Commerce Flashcards
Consumers + Law (116 cards)
1
Q
What is income?
A
Money received on a regular basis from work, property, business, investment, or welfare
Examples include wages, rent, profit, return on investments, pensions, and unemployment benefits.
2
Q
Define consumer.
A
Someone who purchases goods and services to satisfy their needs and wants.
3
Q
What are needs?
A
Items that everyone must purchase because they are essential for survival.
4
Q
What are wants?
A
Things that we like to have, such as a car or mobile phone.
5
Q
Define goods.
A
Things that are produced and can be physically touched, such as a television or a car.
6
Q
What are services?
A
Things that one person will do for someone in return for payment.
7
Q
List the four types of resources.
A
- Land
- Labour
- Capital
- Enterprise
8
Q
What is scarcity?
A
The basic economic problem that human beings want more things than are available to them.
9
Q
Define relative scarcity.
A
The problem of too many wants and needs and insufficient resources to satisfy those ends.
10
Q
What is a durable good?
A
A good that can be used many times, such as a car or television.
11
Q
What are non-durable goods?
A
Goods that can be used only once, such as a sandwich or a litre of petrol.
12
Q
What is opportunity cost?
A
What an individual gives up in order to satisfy a need or want.
13
Q
What influences consumer and financial decisions?
A
- Advertising/marketing
- Price
- Age
- Gender
- Convenience
- Customer service
- Disposable income
- Culture
- Environmental considerations
- Social media
14
Q
How does advertising/marketing influence consumers?
A
Consumers are exposed to many marketing aspects daily, which can make them feel they need a product.
15
Q
Why is price important to consumers?
A
Consumers must spend their money wisely and often prioritize price over service.
16
Q
How does age influence consumer decisions?
A
Wants change over time, and disposable income typically increases as people age.
17
Q
True or False: Women are generally more inclined to buy ‘feminine’ goods.
A
True.
18
Q
Define convenience in the context of consumer decisions.
A
How accessible an item is, including factors like travel time and store location.
19
Q
What is customer service?
A
Service provided by businesses to enhance the consumer experience before and after the sale.
20
Q
What is disposable income?
A
The amount of money households have available for spending and saving after income taxes.
21
Q
How does culture influence consumer decisions?
A
Culture shapes values, perceptions, wants, and behaviors, affecting where and what consumers buy.
22
Q
What are environmental considerations?
A
Consumer awareness of environmental pollution and preferences for eco-friendly products.
23
Q
How does social media influence consumer behavior?
A
Consumers are influenced by social media influencers who promote products.
24
Q
What is impulse buying?
A
Buying something without giving much thought to whether it is needed.
25
What is comparison shopping?
Contacting multiple sellers to obtain the best deal.
26
List examples of where to buy.
* Mail order
* Door-to-door
* Party plan
* Auction
* Telemarketing
* Internet shopping
* Vending machines
* Convenience stores
* Department stores
* Discount department stores
* Supermarkets
* Specialty stores
* Marketplaces
27
What are the four types of prices?
* Manufacturing price
* Wholesale price
* Retail price
* Discount price
28
What is the advantage of using cash?
Easy to see a visual representation of money and accepted at most stores.
29
What is a disadvantage of using cash?
Easily lost or stolen.
30
What is an advantage of EFTPOS and BPAY?
Provides proof of payment and quick transactions.
31
What is a disadvantage of EFTPOS?
Mandatory service fees and limited global acceptance.
32
What is the main advantage of credit cards?
Allows consumers to buy items without needing to wait to earn the money.
33
What is a potential disadvantage of credit cards?
Overspending can lead to large debts and high interest.
34
Fill in the blank: A contract is a ________ enforceable agreement between two or more parties.
legally
35
What are the elements of a contract?
* An offer
* Acceptance
* Consideration
36
What is an unconscionable act?
Any practice by a seller that is NOT reasonable and potentially illegal.
37
What is a scam?
An illegal business practice.
38
What is false and misleading advertising?
Deceptive wording or claims about a product's quality that are not true.
39
What is a pyramid scheme?
A scheme requiring members to recruit others to pay joining fees, unsustainable over time.
40
What is the Competition and Consumer Act 2010?
Legislation that protects consumers from unfair business practices.
41
What is the legal significance of Suzie agreeing to Jane's offer?
It represents acceptance in a contract.
42
What does consideration refer to in a contract?
The exchange of something of value, such as money for a laptop.
43
What is the purpose of the Competition and Consumer Act 2010?
To protect consumers and ensure fair trading.
44
Name two types of agencies that provide consumer protection.
* State government agencies
* Federal government agencies
45
What are some options for a consumer who purchases a product that is not fit for purpose?
Proposing options for consumer redress.
46
What are the consequences of poor financial management?
* Excessive debt
* Impact on wellbeing of individuals and families
47
What is the importance of long-term financial strategies?
To ensure financial stability, including superannuation.
48
What are the three main types of financial management plans?
* Short-term plans: 1-3 years
* Medium-term plans: 4-6 years
* Long-term plans: 7+ years
49
Define superannuation.
Money set aside until retirement to ensure a good standard of living.
50
What percentage must employers currently contribute to a superannuation account?
11.5%
51
When will the superannuation guarantee scheme increase to 12%?
By 2025.
52
What are the three main types of superannuation funds?
* Retail funds
* Industry funds
* Small funds
53
What is a key strategy for effective financial management?
Monitoring and record-keeping.
54
How can digital technologies assist in financial planning?
By developing budgets.
55
What is one option for addressing financial difficulties?
Negotiating an alternative payment plan.
56
What current issue affects consumer decisions related to payments?
The impact of technology on payment processes.
57
What is a significant issue regarding housing and savings?
Housing affordability.
58
Name a type of scam related to online activities.
* Online shopping scams
* Banking scams
* Identity theft scams
59
What is a strategy for managing personal superannuation?
Tracking and consolidating lost superannuation accounts.
60
What is the legislative arm of Australia's government?
The legislative arm is the Parliament, made up of the House of Representatives and the Senate. It creates and passes laws.
61
What is the executive arm of Australia's government?
The executive arm enforces laws and runs the country. It includes the Prime Minister, Cabinet, and government departments.
62
What is the judicial arm of Australia's government?
The judicial arm interprets laws and ensures they are applied fairly. It is independent from the other two arms and made up of courts and judges.
63
Why is it important to have a separation of powers between the three arms of government?
It prevents any one arm from becoming too powerful and allows each to check and balance the others, protecting democracy.
64
What makes the judicial arm independent in Australia?
Judges are appointed, not elected, and cannot be removed by Parliament or the Executive except under strict conditions, ensuring impartiality.
65
What is the role of the High Court in Australia's judicial arm?
The High Court interprets the Constitution, hears appeals, and can overturn laws it finds unconstitutional.
66
What does the executive arm do in relation to law-making?
The executive arm proposes laws (through Cabinet), manages the public service, and implements the laws passed by Parliament.
67
How does the legislative arm influence government policy?
Parliament debates and passes legislation that shapes government action. Members of Parliament can also propose bills or amendments.
68
What is Cabinet and what arm of government does it belong to?
Cabinet is part of the executive arm. It includes the Prime Minister and senior ministers who decide government policy and propose new laws.
69
What is the role of the Governor-General in the executive arm?
The Governor-General represents the King, signs laws passed by Parliament (Royal Assent), and can dissolve Parliament on advice of the PM.
70
What is a bill in the Australian Parliament?
A bill is a proposal for a new law or a change to an existing law. It must pass both houses of Parliament and receive Royal Assent.
71
How does a bill become law in Australia?
It must be introduced, debated, and passed by both the House of Representatives and the Senate, then signed by the Governor-General.
72
What is a private member's bill?
A bill introduced by a member of Parliament who is not a government minister. These can influence debate even if they rarely become law.
73
Who forms the legislative arm of government in Australia?
The Parliament: made up of elected representatives in the House of Representatives and the Senate.
74
Who leads the executive arm of government in Australia?
The Prime Minister leads the executive arm, supported by the Cabinet and public service.
75
What is the difference between a law and a policy in Australia?
A policy is a plan or course of action proposed by government. A law is a rule passed by Parliament and legally enforceable.
76
How do elections support participation in democracy?
They allow citizens to choose representatives and hold them accountable, ensuring the government reflects the will of the people.
77
What is the importance of compulsory voting in Australia?
It ensures broad participation in democracy and makes election results more representative of the population.
78
What is the role of the Australian Electoral Commission (AEC)?
The AEC manages elections, maintains the electoral roll, organises voting, and ensures fair electoral practices.
79
What is the difference between the House of Representatives and the Senate?
The House represents electorates and forms government; the Senate represents states and reviews legislation.
80
How often are federal elections held in Australia?
Every 3 years for the House of Representatives and every 6 years (half-elected every 3 years) for the Senate.
81
What happens if no party wins a majority in the House of Representatives?
A hung parliament occurs. A minority government may form with support from independents or smaller parties.
82
What is a coalition government in Australia?
Two or more parties agree to work together to form government, usually because one alone does not have enough seats.
83
How do political parties shape government policy?
They develop platforms and propose policies during elections. The winning party usually implements its policy agenda in government.
84
Why are independents important in Australia's Parliament?
They can influence decisions, especially in a hung parliament, and often represent specific local or community interests.
85
What is the role of the Opposition in Parliament?
To question and scrutinise the government, suggest alternatives, and hold it accountable for decisions.
86
What is a referendum in Australia?
A public vote to change the Constitution. It requires a double majority to pass: majority of voters nationwide and in a majority of states.
87
Why is freedom of political communication important in Australia?
It allows people to express opinions, criticise government, and make informed choices, which are essential for a healthy democracy.
88
What are interest groups and how do they influence democracy?
Organisations that represent specific interests (e.g. unions, business groups). They lobby politicians and raise awareness of issues.
89
What is a garnishee?
A court order that allows an employer or bank representative to take money from your wages or accounts and then give it to your creditors.
## Footnote
Garnishees are often used to recover debts directly from a debtor's income or bank account.
90
Who are creditors?
The people you owe money to.
## Footnote
Creditors can be individuals or institutions such as banks or credit card companies.
91
What is the role of a debt collector?
A person or agency that is hired to collect debts owed by individuals or businesses, often after the creditor has exhausted their own collection efforts.
## Footnote
Debt collectors may use various methods to recover owed amounts, including phone calls and letters.
92
Define a credit bureau.
An organization that collects and stores information about individuals' credit history, which is then used by lenders to assess creditworthiness.
## Footnote
Credit bureaus compile data from various sources, including banks and credit card companies.
93
What is one consequence of having a poor credit history?
It can make it hard to take out loans and get credit cards in the future.
## Footnote
Even if an individual is no longer in a time of poverty, past late payments or debts may still affect their ability to obtain credit.
94
True or False: A credit bureau only collects positive information about an individual's credit history.
False.
## Footnote
Credit bureaus store both positive and negative information, including late payments and debts.
95
Fill in the blank: A _______ is a court order that allows money to be taken from wages or accounts to pay creditors.
[garnishee]
96
What information does a credit bureau provide to lenders?
Information to assess an individual’s creditworthiness.
## Footnote
This includes data on payment history, outstanding debts, and credit accounts.
97
What is the purpose of the Competition and Consumer Act 2010?
To promote fair trading, competition, and protect consumers from unfair business practices.
98
What is the Australian Consumer Law (ACL)?
It is a national law that protects the rights of consumers and ensures businesses meet their obligations when selling products or services.
99
What are consumer guarantees?
Legal rights that protect consumers when they buy goods and services, ensuring products are of acceptable quality, fit for purpose, and match their description.
100
What does acceptable quality mean under the ACL?
The product must be safe, durable, free from defects, look acceptable, and do what it is meant to do.
101
What is a major problem with a product?
A major problem means the product is unsafe, can't be used for its normal purpose, has a serious defect, or wouldn't have been bought if the consumer had known about the issue.
102
What rights does a consumer have if a product has a major problem?
The consumer can choose a refund, replacement, or repair — the choice is theirs, not the business's.
103
If a consumer buys from an overseas business selling to Australians, are they protected under Australian Consumer Law?
Yes, if the business targets Australian consumers, they must follow Australian Consumer Law.
104
What should a consumer do first when a product they purchased is faulty?
They should contact the business directly and clearly explain the problem, asking for a refund, repair, or replacement.
105
What is proof of purchase and why is it important?
Proof of purchase (like a receipt or order confirmation) is needed to prove the consumer bought the item and is entitled to a remedy.
106
What costs should be covered by the business when resolving a major product issue?
The business must cover the cost of return postage, transportation, or any other reasonable costs related to returning the faulty item.
107
What can a consumer do if the business refuses to provide a remedy?
They can report the issue to the ACCC or their state’s consumer protection agency, and may also contact the equivalent authority in the country the business is based in.
108
What is consumer redress?
Consumer redress is the process a consumer follows to have a problem fixed, such as getting a refund, repair, or replacement.
109
What is the role of the ACCC?
The ACCC enforces the Competition and Consumer Act, investigates unfair practices, and provides advice to consumers about their rights.
110
What is the role of CHOICE organisation?
CHOICE tests and reviews products, informs consumers of their rights, and raises awareness about poor business practices through reports and tools like the Shonky Awards.
111
How does CHOICE help consumers with redress?
They provide free advice, guides, and templates to help consumers contact businesses and demand their legal rights under consumer law.
112
What are the steps in the consumer redress process?
1. Contact the business and request a remedy, 2. Send the faulty item back with proof of purchase, 3. Escalate the complaint to the ACCC or a relevant consumer agency if the business refuses to help.
113
What are express warranties?
Extra promises made by the seller or manufacturer (e.g. '3-year guarantee') that legally must be honoured.
114
Why is durability important in assessing acceptable quality?
Products must last a reasonable amount of time based on their type and price; if they don’t, they fail the guarantee of acceptable quality.
115
What is the importance of knowing your consumer rights?
Knowing your rights helps you demand fair treatment and protects you from being taken advantage of by businesses.
116
How can consumer protection laws improve trust in the market?
They hold businesses accountable and ensure consumers can shop with confidence, knowing they have legal protection.
