1. In your own words, explain why Fair Trading is a vital component of ordinary trade. Discuss with reference to case authorities and statutory requirements in the legislation of a USP country of your choice.

2. IST Motors in Port Vila had advertised the sale of certain Japanese manufactured Toyota Double Cabin Hilux along with the advertisement; (a) Newly manufactured imported directly from factory in Japan. (b) Guarantied comfort, durability and road worthiness. (c) Competitive prices when compared with ASCO Motors (d) No better deal that will guarantee the vehicle of your dream(s) Hurry while stocks last.

Mr. Smith was persuaded with this advertisement and decided to purchase a Toyota Double Cabin Hilux from JST Motors. Asco Motors would be selling this type of vehicle for 5 million vatu. JST Motors sold this vehicle to Smith for 4 million vatu, allowing much saving of 1 million vatu which Mr. Smith was very happy about as it will help him with his Christmas holiday travels to his home island.

Upon taking possession of the vehicle, Mr Smith did a first drive of the vehicle but discovered that the vehicle engine was actually manufactured in China with engine parts not resembling the requirements of a standardized Toyota brand. Given the engine failure, he spent 1 million vatu on ordering a new engine with logistics and labour costs totalling 3 million vatu.

Advise Mr. Smith and use case authorities in your advice.