Page 254 - DMGT306_MERCANTILE_LAWS_II

Unit 13: Consumer Protection Act

(iii) the services hired or availed of or agreed to be hired or availed of by him suffer from Notes
deficiency in any respect;

(iv) a trader or the service provider, as the case may be, has charged for the goods or for the
services mentioned in the complaint, a price in excess of the price—

 fixed by or under any law for the time being in force;
 displayed on the goods or any package containing such goods;
 displayed on the price list exhibited by him by or under any law for the time being in
force;
 agreed between the parties.
(v) goods which will be hazardous to life and safety when used are being offered for sale to the
public,—
 in contravention of any standards relating to safety of such goods as required to be complied
with, by or under any law for the time being in force;
 if the trader could have known with due diligence that the goods so offered are unsafe to
the public.
(vi) 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 [Section 2(1)(c)].
Consumer means any person who

(a) buys any goods for a consideration which has been paid or promised or partly paid and
partly promised, or under any system of deferred payment and includes any user of such goods
other than the person who buys such goods for consideration paid or promised or partly paid or
partly promised, or under any system of deferred payment when such use is made with the
approval of such person, but does not include a person who obtains such goods for resale or for
any commercial purpose; or

(b) hires or avails of any services for a consideration which has been paid or promised or partly
paid and partly promised, or under any system of deferred payment and includes any beneficiary
of such services other than the person who hires or avails of the services for consideration paid
or promised, or partly paid and partly promised, or under any system of deferred payment,
when such services are availed of with the approval of the first mentioned person but does not
include a person who avails of such services for any commercial purpose [Section 2(1)(d)].

!
Caution It has been clarified that the term commercial purpose does not include use by a
consumer of goods bought and used by him exclusively for the purpose of earning his
livelihood by means of self-employment.
Therefore, to be a consumer under the Act:

(i) the goods or services must have been purchased or hired or availed of for consideration
which has been paid in full or in part or under any system of deferred payment, i.e. in respect of
hire purchase transactions;
(ii) goods purchased should not be meant for resale or for a commercial purpose. Goods purchased
by a dealer in the ordinary course of his business and those which are in the course of his
business to supply would be deemed to be for resale; and

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