Fair Trading Act

Question 1

What is puffery

Answer 1

Puffery is statements that are so ridiculous that no one could possibly believe them. The consumer law “let the buyer beware” applies to anyone stupid enough to buy the said product for the sole reason of growing wings.

Question 2

What does the fair trading act cover?

Answer 2

The fair trading act covers all advertising and selling of goods and services by people in trade. It does not cover private sales.

Question 3

What does the fair trading act not cover?

Answer 3

It does not cover private sales.

Question 4

What does the fair trading act prohibit

Answer 4

• Misleading and deceptive conduct
• False representations
• Unfair practices

Question 5

What is misleading or deceptive conduct

Answer 5

You have been mislead if the information you receive about goods or services gives you false impression.

Question 6

What is false representations

Answer 6

You have had a false representation made to you when the information you receive about goods or service is not true.

Question 7

What is unfair trading practices.

Answer 7

An unfair trading practice is a selling method which is misleading or unfair.

Question 8

What is a raincheck

Answer 8

A retailer can offer you a rain check. this means the shop will get more of the product they ran out of or a product of similar quality and value.

Question 9

What does cavet emptor mean?

Answer 9

Let the buyer beware. The consumer has the responsibility to be wise and careful when choosing to buy a good or service.

Question 10

Three examples of misleading or deceptive conduct.

Answer 10

• Advertisements misleading you about a product e.g. brass bed heads are actually brass plated.
• A salesmen not telling you about a good or service when you ask a question or statement e.g. does the car burn excess oil.
• A false impression about a job you are applying for.

Question 11

Three examples of false representation

Answer 11

• Advertising one price but charging a higher one
• Products labelled incorrectly i.e. genuine NZ product but label says made in China
• No refund signs in shops.
• Failing to provide the service you state.

Question 12

Unfair trading practice examples.

Answer 12

• Offering prizes without intending to supply as stated
• Bait advertising
• Pyramid selling
• Taking money without intending to supply good or service.