LPL4801 Assignment
1 Semester 2 2024
(526694) - DUE 26
August 2024
QUESTIONS AND ANSWERS
, LPL4801 Assignment 1 Semester 2 2024 (526694) - DUE 26 August 2024
Question
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 2024 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 2024, 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)
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller msmartie11. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R48,41. You're not tied to anything after your purchase.