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Business Unit 3 P2
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Unit 3P2; describe the limitations and constraints of marketing.
Limitations and constraints are legal boundaries set to businesses in order to
work as a bottleneck as it prevents a business from providing its full potential,
it is restricted. Legal Limitations and constraints must be followed and
accepted by businesses, they cannot work around these laws or else it will be
illegal and could possibly be fined.
Sales of Goods Act 1979
This act was created in 1979 and is designed to protect consumers and sellers
from each other. The goods that have been listed by the seller must match the
description provided, be of acceptable quality and also fit for purpose (must
carry out the purpose it is intended to do).
1. 1) The good or service must match the description or the seller/firm will
be breaking the law and the consumer has the right to appeal.
2. 2) If faults weren’t provided the seller, the consumer can appeal as the
good was sold as of unsatisfactory quality.
3. 3) If the seller gave you assurances however were false, you have the
potential right to return it and claim your money.
An example of when a company was sued for the following law, Sales of Good
Act 1979;
In Feb 2016, Apple had claimed that the Apple Watch is scratch-resistant,
however Mr Cross (owner of a scratched apple watch) had ‘scratched’ his
watch and was told it was not covered by warranty. The seller, Apple, had
provided imperfect information as it did not match the description and as a
result MR Cross won a case against the company for breach of the Sale of
Goods Act.
Source: http://www.bbc.co.uk/news/uk-wales-mid-wales-35475433
The Consumer Protection from Unfair Trading Regulations 2008
This new regulation created in 2008 is produced in order to protect consumers,
from ambiguous or intimidating selling practices. A practice is considered
unfair when it fails to meet the standard of professional diligence, which is
usually expected from a trader. Some traders like to be biased and lead
customers towards purchasing products, customers should make their own
, decision whether they want to purchase a product or not, regardless of the
trader. Misleading information is consists of false information, some examples
are;
1. 1) Providing deceptive information about the main characteristics of the
product, or incorrect information about the trader himself(e.g. false
qualifications)
2. 2) Copying logos or slogans of large brands to a degree in which the
customer would get confused.
3. 3) When a firm’s commitment (statement) is untrue and have provided
false information to the buyer.
An example of when a company was sued for the following law; The Consumer
Protection from Unfair Trading Regulations 2008
According to Dailymail online, Tesco PLC had been sued £300,000 in August
2013 for misleading customers over half price strawberries offer. Customer
Daphne Smallman stood up to Tesco in a brawl over £1.99 punnets, Tesco had
increased prices to £3.99 in order to make this half price figure stand, in result
Daphne had taken Tesco to court and in result,
This was at odds with guidelines in the Consumer Protection from Unfair
Trading Regulations Act 2008. An offer price
should not carry on for a longer period than an item was sold at its full price.
Source - http://www.dailymail.co.uk/news/article-2397291/Tesco-fined-300-
000-misleading-customers-half-price-strawberries-offer.html
Consumer Credit Acts 1974 and 2006
A credit law which is created in order to provide consumer’s rights against
credit card companies. This act gives consumers a variety of rights against
companies that provide credit. This act dignifies conditions and procedures
which credit companies have to follow.
1) If a consumer purchases a product from a broad that eventually turns out to
be faulty, credit card companies must refund the money if the good is worth
more than £100 and less than £30,000 of big savings were misleading and it
has now been fined £300,000 and Tesco has admitted the claims and ordered
to pay £65,000 in costs.
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