Commerce WASSCE (SC), 2018

Question 7

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  2. What is a contract?
  3. List and explain four reasons for consumer protection, stating in each case one relevant government law aimed at its enforcement.
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Observation

Candidates who attempted this question performed well in the definition of contract and the reasons for consumer protection. However most candidates who attempted the question failed to mention the governmental laws as expected in the question.

The expected responses are.

7a.       A contract is an agreement between two or more persons which is enforceable in law and intended to have legal relationship.                                                               

            7b.       Reasons for consumer protection

  1. Exploitation: The consumers are protected from exploitation by manufacturers through indiscriminate price increase. This is done through the price control Act.
  2. Substandard goods: Manufacturers may produce goods without taking into consideration the quality desired. The standards Organisation Act checks such practice.
  3. Deceptive weights and measures: Sellers may use incorrect weights and measurements in selling goods to customers. The weights and measures Act helps prevent such practices.
  4. Sale of harmful food and drugs: Consumers are protected from dangerous goods, especially drugs. The Foods and Drugs Act protects the consumers against the sale of such goods.
  5. Credit purchase agreement: Consumers are often not well informed about the details of credit sales agreements. They may inadvertently sign false credit facilities. The Hire Purchase Act is aimed at protecting the rights of such customers.
  6. Misleading advertisement: Many claims made by advertisers about the performance of their products are not correct. The Trade Description Act was enacted to check such practices.
  7. Description of goods: Consumers are protected against unscrupulous sellers who would sell goods that are not fit for the purpose or differ from the samples or description. The Sales of goods Act is enacted to curb this practice.