The Consumer Flashcards
(49 cards)
what is a contract
agreement that is intended to create legal rights and duties between parties
list 3 ways contracts can be created
written
spoken
unspoken
what is the term used for breaking a contract
breach of contract
list 3 types of contracts
service
insurance
credit
what does CPA stand for
Consumer Protection Act
list 4 ways in which the CPA protects consumers
- forbids automatic renewal of fixed term agreements
- allows consumer to cancel long term contract within 20 BD
- estimate / quote repair work
- right to quality
what are exemption clauses
clears a party from liability if he/she doesn’t honour agreement
compare a warantee with a guarantee
waranty: written promise to replace or repair item if it does not satisfy terms of warranty. It is issued from company stating product is reliable and free from known defects.
guarantee: promise in writting stating that qaulity of product will meet standards and if not money will be returned.
describe grey goods
goods that have been imported into a country theough unofficial distribution channels.
list 6 types of scams
phising lottery scams credit card fraud identity theft work from home 419
what are stokvels
savings club in which a group of people regularly contribute to a common fund and members can draw.
describe pyramid schemes
a scheme in which participants are promised payments for enrolling others, with no exchange of goods and services, it is illegal and eventually collapses.
why is MLM considered legal whereas PS are illegal
with MLM there is the exchange of products
explain the path tax money travels from
SARS national treasury gov. departments provinical gov local gov
list 4 types of direct income tax
PAYE
provisional
tax on investment
property
list 4 examples of indirect tax
VAT Excise duty import duty licenses fuel levy
what causes bank interest rates to rise and fall
the repo rate charged by the reserve bank to commercial bank fluctuates.
what is inflation
purchasing power of money is the value of money measured by quantity and quality of products and services it can buy
how is the CPI measured
measured by defining a basket of goods commenly used by a household and then keeping track of the change
explain the effect of inflation
- people on fixed income feel effects most as there wages often don’t keep up with inflation leading to decreased living standards.
- reduces the PP of savings which therefor effects retired people
- lenders who are paid a FR of interest on loans will lose PP
- borrowing money for a long term at a FR can beneift from inflation- value of repayment is less than initial amount
what is suistanable consumption
refers to the way in which humans use their resources to meet their needs
list 4 examples of fossil fuels
coals
crude oil
natural gas
list 4 advantages of using fossil fuels
- reliable
- large amount of elec can be generated
- cost effective
- SA has a lot of coal reserves
list 4 disadvantes of using fossil fuels
- pollution (carbon dioxide)
- coal, gives off suplhur dioxide (Creates acid rain)
- mining of coal results in destruction of big areas of land and habitat loss
- mining can be difficualt and dangerous
