CONSUMER PROTECTION ACT 1986 by : DR. T.K. JAIN AFTERSCHO☺OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india for PGPSE participants PGPSE : FREE FOR ALL, OPEN FOR ALL mobile : 91+9414430763 5 DECEMBER 09
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WHY THIS ACT?
To protect the consumer a number of NGOs like CERC had made an effort fot this from consumer beware to consumer is the king theory 5 DECEMBER 09
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Who is a consumer? Buys any goods for consideration doesnt buy for resale hires or avails of services these should not be for resale consideration may be past / present / future / part payment not for commercial use 5 DECEMBER 09
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Case : Bhupendra Jung Bahadur Guna 1995
A farmer purchased a tractor and gave it to others during idle time – it was held that it was not a commercial use.
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Spring Meadows Hosp.v/s Harjot Ahulwalia
Minor Harjot was wrongly diagnosed by the hospital. The National commission gave separate award of benefit to both Minor and his parents ( thus family members are also consumers)
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Case :; Laxmiben Laxmichand vs. Sakerben Kanji 2001
Landlord – tenant is not a consumer related matter and rent paid by tenant is not for cleaning / maintaining the building
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Morgan Stanley v/s Kartik Das 1994
Application for shares cannot be considered as goods under this act.
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Meaning of service – sec 2(1)(o)
Service of any description and includes banking, finanical services, insurance, transportation, processing, electrical and other services
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Case : Indian Merchants association v.s VP Santha
Contract of service means a contract to provide services and involves obligation similar to master and servant.
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Consumer dispute : 2(1)(e)
When a person denies any complaints made by a consumer
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Restrictive trade practice sec 2(1)nn 1. unusual delay by trader to increase the prices 2. trade practice which force consumer to buy some other product / service before buying a particular product Restrictive trade practice impose higher costs on consumer 5 DECEMBER 09
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Deficiency 2() g
Any fault, mistake or shortcoming in quality / delivery of product / service
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Case : Alex J Rebello vs Bangalore univ. 2003
The student appeared in exam and it was delayed – the court held that examination are not conducted for consideration and therefore they dont make a student a consumer
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Case : state of Haryana v/s Santra 2000
Negligence by medical officer in family planning operation was considered to be a punishable offence under this act.
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PNB V/S K.B.SHETTY 1991
Certificate of a person was lost in locker of the bank – it was held that bank was responsible under this act.
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Important bodies : National Consumer protection council central consumer protection council state consumer protection council district consumer protection council district forum state commission national commission 5 DECEMBER 09
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District forum
Upto Rs. 20 lakhs
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State commission
20 lakhs to 1 crores + appeals against district forum
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Remedies – sec. 14
Replacement of goods financial remedies
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Penalty – sec. 27
From Rs. 2000 onwards
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National commission
Beyond 1 crores + appeals against state commission
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WHAT IS EXCLUSIVE EVENT? WHEN RESULTS FROM SOME EXPERIMENT ARE SUCH THAT IF ONE OUTCOME (EVENT) HAPPENS, OTHERS ARE IMPOSSIBLE, THEN THEY ARE CALLED EXCLUSIVE EVENTS. FOR EXAMPLE, IF YOU TOSS A COIN, YOU CAN GET EITHER HEAD OR TAIL – NOT BOTH - THESE ARE EXCLUSIVE EVENTS 5 DECEMBER 09
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WHAT IS PROBABILITY ? FINDING THE POSSIBILTY OF AN EVENT OUT OF MANY EQUALLY LIKELY EVENTS IS CALLED PROBABILITY THUS IF YOU THROW A COIN, THE PROBABILITY OF GETTING HEAD IS ½ BECAUSE THERE ARE 2 EQUALLY LIKELY EVENTS AND ONE HEAD. 5 DECEMBER 09
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What is exhaustive list of events?
All the possibilities are called exhaustive list. For example : coin has two possibilities : head and tail – thus these two are exhaustive - there is no other possibilitiy
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Q : what is the probability of getting 2 heads out of 3 tosses of coins? First : list down all the possibilities : H= Head, T=tail we may have all heads : HHH, we may have all tail : TTT : 1. HHH 2 TTT 3 HTH 4 THT 5 HHT 6 HTT 7 TTH TTH 8 THH in simple terms : 2^3 = 8 possibilities : (the formula is options ^ number of trials) out of these the cases of 2 heads are : 3/8 answer
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What is the possibility of getting a difference of 2 when you toss a dice twice? Let us list down all the possibilities : (1,1) (1,2)(13)(1,4)(1,5),(1,6),(2,1),(2,2),(2,3), (2,4), (2,5), (2,6),(3,1),(3,2),(3,3),(3,4),(3,5),(3,6),(4,1),(4,2),(4,3), (4,4),(4,5),(4,6),(5,1),(5,2),(5,3),(5,4),(5,5),(5,6),(6,1), (6,1),(6,2),(6,3),(6,4),(6,5),(6,6) there are total 36 possibilities out of which, 8 cases involve difference of 2, so answer : 8/36
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What is the chance of picking up a spade or an ace from a pack of cards?
There are 13 spade cards. There are 4 ace cards. Thus there are 13+4 cards = 17 out of which one ace+spade is included thus we have 16 out of 52 possibilities : 16/52 answer
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What is the probability that a committee of 7 persons has has 5 men men and 2 women, women, it is to be formed out of 8 men and a nd 5 ladies We have to pick up 7 persons out of (8+5) = 13 members so the total possibilities are : 13C7 = 13! / (7! * (13-7)!) =13*12*11*10*9*8*7*6*5*4*3*2*1/ (7*6*5*4*3*2*1*6*5*4*3*2*1) =1716 methods of selecting 5 men and 2 women : 8C5 * 5C2 = (8*7*6/3*2*1) (5*4/2*1) = 560 answer = 560/1716 answer 5 DECEMBER 09
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A number is picked up out of 25 natural numbers, what is the probability that it is divisible by 4?
Out of 25 number, there are 6 numbers divisible by 4 : 4,8,12,16,20,24 thus the probability is : 6/25 answer
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P (A-B) = 1/5 and P(A)=1/3 and P(B)=1/2, what is the probability that out of A and B, only B will happen? P(A-B) = P(A) (1/3)– (P(A intersection B) = 1/5 thus P(A intersection B)= 1/3-1/5= 2/15 we want P (B-A) = P(B)-P(A intersection B) =1/2 – 2/15 = 11/30 ans. 5 DECEMBER 09
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A hits 5 out of 9 correct shots and B hits 6 out of 11 correct, what is the probability that when they try they are able to hit correct? First find out the possibility that target is NOT hit at all : A not hitting : (1-5/9) = 4/9 A = 4/9 and B = 5/11 A *B = 4/9 * 5/11 = 20/99 thus they will hit : 1-20/99 = 79/99 answer 5 DECEMBER 09
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8 balls are distributed at random among 3 boxes, what is the probability that the first box will get 3 balls? 8 balls can be distributed to 3 boxes in 3^8 manners. We want first box to have 3 balls, so 8C3, now we have 5 balls left out which have to be distributed to remaining 2 boxes : 2^5 answer : (8C3*2^5)/3^8 = 1792/6561 answer 5 DECEMBER 09
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Odds in favour of an event is 2:3 and odds against another event is 3:7 ,what is the probability that at least one of these will happen First event : happening : 2/5 not happening : 3/5, 2 nd event happen : 7/10 and not happen : 3/10 Find the probability that none of these happen : 3/5 * 3/10 = 9/50 at least one of them will happen is : 1-9/5 =41/50 answer
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