Fair Trading Act Flashcards
What is puffery?
Puffery is statements that are so ridiculous that no one could possibly believe them. The consumer law “let the buyer beware” applies to anyone stupid enough to buy the said product for the sole reason of growing wings.
What does the fair trading act cover?
The fair trading act covers all advertising and selling of goods and services by people in trade.
What does the fair trading Act NOT cover?
It does not cover private sales.
What does the fair trading act prohibit?
Misleading and deceptive conduct. False representations and unfair practises.
What is Misleading or deceptive conduct?
You have been mislead if the information you received about the goods and services gives you a false impression.
What is Unfair trading practices?
An unfair practise is selling a method which is misleading or unfair. Some of the following practises are illegal under the Fair Trading Act.
What is a Raincheck?
A retailer can offer you a ‘raincheck’. This means the shop will get more of the product they ran out of or a similar quality and value and sell it to you at the special advertise price. It’s a good idea to ask for a raincheck.
What does Cavet Emptor mean?
Let the buyer beware. The consumer as the responsibility to be wise and careful when choosing to buy a good or service.
3 examples of misleading or deceptive conduct
Advertisements misleading you about a product. Brass Bed heads are actually Brass Plated.
A salesman NOT telling you about goods or service when you ask a question or statement. eg. Does the car burn oil?
A false impression about a job you are applying for.
3 examples of false representation
Advertising 1 price but charging a higher one
Products labelled incorrectly -made in France label but made in Korea.
No refund signs in shops.
failing to provide the service you state. eg. city wide repairs.
Unfair trading practice examples.
Offering prises without intending to supply as stated.
Bait advertising.
Pyramid selling
Taking money without intending to supply good or service.
