Chapter 20: The Consumer Protection Act, 2019 – Preamble, Extent and Definitions (JAIIB – Paper 2)
1. What is the primary purpose of the Consumer Protection Act, 2019?
A. To regulate foreign trade in India
B. To control inflation and prices
C. To protect the interests of consumers and ensure timely and effective redressal of complaints
D. To provide subsidies to consumers
The Act aims to protect consumer rights and establish authorities for grievance redressal in matters related to goods and services.
2. The Consumer Protection Act, 2019 extends to which part of India?
A. Whole of India except the State of Jammu & Kashmir (before 2019 amendment)
B. Only metropolitan cities
C. Only rural areas
D. Only Union Territories
The Act extends to the whole of India. Earlier laws excluded J&K, but post abrogation of Article 370, it applies uniformly across India.
3. The Preamble of the Consumer Protection Act, 2019 emphasizes:
A. Promotion of international trade
B. Reduction of government subsidies
C. Regulation of e-commerce platforms only
D. Protection of consumer interests through establishment of authorities, mediation, and redressal mechanisms
The Preamble highlights safeguarding consumers and ensuring effective administration for their protection including mediation and authorities.
4. Which statement is correct regarding the Act not overriding other laws?
A. The Act always overrides every other law
B. The Act is in addition to and not in derogation of any other law in force
C. The Act replaces all other existing laws
D. The Act nullifies contract laws
The Act supplements existing laws; it does not override them. Consumers can seek remedies under other applicable laws as well.
5. A consumer files a complaint under Consumer Protection Act, 2019, but the issue also falls under Contract Act. What is correct?
A. Consumer cannot file under Consumer Protection Act
B. Consumer must choose only Contract Act
C. Consumer can proceed under Consumer Protection Act as it is in addition to other laws
D. Complaint will be rejected by Consumer Forum
Since the Act is not overriding, consumers can seek remedies under it along with other applicable laws such as the Contract Act.
6. Which of the following is a salient new feature introduced in the Consumer Protection Act, 2019?
A. Introduction of Central Consumer Protection Authority (CCPA)
B. Establishment of SEBI for consumer protection
C. Replacement of Contract Act
D. Abolition of Consumer Courts
CPA 2019 created the Central Consumer Protection Authority (CCPA) with powers to regulate unfair trade practices and protect consumer rights.
7. Which new mechanism was added under CPA 2019 for faster dispute settlement?
A. Arbitration by RBI
B. Lok Adalat system
C. Settlement through SEBI
D. Mediation cells attached to consumer commissions
CPA 2019 introduced mediation as an alternative dispute resolution method to provide quicker and amicable settlements.
8. As per CPA 2019, who is defined as a "consumer"?
A. Any person purchasing goods for resale
B. Any person buying goods for commercial purposes only
C. Any person who buys goods or hires services for personal use, not for resale or commercial purposes
D. Any person engaged in production activity
A consumer is one who buys goods or hires services for personal use and not for resale or commercial purposes, as per CPA 2019.
9. Which of the following is NOT considered an unfair trade practice under CPA 2019?
A. Misleading advertisements
B. Offering discounts during festive seasons
C. Sale of defective goods knowingly
D. Misrepresentation of product quality
Fair trade discounts are not unfair. Unfair practices include misleading ads, misrepresentation, or knowingly selling defective goods.
10. What is the pecuniary jurisdiction of the District Consumer Disputes Redressal Commission under CPA 2019?
A. Complaints where the value of goods or services paid does not exceed ₹1 crore
B. Complaints up to ₹50 lakh only
C. Complaints above ₹1 crore and up to ₹10 crore
D. Complaints above ₹10 crore
As per CPA 2019, the District Commission handles cases where the value of goods/services paid does not exceed ₹1 crore.
11. A consumer has a complaint worth ₹2 crore. Which forum will handle it under CPA 2019?
A. District Commission
B. Lok Adalat
C. Mediation Cell
D. State Consumer Disputes Redressal Commission
The State Commission hears cases where the value exceeds ₹1 crore but does not exceed ₹10 crore.
12. The National Consumer Disputes Redressal Commission (NCDRC) deals with cases involving:
A. Below ₹1 crore
B. Above ₹10 crore
C. ₹50 lakh to ₹1 crore
D. ₹1 crore to ₹5 crore
NCDRC handles complaints where the value of goods/services paid exceeds ₹10 crore.
13. Which of the following is the main objective of the Consumer Protection Councils under CPA 2019?
A. To conduct criminal trials against traders
B. To regulate stock market operations
C. To fix prices of goods and services
D. To promote and protect the rights of consumers as per the Act
Consumer Protection Councils are advisory bodies to protect and promote consumer rights like safety, information, choice, and grievance redressal.
14. Who chairs the Central Consumer Protection Council (Central Council)?
A. Chief Justice of India
B. Union Minister in charge of Consumer Affairs
C. RBI Governor
D. Chairman of SEBI
The Union Minister for Consumer Affairs, Food & Public Distribution is the ex-officio Chairman of the Central Consumer Protection Council.
15. Which authority under CPA 2019 has powers to issue directions, recall unsafe goods, and impose penalties for misleading advertisements?
A. District Consumer Forum
B. National Company Law Tribunal
C. Central Consumer Protection Authority (CCPA)
D. Competition Commission of India
CCPA is empowered to regulate unfair trade practices, recall unsafe products, and penalize misleading advertisements under CPA 2019.
16. Who appoints the Chief Commissioner of the Central Consumer Protection Authority (CCPA)?
A. Central Government
B. State Government
C. RBI
D. Supreme Court
The Central Government appoints the Chief Commissioner and other members of CCPA.
17. What is the composition of the District Consumer Disputes Redressal Commission under CPA 2019?
A. One President only
B. Two members only
C. One President and three members
D. One President and not more than two members
Each District Commission consists of a President and not more than two members, one of whom should be a woman.
18. Appeals against the order of the District Commission can be made to which authority?
A. High Court
B. State Consumer Disputes Redressal Commission
C. National Consumer Commission
D. Supreme Court of India
An appeal from the order of the District Commission lies with the State Consumer Disputes Redressal Commission.
19. What is the pecuniary jurisdiction of the District Consumer Disputes Redressal Commission under CPA 2019?
A. Up to ₹50 lakh
B. ₹1 crore to ₹10 crore
C. Up to ₹1 crore
D. Above ₹10 crore
District Commissions handle cases where the value of goods or services paid as consideration does not exceed ₹1 crore.
20. A consumer pays ₹2.5 crore for a real estate project and files a complaint for deficiency of service. Which forum has jurisdiction?
A. State Consumer Disputes Redressal Commission
B. District Commission
C. National Consumer Commission
D. Supreme Court
The State Commission handles complaints where the value exceeds ₹1 crore but does not exceed ₹10 crore. Hence, ₹2.5 crore falls under State Commission.
21. Which commission has jurisdiction over complaints where the value of goods or services exceeds ₹10 crore?
A. District Commission
B. State Commission
C. Lok Adalat
D. National Consumer Disputes Redressal Commission
The National Consumer Disputes Redressal Commission (NCDRC) hears complaints where the value of goods/services paid exceeds ₹10 crore.
22. A consumer files a complaint worth ₹60 lakh for deficiency of banking services. Where should the complaint be filed?
A. State Commission
B. District Commission
C. National Commission
D. Supreme Court
Since the value is below ₹1 crore, the case falls under the jurisdiction of the District Commission.
23. Appeals against the orders of the State Commission can be made to which authority?
A. National Consumer Disputes Redressal Commission
B. Supreme Court
C. High Court
D. RBI Ombudsman
Appeals against the orders of the State Commission lie with the National Consumer Disputes Redressal Commission (NCDRC).
24. Appeals against the orders of the National Consumer Disputes Redressal Commission (NCDRC) can be filed before:
A. High Court
B. District Commission
C. Supreme Court of India
D. State Commission
Appeals against the orders of NCDRC can be filed before the Supreme Court of India within the prescribed limitation period.
25. Within how many days can a party appeal against the order of the District Commission to the State Commission under CPA 2019?
A. 60 days
B. 15 days
C. 45 days
D. 30 days
Under CPA 2019, a person aggrieved by an order of the District Commission may prefer an appeal to the State Commission within 45 days.
26. An appeal against the order of the State Commission can be filed before the National Commission within how many days?
A. 30 days
B. 45 days
C. 60 days
D. 90 days
The CPA 2019 provides a 30-day time limit for filing an appeal against an order of the State Commission before the National Commission.
27. Appeals from the National Commission lie with the:
A. High Court
B. President of India
C. Central Government
D. Supreme Court
As per CPA 2019, an appeal against the order of the National Commission lies with the Supreme Court of India.
28. Which of the following statements about the Mediation process under CPA 2019 is correct?
A. Mediation is compulsory in every consumer dispute
B. Mediation is voluntary and can be referred by the Commission
C. Mediation can only be initiated by the Supreme Court
D. Mediation is applicable only for complaints above ₹1 crore
CPA 2019 introduced a Mediation process to provide an alternate dispute resolution mechanism. It is voluntary and may be referred by the Consumer Commission if both parties agree.
29. Where are Consumer Mediation Cells established under CPA 2019?
A. Only at the National Commission
B. Only at State Commissions
C. At District, State, and National Commissions
D. Only at District Commissions
Consumer Mediation Cells are established at all levels—District, State, and National Commissions—to facilitate settlement through mediation.
30. Which of the following is NOT true about the Mediation settlement under CPA 2019?
A. The settlement agreement is signed by the parties
B. The settlement has the same effect as an order of the Commission
C. The terms are binding on both parties
D. The settlement can be unilaterally modified by one party later
A mediation settlement is final, binding, and has the same force as an order of the Commission. It cannot be unilaterally altered by any party.
31. Under CPA 2019, product liability refers to:
A. Liability of consumers for defective products
B. Liability of government for regulating products
C. Liability of manufacturers, service providers, or sellers for harm caused by defective products
D. Liability of wholesalers only
Product liability under CPA 2019 ensures that manufacturers, sellers, or service providers are responsible for any harm caused by defective products or deficient services.
32. Which of the following is NOT an example of an unfair contract under CPA 2019?
A. Excessive security deposits
B. Forcing consumers to buy bundled products
C. Imposing unreasonable charges
D. Providing warranty for products
CPA 2019 defines unfair contracts as those imposing one-sided, unreasonable, or harsh conditions on consumers. Warranty for products is a consumer right, not an unfair practice.
33. Who can be held liable under the product liability provisions of CPA 2019?
A. Only the manufacturer
B. Manufacturer, seller, and service provider
C. Only the retailer
D. Only the wholesaler
CPA 2019 expands liability to include manufacturers, product sellers, and service providers to ensure complete consumer protection.
34. Data protection provisions under CPA 2019 primarily relate to:
A. Protecting consumer data shared during transactions
B. Protecting government records
C. Protecting only banking sector data
D. Protecting trade secrets of companies
CPA 2019 ensures that consumers’ personal data provided during e-commerce or service transactions is not misused and is adequately protected.
35. Which of the following situations would attract product liability under CPA 2019?
A. A consumer misuses the product ignoring instructions
B. Consumer uses a product beyond its expiry date
C. A retailer sells an imported product with proper disclosures
D. A manufacturer sells a defective product causing injury
Product liability applies when a defective product or deficient service directly causes harm to the consumer. Misuse or negligence by the consumer is not covered.
