Question : What is the maximum compensation that can be awarded by the National Consumer Disputes Redressal Commission?
Option 1: Rs. 10,000
Option 2: Rs. 1 lakh
Option 3: Rs. 10 lakhs
Option 4: No limit on compensation
Correct Answer: No limit on compensation
Solution : The correct answer is (d) No limit on compensation.
The National Consumer Disputes Redressal Commission (National Commission), which is the highest consumer court in India, does not have a maximum limit on the compensation that can be awarded to consumers. The National Commission has the authority to award compensation based on the nature of the complaint, the extent of loss or harm suffered by the consumer, and other relevant factors.
The absence of a specific limit on compensation allows the National Commission to make decisions based on the merits of each case and ensure that consumers are adequately compensated for any losses or damages they have suffered due to unfair trade practices, product defects, deficient services, or other violations of consumer rights. This absence of a specific limit ensures that consumers have the opportunity to receive fair and appropriate compensation based on the specific circumstances and gravity of their grievances.
Question : The three-tier system under the Consumer Protection Act consists of:
Option 1: District Consumer Disputes Redressal Forum, State Consumer Disputes Redressal Commission, and National Consumer Disputes Redressal Commission
Option 2: District Consumer Disputes Redressal Forum, District Consumer Protection Authority, and State Consumer Protection Commission
Option 3: State Consumer Disputes Redressal Forum, District Consumer Disputes Redressal Commission, and National Consumer Protection Commission.
Option 4: District Consumer Disputes Redressal Commission, State Consumer Protection Commission, and National Consumer Protection Authority.
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