Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
1986
Chapter 12
Need for Consumer Legislation
• Most of the manufacturers and traders have been
adopting unfair trade practices for the purpose of
promoting sale, use or supply of any goods, or for
the provision of any services.
– "Defect" means
• Expert Opinion
• Manufacturer's records
• Government and Industry Standards
• Post accident changes
• Report of Governmental and other agencies
• Past record
• Expert Opinion :
– Complainant hires a technical expert to testify
about the defective characteristics of a product.
– A manufacturer has to retain highly qualified
experts to rebut the findings of complainant's
expert and also educate defense lawyer so well that
he can call the bluff of complainants expert.
• Manufacturer's records :
– If manufacturer's own employees expressed
concern about product safety it can be extremely
persuasive that product defect existed.
Government and Industry Standard :
Past record :
– Complainant may show that past record of the
product proves his claim.
– Manufacturer has the obligation of proving that
other accidents were not similar.
• Who is liable :
– Who is liable to pay compensation is indeed an
important question.
– The liability extends from manufacturer to
retailer or in other words to everyone in the
chain of distribution.
– Even an occasional seller may be held liable for
his own negligence to the extent he should have
known or discovered that the product was
dangerous to users.
Deficiency
• Deficiency means any
– fault,
– imperfection,
– shortcoming or
– inadequacy in the quality,
• nature and manner of performance
– which is required to be maintained by or
– under any law for the time being in force or
– has been undertaken to be performed by a person in
pursuance of a contract or otherwise in relation to any
service [Section 2(l)(g)].
Deficiency
• Examples
– Lack of facilities promised by Housing Board is
deficiency. Non-allotment of shares is not
deficiency in service [L. C. Chandgotiya v.
Northern Leasing & Industries Ltd - 1991 (2) CPJ
19 (Raj)].
– Failure of insurance company to settle claim
without sufficient cause is deficiency (Premlata v.
National Insurance Co. - 1991 CPJ 423 Raj).
Excessive Price
• It is for complainant to establish that the trader has
charged for the goods mentioned in the complaint
a price in excess of the price -
– the goods mentioned in the compliant suffer from one or more defects;
– the services mentioned in the complainant suffer from deficiency in any respect;
– a trader has charged for the goods mentioned in the complainant a price in excess
of the price fixed by or under any law for the time being in force.
– goods which will be hazardous to life and safety when used are being offered for
sale to the public.
– services which are hazardous or likely to be hazardous to life and safety of the
public when used, are being offered by the service provider which such person
could have known with due diligence to be injurious to life and safety.
Who can make a Compliant?
• A complaint in relation to any goods sold or delivered, or
any service provided may be filed with quasi-judicial
organs constituted under the Consumer Protection Act by
any of the following :
• Note:
– 'Recognised Consumer Association' means any voluntary consumer
association registered under the Companies Act, 1956 or any other law
for the time being in force.
To Whom the Complaint is to be made
• (i) giving false or misleading facts disparaging the goods, services or trade
of another person
Unfair Trade Practices