Write the number of the question and the letter representing the best answer for each

question in your answer book.

1. One of the objectives of consumer law is to:

a.) Ensure that consumers always pay a discounted price for goods and services.

b.) Broadly readjust any power imbalances between consumers and suppliers.

c.) Ensure all consumers are experts in marketing strategy and consumer behaviour.

d.) Ensure all competitors in the same area of business agree to fix the prices at which

they sell products to consumers.

2. Rania sometimes gives her mother in law, Selma, a ride to the hospital. Rania works near

the hospital and this saves Selma the bus fare and time. One day when Selma is in the car,

Rania fails to see an ambulance turning outside of the hospital and is forced to brake very

suddenly. Unfortunately, the sharp braking causes Selma's bag to fly off the back seat,

damaging the contents of her bag, including her phone and laptop. Is Selma able to bring

a claim against Rania?

a.) Under the Consumer Guarantees Act 1986 as Rania's driver is not of acceptable

quality.

b.) Under the Fair Trading Act for misleading Selma as to the standard of her driving.

c.) Under both the Fair Trading Act and the Consumer Guarantees Act.

d.) Neither the Fair Trading Act or the Consumer Guarantees Act apply in this

Situation.

3. Sally buys a book as a birthday gift for her brother, Simon. She later finds out that Simon

already has that book. Is Sally legally entitled to return the book to the bookshop and

demand her money back?

a.) No, because there is nothing wrong with the book, nor she was not misled, so neither

the Fair Trading Act or the Consumer Guarantees Act applies

b.) Yes, under the Fair Trading Act as she mistakenly believed her brother did not have

this book

c.) Yes, under the Consumer Guarantees Act as the book did not fit the purpose of

being acceptable birthday present

d.) No, because both Acts do not apply as Sally is not in trade.

4. Section 9 of the Fair Trading Act 1986, prohibits misleading and deceptive conduct in

trade. Conduct in this provision refers to:

a.) Positive acts, such as advertisements for products which include untrue or false

claims about the goods or services promoted in the advertisement

b.) Negative acts, such as advertisements which make misleading or untrue statements

about the products sold by competitors

c.) Omissions, such as statements by a person or in an advertisement that omit

important information or only partly discloses information with the effect that the

meaning of the statement or advertisement is unclear or ambiguous

d.) All of the above behaviours.

5. The factors that a Court considers when deciding that a provision in a standard form

contract is unfair are:

a.) That the provision would cause a significant inequality in the parties' rights under

the contact, the provision is not reasonably necessary to protect the position of one

side to the contract and will cause a detriment to the other party if enforced or relied

upon.

b.) That the provision is not reasonably necessary to protect the position of one side to

the contract

c.) That the provision would cause the parties' rights under the contact to be balanced

but will cause to detriment to one party to the contract if enforced or relied upon.

d.) That the provision is not reasonably necessary to protect the legitimate interests of

one party to the contract and will not cause any detriment to the other party if

enforced or relied upon.

6. Eric imports canned tomatoes from Italy. However, on the side of the cans of tomatoes is

the statement 'product of New Zealand'. Is this a breach of the Fair Trading Act?

a.) No, it is not a breach of the Fair Trading Act, because Italian tomatoes are better

than New Zealand tomatoes and therefore purchasers of the cans of tomatoes are

not disadvantaged.

b.) Yes, it is a breach of the Fair Trading Act as consumers are being misled or deceived

as to the place of origin of the tomatoes.

c.) No, it is not a breach of the Fair Trading Act, because Italian tomatoes are the same

as New Zealand tomatoes as tomatoes are tomatoes

d.) Yes, it is a breach of the Fair Trading Act as consumers are being misled or deceived

as to the price of tomatoes.

7. An example of an unsubstantiated representation is:

a.) A claim that a moisturiser will get rid of fine lines and wrinkles that is backed up

by scientific testing and data.

b.) A claim that if you use a certain moisturiser than you will feel like a multimillionaire and a superstar.

c.) A claim that a moisturiser is made in the United States and this is correct.

d.) An advert that claims a moisturiser will get rid of fine lines and wrinkles that is

backed up by little evidence or data at the time the advert is shown on TV.

8. Bait advertising is:

a.) Advertising that products come with a free gift or bonus and the retailer has no

intention of providing the free gift or bonus as advertised

b.) Advertising a product for sale at a very low price, but when consumers attempt to

buy the product in store, the retailer always offers a substitute, more expensive item.

c.) Advertising a service that provides a reward to a buyer of that service, if the buyer

refers other consumers who then purchase the service,

d.) Advertising a product for sale when the retailer has no intention of providing the

Products.

9. Which of the following statement(s) explain why the Commerce Act and the Commerce

Commission are concerned with anticompetitive behaviour of businesses.

a.) Anti-competitive behaviour, such as price fixing between competitors in the same

market, can negatively impact consumers as prices are likely to be higher than

otherwise.

b.) Anti-competitive behaviour, such as price fixing between competitors in the same

market, can positively impact consumers as the consumers know the price is

fixed, which creates certainty.

c.) Anti-competitive behaviour, such as price fixing, can positively impact consumers

as consumers know that the price of a good is the same at all retailers, so they

know there is no point spending time looking for a better deal.

d.) Anti-competitive behaviour, such as price fixing, removes competition and

competition is always bad for consumers.

10. A cartel arrangement is:

a.) Where a group of independent businesses agree not to compete with each other in

order to make greater profits.

b.) A term that applies only to people selling drugs, such as the Colombian drug cartel.

c.) A form of cart, which has a longer deck or tray, for carrying timber.

d.) An agreement to advocate for increased access to overseas markets