Chp 2 - Resolving conflict in the market place

Question 1

7 elements of a valid contract

Answer 1

-Agreement
-Intention to contract
-Capacity
-Consent
-Consideration
-Legality of purpose
-Legality of form

Question 2

Explain agreement
(elements of a valid contract)

Answer 2

A clear, unconditional OFFER made by one party and ACCEPTED by the other

Question 3

Explain intention to contract
(elements of a valid contract)

Answer 3

All parties INTEND to creat a legally binding agreement

Question 4

Explain capacity
(elements of a valid contract)

Answer 4

All parties must have the legal ABILITY to enter into a contract

Question 5

Explain consent
(elements of a valid contract)

Answer 5

All parties must enter into a contract VOLUNTARILY

Question 6

Explain consideration
(elements of a valid contract)

Answer 6

Some item of value must pass between the parties

Question 7

Explain legality of purpose
(elements of a valid contract)

Answer 7

The contract must be created for legal purposes only

Question 8

Explain legality of form
(elements of a valid contract)

Answer 8

Contracts must be drawn up in the correct legal format

Question 9

4 ways in which a contract can be terminated

Answer 9

-Performance
-Agreement
-Frustration
-Breach of contract

Question 10

Explain how a contract can be terminated by performance

Answer 10

All parties complete their side of the contract in full

Question 11

Explain how a contract can be terminated by agreement

Answer 11

All parties mutually agree to end the contract

Question 12

Explain how a contract can be terminated by frustration

Answer 12

Unforeseen events prevent the contract from continuing

Question 13

Explain how a contract can be terminated by breach of contract

Answer 13

Contract ends when one party breaks their side of a contract

Question 14

3 remedies for breach of contract

Answer 14

-Compensation
-Rescind the contract
-Specific performance

Question 15

Explain compensation
(remedies for breach of contract)

Answer 15

One party pays the other compensation for the loss suffered

Question 16

Explain rescind the contract
(remedies for breach of contract)

Answer 16

Both parties are returned to the position before the breach took place

Question 17

Explain specific performance
(remedies for breach of contract)

Answer 17

The party that breached the contract is ordered to complete their part

Question 18

2 types of methods to resolve consumer conflict

Answer 18

-Legislative
-Non-legislative

Question 19

3 non-legislative methods of resolving conflict

Answer 19

-Negotiation
-Letter of complaint
-Assistance from a third party

Question 20

Explain negiation
(non-legislative methods of resolving consumer conflict)

Answer 20

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

Question 21

Explain a letter of complaint
(non-legislative methods of resolving consumer conflict)

Answer 21

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

Question 22

Explain assistance from a third party
(non-legislative methods of resolving consumer conflict)

Answer 22

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)

Question 23

5 legislative methods of resolving consumer conflict

Answer 23

-Sales of Goods and Supply Services Act 1980
-Consumer Protection Act 2007
-Competition and Consumer Protection Commission
-Ombudsman
-Small Claims Procedure

Question 24

Under the sales of goods and supply of services act 1980
Goods must be…

Answer 24

-Of merchantable
-Fit for purchase
-As described
-As per sample

Question 25

Under the sales of goods and supply of service act 1980 Services must be...

Answer 25

-From a supplier qualified with the necessary skills -Provided with proper care and diligence -Provided with materials and goods fir for purpose

Question 26

Under the sales of goods and supply or services act 1980 What are illegal signs?

Answer 26

Signs that prohibit a consumers rights -'no refunds'

Question 27

Under the sale of goods and supply of services act 1980 What are the remedies for breach of this act?

Answer 27

-Refund -Replacement -Repair

Question 28

Under the sale of goods and supply of services act 1980 Who holds responsibility?

Answer 28

The retailer(seller) is responsible for putting things right

Question 29

What is the aim of the Consumer Protection Act 2007

Answer 29

Aims to protect consumers from unfair business practices

Question 30

5 elements of the Consumer Protection Act 2007

Answer 30

-Misleading descriptions -Agressive practices -Prohibited practices -Price display regulations -Price controls

Question 31

5 functions of the Competition and Consumer Protection Commission (CCPC)

Answer 31

-Informing and educating to consumer -Enforcing consumer laws -Advising government -Research -Product safety

Question 32

What does an ombudsman do?

Answer 32

Investigates complaints from the public when they have been unfairly treated by a public body

Question 33

What is the Small Claims Procedure?

Answer 33

-Quick way of resolving conflict -Provided through the district courts -Max claim is 2,000

Question 34

What is a contract?

Answer 34

A legally binding agreement between at least two parties, enforced by law

Question 35

CAI

Answer 35

Consumers' Association of Ireland

Question 36

CCPC

Answer 36

Competition and Consumer Protection Commission

Question 37

ECC

Answer 37

European Consumer Centre Ireland

Question 38

FSPO

Answer 38

Financial Services and Pensions Ombudsman