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auditing
Unit 11639
Assessment

Apply Consumer legislation to a given fact situation

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Due Date: 5th Aug 2013

Assessment Part 1: Apply selected provisions of the Fair Trading Act 1986 to a given fact situation.
1a)
The fair trading act in 1986 defend consumers by prohibiting dishonest or deceptive conduct in trade. It requires that all trading activities are based on right and true information. In this case, under the defences available in the act, he was not responsible but he has committed offence under the agreement. He needs to make sure his staff employees know enough about a product to advertise in the newspaper and they are accurately representing to its customers, and not to make up something they do not know. His defences might be successful when he has a proof to show a memo given to a staff employee arranging a local garage to give a technical description of the damaged tractor to allow a tender advertisement to be placed in the newspaper. On the other hand, he may receive some fine because when the Fair Trading Act is breached by a staff employee on its behalf, the organisation they work for can be held liable. The staff employees, or anyone else, cannot simply say 'they did it without approval', even if that statement is correct.
1b)
In this case, when Sam book a holiday trip with “The Easy as ABC to travel Co Ltd”, he is entering into an agreement. The information that is provided in the advertising in all local newspapers must not be false or misleading. If Sam enter into the contract on the basis of what was in the advertising given by the company, he can claim damages if the information turn out to be incorrect. He can file a complaint against the company because he is not satisfied with the overseas trip and he may be entitled to take the company to the small claim court. Businesses must take care that consumers aren't misled or deceived. Sam have been misled because the information that he received

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