Consumer Protection

Question 1

When is a business not been ethically managed

Answer 1

when it is not providing quality goods to meet customer expectations

Question 2

Why do consumers need protection

Answer 2

Some businesses resort to dubious tactics to increase sales and revenue

Question 3

Give examples of unethical lengths businesses go to to increase revenue

Answer 3

selling poor quality good
Substandard services
Misleading information
Pressurized selling tactics

Question 4

What is in place to control how businesses conduct themselves and to protect consumers

Answer 4

Government passes laws and set up organisations for consumer protection

Question 5

Name 4 legislations passed by government

Answer 5

1 consumer rights act 2015
2 consumer credit Act 1974 and 2006
3 Consumer Protection from Unfair Trading Regulations 2008
4 Consumer Contracts (information, cancellation, and additional charges) regulations 2013

Question 6

What does consumer rights act 2015 cover

Answer 6

1 Purchase of goods services and digital content
2 each time a consumer buys a product they make a contract with the retailer
3 the act regulates the contract
4 it states all goods must be of satisfactory quality, fit for purpose for which they were bought and correspond with the description
5 If not consumer is entitled to a refund if they refuse they can be taken to court

Question 7

What does consumer rights act 2015 state

Answer 7

All services unless otherwise stated must be carried out at a reasonable price within reasonable time with reasonable care and skill

Question 8

What do consumer credit acts 1974 and 2006 control

Answer 8

The way businesses lending money operate.

Question 9

How do these acts control how money is lent

Answer 9

1 ensures the lender (creditor) gives key information to the borrower (debtor) before the contract is made
2 gives the debtor cooling off period after signing the credit contract- can change your mind within 14 days

Question 10

What information must the creditor give the debtor

Answer 10

1 interest rates
2 how much repayments will be
3 cancellation rights of debtor

Question 11

What is APR

Answer 11

annual percentage rate - tolls how much interest will be charged and hoe it is calculated and arrangement fees

Question 12

What does consumer protection from unfair trading refs 2008 do

Answer 12

makes it a criminal offense for a business to engage in unfair practices eg making false statements about a product, using aggressive sales techniques, misleading about price

Question 13

What does consumer contracts (cancellation and additional charges ) res 2013 do

Answer 13

protects customers who buy line or over the phone (distance sales) gives consumers cancellation period of 14 days cooling off with full refund

Question 14

What is the role of the ombudsman

Answer 14

offer complaints procedures for dissatisfied customers

Question 15

List some ombudsman and explain they work

Answer 15

1 health service ombudsman, energy ombudsman,
Once you have tried to resolve your dispute with the business following their complaints procedures contact the relevant ombudsman
They look at all written information provided by consumer and make a final decision that can only be overturned by a court

Question 16

What is the role of trading standards

Answer 16

All Las have one
They are responsible for checking local businesses comply with trading laws eg if a restaurant advertises locally sourced they check , also check no counterfeits are sold
Their officers can fine and imprison

Question 17

Who are CMA

Answer 17

competition and market authority set up bu=y government in 2014 to replace office of fair trading

Question 18

What is role of CMA

Answer 18

1 Attempts to ensure markets work well by ensuring businesses do not carry out anticompetitive business practices that restrict the competition in the market eg boycotting supplying retailers who stock competitors good
2 Also investigates proposed merges to ensure a merger doesn’t result in a company gaining such a large market share that it restricts competition
3 examine situations where companies act together to form an illegal cartel to limit competition in the industry

Question 19

What is competition policy

Answer 19

Laws put into place by government focused o controlling the power of big businesses so that they do not control price or amount produced

Question 20

Where can consumers get advice

Answer 20

citizens advice
Consumer line
Consumer rights

Question 21

What are ethics

Answer 21

things that are morally tight

Question 22

Give examples of ethical decisions made by a business

Answer 22

1 how they treat their customer
2 how they deal with suppliers
3 fair price
3 working conditions in overseas factories

Question 23

Give examples of things consumer law bans because they are unethical

Answer 23

1 giving false information about a product
2 saying free range when they are not
3 pressurizing a customer to buy
4 supplying poor quality goods

Question 24

Give an example where business ethics is difficult because it is based on opinion

Answer 24

Marketing - placing sweets near a checkout , some claim this is pester power as children will repeatedly ask parents as sweets are unhealthy this can be seen as unethical Others would argue parents have a choice and that they should educate their childen

Question 25

State a business who has tried to reinvent themselves because they have been labeled unethical

Answer 25

Mac Donald’s supersize was once a marketing winner but increased worries about obesity the campaign was dropped and more of their marketing now focuses on developing healthy meals

Question 26

Consumer protection

Answer 26

http://bit.ly/1QbAQYy