Consumer Legislation 2

Question 1

Law of contract

Answer 1

1. Offer
2. Acceptance
3. Intention to contract
4. Capacity to contract
5. Consent to contract
6. Consideration
7. Legality of form
8. Legality of purpose

Question 2

Law of contract => offer

Answer 2

A clear indication of a party’s willingness to enter into an agreement under specified terms.

Question 3

Law of contract => acceptance

Answer 3

The party receiving the offer accepts all terms of the offer as it stands, either orally, in writing or by conduct.

Question 4

Law of contract => intention to contract

Answer 4

Both parties must be aware that they are entering into a legally binding agreement that could see them in court if they fail to keep their side of the agreement

Question 5

Law of contract => capacity to contract

Answer 5

All people and organisations have the legal right to enter into a legally binding business contract
Except:
• minors
• People of unsound mind
• bankrupt individuals

Question 6

Law of contract => consent to contract

Answer 6

The parties entering the contract must do so voluntarily with full knowledge of all elements of the contract

Question 7

Law of contract => Consideration

Answer 7

Each party must give something of value to the other party. Both parties must gain from the contract

Question 8

Law of contract => legality of form

Answer 8

Certain contracts must be in writing if they are to be legally valid

Question 9

Law of contract => legality of purpose

Answer 9

A legally valid contract cannot exist for something illegal or itself involve breaking the law

Question 10

Termination of a contract

Answer 10

1. Performance
2. Agreement
3. Frustration
4. Breach of contract

Question 11

Termination of a contract => performance

Answer 11

Both parties to the contract carry out their duties as required by the contract until it’s completed.

Question 12

Termination of a contract => agreement

Answer 12

The parties may agree to end the contract by mutual consent wether or not the purpose of the contract has been achieved.

Question 13

Termination of a contract => frustration

Answer 13

An unforeseen event prevents the contract from being completed

Question 14

Termination of a contract => breach of contract

Answer 14

If one of the parties does not perform their side of the contractual obligation i.e. does not honour the promises made the contract is said to have been cancelled

Question 15

Remedies for breach of contract

Answer 15

• rescind the contract
• seek financial compensation (damages)
• specific performance

Question 16

Remedies for breach of contract => rescind the contract

Answer 16

The contract is cancelled. Both parties return to the position they were in before they become involved in the contract

Question 17

Remedies for breach of contract => seek financial compensation (damages)

Answer 17

The injured party brings the party that broke a condition of the contract to court in the hope that the judge will order financial compensation to be paid to the injured party

Question 18

Remedies for breach of contract => specific performance

Answer 18

The party in breach of a contract is ordered by a court of law to carry out its agreed contractual obligations

Question 19

Conflict between consumers and retailers may be caused by:

Answer 19

• misleading advertisement
• incorrect price or hidden costs
• poor quality goods or services
• poor customer service

Question 20

Non-legislative

Answer 20

Not using and law or body set up under a law

Question 21

Legislative

Answer 21

Based on statutory law

Question 22

Non-legislative methods of resolving consumer conflict

Answer 22

1. Meet with the retailer
2. Letter of complaint
3. Enlist help from a third party

Question 23

Non-legislative methods of resolving consumer conflict => meet with the retailer

Answer 23

As soon as the problem arises, the consumer should arrange to meet with the manager and explain the problem clearly and how they would like the problem to be resolved

Question 24

Non-legislative methods of resolving consumer conflict => letter of complaint

Answer 24

If the meeting with the retailer in unsatisfactory, the consumer could write a formal letter of complaint or an email

Question 25

Non-legislative methods of resolving consumer conflict => enlist help from a third party

Answer 25

If the meeting with the retailer and letter of complaint fail to resolve the problem the consumer can seek advice from a third party e.g the Consumers Association of Ireland (CAI)

Question 26

Consumers association of Ireland

Answer 26

A consumer interest group, it’s role is to inform, promote and protect the interests of consumers

Question 27

Legislative methods of resolving consumer conflict

Answer 27

1. Sales of goods and supply of services act 1980
2. Consumer protection act 2007
3. Competition and consumer protection commission (CCPC)
4. The small claims procedure at the district court
5. Office of the ombudsman
6. Financial services and pensions ombudsman (FSPO)

Question 28

Sale of goods and supply of services act 1980

Answer 28

• the legal right of consumers when they purchase goods or services
• the legal responsibilities of retailers to consumers
• the kinds of legal redress available

Question 29

Legal rights of consumers

Answer 29

• goods must be of merchantable quality
• goods must be fit for the purpose intended
• goods sold must be as described or be the same as the sample
• services must be provided by a qualified person

Question 30

Legal responsibilities of retailers

Answer 30

• the retailer has responsibilities
• unsolicited goods/ inertia selling
• guarantees
• signs limiting consumer rights

Question 31

Redress

Answer 31

• refund
• repair
• replacement

Question 32

Consumer protection act 2007

Answer 32

Protects the consumer from unfair business-to-consumer commercial practices through a variety of measures

Question 33

Unfair business-to-consumer commercial practices

Answer 33

• false or misleading advertising
• false or misleading claims about prices
• false product descriptions
• engaging in aggressive practices

Question 34

Competition and consumer protection commission

Answer 34

• informs consumers of their rights and can issue fines and penalties where these are breached
• enforces product safety regulations according to Irish EU standards
• advises the government on consumer rights and works to preserve competition in Ireland

Question 35

The small claims procedure at the district court

Answer 35

Deals with consumer complaints relating to goods or services purchased for private use up to maximum value of €2000.

Question 36

How does the smalls claims procedure work

Answer 36

Step 1: submits an application containing all the details
Step 2: small claims registrar
Step 3: hearing at the district court
Step 4: appeal

Question 37

Advantages of small claims procedure

Answer 37

• inexpensive/ low cost (€25)
• no solicitors (doesn’t have to pay for legal representation)
• fast and quick resolution (a local hearing can lead to the complaint being resolved quickly)

Question 38

Limitations of the small claims procedure

Answer 38

• maximum value (only deals with complaints up to €2000)
• no solicitors (the claimant may not have the necessary legal knowledge to win the claim)
• decisions are not legally binding
• appeals expense (if decision is appealed and goes to court it may become quite expensive)

Question 39

Office of the ombudsman

Answer 39

Examines complaints from members of the public who believe they have been treated unfairly by public service providers or public bodies

Question 40

Financial services and pensions ombudsman (FSPO)

Answer 40

An independent, fair and free service that deals with complaints from consumers against financial service providers and pension providers