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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Consumer Protection

A mediator nominated by the State Commission is handling a dispute between a Chennai bank customer and the bank. Which of the following correctly describes how the mediator must approach the task under the Consumer Protection Act, 2019?

The mediator must consider the parties' rights and obligations, usages of trade, the circumstances of the dispute and other relevant factors, and must be guided by the principles of natural justice. Strict civil procedure, one party's terms or Central Authority directions are not the standard.

  1. AHave regard to rights and obligations of parties, usages of trade and circumstances, guided by natural justiceCorrect
  2. BApply the Code of Civil Procedure strictly to every step
  3. CDecide the dispute only on the basis of the bank's standard terms
  4. DFollow only the directions of the Chief Commissioner of the Central Authority

Explanation

Section 79(2) requires the mediator to have regard to the parties' rights and obligations, usages of trade, the circumstances giving rise to the dispute and other relevant factors, and to be guided by the principles of natural justice. The time and manner are set by regulations, not by the Central Authority's head.

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