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Unit 2: The Consumer Protection Act

Notes
Example: The management of Excel Public School owned a swimming pool and offered
swimming facilities to the public on payment of certain fee. The management had engaged an
experienced coach for coaching people how to swim. One day, a boy of 14 years got drowned
and died while learning swimming. The father of the deceased boy claimed for relief. The school
management denied responsibility by stating that it had requisitioned services of a qualifi ed and
experienced coach. The coach also denied responsibility claiming that he had taken all possible
precautions, taken the boy out of water and removed water from his stomach.
The father of the deceased boy succeeded in his claim for relief. The school and the coach

were deficient in rendering service to the deceased. The admission to the swimming pool was
on payment of certain fees, therefore the complainant had hired the services of the school for
consideration. The father of the deceased is a consumer and the negligence of the coach amounts

to deficiency in service.
District Forum: ‘District Forum’ means a consumer Dispute Redressal Forum established under
clause (a) of Sec.9. This section provides that for the purposes of the Act a Consumer Disputes
Redressal Forum to be known as the ‘District Forum’ established by the State Government in

each district of the State by notification. The State Government may, if it deems fit, establish more
than one District Forum in a district.
Goods: ‘Goods’ under this Act shall have the same meaning as assigned to them under the Sale
of Goods Act, 1930. Accordingly, ‘Goods’ means every kind of movable property other than
actionable claims and money; and includes stock and shares, growing crops, grass and things
attached to or forming part of the land which are agreed to be severed before sale or under the
contract of sale [Sec.2(7) of the Sale of Goods Act, 1930].
Manufacturer: The expression ‘Manufacturer’ for the purpose of this Act, means any of the
following persons:
(i) A person who makes or manufactures any goods or part thereof.
(ii) A person who does not make or manufacture any goods but assembles parts thereof made
or manufactured by others. But, where a manufacturer dispatches any goods or parts
thereof to any branch office maintained by him, such branch office shall not be deemed to

be manufacturer even though the parts so dispatched to it are assembled at such branch
office and are sold or distributed from such branch offi ce.

(iii) A person who puts or causes to be put his own mark on any goods made or manufactured
by any other manufacturer.
National Commission: ‘National Commission’ means the National Consumer Disputes Redressal
Commission established under clause (c) of Sec.9. This section provides that there shall be
established for the purposes of this Act a National Consumer Disputes Redressal Commission

established by the Central Government by notification. The Government vide powers conferred
upon it under the said clause established a National Commission in 1987.
Example: A dealer in precious stones and gems had sent four parcels of gems by
registered post duly insured to a consignee in U.S.A., but the parcels did not reach the destination.
The investigation revealed that the parcels were either lost in transit or were stolen. The postal
authorities admitted their liability and made payment of postal charges in respect of each parcel.
The insured agreed to settle the claim. However, he insisted that the payment of the insured
amount should be made in U.S. dollars. The insurer denied their liability to pay in dollars to the
dealer. The dealer made a complaint to the National Commission.

LOVELY PROFESSIONAL UNIVERSITY 37