Ch 2. Resolving Conflict in the Marketplace Flashcards
(48 cards)
1
Q
A contract
A
- A legally binding agreement that can be enforced in a court of law
2
Q
The Law of Contract
A
- Sets out the rules for proving when a contract exists and when it is terminated
3
Q
8 elements of a legally valid contract
A
- Offer
- Acceptance
- Consideration
- Intention to contract
- Consent to contract
- Legality of form
- Legality of purpose
4
Q
3 ways an offer is made
A
- Verbally
- In writing
- By conduct
5
Q
3 ways an offer is terminated
A
- Revoked
- Not accepted in time
- Rejected
6
Q
Revoked
A
- Withdrawn before the other party has accepted it
7
Q
An invitation
A
- An invitation to a customer to make an offer which can be accepted or rejected
8
Q
Acceptance
A
- The other person agrees to all the terms of the original pffer without any conditions
9
Q
3 ways an offer can be accepted
A
- Verbally
- In writing
- By conduct
10
Q
Consideration
A
- What each party offers the other as evidence of their agreement
11
Q
Intention to Contract
A
- The parties to the contract must have intended to create a legally binding contract that could end up in court if not fulfilled
12
Q
2 contract law assumptions
A
- Business agreements are intended to be legally binding
- Social and private agreements are not intended to be legally binding
13
Q
Consent to Contract
A
- Each party must give genuine agreement of their own free will to the making of the contract
14
Q
Consent to contract may not exist if (3)
A
- A person is persuaded against their will by intimidation or against their will
- A person enters as a result of deliberate misrepresentation or dishonesty by others
- A genuine mistake happened
15
Q
Capacity to Contract
A
- People agreeing to the contract must have the legal right to do so
16
Q
People who don’t have the legal right to enter a contract (3)
A
- Under 18’s
- Intoxicated, insane or of unsound mind
- Companies outside of its legally stated purpose
17
Q
Legality of Form
A
- Certain contracts must be drawn up in writing before they can become legally binding
18
Q
Legality of Purpose
A
- For a contract to be legally binding
- it must be for a legal purpose
- not involve committing any crime or breaking any law
19
Q
Termination of Contract
A
- It can no longer be legally enforced
20
Q
Contracts can be terminated by (4)
A
- Performance (obligations fulfilled)
- Agreement
- Frustration (accident)
- Breach of contract (condition broke)
21
Q
A condition
A
- An essential element of a contract
22
Q
A warranty
A
- A non-essential element of a contract
23
Q
Breach of Contract Remedies (3)
A
- Cancellation
- Compensation
- Specific performance
24
Q
Specific performance
A
- Getting the court to order the other party to keep their side of the agreement
25
Caveat Emptor
- Legal term
| - "Let the buyer beware"
26
2 legislations protecting consumers
- The Sale of Goods and Supply of Services Act 1980
| - The Consumer Protection Act 2007
27
The Sale of Goods and Supply of Services Act 1980 sets out (3)
- The legal right of consumers when they purchase goods
- The legal responsibilities of retailers to consumers
- The legal remedies available
28
The legal rights of consumers (6)
- Goods sold must be of merchantable quality
- Goods sold must be fit for the purpose intended
- Goods sold must be as describes
- The buyer is entitled to legal ownership and quiet possession
- Services must be provided by a competent person with skill and using due care and diligence. Materials used of quality
- Consumers renting or buying on hire purchase have the same rights
29
Merchantable Quality
- Goods sold to consumers must be reasonably durable
30
Quiet Possession
- The buyer being able to use the goods as they wish
31
The legal responsibilities of retailers (6)
- They are legally responsible for defects
- They must respect all the legal rights of customers
- Complaints must be dealt with
- Signs pretending to limit the retailer's liability are illegal
- Any product guarantees offered
- Illegal to demand payment for unsolicited goods sent to consumers
32
Unsolicited goods
- Goods received by an individual who did not agree to receive them
33
Legal remedies for the fault of goods (3)
- Repair
- Replacement
- Refund
34
Consumer Protection Act 2007 (2)
- Protects consumers from unfair business-to-consumer commercial practises.
- Bans practises that are unfair, misleading or aggressive towards consumers and are likely to impair a consumers choice.
35
What does the Consumer Protection Act 2007 prohibit (4)
- False product descriptions
- False prices
- False or misleading advertising
- Businesses from engaging in aggressive practices
36
What did the Consumer Protection Act 2007 establish
The National Consumer Agency
37
The National Consumer Agency
The State agency that promotes consumers' awareness of their legal rights and ensures that consumer legislation is obeyed by businesses
38
What is the NCA responsible for (5)
- Enforcing consumer laws by investigating, issuing fines and bring offenders to court
- Providing information and advice to the public on their rights
- Providing information and advice to businesses on their legal responsibilities
- Advising the government on how to ensure the welfare of consumers is protected
- Publishing a Consumer Protection List of businesses found breaching consumer law
39
Non-Legislative ways of resolving the issue (2)
- Talk to the retailer
| - Seek help from a third party
40
Best way to talk to the retailer (4)
- Know your legal rights
- Bring along a receipt as proof of purchase
- Complain in a friendly but firm manner
- Write a formal letter if talking doesn't work
41
Organisations that assist in resolving a consumer conflict (5)
- National Consumer Agency
- Industry trade associations
- Consumers' Association of Ireland
- Financial Service Ombudsman for complaints concerning financial institutions
- Office of the Ombudsman for the Public Service
42
Consumers Association of Ireland
Non-commercial organisation set up to protect and promote the interests of consumers
43
Main activities of the Consumers Association of Ireland (4)
- Publishing reports and surveys into consumer products and services
- Highlighting problem areas where consumers interests are being neglected and seeking improved standards
- Running a consumer advice service
- Lobbying the government for changes and improvements to consumer rights legislation
44
Financial Services Ombudsman (2)
- Resolves complaints against financial institutions (insurance companies, banks etc.)
- Decisions made are binding on the institutions
45
The Office of the Ombudsman for Public Services
- Deals with consumer complaints against State-owned organisations, govt. departments and local authorities
- It has no power to force its recommendation to be accepted.
46
The Small Claims Court (2)
- Provides an inexpensive, fast and easy way for consumers to resolve disputes without the need to employ a solicitor
- Cannot force an agreement but effective at persuading sellers to respect consumer rights
47
2 Advantages of Small Claims Court
- Faster than going to the district court
| - Low cost, small fee, no solicitors
48
3 Disadvantages of Small Claims Court
- Only deals with complaints up to a limited value
- Recommendation is not legally binding
- If you are not happy with the outcome, you will have to go to for a full court hearing in the District Court or higher court
