive fees. C) Lending money only to high-risk borrowers. D) Government-subsidized loans. Show Answer Correct Answer: B) Lending practices with unfair terms and excessive fees. 13. A consumer has a right to file a complaint and to be heard in case of dissatisfaction with goods or services according to the A) Right to choose. B) Right to seek redressal. C) Right to be heard. D) None of the above. Show Answer Correct Answer: C) Right to be heard. 14. James has tried contacting a business directly, posting on the company's social media page, and filing a complaint with a consumer protection agency about a faulty product. Which method of lodging a consumer complaint is typically recommended as the LAST resort? A) Taking legal action against the company. B) Filing a complaint with a consumer protection agency. C) Posting on the company's social media page. D) Contacting the business directly. Show Answer Correct Answer: A) Taking legal action against the company. 15. Motor car for a busy doctor is a: A) Necessary. B) Comfort. C) Luxury. D) None of these. Show Answer Correct Answer: A) Necessary. 16. The doctrine of ..... places liability on manufacturers or suppliers for selling unreasonable dangerous goods without regard to fault or negligence. A) Bait & Switch. B) Cease & Desist. C) Strict Liability. D) Cooling-off rule. Show Answer Correct Answer: C) Strict Liability. 17. What are some key consumer protection laws and regulations in your country? A) The Consumer Protection Act, 2019. B) The Fair Trade Commission Act, 2017. C) The Consumer Rights and Responsibilities Act, 2018. D) The Consumer Protection Act, 2020. Show Answer Correct Answer: A) The Consumer Protection Act, 2019. 18. Money set aside in case unexpected costs arise A) Emergency savings. B) Emergency share. C) Emergency spending. D) Emergency fraud. Show Answer Correct Answer: A) Emergency savings. 19. Consumer courts at ..... A) National Commission. B) State Commission. C) District Forum. D) All of these. Show Answer Correct Answer: D) All of these. 20. Which of the following does not fall under the purview of CCPA? A) False advertising. B) Unfair trade practices. C) Pricing of essential commodities. D) Product recalls. Show Answer Correct Answer: C) Pricing of essential commodities. 21. How does the Fair Credit Reporting Act (FCRA) protect consumers? A) By requiring accurate and fair credit reporting practices. B) By preventing lenders from charging interest on loans. C) By regulating the minimum balance for bank accounts. D) By setting a limit on the number of credit cards a person can own. Show Answer Correct Answer: A) By requiring accurate and fair credit reporting practices. 22. Consumer protection is necessary for business for all of the following purposes, except: A) Long term survival. B) Reputation and goodwill. C) Loyalty of consumers. D) Government regulation. Show Answer Correct Answer: D) Government regulation. 23. Does the EU treat SMEs and start-ups as consumers? A) Yes. B) No. C) Only SMEs. D) Only startups. Show Answer Correct Answer: B) No. 24. This agency makes sure that businesses are fair and honest A) FTC. B) FDA. C) EPA. D) OSHA. Show Answer Correct Answer: A) FTC. 25. The Right of redressal is sought for against: A) Unfair trade practices. B) Restrictive trade practices. C) Unscrupulous exploitation. D) All of these. Show Answer Correct Answer: D) All of these. ← PreviousNext →Related 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 8Class 12 Business Studies Chapter 12 Consumer Protection Quiz 9Class 12 Business Studies Chapter 12 Consumer Protection Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books