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 services by people in trade.

Question 2

What does the Fair Trading Act not cover?

Answer 2

It does not cover private sales.

Question 3

What does the Fair Trading Act prohibit?

Answer 3

It prohibits misleading deceptive conduct, false representations and unfair practices.

Question 4

What is the defination of misleading or deceptive conducts?

Answer 4

You have been misled if the information you receive about goods or services give you a false impression.

Question 5

What is the defination of false repersentations?

Answer 5

You have had a false representation made to you when the information you receive about goods (or services) is not true.

Question 6

What is the defination of unfair trading practices?

Answer 6

An unfair practice is a selling method which is misleading or unfair.

Question 7

What is a raincheck?

Answer 7

A retailer can offer you a ‘raincheck’. This means 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. It’s a good idea to ask for a raincheck.

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 conducts.

Answer 9

• Advertisment 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 advertisment.

Question 10

Give three examples of false impressions.

Answer 10

• Prices are mis-advertised.
• False lables.
• No refund signs
• Promises that will not be kept.

Question 11

Give examples of unfair trading practices.

Answer 11

• Offering gifts/prices without intending to supply them.
• Bait advertising.
• Misleading claims.
• Pyramid schemes.
• Accepting payment without intention of supplying the goods.

Question 12

If it is a major fault, who can decide the repair, refund, replace?

Answer 12

The consumer.

Question 13

If it is a minor fault, who can decide the repair, refund, replace?

Answer 13

The producer.

Question 14

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

Answer 14

You can go to either, the manufactor or the importer to have the good repaired, repaired or refunded.

Question 15

What must those providing services under the CGA do?

Answer 15

• Services must be provided with resonable care and skill.
• Services must give you, or do, what you asked.
• Services must be completed in a reasonable time, or by the agreed completion time or date you and the supplier set.
• You do not have to repay more than a reasonable price where a price has not been agreed upon.

Question 16

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

Answer 16

1. Fix the job at no cost.
   If not done in a reasonable time or supplier refuses to to fix it:
2. Get someone else to fix it or continue with the job and claim back the costs from the original supplier.
3. Cancel the contract for the service and:
   - refuse pay for the work done pr less than the agreed price.
   - if already paid ask to have some money refunded.