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Business Studies · 2025 · 3 marks
CBSE 2025 · Region 4 · Set 3 · Q22
State any three points of importance of consumer protectionfrom the point of view of business.‘The consumer grievances are redressed by the three-tiermachinery under Consumer Protection Act, $\displaystyle 2019$’.(i)Name the three tiers of the enforcement machinery.(ii)Also state jurisdiction of cases that can be filed in each ofthese tiers of the enforcement machinery.
State any three points of importance of consumer protection
from the point of view of business.
‘The consumer grievances are redressed by the three-tier
machinery under Consumer Protection Act, $\displaystyle 2019$’.
(i)
Name the three tiers of the enforcement machinery.
(ii)
Also state jurisdiction of cases that can be filed in each of
these tiers of the enforcement machinery.
Marking-scheme solution
Importance of consumer protection from the point of view of
business
(i)
It is in the long-term interest of business to satisfy their customers
who not only lead to repeat sales but also help in increasing the
customer base, thereby increasing customer satisfaction.
(ii)
Business uses society’s resources, so it has a responsibility to
supply products or services which are in public interest.
(iii)
The business sells goods and services to the customers and thus has
social responsibility towards them including other stake
stakeholders which has to be taken care of.
(iv)
Moral justification implies the moral duty of a business to take care
of customer’s interest and avoid their exploitation in any form.
Business engaged in any form of exploitative trade practices would
invite government intervention and it is advisable that business
organisations voluntarily resort to such practices where the
customer needs and interest are taken care of.
Three tiers of the enforcement machinery under Consumer
Protection Act, $\displaystyle 2019$
1) District Commission (District Forum)
2) State Commission
3) National Commission
(ii)
Jurisdiction of cases that can be filed in each of these tiers of
the enforcement machinery
1) District Commission (District Forum) – District commission has a
jurisdiction to entertain complaints where value of goods or
services paid as consideration does not exceed one crore rupees.
2) State Commission – State Commission has a jurisdiction to
entertain complaints where value of goods and services paid as
consideration exceeds one crore but does not exceed ten crore
rupees.
3) National Commission – National Commission has a jurisdiction to
entertain complaints where value of goods or services paid as
consideration exceeds ten crores of rupees.
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CBSE Class 12 Business Studies past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.