Advertising, ACL, ACCC, warrenties etc. Flashcards
What does ACL stand for?
Australian Consumer Law
What is the purpose of ACL?
Protect consumers by ensuring businesses do not engage in unfair trading practices or misleading advertising.
What is the Competition and Consumer Act 2010?
An Act of Parliament that promotes competition, fair trading, and protects consumers.
What does the Competition and Consumer Act 2010 cover?
Product safety & labelling, unfair market practices, price monitoring, industry codes, industry regulation, mergers & acquisitions.
What organisation enforces the Competition and Consumer Act 2010?
Australian Competition and Consumer Commission (ACCC).
What is the role of the ACCC?
Administer and enforce the Competition and Consumer Act 2010, promoting competition and fair trading.
What obligations do businesses have under the ACL?
Avoid misleading conduct, correct advertised prices, avoid bait advertising, ensure fair promotions, ensure product safety.
What penalties do businesses face for non-compliance with ACL?
Monetary penalties, recalls, damages awarded to consumers, etc.
What are consumer guarantees under ACL?
Rights ensuring goods/services are of acceptable quality, fit for purpose, match descriptions, and have spare parts available.
What is bait advertising?
Advertising a product at a special price without enough stock, misleading consumers.
What are misleading scientific claims?
Claims about product benefits without reliable scientific research.
What does ACL say about country-of-origin claims?
Claims must be clear, accurate, and able to be substantiated.
What is product safety under ACL?
Mandatory safety standards for products to ensure they do not pose health risks.
What are warranties?
Voluntary promises by manufacturers/sellers offering additional protection beyond ACL guarantees.
When is a consumer entitled to a refund?
If a product is faulty or does not meet guarantees.
What happens with a minor fault?
The seller can repair it within a reasonable timeframe. If delayed, a refund or replacement may be sought.
What happens with a major fault?
Consumer can get a refund, replacement, or compensation.
What are the three levels of management?
Top, Middle, and Frontline.
What is the role of top management?
Acts as a figurehead, leads directors, and implements business strategy.
What is the role of middle management?
Manages teams, implements company policy daily.
What is the role of frontline employees?
Work directly with the product, achieving set targets.
What is an organisational structure?
Defines how activities and responsibilities are allocated in a business.
What are the four types of organisational structures?
Functional, Product, Divisional, Team-based.
What is chain of command?
The line of authority that defines reporting relationships within an organisation.
What is span of control?
The number of subordinates directly managed by a supervisor.
What is delegation?
Assigning authority and responsibility from a manager to subordinates.
What is a functional structure?
A business structure where departments are based on specific functions (e.g., marketing, finance).
What are the advantages of a functional structure?
Efficiency, expertise, clear chain of command.
What are the disadvantages of a functional structure?
Limited communication between departments, slow adaptability.
What is a divisional structure?
Business is divided into semi-autonomous divisions based on geography, products, or customers.
What are the advantages of a divisional structure?
Specialisation, faster decision-making, more flexibility.
What are the disadvantages of a divisional structure?
Duplication of resources, higher costs.
What is a team-based structure?
Employees are grouped into cross-functional teams working collaboratively.
What are the advantages of a team-based structure?
Encourages innovation, better communication, employee engagement.
What are the disadvantages of a team-based structure?
Inefficiency if roles are unclear, slow decision-making.
What is a product-based structure?
A structure where a business is organised around different product lines.
What are the advantages of a product-based structure?
Focus on individual product success, faster response to product issues.
What are the disadvantages of a product-based structure?
Higher costs, competition between product teams.
How does a functional structure impact chain of command?
Vertical reporting to department heads, who report to executives.
How does a functional structure impact span of control?
Narrow, as each manager oversees a specialised team.
How does a functional structure impact delegation?
Department heads delegate tasks to specialists within their teams.
How does a product structure impact chain of command?
Each product division operates independently under corporate policies.
How does a product structure impact span of control?
Product managers oversee employees within their product line.
How does a product structure impact delegation?
Product managers delegate development tasks within their teams.
How does a divisional structure impact chain of command?
Each division functions semi-independently, reporting to corporate HQ.
How does a divisional structure impact span of control?
Varies, as each division has its own management team.
How does a divisional structure impact delegation?
Division managers delegate operational tasks within their region.
How does a team-based structure impact chain of command?
Employees operate in cross-functional teams with high autonomy.
How does a team-based structure impact span of control?
Flexible and broad, as teams work with high autonomy.
How does a team-based structure impact delegation?
Team leaders delegate based on project needs and expertise.
