Consumer Law

Question 1

What does the Fair Trading act cover?

Answer 1

The fair trading act covers all advertising and selling of goods and service by people in trade.

Question 2

What does the fair trading act not cover?

Answer 2

The Fair Trading act does not cover private sales.

Question 3

What does the fair trading act prohibit?

Answer 3

• Misleading and deceptive conduct
• False representations
• Unfair practices

Question 4

What is the definition of misleading or deceptive conduct?

Answer 4

If the information you receive about goods or services gives you a false impression.

Question 5

What is the definition of False Representation?

Answer 5

When the information you receive about goods (or services) is not true.

Question 6

What is the definition of Unfair Trading Practices.

Answer 6

A method that is misleading or unfair.

Question 7

What is a Raincheck?

Answer 7

The shop will get more of the product they ran out of or a product of similar quality and value and sell it to you at the special advertised price.

Question 8

What is Puffery?

Answer 8

Puffery is statements that are so ridiculous that no one could possibly believe them.

Question 9

Give three examples of misleading or deceptive conduct?

Answer 9

• Advertisements not fully disclosing the full details of the good or service.
• Not telling you something when you ask them and they know the answer.
• Giving a false impression about a good or service by the advertisement.

Question 10

Give examples of Unfair Trading Practices

Answer 10

• Offering gifts/prices without intending to supply them.
• Bait advertising
• Misleading claims
• Pyramid schemes

Question 11

If it is a major fault, who can decide Repair, Replace, Refund?

Answer 11

The consumer

Question 12

If it is a minor fault, who can decide Repair, Replace, Refund?

Answer 12

The producer

Question 13

What happens if the business you purchased the goods from fails?

Answer 13

You can go to either the manufacturer or the importer to have the goods repaired, replaced or refunded?

Question 14

What must those providing services under the CGA do?

Answer 14

• Must be provided with reasonable care and skill
• Services must give, or do, what you asked
• Services must be completed in a reasonable time, or by the completion date.
• You do not have to pay more than a reasonable price or the price that had been agreed on.

Question 15

What are the remedies under CGA if services are not provided correctly?

Answer 15

1. Fix the job at no cost
2. Get someone else to fix it or continue with the job and claim back the cost to the original buyer.
3. Cancel the contract for the service.