Sale Of Goods And Supply Act 1980

Question 1

When was the Sale of Goods and Services Act passed?

Answer 1

1980

Question 2

What must goods be because of the law?

Answer 2

Merchantable Quality,
Fit for purpose,
As described,
And must Match the Sample

Question 3

When does consumer have rights?

Answer 3

Online
When buying goods
When buying services

Question 4

What factors make a wise consumer?

Answer 4

They ask themselves:
Do I really need it?
Can I afford it?
Is it good value for money?
Can I get it cheaper elsewhere?
Are there hidden charges?
Is the product safe?
They get a receipt when they buy something.

Question 5

What is Impulse buying?

Answer 5

Impulse buying is the sudden unplanned decision when you buy something on the spur of the moment.

Question 6

What is False Economy?

Answer 6

False Economy is when we purchase an item but it turns out to be more expensive in the long run because it doesn’t last long and needs to be replaced sooner.

Question 7

What is Unit Pricing?

Answer 7

The unit price is the cost of a single amount of the product.

Formula: Unit Price = Price/Quantity

Question 8

What must we ask ourselves before buying a product in terms of Safety?

Answer 8

Does it have Instructions.
Who made the product?
Were they treated fairly?
What damage has been done to the environment in the making of this product?

Question 9

Who are Fair Trade?

Answer 9

Company’s that have the fair trade stamp on there product have paid a fair price to the manufacturers.

Question 10

Why should consumer’s always get a receipt for purchases?

Answer 10

A receipt is proof of your purchase.
Helps you make sure you were charged the correct amount.
Helps you keep track of spending.

Question 11

What does merchantable quality mean?

Answer 11

Means the goods must be of an acceptable standard based on the price.

Question 12

What is fit for purpose?

Answer 12

Means goods must do exactly as they are intended to do.

Question 13

What does as described mean?

Answer 13

Means the goods must be exactly as the packaging says or an employee says.

Question 14

Why does match the sample mean?

Answer 14

The real goods must be identical to the sample displayed in the shop.

Question 15

What rights do consumers have when buying services?

Answer 15

Supplier is qualified and has necessary skills.
Supplier provides proper care.
Materials used are of Merchantable quality.
Goods sold with the service are of merchantable quality.

Question 16

Give an example of a qualified person who provides a service?

Answer 16

A Doctor must have a degree in medicine.

Question 17

What is Proper Care?

Answer 17

Proper care is if a service is provided carelessly the buyer can demand a refund. E.g. A mechanic must be very careful when fitting a new brake pad in your car.

Question 18

Give an example of a material used in a service that is not of merchantable quality?

Answer 18

A hairdresser must use a suitable scissors for cutting hair rather than a rusty one.

Question 19

Give an example of a good sold with a service that must be of merchantable quality?

Answer 19

Shampoo sold in the barbers must be of merchantable quality.

Question 20

Who is responsible to resolve complaints?

Answer 20

The Retailer

Question 21

What is a guarantee?

Answer 21

A Guarantee is a promise by a manufacturer or company that will sort out any problems with a product or service within a fixed amount of time. It is usually free.

Question 22

What is a Warranty?

Answer 22

Warranty is like an insurance policy for which you must pay an additional charge.

Question 23

What are the three R’s?

Answer 23

Repair
Replacement
Refund

Question 24

What is a Refund?

Answer 24

The consumer gets back the full amount they paid for the product.

Question 25

What is a Replacement?

Answer 25

The consumer is given a perfect substitute for the damaged product sold by the retailer.

Question 26

What is Repair?

Answer 26

This means the retailer gets the fault with the product fixed for the consumer.

Question 27

Who is the consumer?

Answer 27

A consumer is someone who buys goods or services for their own use.

Question 28

What is a good?

Answer 28

A good is something you buy that you can touch or see.

Question 29

What is a service?

Answer 29

A service is something you pay to have done for you.

Question 30

What is a Credit Note?

Answer 30

A written document that gives you permission to spend a certain amount in that shop only. You don’t have to acceot a credit note.

Question 31

Give 3 examples of signs that are illegal to display in a shop.

Answer 31

No Refunds, Credit Notes Only, No Refunds on Sale Items

Question 32

What rights do Consuners have when buying goods online?

Answer 32

1. Right to a refund if goods are not delivered within 30 days.
2. 14 days to return product if you change your mind after delivery.
3. Right to cancel a service online. (E.g. 14 day cooling off period.)
4. Right to return products that don’t abide by the Sale of Goods and Services Act.