For the following questions, please note down the letter (for example: a, b, c, or d) of your response which is most correct and EXPLAIN your answer. Be careful that more than one of the multiple-choice answer options may be correct

Question Four (5 marks)

Martha and Arthur bought a tandem bicycle from Bills Bicycles paying for it with a credit card. They travelled some miles on it when it broke down. They rang Bills Bicycles who drove out to see them and the bicycle was taken back to the shop. Upon inspection Bill discovered that Arthur and Martha had caused the problem because they had not used the gears correctly. At the time of purchase Martha and Arthur assured Bill they were familiar with chain gears. Bill fixes the fault and asks to be paid $10 compensation for repairs and travel. Arthur and Martha refuse to pay. After their departure Bill adds the $10 to the credit card used by Martha and Arthur to purchase the tandem bicycle.

(a) The extra $10 is an unauthorised transaction, but Arthur and Martha owed the $10 and so there is no breach of any legislation or codes.

(b) The extra $10 is an unauthorised transaction, but is not covered by the ePayments Code.

(c) The extra $10 is an unauthorised transaction, and is covered by the ePayments Code.

(d) None of the above answers are correct.