What a Scam
This involves advertising a few products at reduced and, therefore, enticing prices to attract customers. When the advertised products quickly run out, customers are directed to higher priced items.
What is bait-and switch advertising?
For a promise or a set of promises to be a valid contract, both parties must have intended to enter into a legally binding contract.
What is intention to create legal relations?
Someone who purchases goods and services to satisfy their needs and wants.
What is a consumer?
Bob the Builder insists that a hammer incorrectly marked at the hardware store for $5 be sold to him instead of at its correct price of $50. Why is this not a valid contract?
The price tag simply suggests a price to offer. A shop that has an item wrongly marked as $5 instead of $50 does not have to sell it at the marked price.
The process of contacting different sellers to find the best price.
What is referral shopping?
Some advertisements use words that are deceptive or claim that a product has some specific quality when it does not. Such actions convey a false impression of the exact nature of the product.
What is misleading advertising?
Both parties to a contract must receive something of benefit. What is this called?
What is consideration?
Food, clothing, and shelter are examples of these.
What are needs?
Bert agreed to sell his house to Ernie for $800,000. They both sign contracts and Ernie pays a deposit. Two days later Bert changes his mind and tells the real estate agent his house is worth an extra $50,000. He won’t proceed unless the extra money is paid.
Why is this a valid contract?
There has been an offer that was followed by an unconditional acceptance. Both parties receive something of benefit.
Buying things without giving much thought as to whether you really need them.
What is impulse buying?
This illegal technique offers the consumer a ‘special deal’ if she or he buys the product and then supplies the names of potential customers to the trader. The ‘special deal’ usually takes the form of a discount orcommission, which is not always paid.
What is referral selling?
Until consent is given, there can be no agreement and no contract between parties. Consent must be freely given, with no pressure applied by one party or the other.
What is genuine consent?
Something that can be used many times, such as a car or television, are examples of these.
What are durable goods?
Simon is in Year 9. He can’t afford to buy a smartphone outright so goes to the FPT and signs up for a 24 month plan.
Why is this not a valid contract?
People who enter into a contract must have the legal capacity or legal right to do so. People under the age of eighteen years have limited rights to enter into contracts. The law aims to protect minors from entering into contracts that will disadvantage them.
A person or business which buys goods in large quantities from the manufacturer to sell on to retailers
What is a wholesaler?
This practice involves sending which were not ordered through the mail and then demanding payment for them.
What are unsolicited or unordered goods?
People who enter into a contract must have the legal "________" or legal "_____" to do so.
What are "capacity" and "right"
(answers may be given in either order.)
What an individual gives up in order to satisfy a need or want.
What is opportunity cost?
Malcolm moves into a new house. His neighbor Percy tells Malcolm the previous owners always mowed his lawn for him. Malcolm agrees to also do this but after 6 months, finds it inconvenient. Malcolm stops mowing Percy’s lawn and Percy takes him to court.
Why is this not a valid contract?
Both parties to a contract must receive something of benefit. Malcolm receives nothing of benefit.
One advantage of this is to avoid carrying around large quantities of cash.
What is a credit card?
In this type of scam, a letter or email arrives offering you the chance to participate in the transfer of money from another country. For your help, you will receive a percentage of that amount. However, you are required to supply your bank account details for the transaction to occur, giving the scammer the opportunity to steal your money.
What is a get rich quick scheme?
For an agreement to be legally enforceable, there must be an "_____" by one party that is "_______________" "________" unconditionally accepted by the other party.
What is "offer"; "unconditionally"; "accepted"?
Wants are (1) "_________" whilst resources are (2) "______".
What are:(1) unlimited and (2) scarce?
Lisa orders a wedding dress from Betty Bridal. She is very pleased with the workmanship However, when Lisa tries on the dress, she doesn’t think it looks very good on her so she refuses to pay. Betty sues Lisa.
Why is this a valid contract?
In this case, Lisa would be made to pay for the dress as she had intended to enter into a legally binding agreement with Betty. Betty fulfilled her part of the contract.
The normal selling price at which the store sells the product.
What is the recommended retail price?