Chapter 5

LAW OF CONTRACTS AND CONSUMER PROTECTION

Learning Objectives:
After reading through this chapter, the reader will be able to:

• Define the term contract

• State the difference between agreement and contract
• Discuss the essential elements of a contract
• Discuss the procedure for forming a contract
• Define the term free consent and coercion
• State the objectives of consumer protection law
• Detail out the structure for implementing the consumer protection law in the 1986 Act
• Discuss the changes made in the consumer protection act 2019
• Define the term tort giving two examples
• Explain the concept of law of torts and state how it differs from other laws
• Explain the meaning of damnum sine injuria and injuria sine damnum

5.1 INTRODUCTION
This chapter deals with some important aspects of laws of interest. The idea is not to present the laws
from a legal or lawyers' point of view but to understand some of the features of these laws. Law of
contracts is a law coming from the British era (in 1872). As times changed, two sections of this law
have been removed from this and made into separate laws. Law of Torts is an uncodified law and
depends on case laws and judgments for hearing and deciding the cases. Another important aspect of
interest is consumer protection. The Consumer Protection Act 1986 has been specially enacted to
protect the interests of the consumers of both Goods and Services. This Act has now been replaced by
the Consumer Protection Act 2019 with some modification in the earlier act considering the new ways
of buying goods and marketing like E-commerce, teleshopping and multi-level marketing.

5.2 INDIAN CONTRACT LAW 1872

The Indian Contract Law 1872 is a British Law made applicable to the Indian State in 1872. The law
as made applicable at that time had 266 sections. Over a period of time, in addition to amendments as
required by demand of situations, some sections were removed from the Act. The sections originally
included are:
1 to 75 — General provisions
76 to 123 — Sales of Goods
124 to 147 — Indemnity/Guarantee
148 to 181 — Bailment and Pledge
182 to 238 — Agency
239 to 266 — Partnerships
Two of these categories, 76 to 123 (Sale of goods) and 239 to 266 (Partnerships) were removed from
the Contract Law and have been made into separate laws.
Agreement and Contract: All contracts are agreements but all agreements are not contracts. An
agreement enforceable by law is a contract. Enforceable by law means legal remedy is available in
case of any breach of contract to the aggrieved party.
Essential elements: Some essential elements of a valid contract are:

• At least two (or more parties) must participate in the contract (One makes an offer and the
other(s) accept it)
• Offer made is accepted by the other party
• Acceptance is by free consent (and not by force or any form of coercion)
• Both parties agree to have a legal relationship
• Agreement must be on potentially possible actions
• Capacity or eligibility for entering into contract (not a minor or of unsound mind etc.)
• Objective of contract must be lawful
• Both the parties understand the contract in the same way
• Contract cannot be on illegal activities
• Legal formalities, as required, are completed like written and signed agreements, registration,
payment of dues, witnesses etc.)

Proposal and Acceptance:

(a) When one person signifies to another his willingness to do or to abstain from doing anything, with
a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal;
(b) When the person to whom the proposal is made signifies his assent thereto, the proposal is said to
be accepted. A proposal, when accepted, becomes a promise;
The consideration or object of an agreement is lawful, unless—

• it is forbidden by law; or
• is of such a nature that if permitted, it would defeat the provisions of any law; or
• is fraudulent; or
• involves or implies injury to the person or property of another; or
• the Court regards it as immoral or opposed to public policy.

5.3 FORMATION OF CONTRACTS

Sections 2 to 6 of the act deal with this aspect:
a) Making a proposal: to do or not to do something. Person to whom the proposal is made signifies
his assent, the proposal is accepted; Person making the proposal is the ‘promisor’ and person
accepting it is the ‘promisee’. When the promisee acts according to the desire of the promisor, it is
‘consideration for the promise’. Every promise in consideration of each other is an agreement.
Agreements not enforceable by law is said to be void. Legally enforceable agreements are
contracts.
b) Formation of contract involves communicating the proposal and acceptance of the proposal.
c) A proposal can be revoked by communication to the other party or if the acceptance is not made in
time as specified or by nonfulfillment of conditions by any of the parties.
5.4 ESSENTIALS OF CONTRACTS
Sections 10 to 23 deal with this aspect of contracts.
a) All agreements are contracts if the if they are made with the free consent of the parties competent
to contract, object of contract is lawful, for a lawful consideration and are not declared void. All
legal requirements like contract in writing, registration of documents and signature of witnesses
need to be complied with.
b) Competent to contract means the person(s) of legal maturity, of sound mind and is not disqualified
by any law.
c) Sound mind means the person capable of understanding the contract and is able to form rational
judgments about its effect on his interests.
d) Consent by two or more persons means that they agree upon some thing with the same
understanding on all its aspects.
e) Free consent happens when it is free of any coercion, undue influence, fraud, misrepresentation or
mistake.
f) Coercion is committing any unlawful act forbidden by Indian penal laws.
g) Undue influence (in entering into a contract) happens when one of the parties hold such powers as
to dominate the decision of the other by apparent authority or the other party is of weal disposition.
h) Fraud means making a suggestion that something is true when it is not, concealing facts, making
promises with no intention of doing it or by doing anything fraudulent.
i) Misrepresentation means positively asserting something as true when it is not, breach of duty to
gain some advantage and causing someone to make a mistake.
j) An agreement arrived at by coercion is voidable; same is the case for fraud and misrepresentation.
k) The agreement is also voidable if both the parties make mistake in understanding substance of the
agreement.
l) Lawful object of any agreement means that the object is not specifically forbidden in law.
(Example: agreement to supply prohibited drugs or make forbidden weapons)

5.5 SAFETY IN PRODUCTS

It is important to recognize that there is much greater awareness about safety today than earlier.
Engineered products can cause harm to individuals (such as shock from an electrical appliance), harm
to a community (such as the breaching of a dam), economic loss (due to fi re in an automobile), and
environmental degradation (due to the construction of dams). The risk involved can be in the short
term like an economic loss or in the long term as in environmental degradation.
Individuals can be at harm when an engineering product’s designs are faulty or when the materials
used are defective. A mobile phone that explodes due to a defective battery is an example. A person
who buys an electric iron and gets an electric shock from it has reasons to complain.
The construction of a dam, which causes displacement of people due to water storage and also results
in environmental degradation, is an example of an engineering product that can cause both economic
loss and suffering to people. However, a dam is an essential part of our lives and necessary for the
benefit of the community. The ethical aspect is involved in the way we deal with the risks. Dams are
necessary, but the risks must be properly accounted for.
When we discussed the skill sets of engineers in Chapter 4, we included many points that are not part
of the curriculum of an engineering course. Their importance becomes evident when we look at the
designing and implementation of engineering products. Engineering needs to have a human face to
look at the safety aspects. The risks, if any, take place in the future. The engineer needs to ascertain
the risks and provide measures for their avoidance. This involves innovative and creative abilities.
This is more so when a new product is designed. There is no past experience to fall back upon in such
a case. The engineer needs to think creatively, and perceive and provide for the likely risks. This is the
crux of engineering design from an ethical point of view.

Risk & Cost

A safe design involves building in safety features, which of course involves some cost. Also, some of
the obvious risks, as in the case of a dam where rehabilitation of people displaced is a humane aspect,
need to be considered. There are many misconceptions about cost. Some of hem are as follows:
• Designing for safety is a costly affair. While the substance of this statement is true, the perception
needs to be clarified. Providing safe products is ethical and mandatory. In addition, it is the duty of
the manufacturer to ensure safety of the product and he/she cannot compromise safety considering
the expenses involved in providing for it. The engineer must always look at the cost aspect even if
he/she does not want to make provisions for safety. For one, designing a safe product will not be as
costly as modifying the design later to build in safety features. The loss of the company’s credibility
due to unsafe products will also prove to be very costly, affecting the business in the future. Even a
redesigned safe product can be economical in the long run considering the lifecycle of the product.
• As the safety of the product is not known beforehand, it can be ascertained only during the testing
stage. Many products do not show lapses in safety until they are tested. Design for safety must be
initiated in advance because some harm could occur during the testing of the product.
• Customers may misuse the product and come to harm, which cannot be accounted for. This is again
a false notion. We have to take into account the customer while designing the product. A computer,
for example, is used by many people who are not engineers and are completely unaware of its
intricacies. However, a personal computer is so designed that it does not depend upon the
knowledge of the user. In addition to proper documentation for the use of a consumer, the product is
so designed and helplines are provided so that the consumer does not find it difficult to use. Safety
devices in automobiles and other equipment can help prevent accidents even if the operators make
mistakes.
That laxity in safe product preparation can be costly is easily seen. The case of the Delhi Metro Rail
Corporation (DMRC) is an example. The DMRC has received recognition for efficiency, timely
completion of projects, and safety. However, the collapse of a girder causing a lot of damage has put a
question mark on its credibility. The overturning of a crane pressed into service for removing the
girder has further damaged the image of the company. Whether the mishap is due to faulty design or
any other cause does not matter. There are a number of questions being raised about the company’s
methods and procedures.
Engineer’s Responsibility for Safety
Engineers are responsible for designing, manufacturing/constructing, and controlling quality of safe
products. They must be aware of this responsibility and the ethics involved in their functioning. While
a corporate leader may think of finances, costs and profit, and bottom lines, engineers need to think
about safe products and the likely risks. The engineers involved in the design of products must be sure
that the product satisfies the minimum standards laid down for product safety. Such standards are well
known and available for perusal. Engineers must constantly refer to safety standards while designing
products. Designing a conceived engineering product is an iterative process. The design is iterative
because some assumptions are made in the design. The design is repeated with the data from the first
design to make better assumptions. Alternative solutions and an optimum solution may be available
and can be found. This calls for greater ingenuity and creativity on the part of engineers to look for
alternate solutions that may be safer. It is a tedious process to arrive at alternative solutions and
evaluate each one of them based on technical criteria and safety standards. The best solution must be
arrived at after due consideration of all aspects of the design. As an example, consider the following.
The Australian Competition and Consumer Commission (ACCC) enforces mandatory product safety
and information standards and bans on unsafe goods declared under the Trade Practices Act. Fair
Trading Offices also have an important role in product safety within their own states. The following
guidelines have been prescribed for product safety:

Product Safety
Product suppliers and manufacturers have an obligation to ensure that only safe products are
marketed. This can be done by providing clear instructions for use, including
• warnings against possible misuse;
• being aware of and meeting industry and mandatory standards;
• developing product recall plans and procedures including effective communication strategies to
the public (e.g., advertisements in papers);
• incorporating safety into product design;
• developing appropriate safety standards through product improvement;
• implementing a quality assurance programme, which includes consumer feedback; and
• responding quickly to safety concerns that arise.
While designing a product, engineers must first consider the current accepted engineering practice.
Design methods and materials available for use keep changing with time, and with advanced
computational techniques, the possibility of looking at alternatives becomes easier. Secondly,
engineers need to constantly update themselves on the design practices. In addition, they can update
themselves through training programmes available in their area of work. They must recognize that
there is a need for continuous learning, as learning never stops (even after leaving college) and this
alone can give them a competitive edge.
The third consideration that engineers need to keep in mind is that the product is likely to go into the
hands of a user not conversant with the intricacies of engineering design. Therefore, it is a good idea
to prepare and give a product information document to the consumer. At the same time, the pitfalls
and risks created by not-so-well-informed consumers must be taken into account. The consumer may
misuse the product and come to harm despite the documentation, demonstration, and advice given on
the use of the product. This requires engineers to foresee and provide for all kinds of risks associated
with the product. Great ingenuity, study, and knowledge about the likely consumers are needed to
make a safe product.5.3
Designing for Safety
In the realization of a product, the point at which the question of safety must be considered is the
design stage. It is at this stage that the product takes a physical form and many of the intricacies of the
practical aspects of the conceived product are seriously considered. This involves product detailing,
analysis and design, prediction or assessment of possible risks, and incorporating safety features in the
product. In assessing the possible risks, the consumers of the product need to be considered. There is
no doubt that everyone wants a safe product. Engineers are responsible for ensuring that the product is
safe for the consumer. Safety does cost more but will be worth it, and so cost should not be a prime
consideration at this stage.

Product Costs

The cost of a product can be divided into two parts. The product has a primary cost due to the
materials involved, production cost, overhead cost, etc. If you draw a graph between the primary cost
and safety, you will see that the cost increases as the safety components are increased (refer to Fig.
5.1a). This costing is straightforward as all engineers are familiar with the costing of known
components. On the other hand, there are secondary costs, which include downtime, warranty
liability, loss of customer goodwill, etc. These increase with low-safety designs (refer to Fig. 5.1b).
The costing of these is difficult as the cost cannot be exactly estimated and has to be surmised based
on experience. The combination of these two costs is the total cost of the engineering product (refer to
Fig. 5.1c). The total product cost curve is a sagging curve with a minimum appearing somewhere in
between. This shows that the minimum cost is obtained when the primary cost and secondary cost
increases balance each other after a certain point ‘L’. Absolute safety cannot be built in nor is it
attainable. The highest acceptable risk needs to be evaluated and the costing done at this or a higher
level.

Probability of Safety and Risk

Safety and risk are both probability based. As shown in Fig. 5.2, we can make curves of statistical
distribution of loads on a machine component and the load carrying capacity of that component. Most
design codes now have a probabilistic method of strength design. Figure 5.2(a) shows a situation
when the loads on the component and the capacity of the component are such that the capacity is more
and the two curves do not overlap. The curves are asymptotic but can be terminated at a certain
confidence level. The peaks of the curves in the two cases are the expected values, while the load and
capacity may vary and reach the two extremes. The situation shown in Fig. 5.2(a) is a safe design.
Figure 5.2(b) shows a situation where, while the expected values seem to indicate a safe design, the
possible values at a certain probability level show an unsafe zone due to the overlap between the two
curves. This is a danger zone and can lead to possible failure.
With increasing consumer activism and awareness, faulty designs are likely to lead to much higher
secondary costs by way of litigation and replacement costs. The product safety standards in India are
presently not very satisfactory. The Bureau of Indian Standards has product standards for only a few
products such as electrical appliances, but many countries have very stringent product safety
standards and marketing any product not satisfying those standards is punishable.

5.6 CONSUMER PROTECTION

You often hear in business conferences that “consumer is king.” If consumer is king, why does he
need protection? Many practices by companies, sales personnel are unethical and fraudulent. Some of
the reasons for the vigorous steps taken by governments of many countries for consumer protection
are because of the following:

• Advertisements making tall and fraudulent claims on products and services

• The goods and services supplied are not the same as what is advertised and promised
• Sales personnel act very consumer-friendly only till they effect a sale; they do not respond
afterwards
• Many provisions in the warranty or product information are not explained to the consumer
• Lot of information in fine print is not generally studied in detail by the consumer and also not
explained to him; consumer feels cheated later on.
• Consumer desirous of seeking legal remedies finds the process very costly and time
consuming.
• Consumers not being aware of their rights and remedy available in case they feel cheated by
business entities.
Consumer protection became a key element of fair and ethical business practices and many laws were
enacted and remedial structures were set up for the purpose. We briefly look at salient aspects of
consumer protection.

5.6.1 Product Safety Standards

Almost all countries have product safety standards. The objectives of standardization are to:

• Ensure quality of goods

• Ensure uniformity (compatibility and interoperability) of goods by different manufacturers
• Ensure safety in goods supplied to consumers
• Enable certification of goods by standards organization of different countries
Three types of standards are generally considered

• De facto standards followed by convention and use

• De jure standards that are enforceable by law and regulations
• Voluntary standards that are available for the user to decide their quality and use
Products having certification by standards organizations have greater acceptance in the market though
they may not necessarily be true all the time. Standardization deals with materials, processes,
dimensions, test procedures, permitted variability etc. Standardization helps manufacturers and
consumers by

• Guaranty quality of a manufactured product

• Improving productivity of business as the standards can reduce time by standardizing process
without any confusion
• Uniformity and predictability by standardized processes
• Creating brand value for products
• Customers get better products and services

Some details of standards organization in some countries are given below.

a) USA: USA has a consumer product safety commission established under the consumer product
safety act. The objectives of the commission are to:

• To protect the public against unreasonable risks of injury associated with consumer products;
• To assist consumers in evaluating the comparative safety of consumer products;
• To develop uniform safety standards for consumer products and to minimize conflicting State
and local regulations; and
• To promote research and investigation into the causes and prevention of product-related
deaths, illnesses, and injuries

The web site of CPSC states: “CPSC is charged with protecting the public from unreasonable risks of
injury or death associated with the use of the thousands of types of consumer products under the
agency's jurisdiction. Deaths, injuries, and property damage from consumer product incidents cost the
nation more than $1 trillion annually. CPSC is committed to protecting consumers and families from
products that pose a fire, electrical, chemical, or mechanical hazard. CPSC's work to ensure the safety
of consumer products - such as toys, cribs, power tools, cigarette lighters, and household chemicals -
contributed to a decline in the rate of deaths and injuries associated with consumer products over the
past 40 years.”
There are many acts passed to ensure safety in all consumer products. These can be seen at cpsc.gov.
b) Australia: The Australian Competition and Consumer Commission is authorized to enforce
mandatory product safety and information standards. This is as per the Consumer and Competition
Act (2010). The general principles are:

• Any one selling products to Australian consumers in physical stores or on-line should ensure
that the products satisfy the Australian Consumer Law
• All manufacturers and suppliers are mandatorily required to comply with the Australian
Safety Standards
• Selling products not complying with safety standards is illegal and invites penalties
Businesses are required to:

• Ensure mandatory levels of safety in products

• Ensure that the products are tested to ensure safety
• Ensure that products do not cause harm when used in a reasonable manner and reasonable
misuse
Product safety is ensured by:

• providing clear instructions for use, including warnings against possible misuse
• being aware of and meeting industry and mandatory standards
• developing product recall plans and procedures including effective communication strategies
to the public (eg. advertising)
• incorporating safety into product design
• developing appropriate safety standards through product improvement
• implementing a quality assurance program which includes consumer feedback
• responding quickly to safety concerns that arise.
There are two types of mandatory product standards:
*Safety standards - goods must comply with particular performance, composition, contents, methods
of manufacture or processing, design, construction, finish or packaging rules.
*Information standards - prescribed information must be given to consumers when they purchase
specified goods (e.g. labelling for cosmetics, tobacco products and care labelling for clothing and
textile products).
c) European Union: European Union is a union of 29 countries in Europe who adopt standards
developed at the Union level for compatibility and acceptability across all countries. There are
National Standard Boards in countries who adopt the union standards and delete those that are in
conflict.
European standards are adopted by one of the three European Standardisation Organizations:
• European Committee for Standardisation (CEN)
• European Committee for Electro-technical Standardization (Cenelec)
• European Telecommunications Standards Institute (ETS)
Businesses and consumers are helped by compliance to standards in many ways:
 • Building consumer confidence
• Ensures high level of safety and quality for consumers
• Help consumer health
• Protecting the environment
• Open up markets for better accessibility
• Ensuring Compatibility and interoperability

d) India: Bureau of Indian Standards (BIS) is the National Standards Body of India established under
the BIS Act 2016 for the harmonious development of the activities of standardisation, marking and
quality certification of goods and for matters connected therewith or incidental thereto. BIS has
helped in the following through standardisation, certification and testing.
• providing safe reliable quality goods;
• minimising health hazards to consumers;
• promoting exports and imports substitute;
• control over proliferation of varieties etc.
To protect the interests of consumers as well as the industry, BIS is involved in various activities as
given below:
• Standards Formulation
• Product Certification Scheme
• Compulsory Registration Scheme
• Foreign Manufacturers Certification Scheme
• Hall Marking Scheme
• Laboratory Services
• Laboratory Recognition Scheme
• Sale of Indian Standards
• Consumer Affairs Activities
• Promotional Activities
• Training Services, National & International level
• Information Services
The Bureau publishes a number of standards related to products, processes and services.

5.6.3. Product Information

Product information is mandatory under consumer protection acts of different countries. The present
times witness a global market for many products. Product information has thus to satisfy customers
across the world. Product information is given in a booklet or a leaflet to the consumer. Product
information includes a user manual that informs the user of the correct use of the product. The
following features are common:
Multi-lingual: As the product gets marketed worldwide, product information is given in many
languages. Even items considered local today have instructions in many languages. Many spices,
packaged foods, frozen foods have instructions given in many languages. It is mandatory to give
ingredients, manufacturing and expiry dates and storage information.
Clarity: Clarity comes from step-by-step detailing of assembling and use. The user must be able to
read and put the product to use in many instances. Some products do need installation and
commissioning by a qualified engineer.
Illustrations: Figures, photographs or diagrams are commonly used for clarity. Japanese firms are
known to use a lot of illustrations in their user manuals.
Technical details: Many customers may not understand the technical details like power requirements
in terms of voltage and frequency of power supply. Power connections used are also different in
different countries. Technical details must be explained to the consumer at the time of purchase.
Precautions: Customers need to be told the correct use, storage, transportation and other precautions
to be taken while using the equipment. Many times customers are told not to open the product to
check as there may not be any parts that are serviceable by users. Warnings against possible misuse
should be given clearly in terms of ‘don’t’ lists.
Simple troubleshooting: Most companies give some simple checks that the consumer can undertake
before rushing with complaints but generally advise them to call a qualified technician mandatory
declarations. In many products, radiation levels may be important as in smart phones. These
declarations are to ensure that the product satisfies such requirements of the country where it is sold.
Medium for product information: Product information can be provided through a variety of media.
• Printed: The most common form is the written or printed form. This is used for small or large
amount of information. As there is a need to move towards a paperless, alternate medium, other
forms are becoming popular.
• E-versions: E-formats for catalogues and product information are very common now-a-days.
Many user manuals are downloadable from the Internet. Product help (for use) is also many
times provided.
• Combination mode: A combined form using paper and e-versions are also provided. A small
product information booklet can be provided with detailed user manuals provided in the e-
format. The choice depends upon the product and extent of detailing of information.
• Video clips: These are becoming popular both as advertising material and for giving product
information through demonstration. They can be useful for people who need such a mode of
information and can see a CD again as per need.
Product information management is a new area that helps in marketing and selling of products. This
requires the creation of a central product database. This can be used then to supply information to a
variety of users in different places and in a form suitable to them. The information can be used to print
catalogues and place information on web sites or for other people as per their needs. Information
made available in this form helps to market and sell products through a variety of distribution
channels and modes.
Product information management systems are useful to:
• Create a central database of a large number of products
• Preparation of electronic catalogues
• Get product information in hard copy form
• Cater to different geographic locations in local language
• Global access to marketing and sales personnel
• Facility for making changes on product modification and maintenance of records

5.6.4 Consumer Protection

As mentioned in the beginning, ‘Consumer is king’ is the common refrain among business managers.
Consumers can make or break a product. If consumer is the king, why does he/she need protection?
This is probably because consumers get cheated by businesses i) with spurious products, ii) by not
offering any services after an item is sold and iii) sometimes even supplying unsafe products.
Consumer activism was unheard of earlier. At present, consumer protection is legally enforced by
enacting consumer protection laws. Consumer protection is applicable to products and services.
Almost all countries have such laws.
A consumer is one who purchases goods or services by paying for it and for personal use. A consumer
can be cheated in many different ways:

• Product not conforming to the specifications advertised or told to the consumer at the time of
purchase
• Not informed of actual pricing or cost of accessories necessary to operate the product.
• Spurious product being supplied as a branded product.
• Many things in fine print not explained to the consumer
• Overcharging for the product or service
• High cost of replacement parts
• Absence of appropriate maintenance service or high service charges
• Supplying old refurbished product as original and new
With consumer complaints mounting about many products and services, thinking about consumer
rights and laws to protect them became imperative. It is also in the interest of the business to ensure
that consumer remains satisfied about any product or service. Consumer rights can be generally stated
as:
Safe product: Consumer is entitled to receive a safe product that does not cause any harm during use.
Safety has already been highlighted in the earlier discussion as well. An electrical product like an iron
or washing machine that gives an electrical shock to the user is definitely an unsafe product.
Similarly, many children’s toys need to be so designed as to be safe for the type of use that children
generally do. No toxic material should be used in making the product. Even if the children bite or
press the toy on their face, no harm should result. Depending upon the type of product, many safety
considerations should go into the design of the product. Consumers can also ask for certification that
ensures quality and safety. Many goods are purchased for use over a long period of time. The product
must be able to give reasonably good and safe service over the expected use by the consumer.
Product Choice: The availability of goods/service at reasonable price is a right of the consumer.
Competition in the market generally ensures variety of choices and fair prices for the consumer.
Monopoly by any company for a particular good or service will affect availability and fair pricing. If
you take the case of automobiles, four decades ago, there was very little choice. There were two car
brands (Ambassador and Fiat) and two two-wheeler brands (Bajaj and Lambretta). Availability was
very much restricted and the models did not advance technologically. Today, we have many, many
brands of cars (entry level, mid-size, luxury segment) and consumer has a great choice. Due to
competition, there are enough discounts and freebies that the companies are ready to give away.
Choice and free availability are consumer rights.
Product Information: It has been discussed earlier. Product information has to be clear and accurate
and in sufficient detail to enable the consumer to make an informed decision about purchase and use.
This is generally done by advertising through a variety of media, through product brochures and
product labeling. The consumer has the right to get all the information about the product and it must
be available to him from people trying to sell the product/service to him/her. The product quality,
service requirements and availability, cost and yearly payments, precautions in use etc. are important
for the consumer to decide about purchase. Many consumers fall for high-pitched advertisements and
buy goods which finally prove to be highly unsatisfactory. Consumers have to be on guard and the
protection laws are meant to help him get justice. In certain areas, where public health and safety are
involved, stringent requirement of product information is mandatory. All the ingredients need to be
disclosed in food items and the manufacturing date and expiry period are to be clearly specified.
Consumer grievance and redressal: When a consumer has purchased a product, it is quite possible
that the product malfunctions or the consumer has problems with it. There must be a mechanism by
which his grievances are heard and if required appropriate action is taken to address the same.
Generally, retailers act only as selling points and the consumer complaints are to be dealt with by the
company people only. Toll free numbers, local service centre contact details and the person to contact
are invariably required by the customer in case he has any complaints. The company should ensure a
strong follow-up action plan with the customer at least during the warranty period. Customers have a
right to be heard and the grievances addressed and set right in good time.
Consumer Education: Consumer education is important to get an informed and active consumer
community. Consumer education is the responsibility of the government, consumer activist groups
and the business itself. Essentially, consumer education educates the consumers about their rights,
about various goods and services, prices, quality and durability, trade practices and also about being
an ethical consumer.
Consumer education needs to promote critical thinking, problem solving, and action. The objectives
of consumer education are:

• Gain knowledge to act as informed consumers. For example, knowledge of consumer rights
• Develop an understanding of society's function as a whole and the specific role of consumers.
For example, the understanding of the role of companies in the economic system; the role of
the government in society and the role of consumer organizations.
• Master skills to function as informed and responsible consumers. For example, the methods
and procedures for complaint redressal; spotting sales gimmicks and using products
knowledgeably.
• Appreciate the importance of being an informed consumer.
• Act as informed, educated and responsible and ethical consumers.

Generally consumer education focuses on developing understanding about buying quality goods at
low prices, and avoiding marketing and sales gimmicks in the marketplace. The focus should be on
maximizing personal benefits at minimum cost. Consumer education also needs to focus on being an
informed and ethical consumer.

• Learn to buy only in absolute need; must be able to ask informed questions.
• Consumer education gives the consumer knowledge and skills to demand their rights and
ensure that their voices are heard.
• Consumers must be aware of the impact of their actions on others, particularly the
disadvantaged.
• Consumers should make an informed choice of buying goods and services that do not harm
the environment or violates basic human and animal rights.
• Possible to be effective by forming consumer groups; groups are more effective to fight for
consumer rights.

5.6.5 Consumer Protection Acts: Consumer protection acts addresses the rights of consumers given
above. The objectives of the Consumer Protection Act are to:

• Give a legal status to consumer rights

• Facilitate formation of consumer organizations
• Provide a forum for the consumers to go to with their complaints
• Provide a structure for speedy redressal of grievances
• Give the consumer a speedy but simpler and cost-effective means to get his complaints
resolved
We will briefly see the consumer protection laws in many countries including India.
USA: The Federal Trade Commission has a Bureau of Consumer Protection with the objective of:

• Stopping unfair deceptive and fraudulent business practices

• Receive complaints from consumers and conduct investigations
• Promote competitive business environment
• Prosecute companies and people breaking the law
• Developing rules to ensure fair trade practices
• Educating consumers and businesses about theur rights and duties
European Union: In 2012 the European Commission adopted the European consumer agenda that
identifies the key measures needed to empower consumers and to maximize their participation. The
agenda outlines the strategic vision on consumer policy with 62 action points grouped around 4 pillars
of
• promoting consumer safety
• enhancing knowledge of consumer rights
• strengthening the enforcement of consumer rules
• integrating consumer interests into key sectorial policies
As a long-term objective, the Commission also works to empower consumers through
• choice of product/service
 • information about product/service
• awareness of consumer rights and means of redressal

Australia: The Australian Consumer Law sets out consumer rights that are called consumer
guarantees. These include your rights to a repair, replacement or refund as well as compensation for
damages and loss and being able to cancel a faulty service.
Guarantees: Under the Australian Consumer Law, when you buy products and services they come
with automatic guarantees that they will work and do what you asked for. If you buy something that
isn't right, you have consumer rights.
Repair, replace, refund: If a product or service you buy fails to meet a consumer guarantee, you have
the right to ask for a repair, replacement or refund under the Australian Consumer Law. The remedy
you're entitled to will depend on whether the issue is major or minor.
Cancelling a service: Under the Australian Consumer Law, you have certain rights to cancel a service.
Compensation for damages & loss: You can seek compensation for damages and losses you suffer
due to a problem with a product or service if the supplier could have reasonably foreseen the problem.
This is in addition to your repair, replacement or refund rights.
Warranties: Under the Australian Consumer Law, automatic consumer guarantees apply to many
products and services you buy regardless of any other warranties suppliers sell or give to you.

India: Consumer Protection Act (1986) is the main legislation to protect the interests of consumers in
India. In addition to detailing the consumer rights and consumer empowerment, the act provides for
quasi-judicial structures for speedy and less-costly processes for grievance redressal for consumers.
Earlier, consumer awareness was less. Also the only forum for redressal of complaints was the normal
judicial system. Consumers were unwilling to register complaints due to the high cost and extreme
delay in getting justice. The Consumer Protection Act recognizes the rights of consumers as:

• Right to be protected against marketing of goods and services that are hazardous to life and
property
• Right to be informed about the quality, quantity, standard, and price of goods or services so as
to protect the consumer against unfair trade practices
• Right to receive assured access, wherever possible, to a variety of goods and services at
competitive prices
• Right to be heard and to be assured that consumers interests will receive due consideration at
appropriate forums.
• Right to seek redressal against unfair trade practices.
• Right to consumer education

The consumer protection act seeks to protect the interest of consumers against deficiencies or defect
in product or service. The act applies to only individual consumers purchasing goods/services for
personal use and applies to all goods and services unless specifically mentioned otherwise.
Consumer Protection Act, 1986 was enacted to facilitate quick redressal of consumer grievances by
avoiding long-drawn litigation and court fees. A structure is created from the district level to National
Level for smoother, simpler and quicker functioning of the system. The essential idea is to help the
consumer and supplier to negotiate and arrive at a consensus to solve the problems of the consumer.
The Act covers all goods and Services (unless exempted specifically) and covers public, private and
co-operative sectors. Consumer courts provide relief only to goods and services bought for personal
use and does not cover items meant for commercial use.

5.7 CONSUMER PROTECTION ACT 2019

We have outlined the consumer protection act 1986 giving some salient features. This act has been
replaced by the Consumer Protection Act 2019 which came into effect in 2020. While many features
remain the same, there are some significant changes which only will be discussed here.
The Consumer Protection Act 2019 (CPA 2019) is given in 8 chapters (31 sections) as:
CHAPTER I PRELIMINARY
CHAPTER II CONSUMER PROTECTION COUNCILS
CHAPTER III CENTRAL CONSUMER PROTECTION AUTHORITY
CHAPTER IV CONSUMER DISPUTES REDRESSAL COMMISSION
CHAPTER V MEDIATION
CHAPTER VI PRODUCT LIABILITY
CHAPTER VII OFFENCES AND PENALTIES
CHAPTER VIII MISCELLANEOUS
In 1986, consumers in general used to go to physical stores and purchase goods or services by paying
a price. By 2019, the purchase methods have considerably changed with a number of E-commerce
platforms having come into existence. In addition, telemarketing and multi-level marketing became
common. The CPA 2019 takes into account this change also.
The Act provides:

• Enhanced protection to consumers from fraudulent or unfair trade practices;

• Covers consumers who purchase from online platforms/telemarketing or multilevel
marketing;
• Makes it easier for consumers to make a complaint against goods or service provider allowing
e-filing of complaints and online fighting of cases by video conferencing
Consumer: In CPA 2019, a consumer is defined as:

(i) 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
(ii) hires or avails of any service 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
service 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 service for any commercial purpose.
Consumer Rights: CPA 2019 lists the rights as:
(i) the right to be protected against the marketing of goods, products or services which are
hazardous to life and property;
(ii) the right to be informed about the quality, quantity, potency, purity, standard and price of
goods, products or services, as the case may be, so as to protect the consumer against unfair
trade practices;
(iii) the right to be assured, wherever possible, access to a variety of goods, products or services at
competitive prices;
(iv) the right to be heard and to be assured that consumer's interests will receive due consideration
at appropriate fora;
(iv) the right to seek redressal against unfair trade practice or restrictive trade practices or
unscrupulous exploitation of consumers; and
(v) the right to consumer awareness;
While the consumer is the person who buys it for a consideration for his own use or use by a house
member, a complainant going to make a complaint may be:
• Consumer individually
• Consumer associations
• Central or state Governments
• Two or more persons having common interest
• Legal heir of a consumer in case of his death
A complaint is generally made in written forming the case of
• Defective product or deficient service
• Unfair or restricted trade practice
• Excess charge or pricing
• Selling goods hazardous to health
Consumer Dispute Redressal Agency (CDRA): The new act has a name change for these authorities
and their jurisdiction has also been changed. There are three levels in which thee agencies function -
district, state and national.
District Consumer Forum: At the district level, the redressal forum will have three members:
president and two members (at least one of the two must be a woman). The President must be person
qualified to become a district judge.
The jurisdiction of this forum is up to 1 crore in monetary value. (In the 1986 Act, this limit was 20
lakhs)
The act also allows the setting up of more than one forum in a district.
State Consumer Commission: Similar to the district level forum, state level commission also will
have three members, president and three members. The president should be qualified enough to
become the judge of the High Court of the state. Of the two members, at least one should be a woman.
The jurisdiction of the Commission at state level is 10 crores. (In the 1986 Act, this limit was 1 crore.)
National Consumer Commission: The national level commission will have a president and four
members, with at least one woman among the four members. The President of the commission will be
person qualified enough to become a Supreme Court judge.
Consumer complaints involving monetary value of 10 crore and above can be filed directly filed in
the National commission. (This limit was 1 crore in the 1986 Act.)
All complaints can be entertained only if filed within 2 years of the cause of action.
Appeal: A complainant can go in appeal within 30 days of order from any forum or commission.
From district to state to national will be the order of appeal. A complainant can go to the Supreme
Court against national commission’s order.
Mediation: At every level of complaint hearing, there will be a mediation facility available to the
complainant and the supplier of goods/services. Councillors or mediators will be available to the
parties to help them arrive at a settlement of the case between them.
Central Consumer Protection Authority: The act proposes many structures for consumer protection:
Central consumer protection council is an agency set up by the central government to give advice on
matters related to consumer protection under the Act. Minister in charge of the department of
consumer affairs will be the chair person with a number of members as may be specified. Similar
structures at the state level will be formed with the state minister as chairperson for the state council
and the District collector as chairperson for the district council.
The central government will establish a Central Consumer Protection Authority (CCPA) to "regulate
matters relating to violation of rights of consumers, unfair trade practices and false or misleading
advertisements which are prejudicial to the interests of public and consumers and to promote, protect
and enforce the rights of consumers as a class."
CCPA will be headed by a chief commissioner and will have as many commissioners as may be
prescribed by the central government. The purpose of CCPA is to (as stated in the Act):

• protect, promote and enforce the rights of consumers as a class, and prevent violation of
consumers rights under this Act;
• prevent unfair trade practices and ensure that no person engages himself in unfair trade
practices;
• ensure that no false or misleading advertisement is made of any goods or services which
contravenes the provisions of this Act or the rules or regulations made thereunder;
• ensure that no person takes part in the publication of any advertisement which is false or
misleading.
CCPA will have the powers to take actions like (as stated in the Act):
(a) inquire or cause an inquiry or investigation to be made into violations of consumer rights or unfair
trade practices, either suo motu or on a complaint received or on the directions from the Central
Government;
(b) file complaints before the District Commission, the State Commission or the National
Commission, as the case may be, under this Act;
(c) intervene in any proceedings before the District Commission or the State Commission or the
National Commission, as the case may be, in respect of any allegation of violation of consumer
rights or unfair trade practices;
(d) review the matters relating to, and the factors inhibiting enjoyment of, consumer rights, including
safeguards provided for the protection of consumers under any other law for the time being in
force and recommend appropriate remedial measures for their effective implementation;
(e) recommend adoption of international covenants and best international practices on consumer
rights to ensure effective enforcement of consumer rights;
(f) undertake and promote research in the field of consumer rights;
(g) spread and promote awareness on consumer rights;
(h) encourage non-Governmental organisations and other institutions working in the field of consumer
rights to co-operate and work with consumer protection agencies;
(i) mandate the use of unique and universal goods identifiers in such goods, as may be necessary, to
prevent unfair trade practices and to protect consumers' interest;
(j) issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or services;
(k) advise the Ministries and Departments of the Central and State Governments on consumer welfare
measures;
(l) issue necessary guidelines to prevent unfair trade practices and protect consumers' interest.

The Structure for Consumer Protection in India

The structure includes i) National Consumer Disputes Redressal Commission (NCDRC) ii) State
Consumer Disputes Redressal Commission (SCDRC) and iii) District Consumer Disputes Redressal
Commission.
National Consumer Disputes Redressal Commission: NCRDC is a national level quasi-judicial
commission to hear grievances of consumers for defective product or deficiency in service. The
jurisdiction of NCRDC is:

• To entertain complaints having a value of more than Rs 10 Million

• To have appellate and revisional jurisdiction on cases heard by the District and State level
commissions.
The Commission is normally headed by a sitting or retired judge of the Supreme Court. The
Commission will have four members with at least one woman member. The order given by the
National level Commission can be challenged in the Supreme Court of India within a period of 30
days.
However, the Supreme Court of India has held that the jurisdiction of National Commission under
Revision Jurisdiction is very limited and can only be exercised when State Commission exceeds its
jurisdiction, fails to exercise its jurisdiction or there is material
State Consumer Disputes Redressal Commission: These are set up by the State Governments. There
may be one or more State Level Consumer Commissions in a state. The State level Commissions can
be approached by consumers in situations where the value is more than 2 million but less than 10
million. The state level commission is headed by a sitting or retried High court judge and will have at
least three members. The State level Commission can entertain:
Complaints where the value of the goods or services and compensation, if any, claimed exceeds
rupees twenty lakhs but does not exceed rupees one crore (R10 million); and
 • Appeals against the orders of any District Forum within the State; and
• To call for the records and pass appropriate orders in any consumer dispute
District Consumer Disputes Redressal Commission: DCDRCs are established by the state
governments in every district of the state. Each district of the state will have at least one district level
commission to whom consumers can approach with their complaints. The District level commission
will be chaired by a sitting or retired district court judge and will have at least three members. Subject
to the provisions in the Consumer Protection Act.
The District Forum shall have jurisdiction to entertain complaints where the value of the goods or
services and the compensation, if any, claimed does not exceed rupees twenty lakhs.
Consumer protection Councils: Consumer protection Act also stipulated the establishment of
consumer protection councils at the central and state levels. The primary aim of establishing such
councils was to create awareness about consumer rights and promote participation of consumers in
activities promoting and protecting consumer rights. The Objectives of the councils can be stated as
the right to be:

• Protected against the marketing of goods and services which are hazardous to life and
property
• informed about the quality, quantity, potency, purity, standard and price of goods or services,
as the case may be so as to protect the consumer against unfair trade practices;
• assured, wherever possible, access to a variety of goods and services at competitive prices;
• heard and to be assured that consumer's interests will receive due consideration at appropriate
forums
• seek redressal against unfair trade practices or restrictive trade practices or unscrupulous
exploitation of consumers and;
• given access to consumer education.

There are three levels at which such councils are established:

Central Consumer protection Council is established by the Central Government with Minister in-
charge of consumer affairs as its chairman. The council will have as many number of official and non-
official members representing the government and other interest groups as required for its working.
The council will be reconstituted after a period of three years. The Council may also constitute a
working group with the member secretary as the chairman.
State Consumer protection Councils are established by the State Governments. Minister holding the
charge of Consumer affairs will be the chairman of the council. There will be ten representatives of
the Central government in addition to the official and non-official members representing varied
interest groups.
District Consumer Protection Councils are established by the State Governments in every district of
the state. The District Collector will be the chairman of the council. A number of official and non-
official members will be appointed to the council to represent a wide spectrum of interests in
consumer protection.

5.8 PRODUCT AND PRDUCT LIABILITY:

"Product" means any article or goods or substance or raw material or any extended cycle of such
product, which may be in gaseous, liquid, or solid state possessing intrinsic value which is capable of
delivery either as wholly assembled or as a component part and is produced for introduction to trade
or commerce, but does not include human tissues, blood, blood products and organs;(as defined in the
Act).

Defect and Deficiency:

"Defect" means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or
standard which is required to be maintained by or under any law for the time being in force or under
any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to
any goods or product and the expression "defective" shall be construed accordingly;
"Deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature and
manner of performance which is required to be maintained by or under any law for the time being in
force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in
relation to any service and includes:
(i) any act of negligence or omission or commission by such person which causes loss or injury to the
consumer; and
(ii) deliberate withholding of relevant information by such person to the consumer;

Product Liability:
"Product liability" means the responsibility of a manufacturer or seller, of any product or service, to
compensate for any harm caused to a consumer by such defective product manufactured or sold or by
deficiency in services relating thereto;
"Product liability action" means a complaint filed by a person before a District Commission or State
Commission or National Commission, as the case may be, for claiming compensation for the harm
caused to him;
A product manufacturer shall be liable in a product liability action, if
(a) the product contains a manufacturing defect; or
(b) the product is defective in design; or
(c) there is a deviation from manufacturing specifications; or
(d) the product does not conform to the express warranty; or
(e) the product fails to contain adequate instructions of correct usage to prevent any harm or any
warning regarding improper or incorrect usage.

A product service provider shall be liable in a product liability action, if

(a) the service provided by him was faulty or imperfect or deficient or inadequate in quality, nature or
manner of performance which is required to be provided by or under any law for the time being in
force, or pursuant to any contract or otherwise; or
(b) there was an act of omission or commission or negligence or conscious withholding any
information which caused harm; or
(c) the service provider did not issue adequate instructions or warnings to prevent any harm; or
(d) the service did not conform to express warranty or the terms and conditions of the contract.

A product seller who is not a product manufacturer shall be liable in a product liability action, if
(a) he has exercised substantial control over the designing, testing, manufacturing, packaging or
labelling of a product that caused harm; or
(b) he has altered or modified the product and such alteration or modification was the substantial
factor in causing the harm; or
(c) he has made an express warranty of a product independent of any express warranty made by a
manufacturer and such product failed to conform to the express warranty made by the product
seller which caused the harm; or
(d) the product has been sold by him and the identity of product manufacturer of such product is not
known, or if known, the service of notice or process or warrant cannot be effected on him or he is
not subject to the law which is in force in India or the order, if any, passed or to be passed cannot
be enforced against him; or
(e) he failed to exercise reasonable care in assembling, inspecting or maintaining such product or he
did not pass on the warnings or instructions of the product manufacturer regarding the dangers
involved or proper usage of the product while selling such product and such failure was the
proximate cause of the harm.

5.9 LAW OF TORTS

In the Oxford dictionary, you find the meaning of tort as “something wrong that somebody does to
somebody else that is not criminal but that can lead to action in a civil court”, Law of torts apply in
cases where a ‘civil wrong' has been committed by one person against another. Defamation is a
typical example of tort. The word ‘tort’ is derived from a Latin word ‘tortum’, meaning twisted or
crooked. Law of torts is not a codified law like the criminal procedure code. Law of torts essentially
comes from case laws or judgments given in different cases. There are no sections in Tort law as in
the penal code. There are also no pre-defined punishment or damages in tort law.
The main purpose tort law is to enforce the duties and rights of citizens. This also leads to damages
claimed by the person whose right is violated. The rights can in general be considered as:
• Right of reputation
• Right to bodily safety and freedom
• Right of property
Tort law is applicable where a civil wrong is committed. Civil wrong is different from a criminal
wrong: A civil wrong under tort is a violation somebody’s right by another person and is a private
wrong, there is no codified rules for dealing with torts, monetary compensation is the most common
claim for the injury (right violation) caused and compensation is not pre-determined and is decided by
the court in each case. A criminal wrong on the other hand is a public wrong, case is generally given
by the state and is dealt with procedures detailed in the code and punishment is generally laid out in
the code for different types of criminal wrongs.
Every wrong act may not come under the law of torts. Three conditions need to be fulfilled for dealing
with it under the law of torts:
• Existence of wrongful act causing injury (violation of right)
• Legal damages (Existence of actual damages or legally received damages)
• Legal remedy ('ubi jus ibi remedium’ For every wrong, law provides a remedy.)
All the three conditions must be fulfilled for considering the incident under the law of torts. You can
generally classify torts into three types:
• Intentional torts like defamation
• Negligence, not taking proper care to avoid wrong to others
• Strict liability, hazardous activities with potential for damage
Two important tort principles are:
Injuria sine Damnum (injury without damage) is a case where right violation happens but without
damage. An exemplary case for this is a case of voting rights (Ashby Vs White). A person was
prevented from voting by the returning officer of a voting station. The candidate to whom this person
wanted to vote did win the election despite this person not voting. The person, who was not allowed
to vote went to the court for damages for violation of the right to vote. The returning officer’s case
was that the candidate for whom the person wanted to vote has won the election in any case. There
was no damage done and hence they are not liable to compensate the person. The court took the view
that there was violation of right to vote and the entitlement to compensation remained irrespective of
there being no damage.
Damnum Sine injury (Damage without injury) is the second principle governing the violation of right
and damage. An example quoted to illustrate this principle is that of a school teacher who left the
school he was working with and started a school nearby. This act led to the loss of students for the old
school and in order to be competitive the school had to reduce fees as well. They suffered a loss
because of this act of the old teacher. In this case, while there is damage and loss to the school, they
are not entitled to any compensation as there was no violation of any of their rights. The teacher who
left the school was well within his right to start a school and this act was not a violation of any right of
the school. The school was not this entitled to any claim of compensation.
Some exceptions to the Tort law can come from:
• Personal fault of the injured party
• Act of God (vis major)
• Consent of plaintiff (violent non-fit injuria)
• Inevitability
• Necessity
Act done by a statutory authority (like police or IT personnel coming into your property as a part of
investigation; it is not trespassing) Vicareous liability comes as a part of third party liability, as in the
case of the liability of an employer for a wrongful act by the employee.
Absolute liability comes because of dangerous activity which has a potential to cause damage even if
the actual damage is caused by not an individual fault. (Bhopal gas leak case)
Law of Torts is not a codified law but is based of previous cases and pronounced judgments. Remedy
in Tort cases is mainly monetary compensation and is decided by the court in each case based upon
the extent of injury and other factors.

REVIEW QUESTIONS:

I) Explain the difference between an agreement and a contract giving an example of each.
ii) Explain the statement: All contracts are agreements but all agreements are not contracts.
iii) List any six essential elements of a legally valid contract.
iv) Explain the formation of contracts giving the steps required to make a valid contract.
v) Enlist the rights of a consumer
vi) Explain the structure in India for consumer grievance redressal.
vii) Briefly state the new provisions in the consumer protection Act 2019.
viii) Explain the concept of product liability.
ix) List the powers of the Central Consumer Protection Authority.
x) Explain the meaning of the term’Tort’ with examples.
xi) Explain the basis for dealing with a tort case as it is not a codified law.
xii) Explain the concept of tort cases with three examples.
xiii) Explain the essential features of a tort case.
xiv) Explain the terms ‘injuria sine damnum’ and ’damnum sine injuria’ with examples.
xv) Explain the concept of product safety with examples.
xvi) Explain the consideration risk and cost in product design with an example.