Chapter 2- Resolving Conflict In The Marketplace

Question 1

What is a contract?

Answer 1

A contract is a legally binding agreement that can be enforced in a court of law

Question 2

What is the law of contract?

Answer 2

The law of contract sets out the rules for proving when a contract exists and when it is finished (terminated)

Question 3

How can one make an offer?

Answer 3

Verbally, in writing or by conduct

Question 4

When is an offer terminated?

Answer 4

When it’s revoked, not accepted in time or rejected by the other party

Question 5

How can a contract be accepted?

Answer 5

Verbally, in writing or by conduct

Question 6

What is consideration?

Answer 6

Consideration is what each party offers the other as evidence of their agreement

Question 7

What is intention to contract?

Answer 7

Intention to contract means that the parties to contract must have intended to create a legally binding contract that could end up in court if not fulfilled. All business agreements are intended to be legally binding and all social and private agreements are not intended to be legally binding.

Question 8

What does consent to contract mean?

Answer 8

Consent to contract means that each party must give genuine agreement of their own free will to the making of the contract..

Question 9

When does consent to enter a legally binding contract not exist?

Answer 9

If a person is pressurised against their will into entering a contract, if a present enters a contract as a result of dishonesty and if genuine mistakes can be shown to have happened

Question 10

What is capacity to contract?

Answer 10

Capacity means that the people agreeing to the contract must have legal right to do so

Question 11

Who does not have legal rights to enter into a contract?

Answer 11

Anyone under 18 except for items considered normal purchases, people who intoxicated/insane etc or a company that does not have legal authority.

Question 12

What is legality of form?

Answer 12

Legality of form means that certain contracts must be drawn up in writing before they can become legally binding

Question 13

What is legality of purpose?

Answer 13

Legality of purpose means that for a contract to be legally binding it must be for a legal purpose and not involve committing any crime or break any law

Question 14

What is termination of contract?

Answer 14

Termination of a contract means it can no longer be legally enforced

Question 15

When can a contract be legally terminated?

Answer 15

Performance, Agreement, Frustration or breach of contract

Question 16

What is a warranty?

Answer 16

A warranty is a non-essential element of a contract

Question 17

What are remedies for breach of contract?

Answer 17

Rescind (Cancel the contract), sue for financial compensation and seek ‘specific performance’

Question 18

What does Caveat Emptor mean?

Answer 18

Caveat emptor means “Let the buyer beware”

Question 19

Name two acts which are set out for consumers and sellers

Answer 19

The Sale of Goods and Supply of Services Act 1980 and The Consumer Protection Act 2007

Question 20

What does the Sale of Goods and Supply of Services Act 1980 sets out

Answer 20

The legal rights of consumers, legal responsibilities of retailers and the legal remedies available.

Question 21

What are the legal rights of consumers

Answer 21

Goods must be good quality, must be fit for purpose intended, goods sold must be as advertised, buyer is entitled to legal ownership, service must be provided by a competent person and consumers renting or buying on hire purchase have the same rights as someone buying goods paying upfront with cash.

Question 22

What are the legal responsibilities of retailers?

Answer 22

Retailers are legally responsible for any defects in any product they sell, retailers must respect all legal rights of customers, complains must be dealt with and signs pretending to limit the retailer’s liability are illegal, any product guarantees offered are an additional benefit and it is illegal for retailers to demand payment for unsolicited goods sent to consumers.

Question 23

What are the remedies available for consumers?

Answer 23

Repair, replacement or refund of money

Question 24

What is The Consumer Protection Act 2007?

Answer 24

It is the law that protects consumers from unfair business-to-consumer commercial practices. The Act bans practices that are unfair, misleading or aggressive towards consumers and are likely to impair a consumer’s choice.

Question 25

What does the Consumer Protection Act 2007 prohibit?

Answer 25

False product descriptions, false prices, false or misleading advertising, businesses from engaging in aggressive practices

Question 26

What is the National Consumer Agency?

Answer 26

The National Consumer Agency (NCA) is the State agency that promote consumers’ awareness of their legal rights and ensures that consumer legislation is obeyed by businesses.

Question 27

What Does The National Consumer Agency Do?

Answer 27

Enforce consumer laws, provide information and advice to the public, provide information and advice to businesses, advise the government and publishing a Consumer Protection List of businesses found breaching consumer law.

Question 28

How can consumer complaints be resolved in a non-legislative manner?

Answer 28

Talk to the retailer or seek help from a third party.

Question 29

How is the best way to talk to the retailer?

Answer 29

Know your legal rights as set out in law, bring along a receipt as proof of purchase, speak to the manager and complain in a friendly but firm manner and if talking to the retailer does not work, write a formal letter of complain to the retailer.

Question 30

Name some organisation’s that can assist in resolving a consumer conflict

Answer 30

National Consumer Agency, Industry Trade Associations, Consumer’s Association of Ireland, Financial Services Ombudsman for complaints concerning financial institutions and Office of the Ombudsman for the Public Service.

Question 31

What is the Consumer’s Association of Ireland?

Answer 31

The Consumers’ Association of Ireland is a non-commercial organisation set up to protect and promote the interests of consumers.

Question 32

What does the Consumer’s Association of Ireland do?

Answer 32

Publish reports and surveys about products and services, highlight problem areas, running a consumer advice service and lobbying the government for changes and improvements to consumer rights legislation.

Question 33

How can consumer complains be resolved in a legislative manner?

Answer 33

They can take a case to the small claims court or hire a solicitor

Question 34

What are the Advantages of Small Claims Court?

Answer 34

Faster than going to the District Court or higher court. It is also low cost with no solicitors involved.

Question 35

What are the disadvantages of Small Claims Court

Answer 35

Only deals with complaints up to a limited value, recommendation is not legally binding and if you are not happy with the outcome, you will have to go for a full court hearing in the District Court or higher court.