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CS Professional · Banking and Insurance - Laws and Practice · Consumer Protection

After investigation, the Central Authority finds sufficient evidence that a company sold an unsafe electrical product. It proposes to order recall of the goods and reimbursement of prices to purchasers. What must it do before passing such an order?

The Central Authority must give the person concerned an opportunity of being heard before passing a recall or reimbursement order. The Act requires no approval from the National Commission or the Central Council, and no fixed safety notice period.

  1. AObtain approval of the National Commission
  2. BGive the person an opportunity of being heardCorrect
  3. CObtain consent from the Central Council
  4. DPublish a safety notice for 30 days

Explanation

Section 20 allows recall of dangerous goods and reimbursement of prices, but the proviso requires the Authority to give the person an opportunity of being heard before passing the order. No approval of the National Commission or Council is required.

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