Consumer Conflict

Question 1

Name three reasons for conflict between consumers and retailers/producers

Answer 1

Poor quality products or services
Over-priced products or services
Bad customer services

Question 2

Explain Caveat Emptor with an example

Answer 2

Means ‘let the buyer beware’ as when buying good and services consumers are expected to be cautious and use their common sense. Consumers should check out a product before buying it.
Example: Trying on a pair of shoes before buying

Question 3

Name two non-legislative way of solving consumer conflicts

Answer 3

Negotiation, Consumers Association of Ireland (CAI)

Question 4

Explain Negotiation as a way of solving consumer conflict

Answer 4

The process of bargaining between parties in a conflict to reach a mutually acceptable solution.
Consumer returns to the shop to make their complaint known and the shop then sets out their position in relation to the complaint.
Both parties negotiate until a compromise is reached.

Question 5

Explain the CAI as a way of Solving Consumer Conflict

Answer 5

The Consumer’s Association of Ireland is an interest group for consumers which any consumer can contact for expert advice.
Aims: Give advice and ensure consumers are aware of their rights. They publish a magazine “Consumer Choice” and lobby the government about consumer issues

Question 6

Name the four rights of a consumer under the Sale of Goods and Supply of Services Act 1980 when buying goods

Answer 6

Goods must be :
Of merchantable quality
Fit for purpose
As described
Identical to Sample

Question 7

Name two Acts which serve as legislative ways of solving a consumer conflict

Answer 7

Sale of Goods and Supply of Services Act 1980

Consumer Protection Act 2007

Question 8

Explain Goods should be of Merchantable Quality under the Sale Of Goods and Supply of Services Act with an Example

Answer 8

Goods must be of an acceptable quality and standard,taking into account what they are suppose to do, their durability and price. Example: If shop sold apple that was rotten on the inside it is not of merchantable quality

Question 9

Explain Goods should be fit for purpose under the Sale Of Goods and Supply of Services Act with an Example

Answer 9

Goods must do exactly the job they are designed for and are intended to do.
Example: A freezer must be capable of freezing food.

Question 10

Explain Goods should be as described under the Sale Of Goods and Supply of Services Act with an Example

Answer 10

A product Must be exactly as it was portrayed on the packaging,brochure or orally by a salesperson. Must not be misleading.
Example: Jacket described as Waterproof lets rain in.

Question 11

Explain Goods should be Identical to sample under the Sale Of Goods and Supply of Services Act with an Example

Answer 11

If a good is bought on basis of a sample, item received must be exactly conforming to sample.
Example: Red paint sample, Tin of paint must be the same colour red as sample.

Question 12

State the four rights of consumers under the Sale of Goods and Supply of Services Act when Buying services

Answer 12

Fully qualified and necessary skills
Proper care and attention
Materials must be of merchantable quality
Merchantable quality.

Question 13

Explain the right services should be carried out by a person who is fully qualifies with the necessary skills under the Sale Of Goods and Supply of Services Act with an Example

Answer 13

Individual carrying out the service must be qualified to do so and have the correct skills required.
Example: A hairdresser should be qualified and trained in hairdressing.

Question 14

Explain the right services should be carried out with proper care and attention under the Sale Of Goods and Supply of Services Act with an Example

Answer 14

Person carrying out the job must do a good job supplying the service
Example: If a hairdresser dyed your hair but did not wash dye out properly

Question 15

Explain the right services should use materials of merchantable quality under the Sale Of Goods and Supply of Services Act with an Example

Answer 15

Materials used by supplier when providing the service must be good quality and fit for purpose.
Example: Materials used by a plumber must be of merchantable quality

Question 16

Explain the right services which sell goods as part of the service must be of merchantable quality under the Sale Of Goods and Supply of Services Act with an Example

Answer 16

Any goods sold as part of the service must be good quality and of an acceptable standard.
Ex: Shampoo sold in a hairdressers.

Question 17

What are the three customer redresses for the breaking of the Sale of Goods and Supply of Services Act 1980

Answer 17

Refund
Replacement
Repair

Question 18

Name four other provisions of the Sale of Goods and Supply of Services Act 1980

Answer 18

Legal Responsibility
Illegal Signs
Guarantees
Unsolicited goods

Question 19

Explain Legal responsibility as a provision of the Sale of Goods and Supply of Services Act

Answer 19

Retailer always is legally responsible for solving a customer’s complaint.
Example: Customer buys Sony TV from Harvey Norman. Harvey Norman are responsible for solving the complaint as the customers contract is with them,not with Sony.

Question 20

Explain Illegal signs as a provision of the Sale of Goods and Supply of Services Act

Answer 20

Retailers cannot display signs that limits a consumer’s rights. Example: ‘no refunds’ , ‘credit notes only’

Question 21

Explain Guarantees as a provision of the Sale of Goods and Supply of Services Act

Answer 21

A formal assurance from a manufacturer that a product will be repaired or replaced if it is not of a specified quality. Extra protection for consumers and cannot take away from consumers basic rights. Give consumer a choice in who to contact with complaint

Question 22

Explain Unsolicited Goods as a provision of the Sale of Goods and Supply of Services Act

Answer 22

Business sends a consumer goods they did not order, they not have to pay for them. - can keep goods after 30 days from when they wrote to the business or if the business does not collect the goods within six months

Question 23

What does the Consumer Protection Act 2007 deal with.

Answer 23

Deals with unfair business to consumer commercial practices.

Question 24

Detail the three unfair commercial practices banned by the Consumer Protection Act 2007

Answer 24

Misleading Practices
Aggressive Practices
Prohibited Practices

Question 25

Explain Misleading Practices and what it is illegal to mislead customers about.

Answer 25

A commercial practice is misleading if it contains false information or deceives a consumer into buying something. it is illegal to mislead customers about: the product or service/ the price/advertising

Question 26

Give some misleading claims about the product or service that are illegal to make under the Act

Answer 26

1. The description
2. The nature of the product or service- “our award winning bread”
3. The main characteristics - TV described as having sports channels but they require an extra subscription.
4. Its geographical origin - product made in china with shamrocks and harps on the packaging. if not stated its origin misleading as it looks Irish.
5. It’s usage or prior history - Car dealer changes the clock of a car from 100000 km to 10000 km.

Question 27

Explain misleading claims about the price as a misleading practice with an Example.

Answer 27

Illegal to mislead customers in relation to the price, prices must be stated truthfully. Example: If a product has been advertised as dearer than before the higher price must have been applied for 28 days in a row in the previous 3 months.

Question 28

Explain misleading advertising as a misleading practice with an Example.

Answer 28

All information contained in a advertisement must be fair and accurate. Ads should clear, unambiguous and easily understood. Example: Dunnes Stores ‘Always Better Value’ was ruler misleading as the comparisons were not like for like.

Question 29

Explain aggressive practices

Answer 29

An Aggressive practice is one that harasses or coerces the consumer or puts them under unfair pressure. Use of Threatening or abusive language or if a trader takes advantage of a consumers misfortune would be aggressive practices.

Question 30

Give six prohibited practices banned under the Consumer Protection Act.

Answer 30

Making untrue claims that a product can cure illness.
Directly appealing to children- Ex:cool kids
Advertising closing own sale when business is not closing.
Telling customers they have won a ‘free gift’ when it costs them money to claim it.- ex. to claim gift you have to ring number on a premium phone line @ €2.40 a min.
A competition when the top prize is not available. - No scratch card printed with the “top” prize on it.
Demanding payment for unsolicited goods - sending bill

Question 31

What does CCPC stand for

Answer 31

Competition and Consumer Protection Commission.

Question 32

Explain Pyramid Promotion Schemes and Why they are banned as a prohibited practice under the Consumer Protection Act 2007

Answer 32

Scam operate by getting person to pay money to join the scheme with the promise, the more people they get to join the more money they will earn. Only those running the scheme benefit. People found to promote these schemes can be fined and/or five years in prison

Question 33

Explain Prohibited Practices and how price must be displayed

Answer 33

The price of an item must be clearly displayed and price shown should be inclusive of taxes and charges. Weighing scales should be provided in grocers. Government can also set max price for an item

Question 34

What are the sanctions and penalties for breaking the terms of the Consumer Protection Act 2007 and who imposes them

Answer 34

The CCPC can impose the following on businesses:
Issue Compliance notice
Apply for Prohibition order from the courts
Impose on the spot fines
Name and Shame the business in its customer protection list.
Prosecute the business.

Question 35

Give two consumer redresses if a term of the Consumer Protection Act 2007 is broken by a business

Answer 35

1. Compensation - consumer can sue

2. Exemplary Damages- Consumers may receive extra money from business on top of compensation

Question 36

What is the CCPC- basic define

Answer 36

CCPC is a statutory body responsible for enforcing consumer laws in Ireland.

Question 37

Give four functions of the CCPC

Answer 37

1. Informs consumers of their rights
2. Ensures businesses obey consumer laws
3. Advises government and influences decisions
4. Assess mergers and takeovers in Ireland.

Question 38

What is the function of the Small Claims Court

Answer 38

Aim is to handle consumer claims easily, quickly and cheaply as possible. Maximum amount a consumer can sue for is €2000 and it costs €25 to bring a claim to the court.

Question 39

Explain the role of the ombudsman for public services

Answer 39

Investigates consumer complaints against the following public bodies.

• Government Dept.
• Publically funded third level institutions
• Local authorities
• Education training boards
• The HSE

Question 40

What is the Procedure to make a complaint to the ombudsman

Answer 40

-Make complaint in writing
-Complaint is investigated by the ombudsman
Evidence is consideration and ombudsman made a recommendation (not legally binding)

Question 41

Explain Non-legislative methods of solving consumer conflicts

Answer 41

Consumer and the shop try to solve the conflict themselves without reference to the laws of Ireland or to any legal agency

Question 42

Explain legislative methods of solving consumer conflicts

Answer 42

Try to solve the conflict by referring to the laws of Ireland or by using a legal organisation

Question 43

Explain refund

Answer 43

If fault is a major one and discovered soon after purchase the customer is entitled to full refund. means they get back all the money they paid for the item.

Question 44

Explain Replacement

Answer 44

The consumer may also decide upon finding a fault to accept a replacement product. The retailer gives them a perfect product as a substitute for the imperfect one

Question 45

Explain Repair

Answer 45

If good have been used some time, or there is delays making a complaint, customer may be offered a repair. the retailer will get the products fault fixed.

Question 46

Evaluation of Sale of Goods and Supply of Services Act 1980

Answer 46

Good job of protecting consumers because:

• Ensure consumers get their money back if a good or service is not up to legal standards. Consumers don’t loose any money if they buy a faulty product.
• Consumer cannot be fooled into thinking they have to accept credit note from a retailer who put up sign to that effect.. Protects consumers who do not know their rights.

Question 47

Example of aggressive practice under the Consumer Protection Act.

Answer 47

Funeral Home staff put pressure on person whose relative has just died to buy a more expensive coffin as a mark of respect.

Question 48

Evaluation of the Consumer Protection Act

Answer 48

it is a good law because:

• Protects consumers from rogue traders seeking to rip them off by banning all imaginable consumer scams.
• Ensures consumers get fair, honest information on what they are buying and it’s price. They can make informed decision and spend their money wisely.
• Ensure shop is punished if they deceive a consumer so it doesn’t happen again.

Question 49

Evaluation of the CCPC

Answer 49

• Makes consumers aware of rights and empowers them to make informed choices and to assert their rights
• If Irish consumers are lied to or mislead, CCPC ensures it won’t happen again and punishes offending business
• Influences government decisions so Consumers have a powerful organisation to respect them and ensure their welfare is protected.
• Ensures open, competitive markets in Ireland- Best quality and price goods for consumer

Question 50

Evaluation of the Small Claims court

Answer 50

it is effective because:

• Ensures consumers can get justice, easily,quickly,cheaply.
• Consumers in Ireland can Justice locally as their nearest Small Claims Court is located at their local District court.
• Small claims online excellent service as anyone in Ireland can take a case anywhere at any time.

Question 51

Explain process in the Small claims court for if a business contests a claim or does not contest a claim

Answer 51

Does not contest claim -court orders amount claimed to be paid to the consumer.
Contest - Firstly both sides have a meeting together by the small claims registrar. If that doesn’t work there is then a hearing in the District court which is public.

If after listening to evidence the judge rules in favor of consumer the shop has four weeks to pay compensation.

Question 52

Evaluation of ombudsman for public services

Answer 52

Ombudsman is effective because:

• Service is free, Saves people in conflict with public body money- they don’t have to bring them to court
• Avoids intimidation for an ordinary person taking on powerful Public body. Ombudsman has legal power to take them on, investigate complaint to get the truth.