Chp 2 - Resolving conflict in the market place Flashcards
7 elements of a valid contract
-Agreement
-Intention to contract
-Capacity
-Consent
-Consideration
-Legality of purpose
-Legality of form
Explain agreement
(elements of a valid contract)
A clear, unconditional OFFER made by one party and ACCEPTED by the other
Explain intention to contract
(elements of a valid contract)
All parties INTEND to creat a legally binding agreement
Explain capacity
(elements of a valid contract)
All parties must have the legal ABILITY to enter into a contract
Explain consent
(elements of a valid contract)
All parties must enter into a contract VOLUNTARILY
Explain consideration
(elements of a valid contract)
Some item of value must pass between the parties
Explain legality of purpose
(elements of a valid contract)
The contract must be created for legal purposes only
Explain legality of form
(elements of a valid contract)
Contracts must be drawn up in the correct legal format
4 ways in which a contract can be terminated
-Performance
-Agreement
-Frustration
-Breach of contract
Explain how a contract can be terminated by performance
All parties complete their side of the contract in full
Explain how a contract can be terminated by agreement
All parties mutually agree to end the contract
Explain how a contract can be terminated by frustration
Unforeseen events prevent the contract from continuing
Explain how a contract can be terminated by breach of contract
Contract ends when one party breaks their side of a contract
3 remedies for breach of contract
-Compensation
-Rescind the contract
-Specific performance
Explain compensation
(remedies for breach of contract)
One party pays the other compensation for the loss suffered
Explain rescind the contract
(remedies for breach of contract)
Both parties are returned to the position before the breach took place
Explain specific performance
(remedies for breach of contract)
The party that breached the contract is ordered to complete their part
2 types of methods to resolve consumer conflict
-Legislative
-Non-legislative
3 non-legislative methods of resolving conflict
-Negotiation
-Letter of complaint
-Assistance from a third party
Explain negiation
(non-legislative methods of resolving consumer conflict)
If consumer is unhappy they should;
-return to retailer with proof of purchase
-speak to manager and clearly state the problem
-tell the retailer how the want the problem to be solved
Explain a letter of complaint
(non-legislative methods of resolving consumer conflict)
The consumer should;
-outline the problem with the good or service
-explain how thye would like the issue to be resolved
-include any proof of purchase
Explain assistance from a third party
(non-legislative methods of resolving consumer conflict)
If negotiation is not successful the consumer can seek assistance from a third party to help resolve the problem
-Consumer’s Assosiation of Ireland(CAI)
-European Consumer Centre Ireland(ECC Ireland)
5 legislative methods of resolving consumer conflict
-Sales of Goods and Supply Services Act 1980
-Consumer Protection Act 2007
-Competition and Consumer Protection Commission
-Ombudsman
-Small Claims Procedure
Under the sales of goods and supply of services act 1980
Goods must be…
-Of merchantable
-Fit for purchase
-As described
-As per sample
Under the sales of goods and supply of service act 1980
Services must be…
-From a supplier qualified with the necessary skills
-Provided with proper care and diligence
-Provided with materials and goods fir for purpose
Under the sales of goods and supply or services act 1980
What are illegal signs?
Signs that prohibit a consumers rights
-‘no refunds’
Under the sale of goods and supply of services act 1980
What are the remedies for breach of this act?
-Refund
-Replacement
-Repair
Under the sale of goods and supply of services act 1980
Who holds responsibility?
The retailer(seller) is responsible for putting things right
What is the aim of the Consumer Protection Act 2007
Aims to protect consumers from unfair business practices
5 elements of the Consumer Protection Act 2007
-Misleading descriptions
-Agressive practices
-Prohibited practices
-Price display regulations
-Price controls
5 functions of the Competition and Consumer Protection Commission (CCPC)
-Informing and educating to consumer
-Enforcing consumer laws
-Advising government
-Research
-Product safety
What does an ombudsman do?
Investigates complaints from the public when they have been unfairly treated by a public body
What is the Small Claims Procedure?
-Quick way of resolving conflict
-Provided through the district courts
-Max claim is 2,000
What is a contract?
A legally binding agreement between at least two parties, enforced by law
CAI
Consumers’ Association of Ireland
CCPC
Competition and Consumer Protection Commission
ECC
European Consumer Centre Ireland
FSPO
Financial Services and Pensions Ombudsman
