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Business > Ch 2. Resolving Conflict in the Marketplace > Flashcards

Ch 2. Resolving Conflict in the Marketplace Flashcards

1
Q

A contract

A
  • A legally binding agreement that can be enforced in a court of law
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2
Q

The Law of Contract

A
  • Sets out the rules for proving when a contract exists and when it is terminated
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3
Q

8 elements of a legally valid contract

A
  • Offer
  • Acceptance
  • Consideration
  • Intention to contract
  • Consent to contract
  • Legality of form
  • Legality of purpose
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4
Q

3 ways an offer is made

A
  • Verbally
  • In writing
  • By conduct
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5
Q

3 ways an offer is terminated

A
  • Revoked
  • Not accepted in time
  • Rejected
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6
Q

Revoked

A
  • Withdrawn before the other party has accepted it
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7
Q

An invitation

A
  • An invitation to a customer to make an offer which can be accepted or rejected
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8
Q

Acceptance

A
  • The other person agrees to all the terms of the original pffer without any conditions
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9
Q

3 ways an offer can be accepted

A
  • Verbally
  • In writing
  • By conduct
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10
Q

Consideration

A
  • What each party offers the other as evidence of their agreement
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11
Q

Intention to Contract

A
  • The parties to the contract must have intended to create a legally binding contract that could end up in court if not fulfilled
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12
Q

2 contract law assumptions

A
  • Business agreements are intended to be legally binding

- Social and private agreements are not intended to be legally binding

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13
Q

Consent to Contract

A
  • Each party must give genuine agreement of their own free will to the making of the contract
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14
Q

Consent to contract may not exist if (3)

A
  • A person is persuaded against their will by intimidation or against their will
  • A person enters as a result of deliberate misrepresentation or dishonesty by others
  • A genuine mistake happened
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15
Q

Capacity to Contract

A
  • People agreeing to the contract must have the legal right to do so
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16
Q

People who don’t have the legal right to enter a contract (3)

A
  • Under 18’s
  • Intoxicated, insane or of unsound mind
  • Companies outside of its legally stated purpose
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17
Q

Legality of Form

A
  • Certain contracts must be drawn up in writing before they can become legally binding
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18
Q

Legality of Purpose

A
  • For a contract to be legally binding
    • it must be for a legal purpose
    • not involve committing any crime or breaking any law
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19
Q

Termination of Contract

A
  • It can no longer be legally enforced
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20
Q

Contracts can be terminated by (4)

A
  • Performance (obligations fulfilled)
  • Agreement
  • Frustration (accident)
  • Breach of contract (condition broke)
21
Q

A condition

A
  • An essential element of a contract
22
Q

A warranty

A
  • A non-essential element of a contract
23
Q

Breach of Contract Remedies (3)

A
  • Cancellation
  • Compensation
  • Specific performance
24
Q

Specific performance

A
  • Getting the court to order the other party to keep their side of the agreement
25
Q

Caveat Emptor

A
  • Legal term

- “Let the buyer beware”

26
Q

2 legislations protecting consumers

A
  • The Sale of Goods and Supply of Services Act 1980

- The Consumer Protection Act 2007

27
Q

The Sale of Goods and Supply of Services Act 1980 sets out (3)

A
  • The legal right of consumers when they purchase goods
  • The legal responsibilities of retailers to consumers
  • The legal remedies available
28
Q

The legal rights of consumers (6)

A
  • Goods sold must be of merchantable quality
  • Goods sold must be fit for the purpose intended
  • Goods sold must be as describes
  • The buyer is entitled to legal ownership and quiet possession
  • Services must be provided by a competent person with skill and using due care and diligence. Materials used of quality
  • Consumers renting or buying on hire purchase have the same rights
29
Q

Merchantable Quality

A
  • Goods sold to consumers must be reasonably durable
30
Q

Quiet Possession

A
  • The buyer being able to use the goods as they wish
31
Q

The legal responsibilities of retailers (6)

A
  • They are legally responsible for defects
  • They must respect all the legal rights of customers
  • Complaints must be dealt with
  • Signs pretending to limit the retailer’s liability are illegal
  • Any product guarantees offered
  • Illegal to demand payment for unsolicited goods sent to consumers
32
Q

Unsolicited goods

A
  • Goods received by an individual who did not agree to receive them
33
Q

Legal remedies for the fault of goods (3)

A
  • Repair
  • Replacement
  • Refund
34
Q

Consumer Protection Act 2007 (2)

A
  • Protects consumers from unfair business-to-consumer commercial practises.
  • Bans practises that are unfair, misleading or aggressive towards consumers and are likely to impair a consumers choice.
35
Q

What does the Consumer Protection Act 2007 prohibit (4)

A
  • False product descriptions
  • False prices
  • False or misleading advertising
  • Businesses from engaging in aggressive practices
36
Q

What did the Consumer Protection Act 2007 establish

A

The National Consumer Agency

37
Q

The National Consumer Agency

A

The State agency that promotes consumers’ awareness of their legal rights and ensures that consumer legislation is obeyed by businesses

38
Q

What is the NCA responsible for (5)

A
  • Enforcing consumer laws by investigating, issuing fines and bring offenders to court
  • Providing information and advice to the public on their rights
  • Providing information and advice to businesses on their legal responsibilities
  • Advising the government on how to ensure the welfare of consumers is protected
  • Publishing a Consumer Protection List of businesses found breaching consumer law
39
Q

Non-Legislative ways of resolving the issue (2)

A
  • Talk to the retailer

- Seek help from a third party

40
Q

Best way to talk to the retailer (4)

A
  • Know your legal rights
  • Bring along a receipt as proof of purchase
  • Complain in a friendly but firm manner
  • Write a formal letter if talking doesn’t work
41
Q

Organisations that assist in resolving a consumer conflict (5)

A
  • National Consumer Agency
  • Industry trade associations
  • Consumers’ Association of Ireland
  • Financial Service Ombudsman for complaints concerning financial institutions
  • Office of the Ombudsman for the Public Service
42
Q

Consumers Association of Ireland

A

Non-commercial organisation set up to protect and promote the interests of consumers

43
Q

Main activities of the Consumers Association of Ireland (4)

A
  • Publishing reports and surveys into consumer products and services
  • Highlighting problem areas where consumers interests are being neglected and seeking improved standards
  • Running a consumer advice service
  • Lobbying the government for changes and improvements to consumer rights legislation
44
Q

Financial Services Ombudsman (2)

A
  • Resolves complaints against financial institutions (insurance companies, banks etc.)
  • Decisions made are binding on the institutions
45
Q

The Office of the Ombudsman for Public Services

A
  • Deals with consumer complaints against State-owned organisations, govt. departments and local authorities
  • It has no power to force its recommendation to be accepted.
46
Q

The Small Claims Court (2)

A
  • Provides an inexpensive, fast and easy way for consumers to resolve disputes without the need to employ a solicitor
  • Cannot force an agreement but effective at persuading sellers to respect consumer rights
47
Q

2 Advantages of Small Claims Court

A
  • Faster than going to the district court

- Low cost, small fee, no solicitors

48
Q

3 Disadvantages of Small Claims Court

A
  • Only deals with complaints up to a limited value
  • Recommendation is not legally binding
  • If you are not happy with the outcome, you will have to go to for a full court hearing in the District Court or higher court

Business (11 decks)

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