Exam (elaborations)
LML4807 EXAM PACK 2024/2025
- Course
- LML4807 (LML4807)
- Institution
- University Of South Africa
LML4807 EXAM PACK 2024 QUESTIONS WITH COMPLETE ANSWERS
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[Company name]LML4807 EXAM
PACK
2024/2025
QUESTIONS WITH DETAILED ANSWERS
Joe Bishop
[Date]
,L
LML4807 EXAM PACK 2024
Briefly explain the following concepts:
1.1 On – us payments. (2)
1.2 Negative option marketing. (2)
1.3 Electronic fund transfer at point of sale (EFTPOS).
(2)
1.4 An electronic purse. (2)
1.5 Dealing at arm’s length in relation to credit agreement. (2)
1.6 Two-party credit cards. (3)
1.7 Advances against fixed deposits. (3)
1.8 Depositum. (4)
[20]
1.1 On-us payments (2 marks):
These are transactions where both the payer and the payee hold accounts within the same financial
institution. Since the accounts are within the same bank, the payment process is quicker and involves
fewer intermediaries.
1.2 Negative option marketing (2 marks):
This is a marketing strategy where consumers are automatically enrolled in a product or service unless
they actively opt out. The onus is on the consumer to decline, rather than to accept, the offer.
1.3 Electronic fund transfer at point of sale (EFTPOS) (2 marks):
EFTPOS refers to the electronic transfer of funds during a purchase at a retailer’s point of sale. The
payment is made by directly debiting the buyer's bank account through the use of a debit or credit card.
1.4 Electronic purse (2 marks):
An electronic purse is a prepaid card or digital wallet that stores electronic money. Consumers can load
money into the purse and use it to make small transactions, often without needing a bank account.
1.5 Dealing at arm’s length in relation to credit agreements (2 marks):
This refers to a transaction where both parties act independently and in their self-interest, without any
special relationship influencing the terms. This ensures that the terms of the credit agreement are fair
and market-based.
, 1.6 Two-party credit cards (3 marks):
A two-party credit card system involves only the cardholder and the card-issuing bank. The bank
provides credit to the cardholder, who uses the card to make purchases directly with merchants who
accept that particular card.
1.7 Advances against fixed deposits (3 marks):
This refers to loans or advances given by a bank to a customer against the security of their fixed deposit.
The deposit acts as collateral, and the loan amount is typically a percentage of the deposit value.
1.8 Depositum (2 marks):
Depositum is a legal term referring to the deposit of something with another person or institution for
safekeeping. It is generally understood as a contract of bailment, where the depositor entrusts an item to
another party for storage or protection.
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QUESTION 2 (Your answer should not exceed 3 typed or 4 hand-written
pages)
Read the following facts and answer the questions that follow:
Traders CC holds a bank account with Ace Bank. An employee of Traders CC,
Kenneth, was permitted to receive information regarding the finances of the bank
account via sms and through other communication methods from Ace Bank. When
Kenneth resigned as an employee, Traders CC requested Ace Bank to refrain from
sending any further communications concerning Traders CC’s bank account to
Kenneth. It has now come to Traders’ attention that despite the request, Kenneth
still receives communication from
Ace Bank regarding the affairs of Trader CC’s bank account.
2.1 Presume that there is a contract in place between Traders CC and Ace Bank.
Identify and briefly explain the type of contract relevant to the facts above.
(2)
2.2 With reference to the facts above, identify what type of duty/duties Ace Bank
has towards their customer, Traders CC. (2)
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