Fair Trading Act

Question 1

What is Puffery?

Answer 1

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.

Question 2

What does the Fair Trading Act cover?

Answer 2

Covers all advertising and selling of goods and services by people in trade

Question 3

What does the Fair Trading Act not cover?

Answer 3

It does not cover private sales

Question 4

What does the Fair Trading Act prohibit?

Answer 4

• Misleading and deceptive conduct
• False representations
• Unfair practices

Question 5

What is misleading or deceptive conduct?

Answer 5

You have been misled if this information you receive about goods or services gives you a false impression

Question 6

What is False Representations?

Answer 6

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

Question 7

What is Unfair trading practices?

Answer 7

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

Question 8

What is a Rain check?

Answer 8

A retailer can offer you a “rain check”. 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 rain check.

Question 9

What does Cavet Emptor mean?

Answer 9

Let the buyer beware. The consumer has the responsibility to be wise and careful when choosing to buy a good or service.

Question 10

3 Examples of Misleading or Deceptive Conduct.

Answer 10

• Advertisements misleading you about a product, eg; Brass Bed heads are actually Brass plated.
• A salesman not telling you about a good 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

Question 11

3 Examples of False representation

Answer 11

• Advertising 1 price but charging a higher one
• Products labelled incorrectly eg; Labelled “Made in France” but actually made in Korea.
• No refund signs in shops

Question 12

Unfair Trading Practice examples

Answer 12

• Offering prizes without intending to supply as stated
• Bait advertising
• Pyramid Selling
• Taking money without intending to supply good or service.