Question : Assertion: The District Consumer Disputes Redressal Forum is the first level of the three-tier system under the Consumer Protection Act.
Reason: It is meant to handle consumer complaints where the value of goods and services does not exceed Rs. 20 lakhs.
Option 1: Both the assertion and the reason are correct, and the reason is the correct explanation of the assertion.
Option 2: Both the assertion and the reason are correct, but the reason is not the correct explanation of the assertion.
Option 3: The assertion is correct, but the reason is incorrect.
Option 4: The assertion is incorrect, but the reason is correct.
Correct Answer: Both the assertion and the reason are correct, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both the assertion and the reason are correct, and the reason is the correct explanation of the assertion.
This assertion is correct. The Consumer Protection Act does indeed establish a three-tier system for the resolution of consumer complaints, with the District Consumer Disputes Redressal Forum serving as the first level.
The reason is also correct and provides a correct explanation for the assertion. The District Consumer Disputes Redressal Forum is primarily meant to handle consumer complaints where the value of the goods or services involved does not exceed a certain monetary limit, which is typically Rs. 20 lakhs or a similar threshold. It is at this level that lower-value consumer complaints are addressed.
Question : Assertion: The State Consumer Disputes Redressal Commission is the first level of the three-tier system under the Consumer Protection Act.
Reason: It handles consumer complaints where the value of goods and services exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore.
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