Mr. Khanna is a renowned lawyer dealing in cases related to consumer…

Mr. Khanna is a renowned lawyer dealing in cases related to consumer courts. He was addressing a joint meeting of the lawyers of his association and briefing them. He said, “Where the District or State or National Commission is satisfied about defect in goods, or deficiency in services on any unfair trade practice or claim for compensation under product liability, issues an order” :

(A) To discontinue the fair trade practice and not to repeat it in the future.

(B) To pay punitive damages in appropriate circumstances.

(D) To cease the manufacture of hazardous goods and to desist from offering hazardous services.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (B), (C) and (D) only

(A) To discontinue the fair trade practice and not to repeat it in the future. — Incorrect. When a consumer’s complaint is found true, a District, State or National Commission can order the seller to give relief. A fair trade practice is honest business. There is nothing wrong with it, so no commission would order a seller to stop it. The relief under the Act is an order to discontinue an unfair or restrictive trade practice (a dishonest one) and not to repeat it. This is the book’s relief with one word changed, so read each statement to the very end.

(B) To pay punitive damages in appropriate circumstances. — Correct. Punitive damages are an extra sum that punishes the seller, over and above the compensation for the consumer’s loss. They are ordered where the seller’s conduct was serious.

(C) To replace the defective product with a new one, free from any defect. — Correct. Where the defect cannot be removed, the consumer is given a new product without the defect.

(D) To cease the manufacture of hazardous goods and to desist from offering hazardous services. — Correct. Goods or services that are dangerous to life and health can be stopped altogether, not merely withdrawn from one buyer.

NCERT (2026-27 Edition): “Relief Available Where District or State or National Commission is satisfied about defect in goods, or deficiency in services on any unfair trade practice or claim for compensation under product liability, issues an order:
(i) To remove the defect in goods or deficiency in service.
(ii) To replace the defective product with a new one, free from any defect.
(iii) To refund the price paid for the product, or the charges paid for the service.
(iv) To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
(v) To pay punitive damages in appropriate circumstances.
(vi) To discontinue the unfair/ restrictive trade practice and not to repeat it in the future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw the hazardous goods from sale.
(ix) To cease manufacture of hazardous goods and to desist from offering hazardous services.”