TARGET JRF JUNE 2019

BUSINESS ENVIRONMENT - 1

-BY TALVIR SINGH

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TALVIR SINGH PLUS COURSE ON UNACADEMY
• Concepts and elements of business
environment: Economic environment-Economic
systems, Economic policies(Monetary and fiscal
policies);
• Political environment- Role of government in
business;
• Legal environment-Consumer Protection Act,
FEMA;
• Socio-cultural factors and their influence on
business; Corporate Social Responsibility (CSR)
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 BUSINESS ENVIRONMENT
• Business Environment consists of all those factors that have a bearing on the business,
such as the strengths, weaknesses, internal power relationships and orientations of the
organization; government policies and regulations; nature of the economy and economic
conditions; socio cultural factors; demographic trends; natural factors; and, global trends
and cross-border developments.
Concept of Business Environment
• A business firm is an open system. It gets resources from the environment and
supplies its goods and services to the environment. There are different levels of
environmental forces. Some are close and internal forces whereas others are external
forces.
• External forces may be related to national level, regional level or international level.
These environmental forces provide opportunities or threats to the business community.
Every business organization tries to grasp the available opportunities and face the threats
that emerge from the business environment.

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 Nature of Business
Business may be understood as the organized efforts of enterprise
to supply consumers with goods and services for a profit.
Businesses vary in size, as measured by the number of
employees or by sales volume. But, all businesses share the same
purpose: to earn profits.
The purpose of business goes beyond earning profit. There are:
• It is an important institution in society.
• Be it for the supply of goods and services.
• Creation of job opportunities.
• Offer of better quality of life.
• Contributing to the economic growth of the country.

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 Modern business is dynamic
• If there is any single word that can best describe today’s business, it is change.
This change makes the companies spend substantially on Research and
development (R & D) to survive in the market. Mass production and mass
marketing are the norms followed by business enterprises.
Today’s business is characterized by diversification, which may be:
• Concentric Diversification - It refers to the process of adding new, but relates
products or services.
• Horizontal Diversification - Adding new, unrelated products or services for
present customers is called horizontal Diversification.
• Conglomerate Diversification - It refers to adding new and unrelated products or
services.
• Going international is yet another trend followed by modern business houses.
• Business houses are exposed to global competition, which argues well for
consumers. Also occupying a major role is science in the global economic
scenario.
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 Business Goals
Profit - Making profit is the primary goal of any business enterprise.
Growth - Business should grow in all directions over a period of time.
Power - Business houses have vast resources at its command. These resources confer
enormous economic and political power.
Employee satisfaction and development - Business is people. Caring for employee
satisfaction and providing for their development has been one of the objectives
of enlightened business enterprises.
Quality Products and Services - Persistent quality of products earns brand loyalty, a
vital ingredient of success.
Market Leadership- To earn a niche for oneself in the market, innovation is the key
factor.
Challenging- Business offers vast scope and poses formidable challenges.
Joy of creation- It is through business strategies new ideas and innovations are given
a shape and are converted into useful products and services.
Service to society - Business is a part of society and has several obligations towards it

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Meaning of Business environment
Environment of a business means the external forces influencing the business
decisions. They can be forces of economic, social, political and technological factors.
These factors are outside the control of the business. The business can do little to change
them.
Following features –
1) Totality of external forces: Business environment is the sum total of all things
external to business firms and, as such, is aggregative in nature.
2) Specific and general forces: Business environment includes both specific and
general forces Specific forces (such as investors, customers, competitors and suppliers)
affect individual enterprises directly and immediately in their day-to-day working.
General forces (such as social, political, legal and technological conditions) have impact
on all business enterprises and thus may affect an individual firm only indirectly.

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3) Dynamic nature: Business environment is dynamic in that it keeps on changing whether in
terms of technological improvement, shifts in consumer preferences or entry of new
competition in the market.
4) Uncertainty: Business environment is largely uncertain as it is very difficult to predict
future happenings, especially when environment changes are taking place too frequently
as in the case of information technology fashion industries.
5) Relativity: Business environment is a relative concept since it differs from country to
country and even region to region. Political conditions in the USA, for instance, differ
from those in China or Pakistan. Similarly, demand for sarees may be firmly high in India
whereas it may be almost non-existent in France.

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 ELEMENTS OF BUSINESS ENVIRONMENT
• 1) Economic environment – Economic environment consists of economic factors
that influence the business in country. These factors include gross national
product, corporate profits, inflation rate, employment balance of payments,
interest rates consumer income etc.
• 2) Social environment – It describes the characteristics of the society in which the
organization exists. Literacy rate, customs, values, beliefs, lifestyle, demographic
features and mobility of population are part of the social environment. It is
important for mangers to notice the direction in which the society is moving and
formulate progressive policies according to the changing social scenario.
• 3) Political environment – It comprises political stability and the policies of the
government. Ideological inclination of political parties, personal interest on
politicians, influence of party forums etc. create political environment. For
example, Bangalore established itself as the most important IT centre of India
mainly because of political support.

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• 4) Legal environment – This consists of legislation that is passed by the parliament and
state legislatures. Examples of legislation specifically aimed at business operations include
the Trade mark Act 1969, Essential commodities act 1955, Standards of Weights and
Measures Act 1969 and Consumer Protection act 1969.
• 5) Technology environment – It includes the level of technology available in a country. It
also indicates the pace of research and development and progress made in introducing
modern technology in production. Technology provides capital intensive but cost effective
alternative to traditional labor intensive methods. In a competitive business environment
technology is the key to development.

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 INTERNAL AND EXTERNAL BUSINESS ENVIRONMENT
Types of Environment
1. Internal Environment
The internal environment is the environment that has a direct impact on the business. Here
there are some internal factors which are generally controllable because the company has
control over these factors. It can alter or modify such factor as its personnel, physical
facilities, and organization and functional means, like marketing, to suit the environment.
2. Value system
Value system of the founders and those at the helm of affairs has important bearing on the
choice of business, the mission and the objectives of the organization, business policies
and practice. The extent to which the value system is shared by all in the organization is
important in contributing to the success.
3. Management structure and nature
Structure of the organization also influences the business decisions. The organizational
structure like the composition of board of directors influences the decisions of business as
they are internal factors. The structure and style of the organization may delay a decision
making or some of the helps in making quick decisions. The quality of the

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4. Mission and vision and objectives
Vision means the ability to think about the future with imagination and wisdom. Vision is an
important factor in achieving the objectives of the organization. The mission is the
medium through which the objectives are achieved.
5. Internal power relationships
The relationship among the three levels of the organization also influences on the business.
The mutual co-ordination among those three is an important need for a business. The
relationship among the people working in the three levels of the organization should be
cordial.
6. Human resources
The human resources is the important factor for any organization as it contributes to the
strength and weakness of any organization the human resource in any organization must
have characteristics like skills, quality, high morale, commitment towards the work,
attitude, etc. The involvement and initiative of the people in an organization at different
levels may vary from organization to organization.

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7.Company image and brand equity –
The image of the company in the outside market has the impact on the internal environment of the
company. It helps in raising the finance, making joint ventures, other alliances, expansions and
acquisitions, entering sale and purchase contracts, launching new products, etc. Brand equity also
helps the company in same way.
8. Miscellaneous factors –
The other factors that contribute to the business success or failure are as follows –
Physical assets and facilities –
Facilities like production capacity, technology are among the factors which influences the
competitiveness of the firm. The proper working of the assets is indeed for free flow or working of
the company.
9. Research and development –
Though R&D department is basically done external environment but it has a direct impact on the
organization. These aspects mainly determine the company’s ability to
innovate and compete.
10. Marketing resource – Resources like the organization for marketing, quality of the
marketing men, brand equity and distribution network have direct bearing on marketing efficiency of the
company.
11. Financial factors –
Factors like financial policies, financial positions and capital structure are also important internal
environment affecting business performances, strategies and decisions.
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 EXTERNAL ENVIRONMENT
• It refers to the environment that has an indirect influence on the business. The factors are uncontrollable by
the business. There are two types of external environment.
• Micro Environment
The micro environment is also known as the task environment and operating environment because the micro
environment forces have a direct bearing on the operations of the firm. The micro environments consist of
the actors in the company’s immediate environment that affects the performance of the company.
• Suppliers –
i.e., those who supply the inputs like raw materials and components to the company. The importance of reliable
source/sources of supply to the smooth functioning of the business is obvious. Uncertainty in supply often
compels companies to maintain high inventories causing cost increase. Because of the sensitivity of the
supply, many companies have high importance to vendor development. It is risky to depend on a single
supplier, because a strike or lockout or any other production problem may affect that company.
• Customer
The choice of customer segments should be made by considering a number of factors Including the relative
profitability, dependability, and stability of demand, growth prospects and the extent of competition.
Competition not only include the other firms that produce same product but also those firms which compete
for the income of the consumes the competition here among these products may be said as desire
competition as the primary takes here is to fulfill the desire of the customers.

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• Marketing Intermediaries
The marketing intermediaries include middlemen such as agents and merchants that help the
company find customers or close sales with them. The marketing intermediaries are vital
links between the company and the final consumers.
• Financiers –
The financiers are also important factors of internal environment. Along with financing
capabilities of the companies their policies and strategies, attitudes towards risk, ability to
provide non-financial assistance etc. are very important.
• Public –
Public can be said as any group that has an actual or potential interest in or on an
organizations ability to achieve its interest. Public include media and citizens. Growth of
consumer public is an important development affecting business

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 Macro Environment
• Macro environment is also known as general environment and remote environment. Macro factors
are generally more uncontrollable than micro environment factors. When the macro factors become
uncontrollable, the success of company depends upon its adaptability to the environment.
• Economic Environment Economic environment refers to the aggregate of the nature of economic
system of the country, business cycles, the socio-economic infrastructure etc. The successful
businessman visualizes the external factors affecting the business; anticipating prospective market
situations and makes suitable to get the maximum with minimize cost.
• Industrial policy Policies on industries usually define the role and objectives of different sectors like
private and public, large, medium and small etc. Businesses would be compelled to change their
operations in accordance with the new policy regime.
• Trade policy A preventive import policy of the government may do benefits to the home industries.
• Fiscal and monitory policies Fiscal policy includes the government’s tactics on public expenditure and
revenue. It can restrain or foster business operations. Similarly, a policy of the Reserve bank to
restrain flow of credit can affected the savings, investments etc

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• Political Environment
The political environment of a county is influenced by the political organizations such as
philosophy of political parties, ideology of government or party in power, nature and extent of
bureaucracy influence of primary groups etc. The political environment of the country
influences the business to a great extent.
Major political factors affecting business are
• Bureaucracy
• Corruption level
• Freedom of the press
• Tariffs Trade control
• Employment law Environmental Law
• Health and safety law
• Completion regulation
• Tax policy (tax rates and incentives)
• Government stability and related changes
• Government involvement in trade unions and agreements

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• Legal environment –
Legal environment includes flexibility and adaptability of law and other legal rule governing the business.
It may include the exact ruling and decision of the courts. These affect the business and its managers
to a great extent. This includes a set of laws and regulations, which influence the business
organizations and their operations.
Every business organization has to abide by, and work within the framework of the law. The important
legislations that concern the business enterprises include:
(i) Companies Act, 2013.
(ii) Foreign Exchange Management Act, 1999
(iii) The Factories Act, 1948
(iv) Industrial Disputes Act, 1972
(v) Payment of Gratuity Act, 1972
(vi) Industries (Development and Regulation) Act, 1951
(vii) Prevention of Food Adulteration Act, 1954
(viii) Essential Commodities Act, 202 In addition to the above legislations, the folowing are also form
part of the legal environment of business.

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• Technical Environment The business in a country is greatly influenced by the technological development.
The technology adopted by the industries determines the type and quality of goods and technology
adopted by the industries determines the type and quality of goods and services to be produced and the
type and quality of plant and equipment to be used.
• Social Environment The social dimension or environment of a nation determines the values system of the
society which, in turn affects the functioning of the business. Sociological factors such as costs structure,
customs and conventions, mobility of labor etc. have far-reaching impact on the business. These factor the
work culture and mobility of labor, work groups etc.
 Social responsibility of business
 Archie. B. Carol defines Corporate Social responsibility as the entire range of obligations business has to
society. He has derived four models of Corporate Social responsibility as follows:
 1. Economic Since the firm is primarily an economic entity, its activities should contribute to the prosperity
of the economy.
 2. Legal A company is legally bound in many aspects and it is ought o obey the law of the land.
 3. Ethical These are certain standards which the society expects the business to do though they are not
demanded by the law. E.g.: Avoiding corruption and unfair trade practices.
 4. Discretionary These are the voluntary contributions of the business to the social affluence like
participation in the community development programmes.

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 Corporate Social Responsibility Guidelines in
Companies Act, 2013
• The Ministry of Corporate Affairs has notified Section 135 and Schedule VI of the
Companies Act 2013 as well as the provisions of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 to come into effect from April 1, 2014.
• With effect from April 1, 2014, every company, private limited or public limited,
which either has a net worth of Rs 50 crores or a turnover of Rs 1,00 crores or net
profit of Rs 5 crores, needs to spend at least 2% of its average net profit for the
immediately preceding three financial years on corporate social responsibility
activities.
• The CSR activities should not be undertaken in the normal course of business and
must be with respect to any of the activities mentioned in Schedule VI of the
2013 Act. Contribution to any political party is not considered to be a CSR activity
and only activities in India would be considered for computing CSR expenditure.

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• Economic Systems
The economic system is the sum total of the establishments in the economy and their
interdependence. It includes the faculties, regulations, units, and different ideologies that
are capable of maintaining the human living with sufficient welfare.
While we look into modern economy, all sub units in the global economic systems are
becoming complex and attached.

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• Capitalist Economy Capitalism is an economic system in which all means of production are owned and
controlled by private individuals for profit. (Free market or laissez-faire economy)
• (1) The right of private property: Under private ownership.
• (2) Freedom of enterprise: Everybody free to set up any firm to produce goods and services
• (3) Freedom to choice by the consumers: Consumer sovereignty.
• (4) Profit motive (5) Competition (6) Inequalities of incomes

Merits Demerits
1. It results in high standard of living. 1. Rich becomes richer and poor becomes poorer.
2. Capitalism works automatically through price 2. Welfare is not protected
mechanism. 3. Economic instability
3. Maximum efficiency in production. 4. Class conflict arises between employer and employee.
4. It rewards men of initiative and enterprise. 5. Productive resources are misused.
6. Formation of monopolies.
7. There is no security of employment.

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• Socialist economy Material means of production i.e. factories, capital, mines etc. are owned by the
whole community represented by the State with the objective of Social Welfare. [“Command
Economy” or a “Centrally Planned Economy”].
• (i) Collective Ownership
• (ii) Central Planning Authority
• (iii) Absence of Consumer Choice
• (iv) Relatively Equal Income Distribution
• (v) Minimum role of Price Mechanism or Market forces

Merits Demerits
1. Equitable distribution of wealth and income 1. Predominance of bureaucracy. There may also be
2. Planned economy. Better utilization of resources corruption, redtapism, favoritisms, etc.
3. Unemployment is minimized, business fluctuation are 2. It restricts the freedom of individuals
eliminated 3. It will not provide necessary incentive to hard work in
4. Avoids class war. the form of profit.
5. Laborers and consumers are protected. 4. State monopolies created by socialism will sometimes
become uncontrollable.
5. The extreme form of socialism is not at all practicable.

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• The Mixed Economy: Aim is to develop a system which tries to include the best features of both the
controlled economy and the market economy while excluding the demerits of both. Planning is done by the
State Authority called Planning Commission. Features of mixed economy:
• (i) Co-existence of private and public sector
• (ii) Existence of Economic Planning
• (iii) Administered Price: In the private sector, prices of goods and factors of production are determined through the
free play of market forces of demand and supply. In the public sector, the state determines the prices of various
products.
Merits Demerits
1. Merits of both capitalism and socialism while avoiding 1. Mixed economy is difficult to operate.
the evils of both. 2. Excessive controls and heavy taxes are likely to prevail
2. 2. Mixed economy protects individual freedom. under mixed economy.
3. Price mechanism is allowed to operate under mixed 3. Problems of red- tapism, nepotism, favoritisms,
economy. officialdom, etc.
4. Reducing the inequalities of wealth and class struggle 4. Described by Schumpeter as “Capitalism in the oxygen
is one of the aims. 5. Economic fluctuations can be tent”. It is only a trick of the capitalists to cheat the
avoided working class by offering them some temporary
advantages like social security upliftment of the
depressed classes etc.

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 Fiscal Policy
• Fiscal Policy is the main part of Economic Policy and Fiscal Policy's first word Fiscal is taken
from French word Fisc it means treasure of Govt. So we can define fiscal policy as the revenue and
expenditure policy of Govt. of India.
• It is prime duty of Government to make fiscal policy. By making this policy, Govt. collects
money from his different resources and utilize it in different expenditure.
• Thus fiscal policy is related to development policy. All welfare projects are completed under this
policy
 Objectives of Fiscal Policy
• 1. Development of Country:- For development of Country, every country has to make fiscal policy.
With this policy, all work is done govt. planning and proper use of fund for development functions. If
govt. does not make fiscal policy, then it may happen that revenue may be misused without targeted
expenditure of govt.
• 2. Employment:- Getting the full employment is also objective of fiscal policy. Govt. can take much
action for increase employment. Government can fix certain amount which can be utilized for
creation of new employment for unemployed peoples.
• 3. Inequality :- In developing country like India, we can see the difference one basis of earning. 10% of
people are earning more than Rs. 100000 per day and other are earning less than Rs. 100 per day. By
making a good fiscal policy, govt. can reduce this difference. If govt makes it as his target.
• 4. Fixation of Govt. Responsibility:- It is the duty of Govt. to effective use of resources and by making
of fiscal policy different minister's accountability can be checked.

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 Techniques of Fiscal Policy
• 1. Taxation Policy Taxation policy is relating to new amendments in direct tax and indirect tax. Govt. of
India passes finance bill every year. In this policy govt. determines the rate of taxes. Govt. can increase
or decrease these tax rates and amend previous rules of taxation Govt.'s earning's main source is
taxation. But more tax on public will adverse effect on the development of economy.
• → If Govt. will increase taxes, more burdens will be on the public and it will reduce production and
purchasing power of public.
• → If Govt. will decrease taxes, then public's purchasing power will increase and it will Increase the
inflation.
Govt. analyzes both the situation and will make his taxation policy more progressive.
• 2. Govt. Expenditure Policy
• There are large number of public expenditure like opening of govt schools, colleges and Universities,
making of bridges, roads and new railway tracks. In all above projects govt has paid large amount for
purchasing and paying wages and salaries all this expenditure are paid after making govt. expenditure
policy. Govt. can increase or decrease the amount of public expenditure by changing govt. budget. So,
govt. expenditure is technique of fiscal policy by using this , govt. use his fund first on very necessary
sector and other will be done after this .
• 3. Deficit Financing Policy
If Govt.'s expenditures are more than his revenue, then govt. should have to collect this Amount. This
amount is deficit and it can be fulfilled by issuing new currency by central Bank of country. But, it will
reduce the purchasing power of currency . More new Currency will increase inflation and after inflation
value of currency will decrease. So, deficit financing is very serious issue in the front of govt. Govt.
should use it , if there is no other source of govt. earning .

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• 4. Public Debt Policy
If Govt. thinks that deficit financing is not sufficient for fulfilling the public expenditure or if govt. does
not use deficit financing, then govt. can take loan from world bank, or take loan from public by
issuing govt. securities and bonds . But it will also increase the cost of debt in the form of interest
which govt. has to pay on the amount of loan. So, govt. has to make solid budget for this and after
this amount is fixed which is taken as debt. This policy can also use as the technique of fiscal policy
for increase the treasure of govt.
Limitation of Fiscal Policy
• 1. After issuing new notes for payment of govt. of expenses, inflation of India is increasing rapidly and
in this inflation, prices of necessary goods are increasing very fastly. Living of poor person has become
difficult. So, these sign shows the failure of Indian fiscal policy.
• 2. Govt. fiscal policy has failed to reduce the black money. Even large amount of past Minister is in the
form of black money which is deposited in Swiss Bank.
• 3. After taking loan from World Bank under the fiscal policy's debt technique, govt. has to obey the
rules and regulations of World Bank and IMF. These rules are more harmful developing small domestic
business of India. These organizations are interred related with WTO and they want to stop Indian
domestic Industry.
• 4. After expending large amount for generating new employment under fiscal policy, rate of
unemployment is increasing fastly and big lines on govt. employment exchange can be seen generally
in working days. Database of employment exchanges are full from educated unemployed candidates

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 FERA & FEMA
• Foreign exchange transaction have traditional been regulate in India.
For this purpose, Foreign exchange Regulation Act (FERA) was promulgated in
1973.However, with recent trends of liberalization in the economy, the focus has
shifted from regulation to management with the result the FERA has been
replaced by FEMA (Foreign Exchange Management Act)
• (a) FERA and its provisions
• (b) FEMA and its provisions
• (c) Difference b/w FERA and FEMA.
1. FERA, 1973
• FERA was promulgated in 1973 and it come into force on January 1 1974. As
name itself, the act aimed at regulating foreign exchange. The principal objective
of the act is to prevent the outflow of Indian currency and to see that the foreign
exchange legitimately due to India should be received.

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 Main objective of the Act.
• - To regulate certain payment.
• - To regulate dealings in foreign exchange and securities.
• - To regulate the transaction indirectly affecting foreign exchange.
• - To regulate import and export of currency and bullion.
• - To conserve the foreign exchange resources of the country and t
utilize the same in the interests of the economic development of
the country.
• - To regulate holding of immovable properly outside India.
• - To regulate employment of foreign nationals.
• - To regulate acquisition, holding, etc of immovable properly in
India by non-residents.
• - To regulate foreign companies.

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• The act applies to the whole of India, to citizens of
India outside India and to branches
• and agencies outside India of companies or corporate
bodies registered in India.
• Provisions under the Act:-
• (A) FERA authoress only RBI to deal with foreign
exchange transactions.
• (B) Restrictions on Payments.
• (C) Restrictions on Import-Export of Currency.
• (D) Restrictions on Immovable properties etc.

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 FEMA Foreign Exchange Management Act.
• The FEMA was introduced by the govt. of India in July, 1998 to repeal FERA and to
consolidate and mend the law relating to foreign exchange with the objective of
facilitating external trade and payments and maintenance of foreign exchange
and maintenance of foreign exchange market in India.
• Objectives:-
• - To facilitate external trade and payments
• - To promote the orderly development and maintenance of foreign exchange
market.
• The Act Extends to the whole of India.

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 The main provisions of the Act are as follows
• Sec 3:- Dealing in Foreign Exchange. No person shall deal in or transfer foreign exchange to
any person.
• Sec 4:- Holding of Foreign Exchange. No person resident in India shall acquire, hold, on,
possess or transfer any foreign exchange foreign security or any immovable property
situated outside India.
• Sec 5:- Current Account transactions any person may sell or draw foreign exchange to or
from an authority person it such or drawl is a current account transaction provided that
the central govt. may in public interest and in consultation with RBI, impose such
reasonable restrictions for current account transactions as may be prescribed.
• Sec 6:- Capital Account Transactions: Any class or classes of capital account transactions
which are permissible and limit up to which foreign exchange shall be admission for such
transactions.
• Sec 7:- Export of goods and services: Every exporter of goods or services shall furnish to
the RBI details regarding the export value of such goods or services.
• Sec 8:- Realization and Repatriation of Foreign exchange: A person shall take steps to
realize and repatriate to India, such foreign exchange within a specified period of time.

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TALVIR SINGH PLUS COURSE ON UNACADEMY
 CONSUMER PROTECTION ACT 1986

• India is a very big country where majority of consumer are poor and disorganized. The
market of India is a seller’s market audit is very easy to deceive the consumers. The
Government has taken many steps to protect the consumers. The biggest help in this
direction from the government is that the Central Government enacted a law to protect
the consumers which is known as the consumer protection Act 1986.

• This act was treated as unique in the world because it not only recognized consumer rights
but also established a redress system.
• Three Tear Mechanism
• 1. The Central Consumer Protection Council
• 2. The State Consumer Protection Council
• 3. The district Consumer Protection Council
This Act also provide the three tier grievance redressed system which solve the disputes

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(Consumer Disputes Redressed Agencies)Related to
Consumers-
• 1. National Consumer Disputes Redressed Commission
(Above 1 crores)
• 2. State Consumer Disputes Redressed Commission (20
lakh-1 core)
• 3. District Forum means Consumer Disputes Redressed
Forum. (Up to 20 lakhs)

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• Objectives of consumer protection act as follows:-
• 1) Protecting the consumers against immoral and unfair
activities f the traders
• 2) Compensating to the consumers
• 3) To setup consumer forums and consumer commission or
council for the disposal of consumer disputes.
• 4) To educate the consumers for their rights controlling to
market

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• It covers the six rights of the consumers-
1) Right to safety
2) Right to be informed
3) Right to choose
4) Right to be heard
5) Right to redressal
6) Right to consumers education
• It covers some areas also such as –
• 1) Banking 2) Insurance 3) Transport 4) Processing 5) Physicians
• Consumer protection amendment act 2002 passed on 17th
December 2002 and implemented on 15th march 2003
• Admissibility of complains is 21 days
• If someone wants to move from national to state or state to district
then it can be moved within 30 days

TALVIR SINGH PLUS COURSE ON UNACADEMY

• AWARE- Association of women against rising expenses
• Consumerism- consumer as king
• Caveat emptor- let the buyer beware
• Caveat vendor – let the seller beware
• If someone is filing a fake case then penalty will be imprisonment of 1
month to 3yrs according to case or rs 2000 to 10000. The period of appeal is 30
days from date of order
• Responsibilities of consumers-
• 1) To provide adequate information to seller.
• 2) To exercise caution in purchasing.
• 3) To insist on cash memo & receipt.
• 4) To file complain against genuine grievances.
• 5) To be quality conscious.
• 6) To be cautious against false & misleading advertisements.
• 7) To exercise legal rights.

TALVIR SINGH PLUS COURSE ON UNACADEMY

• Followings are the types of laws which protect the interest of the
consumers-
• 1) The contract act 1872
• 2) The sales of goods act 1930
• 3) The law of torts (when seller fraud with buyer or seller is negligent)
• 4) The essential commodities act 1955 (equitable distribution of
essential commodities at reasonable price to consumers)
• 5) The prevention of food adulteration act 1954 (to ensure purity in food
articles)
• 6) The standards of weights and measures act 1976 (weights, measures
or numbers)
• 7) The trade and merchandise marks act 1958 (protection of trade mark
and to prevent the use of fraudulent marks on merchandise)
• 8) The monopolies and restrictive trade practices act 1969

TALVIR SINGH PLUS COURSE ON UNACADEMY