knowledge of business responsibilities towards customers theory test 2 By Bron

knowledge of business responsibilities towards customers theory test 2

Theory self test 2

1 What are your responsibilities under the Consumers Guarantees Act when a customer returns a recently

purchased item for repair?

Recently purchased items must be repaired at the cost of the retailer within a reasonable time frame (dependent on the nature of the item). If you can’t do it within a reasonable time or it can’t be fixed, they can get it repaired elsewhere and charge you the bill.

This is subject to return as mistreated items are generally not covered under return policies. Brand new items must be guaranteed while second hand goods are often an “as is where is” sale as both parties agree to sell an item cheap on the basis it may not last as long as intended. This is very controversial as no workshop can guarantee second hand parts and consumers don’t want to purchase expensive brand new parts. If policies are agreed upon by both parties written documentation should be signed by both.

2 Describe FOUR unethical selling acts that contravene the Fair Trading Act

1) Misleading customers by intentionally selling them faulty equipment.

2) Selling customers second hand items with the impression they are brand new

3) Giving false information about work required. This is very controversial but proven false accusations often lead to full refunds and compensation for lost income.

4) Providing replacement parts of a lesser quality. This is controversial as many customers agree to purchase inferior parts as there cheaper, especially if the vehicle is  old.

3 When describing a warranty to a customer, what conditions must you ensure that the customer

understands?

They must understand the returned goods policies or the agreed upon labor prior to purchase. This can be anything from mistreatment of an item to returning it past a due date.  For peace of mind this should be displayed in your shop and also on the receipt of the item purchased. These can be explained as followed

• Understand the terms and conditions of all of the warranties you offer.

• Ensure these terms and conditions are taken into consideration when selling.

• Ensure that special conditions are pointed out prior to purchase.

• Ensure that your customer understands any special terms and conditions.

• Ensure that the actual warranties do not limit your customers rights, i.e., “all faults must be reported

within 7 days of purchase”.

4 What is the purpose of the Fair Trading Act?

The fair trading act is in place to make sure that

1) Claims and advertising about products and services must be fair, truthful and not be misleading.

2)Pricing for items must be fair and within reason.

3)Work carried out must be agreed upon before commencing and product must be of good quality.

4)If products are of inferior quality they should be explained/advertised as such before commencing sale to the consumer.

5)Warranties and return policies should be displayed or clearly explained prior to purchase by customers.

6)To ensure that consumers uphold to the agreements of the sale. If unable to do this due to lack of funds or other circumstances consumers must make arrangements to pay the outstanding balance or cancel the agreement and pay for the loss of business. Both parties must make arrangements to resolve the issue.

5 A lay-by sale is a contract between the seller and the customer, with what conditions?

Lay-by sales are contracts. The terms of this contract are made between you (the seller) and your customer with the following conditions.

1) The price of the goods can’t exceed $1000.00

2) Price paid in either specified installments or paid at a specified time.

3) Seller holds the goods until all goods are paid for or

4) Seller holds goods until a specified until a specified proportion of the price is paid.

6 Name THREE consumer protection agencies.

1)The disputes tribunal 2)The ministry of consumer affairs 3)Commerce commission

7 What claims can be made to the Disputes Tribunal?

As this is a touchy subject I will not be writing them in my own words, as this could be called misleading and inaccurate. The things the tribunal can taken to the tribunal are

• Work not done properly

• Faulty goods

• Goods bought which are not fit for the purpose you bought them for

• Goods bought which were not the one asked for

• Goods bought which don’t match their description

• The price changed for work done

• Disputes about a contract you signed without realising what you agreed to

• A contract which is too tough

• Damage to property

• The recovery of property

• Misleading advertising or misleading statements made by someone selling goods or services

• Hire purchase in relation to repossession or harsh contracts

• Boundaries

With your employer’s permission answer the following questions:

8a Name a product sold by your company and describe the manufacturers guarantee for that product.

8b Does your company have its own guarantee policy? YES/NO

8c What is your company’s policy regarding guarantees?

Q9 What is your company’s policy regarding the “ethical” treatment of customers?
I do not work for an automotive company so have no permission to answer the following questions. I am a carpenter on wages and my boss is required to make sure that all things built are to specifications laid out in the plan. If failing to do this he is subject to not getting paid until all requirements have been met in the agreement. He does not cover

1) Buildings leaking due to inferior design or product failure.

2) Expenses or delays incurred by lack of material if he is only contracted to perform the work required (not marking up material).

3)Plus other considerations which are dependent on the job.

When you are in charge of a building site you are subject to many laws and regulations like water tightness and zoning criteria etcetera. If you are a contractor you are only obliged to meet the criteria of a job specified by you (and your warranty) the architects plans and your local city council (who ticked it of as safe). How you get paid is another matter.