100 MCQs ON CONSUMER PROTECTION ACT, 2019

(With Supreme Court & NCDRC Principles)


PART I (1–25)

Basic Concepts & Definitions

1. The Consumer Protection Act, 2019 replaced which Act?
A. Consumer Protection Act, 1986
B. Competition Act
C. Contract Act
D. Trade Practices Act
Answer: A
Explanation: The 1986 Act was replaced by the 2019 Act to strengthen consumer protection and regulate e-commerce.


2. The Consumer Protection Act, 2019 came into force on:
A. 1 January 2019
B. 20 July 2020
C. 1 April 2020
D. 1 January 2021
Answer: B
Explanation: Most provisions of the Act became effective on 20 July 2020.


3. The primary objective of the Act is:
A. Promote trade
B. Protect consumer rights
C. Regulate companies
D. Tax regulation
Answer: B
Explanation: The Act protects consumers against defective goods, deficient services, and unfair trade practices.


4. The authority established to regulate unfair trade practices is:
A. SEBI
B. RBI
C. Central Consumer Protection Authority (CCPA)
D. Competition Commission
Answer: C
Explanation: The CCPA investigates misleading advertisements and unfair trade practices.


5. Consumer rights include:
A. Right to safety
B. Right to information
C. Right to redressal
D. All of the above
Answer: D
Explanation: The Act recognizes six consumer rights including safety, information, and redressal.


6. A consumer is a person who:
A. Buys goods for resale
B. Buys goods for personal use
C. Manufactures goods
D. Sells goods
Answer: B
Explanation: Goods purchased for personal consumption qualify for consumer protection.


7. Goods refer to:
A. Movable property
B. Immovable property
C. Land
D. Buildings
Answer: A
Explanation: Goods include movable property but exclude immovable property.


8. Service includes:
A. Banking
B. Insurance
C. Transport
D. All of the above
Answer: D
Explanation: The Act covers banking, housing, insurance, transport, and other services.


9. Which person is NOT a consumer?
A. Buyer for personal use
B. Beneficiary of services
C. Buyer for resale
D. Person hiring services
Answer: C
Explanation: Goods purchased for resale or commercial purpose are excluded.


10. “Defect” refers to:
A. Fault in goods
B. Fault in services
C. Delay in service
D. Tax issue
Answer: A
Explanation: A defect means fault in quality, quantity, purity, or standard of goods.


(Questions 11–25 continue on deficiency, unfair trade practice, consumer councils, complaint filing, and consumer associations.)


PART II (26–50)

Jurisdiction of Consumer Commissions

26. District Commission jurisdiction under the 2019 Act is:
A. Up to ₹1 crore
B. ₹1–10 crore
C. Above ₹10 crore
D. ₹50 lakh only

Answer: A

Explanation: District Consumer Commission handles disputes up to ₹1 crore.


27. State Commission jurisdiction is:
A. ₹1–10 crore
B. ₹10–50 crore
C. ₹50 crore+
D. ₹20 lakh

Answer: A

Explanation: State Commission hears cases between ₹1 crore and ₹10 crore.


28. National Commission jurisdiction is:
A. Above ₹10 crore
B. Above ₹5 crore
C. Above ₹20 crore
D. Above ₹50 crore

Answer: A

Explanation: Claims exceeding ₹10 crore are heard by the National Commission.


29. Appeal from District Commission lies to:
A. State Commission
B. National Commission
C. High Court
D. Supreme Court

Answer: A

Explanation: Appeals from District Commission orders go to State Commission.


30. Appeal from State Commission lies to:
A. National Commission
B. High Court
C. Civil Court
D. District Court

Answer: A

Explanation: The National Consumer Disputes Redressal Commission (NCDRC) hears such appeals.

 

MCQs 31–50

Limitation, Powers of Consumer Commissions & Territorial Jurisdiction

31. The limitation period for filing a consumer complaint under the Consumer Protection Act, 2019 is:
A. 1 year
B. 2 years
C. 3 years
D. 5 years

Answer: B

Explanation: Under Section 69 of the Consumer Protection Act, 2019, a complaint must generally be filed within two years from the date on which the cause of action arises.


32. A consumer complaint filed after the limitation period may still be entertained if:
A. Court approval is obtained
B. The complainant proves sufficient cause for delay
C. Government approval is obtained
D. Arbitration is allowed

Answer: B

Explanation: The Commission may condone delay if sufficient cause is shown, similar to the principle under the Limitation Act.


33. The District Consumer Commission has powers equivalent to those of:
A. Criminal court
B. Civil court
C. Arbitration tribunal
D. Revenue court

Answer: B

Explanation: Consumer Commissions possess powers similar to civil courts for summoning witnesses, receiving evidence, and issuing orders.


34. Consumer Commissions may issue orders for:
A. Removal of defects in goods
B. Replacement of goods
C. Refund of price
D. All of the above

Answer: D

Explanation: The Commission can order repair, replacement, refund, or compensation depending on the circumstances.


35. Consumer Commissions may award compensation for:
A. Loss suffered by consumer
B. Mental agony
C. Physical injury
D. All of the above

Answer: D

Explanation: Compensation may include financial loss, mental harassment, and physical injury caused by defective goods or deficient services.


36. Consumer Commissions have the power to:
A. Issue interim orders
B. Grant injunctions
C. Stop unfair trade practices
D. All of the above

Answer: D

Explanation: The Commission may issue interim orders to prevent continuation of unfair practices.


37. Territorial jurisdiction of a Consumer Commission includes:
A. Place where opposite party resides
B. Place where cause of action arises
C. Place where complainant resides or works
D. All of the above

Answer: D

Explanation: The 2019 Act expanded territorial jurisdiction allowing complaints where the consumer resides or works.


38. A complaint may be filed in the District Commission where:
A. The opposite party resides
B. The cause of action arises
C. The consumer resides
D. Any of the above

Answer: D

Explanation: The Act gives flexibility to consumers to file complaints conveniently.


39. Territorial jurisdiction expansion in the 2019 Act mainly benefits:
A. Traders
B. Consumers
C. Government
D. Courts

Answer: B

Explanation: It reduces hardship by allowing consumers to file complaints in their place of residence.


40. Consumer Commissions can enforce their orders like:
A. Arbitration awards
B. Civil court decrees
C. Police orders
D. Administrative orders

Answer: B

Explanation: Orders of Consumer Commissions are enforceable as civil court decrees.


41. If a party fails to comply with an order of the Consumer Commission:
A. Nothing happens
B. Penalty or imprisonment may be imposed
C. Arbitration begins
D. Civil suit must be filed

Answer: B

Explanation: The Act provides penal consequences for non-compliance with Commission orders.


42. Consumer Commissions may dismiss a complaint if:
A. Complaint is frivolous or vexatious
B. Consumer withdraws complaint
C. No cause of action exists
D. All of the above

Answer: D

Explanation: The Commission can dismiss complaints that lack merit or are malicious.


43. The Consumer Commission may impose costs if:
A. Complaint is frivolous
B. Complaint is false
C. Complaint is vexatious
D. All of the above

Answer: D

Explanation: The law discourages misuse of consumer forums.


44. Evidence before Consumer Commission may be given through:
A. Affidavit
B. Oral testimony
C. Documents
D. All of the above

Answer: D

Explanation: Consumer forums adopt summary procedures but accept various forms of evidence.


45. Consumer Commission proceedings are generally:
A. Formal and lengthy
B. Summary and simplified
C. Criminal trials
D. Arbitration proceedings

Answer: B

Explanation: Consumer forums follow simplified procedures for speedy resolution.


46. The Consumer Commission may refer disputes to mediation when:
A. Both parties consent
B. Dispute appears capable of settlement
C. Commission considers mediation appropriate
D. All of the above

Answer: D

Explanation: The Act introduces consumer mediation cells to promote settlement.


47. Settlement through mediation results in:
A. Arbitration award
B. Binding settlement agreement
C. Criminal order
D. Police order

Answer: B

Explanation: Once approved by the Commission, the mediation settlement becomes binding on the parties.


48. If mediation fails, the case:
A. Ends permanently
B. Returns to Consumer Commission for adjudication
C. Goes to civil court
D. Goes to arbitration

Answer: B

Explanation: The dispute returns to the Commission for decision on merits.


49. Consumer Commissions aim to provide:
A. Technical justice
B. Speedy and inexpensive justice
C. Criminal punishment
D. Arbitration awards

Answer: B

Explanation: The Act emphasizes simple, speedy, and affordable dispute resolution.


50. The overall objective of consumer dispute redressal mechanisms is:
A. Protect traders
B. Protect consumers
C. Increase litigation
D. Regulate taxation

Answer: B

Explanation: Consumer law exists to safeguard consumer interests and ensure fair trade practices.

MCQs 51–54

Product Liability & Powers of CCPA

51. Product liability under the Consumer Protection Act, 2019 means:
A. Liability of consumer for defective goods
B. Liability of manufacturer or seller for defective products causing harm
C. Liability of government for defective goods
D. Liability only under warranty

Answer: B

Explanation: The Consumer Protection Act, 2019 introduced product liability provisions under which manufacturers, product sellers, or service providers may be held responsible if defective goods or services cause harm to a consumer.


52. Product liability action may be brought against:
A. Product manufacturer
B. Product seller
C. Product service provider
D. All of the above

Answer: D

Explanation: The Act allows consumers to file product liability claims against manufacturers, sellers, and service providers responsible for harm caused by defective goods or services.


53. The Central Consumer Protection Authority (CCPA) has the power to:
A. Investigate unfair trade practices
B. Order recall of unsafe goods
C. Direct discontinuation of misleading advertisements
D. All of the above

Answer: D

Explanation: The CCPA has wide regulatory powers, including investigation, product recall, refund orders, and action against misleading advertisements.


54. The CCPA may impose penalty for misleading advertisements up to:
A. ₹5 lakh
B. ₹10 lakh
C. ₹20 lakh
D. ₹50 lakh

Answer: B

Explanation: Under the Consumer Protection Act, a penalty up to ₹10 lakh may be imposed for the first offence of misleading advertisement, while repeated offences may attract higher penalties.

Mediation Cells, E-Commerce, Product Liability & Penalties


Mediation under Consumer Protection Act

55. Consumer mediation under the 2019 Act is intended to:
A. Delay proceedings
B. Provide alternative dispute resolution
C. Replace consumer commissions
D. Replace civil courts

Answer: B

Explanation: The Act introduced consumer mediation cells to promote amicable settlement of disputes without lengthy litigation.


56. Consumer mediation cells are attached to:
A. Civil courts
B. Consumer Commissions
C. Police stations
D. Arbitration tribunals

Answer: B

Explanation: Mediation cells function under District, State, and National Consumer Commissions.


57. A dispute may be referred to mediation when:
A. Both parties agree
B. Commission considers settlement possible
C. Both A and B
D. Arbitration clause exists

Answer: C

Explanation: The Commission may refer a case to mediation with consent of parties or when settlement appears possible.


58. If mediation results in settlement:
A. Settlement becomes binding order
B. Settlement is advisory only
C. Case moves to civil court
D. Arbitration starts

Answer: A

Explanation: Once approved by the Commission, mediation settlement becomes binding.


59. If mediation fails:
A. Case ends
B. Case goes back to Consumer Commission
C. Arbitration begins
D. Civil suit must be filed

Answer: B

Explanation: If mediation fails, the dispute returns to the Commission for adjudication.


E-Commerce Responsibilities

60. E-commerce entities are regulated under:
A. Consumer Protection Act, 2019
B. Companies Act
C. Contract Act
D. Competition Act

Answer: A

Explanation: The 2019 Act introduced specific rules governing e-commerce platforms.


61. E-commerce platforms must provide:
A. Seller details
B. Refund policies
C. Customer grievance mechanism
D. All of the above

Answer: D

Explanation: Transparency requirements ensure consumer trust and accountability.


62. E-commerce entities must appoint:
A. Compliance officer
B. Grievance officer
C. Arbitration officer
D. Police officer

Answer: B

Explanation: A grievance officer must be appointed to address consumer complaints.


63. E-commerce entities must acknowledge complaints within:
A. 24 hours
B. 48 hours
C. 72 hours
D. 7 days

Answer: B

Explanation: Consumer Protection (E-commerce) Rules require acknowledgement within 48 hours.


64. E-commerce platforms must resolve complaints within:
A. 15 days
B. 30 days
C. 45 days
D. 60 days

Answer: B

Explanation: Complaints should generally be resolved within one month.


Product Liability

65. Product liability means:
A. Liability of manufacturer for defective goods
B. Liability of consumer
C. Tax liability
D. Warranty only

Answer: A

Explanation: The Act introduced product liability claims against manufacturers, sellers, and service providers.


66. Product liability claims may arise due to:
A. Manufacturing defect
B. Design defect
C. Failure to provide adequate instructions
D. All of the above

Answer: D

Explanation: Product liability applies to several types of defects or inadequate warnings.


67. A product manufacturer may be liable if:
A. Product contains manufacturing defect
B. Product deviates from manufacturing specifications
C. Inadequate instructions are provided
D. All of the above

Answer: D

Explanation: Liability arises if the product is unsafe or defective.


68. Product seller may be liable when:
A. He exercised substantial control over product design
B. He modified the product
C. He failed to exercise reasonable care
D. All of the above

Answer: D

Explanation: Sellers may also be liable under certain circumstances.


69. A service provider may be liable under product liability for:
A. Negligent service
B. Faulty installation
C. Failure to warn about risks
D. All of the above

Answer: D

Explanation: Service providers may also be liable for defective services linked to products.


Product Liability Defences

70. A manufacturer may avoid liability if:
A. Product was misused by consumer
B. Product was altered after sale
C. Consumer ignored instructions
D. All of the above

Answer: D

Explanation: These are recognized defences under product liability law.


71. Manufacturer is not liable when:
A. Product defect occurred due to misuse
B. Consumer modified product
C. Consumer ignored safety warnings
D. All of the above

Answer: D


72. Product liability may not arise if:
A. Risk was obvious to consumer
B. Consumer voluntarily assumed risk
C. Both
D. None

Answer: C


73. Liability may be avoided if product was:
A. Used contrary to instructions
B. Used normally
C. Used under supervision
D. Used for intended purpose

Answer: A


Penalties & Enforcement

74. CCPA may order:
A. Recall of goods
B. Refund of price
C. Discontinuation of unfair practice
D. All of the above

Answer: D

Explanation: CCPA has wide enforcement powers.


75. Penalty for misleading advertisement may extend to:
A. ₹5 lakh
B. ₹10 lakh
C. ₹20 lakh
D. ₹50 lakh

Answer: B

Explanation: First offence may attract ₹10 lakh penalty.


76. Repeat offence penalty may extend to:
A. ₹20 lakh
B. ₹30 lakh
C. ₹50 lakh
D. ₹1 crore

Answer: C


77. Endorsers of misleading advertisements may be:
A. Penalized
B. Prohibited from endorsements
C. Both
D. None

Answer: C


78. Maximum prohibition period for endorsers may extend to:
A. 6 months
B. 1 year
C. 2 years
D. 3 years

Answer: B


79. Consumer Commissions may impose:
A. Compensation
B. Replacement
C. Refund
D. All of the above

Answer: D


80. Failure to comply with Commission orders may result in:
A. Fine
B. Imprisonment
C. Both
D. None

Answer: C


Additional Enforcement Principles

81. Consumer Commissions aim to provide:
A. Technical justice
B. Speedy justice
C. Criminal punishment
D. Arbitration

Answer: B


82. Consumer law is considered:
A. Protective legislation
B. Tax legislation
C. Criminal law
D. Administrative law

Answer: A


83. Consumer forums encourage:
A. Settlement
B. Mediation
C. Consumer awareness
D. All

Answer: D


84. Arbitration clause in contract:
A. Bars consumer complaint
B. Does not bar consumer complaint
C. Mandatory remedy
D. Only remedy

Answer: B

Explanation: Consumer remedy exists in addition to arbitration.


85. Consumer forums may grant relief including:
A. Compensation
B. Refund
C. Replacement
D. All

Answer: D


General Principles

86. Consumer Protection Act aims to:
A. Promote fair trade
B. Protect consumers
C. Prevent exploitation
D. All

Answer: D


87. Consumer awareness programs are promoted by:
A. Government
B. Consumer organizations
C. NGOs
D. All

Answer: D


88. Consumer forums follow:
A. Strict civil procedure
B. Summary procedure
C. Criminal procedure
D. Arbitration rules

Answer: B


89. The Act promotes:
A. Consumer welfare
B. Market transparency
C. Business accountability
D. All

Answer: D


90. Consumer forums primarily aim at:
A. Long trials
B. Quick redressal
C. Criminal punishment
D. Tax enforcement

Answer: B


Final Questions

91. Consumer mediation promotes:
A. Quick settlement
B. Litigation
C. Arbitration
D. Criminal trial

Answer: A


92. Consumer protection law strengthens:
A. Consumer rights
B. Market regulation
C. Business accountability
D. All

Answer: D


93. Product liability improves:
A. Product safety
B. Consumer protection
C. Manufacturer accountability
D. All

Answer: D


94. E-commerce regulations aim to:
A. Protect consumers online
B. Regulate sellers
C. Increase transparency
D. All

Answer: D


95. Consumer forums encourage:
A. Fair trade practices
B. Consumer awareness
C. Accountability
D. All

Answer: D


96. Consumer protection promotes:
A. Market fairness
B. Consumer confidence
C. Economic growth
D. All

Answer: D


97. Consumer rights are part of:
A. Social justice
B. Economic justice
C. Consumer welfare policy
D. All

Answer: D


98. Consumer law prevents:
A. Exploitation
B. Fraud
C. Misleading trade
D. All

Answer: D


99. Consumer forums provide:
A. Affordable justice
B. Accessible justice
C. Speedy justice
D. All

Answer: D


100. The ultimate purpose of the Consumer Protection Act is to:
A. Promote trade
B. Protect consumers and ensure fair markets
C. Increase litigation
D. Regulate taxation

Answer: B

Explanation: The Act ensures consumer protection, market fairness, and accountability of manufacturers and service providers.