Exam (elaborations)
LPL4801 Assignment 1 Semester 2 2022
- Course
- Institution
This document contains solutions for LPL4801 Assignment 1 Semester 2 2022
[Show more]
Seller
Follow
Studyexcel1
Reviews received
Content preview
LPL4801 ASSESSMENT 01SEMESTER 2 – 2022
, Forever You (Pty) Ltd is a well-known clothing store in South Africa. They offer
store cards to customers who buy clothing on credit and are a registered credit
provider in terms of the National Credit Act 34 of 2005. When customers buy
clothing on credit, an interest rate of 20% per annum is charged on the
outstanding amount. Judy, a customer, opens an account on 1 May 2022 at
Forever You (Pty) Ltd. Based on her salary slips and the credit assessment
performed by Forever You (Pty) Ltd, she is allowed a credit limit of R5,000. On
the same day, she spends R5,000 on new clothes. She pays the first instalment
on 1 June 2022, but fails to make any further payments. You are acting as
Forever You (Pty) Ltd’s legal representative. It transpires that Judy has obtained
legal advice from Kenny Y Attorneys. The attorneys have addressed a letter to
your client with the following allegations:
That the credit agreement between Forever You (Pty) Ltd and Judy is a credit
facility in terms of the National Credit Act 34 of 2005, and that the interest rate
that is charged by your client is excessive, rendering the agreement between
your client and Judy null and void.
It is further alleged that the clothing was of bad quality and that Judy is entitled
to return the clothing in terms of the Consumer Protection Act 68 of 2008.
In the alternative, it is stated that your client entered into a reckless credit
agreement with Judy, rendering the credit agreement null and void.
(a) Advise your client in full whether the National Credit Act 34 of 2005 (the NCA)
is in fact applicable to the said agreement. (4)
(b) Advise your client in full whether the interest rate that was charged is allowed
under the NCA and, if not, the effect on the validity of the agreement. (4)
(c) Advise your client whether it is possible that the NCA and the Consumer
Protection Act 68 of 2008 can be applicable to this agreement. Also
remember to refer to applicable case law in your answer. (4)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Studyexcel1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.75. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
50843 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now