Friday 8th November Mr Nicholls Year 11 Business Friday 8th November Mr Nicholls

Objectives To consider how consumer law can protect us, and businesses in certain situations.

Firstly… Presentations…

Today… For your homework – you were asked to investigate some specific consumer laws: Sale and Supply of Goods Act 1994 Trade Descriptions Act Consumer Credit Act 1974 To continue today, we need to consider how these laws can impact upon US as consumers, and the businesses that we deal with. So to kick things off – you need to have your explanations out please.

Sale and Supply of Goods Act 1994 This Act says that all products have to be of a 'satisfactory quality'. This means that they have to: be safe last for a reasonable amount of time be fit for their intended purpose have nothing wrong with them (unless the defect was noted at the time of sale) If a seller breaks any of these conditions then you: have the right to ask for your money back do not have to accept a replacement; if you do accept a replacement, ask for written agreement that if the replacements are faulty you will still get your money back do not have to accept a credit note if you agree to a repair and it is unsatisfactory, then it will not stop you claiming your money back.

Trade Descriptions Act According to the Trade Descriptions Act, false or misleading information must not be given about products. For example, accurate information must be given about who made the product. Fake designer goods that are marketed as genuine are a clear breach of the Trade Descriptions Act The most common example of the Trade Descriptions Act coming into play is with second hand cars and their mileage – often cars are ‘clocked’ to make them appear better than they are – so the mile counter is effectively rewound and so it appears the car has less miles than it actually does, thus making it worth more.

Consumer Credit Act This Act protects you when you borrow or buy on credit. The Consumer Credit Act states that: Businesses must have licences to give credit. No one under 18 is to be invited to borrow or buy on credit. Businesses have to state an Annual Percentage Rate (APR). If you sign a credit agreement at home you have several days in which you can tear up the agreement. This is called a 'cooling off period' Section 75 of the act gives people the right to their money back from credit card companies if they use their card to buy something which turns out to be faulty. It only applies to goods and/or services worth more than £100and less than £30,000, and it doesn't apply to debit, charge cards, bank loans or certain shop cards. It does, however, apply to purchases made abroad or to goods purchased from overseas by telephone, internet or mail order for delivery into the UK

Question… Why do you think these laws are important? What examples could you think of to do with the Trade Descriptions Act? What examples could you think of to do with the Sale of Goods Act? What examples could you think of to do with the Consumer Credit Act? Why do you think we need to learn this when studying business?