E-LESSON-6,

IDOL Institute of Distance and Online Learning ENHANCE YOUR QUALIFICATION, ADVANCE YOUR CAREER.

M.B.A 2 All right are reserved with CU-IDOL BUSINESS ENVIRONMENT AND REGULATORY FRAMEWORK Course Code: MBA605 Semester: First SLM UNITS : 6 E- LESSON NO : 4 www.cuidol.in Unit-4 (MBA605)

POLITICO- LEGAL ENVIRONMENT OBJECTIVES INTRODUCTION 33 Student will be able to : In this unit the various topics were discussed such as Understand the concept of Consumer protection Explain the rationale of consumer protection Acquaint the various rights of the Customer Get a picture of the legal environment for consumer protection Equip the knowledge of Environment protection act Discuss the significance and salient features of the Environment Protection Act, 1986 Practically practice the various Consumer and Environmental rights. www.cuidol.in Unit-4 (MBA605) INSTIATlUl TrEigOhFt DarISeTrAeNsCeErvAeNdDwOitNhLCINUE-ILDEOALRNING

TOPICS TO BE COVERED 4 > Consumer Protection Act, 1986 > Changing dimensions of these laws and their impact on business > Financial Environment > Composition of Indian Money market and Capital market > Role of Commercial Banks > SEBI and Capital Market Reforms www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Consumer Protection Act, 1986 5 Introduction : ❖ Enacted by the Parliament in 1986 ❖ To provide for better protection of interest of consumers. ❖ To make provisions for the establishment of Consumer Councils and other authorities for the settlement of consumer disputes. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Consumer Protection Act, 1986 6 Who is a Consumer? ❖ Consumer is one who • Buys any goods for a consideration and includes a hire-purchaser; • Any user of such goods for consideration but excludes one, who obtains for re-sale or for commercial purposes; • Hires a service for consideration and includes a beneficiary of such service, if availed of with the approval of the hirer. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Deficiency - Service 7 ❖ ‘Deficiency’ means a fault, imperfection, shortcoming or inadequacy in quality, nature, or manner of performance than is required. ❖ ‘Service’ includes service in connection with banking, financing, insurance, transport, processing, supply of electrical and other energy, boarding or lodging, housing construction, entertainment, amusement or purveying of news and other information but does not include any service free of charge or under a personal contract. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

What is a Complaint ? 8 ❖ An allegation in writing by a complainant that: ✓ An unfair or restrictive trade practice is practiced by trader or service provider ✓ Goods bought or to be bought or services hired or to be hired suffered from any deficiency ✓ Trader or service provider has charged excess price ✓ Goods and services are hazardous or are likely to be hazardous to life and safety. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Who is a Complainant ? 9 • A consumer • Any voluntary consumer association registered under the Companies Act or any other law • Central or State Government, if it makes a complaint • One or more consumers having same interest • In case of death of a consumer, his legal heir or representative. “A Consumer Dispute arises when a complaint is denied or disputed.” www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Machinery under the Act 10 ❖ Central Consumer Protection Council to be established by Central Government ❖ State Consumer Protection Council to be established by State Government ❖ District Consumer Protection Council to be established by State Government for every district Consumer Dispute Redressal Machinery ❖ There are Consumer areas at the District, State and National level ❖ District Forum – At the District level ❖ State Commission – At the State level ❖ National Commission – At the National level www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Pecuniary Jurisdiction 11 ❖ Forum where complaints can be entertained ✓ Depends on value of goods and service and compensation claimed ❖ Limits are : ✓ District Forum : not exceeding Rs.20 lakhs ✓ State Commission : exceeds Rs.20 lakhs but does not exceed Rs.1 Crore ✓ National Commission : exceeds Rs.1 Crore. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Territorial Jurisdiction 12 ❖ Territorial Jurisdiction lies in the court of the place ❖ Where the opposite party resides or carries on business or personally works for gain ❖ Where the cause of action wholly or partly arose. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Disposal of disputes 13 ❖ District Forum may • ask the opposite party to remove the defect, • replace the goods with new goods and free from defect • to return to the complainant the price of goods or • to pay any amount as compensation ❖ Appeals to be preferred within thirty days • from the order of the District Forum to the State Commission and • from the order of the State Commission to the National Commission • Can entertain appeals beyond thirty days • on sufficient cause shown for the delay It has to be disposed within ninety days from its admission. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Time Limit for filing complaint 14 ❖ Within two years from the date on which the cause of action arises ❖ Even where the time limit expires, the complaint can be taken up provided complainant is able to satisfy the Forum or Commission about the reasonableness in the delay ❖ The delay for every single day has to be explained. . www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

What are the rights of a ‘consumer’? 15 ❖ Right to Safety ❖ Right to Information ❖ Right to Choice ❖ Right to be Heard or Right to Representation ❖ Right to Seek Redressal ❖ Right to Consumer Education www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

1. Right to Safety 16 ❖ According to this right the consumers have the right to be protected against the marketing of goods and services which are hazardous to life and property, this right is important for safe and secure life. This right includes concern for consumer’s long term interest as well as for their present requirement. ❖ Sometimes the manufacturing defects in pressure cookers, gas cylinders and other electrical appliances may cause loss to life, health and property of customers. This right to safety protects the consumer from sale of such hazardous goods or services. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

2. Right to Information 17 ❖ According to this right the consumer has the right to get information about the quality, quantity, purity, standard and price of goods or service so as to protect himself against the abusive and unfair practices. The producer must supply all the relevant information at a suitable place. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

18 3. Right to Choice ❖ According to this right every consumer has the right to choose the goods or services of his or her likings. The right to choose means an assurance of availability, ability and access to a variety of products and services at competitive price and competitive price means just or fair price. ❖ The producer or supplier or retailer should not force the customer to buy a particular brand only. Consumer should be free to choose the most suitable product from his point of view. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

4. Right to Heard or Right to Representation 19 ❖ According to this right the consumer has the right to represent him or to be heard or right to advocate his interest. In case a consumer has been exploited or has any complaint against the product or service then he has the right to be heard and be assured that his/her interest would receive due consideration. ❖ This right includes the right to representation in the government and in other policy making bodies. Under this right the companies must have complaint cells to attend the complaints of customers. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

5. Right to Seek Redressal 20 ❖ According to this right the consumer has the right to get compensation or seek redressal against unfair trade practices or any other exploitation. This right assures justice to consumer against exploitation. ❖ The right to redressal includes compensation in the form of money or replacement of goods or repair of defect in the goods as per the satisfaction of consumer. Various redressal forums are set up by the government at national level and state level. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

6. Right to Consumer Education 21 ❖ According to this right it is the right of consumer to acquire the knowledge and skills to be informed to customers. It is easier for literate consumers to know their rights and take actions but this right assures that illiterate consumer can seek information about the existing acts and agencies are set up for their protection. ❖ The government of India has included consumer education in the school curriculum and in various university courses. Government is also making use of media to make the consumers aware of their rights and make wise use of their money. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Impact of the Consumer Protection Act 22 on business ❖ The Consumer Protection Act is the primary piece of legislation that enables consumers to make personal injury claims. So if you’re held liable, you could be taken to court and faced with a hefty compensation bill. ❖ However, claims against you can’t be made in certain circumstances. These include if the product was stolen or never intended for public sale, if the product wasn’t defective when you supplied it, or if scientific or technical knowledge wasn’t advanced enough to know of a defect at that time. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Impact of the Consumer Protection Act 23 on business ❖ Some business insurers offer protection if you’re taken to court and will help you handle the finances if that’s the case. ❖ Ultimately, if you make your own products from scratch then you are liable for any damage caused to customers. If you sell products made by someone else, they are liable for damage caused. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Environment Protection Act, 1986 24 ❖ The EPA (Environment Protection Act), 1986 came into force soon after the Bhopal Gas Tragedy and is considered an umbrella legislation as it fills many gaps in the existing laws ❖ The Act requires the States to get clearance from the Centre toflag off projects www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Environment Protection Act, 1986 25 ❖ How is ‘Environment’ defined under Indian Law? ❖ According to Section 2(a) of the Environmental ProtectionAct,1986, ‘Environment’ includes a) Water, air and land b) The inter-relationship which exists among and between, i) water, air, land, and ii) human beings, other living creatures, plants, microorganisms and property www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Environment Protection Act, 1986 26 ❖ The ACTS formulated by the government, devote to environment protection and development. ❖ This Act may be called the Environment (Protection) Act, 1986. ❖ It extends to the whole of India. ❖ It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and for different areas. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Objectives of Environment Protection Act 27 ❖ Providing for the protection and improvement of the environment. ❖ Preventing environmental pollution in all its forms. ❖ To tackle specific environmental problems that are peculiar to different parts of the country. ❖ To co-ordinate the activities of the various regulatory agencies already in existence. ❖ To appoint environment officers to check environmental pollution. ❖ To improve the quality of life by protection of environment. ❖ Establishing environmental laboratories. ❖ To protect the forests and wildlife in the country www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Scheme of the Act 28 The Environmental act, 1986 has 26 sections and it has been divided into four chapters relating to: 1. Preliminary 2. General powers of the central government 3. Prevention, control pollution and abatement of Environmental 4. Miscellaneous www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

CHAPTER- I Preliminary 29 Short Titles, Extend and Commencements : * The environmental protection act(1986) enacted under the article 253 of the Indian constitution. * To protect and improve environmental quality, control and reduce pollution 1. The act may be called as Environmental (protection) Act,1986 2. It extends to whole of India 3. Central government may by notification in the official gazette, appoint and different dates may be appointed for different provisions of this act for different areas www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

CHAPTER- II 30 GENERAL POWERS OF THE CENTRAL GOVERNMENT 1. Power Of Central Government To Take Measures To Protect And Improve Environment 2. Appointment Of Officers And Their PowersAnd Functions 3. Power To Give Directions www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

CHAPTER- II 31 GENERAL POWERS OF THE CENTRAL GOVERNMENT 4. RULES TO REGULATE ENVIRONMENTAL POLLUTION The Central Government may, by notification in the Official Gazette, make rules in respect of the following matters (a) the standards of quality of air, water or soil for various areas and purposes; (b) the maximum allowable limits of various environmental pollutants (including noise) . (c) the procedures and safeguards for the handling of hazardous substances; (d) the prohibition and restrictions on the handling of hazardous substances in different areas; (e) the prohibition and restriction on the location of industries . (f) the procedures and safeguards for the prevention of accidents which may cause environmental pollution and for providing for remedial measures for such accidents. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

CHAPTER- III 32 Preventions, Control, and Abatement of Environment pollution 1. Persons carrying on industry operation, etc., not to allow emission or discharge of environmental pollutants in excess of the standards 2. Persons handling hazardous substances to comply with procedural safeguards 3. Furnishing of information to authorities and agencies in certain cases 4. Powers of entry and inspection 5. Power to take sample and procedure to be followed in connection therewith www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

CHAPTER- III 33 Preventions, Control, and Abatement of Environment pollution 6. ENVIRONMENTAL LABORATORIES The Central Government may ❖ establish one or more environmental laboratories ❖ recognize one or more laboratories or institutes as environmental laboratories to carry out the functions under this Act 7. GOVERNMENT ANALYSTS ❖ The Central Government may by notification in the Official Gazette, appoint or recognize such persons as it thinks fit and having the prescribed qualifications to be Government Analysts for the purpose of analysis of samples of air, water, soil or other substance sent for analysis to any environmental laboratory www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

CHAPTER- III Preventions, Control, and Abatement of Environment pollution 3 4 8. REPORTS OF GOVERNMENT ANALYSTS ❖ Any document purporting to be a report signed by a Government analyst may be used as evidence of the facts stated therein in any proceeding under this Act. 9. PENALTY FOR CONTRAVENTION OF THE PROVISIONS OF THE ACT AND THE RULES, ORDERS AND DIRECTIONS ❖ Whoever fails to comply with or contravenes any of the provisions of this Act be punishable with imprisonment of five years with fine which may extend to one lakh rupees, or with both. ❖ If the failure or contravention continues beyond a period of one year the offender shall be punishable with imprisonment of seven years www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

CHAPTER- III Preventions, Control, and Abatement of Environment pollution 3 5 10. OFFENCES BY COMPANIES When a offense is committed by company then the company as well as the person directly in charge and responsible of conducting the business of a company shall be deemed to be liable for to punishment. 11. OFFENCES BY GOVERNMENT DEPARTMENTS Provides for offences committed by govt. departments Sec. 16(1) – Head of the department shall be deemed to be guilty. Sec. 16(2) – attributes liability to other officers responsible for commission of offences. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Who can make complaint? 36 ❖ A complaint under this act can be made by 1. Central government or any other authority of that government 2. Any person who has given notice of not less than 60 days of the alleged offence and his intentions to make complaint to the central government or Govt. Officer www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Environment Protection 37 ❖ Environmental protection is a practice of protecting the environment, on individual, organizational or governmental levels, for the benefit of the natural environment and (or) humans. ❖ Protection of the environment is needed due to various human activities. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Environmental Pollutants 38 www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Burning fossil fuel 39 ❖ Burning fossil fuels in cars and power stations releases so2 and other green house gases. ❖ So2 dissolve in rain – acid rain. Acid Rain ❖ Acid rain damages trees and pollutes rivers and lakes ❖ Results in erosion of buildings and statues. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

Pesticides 40 Deforestation www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

DEFINITIONS ▪ \"Environment\" includes water, air and land and the inter- relationship which exists among and between water, a4ir1 and land, and human beings, other living creatures, plants, micro-organism and property; ▪ \"Environmental Pollutant\" means any solid, liquid or gaseous substance present in such concentration as may be, or tend to be, injurious to environment; ▪ \"Environmental Pollution\" means the presence in the environment of any environmental pollutant; ▪ \"Handling\", in relation to any substance, means the manufacture, processing, treatment, package, storage, transportation, use, collection, destruction, conversion, offering for sale, transfer or the like of such substance; ▪ \"Hazardous Substance\" means any substance or preparation which, by reason of its chemical or physico- chemical properties or handling, is liable to cause harm to human beings, other living creatures, plant, micro- organism, property or the environment; ▪ \"Occupier\", in relation to any factory or premises, means a person who has, control over the affairs of the factory or the premises and includes in relation to any substance, the person in possession of the substance; ▪ \"Prescribed\" means prescribed by rules made under thisAct. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

SUMMARY ❖ The above topics are helpful to give the knowledge of consumer protection act and environmental protection act. 42 ❖ The topic consumer law will enhance the knowledge about consumer rights for after purchase product effects. ❖ Consumer protection act will provide the knowledge of all claims available for consumers after complaint. ❖ The topic Environmental law will help to enhance the knowledge about all the issues related with environment related with business. ❖ Environmental law will help to provide the facts for understanding the business requirements or compulsions related to environmental issues. ❖ Both topics will provide the aspects of Government prospectus in regard of social awareness and serving the society with these laws. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

MULTIPLE CHOICE QUESTIONS 1. Consumer Protection Act is applicable to : C) Specific goods and services 43 A) Immovable goods D) All goods and services B) Movable goods 2. The jurisdiction of a state commission is : C) Above 1 corer A) Below 20 lakhs D) None of the above B) 20 lakhs to 1 corer 3. Appeal against the district forum can be done in _________________ A) State forum C) National forum B) High court D) Supreme court 4. The world as World Environmental day is celebrated on: A) December C) 5 November B) 1 June D) 14 August 5. The EPA contains: C) 26 Sections A) 25 Sections D) 14 Sections B) 12 Sections Answer : 1-d, 2-b, 3-a, 4-b, 5-c www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

FREQUENTLY ASKED QUESTIONS Q 1. What Is The Meaning Of Consumer Law? 44 Ans. Consumer protection law or consumer law is considered an area of law that regulates private law relationships between individual consumers and the businesses that sell those goods and services. Consumer protection covers a wide range of topics, including but not necessarily limited to product liability, privacy rights, unfair business practices, fraud, misrepresentation, and other consumer/business interactions. For further detail Refer to SLM . Q 2. Who can make the Complaint in Environmental Law ? Ans. Complaint under this act can made by: ❖ The Central Government or any other authority by that Government or, ❖ Any person who has given notice of not less than 60 days of the alleged offence and of his intention to make complaint to the Central Government or the authorized officer. For further detail Refer to SLM Q3. What Is The Meaning Of Consumer Protection? Ans. Consumer protection laws are federal and state statutes governing sales and credit practices involving consumer goods. Such statutes prohibit and regulate deceptive and Unconscionable advertising and sales practices, product quality, credit financing and reporting, debt collection, leases, and other aspects of consumer transactions. For further detail Refer to SLM www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

REFERENCES 45 ❖ Baumel, W.J.,A.S. Blinder and W.M.Scarth (1985), Economics:Principles and Policy, Academic Press Canada, Toronto, Chapters-26, 34, 38, 40 and 41. ❖ Planning Commission, (1997) Approach paper to the Ninth Five Year Plan, Government of India, New Delhi Chapter-1. ❖ Swamy, D.S. (1994), The Political Economy of Industrialization, Sage Publications, New Delhi, Introduction, Chapter-1, and Conclusion. ❖ Dasgupta, A and Sengupta, N.K. 1989 Government and Business, Vikas Pulishing House, New Delhi. ❖ Nadkarni, M.V., A.S. Seetharamu and Abdul Aziz, 1991, India – The Emerging Challlenges, Sage India. ❖ Krishna, Sumi, 1996, Environmental Politics, Sage India. www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL

46 THANK YOU For queries Email: [email protected] www.cuidol.in Unit-4 (MBA605) All right are reserved with CU-IDOL