Lesson eLearning

A consumer bought a television for ₹80,000. After 4 months, the TV stopped functioning and damaged a ₹50,000 carpet. The consumer seeks compensation equal to 2.5 times the actual loss. If the District Commission’s jurisdiction limit is ₹15 lakh, what is the maximum compensation payable?

hard 3 marks Class 12 · Business Studies · Consumer Protection
Answer
₹1.25 lakh

The correct answer is ₹1.25 lakh — Thus the maximum compensation payable is ₹1.25 lakh.

Step-by-step solution

  1. Calculate actual loss: ₹50,000.
  2. Multiply by 2.5 to get claimed compensation: 50,000 × 2.5 = 1,25,000.
  3. Compare with jurisdiction limit of ₹15 lakh. 1,25,000 < 15,00,000.
  4. Thus the maximum compensation payable is ₹1.25 lakh.
Common mistake: Failing to apply the jurisdiction limit

Concept tested: Jurisdiction limits and compensation calculation

Published · How this solution was prepared and checked

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