BUSINESS STUDIES

Chapter-12 : Consumer Protection

ASSERTION REASON TYPE QUESTIONS
1 Assertion(A): Consumer need to be given legal protection against certain trade
practices and business methods.
Reason(R): Protection as per market forces and ‘caveat Emptor’ is not enough
as per perfectly competitive market is an economist’s dream and consumer
sovereignty are a myth.
(a) Both Assertion (A) and Reason (R) are true and Reason(R) is correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason(R) is not the
correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is False
(d) Assertion (A) is false but Reason (R) is true

2 Assertion(A): Appeals against state commission can also be filed before

national commission of consumer protection.
Reason(R): consumer protection institution is three tier-structure.
(a) Both Assertion (A) and Reason (R) are true and Reason(R) is correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason(R) is not the
correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is False
(d) Assertion (A) is false but Reason (R) is true
3 Assertion(A): Consumer protection such as NGOs and civil societies ensure
check and balance against ill practices of business.
Reason(R): Consumer protection act 1986, gives legal status to such
organization.
(a) Both Assertion (A) and Reason (R) are true and Reason(R) is correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason(R) is not the
correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is False
(d) Assertion (A) is false but Reason (R) is true
4 Assertion(A): Appeals against the State Commission can also be filed
before the National Commission of consumer protection
Reason (R): Consumer Protection institution is three tier-structure
a. Both Assertion and reason are true and reason is correct explanation of
assertion.
b. Assertion and reason both are true but reason is not the correct
explanation of assertion.
c. Assertion is true, reason is false.
d. Assertion is false, reason is true.
5 Assertion (A): The Consumer Protection Act provides certain rights to
consumers with an objective to protect their interests.

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 Reason (R): Consumer can buy a product or avail a service without any
responsibility
a. Both Assertion and reason are true and reason is correct explanation of
assertion.
b. Assertion and reason both are true but reason is not the correct
explanation of assertion.
c. Assertion is true, reason is false.
d. Assertion is false, reason is true.
6 Assertion(A): The consumer has the freedom to choose from a variety of
products according to his/her needs and desires from the
market.
Reason(R): The consumer has a right to be protected against goods and
services which are hazardous to health
a. Both Assertion and reason are true and reason is correct explanation of
assertion.
b. Assertion and reason both are true but reason is not the correct
explanation of assertion.
c. Assertion is true, reason is false.
d. Assertion is false, reason is true.
7 Assertion (A): The consumer has a right to get relief in case the product or
service falls short of his or her expectations.
Reason (R): A grieved consumer is entitled to suitable relief under the
Consumer Protection Act.
a. Both Assertion and reason are true and reason is correct explanation of
assertion.
b. Assertion and reason both are true but reason is not the correct
explanation of assertion.
c. Assertion is true, reason is false.
d. Assertion is false, reason is true.
8 Assertion (A): The Consumer Protection Act 1986 makes only seller
responsible.
Reason (R): The consumer has a right to get relief in case the product or
service falls short of his or her expectations.
a. Both Assertion and reason are true and reason is correct explanation of
assertion.
b. Assertion and reason both are true but reason is not the correct
explanation of assertion.
c. Assertion is true, reason is false.
d. Assertion is false, reason is true.
9 ASSERTION (A): Consumers can file their complaint in various court
according to their compensation worth.
REASONING(R): Consumer Protection Act 1986 has provided a Three Tier
Grievances Machinery.
(A)Both Assertion and reason are true and reason is correct explanation of
assertion.
(B) Assertion and reason both are true but reason is not the correct explanation
of assertion.
(C) Assertion is true, reason is false.

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 (D) Assertion is false, reason is true.
10 ASSERTION (A): A shopkeeper can-not file complaint against producer for
bad quality.
REASONING(R): Consumer is the person who purchase the goods or service
for his own consumption.
(A)Both Assertion and reason are true and reason is correct explanation of
assertion.
(B) Assertion and reason both are true but reason is not the correct explanation
of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
11 Assertion: The consumer has a right to be protected against goods and services
which are hazardous to life and health.
Reason: it is the duty of consumer be careful in purchase of goods.
(a) if both (A) and (R) are true.
(b) if both (A) and (R) are false.
(c) if (A) is true.
(d) if (R) is true.
12 Assertion: The consumer has a right to have complete information about the
product he/she intends to buy.
Reason: it comes under the right to seek redressal.

(a) if both (A) and (R) are true.

(b) if both (A) and (R) are false.
(c) if (A) is true.
(d) if (R) is true.

13 Assertion: The consumer has the freedom to choose from a variety of product
at competitive prices.
Reason: Consumer is said to be king.

(a) if both (A) and (R) are true.

(b) if both (A) and (R) are false.
(c) if (A) is true.
(d) if (R) is true.
14 Assertion: The consumer has a right to acquire knowledge and to be a well –
informed consumer throughout life.
Reason: consumer has to buy only standardized goods.

(a) if both (A) and (R) are true.

(b) if both (A) and (R) are false.
(c) if (A) is true.
(d) if (R) is true.
15 Assertion: The consumer has a right to file a complaint and to be heard in
Case of dissatisfaction with a good or a service.
Reason: To file a complaint a consumer must have cash memo/proof of the
goods purchased.
(a) if both (A) and (R) are true.

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 (b) if both (A) and (R) are false.
(c) if (A) is true.
(d) if (R) is true.
16 Assertion (A): It is the responsibility of the consumer to buy only standardized
goods as they provide quality assurance.
Reason (R): The consumers have certain responsibilities to follow and should
keep a few things in mind while purchasing goods and services.
(A) Both assertion and reason are true and the reason is the correct explanation
of the assertion.
(B) assertion and reason both are true but reason is not the correct explanation
of assertion.
(C) Assertion is true. Reason is false.
(D) Assertion is false. Reason is true
17 Assertion (A): Right to safety under CPA, 1986 taken from UN convention on
consumer protection.
Reason (R): Right to safety will ensure good quality of products to consumer.
(A) Both assertion and reason are true and the reason is the correct explanation
of the assertion.
(B) assertion and reason both are true but reason is not the correct explanation
of assertion.
(C) Assertion is true. Reason is false.
(D) Assertion is false. Reason is true
18 Assertion (A): The Consumer Protection Act, 2019 has not defined the criteria
of Consumer Disputes Redressal Commission (CDRCs). Reason (R): Under the
Consumer Protection Act, 2019 the National CDRC will hear complaints worth
more than 10 crores.
(A) Both assertion and reason are true and the reason is the correct explanation
of the assertion.
(B) assertion and reason both are true but reason is not the correct explanation
of assertion.
(C) Assertion is true. Reason is false.
(D) Assertion is false. Reason is true
19 Assertion (A): State Commission to consumer protection is head by a
President, who have been a Judge of High Court.

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 Reason (R): Consumer Protection Commission is a Quasi-Judicial Body.
(A) Both assertion and reason are true and the reason is the correct explanation
of the assertion.
(B) assertion and reason both are true but reason is not the correct explanation
of assertion.
(C) Assertion is true. Reason is false.
(D) Assertion is false. Reason is true
20 Assertion (A): Appeals against the State Commission can also be filed before
the National Commission of consumer protection.
Reason (R): Consumer protection institution is three tier-structure.
(A) Both assertion and reason are true and the reason is the correct explanation
of the assertion.
(B) assertion and reason both are true but reason is not the correct explanation
of assertion.
(C) Assertion is true. Reason is false.
(D) Assertion is false. Reason is true
21 Assertion (A): Many enlightened business firms have set up their own
consumer service and grievance cells.
Reason (R): The consumer has a right to file a complaint and to be heard in
case of dissatisfaction with a good or a service.
Make the correct choice as:
(A) Both Assertion and reason are true and Reason is the correct explanation
of Assertion
(B) Both Assertion and Reason are true and Reason is not correct explanation
of Assertion
(C) Assertion is true but Reason is false
(D) Assertion is false but Reason is true.

22 Assertion (A): The Consumer Protection Act 2019 has not defined the criteria
of Consumer disputes redressal commission.
Reason (R): Under the Consumer Protection Act 2019 the National Consumer
Disputes Redressal Commission will hear complaints worth more than Rs. 10
crores.
Make the correct choice as:
(A) Both Assertion and reason are true and Reason is the correct explanation
of Assertion
(B) Both Assertion and Reason are true and Reason is not correct explanation
of Assertion
(C) Assertion is true but Reason is false
(D) Assertion is false but Reason is true.

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23 Assertion (A): It is the responsibility of the consumer to buy only standardised
goods they provide quality assurance.
Reason (R): The consumers have certain responsibilities to follow and should
keep a few things in mind while purchasing goods and services.
Make the correct choice as:
(A) Both Assertion and reason are true and Reason is the correct explanation
of Assertion
(B) Both Assertion and Reason are true and Reason is not correct
explanation of Assertion
(C) Assertion is true but Reason is false
(D) Assertion is false but Reason is true.

24 Assertion(A): Appeals against the state commission can also be filed before the
National commission of consumer protection.
Reason (R) : Consumer protection institution is three tier-structure.
Make the correct choice as:
(A) Both Assertion and reason are true and Reason is the correct
explanation of Assertion
(B) Both Assertion and Reason are true and Reason is not correct
explanation of Assertion
(C) Assertion is true but Reason is false
(D) Assertion is false but Reason is true.

25 Assertion (A): State commission to consumer protection is head by a President,

who have been a Judge of High Court.
Reason (R): Consumer Protection Commission is a Quasi- Judicial body.
Make the correct choice as:
(A) Both Assertion and reason are true and Reason is the correct
explanation of Assertion
(B) Both Assertion and Reason are true and Reason is not correct
explanation of Assertion
(C) Assertion is true but Reason is false
(D) Assertion is false but Reason is true.
26 Assertion (A): Right to safety under Consumer protection Act 1986 taken from
UN convention on consumer protection.
Reason(R): Right to safety will ensure good quality of products to consumer.
Make the correct choice as:
(A) Both Assertion and reason are true and Reason is the correct
explanation of Assertion
(B) Both Assertion and Reason are true and Reason is not correct
explanation of Assertion
(C) Assertion is true but Reason is false
(D) Assertion is false but Reason is true.

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 ANSWER KEY
1 (b)Both Assertion (A) and Reason (R) are true and Reason(R) is not the correct
explanation of Assertion (A)
2 (b)Both Assertion (A) and Reason (R) are true and Reason(R) is not the correct
explanation of Assertion (A)
3 (d)Assertion (A) is false but Reason (R) is true
4 A. Both Assertion and reason are true and reason is correct explanation of
assertion.
5 C. Assertion is true, reason is false.
6 B. Assertion and reason both are true but reason is not the correct explanation of
assertion.
7 B. Assertion and reason both are true but reason is not the correct explanation of
assertion.
8 D. Assertion is false, reason is true.
9 (A)Both Assertion and reason are true and reason is correct explanation of assertion.
10 (A)Both Assertion and reason are true and reason is correct explanation of assertion.
11 (a) if both (A) and (R) are true.
12 (b) if both (A) and (R) are false.
13 (a) if both (A) and (R) are true.
14 (a) if both (A) and (R) are true.
15 (a) if both (A) and (R) are true.
16 (A) Both assertion and reason are true and the reason is the correct explanation of
the assertion.
17 (A) Both assertion and reason are true and the reason is the correct explanation of the
assertion.
18 (B) assertion and reason both are true but reason is not the correct explanation of
assertion
19 B) assertion and reason both are true but reason is not the correct explanation of
assertion
20 (D) Assertion is false. Reason is true
21 (A) Both Assertion and reason are true and Reason is the correct explanation of
Assertion
22 (D)Assertion is false but Reason is true.
23 (A) Both Assertion and reason are true and Reason is the correct explanation of
Assertion
24 (D)Assertion is false but Reason is true.
25 (B)Both Assertion and Reason are true and Reason is not correct explanation of
Assertion
26 (C) Assertion is true but Reason is false
PREPARED BY THE PGTs ( COMMERCE ) OF BHUBANESWAR, GUWAHATI, KOLKATA, RANCHI,
SILCHAR AND TINSUKIA REGIONS.

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