Chapter 2: Consumer Conflict

Question 1

Name three causes of consumer conflict.

Answer 1

Poor quality products
Over pricing
Bad customer service

Question 2

Define caveat emptor

Answer 2

Meaning ‘let the buyer beware’ this law means consumers have to act responsibly themselves and show common sense. E.g. Try on clothes before they buy them.

Question 3

Explain Negotiation.

Answer 3

Go back to the manager, explain the problem and what form of redress you want. Manager can agree, reject or offer alternative until mutually acceptable solution is reached.

Question 4

Explain Consumer Association of Ireland

Answer 4

CAI is an interest group for consumers, aims to ensure good quality products and that consumers know their rights. Offer expert advice and lobby the government.

Question 5

Principles of sale of goods and supply of services act 1980. List 8.

Answer 5

1. Goods must be of merchantable quality.
2. Fit for purpose.
3. As described.
4. Match the sample.
5. Supplier qualified
6. Provide service with due care and diligence
7. Materials must be of merchantable quality
8. Goods sold as part of service must be of merchantable quality

Question 6

Explain three provisions of 1980 act regarding contract, signs and guarantees.

Answer 6

1. The shop is responsible for dealing with complaints not the manufacturer. They have a contract.
2. It is an offence to display a sign that suggests consumers have no rights. E.g. No refunds.
3. Guarantees only enhance consumer choice. Can choose to have manufacturer repair it instead.

Question 7

What is the purpose of the Consumer Protection Act 2007.

Answer 7

To protect consumers against unfair commercial practices such as when a business doesn’t give reasonable skill, care or lies and it significantly impairs the average consumer’s ability to make a choice.

Question 8

Define Misleading practice with example.

Answer 8

Contains false information or deceives the average consumer. E.g. Lying about geographical origin.

Question 9

Define aggressive commercial practices.

Answer 9

When a business harasses, coerces or puts unfair pressure on the consumer. Threatening or abusive language is banned. Taking advantage of consumers misfortune is banned. E.g. Demanding payment for unsolicited goods.

Question 10

Give four examples of prohibited practices.

Answer 10

Direct appeal to children.
Lying about a free gift.
Pyramid schemes.
Prices shown must include all VAT & tax

Question 11

Name the five main powers of the CCPC

Answer 11

Prosecute, Compliance Notice, Prohibition Notice, On the Spot fines and Power to name and shame a business.

Question 12

Evaluate the role of the CCPC.

Answer 12

Makes consumers aware of their rights and empowers them to make informed decisions and to assert these rights.
If Irish consumers are lied to or misled the CCPC has actual power to enter premise, collect evidence, and inform Gardaí aswell as issuing compliance and prohibition notices.
The CCPC also conducts research to improve consumer law and lobbies the government to do this ensuring consumer welfare is protected.
The CCPC can also block mergers and takeovers under competition laws which ensures that the consumer has good quality products at a cheap price.

Question 13

Evaluate the role of the small claims court.

Answer 13

The small claims court is effective at resolving disputes between consumers and businesses because it is a place where anyone can get justice easily, quickly and cheaply.

Consumers in Ireland can get justice locally at their nearest district court or an excellent online service means anyone in Ireland can get justice.

Claims under €2000 cost just €25 and as people can represent themselves and don’t need to hire a barrister, justice can be gotten cheaply in the court.

Claims in the court are handled quickly because if the judge finds in favour of the consumer they will receive compensation in less than four weeks.

Question 14

Evaluate the role of the ombudsman.

Answer 14

The ombudsman is an independent body that investigates consumer complaints against public bodies. E.g. the HSE. The ombudsman is effective because it is free and avoids intimidation.

The ombudsman is a free service which saves people in conflict with public bodies money as they don’t have to bring them to court.

The ombudsman is an independent body with legal power to investigate public bodies and get the truth. Unlike an ordinary person the ombudsman cannot get intimidated by a large public body.

Question 15

Explain the ombudsman investigation process.

Answer 15

1. Consumers make complaint in writing, in e-mail or by phone.
2. Ombudsman investigates.
3. Ombudsman considers evidence and makes recommendation.

Findings aren’t legally binding but are reported in the Dáil.