Skip to main content

What are the grounds on which complaints can be made under Section 2(1) (C) of the Consumer Protection Act, 1986? Explain with examples.

The Consumer Protection Act, 1986 provides for serving of summons through Speed Post, Courier or even by Fax. In case, the party refuses to accept the notice, the Consumer Court can declare that notice is duly served on the party and can proceed further.

Section 2 imposes civil liability in tort for damage caused wholly or partly by a defect in a product. Liability falls on:
  • Producers;
  • Persons holding themselves out as producers, for example by selling private label products under their own brand ("own-branders"); and
  • Importers into the European Union (EU) for commercial sale.

Liability is strict and there is no need to demonstrate fault or negligence on behalf of the producer. Liability cannot be "written out" by an exclusion clause (s.7)

Damage includes (s.5):
  • Death;
  • Personal injury;
  • Damage to property, including land, provided that:
    • The property is of a type usually intended for private use;
    • It is intended for private use by a person making a claim; and
    • The value of the damage is more than £275;
but damage to the product itself is excluded, as are other forms of pure economic loss.

Comments

Popular posts from this blog

Discuss the relationship between economics and management functions. How does the former contribute to the latter?

Economics and Management are ideal intellectual partners, each particularly fitted to strengthen and cross-fertilize the other. Economics provides the broader understanding of economic activity within which all organizations function; management in turn analyses the character and goals of that functioning. The management economics is often a subsection of the economic science and thus in broader sense a special form of the social, culture and Geisteswissenschaften. Like the economic science it is based in principle on the fact that most goods are limited and must by the participants be managed. It describes the economic functions of the enterprise within a national economy. In addition above all the optimal organization of the factors of production belongs apart from the company targets and the economical functions. In the broader sense also all households are enterprises.

Case Study: A perfect competition

In 1997, over $700 billion purchases were charged on credit cards, and this total is increasing at a rate of over 10 per cent a year. At first glance, the credit card market would seem to be a rather concentrated industry. Visa, MasterCard and American Express are the most familiar names, and over 60 per cent of all charges are made using one of these three cards. But on closer examination, the industry seems to exhibit most characteristics of perfect competition. Consider first the size and distribution of buyers and sellers. Although Visa, Mastercard and American Express are the choices of the majority of consumers, these cards do not originate from just three firms. In fact, there are over six thousand enterprises (primarily banks and credit unions) in the US that offer charge cards to over 90 million credit card holders. One person's Visa card may have been issued by his company's credit union in Los Angeles, while a next door neighbour may have acquired hers from a Miami B

Case Study: Bhopal Gas Tragedy - Communication Failures #1

On 3 December 1984, a runaway reaction had occurred in a storage tank of methylisocyanate (MIC), which was used to manufacture a pesticide. The valves of the tank had burst, and a cloud of poisonous gas had escaped. The winds carried it to nearby shanty towns and the populous city of Bhopal, where thousands of people either died in their sleep or woke and died while fleeing. Those who survived suffered from burning eyes and lungs. Local medical facilities were not equipped for the disaster, and over the next few weeks thousands more died. Due to production problems, the plant was under a great deal of pressure to cut costs. A number of shortcuts had thus been taken with such items as crew training, staffing patterns and maintenance schedules. The original procedure called for upto two years of training for employees in critical superintendent capacities, but the plant operators had received about a month long training, using classroom materials developed in the US and printed in Eng