Read the following passage and mark the correct answer.

A restaurant owner in east Chennai has been directed to pay a fine of ₹15,000 to a customer who was asked to shell out ₹38 for a water bottle which had a maximum retail price (MRP) of ₹18. The fine comes at a time when consumer courts are turning the heat on shop-owner who overcharge. In a recent landmark decision, the state consumer commission had slapped a fine of ₹50,000 on a cineplex for similar malpractice. Mr. Mehta was awarded the compensation by east district consumer forum president and member directing Zaika Bazaar, Karkardooma Complex, to compensate Mr. Mehta for overcharging. The Forum said: “The present complaint is covered by the judgment of the state consumer commission in case of Nirulas vs Ankit Jain in which it said no trader or service provider can charge more price than an item’s MRP printed on the packed item, if delivered packed”. Ordering the restaurant owner to discontinue the malpractice, the forum said charging higher amount than MRP, if delivered in packed form, was against the law of the land. Mr. Mehta had bought a bottle of Aquafina water from the restaurant in November last year and was asked to pay ₹38 for it, including a VAT of ₹8, when the bottle had a MRP of ₹18 printed on it.

Which of the following statement is true in regards to importance of consumer protection act for the "Business firms"?

1. Enlightened businesses realise that it is in their short-term interest to satisfy their customers.
2. Business organisations use resources which belong to the society. They, thus, have a responsibility to supply such products and render such services which are in public interest.
3. It is the moral duty of any business to take care of producer's interest and avoid any form of their exploitation.
4. A business engaging in any form of exploitative trade practices would invite government intervention or action.

2 and 4

The correct answer is option 2- 2 and 4.

A business must also lay emphasis on protecting the consumers and adequately satisfying them. This is important because of the following reasons:

• Enlightened businesses realise that it is in their long-term interest to satisfy their customers.
• Business organisations use resources which belong to the society.
• A business has social responsibilities towards various interest groups.
• It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation.
• A business engaging in any form of exploitative trade practices would invite government intervention or action.

Statement 1- Enlightened businesses realise that it is in their short-term interest to satisfy their customers- it is wrong as it is in their long-term interest to satisfy their customers.

Statement 3- It is the moral duty of any business to take care of producer's interest and avoid any form of their exploitation- it is wrong as it is the moral duty of any business to take care of consumer’s interest.