Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Consumer Protection

Question:

Which of the following statement is/are correct in respect of the Commissions established under Consumer Protection Act 1986?

Options:

National Commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration is ten crores of rupees or more.

State Commission has a jurisdiction to entertain complaints where value of goods and services paid as consideration exceeds rupees one crore but is less than ten crore rupees.

District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed one crore rupees.

All of the above

Correct Answer:

District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed one crore rupees.

Explanation:

The correct answer is Option 3: District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed one crore rupees.

Option 1: National Commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration is ten crores of rupees or more. This is incorrect. National Commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration exceeds ten crores of rupees (NOT RS 10 crores or More).

Option 2: State Commission has a jurisdiction to entertain complaints where value of goods and services paid as consideration exceeds rupees one crore but is less than ten crore rupees. This is incorrect.

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 (NOT exceeds rupees one crore but is less than ten crore rupees i.e. even if the amount is 10 crore, there will be jurisdiction of State Commission).

Option 3: District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed one crore rupees. This is correct.

"National Commission: It has territorial jurisdiction over the whole country. National Commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration exceeds ten crores of rupees. If any of the parties are not satisfied by the order of National Commission can appeal against such order to the Supreme Court of India within a period of thirty days of such order.

State Commission :It is established by the respective state government and ordinarily function at the state capital. 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. If any of the parties are not satisfied by the order of State Commission can appeal against such order to the National Commission within a period of thirty days of such order.

District Commission: District commission has a jurisdiction to entertain complaints where value of goods or services paid as consideration does not exceed one crore rupees. If any of the parties are not satisfied by the order of District Commission can appeal against such order to the State Commission on the grounds of facts or law within a period of forty five days from the date of order."