Page 152 - Understanding Economics for Class 10

7. How should consumer become a well-informed consumer?
Ans. (i) When we as consumers become conscious of our rights while purchasing various goods
and services, we will be able to discriminate and make informed choices.
(ii) This calls for acquiring the knowledge skill to become a well-informed consumer.
Goyal Brothers Prakashan
(iii) We should become conscious of our rights.
(iv) The enactment of COPRA has led to the setting up of separate departments of consumer
affairs in central and state government.
(v) There are posters in the cities or states, through which government spread information
about legal process which people can use.

8. How is the consumer redressal process becoming cumbersome, expensive and time consuming?
Explain.
Ans. Many a time, consumers are required to engage lawyers. These cases require time for filling
and attending the court proceedings etc.
(i) In most purchases cash memos are not issued. Hence, evidence is not easy to gather.
Moreover, most purchases in the market are small retail sales.
(ii) The existing laws are not very clear on the issue of compensation to consumers injured
by defective products.
(iii) The enforcement of laws that protect workers especially in the unorganised sectors is
weak. Also, rules and regulations for working of markets are often not followed.

VI. Long Answer type Questions
1. Analyse the importance of the three-tier judicial machinery under Consumer Protection Act
(COPRA) 1986 for redressal of consumer disputes.
Ans. (i) Under COPRA, a three-tier quasi-judicial machinery at the district, state and national
levels was set up for redressal of consumer disputes.
(ii) The district level court deals with the cases involving claims upto `1 crore, the state
level courts between `1 crore and `10 crore and the national level court deals with the
cases involving claims exceeding `10 crore.
(iii) If a case is dismissed in district level court, the consumer can also appeal in the state
and then in national level courts. Thus, the Act has enabled us as consumers to have
the right to represent in the consumer courts.
(iv) It strengthened the consumer movement and provided the consumers with the right to
seek redressal against unfair trade practices and exploitation. If any damage is done to a
consumer, he/ she has the right to get compensation depending on the degree of damage.
Illustration: Amita purchased a gas stove from a retail outlet. Only after a few days of
purchase she realised that the gas stove was defective. She complained to the dealer
and the branch office, to no effect. She then went to the district consumers court and
filed a case there. She herself pleaded the case in the court. The court judge verified
the document and then ordered the dealer to replace her old gas stove with a brand.

2. “Consumer movement can be effective only with the consumer’s active involvement”.
Analyse the statement.
Ans. (i) The consumer movement in India has not made good progress. There are a number
of reasons behind it. For example, the existing laws are not effectively implemented,
the consumer redressal process is expensive and time-consuming, etc.
(ii) If such is the situation, consumers will continue to be exploited in multiple ways. It is,
therefore, necessary that they realise their role and importance. It requires a voluntary
effort and struggle involving the participation of one and all.

Economics Class X E-135