The Consumer Flashcards
(70 cards)
1
Q
What is a contract?
A
An agreement that is intended to create legal rights and duties between its parties
2
Q
What is a breach of contract?
A
When one party doesn’t do what they promised in the contract
3
Q
What happens if there is a breach of contract?
A
- Court can force other person to do what they promised
- Cancel the contract
- Sue the other person
4
Q
CPA
A
Consumer Protection Act
5
Q
What does the CPA do
A
- Forbids automatic renewal of fixed-term agreements
- Right to cancel contract at anytime but still pay what needs to be paid
- If repairs are done - companies must provide estimate
- Consumer has right to high-quality products = All defects must be known
6
Q
Guidelines for contracts
A
- T&C’s must be explained in language you understand
- ^ Read contract carefully
- Ask as many questions as possible
7
Q
What is an exemption clause?
A
A clause that clears the party from any liabilities if he or she fail to honour the agreement or if the product does not serve its purpose.
- cannot exclude injury/death/defective goods
- Must be reasonable
8
Q
Define direct marketing
A
To approach someone in person and promote goods
9
Q
Examples of direct marketing
A
- Sales agent approaches customer
- Electronic means = SMS marketing or e-mails
10
Q
Cooling-off period
A
- a period of time following a purchase when the purchaser may choose to cancel a purchase, and return goods which have been supplied
- Applies to goods, not services
- 5 days cooling-off period
- You may cancel without penalty
- Must be refunded within 15 days
11
Q
What is unfair business practice?
A
- Fraud, misrepresentation, oppressive and unreasonable behaviour towards customers
12
Q
Two acts that protect consumers
A
National Credit Act and CPA
13
Q
What is a warranty
A
A written promise to replace or repair an item if it does not satisfy the consumer - it will be replaced or repaired free of charge
14
Q
What is a guarantee?
A
A written promise that the quality and durability of a product will meet certain standards and if it does not you will get your money back
15
Q
What are Grey Goods/Parallel imports
A
Products that imported into a country legally through unofficial distribution channels. It is legal since necessary duties are paid, but sold by unauthorised groups.
16
Q
What are scams?
A
Fraudulent business deals that are often linked to organised crime
17
Q
What is phishing?
A
An attempt to act as your bank and get your bank details
18
Q
Tips to protect yourself against online scams
A
- Don’t open potential spam emails - delete them
- Don’t open attachments that may be from your bank
- Check bank and credit card statements regularly
- Ensure anti-virus and anti-spam software are updated
19
Q
How credit card fraud can occur
A
- Card swapping
- Theft
- Card skimming
- E-mails claiming to be from credit card provider
20
Q
How to prevent credit card fraud
A
- Never leave cards unattended
- Ensure you immediately get your card back
- Memorise your pin
- Destroy expired cards
- Destroy financial information
- Report lost/stolen cards immediately
21
Q
What is identity theft?
A
- Someone stealing personal information and posing as you to do criminal acts
22
Q
What are stokvels?
A
- A savings club
- They are legal
- A way to put money away each month
- Ensure you trust the people that are apart of it
- Ensure there are clear rules about the stokvel
23
Q
What is a pyramid scheme?
A
- An illegal scheme where the person at the top enrolls people and promises them money for bringing in other people while there is no real investment or selling of goods happening.
24
Q
What is Multilevel Marketing?
A
- The same as a pyramid scheme but with an actual income generated and real goods sold
25
What is revenue?
The total amount of income available to the government = often coming from taxes
26
What is Direct Tax?
The principle that people should contribute towards the wealth of the state
- Income and Property tax
27
What is income tax
- Tax levied on the income and profit that a taxpayer receives
- PAYE is implemented where employer takes from the balance of the employee's income
- Provisional tax - For irregular income = Paid in 2 parts
28
Property Tax
- Taxes on ownership of property
- Based on market value of property
- Paid monthly or annually
29
Indirect Taxes
- Hidden taxes among goods and services
- VAT ; added to price of specified goods and services
- Sin Tax (Excise tax) ; Alcohol and Cigarettes
- Licenses
- Fuel levy
- Import tax
30
What is an interest rate?
The rate at which borrows pay interest for the money they borrowed
31
Repo Rate
The interest rate at which commercial banks borrow from the Reserve Bank
32
What is simple interest?
Calculated on the principle of a loan ; usually for short-term loans
33
What is compound interest?
When interest is added to principal amount so that the interest earns interest
34
Prime interest rate
The interest rate that banks use to determine the interest rate charged on the loans of their customers
35
Definition of inflation
The rise in prices of goods and services over a specific period and subsequently there's a drop in purchasing power
36
Definition of inflation rate
The annual percentage change in the CPI
37
Effects of inflation
- Effects those with a fixed income if salaries/wages do not keep up with IR
- Reduces the purchasing power of savings
- People with fixed interest rate benefit repaying on loan worth less than the money they originally borrowed
38
What is CPI and how is it measured?
Consumer price index
| - Measures the changes in the cost of goods and services over a specific period
39
Main sources of electricity
- Fossil fuels, solar energy, hydropower, wind power, bioenergy
40
Fossil fuels
- Fossilised forms in the earth from plant or animal remains the process to form fuel
- Oil, coal and gas
- Non-renewable
41
Advantages and disadvantages of fossil fuels
Advantages
- Coal stations are reliable, cost-effective and energy-efficient
- Large amounts of electricity generated
- Stations can be located anywhere
Disadvantages
- Pollution
- Sulphur dioxide = acid rain
- Habitat loss
- Can be dangerous
42
Regenerative energy
Renewable energy that nature will replace
43
Solar Power
- Comes from sun's rays
- Are abundant
Advantages
- Clean, no pollution
- Available almost anywhere
- No noise pollution
- Government gives financial incentive
Disadvantages
- Investment is quite high
- Expensive
- Only available during the day
- Dependent on hours of sunlight per day
44
Wind power
- Converting wind energy into electricity using wind turbines
Advantages
- One of the best renewable sources of energy
- Clean, no pollution
- Land beneath turbines still used for farming
- Can supply to remote areas
Disadvantages
- Can be expensive if near coast
- Unpredictable
- Can kill birds/bats
- Unsightly
- Noisy
45
Hydropower
- Derived from using falling water to produce energy
- Dams built on existing lakes and water is used on generators
Advantages
- Can be cheap
- Most reliable
- Can be used at any time
- Doesn't create pollution
Disadvantages
- Can destroy ecosystems
- Can be costly to build
- Can affect quality and quantity of water
- Finding a site can be difficult
46
Biomass
All plant and animal matter used for energy
47
Bioenergy
- The energy using biomass to generate heat and electricity
Advantages
- Cheap
- Reduces greenhouse gas effect
- Reduces dependency on oil
- Does not create CO2
Disadvantages
- Can lead to erosion and desertification
- Can release greenhouse gases
- Materials may not be easy to retrieve or unavailable
48
Why should consumers reduce use of electricity?
- Cuts expenditure costs
| - It adds to global warming and pollution
49
Using lighting efficiently
- Lights off when leaving a room
- Use compact fluorescent lamps
- Use fewer bulbs with higher wattages
- Use low-energy lamps
50
Using heating and cooling efficiently
- Insulate your ceilings
- Use infrared heaters
- Wear warm clothes instead
51
Using the fridge efficiently
- Arrange shelves so air circulates freely
- Let hot foods cool
- Don't open door unnecessarily
52
Heating water efficiently
- Set geyser temp to 60 degrees
- Insulate geyser and pipes to prevent heat loss
- Use a low-flow showerhead
- Use solar energy to heat up water
53
Washing clothes efficiently
- Wash full load in cold water
- Front-loading washing machine uses less water
- Select short washing programmes
54
Drying clothes efficiently
- Hang clothes on washing line instead of in dryer
| - Avoid ironing clothes by removing clothes promtply from tumble dryer
55
Cooking efficiently
- Use a pressure cooker
- Plan meals
- Match pots and pans to stove plates
- Keep oven doors closed until food is cooked
56
Washing dishes efficiently
- Fill it completely
- Turn it off before drying cycle
- Scrape but don't pre-rinse dishes by hand
57
What gas do we use?
- Liquid petroleum gas (LPG)
- No odour but a harmless, non-toxic chemical is added to it and gives it a distinct smell
- Cylinders should always be upright
58
What do we use gas for?
- Cooking
| - Water heaters
59
How should we use gas?
- Ensure cylinder is in good condition
- Ensure all connections are secure
- Too much air = blue flame , too little air = yellow, orange air
60
Advantages and disadvantages of LPG
Advantages
- Saving electricity
- Lower your demand for electricity = less negative impact on ecosystem
- Shrinks carbon footprint
- Easy to use and store
- Relatively clean
Disadvantages
- Can be costly
- Can explode making it unsafe in rural areas
- A non-renewable resource
- Is heavy - difficulty transporting
- Highly flammable
61
What is water quality?
Water that is safe, drinkable and pure enough for consumption with little to no harm done
62
What is water pollution?
The contamination of water bodies
| - Caused by urbanisation, deforestation, damming of rivers, destruction of wetlands, mining, industry, agriculture
63
Substances that cause water pollution
Micro-organism (Diseases)
| Chemicals (Toxins released by industries)
64
How to make water safe to drink
- Boiling ; kills germs
- Adding bleach (Chlorine)
- Adding Chlor-floc
65
How to use water responsibly
- Be aware of your water consumption
- Do a water audit
- Check and fix for leaks
- Make your garden water wise
- Manage the use of water in swimming pools
- Reduce the toilet flush volume
- Reduce shower volume
- Think conservation when using water
- Water-efficient use of appliances
- Recycle grey water to the garden
66
What does the national government do?
- Make policies and laws about the rights and responsibilities of citizens and the delivery of government services
67
What does the provincial government do?
- Carry out the government policies
68
What is the municipality?
A town enjoying some degree or self-government
69
Services that municipalities are responsible for
- Water
- Electricity
- Sanitation
- Refuse removal
70
Responsibilities of communities regarding the use of municipal services
- Pay the municipalities for their services
- Appreciate and handle services with great care
- Obey and follow the law
- Vote in elections
- Hold municipalities accountable for the constitutional obligations
- Engage with the municipality
