Quiz 1 Flashcards by lili posie

Citation of Price Tag Act/Consumer Act

RA 7394

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Citation of Lemon Law

RA 10642

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Helps to make sure that customers are AWARE of what they are buying, such as the ingredients in food, that advertising is fair and does not mislead, that debt collection is fair….

Consumer law

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8 basic rights of consumers

Right to Basic needs
Right to Safety
Right to information
Right to choose
Right to Representation
Right to Redress
Right to Consumer education
Right to a healthy environment

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Consumer right that guaranteed survival, adequate food, clothing, shelter, health care, education and sanitation

Right to basic needs (prioritize your needs, know your needs and wants, quantity over quality, quality conscious not brand conscious)

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Consumer right to br protected against the marketing of goods or provision of services thag are hazardous to health and life

Right to safety (expiration date, warning, FDA-approved)

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Consumer right to be protected against dishonest or misleading advertising and labeling

Right to information (read the label, call DTI Direct, ask the concerned agency, look for the manufacturer’s name and address)

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Consumer right to choose products at competitive prices with an assurance of satisfactory quality

Right to choose (generic vs. branded, canvass before buying, if there is product testers use it)

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Consumer right to express interests in making and execution of government policies

Right to representation (take time to attend public hearings and consultations, be observant as to how consumer laws are being implemented in your area)

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Consumer right to br compensated for misrepresentation, shoddy goods or unsatisfactory services

Right to redress (you have the right to 3RS, be sure to attend mediation conference)

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3RS under redress

Repair, Replace, Refund

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You are entitled to 3Rs if something you bought: (4)

Is defective and you were not aware of it

Was not as described on the box

Does not match the sample shown

Does not do the job you were led to believe it would do

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Is no return, no exchange policy prohibited?

Yes

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Business can refuse to givr a refund if: (4)

You cant prove that you bought it

You changed your mind about it

You have damaged it

You should have known about the fault when you bought it

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Consumer right to acquire knowledge and skills necessary to be an informed consumer

Right tk consumer education (read, listen, watch, involve yourself)

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Right to live and work in an ENVIRONMENT which is non-threathening to the well-being of present and future generation

Right to consumer education

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Legal basis of RA 7394

The State shall PROTECT CONSUMERS from trade malpractice and from substandard or hazardous products

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Consumer Act took effect on

July 15, 1992

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Basic policy of consumer act

Protect the interest of the consumer and promote general welfare

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Objectives of consumer act (5)

Protection against hazards to health and safety

Protection against deceptive, unfair and unconscionable sales

Provision of information and education for sound choice by consumers

Provision of adequate rights anf means of redress

Representation of consumers in socisl and economic policy formulatiob

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Implementing agencies

Department of Trade and Industry, Department of Agriculture, Department of Health, Department of Education, & Local Government Units

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Quality and safety and labelling and packaging of agricultural products

Department of agriculture

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Labelling and packaging, advertising, and sales promotion of food, drugs, cosmetics

Department of Health

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Consumer education and info in the curriculum

Department of Education

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Weights and measures, regulation of preparation and sale of meat, fresh fruits, poultry, milk, fish, vegetables

Local Government Units

an act or practice is deemed deceptive "whenever the producer, manufacturer, supplie or seller, THROUGH CONCEALMENT, FALSE REPRESENTATION OF FRAUDULENT MANIPULATION, induces a consumer to enter into a sales or lease contract transaction of any consumer product or service

True

How many deceptive act are they

Inducing a consumer to enter into sales, lease or avail of services

Deceptive sales acts

Forms of deception (4)

Product has the sponsporship or approval of body it does not have It has the performance, characteristics, ingredients, users or benefits it does not have Product/service is of a particular standard, quailty, GRADE, STYLE OR MODEDL when in fact it is not It is new, original or unused when in fact it is deteriorated, altered, reclaimed or second hand state

8 pointer test that answers one or more no

Pyramid scheme

Pyramid scheme or

Chain distribution plan

Pyramid scheme

Is there a product? Is the intent to sell a product not a position? Is there a resonable return policy? Do products have the fair market value

If the questions is all YES

Legitimate comopany

It is committed whenever the producer, manufacturer or distributor, supplier or seller, by TAKING ADVANTAGE of the consumer's physical or mental infirmity, ignorancr, illiteracy, lack of time or the general conditions of the environment

Unfair sales

Transaction is grossly inimical to consumer One sided, in favor of manufacturer, seller or supplier Consumer was UNABLE to receive substantial benefit from the transaction Seller WAS AWARE that there was no reasonable probability of payment of the obligation in full by consumer Price is grossly exceeded

Unfair sales

No more expiry date for giftcheck policy

True

Contract whether EXPRESS OR IMPLIED between the buyer and seller of a consumer product concerning rights and obligations of both parties

Warranty

Primary law governing all contract of sales with conditions and warranties

Civil Code provisions on sale with warranties

Express warranty is OPERATIVE FROM THE MOMENT OF SALE

True

Period of express warranty

within 30 days Failure to make report RELIEVES the manufacturer, producer, or importer of the liability under the warranty and the DISTRIBUTOR is PERSONALLY LIABLE UNDER THE WARRANTY

Under the warranty in case of failure of both manufacturer and distributor to honor the warranty, the retailer is

Subsidiarily liable

Purchaser needs ONLY to present

Warranty card or official receiptd along with the product to be serviced or returned

Written warranty is required to clearly and conspicuously designate such warranty

Designation of warranty (full and limited warranty)

Written warranty meets the MINIMUM REQUIREMENTS

Full warranty

Written warranty does not meet such minimum requirements

Limited warranty

To conform with the requirements, following should be found in a full warranty

remedy or relief, refund or replacement

To meet the minimum standards for warranty:

Remedy, refund or replacement

Such consumer product within a reasonable time and without charge in case of defect, malfunction or failure to conform such warranty

Remedy

Permit the consumer to elect whether to ask for _____ or _____ without charge where after reasonable number of attempts to remedy the defect or malfunction, the product continues to have defect

Refund or replacement

Exemption to the remedy, refund or replace

If the warrantor can show that the defect WAS CAUSED BY DAMAGE DUE TO UNREASONABLE USE

Seller and consumer may stipulate the period within which EXPRESS WARRANTY is enforceable

True

If implied warranty on merchantability accompanies an express warranty both will be of

Equal duration

Duration of implied warranty

Not less than 60 days nor more than 1 yr

In case of breach of warranty the consumer may elect to have the goods (2)

repaired or refund the purchase price

Repair period

within 30 days by either the warrantor or his representative

In case of refund in breach of warranty

It is to be DEDUCTED

Options given to consumer in case breach of an EXPRESS WARRANTY

Repaired (within 30 days), Replaced, Refund

Options given to consumer in case of breach of IMPLIED WARRANTY

Retain, Reject, Refund

Responsbilities of the seller as to quality or fitnesd in case there is no express warranty given to him

Seller is liable to the buyer an IMPLIED WARRANTY

Seller warrants the general fitness or quality of the product sold to the buyer

True

Provisions of the rules on warranty DO NOT APPLY to professional services rendered by CPA, architects, engineers, lawyers

True

Period of guaranty of service firms

Not less than 90 days

Instances where seller may not be liable in case of defects (2)

Patent defects & clearly visible upon inspection of the product bought

Prohibited acts (4)

Refusal to without any valid legal cause Unreasonable delay Removal Any false representation in an advertisement

Labels should be (2)

Conspicuous & easily understandable under customary conditions of use

Principal display panel of the label should contain (4)

Brand name of the product, active ingredients, weight, net quantity or size

Labelling requirements (8)

Warranty of the manufacturer Weight content prior to packaging Consumer complaint desk address Required information of consumption during safety

No return no change policy is prohibited because

It is DECEPTIVE

Reasons why "no return, no change policy" is deceptive (2)

Creates misconception that consumers don't have the right to (1) return defective goods (2) demand for remedies in case of defective service

Can business establishment still issue official receipts with "no return, no change policy"

If an item bought from a store turns out to be more expensivr than a similar item in other store, can the consumer return the item and ask for refund

Can a store exercise only a policy of exchangr but not refund

Is there a time limit within which a buyer may return defective products

There is no hard and fast rule

Can a buyer return defective goods without official receipts

Yes, provided he can prove that it eas bought from a certain store

What should the consumer do in case of violation

File a complaint with DTI

Where should the complaint be filed

All complaints should be addressed to the provincial office of DTI

Remedies for quality imperfection

Replacement, reimbursement, reduction

Remedies for quantity imperfection

Replacement or immediate reimbursement

Aims to protect consumers against hazards to health and safety, protect consumers against deceptive, unfair and unconscionable sales

RA 7394

Label attached to a commodity stating the price

Price tag

Why is there a need of price tag (2)

Provide buyers adequate information and to discourage and minimize haggling

Ensures the reasonableness of prices of basic necessities and prime commodities

DTI

Consumer products shall not be sold at price higher than the pricr stated in the price tag

True

General requirement of Price Tag Law (2)

All consumer products sold in retail shall have an appropriate price tag label Consumer products shall not be sold at price higher than the price stated in the price tag

Exception of Price Tag Law (3)

Tiny articles, perishable products, nature of the product makes it impractical

Characteristics of Price Tag Law (3)

Clearly written, state the price of the commodity per unit or in pesos, and no erasures

Every retailer is required to DISPLAY A PRICE TAG TO INDICATE THE PRICE

True

Erasures/alterations in price tag is allowed when

Only in sales promotion campaigns

Gr: Use of codes in price tags is not allowed

Exc: if the codes are used IN ADDITION to price tags & used in COMBINATION WITH SHELF PRICING

Requirements for establishments intending to use codes in combination with shelf pricing

Establishment use itemized receipt, install at least one Price Verification Counter, when consumer pays in cash he shall pay only the price indicatef in the price tag

When is price tag list not allowed

When customer product is too small or the nature of which makes it impractical

Price tag list is not allowed when

Product is too small or the nature of which makes it impractical

Is price tag required on samples or dummies on display

Yes

Is price tag required for lumber

Yes

Promote full protection to the rights of consumers in the sale of motor vehicles against abuses and trade practices which are deceptive

Philippine Lemon Law

Strengthens consumer protection in relation to the purchase of brand new motor vehicles

Philippine Lemon Law

Philippine Lemon Law took effect on

August 07, 2014

A newly purchased vehicle bought from an authorized dealership in the Ph

lemon car

Within the first 12 months and that car has gross defects and if all FOUR REPAIR ATTEMPTS have not worked it is considered

Lemon car

Requisites of Lemon Law

Brand new motor vehicles purchased in Ph Reported by a consumer to be in nonconformity Within 12 months from the date of original delivery to the consumer, or up to 20,000 km. of operation after such delivery, whichever comes first

Exc. of Lemon Law (4)

Non-compliance of obligation under the warranty Unauthorized modifications Abuse or neglect of the BNMV Damage to vehicle due to accident

BNMV is: (4)

New parts Covered by manufacturer's express warranty Has never been sold or registered Has never been operated

Motor vehicles refer to: (8)

Sedan Coupes Station wagons Convertibles Pick-ups Vans Sport Utility Vehicles Asian Utility Vehicles

Excluded in motor vehicles

Motorcycles Buses Sprinklers Bulldozer Grader Forklift Crane Tractor Amphibian truck Trailers

Any defect or condition that substantially impairs the use, value or safety

Nonconformity

Lemon law prevents BNMV from conforming to the manufacturer's or distributor's standards which CANNOT BE REPAIRED

True

Standards or specifications of BNMV

Manufacturer's manual Owner's manual Motor vehicle specification

BNMV period

Within 12 months or up to 20,000 km whichever comes first

Within 12 months or up to 20,000 km whichever comes first, EXC (4)

Noncompliance, modifications not authorized, abuse ot neglect, accident man-made

Usage not according to

Abuse

Improper and regular maintenance

Neglect

How does Lemon Law works

Bring your BNMV to the dealer right away if you detect some problem

Steps in repair attempts and Lemon Law rights availment

4 separate repair attempts Consumer's written notice of availment of Lemon Law rights Documentary requirements to invoke Lemon Law rights Repair attempt process Final repair attempt Filing of complaint before the DTI

Documentary requirements

Warranty booklet, notice of availment, current MV registration

Repair attempt shall be composed from delivery of MV to the dealer

within 15 days

Compensation for the customer during the unit repair (2)

Daily transportation allowance OR service vehicle

Incomplete repair attributable to the dealer is treated as ONE REPAIR ATTEMPT

True

Dispute resolution mechanism (2)

Mediation & Adjudication

Period of mediation; period of adjudication

10 days; 20 days

Remedies in adjudication (2)

Replacement & Accept the return

Escrow

Deposit 10,000

Can the dealer resell non-defective units if returned

Yes, provided that the buyer knows the history, if not, dealer will be liable to 100,000 damages

Disclosure or resale (3)

Motor vehicle was returned to the manufacturer Nature of non-conformity Condition

Penalty on non-dislosure sale

Minimum amount of 100,000 damages without prejudice to any civil/criminal liability

Other related laws

Food Safety Act (RA 10611) Gift Check Policy Senior Citizens' Discount

Quiz 1 Flashcards

(125 cards)