Chapter 2- Resolving Conflict In The Marketplace

Question 0

What is a law of contract?

Answer 0

Sets out the rules for proving when a contract exists and when it is finished (terminated).

Question 1

1. What are the elements of a legally binding contract?

What is a contract?

Answer 1

A legally binding agreement that can be enforced in a court of law.

Question 2

How can an offer be made/terminated?

Answer 2

Can be made verbally, in writing or by conduct. Can be terminated if it is revoked, not accepted in time or rejected.

Question 3

What is an invitation to treat?

Answer 3

An invitation to a customer to make an offer which can then be accepted or rejected.

Question 4

What is acceptance?

How can it be communicated?

Answer 4

The other person agrees to all the terms of the original offer without any conditions. It can be communicated verbally, in writing or by conduct.

Question 5

What is consideration?

Answer 5

What each party offers the other as evidence of their agreement.

Question 6

What is intention to contract?

Answer 6

The parties to the contract must have intended to create a legally binding contract that could end up in court if not fulfilled.

Question 7

What is consent to contract?

Answer 7

Each party must give genuine agreement o their own free will to the making of the contract.

Question 8

What is capacity to contract?

Answer 8

The people agreeing to the contract must have the legal right to do so.

Question 9

Why is legality of form?

Answer 9

Certain contracts must be drawn up in writing before they can become legally binding.

Question 10

What is legality of purpose?

Answer 10

For a contract to be legally binding, it must be for a legal purpose and not involve committing any crime or breaking any law.

Question 11

2. How can a contract be terminated?

What does termination of a contract mean?

Answer 11

It can no longer be legally enforced.

Question 12

What is performance?

Answer 12

Where the parties involved fulfil all their obligations as agreed.

Question 13

What is agreement?

Answer 13

All parties to a contract can agree to terminate a contract, whether or not the purpose of the contract has been acheived.

Question 14

What is frustration?

Answer 14

Where some unforeseen event prevents the contact being completed.

Question 15

What is breach of contract?

Answer 15

Where one of the parties breaks a condition of the contract.

Question 16

What is a condition?

Answer 16

An essential element of a contract.

Question 17

What is a warranty?

Answer 17

A non-essential element of a contract.

Question 18

3. What are the remedies for breach of contract?

Answer 18

Rescind (cancel) the contract
Sue for financial compensation
Seek ‘specific performance’.

Question 20

What is to rescind a contract?

Answer 20

The injured party can refuse to honour the contract.

Question 21

What is seeking specific performance?

Answer 21

Getting the court to order the other party to keep their side of the agreement.

Question 22

4. What legislation protects consumer rights?

Answer 22

The sale of goods and supply of services act 1980

The consumer protection act 2007.

Question 23

What is caveat emptor?

Answer 23

A legal term meaning ‘let the buyer beware’.

Question 24

5. What is the sale of goods and supply of services act 1980?
   What does it set out?

Answer 24

The legal right of consumers when purchasing goods
The legal responsibilities of retailer to consumers
The legal remedies available.

Question 25

What are the legal rights of consumers?

Answer 25

Goods sold must be: Merchantable quality Fit for the purpose intended As described Services must be: Competent person with skill Due care and diligence Good materials used

Question 26

What are the legal responsibilities of retailers?

Answer 26

Responsible for defects Respect all legal rights of consumers Must deal with complaints No illegal signs limiting the retailers liability Illegal to demand payment for unsolicited goods.

Question 27

What are the remedies available?

Answer 27

Repair Replacement Refund.

Question 28

6. What is the consumer protection act 2007?

Answer 28

The law that protects consumers from unfair business-to-consumer commercial practises.

Question 29

What does it prohibit?

Answer 29

False product descriptions False prices False or misleading advertising Businesses engaging in aggressive practises

Question 30

What agency did this law establish? | What does it do?

Answer 30

The national consumer agency promotes consumers awareness of their legal rights and ensures that consumer legislation is obeyed by businesses.

Question 31

What jobs is it responsible for?

Answer 31

Enforcing consumer laws Providing information and advice to the public Providing information and advice to businesses Advising the government Publishing a consumer protection list.

Question 32

How can you sue for financial compensation?

Answer 32

Hiring a solicitor and taking the other party to court.

Question 33

7. How can consumer complaints be resolved in a non-legislative manner?

Answer 33

Talk to the retailer | Seek help from a third party.

Question 34

What third parties offer help to consumers?

Answer 34

National consumer agency Industry trade associations Financial services ombudsman for complaints concerning financial institutions Office of the ombudsman for the public service The consumers association of Ireland.

Question 35

What is the consumers association of Ireland?

Answer 35

A non-commercial organisation set up to protect and promote the interests of consumers.

Question 36

8. How can consumer complaints be resolved in a legislative manner?

Answer 36

The small claims court | Hire a solicitor.

Question 37

What is the small claims court?

Answer 37

Provides an inexpensive, fast and easy way for consumers to resolve disputes without the need to employ a solicitor. Deals with claims up to €2,000.