Consumer and Financial Decisions | Baamboozle - Baamboozle

best suited organisation to deal with: Caro thinks that his insurance policy contains misleading information.

ASIC

best suited organisation to deal with: Eva wants some advice about the Competition and Consumer Act.

ACCC

best suited organisation to deal with: Zachary believes the local butcher’s scales weigh in the butcher’s favour.

New South Wales Office of Fair Trading

best suited organisation to deal with: Tim wants to read a comparative test on digital cameras.

CHOICE

best suited organisation to deal with: Gina has a complaint regarding her telephone account.

The ombudsman

Briefly outline the role of CHOICE.

Choice is an independent, non-profit organisation that acts as Australia’s largest consumer watchdog.

What does Australian Competition and Consumer Commission do?

Informs the public about their legal rights and responsibilities, and acts as a watchdog regarding the pricing of goods and services.

List ONE government and ONE independent organisation that provide assistance for consumers.

Office of Fair Trading Ombudsman, Australian Securities and Investments Commission (ASIC),The Australian Competition and Consumer Commission (ACCC). Choice News

Describe the responsibilities of consumers.

pay the correct amount, purchase goods and services from ethical and legal sources, use the product in an environmentally friendly manner and accept risk buying

Under what circumstances is a business required to offer a refund?

A business is required to offer a refund if something goes wrong with the goods or service.

What is meant by the term ‘consumer guarantees’?

Consumer guarantees’ is a term referring to a set of rights and remedies for defective goods and services.

What is the name of the legislation that provides some protection to consumers?

The Australian Consumer Law (ACL) operating under the Competition and Consumer Act provides protection to consumers against undesirable business practices.

Identify the basic rights of consumers.

the products are safe, product information and descriptions are accurate, there is full disclosure of the terms of sale and warrants, guarantees are honoured

‘Oral contracts are not worth the paper they are written on.’ What is meant by this expression?

They are not as secure as written contracts. If there is a dispute it will be difficult to resolve, as there are no written documents stating the agreement

What is meant by the term ‘contract’?

The term ‘contract’ is another word for an agreement between a seller and a consumer.

What does the law say to do if you are sent some goods which you did not order?

You should write to the company and explain where the items can be picked up. If the trader does not pick up the goods they become your property within a month

Unscramble the following words and then use each one in a sentence. dlienasmgi vtseagndrii

Misleading advertising. Misleading advertising means that the advertisement uses words and phrases that are not true.

Unscramble the following words and then use each one in a sentence to explain its meaning. tbai nda htwsci

Bait and switch - business advertises a product at a very low price so that it attracts attention and quickly runs out, forcing consideration of expensive items

Name two important pieces of legislation that protect consumers.

Two pieces of legislation that protect consumers are the Fair Trading Act 1987 (NSW) and the Competition and Consumer Act 2010 (Cwlth).

Explain why Anthony would be making a poor choice when deciding to pay for his car with a credit card.

Credit cards usually attract a very high interest rate. If the debt is not paid off in full after the first billing cycle charges will occur

Why are retailers prepared to offer lay-by services without any charge?

It is important that they sell their stock. By not offering the service, they face the risk of not being able to sell the goods at all.

What must you and the store do if you cancel the lay-by before paying the full purchase price?

You must notify the store in writing. The store may provide you with a refund but charge you a fee for storage, handling and depreciation costs.

If you buy an item through lay-by, when do you have possession and ownership of the good?

When using lay-by, you have ownership and possession of the item once you have paid your final instalment.

What is the difference between a debit card and a credit card?

Credit card - you are accessing the bank’s money and you will be charged interest if you don’t make repayments within a timeframe. However debit card is your $

What do the letters EFTPOS represent?

The letters EFTPOS stand for electronic funds transfer at point of sale.

Why should credit be used wisely?

You should use credit wisely so that you don’t overspend, because using credit means that you use money that you don’t have. Not repaying means more debt

What is meant by the term ‘legal tender’?

The term ‘legal tender’ refers to notes and coins that must be accepted as payment for goods and services.

What is meant by the term ‘legal tender’?

The term ‘legal tender’ refers to notes and coins that must be accepted as payment for goods and services.

How are specialty stores able to exist in competition with large discount variety stores?

Specialty stores are able to exist because they provide expertise in the type of service or product they sell to the consumer.

Why would a retailer be prepared to sell at less than the recommended retail price?

A retailer might be prepared to sell at less than the recommended retail price because it might be a way to compete with other businesses and gain customers.

What does 'p&p' stand for?

The letters ‘p & p’ stands for ‘postage and packaging’.

Why it is sometimes cheaper to buy from a manufacturer or wholesaler than a retailer.

buy directly from the manufacturer or wholesaler because retailers have to add their costs and expected profit to the price

What is the difference between a manufacturer, wholesaler and retailer?

A manufacturer produces (makes) a product. Large quantities (bulk) of a product are then bought by wholesalers, who sell the product to retailers, who sell it t

What are 2 strategies you could use to avoid impulse buying

Prepare a Shoping list, compare different brands, compare prices at different stores, ask yourself ;do I really need this?'

List twp sources you could use if you wished to undertake a comparison shopping exercise.

Sources you could use when you are comparison shopping include catalogues, the internet, advertisements, magazines, the telephone and store visits.

What is a generic product?

Generic products are those that lack a distinct brand name.

What is Disposable Income?

Any earnings after tax

What are the Four types of Resources that exist?

Land, Labour, Capital and Enterprise

What are the missing words. A ____________ is someone who purchases ____________ and services to satisfy their needs and ___________.

A consumer is someone who purchases goods and services to satisfy their needs and wants.

What is Redress?

To set right

Where all company assets are sold in order to pay for the company's debt

Liquidated

What is a good that can only be used once? Durable or Non-Durable

Non-Durable

To overcharge or Swindle is

Rip-Off or Scam

What is it called when you buy products, via catalogues, for delivery by mail

Mail Order

In Australia, which of the following describes a compulsory savings scheme for retirement? A. A credit card B. A personal loan C. A term deposit D. A superannuation scheme

A superannuation scheme

Which is an advantage of using a debit card to purchase goods and services? A. You use a financial institution’s money and are charged interest. B. You use your own money and pay no interest. C. You may spend up to your credit limit

You use your own money and pay no interest

Since January 2011, a single consumer law has been in force across Australia. It ensures that when you buy products and services they come with automatic guarantees that they will work and do what you asked for. What is this law called?

Australian Consumer Law (ACL)

Which is an advantage of a credit card? A. Easy to overspend. B. Convenient payment method for online transactions. C. Often more expensive than other forms of credit. D. Missing a monthly repayment will affect your credit rating.

They are a convenient payment method for online transactions.

One problem with bartering was the need for a ‘double coincidence of wants’. What does this mean?

What does 'Caveat emptor' mean

Buyer beware

A common scam is referral selling. What does this usually involve?

The consumer being offered a ‘special deal’ if they buy the product and provide names of potential customers.

Is this sign legal?

No

What is the term for the process of contacting different sellers to find the best price for a product or service?

Comparison Shopping

If you spend more than you earn you are in

Debt

Name the three sections/steps of a contract

The offer, the acceptance and the consideration

A piece of paper that you give instead of cash

cheque

Something that you buy that is not tangible

Services

What is something that you would like but do not need for survival?

Wants

How is impulse buying different from comparison shopping?

. How is impulse buying different from comparison shopping? If you buy on ‘impulse’, you complete your purchase on the spur of the moment without giving it much