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Carefully read the scenario below. Sam purchases a High-Denition Television (TV) set from Cheapsave Store for R20 000. He arranges for the store to deliver
Carefully read the scenario below. Sam purchases a High-Denition Television (TV) set from Cheapsave Store for R20 000. He arranges for the store to deliver the TV to his home and has paid cash at the store. He also hurriedly signed a document, although he is not sure what it was, and he did not get a copy of it. He hopes a copy will be delivered when the store sends the TV. About 4 days later the TV still hasn't arrived and Sam has started having serious buyer's remorse about his purchase. He has lots of other accounts to pay and perhaps it wasn't a good idea to spend so much on a luxury TV that he could do without. Sam quickly calls Cheapsave Store and speaks to the consultant who assisted him and explains he wants to cancel the sale and have his money retumed. The consultant says he is very sorry, but the deal is done and there is nothing he can do to cancel the sale. The TV is on its way and will be delivered any day. When Sam asks about the document he signed. the consultant stated it was an extended warranty and that most clients sign it when they make purchases. He is sorry that Sam did not get a copy but enquired if Sam requested for one in the rst place. Answer ALL the questions in this section. Question 1 [10 Marks} Explain if the consultants actions in refusing to allow the sale to be cancelled is in line with the Consumer Protection Act (CPA). Elaborate to justify your response. Question 2 [10 Marks} Explain the implications of Sam not receiving delivery of the TV at all and trying to cancel the sale a month after purchasing the TV at Cheapsave Store. Question 3 [15 Marks} Explain what action Sam can take if the TV stops working propeliy after four months. Discuss in terms of the rights afforded to Sam by virtue of the CPA. Question 4 [10 Marks} Explain which. if any. of Sam's rights have been violated by the consultant at the store in getting Sam to sign a document, but not explaining the nature of the document, nor the contents to Sam and not providing him with a copy. In your response also detail the obligations on the part of the seller towards a consumer in terms of the CPA. Question 5 A year later Sam's debts have caught up with him and he nds himself receiving demands from many of his creditors including Cheapsave for other items he purchased on credit. Sam owns a small property worth R200 000 however he still owes the bank R250 000 since he has been defaulting on his payments since the inception of his mortgage bond. He receives a salary of R10 000 from his employment and has no other income. His monthly debts are as follows: - Bond: R5000 - Transport fees: R2000 - Cheapsave: R1500 (owes 15 000 still for a washing machine) - 'v'odacom: R1000 - Maintenance: R2000 - Woolworths: R1000 (owes R2? 000 on his account) Total: R12 500 per month 5.1 Explain the types of legal action Sam's creditors could take against him and what processes they (40 marks} would follow in respect of each one. Explain in detail showing the extent of the court processes and outcomes that could be obtained. 5.2 Explain what you think will be the most suitable legal option for Sam to invoke in order to assist (10 marks} himself in getting out of his debt and explain the process. Question 6 [5 Marks} Sam feels that at the time of contracting with Cheapsave for a washing machine on credit. he was heavily intoxicated, not in his right mind and did not know what he was signing. He said he was reeking of alcohol and the store consultant should have known this and therefore. should not have allowed him to contract with them for the washing machine. Therefore. he feels he should not have to pay this debt. Consider this and provide an opinion to Sam on whether he is correct in his thinking
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