Ques. What are the salient features of Consumer Protection Act in India?

Ans. Salient features of consumer protection act are as follows:

Coverage of Items: This Act is applicable on all the products and services, until or
unless any product or service is especially debarred out of the scope of this Act by the
Central Government.
Coverage of Sectors: This Act is applicable to all the areas whether private, public or
cooperative.
Compensatory Nature of Provisions: Many Acts have been passed for the help of
consumers. Consumers enjoy the benefits of these Acts but if a consumer wishes the
Consumer Protection Act can provide extra help. As a result the nature of provisions of
this Act is compensating for the loss or providing extra help. Consumer is totally free to
enjoy the benefits provided in the Act.
Group of Consumer’s Rights: This Act provides many rights to consumers. These rights
are related to safety, information, choice, representation, redressal, education etc.
Effective Safeguards: This Act provides safety to consumers regarding defective
products, dissatisfactory services and unfair trade practices. So under the purview of
this Act there is a provision to ban all those activities which can cause a risk for
consumer.
Three-tier Grievances Redressal Machinery: Consumer courts have been established so
that the consumers can enjoy their rights. This Act presents Three- tier Grievances
Redressal Machinery:
(i) At District Level-District Forum
(ii) At State Level -State Commission
(iii) At National Level – National Commission.
Time Bound Redressal: A main feature of the Act is that under this, the cases are
decided in a limited time of period.
Consumer Protection Council: To favour consumer protection and to encourage
consumer’s awareness there is a provision in this Act to establish Consumer Protection
Councils.

Ques. Explain the doctrine of cavet emptor. Also narrate its exceptions.
Ans. Caveat Emptor Rule -
While purchasing goods buyer must be very careful, at his own interest, buyer has to
select such goods only which are not of defective nature. In case where buyer,
negligently purchases defective goods, he cannot repudiate the contract of sale. It is
caveat emptor law.
A case on this point is Ward Vs Hobbs. In this case a contract of sale gets formed
between A and B according to the terms of which A has to sell an animal from his farm
to B. Negligently B selects an animal which has been suffering from some sickness.
That sickness is characterized by propagation from one animal to the other and the
ultimate effect is death of the animal. It should be noted that the sickness is externally
visible. B, negligently selects such animal and as a result all animals present in B`s farm
comes across death. B sues A. Court decides that B is negligent, he cannot blame the
seller for his (A) own negligence and therefore B cannot claim any compensation. Thus
caveat emptor rule protects the seller. This rule is unfavorable to buyer.
Exceptions for Caveat Emptor Rule
The shelter of caveat emptor rule is not available to shelter on the following
occasions; When caveat emptor is not applicable buyer can repudiate the contract.
1. When Sale is need by means of description: When goods are sold on the basis of
description, the delivered goods must be in accordance with description. If it is not so,
seller’s fraudulent behavior can be observed and there is no ground to say that buyer is
negligent. Then caveat emptor rule is not applicable and buyer can repudiate the
contract.
.A case on this point is VorleyVsWhipp. In this case, there is a sale between A and B
according to which A has to sell his harvester to B. While selling A gives a lot of
description about the machine. There after B comes to know that the delivered machine
is not in accordance with given description. B Sues for repudiation of contract of sale.
Court decides that as delivered goods are not in accordance with given description,
caveat emptor rule is not applicable and hence buyer can repudiate the contract.
2. When sale is made by means of sample: When goods are sold on the basis of
sample, the delivered goods must be in resemblance with sample. Otherwise seller
cannot claim the shelter of caveat emptor rule.
Related case is Wallis VsPrat. In this case a contract of sale gets formed between A and
B according to which A has to supply English sain fain seeds. The contract is based on
samples. But A supplies giant sain fain seeds. Court decides that buyer can repudiate
the contract of Sale.
3. When purpose is mentioned: at the time of purchasing the goods if buyer
communicates the purpose for the sake of which he is purchasing the goods seller
should sell such goods only which are suitable to that purpose otherwise caveat emptor
rule is not applicable.
A case on the point is Priest VsLaste. In this case, B purchases a bottle from A. At the
time of purchasing the bottle the buyer says that it should be qualified for storage of hot
water. Thus here purpose is mentioned but the seller sells such a bottle which is not
qualified for storage of hot water. As a consequence buyer’s wife gets injured. Court
decides that buyer can claim compensation.
4. When concealment is made: In case where buyer conceals material facts and thus
fraudulently sells goods, then also caveat emptor rule is not applicable.
A case on this point is Smith Vs Green. In this case a contract of sale gets formed
between A and B according to which A has to sell an animal to B out of his (A`s) farm. B
selects an animal and request’s A to confirm that there is no any sickness to that
animal. Actually the animal has been suffering from some sickness and A conceals the
fact. There after it comes across death and court decides that B can get the amount
back.
5. When mis-representation is made: When seller sells the goods by giving
mis-representation, he cannot claim the protection of caveat emptor rule. Hence buyer
can repudiate the contract. Under first point VorleyVsWhipp is explained. In the same
case mis-representation or wrong description can be seen in connection with Harvester.

Ques. Define and discuss the difference between Condition and warranty under Sale of
Gods Act.
Ans.CONDITION :-
It is defined in the following words, "A condition is stipulation essential breach to the
main purpose of the contract, the breach of which give rise to a right to treat the
contract as repudiated."
So according the above definition it is clear that condition is very essential for the
performance of a contract. The breach of condition will be regarded as the breach of
the whole contract.
WARRANTY :-
Sales act defines the warranty in the following words, "A warranty is a stipulation
collateral to the main purpose of the contract the breach of which gives rise to a claim
for damages but not to a right to reject the goods and treat the contract as repudiated."
The above definition shows that for the implementation of a contract warranty is not
essential. For the breach of warranty only damages can be claimed.
Difference or Distinction Between Condition and Warranty
1. Difference In Importance :-
Condition : A condition is essential to the main purpose of a contract.
Warranty : Breach of warranty gives right to the party to claim the damage only.
2. Difference in Rights :-
Condition : Breach of condition gives right to the party to reject the contract.
Warranty : Breach of warranty gives right to the party to claim the damages only.
3. Superiority of Condition :-
Condition : A breach of condition may be treated as a breach of warranty.
Warranty : A breach of warranty may not be treated as a breach of condition.
4. Link With Contract :-
Condition : A condition has a direct link with the essential party of the contract.
Warranty : A warranty has no direct link with the essential part of the contract.

Ques.What is the difference between cheque and bill of exchange?

Ans.We can distinguish between cheque and bill of exchange by the following facts :
CHEQUE :-
1. It is always drawn on a specified banker.
2. It is immediately payable on demand without any grace.
3. It does not require acceptance.
4. Its drawer is not discharged by the holder's failure to present it in due time unless the
bank fails.
5. It may be crossed.
6. Notice of dishonor is not necessary when a cheque is not met.
7. No nothing and protesting is required.
8. The banker is protested if he pays a cheque under forged endorsement.
BILL OF EXCHANGE:-
1. It may be drawn on anybody including a bank.
2. It may be payable on demand or at a fixed date.
3. It requires acceptance unless it is payable on demand.
4. It is entitled to three days of grace.
5. Its drawer and endorsers are discharged from liability. If the holder fails to present it
to the acceptor at a due date.
6. It can never be crossed.
7. A notice of dishonor must be given.
8. Nothing and sometimes protesting is required.
9. No such protection is afforded to a drawee in case of bill.

Ques. Distinguish between bill of exchange and promissory note.

Ans.We can distinguish or difference between bill of exchange and promissory note by
the points :
1. Number Of Parties :-
Bill of exchange : There are three parties in the bill of exchange.
Promissory note : There are two parties in the promissory note.
2. Number Written By :-
Bill of exchange : It is written by the creditor.
Promissory note : It is written by the debtor.
3. Order And Promise :-
Bill of exchange : In a bill of exchange it is an order.
Promissory note : In a pro-note it is a promise to make the payment
4. Acceptance :-
Bill of exchange : It must be accepted by the drawee before.
Promissory note : It requires no acceptance.
5. DishonourNotice :-
Bill of exchange : In this case notice of dishonour must be given by the holder to the
concerned parties.
Promissory note : In case of promissory note there is no need to serve the notice to the
maker.
6. Protest :-
Bill of exchange : A foreign bill must be protested in case of dishonour.
Promissory note : Protect is not needed in case of pro-note.
7. In Sets :-
Bill of exchange : A foreign bill can be drawn in sets.
Promissory note : A pro-note cannot drawn in sets.
8. Liability :-
Bill of exchange : The drawer is liable only when the acceptor does not honour the bill.
Promissory note : The liability of pro-note maker is primary.
9. Payable To Bearers :-
Bill of exchange : A bill can be drawn if it is not drawn payable to bearer on demand.
Promissory note : A pro-note can not be drawn payable to the bearer.
10. Drawer and Payee :-
Bill of exchange : In this case drawer or payee may be the same person.
Promissory note : In case of pro-note the drawer can not become the payee.
11. Drawer's Position :-
Bill of exchange : In this case the drawer of accepted bill stands in an immediate
relation with the acceptor and not the payee.
Promissory note : The drawer of the pro-note stands immediate relations with the
payee.
12. Conditional :-
Bill of exchange : The acceptance of the bill may be conditional with the holders
consent.
Promissory note : A pro-note cannot be made conditional.
13. Presentment :-
Bill of exchange : In this case provision relating to presentment for acceptance is
applicable.
Promissory note : Such provision is not applicable in case of promissory note.

Ques. Explain the term negotiable instrument. What are its essential characteristics?
Ans. Negotiable Instruments :-
The word "Negotiable" means transferable by delivery and the word instruments means
written documents. It entitles a person to a certain sum of money. In simple words we
can say it is a written document which is transferable from one person to another by
delivery.
According to contract act it is defined as , "A negotiable instrument means a promissory
note, bill of exchange or cheque payable by order or bearer."
Example :- Cheques, Bill of Exchange and Promissory Notes are the important examples
of negotiable instruments.
Characteristics Of Negotiable Instruments :-
Following are the important characteristics of negotiable instruments :
1. In Writing :-
It is the basic condition of the negotiable instrument that it is always in writing. It can
not be verbal.
2. Unconditional :-
It is an unconditional instrument if any condition is attached then it can not be called
negotiable instrument.
3. Transferable :-
It can easily transferable from one person to another. In these instruments right
of ownership passes either by delivery or by endorsement.
4. Payable On Demand :-
The amount of the instrument is payable on demand or at any predetermination future
time.
5. Payable In Money :-
The amount must be written on the instrument and it is always payable in terms of
money.
6. Payable To The Bearer :-
The amount written on it is payable to the bearer or to a specified person.
7. Payment of Debt :-
It can be very easily used for the payment of debt. It is very simple and convenient
method of payment.
8. Right of Recovery :-
A cheque or Note gives the right to the creditor to recover the written amount from the
debtor. He can recover this amount by himself or he can transfer this right to another.
9. Better Title :-
If there is a defect in the title of the previous holder it does not affect the holder in due
course. So it is abetter little than others.
10. Exception of General Law :-
In case of transfer of property the general concept of law is that "No body can transfer a
better title than that of his own."
But in case of instrument this law does not apply. A negotiable instrument even got in
good faith from thief is better title.
11. Specified Amount :-
It is also a characteristic of negotiable instrument that specified and definite amount is
written on the instrument.
is not applicable in case of promissory note.

Ques. Who is unpaid seller? Discuss the rights of unpaid seller against the goods and
under what circumstances he looses the lien?
Ans. UNPAID SELLER :
Seller :- A person who sells the goods or agrees to sell the goods is called seller.
Unpaid :- It means payment is not made or without payment.
In simple words, "Unpaid seller" means a person who has sold the goods for a price but
price has not been paid to him.
Sales act defines the "unpaid seller" in the following words :
Unpaid Seller Is A Person :-
i. To whom the whole price has not been paid or tendered.
ii. And where a bill of exchange or other negotiable instruments has been accepted by
him as a condition on which it was received has not been fulfilled by reason of dishonor
of the instrument or otherwise.
It is also declares that any person who is in the position of a seller like agent is also
considered seller.
Rights Of Unpaid Seller or Lien Of Unpaid Seller :-
He has following important rights against goods.
1. Right of Lien :-
For the recovery of price an unpaid seller has a right to keep the goods in his own
possession.
Example :- Mr. Hunny sells the goods to Mr. Abhijit for Rs. 10 lac. Mr. Abhijit pays 5 lac
and promises to pay the remaining 5 lac after two month. Mr. Hunny has a right of lien
on the goods.
2. Right of Stopping :-
If buyer becomes insolvent, an unpaid seller has a right of stopping the goods in transit.
Example :- "X" sells 100 bales of cotton to "Y" but delivery will be two stages. "X" delivers
50 bales first. Later on he comes know that "Y" has become insolvent. "X" can stop
delivery of bales in transit.
3. Right of Resale :-
An unpaid seller is considered the owner of the goods until he is not paid by the buyer.
So he has a right to sell his goods subject to few conditions.
Example :- "X" sells one horse to "Y" on credit. "Y" does not pay. "X" can resell to other
person.
4. Right of Delivery :-
The unpaid seller has a right of with holding the delivery of goods where the property in
the goods has not passed to the buyer.
5. Right of Claim :-
The unpaid seller has also a right to claim the buyer for the prices of goods.
i. Suit For Price :- If the goods have passed to the buyer and buyer refuse to pay the
price, the seller can sue for price.
Example :- "M" sells the goods to "Y" for Rs. 5 lac. "Y" refuses to pay. "M" can sue for
price.
ii. Suit For Damages For Non Acceptance :- If buyer refuses to accept and pay for the
goods, the seller has the right to sue him for damages non-acceptance. He can recover
only damages and not full price.
iii. Suit For Interest & Special Damages :- The unpaid seller can recover the reasonable
interest on the unpaid price goods sold. The seller can also sue the buyer for special
damages where both the parties are aware of such loss at the time of contract.
Termination Of Lien :-
An unpaid seller loses the lien in the following cases :
1. Termination By Waiver :-
If an unpaid seller himself waives his right of lien then it will be terminated.
2. Goods in Buyer's Possession :-
When a buyer or his agent obtains the possession for goods lawfully, unpaid seller lien
terminates.
3. Does Not Reserve The Right of Disposal :-
When unpaid seller fails to reserve the right of disposal of the goods at the times of
delivery to the bailee for transferring it to the buyer. Then this right of lien terminates.