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        Case ID :
        Indian Laws

        Purchase of goods by a company for personal use of its directors...

        Purchase of goods (CAR) for directors' personal use isn't 'commercial purpose' under Consumer Act. Profit nexus key, not self-employment.

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                Purchase of goods by a company for personal use of its directors does not constitute "commercial purpose" u/s 2(1)(d) of the Consumer Protection Act, 1986. Commercial purpose requires a close nexus with profit-generating activity. If the dominant intention is personal use, it does not qualify as commercial purpose, irrespective of self-employment considerations. Determination is case-specific. Purchase of luxury cars for directors' use is not commercial purpose. Non-disclosure of airbag functioning details constitutes unfair trade practice. Compensation awarded for deficient services regarding airbag non-deployment. National Commission's well-reasoned judgment upheld.
                                Note: It is a system-generated summary and is for quick reference only.
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