chapter 2 the consumer

Question 1

the consumer

Answer 1

a person who buys g/s for their own PERSONAL USE

caveat emptor applies so let the buyer beware

consumer conflict can be solved legislative or non

Question 2

consumer conflict causes

Answer 2

poor quality g/s
overpriced
bad customer service

Question 3

CCPC stands for

Answer 3

competition and consumer protection commission

Question 4

what does the ccpc do

Answer 4

informs consumer (online social media helpline)

enforces consumer law (issues compliance notices and fines, ‘name and shame’)

research into consumer issues(publishes re consumer behaviour to help possible savings or improvements)

advising the gvt (highlights issues facing consumers and law changes)

protecting consumers from firms dominating a market (examined mergers and acquisitions reduces monopolies that prevent fair competition)

Question 5

sogsos

Answer 5

sale of goods and supply of services act 1980

Question 6

4 provisions for goods sogsos

Answer 6

1 be of merchantable quality and reasonably durable given the price paid for them
2 conform to the sample used to sell them (eg from samples book or showroom)
3 be fit for purpose- able to do what they are intended to do
4 be as described/ shown in advertisements, by a salesperson or on the label

Question 7

3 provisions for services sogsos

Answer 7

1 be provided by someone who has the necessary skills and is qualified
2 be provided with due care (eg not rushed or poorly delivered
3 not be provided with improper or unsuitable tools. Any goods supplied with the service should be of merchantable quality

Question 8

4 other provisions sogsos

Answer 8

guarantees are additional protection given to the consumer; they don’t take away from the consumer’s legal rights
2 it is illegal for shops to display signs reducing legal rights (eg ‘No Refunds’)
3 unsolicited goods sent to a person who has not ordered them (inertia goods) can be kept after six months if no attempt has been made to collect the goods
4 when goods are bought from a retailer, it is not the responsibility of the manufacturer but the retailer to resolve consumer complaints

Question 9

forms of redress for faulty goods

Answer 9

1 Refund: entitled to money back for complaining promptly
2 Replace: entitled to replacement product with new or similar model
3 Repair: entitled to ask for the product to be fixed usually accepted if there’s a time delay

Question 10

Consumer Protection Act year

Answer 10

2007

Question 11

first three points consumer protection act 2007

Answer 11

false claims ab a product:
A business cannot: sell counterfeit items as real items; lie about origin; lie about an award received; lie about previous usage.

misleading advertising about a product:

A business should be clear what is included in the purchase and what a consumer can reasonably expect. A business cannot mislead consumers when comparing products.

advertising of false prices:
A business must be truthful about the actual price, previous price and recommended retail price in any comparison.

Question 12

last four consumer protection act 2007

Answer 12

misleading price displays:

A business must display prices for all items on sale; some items must be shown in a particular way (e.g. foods sold by the kilogram).

Aggressive selling practices:
The Act prohibits harassment, coercion or exercising undue influence to get someone to buy something.

pyramid schemes:
The Act bans (pyramid) schemes where people buy in at a certain level and then recruit more people to buy in below them in order to profit from those people.

price controls:
The government can impose a maximum price on certain goods in an emergency situation.

Question 13

banned practices

Answer 13

a