Chapter 6 - The Household Consumer

Question 1

Define consumer.

Answer 1

Anyone who buys goods or services for their own use.

Question 2

Define brand.

Answer 2

The identity of a particular product. It usually refers to the manufacture of the product e.g. Kelloggs.

Question 3

Define false economy.

Answer 3

A situation where we buy something that costs less than other brands or seems to be better value but turns out to be more expensive in the long run (e.g. buying a cheap battery that costs 50c and only lasts for 3 hours instead of a better brand of battery that costs €1 and lasts for 10 hours).

Question 4

Define caveat emptor.

Answer 4

A Latin phrase meaning “Let the buyer beware”.

Question 5

Define guarantee.

Answer 5

A promise from a manufacturer to offer a refund or a replacement to customers who have purchased faulty goods.

Question 6

Define warranty.

Answer 6

An additional promise by a manufacturer or seller to repair damaged goods within a stated period of time.

Question 7

Define credit note.

Answer 7

A document (voucher) given by the retailer to the consumer for the value of the goods returned. It allows the consumer to purchase other goods from that shop equal in value to the goods returned.

Question 8

Define receipt.

Answer 8

Written proof to the consumer that they have purchased and paid for a good or service.

Question 9

Define the term “below cost selling/loss leaders”.

Answer 9

When a shop sells popular products very cheaply i.e. below their cost price, in order to attract people into their shop. The retailer hopes that once the shopper comes into the store, they will make other purchases there are too.

Question 10

Define a bar code.

Answer 10

A small rectangle containing black and white lines and figures found on the packaging of most products. The bar code contains information such as product name, price weight, origin, etc.

Question 11

Name three qualities of the informed consumer.

Answer 11

1. Checks for value/quality - makes enquiries, shops around, checks prices to get value for money.
2. Keeps receipts, keeps the guarantee.
3. Does not buy impulsively - prepares a budget and sticks to it.

Question 12

List four considerations when choosing a brand.

Answer 12

1. The price of each brand of product.
2. The quality of each brand of product.
3. Special offers available from certain manufacturers. For example, when buying a car you may be able to get one year’s free insurance if you purchase one brand instead of another.

Question 13

Under the Sale of Goods and Supply of Services Act 1980, what is required of goods?

Answer 13

• Be of merchantable quality
• Be fit for purpose
• Confirm to sample
• Be as described by the shop

Question 14

Under the Sale of Goods and Supply of Services Act 1980, what is required of services?

Answer 14

• Be provided by skilled persons
• Use materials fit for the purpose and of merchantable quality
• Be provided with proper care and diligence

Question 15

When are complaints NOT valid with a good?

Answer 15

• You damaged the goods through misuse or accident
• You change your mind
• It was purchased second hand ‘seconds’ (except cars)
• It was bought from a private individual or friend

Question 15

List four illegal shop notices.

Answer 15

1. No money refunded.
2. Credit notes only.
3. No liability accepted for faulty goods.
4. Goods will not be exchanged.

Question 16

Name three things that food labels must show.

Answer 16

• List of ingredients in descending order of weight.
• ‘Best before date’ for almost all food.
• Name and address of manufacturer or seller.

Question 17

List the disadvantages of buying online.

Answer 17

1. There is a greater danger of impulse buying.

2. It can be more difficult to sort out problems if they arise.

Question 18

Name the 7 agencies that help the consumer.

Answer 18

1. The National Consumer Agency
2. The Ombudsman
3. The Consumer Association of Ireland
4. Consumer Advice Programmes
5. Small Claims Procedure
6. The Advertising Standards Association of Ireland
7. Trade Associations

Question 19

List the advantages of buying online.

Answer 19

1. Online prices are usually cheaper.
2. More convenient method of shopping.
3. The goods are nearly always in stock.

Question 20

What are the guidelines for making complaints?

Answer 20

1. Return to the shop
   • Return to shop where you purchased the good and make your complaint
2. Write to shop
   • If you are not satisfied then write a letter of complaint to the shop owner or manager
3. Shop’s Trade Association/Ombudsman
   • If your complaint has not been resolved write to the shop’s trade association
4. NCA
   • If you are still not satisfied write to the NCA (National Consumer Agency)
5. Small Claims Court
   • If you are still not satisfied apply to the Small Claims Court (€15)