Legislation

Question 1

What is consideration?

Answer 1

Value given by both parties e.g supplier agrees to sell goods to customer then supplier is agreeing to deliver the goods and customer is agreeing to pay for goods

Question 2

What consideration must be ?

Answer 2

It must be sufficient but need not be adequate

Question 3

Type of contracts

Answer 3

A void contract
A voidable contract
An unenforceable contract
A frustrated contract

Question 4

What is the void contract?

Answer 4

It is one that cannot be enforced by law

Question 5

What is the voidable contract ?

Answer 5

It is a valid contract that can be nullified - One party is bound to a
contract but the other party is not, so can withdraw from the contract

Question 6

What is the unenforceable contract ?

Answer 6

It is one that is valid but if one party withdraws from the contract
the courts of law will not enforce them to meet the requirements of
the contract

Question 7

What is the frustrated contract?

Answer 7

It occurs if an unforeseen event either renders contractual obligations
impossible or radically changes the party’s principal purpose for entering into the contract

Question 8

Frustrated contracts could occur in the following circumstances….

Answer 8

1) item or building essential to the contract is destroyed though
no fault of either party
2) A law is passed subsequent to the formation of the contract which makes the contract illegal
3) A person or group under contract becomes unavailable though
death, illness or unavailability

Question 9

What is the contract?

Answer 9

It is a legally binding agreement between two parties

Question 10

4 ways an offer can be terminated

Answer 10

1) Revocation: means an offer is cancelled
2) Lapse of a specified time period
3) Counter offer: will be a rejection of fre original offer as a new is made
4) Acceptance will end the offer and form contractual obligations

Question 11

Trade Descriptions Act 1968 & 1972
- describe them

Answer 11

The 1968 Act makes it a criminal offence to apply a false or misleading description to goods and services
the 1972 Act requires that certain imported products should have their country of origin clearly displayed

Question 12

Unfair Contract Terms Act 1977

Answer 12

To ensure that unfair terms Are not included in the small print. Indemnity clauses ( business protect against its own negligence - seem to be unfair) are also covered
It is not possible for business to incorporate terms into a contract that would exclude themselves from legal liability for defective goods
This applies to business to business contracts

Question 13

Sale and Supply of Goods Act 1994

Answer 13

This Act governs contracts for the sale of goods
This applies to business to business contracts

Question 14

Sale and supply of Goods Act 1994 says that all products have to be …

Answer 14

Satisfactory quality
1) Be safe
2) Last for a reasonable amount
of time
3) be fit for their intended purpose
4) Have nothing wrong with them

Question 15

Consumer Rights Act 2015

Answer 15

This applies a business to consumer contract
It is offered more protection then businesses

Question 16

Late Payment of Commercial Debt ( Interest ) Act 1998

Answer 16

It gives small businesses the right to charge interest to larger companies who take a long period of time to pay them
The rate of interest is 8% , above the back of England’s base rate

Question 17

Late payment of Commuraice Debt (Interst) Act 1998
- Statutory compensation

Answer 17

up to £999.99 = £ 40.00
£ 1000 - £9999.99 = £ 70.00
£ 10000 + = £ 100.00

Question 18

Data Protection Act 2018

Answer 18

To restrict the use of data that is held about individuals
Tor apply to the storage of data of our customers and for credit customers

Question 19

Data Protection Act 2018 principles

Answer 19

1) Information must be processed lawfully I fairy and in a transparent manner
2) used for the declared purpose only
3) Limited to the data needed for the declared purpose
4) Accountk and up to date
5) Not supt for longer than necessary
6) Held securely
7) The Data Controller is accountable for compliance

Question 20

Data Protection Act 2018
Rights of the Data Subject

Answer 20

1) Right to be informed about the collection and use of their data
2) Right to access the data
3) Right to rectification of inaccurate data
4) Right to erasure ie the right to be forgotten
5) Right to restrict processing
6) Right to dath portability ie to obtain and reuse their data
7) Right to object
8) Rights in relation to automated decision making and profiling

Question 21

The Consumer Credit Act protects individuals who buy goods or services on their credit card for….

Answer 21

Over £100 but not more than £30000