PART I (1–10)
Landmark Supreme Court Judgments
1. In Lucknow Development Authority v. M.K. Gupta, the Supreme Court held that:
A. Housing construction is not a service
B. Housing authorities are not liable under consumer law
C. Housing construction is a service under consumer protection law
D. Consumer courts have no jurisdiction
Answer: C
Explanation: The Court held that housing construction by development authorities constitutes a “service”, and consumers may seek compensation for deficiency.
2. In Morgan Stanley Mutual Fund v. Kartick Das, the Supreme Court held that:
A. Share applicants are consumers before allotment
B. Shares before allotment are not goods
C. Share investors always qualify as consumers
D. Civil court has jurisdiction only
Answer: B
Explanation: The Court held that before allotment of shares there is no sale of goods, hence the applicant is not yet a consumer.
3. In Fair Air Engineers Pvt. Ltd. v. N.K. Modi, the Supreme Court held that:
A. Arbitration clause bars consumer complaint
B. Arbitration clause does not bar consumer complaint
C. Consumer forums cannot hear arbitration disputes
D. Arbitration must be used first
Answer: B
Explanation: The Court held that consumer remedies are additional and arbitration clause does not bar consumer complaint.
4. In National Seeds Corporation Ltd. v. M. Madhusudhan Reddy (2012) the Court held that:
A. Farmers are not consumers
B. Farmers buying seeds for cultivation are consumers
C. Agricultural disputes cannot be consumer disputes
D. Only civil courts can decide such disputes
Answer: B
Explanation: Farmers who purchase seeds for cultivation are considered consumers under the Act.
5. In Ireo Grace Realtech Pvt. Ltd. v. Abhishek Khanna (2021) the Supreme Court held that:
A. One-sided builder agreements are valid
B. One-sided agreements may constitute unfair trade practice
C. Builders have absolute power
D. Consumer courts lack jurisdiction
Answer: B
Explanation: The Court held that unfair and one-sided contractual clauses in builder-buyer agreements constitute unfair trade practices.
6. In Neena Aneja v. Jai Prakash Associates Ltd. (2021) the Supreme Court held that:
A. Consumer Protection Act 2019 applies retrospectively
B. Cases filed under 1986 Act will continue under that Act
C. Civil courts decide disputes
D. Arbitration clause mandatory
Answer: B
Explanation: The Court clarified that pending complaints continue under the 1986 Act.
7. In Kishore Lal v. Chairman, ESI Corporation, the Supreme Court held that:
A. Medical services are excluded from consumer law
B. Medical negligence cases may fall under consumer law
C. Only civil courts decide medical negligence
D. Medical professionals cannot be liable
Answer: B
Explanation: Medical services may constitute services under consumer law, enabling patients to file complaints.
8. In Spring Meadows Hospital v. Harjol Ahluwalia, the Court held that:
A. Hospitals are not liable for negligence
B. Medical negligence claims are maintainable under consumer law
C. Only criminal courts may decide negligence
D. Arbitration mandatory
Answer: B
Explanation: The Court held hospitals liable for medical negligence causing harm to patients.
9. In Indian Medical Association v. V.P. Shantha, the Court held that:
A. Medical services fall outside consumer law
B. Medical services are included under “service”
C. Doctors cannot be sued
D. Consumer forums lack jurisdiction
Answer: B
Explanation: The Supreme Court held that medical services are covered under consumer law except free services.
10. In Skypak Couriers Ltd. v. Tata Chemicals Ltd., the Court held that:
A. Courier services are not services
B. Courier services fall under consumer law
C. Civil courts alone decide courier disputes
D. Arbitration mandatory
Answer: B
Explanation: Courier services are considered services under consumer law.
PART II (11–20)
NCDRC Judgments
11. NCDRC is established under:
A. Consumer Protection Act
B. Companies Act
C. Competition Act
D. Arbitration Act
Answer: A
Explanation: The National Consumer Disputes Redressal Commission is the apex consumer forum under the Act.
12. NCDRC has jurisdiction over claims exceeding:
A. ₹1 crore
B. ₹5 crore
C. ₹10 crore
D. ₹20 crore
Answer: C
Explanation: Under the 2019 Act, NCDRC hears cases above ₹10 crore.
13. NCDRC may award:
A. Compensation
B. Refund
C. Replacement
D. All of the above
Answer: D
14. NCDRC decisions are appealable to:
A. High Court
B. Supreme Court
C. District Commission
D. State Commission
Answer: B
15. NCDRC may dismiss complaints if:
A. Frivolous
B. Vexatious
C. Without merit
D. All of the above
Answer: D
Consumer Complaints & Jurisdiction
16. Consumer disputes under the Consumer Protection Act are adjudicated by:
A. Civil Courts
B. Consumer Commissions
C. Arbitration Tribunals
D. Magistrate Courts
Answer: B
Explanation: The Act establishes a three-tier redressal mechanism consisting of the District Consumer Commission, State Consumer Commission, and National Consumer Commission to decide consumer disputes.
17. Which of the following may file a consumer complaint under the Act?
A. Consumer
B. Consumer association
C. Central or State Government
D. All of the above
Answer: D
Explanation: The Act allows complaints to be filed not only by individual consumers but also by registered consumer associations and government authorities acting in the public interest.
18. A consumer complaint may be filed in respect of:
A. Defective goods
B. Deficiency in services
C. Unfair trade practices
D. All of the above
Answer: D
Explanation: Consumer forums may entertain complaints regarding defects in goods, deficiency in services, unfair or restrictive trade practices, and misleading advertisements.
19. E-commerce transactions are specifically regulated under:
A. Consumer Protection Act, 2019
B. Contract Act, 1872
C. Companies Act, 2013
D. Competition Act, 2002
Answer: A
Explanation: The Consumer Protection Act, 2019 and the Consumer Protection (E-Commerce) Rules, 2020 regulate online marketplaces and protect consumers engaging in digital transactions.
20. The overall objective of the Consumer Protection Act is to:
A. Promote trade
B. Protect consumer rights and provide effective dispute resolution
C. Regulate taxation
D. Promote arbitration
Answer: B
Explanation: The Act aims to protect consumers from exploitation and provide simple, speedy, and inexpensive redressal of consumer grievances through specialized tribunals.
PART III (21–30)
Banking & Insurance Consumer Disputes
21. Banking services fall under consumer protection law as:
A. Service
B. Goods
C. Tax
D. Contract
Answer: A
22. Delay in settlement of insurance claim may amount to:
A. Defect
B. Deficiency in service
C. Tax violation
D. Arbitration dispute
Answer: B
23. Wrong debit by bank may constitute:
A. Deficiency in service
B. Criminal offence only
C. Contract breach only
D. Arbitration matter
Answer: A
24. Failure of bank to honour cheque may lead to:
A. Consumer complaint
B. Arbitration
C. Criminal trial only
D. Tax proceeding
Answer: A
25. Delay in housing possession may be treated as:
A. Unfair trade practice
B. Deficiency in service
C. Both
D. None
Answer: C
Jurisdiction of Consumer Commissions
26. The pecuniary jurisdiction of the District Consumer Commission under the Consumer Protection Act, 2019 is:
A. Up to ₹50 lakh
B. Up to ₹1 crore
C. Up to ₹2 crore
D. Up to ₹5 crore
Answer: B
Explanation: Under the Consumer Protection Act, 2019, the District Consumer Commission has jurisdiction where the value of goods or services paid as consideration does not exceed ₹1 crore.
27. The pecuniary jurisdiction of the State Consumer Commission is:
A. ₹50 lakh – ₹5 crore
B. ₹1 crore – ₹10 crore
C. ₹5 crore – ₹20 crore
D. ₹10 crore – ₹50 crore
Answer: B
Explanation: The State Commission hears cases where the consideration paid exceeds ₹1 crore but does not exceed ₹10 crore.
28. The National Consumer Disputes Redressal Commission (NCDRC) has jurisdiction where the value of goods or services paid as consideration:
A. Exceeds ₹5 crore
B. Exceeds ₹10 crore
C. Exceeds ₹20 crore
D. Exceeds ₹50 crore
Answer: B
Explanation: The National Commission deals with cases where the consideration paid exceeds ₹10 crore.
29. Appeal against the order of the District Consumer Commission lies before:
A. National Commission
B. High Court
C. State Commission
D. Supreme Court
Answer: C
Explanation: An appeal against the District Commission’s order must be filed before the State Consumer Disputes Redressal Commission.
30. Appeal against the order of the State Consumer Commission lies before:
A. National Commission
B. High Court
C. District Commission
D. Civil Court
Answer: A
Explanation: Orders of the State Commission are appealable before the National Consumer Disputes Redressal Commission (NCDRC).
Limitation, Territorial Jurisdiction & Powers of Consumer Commissions
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 normally be filed within two years from the date on which the cause of action arises.
32. A complaint filed after the limitation period may be entertained if:
A. Arbitration clause exists
B. Sufficient cause for delay is shown
C. Government approval is obtained
D. Court permission is mandatory
Answer: B
Explanation: The Consumer Commission may condone delay if sufficient cause for the delay is shown, similar to the principle under the Limitation Act.
33. Consumer Commissions have powers similar to those of:
A. Criminal courts
B. Civil courts
C. Revenue courts
D. Arbitration tribunals
Answer: B
Explanation: Consumer Commissions possess powers of a civil court, including summoning witnesses, receiving evidence, and issuing orders.
34. Consumer Commissions may order:
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 case.
35. Consumer Commissions may award compensation for:
A. Financial loss
B. Mental agony
C. Physical injury
D. All of the above
Answer: D
Explanation: The Act allows compensation for financial loss, mental harassment, and physical injury suffered by the consumer.
36. Consumer Commissions may issue interim orders to:
A. Prevent unfair trade practices
B. Stop sale of hazardous goods
C. Protect consumer interests
D. All of the above
Answer: D
Explanation: Interim orders help prevent further harm to consumers during proceedings.
37. Territorial jurisdiction of a Consumer Commission includes:
A. Place where opposite party resides
B. Place where cause of action arises
C. Place where consumer resides or works
D. All of the above
Answer: D
Explanation: The 2019 Act expanded jurisdiction, allowing complaints where the consumer resides or works for gain.
38. A consumer complaint may be filed where:
A. Opposite party carries business
B. Cause of action arises
C. Consumer resides
D. Any of the above
Answer: D
Explanation: The Act provides flexibility to consumers in choosing the forum.
39. The expansion of territorial jurisdiction under the 2019 Act mainly benefits:
A. Traders
B. Consumers
C. Government
D. Courts
Answer: B
Explanation: Consumers can now file complaints in their place of residence, reducing inconvenience.
40. Orders of Consumer Commissions are enforceable as:
A. Arbitration awards
B. Civil court decrees
C. Police orders
D. Administrative orders
Answer: B
Explanation: Orders of Consumer Commissions are enforceable like decrees of a civil court.