Category: Commerce Notes PPT

The primary element of a valid partnership contract is the capability or eligibility of partners to form a business agreement. The capacity to contract here means the legal ability of an individual or an entity to enter into a partnership. According to business law, the partner must be competent and fulfill the specified criteria before signing a contract.

Section 11 of the Indian Contract Act, 1972 details the capacity in contract law. It defines the ability to form contracts based on three aspects. They are as follows.

Apart from contractual capacity, partnership contracts must also include the following.

• Offer

• Consideration

• Intent

• Legality

• Acceptance

The meaning of contractual capacity can be understood in detail through norms and examples.

Refer to the official website of for a detailed explanation.

Detailed Explanation of Capacity to Contract in a Business

Given below is a thorough explanation of the contractual norms to judge an individual’s capacity to enter into a contract.

1. Attaining the Age of 18

A minor does not hold the capacity of holding a contract in business. Any agreement made with a minor in business is void ab-initio, which means ‘from the beginning’. If any person aged below 18 years enters into a contract, he cannot ratify the agreement even when he turns 18. This means that an invalid agreement can never be ratified.

Even though a minor is prohibited from entering a contract, he can register himself as a beneficiary of an agreement. Section 30 of the Indian Partnership Act, 1932 mentions that a minor cannot participate as a partner in the business, but he can enjoy the benefits earned by the firm.

A minor gets to enjoy some extra benefits in business. This contractual benefit needs to be explained in terms of the capacity to contract with examples. For instance, if a minor pretends to be a major and enters into a contract, he can later plead the minority through some simple formalities. The rule of estoppel is not applicable to a minor.

In some cases, a guardian can enter into a valid business contract on behalf of a minor individual. Here, the guardian has no right to bind a minor to buy any immovable property under the contract. However, with proper certification and approval, the minor’s property can be sold when required. 

According to business law, a minor cannot be declared insolvent at any point in time. Even if the minor owes some dues to the firm, he will not be held personally liable for it.

When a joint contract is signed between a minor and major, it has to be done in the presence of the minor’s guardian. In such contracts, the liability of the contract is held by the adult.

2. An individual has to be of Sound Mind

Section 12 of the Indian Contract Act (1872) necessitates a person to be of sound mind, have a complete understanding of the contract terms and conditions, and hold the ability to judge its impact on his interests.

Here, the capacity of parties to the contract also applies to an individual who is usually of unsound mind and occasionally in sound mind. However, in this case, the contract has to be signed when he is in a state of complete soundness. A contract made by an individual of unsound mind shall be considered as null and void according to capacity law definition.

A person under the influence of any sort of intoxication is considered incapable of entering into a contract. Such individuals can make a contract only when they are sober and have a complete understanding of the contractual terms.

3. People Disqualified under Law

Other than minors and people of unsound mind, some individuals might be restricted from entering into any contract as well. Such individuals do not hold the capacity to contract under valid business laws. Disqualification under contractual laws could include reasons related to politics, legal status, etc. This could also happen when a person is a foreign sovereign, national enemy, convict, or insolvent.

• Alien enemies: people who are having citizenship in countries who don’t have cordial relationships with India or in a war situation are called Alien enemies. People signing the contract during a war situation is not encouraged and a contract during a peace situation is valid.

• Married women: married women are not allowed to enter a contract regarding their husband’s property.

• Pardanashin Women: Pardanashin women who will be under influence are not eligible to be involved in the contract as they cannot understand the contract.

• State Ambassadors: The ambassadors are incompetent to contract.

• Convict Serving Sentence: People who are on Bail or serving their sentence are not allowed to sign a contract.

• Patent Officers: People having patent rights are issued by their owners to them. A patent is a monopoly right given to its owner. Hence patent officers are not allowed to sign the contract.

• Legal professionals: People who work as judges, advocates, public prosecutors are not allowed to sign a contract related to their connections.

For example, Advocate has taken a case from a Y person, the legal proceedings are going on. So advocates cannot sign a contract with that person in buying that property.

• Insolvent: The insolvent person is allowed to purchase the property but cannot sell his own property.

• Company: The company is formed under the law. Different companies are bound by different laws. Here, the company is considered as an artificial person. The company cannot sign contracts outside its limits.

4.Capacity contract limited due to Mental Illness

Persons with mental illness or disorders are also having limited capacity to contract irrespective of age. Some of the instances related to campsity  are listed below-

1. Intellectual disability: People with intellectual disability are having an exception for capacity to contract, it also includes the severity of the disorder.

2. Advanced dementia: People suffering from dementia are exempted from involving or signing the contract.

3. Hallucinations and visions: People who are in hallucination and visualize things without any reference are exempted from signing the contract.

4. Affective disorders: People having depressions or bipolar disorder will have frequent mood changes. So people with these problems are not allowed to be involved in any contract.

Contracts signed by people with disabilities are considered to be null. Court will determine whether the contract is legal or illegal. To determine, as a part of the process, individuals’ mental health is determined. People with stress and are mentally challenged are not allowed to be involved in any contract, if they are involved then it is invalid.

Based on legal capacity, affected people are categorized into different types. They are –

• Partial legal incapacity: If a mental disorder or disability is restricted to a certain area and is normal in day-to-day life, then it is partial legal incapacity. For example, hallucinations.

• Relative legal incapacity: Relative legal incapacity contradicts Partial legal incapacity. People who can perform normal activities like shopping, reading and cannot do long-term contracts are referred to this.

Census and sample surveys essentially relate to the statistical collection of data across various areas and sectors pertaining to the particular subject matter or inquiry. These data collection exercises are undertaken on a cross-section of a targeted population. The information that is derived from the study of a population can be subsequently used for various purposes.  Let us discuss the census and sampling. 

 

The Census Method is also known as a Complete Enumeration Survey Method. In this method each and every item in the universe is selected for the data collection. The selected data might constitute a particular place, a group of people, or any specific locality that is the complete set of items and which are of interest in any particular situation. This method is most commonly used by the government in connection with the national population, housing census, agriculture census, etc. where vast knowledge about these fields is required.

Census Method 

The process used in the census method includes the statistical compilation of all units or members of the target population under the survey. In this case, population relates to the entire set of observations connected to a particular study. For instance, if students of a university have to give feedback on teaching faculty, the former will be held as the population of that study.

 

Sample Method 

Sample method chooses the different sample entities from the targeted population. This method involves a statistical analysis of an already determined number of observations that is derived from a larger set of populations. Sample methodology can be used of different kinds; these can be – simple random sampling or systematic sampling, cluster sampling or stratified sampling, etc. among others.

 

Limitations of Census Method 

• The expenditure incurred during the census is much higher because of the sheer size of the population. Also, data is collected from each unit of a sample population, which requires additional costing. 

• Owing to the huge volume of data that is collated, a greater number of the workforce (as well as man-hours) is required for completion.

• Costly Method: Census method is a very costly method of data collection.

 

Advantages of Sample Method

• It has greater scope than the census method as it acts as a substitute in such cases where the latter becomes impracticable. For instance, if a manufacturer wants to test its range of toasters and other kitchen appliances, it will apply a sample method and not a census method. 

• The nature of the sample method is such that it can be employed to check the results from the census method. Also, due to the small size of its sample, the method is useful for cross-checking the reliability of its own results. A small sample can be taken out of generated results, and that sample will have to be investigated. 

• Accuracy And Reliability: Census method confirms a higher degree of accuracy than other techniques. The Census method provides complete information because each and every item is investigated carefully. Therefore, it is a very reliable method of data collection.

 

Sample Survey

A sample survey is a type of method that is used for collecting data from or about the members of a population so that inferences about the entire population can be obtained from a subset, or sample, of the population members. A sample survey provides an estimate of the average length of stays for surgical and nonsurgical discharges would be calculated and compared. A well-defined sample survey will support inference from the sample that is scientifically valid about the population.

Advantages of Sample Survey

• Accuracy of data is high: Drawing a sample and computing the desired descriptive statistics, A sample survey makes it possible to determine the stability of the obtained sample value. A sample survey permits a high degree of accuracy due to a limited area of operations. 

• Organization of convenience: Organizational problems are very few in sample surveys. The sample is of small size, vast facilities are not required in it. The sample survey is therefore economical in respect of resources. The study of samples in sample surveys involves less space and equipment.

Limitations of Sample Survey

• Difficulties in selecting a truly representative sample: Difficulties in selecting a truly representative sample produce the most reliable and accurate results only when they are representative of the whole group. Selection of a sample is difficult when the phenomena under study are of a complex nature. Selecting good samples for a survey is difficult.

• Inadequate knowledge of the subject: The sampling method requires adequate subject  knowledge in sampling technique. Sampling involves statistical analysis and calculation of error for surveying. When the researcher lacks specialized knowledge in sampling, they commit serious mistakes in sample surveying. 

• The changeability of units: If the units of the population are not homogeneous, the sampling technique will be unscientific. In this sampling method, though the number of cases is small, surveying is not always easy to stick to the selected cases. The units of the sample may be dispersed widely.

Difference between Census And Sample Survey

The organization was seen by the classical authors as a machine and human beings as components of that machine. They were of the belief that the organization’s effectiveness could be enhanced by making human beings successful. Specialization and organization of events were their focus. Most of the authors placed emphasis on top-level productivity and a few on lower organizational levels. That is why streams have been created by this theory; scientific leadership and administrative leadership. The scientific leadership group was primarily concerned with the activities to be carried out at the organizational level.

 

Henry Fayol learned the principles and roles of management for the first time. Some writers, such as Gullick, Oliver Sheldon, Urwick, called the issue where it is important to define activities to achieve organizational goals. To make the functions effective, grouping, or departmentation was also considered necessary. Since this philosophy revolves around the structure, it is also called a structural organizational theory.

 

The conventional theory is the Classical Theory, where more focus is placed on the organization rather than the workers working therein. The organization is regarded as a machine according to classical theory, and human beings as various components/parts of that machine. 

 

Classical Organizational Theory is very important as the first step toward a systematic analysis of organizations. 

 

It deals mainly with the morphology of formal organizations and also treats one as a machine and the workers as components of the machine.

 

Therefore each employee employed in it must become productive in order to improve the organization’s efficiency. 

What is Classical Organization Theory?

The traditional Theory where instead of emphasizing more on the employees, more emphasis is on the Organization is known as the Classical Organization Theory. In this Theory, it is said that the Organization is a machine wherein the humans are different components or parts of that machine. Therefore, it is considered by many experts that the Classical Theory of Organization is inadequate when it comes to dealing with the complexities in the functioning of the Organization as it focuses just on the Organization.

According to the Classical Organizational Theory, humans are considered just as the means of production. The Classical Organizational Theory most primarily deals with formal Organizations. In order to increase the efficiency of the Organizations in accordance with this Theory, the efficiency of the working employees must be increased. 

Classical Organization Theory- 6 Pillars

The 6 main Pillars or elements of the Classical Organizational Theory are listed below-

1. Division of Labor- Work must be divided in an Organization for the improvement in the performance of individual workers and in order to obtain a clear specialization. The company must divide work in order to achieve a specific specialization in order to enhance the efficiency of individual employees.

2. Departmentalization- Different departments must be created for different activities and jobs which would allow the Organization to minimize its costs and facilitate administrative control. The company needs to organize into divisions different tasks and jobs. This enables expenditures to be reduced and administrative control facilitated as well.

3. Coordination- It should be ensured by the Organization that there is harmony among diverse functions. This would provide unity of actions as it allows the arrangement of group efforts in an orderly manner. The company must guarantee peace between the different functions. This allows the collective effort to be organized in an orderly way that offers unity of action when serving a common goal.

4. Scalar and Functional Processes- The series chain of superior and subordinate relationships from the top to the bottom of the Organization is known as the scalar chain. It helps in the facilitation of the delegation of the authority, communication, feedback, and remedial action. The sequence of superior-subordinate relationships in an organization from top to bottom is a scalar chain. It encourages the delegation, contact or input, of authority or order, and also remedial action or decision.

5. Structure-  Structure is the conceptual relationship in an organization between functions. In addition, for efficient goal achievement, these functions are organized. In an Organization, the logical relationships of functions constitute the structure of the Organization. These functions are then arranged in order to accomplish the effective objectives. 

6. Span of Control- This includes the total number of subordinates that can be effectively supervised by a manager. This is the number of subordinates that can be efficiently overseen by a boss.

There have been critiques of classical theory on many levels.

 

Criticisms of the Classical Organizational Theory – 

• It takes a rigid view of organizations as well as a static one. 

• An organization is regarded by most classical theorists as a closed structure with no interaction with its environment. 

• More on the systemic and even the technical aspects of organizations, the theory focuses. 

• It is founded on assumptions that are oversimplified and mechanistic.

 

The emphasis of Classical Theory, in simple terms, is on an organization without individuals. 

 

Therefore in dealing with the complexities of the structure and operation of an organization, many experts consider it insufficient. 

 

In addition, it gives an imperfect description of human actions in corporations.

 

The new-classical approach is contained in two points:

1. The organizational situation should be perceived in social, economic, and    technological terms

2. The social mechanism of group behavior can be understood in terms of the clinical method analogous to the doctor’s diagnosis of the human body.

 

Formal and informal modes of organization are seen as significant in this theory. The other contribution of new-classical thinkers is the behavioral approach adopted in this theory. The foundations of classical theory, in other words. Job division, department, coordination, and human actions were taken as given, but these postulates were considered to be changed by individuals acting individually or within the informal organization context.

A company that is registered as a Non-Profit Organization (NPO) is called Section 8 Company. In our country, it is regulated by the Indian Companies Act 2013. It is further administered by the Ministry of Corporate Affairs and Offices of Registrar of Companies. Section 8 of companies act 2013 has several rules, processes, requirements and procedures. These may vary depending on the type of company that has to be incorporated. 

Definition of Sec 8 Company

As per Section 8 company registration process, the company must have the motivation and will to promote different types of arts, education, commerce, protection of the environment, charity, science, research, sports, religion and social welfare. It must have the intention to use the profits or other form of income to promote these aspects. 

As per Section 8 of companies act, the income cannot be shown using for the payment of dividends to the members of the company. These types of companies, in turn, get an incorporation certificate from the central government. Section 8 company means that it is liable to adhere to the specified rules mentioned by the government.

Features of the Company under Section 8

Under Sec 8 of companies act, the company must be a non-profit source that is dedicated to promoting welfare in the country. Some of the notable features are:

• No dividend

• Any type of income or profit can be utilized for the promotion

• A requirement of special license from Central Government

• Section 8 company registration provides all types of privileges that are subject to the obligations.

Formation of Section 8 Company

The registration process of Section 8 company and Private Limited Company is a lot similar to each. It requires having a minimum of two directors to start a Sec 8 company. It is pivotal for one of the directors to be an Indian Resident and Indian Citizen. The other person/s can be Foreign or Indian National. Section 8 company registration requires a registered office address in India.

Cancellation of License under Section 8 of Companies Act 2013

As per Section 8 of companies act, a company must abide by the norms and standards specified by the Central Government. However, licenses are prone to revoke a company:

• Violates the terms and condition

• Contravenes provisions of Section 8 company registrationConduct fraudulent operations or violates public policies

Based on the violation’s terms and circumstances, the government can even order the company to unite with similar companies to form an NPO structure.

Winding up a Section 8 company requires abiding several rules which are based on an array of compliance laws and procedures. To prevent legal compliances, it is important to stay aware of the legal formalities right from the inception of the company. When a Sec 8 company winds up, the liabilities and assets are disposed of by the liquidator in order to bring it to an end. It is an act through the government that makes sure that no business or action is conducted under Section 8 of companies act 2013, and it is done under legal parameters.

Punishment for Contravention

Due to any contravention of the provisions under Section 8 company examples, if it is discovered that a company is running fraudulent actions or affirms in a violating way which is not accepted for a public interest, then the Central Government has the right (delegated by the Regional Director) to revoke the license of the company to form punishing examples for Section 8 companies. The company may be ordered later by the Central Government to convert it into a private or public limited company.

Advantages and Disadvantages

• Minimum capital is not required

• The company is exempted from registration of Stamp duty

• It has more flexibility

• Income tax rates are the same as other companies

• Possibility of license cancellation has a greater chance 

Looking at the advantages and disadvantages, it’s not always that an NPO cannot secure commission or profits. Companies can certainly earn profits but cannot get benefits from them. Directors, before stepping into the industry, must take a clear look at the norms mentioned by the government to stay away from consequences.

Indication of a Value – The Concept of Cost

‘You are required to put a cost on it!’ This is a common phrase that is used as a general dialect now and then. So, what does it mean? It means putting value on something. Thus, the cost is nothing but a payment of value that is given in order to utilize the service or goods. The concept of cost gives an indication of the overall resource required to avail the same.

Cost is thus another vital concept in the study of business, so, without further ado let us start digging into its concept. 

Concept of Cost in Cost Accounting

The concept of cost is a key concept in Economics. It refers to the amount of payment made to acquire any goods and services. In a simpler way, the concept of cost is a financial valuation of resources, materials, risks, time and utilities consumed to purchase goods and services. From an economist’s point of view, the cost of manufacturing any goods and services is often said to be the concept of opportunity cost. 

With heightened competition in today’s world, companies are urged to make maximum profits. The company’s decision to maximize earnings relies on the behavior of its costs and revenues. Besides the concept of opportunity cost, there are several other concepts of cost namely fixed costs, explicit costs, social costs, implicit costs, social costs, and replacement costs. 

Hence there are several different types of concepts of cost, which have been discussed in the following.

Types of Cost Concept

The idea behind the concept of opportunity cost is that the cost of one item is the lost opportunity to do something else. For example, by being married to a person, one could lose the opportunity to marry some other person or by investing more capital in video games, one might lose the opportunity in watching movies.

The concept of cost can be effortlessly comprehended by classifying the costs. The process of grouping costs is based on similarities or common characteristics. A well-defined classification of costs is certainly essential to mention the costs of cost centers. The different types of cost concepts are:

1. Outlay costs and Opportunity costs

2. Accounting costs and Economic costs

3. Direct/Traceable costs and Indirect/Untraceable costs

4. Incremental costs and Sunk costs

5. Private costs and social costs

6. Fixed costs and Variable costs

Based on the Nature of Expenses

On the basis of nature, the following are the two types of cost:

The authentic payments undergone by an entrepreneur in employing input are known as outlay costs. It includes costs on payments of fuel, rent, electricity, etc.

It is the value of the next best thing you give up whenever a decision is made by you.

Classification in Terms of Traceability

On the basis of traceability, the types of costs are:

1. Direct Costs

A direct cost is a cost that is related to the production method of a good or service. It is the opposite of an indirect cost.

These costs are related to a certain product or a process. They are also known as traceable costs as they could be traced to a specific activity. It is the opposite of an indirect cost.

2. Indirect Costs

Indirect costs are expenses that could not be traced back to a single cost object or cost source. They are also known as untraceable costs. However, they are extremely important as they affect the total profitability.

Concept of Costs in Terms of Treatment

1. Accounting Costs

Accounting costs are direct costs. They are also known as hard costs. The entrepreneur pays the cash directly for obtaining resources for production. It includes the cost of prices that are paid for the machines and raw materials, electricity bills, etc. These costs are treated as expenses.

2. Economic Costs

The economic cost is the combination of gains and losses of the products. This cost is mainly used by economists to compare one with another.

Classification based on the Purpose

1. Incremental Cost

Incremental costs are the changes in future costs and that will occur as a result after a decision is made.

2. Sunk Costs

Sunk costs are the costs that cannot be recovered after sustaining. It includes the amount spent on conducting research and advertising.

Types of Cost Concept based on Players and Variability

1. Based on Payers

Private cost implies the cost that is sustained when an individual produces or consumes something. The business person spends his/ her own private or business interests. The social cost is the cost to an entire society that results from a news event or a change in the policies.

2. In Terms of Variability

As the term predicts, fixed costs don’t change in the volume of output. These costs are constant even with an increase or decrease in the volume of services/ goods produced or sold. Variable costs, in simple words, are a cost that varies according to the outcome of the output. Higher production costs higher expenses and lower production costs lower expenses. If the production is more, the business will pay more and vice versa.

 

Did You know?

The Institute of Cost Accountants has constituted the Cost Accounting Standards Board (CASB) to procure suggestions and uniformity in Costing. The board has issued 24 standards to create a better knowledge of distinct components of cost and better procedures to be used. The idea of opportunity cost in the concept of the cost was first begun by John Stuart Mill, a major in Economics.

Consumer protection is the practice of securing buyers of goods and services, and the public, against illegal practices in the business. Consumer protection measures are frequently established by law. Similar laws are intended to assist businesses from engaging in fraud or specified illegal practices so as to realize a plus over challengers or to mislead consumers. They may also give fresh protection for the general public which may be impacted by a product (or its product) indeed when they aren’t the direct purchaser or consumer of that product. For example, government regulations may cause businesses to expose detailed information about their products — particularly in areas where public health or safety is an issue, similar as with food or motorcars.

Consumer protection is linked to the idea of consumer rights and to the confirmation of consumer associations, which help consumers make better choices in the business and pursue complaints against businesses. Realities that promote consumer protection include government associations ( similar to the Federal Trade Commission in the United States), tone-regulating business associations ( similar as the Better Business Divisions in the US, Canada, England, etc.), and non-governmental associations that endorse consumer protection laws and help to ensure their enforcement ( similar as consumer protection agencies and watchdog groups).

Consumer Protection Act 2019

The Consumer Protection Act safeguards the consumers and encourages the consumers to speak up against the insufficiency and about the flaws in the goods and services. This Act provides easy and fast compensation to the consumers’ grievances. If the traders and the manufacturers involved in the buying transaction practices any illegal trade in this matter then this act protects all the rights as a consumer.

What is The Consumer Protect Act?

The Consumer Protection Act of 2019 was introduced in the Lok Sabha on the 8th July 2019 by the Minister of Consumer Affairs, in regards to the Food and Public Distribution, Ram Vilas Paswan. It was passed by the Lok Sabha on 30th July in the year 2019 and this was later passed in the Rajya Sabha on the 6th of August in the year 2019. 

The consumer protection bill received its assent from President Ram Nath Kovind on the 9th of August, after which it got notified in the Gazette of India on the same 9th of August itself. The Act came into effect by 20th July of 2020, after which certain other provisions of the Act were established like the Central Consumer Protection Authority (CCPA) came into this effect from 24th of July in the year 2020. 

The features of the Consumer Protection Act focus on providing the customer more power by taking care of them and providing all the transparencies. While, a recent addition in the year 2020 in the month of September, the government declared a new draft which is known as ‘advertising code’ this gives the customer all kinds of protection against the false advertisements, moreover this code protects the customer from the celebrities or idol figures who try to fool the customers by doing all these paid promotions of their products and services. 

Consumer Rights in India 

Right to Safety:

Right to Safety means getting protected against the marketing of goods and services that are hazardous to the life and property of an individual. The purchased goods and services which are availed should not only meet their immediate needs but also meet their long-term needs as well. Also, consumers must be made aware of the ISI and AGMARK, etc. 

Right to Choose:

The right to choose means the right to be assured of the product they are buying. Right to Choose means the consumers are at full freedom to know about the competitive prices existing in the market and then buy the best product. This right is mostly exercised in a competitive market structure.  

Right to be Informed:

The right to be informed means the consumers must be made aware of the quality, quantity, potency, purity, standard, and price of the goods. This will act as knowledgeable protection of the customers against unfair trade practices. The consumers must avail their right of knowing all the details of the product and thus insist on getting all the information about the product or service before making a choice or a decision of their own. 

Right to Consumer Education:

This right means that they must acquire the knowledge and the skill to be an informed consumer throughout their life. Ignorance of knowing any product by the consumers, particularly the rural consumers, acts as the main reason for their exploitation. They should accurately know about their rights and must exercise them wisely. 

Right to be Heard:

Right to be heard means that the consumer’s interests must be heard properly. Their problem must receive all the due consideration at the right forums. The right to be heard also includes the right to be represented in the various forums which are formed to consider the consumer’s welfare. The Consumers should form the non-political and non-commercial consumers organizations, this can be given exact representation in these various committees which are formed by the Government and by other bodies in all the matters which are relating to the consumers.

Right to Seek Redressal:

This means the right to seek redressal against any unfair trade practices or by the unscrupulous exploitation of the consumers. This Right also includes the right to fairly settle for the genuine grievances which are submitted by the consumers. Consumers should also take the responsibility of making genuine complaints about their real grievances. The consumers can also take the help of other consumer organizations in seeking redressal for their grievances.

Central Consumer Protection Authority 

CCPA or Central Consumer Protection Authority, unlike other Councils. This is a type of commissioned body that is neither purely regulatory, advisory nor it is a policy-making body, this body is entirely adjudicatory and quasi-judicial in nature. The structure of the CCPA is also based on a central structure and besides this even provides for the creation of the regional offices, the Act itself does not mandate the creation of any State or any District Authorities on its own. The CCPA also comprises the Chief Commissioner, Commissioners, and a whole team of subject matter experts and professional bodies. Besides this, there also consists of an investigation wing that is being headed by a Director-General.

Central Consumer Protection Council

Under Consumer Protection Act, the Central Government gets to establish a Central Consumer Protection Authority that consists of the Minister in charge of the consumer affairs in the Central Government who is the Chairman and a such number of other official and non-official members, those who are representing other such interests as may be prescribed from time to time.

Under the Consumer Protection Council India, Consumer Protection Rules 1987. The membership of this Council is an accommodation to 150 members, the number includes the Central Minister in charge of the Consumer Affairs who acts as the Chairman. The term of this Council is a span of three years.

The council was formed in order to monitor the implementation of the recommendations of the Council, the Central Government which may constitute a standing working group from among the members of the council which comes under the Chairmanship of the Member Secretary of the Council.

The Council will conduct their meeting as and when it deems fit, but at least one meeting is to be conducted of the Council which shall be held at such time and place as the Chairman may think best.

Did You Know?

• Under the shed of the Consumer Protection Act, customers remain protected from hazardous goods. 

• It is the right of a customer to know all the information regarding the product.

• Consumer Education is given under Consumer Protection.

• A consumer can also demand a healthy environment under this Act.

• If you are a customer, then you can file your complaint from anywhere!

• A customer can also seek a hearing with video conferencing mode too.

• A customer also knows the reason for the rejection of his complaint.  

Thus, we see that the consumer protection council under the consumer law in India is an exact forum where the aggrieved customers can file their grievances and seek justice. This is indeed a relief to the customers, as without this facility they were easily exploited at the hands of the sellers. Also, with the establishment of this Act, all the sellers are cautious before they deliver any type of goods or services to the customers. 

Apart from this, the consumer protection Act 2019 pdf is attached below this content; students are advised for an in-depth study from the same.