Page 57 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Corporate Legal Framework

Notes (c) Separation of health and safety standard setting from inspection, permitting

new flexibilities for inspection.
(d) Separation of health risk analysis from risk management, thereby fulfi lling a
World Health Organization principle.

(e) Reduced criticism of conflict of interest because the same department was
responsible for promoting and regulating an industry (fi sheries).
8. A more integrated and comprehensive approach (gate-to-plate) to trichinosis in
swine, tuberculosis in cattle and zoonotic diseases such as salmonella enteritidis in
poultry.
9. Improved capacity to respond to outbreaks of food-borne illness and threats to the
food system presented by medicated feeds and antibiotic residues.
10. Separation of health and safety standard setting from inspection, permitting new

flexibilities for inspection.

11. Separation of health risk analysis from risk management, thereby fulfilling a World
Health Organization principle.
12. Reduced criticism of conflict of interest because the same department was responsible

for promoting and regulating an industry (fi sheries).
Question
Analyse the kind of agency it is. (Hint: It is a self-standing agency with a separate employer
status and more fi nancial fl exibilities.)

2.5 Summary

The earlier principle of “Caveat Emptor” or “let the buyer beware” which was prevalent
has given way to the principle of “Consumer is King”.

The origins of this principle lie in the fact that in today’s mass production economy where
there is little contact between the producer and consumer, often sellers make exaggerated
claims and advertisements, which they do not intend to fulfi ll.

This leaves the consumer in a difficult position with very few avenues for redressal.
The onset on intense competition also made producers aware of the benefi ts of customer
satisfaction and hence by and large, the principle of “consumer is king” is now accepted.

The need to recognize and enforce the rights of consumers is being understood and several
laws have been made for this purpose. In India, we have the Indian Contract Act, the Sale of
Goods Act, the Dangerous Drugs Act, the Agricultural Produce (Grading and Marketing)
Act, the Indian Standards Institution (Certification Marks) Act, the Prevention of Food

Adulteration Act, the Standards of Weights and Measures Act, the Trade and Merchandise
Marks Act, etc which to some extent protect consumer interests.
However, these laws required the consumer to initiate action by way of a civil suit, which
involved lengthy legal process proving, to be too expensive and time consuming for lay
consumers.
Therefore, the need for a simpler and quicker access to redressal to consumer grievances
was felt and accordingly, it lead to the legislation of the Consumer Protection Act, 1986.
‘Service’ means service of any description which is made available to potential users and
includes the provision of facilities in connection with banking, fi nancing.

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