Consumer Choice (C)

Question 1

What is batering?

Answer 1

The swapping or exchanging of one good for another.

Question 2

What does caveat emptor mean?

Answer 2

Let the buyer beware…

Question 3

What is comparison shopping?

Answer 3

Contacting a number of sellers to obtain the best deal.

Question 4

What is a consumer?

Answer 4

Someone who purchases goods and services to satisfy needs and wants.

Question 5

What is a drawee?

Answer 5

The financial instution that provides cheque account facilities.

Question 6

What is a drawer?

Answer 6

A person who write and signs a cheque.

Question 7

What does EFTPOS stand for?

Answer 7

Electronic Funds Transfer at Point Of Sale

Question 8

What is a payee?

Answer 8

The person who receives the money from a cheque.

Question 9

What are some key factors affecting consumer decision?

Answer 9

Age, Service, Price, Convenience, Marketing, Gender, Finance, Environmental

Question 10

Who is the offeror?

Answer 10

The person making the offer.

Question 11

Who is the offeree?

Answer 11

The other party.

Question 12

What is a contract?

Answer 12

A contract is a legally enforceable agreement between two or more persons or parties.

Question 13

Name the three essential elements of a contract.

Answer 13

1) Offer
2) Acceptance
3) Consideration

Question 14

What does ASIC stand for and at what level does it operate (e.g. state, federal)?

Answer 14

Australian Securities and Investment Commission

Federal

Question 15

What does ASIC do?

Answer 15

Protects consumers in the areas of investment life and general insurance, superannuation and banking in Austrlaia.

Question 16

What does ACCC stand for and at what level does it operate?

Answer 16

Australian Competition and Consumer Comission

Federal/ national

Question 17

What does it do?

Answer 17

Enforces and administers competition and consumer protection laws.

Question 18

What does ACA stand for?

Answer 18

Australian Consumers’ Association

Question 19

What does the ACA do?

Answer 19

Provides consumers with information and guidelines about goods and services.

Question 20

List 7 ways you can pay for a good/s.

Answer 20

1) Cash
2) Credit (supply of money now in return for the promise of paying it back later)
3) Direct debit (automatic withdrawals of funds from your account).
4) Cheque (written communication)
5) Lay- by (pay a deposit and they make regualr payments for the good/s).
6) EFTPOS and BPAY
7) Book up- purchase goods from a retailer and pay at a later date (e.g. plumbers do this)

Question 21

What is the Trade Practices Act 1974 (Cwth)?

Answer 21

A federal Act that applies to the business behaviour of companies. Its two major purposes are to protect consumers against undesirable business practices and to regulate certain trade practices that restrict competition.

Question 22

What is the Fair Trading Act 1987 (NSW)?

Answer 22

A state Act that applies to individuals, as opposed to companies, who supply goods and services. The Act prohibits misleading and deceptive condct, false claims and unfair trade practices.