It is the responsibility of the business to return goods to the manufacturer for repair. If it
is a minor fault, the consumer has the right to have it repaired within' a reasonable
time. If it is not repaired within' a reasonable time, the consumer can request a refund.
Consumers are not intitle...
BME Exam | Questions with 100% Correct
Answers
It is the responsibility of the business to return goods to the manufacturer for repair. If it
is a minor fault, the consumer has the right to have it repaired within' a reasonable
time. If it is not repaired within' a reasonable time, the consumer can request a refund.
Consumers are not intitled to refund if they just change their mind or find the product
cheaper in another shop.
A product is faulty if:
- Does not do what it is supposed to do, example, TV doesn't display colour
- Has a defect, example, dial on a washing machine falls off
- Is damaged or scratched
- Is unsafe, example, sparks come out when plugged in
- Isn't durable, example, vacuum breaks after 3 times using
misleading and deceptive conduct - ANSWER -It is illegal for a business to
make statements that are incorrect or create a false impression on the product.
- A business must not make false or misleading claims about a products or
service's quality, value price, or benefits.
- It applies to labels and advertisements in print, television, social media, radio and
online.
- It also applies to what sales staff and managers say to customers.
- A focus of the ACCC and section 18 of the ACL is to prevent misleading and deceptive
conduct; to stop businesses lying to customers to get sales.
bait advertising - ANSWER When a company advertises a cheap product draws them in
but they have little to no stock
Upsell product version
Illegal: advertising product at a low price but sell it for
high or Having no stock
scientific claims - ANSWER Statements supported by data and research
- Statements that business' use when advertising
- Failure to disclose information = misleading
- Scientific claims must be backed up by proper research
- Any information about products must be accurate and truthful e.g. price, decription of
product, ingredients
- If untrue claims may be fined by ACCC
, fine print - ANSWER - Holds the details, terms and conditions of a product that is
often overlooked by consumers
- Fine print often has the effect of deceiving customers the offer is better than it
is e.g. "buy one get one free"
- In the fine print it might say you have to spend over a certain amount to get the
discount/free item
wrongly accepting payment - ANSWER - Organisations take money for goods and
services when they shouldn't
- Clients pay for goods or services they never received
e.g. payment error, fraud, dusputed transactions, errors in invoicing
- It is illegal when businesses accept the payment when consumers did not receive
what they purchased
offering gifts and prizes - ANSWER A business cannot offer gifts and prizes:
- If they no intention of providing it
- If they fail to provide it
- If they do not provide it in a time limit or reasonable time
- It is illegal to offer a gift if your force the consumer to pay delivery
sole trader - ANSWER - a business structure where an induvial runs or operates the
business on their own.
-Controls finances, keeps profit, takes losses, has full unlimited liability
advantages of sole trader - ANSWER -Keep
profits -Has full control
-Start up costs are low
-Maximum privacy
-Establishment and operation is simple
-easy to change your legal structure
disadvantages of sole trader - ANSWER -Is blamed for any disputes or mishaps,
- Deals with financial losses
-unlimited liability for debts as there's no legal distinction between private and
business assets
- capacity to raise capital is limited
-retaining high-calibre employees can be difficult
-Lack of work-life balance
differences between private companies and sole traders - ANSWER - a private
company is taxed as a separate legal entity and pays tax on its profits at the corporate
tax rate.
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