Consumer Protection Act Quiz
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Questions and Answers

What should happen in case of inconsistency between provisions of this Act and another Act not mentioned in subsection (8)?

  • The provision from this Act applies only.
  • The provision that extends greater protection to the consumer applies. (correct)
  • There are no provisions for resolving such inconsistencies.
  • Both provisions apply but contradict each other.

    • The NCT/court must choose the meaning of a provision that promotes the spirit and purpose of the CPA.

    True

    What is the specific application of the CPA in relation to hazardous chemical products?

    Only the provisions relating to consumer redress apply.

    Consumers have a right to _____ under the law.

    <p>equality</p> Signup and view all the answers

    Match the following subsections with their main focus:

    <p>S2(9) = Inconsistencies between Act provisions S4(3) = Preferred meanings of provisions Consumer redress = Hazardous chemical products Right to equality = Consumer rights overview</p> Signup and view all the answers

    What does section S69(d) emphasize regarding consumers' rights to seek court redress?

    <p>It should not be interpreted as excluding consumers' right to court redress.</p> Signup and view all the answers

    The First Engineering 2022 case determined that consumers can be deprived of their right to approach the court.

    <p>False</p> Signup and view all the answers

    What was the main conclusion of the Motus Corporation v Wentzel 2021 case regarding consumer rights?

    <p>Consumers should not be deprived of the right to approach the court for common law remedies.</p> Signup and view all the answers

    S69 refers to consumers pursuing all other remedies to other __________ legislation.

    <p>consumer protection</p> Signup and view all the answers

    Match the following cases with their main focus on consumer rights:

    <p>Motus Corporation v Wentzel 2021 = Consumers' right to court redress First Engineering 2022 = Enforcement of common law rights NCA = Measures on reckless credit and over-indebtedness Consumer Protection Act = Consumer rights protection mechanisms</p> Signup and view all the answers

    Which of the following is NOT a situation where a supplier may not treat a person differently due to unfair discrimination?

    <p>Offering discounts based on loyalty</p> Signup and view all the answers

    According to Section 8 of the CPA, discriminatory conduct is prohibited only when dealing with individual consumers.

    <p>False</p> Signup and view all the answers

    What does Section 8(4) of the CPA allow courts to consider?

    <p>Conduct between a supplier and a consumer not contemplated in section 8.</p> Signup and view all the answers

    A supplier may not interact with the consumer in a manner that amounts to unfair discrimination when _____ at their place of business.

    <p>determining aspects of costs</p> Signup and view all the answers

    Match the following actions with their relevant sections in the CPA regarding unfair discrimination:

    <p>Assessing ability to meet obligations = S8(2) Determining whether to continue with agreement = S8(3) Evaluating compliance = S8(4) Reporting of personal info = S8(3)</p> Signup and view all the answers

    What is a key ground for differential treatment allowed for suppliers?

    <p>Discrimination based on reasonableness</p> Signup and view all the answers

    Suppliers are permitted to exercise their rights in a manner that constitutes unfair discrimination.

    <p>False</p> Signup and view all the answers

    What does the CPA stand for?

    <p>Consumer Protection Act</p> Signup and view all the answers

    What must a service provider (SP) disclose to a consumer before charging for an estimate?

    <p>The price for preparing an estimate</p> Signup and view all the answers

    What must a supplier not do according to S20(6)?

    <p>Attempt to collect payment unless it falls under S20(6)</p> Signup and view all the answers

    A consumer has the right to cancel any advance booking for goods or services under the CPA.

    <p>True</p> Signup and view all the answers

    A supplier can charge a fee for goods that are unopened and in their original packaging.

    <p>False</p> Signup and view all the answers

    What information must be included in the estimate document?

    <p>Breakdown and total amount, nature and extent of repair, period of validity, and collection period.</p> Signup and view all the answers

    What is the consumer's responsibility when returning goods according to S20(4) of the CPA?

    <p>The consumer must return goods at their own risk and expense.</p> Signup and view all the answers

    If a consumer opens the original packaging of a product, the supplier may charge a reasonable fee for _______.

    <p>use of goods</p> Signup and view all the answers

    An estimate becomes invalid after a certain period, known as the period of __________.

    <p>validity</p> Signup and view all the answers

    Match the following CPA sections with their descriptions:

    <p>S15(3) = SP should not charge for preparing an estimate S15(4) = Charges may exceed the estimate only with consumer consent S17(1) = Cancellation rights do not apply to franchise agreements S17(2) = Consumers can cancel advance bookings for goods/services</p> Signup and view all the answers

    In the case of Mosaka v Bryanston Executive Cars CC, what did Mosaka buy?

    <p>A second-hand BMW 523i</p> Signup and view all the answers

    Mosaka successfully returned his vehicle after identifying faults through inspection.

    <p>False</p> Signup and view all the answers

    What must a service provider do if the estimated charges exceed the initial estimate?

    <p>Inform the consumer and obtain authorization</p> Signup and view all the answers

    Consumers can be charged for any diagnostic work needed to prepare an estimate unless the price is disclosed in advance.

    <p>True</p> Signup and view all the answers

    According to section 16, suppliers must inform consumers of their ______ right.

    <p>cooling-off</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>S20(6) = Conditions for charging fees on returned goods S20(4) = Consumer's risk and expenses on return S16 = Cooling-off right for consumers DEKRA report = Inspection to assess vehicle faults</p> Signup and view all the answers

    List one exception where the right to cancel does not apply.

    <p>Franchise agreement or special-order goods.</p> Signup and view all the answers

    Which of the following practices is prohibited under S29(1) of the CPA?

    <p>Marketing goods that are false and misleading</p> Signup and view all the answers

    Bait marketing is allowed only if the supplier states the limit on availability when marketing.

    <p>True</p> Signup and view all the answers

    What is the primary purpose of bait marketing?

    <p>To draw consumers to buy other goods after advertising a specific item at a discounted price.</p> Signup and view all the answers

    Under S30(1) of the CPA, a supplier may not advertise goods at a price that misleads or deceives the __________ of goods at that price.

    <p>availability</p> Signup and view all the answers

    Match the following marketing types with their descriptions:

    <p>Bait Marketing = Advertising specific goods at a discounted price to draw customers in Negative Option Marketing = Agreement that automatically takes effect unless declined Fair and Responsible Marketing = Adhering to truthfulness and non-deceptiveness in advertising Defence against Contravention = Suggesting another supplier at the same price within reasonable time</p> Signup and view all the answers

    Which section of the CPA is concerned with fair and responsible marketing?

    <p>S29</p> Signup and view all the answers

    Suppliers can use negative option marketing without any restrictions.

    <p>False</p> Signup and view all the answers

    What does S30(3) of the CPA provide to a supplier in terms of contravention claims?

    <p>It provides a defense if another supplier is suggested within a reasonable time at the same price and the consumer unreasonably refuses or accepts.</p> Signup and view all the answers

    Study Notes

    Consumer Protection Law - Historical Aspects

    • The Industrial Revolution, spanning the 18th and 19th centuries, led to mass production and a rise in average income and buying power.
    • Improved infrastructure and communication methods facilitated the development of a more complex consumer market.
    • Consumer protection regulation emerged in the 20th century as a direct result of the Industrial Revolution.

    Consumer Market Massification

    • The complexity of goods increased, making it harder for consumers to evaluate features.
    • Mass distribution led to new marketing and advertising techniques.
    • Profit maximization was a primary driver in this era.

    Molony Committee Findings

    • The Molony Committee identified several challenges faced by consumers: including the increasing complexity of goods and services, vulnerability, reluctance to pursue claims, and inadequate support systems.
    • It highlighted the inadequacy of consumer organizations and law enforcement.

    Impact of the Constitution

    • Consumer protection is linked to the constitutional right to dignity (section 10).
    • Constitutional democracy fostered new approaches to private laws (family law, property law, and delict).
    • However, the application of constitutional justice remains slow in areas like contract and consumer law.
    • The classical model of contract law (with principles like party autonomy, freedom of contract, and pacta sunt servanda, is contrasted with constitutional considerations.

    Procedural vs. Substantive Fairness

    • Procedural fairness emphasizes fair circumstances for contract formation, promoting transparency and balancing the interests of both consumers and suppliers.
    • Examples in the CPA include information obligations and prohibitions against unconscionable or misleading conduct.
    • Substantive fairness focuses on protecting consumer interests in the context of contracts, considering social, economical, or physical impacts; it promotes fairness and justice.
    • It includes the notion of listing and banning certain terms and conditions.

    Study Unit 3: Application of the CPA - Repealed Acts

    • The Consumer Protection Act (CPA) superseded previous consumer protection legislation, repealing, amongst others, the Lotteries Act 1997 and the Business Names Act 1960, thereby regulating consumer protection in South Africa.

    Study Unit 3: Application of the CPA - Definitions

    • Agreement: A legally binding relationship between two or more parties.
    • Business day: Any day excluding any public holiday, Saturday, or Sunday.
    • Consideration: Anything of value exchanged for goods or services.
    • Consumer: A person purchasing goods or services or acting as a beneficiary of a transaction.

    Study Unit 3: Application of the CPA - Purpose of the Act

    • The CPA aims to promote and advance consumers' rights.
    • It establishes a fair and responsible framework for the consumer market.
    • It protects vulnerable consumers.
    • It promotes fair business practices.
    • It aims to improve consumer awareness and information.

    Study Unit 4: Right to Equality

    • Consumers have a right to equal treatment in the consumer market.
    • Suppliers may not unfairly discriminate against consumers.
    • Examples of discrimination prohibited in the act are unequal access to goods/services, priority of supply, different pricing for different demographics or groups, or exclusion of groups from the supply of goods/services.

    Study Unit 5: Right to Privacy, Direct Marketing & Cooling-off Right

    • Consumers have a right to privacy in direct marketing.
    • Suppliers are restricted from engaging in direct marketing during prohibited periods.
    • The cooling-off period allows the consumer to rescind a transaction.
    • Conditions for the cooling-off right to apply and its exceptions need to be considered.

    Study Unit 6: Right to Choice

    • Consumers have a right to choose whether they want different goods/services.
    • If a supplier makes a purchase condition, it must be justifiable (Convenience outweighs the limitation to the consumer's right of choice; the bundling results in an economical benefit for the consumer; or Bundling of goods/services separately and at individual prices).
    • The Act also provides protection relating to pre-authorisation for repair and maintenance services,

    Study Unit 7: Right to Fair and Responsible Marketing

    • Marketing of goods or services may not be false or misleading.
    • Bait marketing is prohibited.
    • Negative option marketing is restricted.

    Study Unit 8: Right to Fair and Honest Dealing

    • Consumers have a right to fair and honest contractual dealings.
    • Unconscionable conduct is prohibited.
    • False, misleading, or deceptive representation is prohibited..

    Study Unit 9: Unlawful Provisions

    • A credit agreement must not contain an unlawful provision.
    • Unlawful provisions are prohibited under the Act.

    Study Unit 10: Consumer's liability, interest, charges and fees

    • The Act provides protections/limitations for consumers around interests and charges,

    Study Unit 11: General over-indebtedness

    • A consumer is considered over-indebted if they have difficulty meeting their credit commitments based on their financial means, prospects, and obligations- having regard to the probable propensity.

    Study Unit 12: The rescission of credit agreements(the cooling-off right)

    • Consumers have the right to rescind/cancel a credit agreement without reason within a certain time limit.
    • The consumer is entitled to a refund of amounts paid with a certain time limit.
    • The creditor has a duty to act reasonably when returning the goods or amounts.

    Study Unit 13: The early termination of credit agreements

    • Debtors are entitled to advance payment/settlements related to an agreement.
    • Unjustifiable charges during a termination period are prohibited

    Study Unit 14: Debt enforcement by repossession or judgment

    • Credit providers have to follow legal procedures to enforce payments
    • The act regulates the enforcement process and debt review process to avoid any conflicts.

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    Related Documents

    CPA Exam Notes PDF

    Description

    Test your knowledge on the provisions of the Consumer Protection Act (CPA) and its application to hazardous chemical products. This quiz covers consumer rights, notable court cases, and the resolution of inconsistencies between the CPA and other legislation. Assess your understanding of key concepts and case outcomes related to consumer protection.

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