Podcast
Questions and Answers
Which of the following scenarios would invalidate 'consent' in a contract?
Which of the following scenarios would invalidate 'consent' in a contract?
- Entering the agreement after carefully reviewing all terms and conditions.
- Accepting the offer after a period of negotiation with the other party.
- Agreeing to the contract while under the influence of alcohol. (correct)
- Seeking legal advice before signing the contract.
The principle of 'caveat emptor' provides the same level of protection to consumers purchasing second-hand goods as the Consumer Protection Act does for new goods.
The principle of 'caveat emptor' provides the same level of protection to consumers purchasing second-hand goods as the Consumer Protection Act does for new goods.
False (B)
Briefly explain how the Fair Trading Act protects consumers from misleading information.
Briefly explain how the Fair Trading Act protects consumers from misleading information.
The Fair Trading Act ensures consumers are not deliberately misled by false or deceptive claims about products or services, including promised prizes that are not fulfilled.
In a contract, the ______ is the payment or consideration exchanged between the parties.
In a contract, the ______ is the payment or consideration exchanged between the parties.
Match each consumer protection issue with the appropriate organization to seek help from:
Match each consumer protection issue with the appropriate organization to seek help from:
What is a key disadvantage of using hire purchase to acquire goods?
What is a key disadvantage of using hire purchase to acquire goods?
A verbal agreement is never a legally enforceable contract.
A verbal agreement is never a legally enforceable contract.
List three conditions goods must meet under the Consumer Protection Act.
List three conditions goods must meet under the Consumer Protection Act.
An agreement becomes a legally binding ______ when it meets all essential requirements and is enforceable by the courts.
An agreement becomes a legally binding ______ when it meets all essential requirements and is enforceable by the courts.
Which of the following best describes the role of the Ministry of Consumer Affairs?
Which of the following best describes the role of the Ministry of Consumer Affairs?
Flashcards
Contract
Contract
An agreement between two or more parties that is enforceable by law.
Offer
Offer
An invitation to buy something; the first step in forming a contract.
Consideration
Consideration
Something of value exchanged in a contract.
Consent
Consent
Voluntary and informed agreement to the terms of a contract.
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Consumer Protection Act - Goods
Consumer Protection Act - Goods
The product must not be faulty. It must match the description and serve its intended purpose and have spare parts.
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Hire Purchase
Hire Purchase
Making regular payments for goods, allowing use before complete payment.
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Fair Trading Act
Fair Trading Act
Ensures businesses provide truthful information about products and services.
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Fair Trading Act
Fair Trading Act
Protects consumers against misleading product claims and false advertising.
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Consumers Institute
Consumers Institute
Organisations that provides information to the public about the Global Trade Services.
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Disputes Tribunal
Disputes Tribunal
Resolves disputes of less than $30,000.
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- Consumer law is essential for ensuring an orderly way of life.
- A contract is an agreement between two or more parties that is enforceable by the courts.
Essential Parts of a Contract
- Offer: An invitation to buy something.
- Consideration: The payment made in a contract.
- Consent: Freely given acceptance of the contract terms.
- Legality: The contract must be within the boundaries of the law.
- Legal Capacity: Parties must be of age, sane, and sober to enter a contract.
- Acceptance: Agreement to the offer.
- Counter offers can occur during contract negotiations.
- Consent is invalid if given under influence, blackmail, or duress.
Consumer Protection Act
- Protects against unsuitable goods.
- Ensures goods are not faulty, match their description, fulfill their intended purpose and have spare parts available.
- Functions as a guarantee.
- Enables consumers to get a refund, repair, or replacement for faulty goods.
- Caveat emptor (buyer beware) applies to second-hand goods.
Hire Purchase
- Requires regular payments for goods.
- Advantage: Use of the product before it is fully paid.
- Disadvantage: Inflation can increase the total payment amount.
- Goods can be repossessed if payments are not made.
Fair Trading Act
- Protects consumers against misleading products.
- Consumers must not be deliberately misled.
- Promised prizes must be fulfilled.
- Information about goods must be truthful.
- The Commerce Commission addresses issues related to the Fair Trading Act.
Consumer Support
- Ministry of Consumer Affairs: Provides assistance with the Consumer Guarantees Act.
- Commerce Commission: Provides assistance with the Fair Trading Act.
- Disputes Tribunal: Handles disputes involving amounts less than $30,000.
- Lawyers: Handle major claims and broken contracts.
- Consumers Institute: Offers public information on Global Trade Services.
- Ombudsman: Assists with issues related to Government Departments.
- Citizens Advice Bureau: Provides general advice and support.
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