Chapter 2 lc business conflict in marketplace


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Chapter 2 lc business conflict in marketplace

  1. 1. Chapter 2Resolving Conflict in the Marketplace D.Dempsey
  2. 2. Key Areas• The law of Contract.• Elements of a Contract. Almost• Terminating a Contract. guaranteed Q• Remedies to a Breach of Contract.• Protecting Consumer Rights • Sale of Goods & Supply of Services Act 1980 • Consumer Protection Act 2007• Resolving Consumer Disputes • Non Legislative • Legislative D.Dempsey
  3. 3. Contract Law• The Law of Contract: – Sets out the rules for proving when a contract exists and when it is finished (terminated).• What is a Contract? – Legally binding agreement that is enforceable by Law. – 2 Parties…Offerer and Offeree D.Dempsey
  4. 4. Elements of a ContractNB Agreement Consideration Intention to Contract Capacity to Contract Consent to Contract Legality of Form Legality of Purpose D.Dempsey
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  6. 6. The ElementsOffer:a commitment by the person making the offerto be bound by the contract if it is accepted.Acceptance:Must be identical to the offer and must beunqualified and unconditional.Consideration:Is what 1 party gives another party as proof ofthe agreement, usually payment of one kind oranother. D.Dempsey
  7. 7. Intention to Contract:It is assumed that all business negotiations have theintention to form a legal contract.Consent to Contract:Parties enter into contract of own free will with nopressure.Capacity to Contract:Must have legal ability to enter into contract.Legality of Form:Some contracts must be written.Legality of Purpose:Contract must fall within legal rules of the country D.Dempsey
  8. 8. Termination of a Contract Performance Agreement Breach Frustration D.Dempsey
  9. 9. Conditions & Warranties Could see this in Short QsA condition is a major clause that is fundamentallyimportant and goes to the heart of the contract. If acondition is unfulfilled it constitutes a breach andthe injured party is entitled to treat the contract asterminated and sue for damages.A warranty is a minor term of a contract. If awarranty is breached, the injured can sue fordamages but the contract is not terminated. D.Dempsey
  10. 10. ExampleYou are buying a new BMW, the year and themake of the car would be the key terms. If youwere supplied with a different make you wouldbe entitled to get out of the contract and seekdamages (breach of contract).However, if the car supplied had a differentbrand of tyres than initially stated, this wouldnot be sufficiently serious to allow you to getout of the contract, (breach of warranty). D.Dempsey
  11. 11. Remedies to a Breach of ContractWhen a condition of a contract is broken, you can look for: Damages Specific Performance Rescind the Contract D.Dempsey
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  14. 14. Consumer LawSale of Goods and Supply of Services Act 1980 Consumer Protection Act 2007 D.Dempsey
  15. 15. Before we start… Caveat Emptor “Let The Buyer beware”The buyer has a responsibility to use common sense when making decisions about purchases D.Dempsey
  16. 16. Sale of Goods and Supply of Services Act 1980• Goods should be:  Of Merchantable Quality  Fit for Purpose  As Described  As per Sample  Ownership and Quiet Possession D.Dempsey
  17. 17. • Services should be: – Treated similarly to goods – Supplier is qualified and skilled – Due care and attention – Materials of merchantable quality• Also states: – Complaints dealt with by the retailer – Inertia Selling/Unsolicited goods – Signs limiting liability are illegal D.Dempsey
  18. 18. Illegal SignsNo Exchange on goods In the event of fault contact the manufacturer D.Dempsey
  19. 19. Redress for the Consumer3 R’s… Repair Replace Refund D.Dempsey
  20. 20. In an exam you will be asked to give an evaluation… Do you think the Sale of Goods and supply of services act 1980 does agood job in protecting the consumer? D.Dempsey
  21. 21. Evaluation of the SoG&SoS Act 1980This Law does a good job in protecting consumersbecause:• It ensures that consumers get their money back if the product or service they but is not up to legal standards. While the Law cannot do away with faulty goods, It can ensure that consumers do not lose their money if they buy a faulty product.• Furthermore, Consumers cannot be fooled into thinking that they have to accept a credit note by retailers who put signs to that effect. By banning such signs, this law especially protects those consumers who do not know their rights D.Dempsey
  22. 22. HomeworkWrite your own summary of the Act tonight inyour notes.Remember… Summarise it to suit yourself not me. Its going to be a revision tool for you D.Dempsey
  23. 23. From DES Consumer Protection Act 2007 • Fair and Accurate trade descriptions • False or Misleading Advertisements about goods, services or prices and previous price. • The Act appoints the National Consumer Agency to monitor the provisions of the Act • All adverts must be legal, honest and fair. • All communications to promote the goods are covered by the Act including: advertisements, notices in shop, claim made by sales assistant. D.Dempsey
  24. 24. From DES Practices prohibited by the Act include: • Making False claims for cures for illnesses. • Offering free prizes when it costs money to claim the prize. • Promotions where top prize are unavailable. • Demanding payment for unsolicited goods. • Pyramid Schemes: A pyramid scheme is defined as one where a person pays money, but their primary benefit derives from the introduction of others into the scheme, rather than the supply of a product. D.Dempsey
  25. 25. The Consumer Protection Act 2007• It is an offence provide misleading claims/misleading advertising about: – Goods… claims about weight, ingredients, performance – Services… claims about time, place, manner in which a service is provided – Prices… Actual prices, previous prices, recommended prices D.Dempsey
  26. 26. • The act makes it illegal to use unfair, misleading, or aggressive practices.Eg. Quality mark, pure new wool, flameresistant, rec’ by doctors, price will increasetomorrow D.Dempsey
  27. 27. • The Act bans the establishment, operation, promotion, and participation in Pyramid Schemes D.Dempsey
  28. 28. National Consumer Agency• Formerly Director of Consumer Affairs• Set up by Irish Gov’ in 2007.• Has following Functions… 1. Inform customers of their rights 2. Investigate breaches of consumer laws 3. Make sure all businesses obey consumer legislation 4. Conduct research into consumer issues 5. Be an advocate for consumers D.Dempsey
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  30. 30. HomeworkWrite your own summary of the Act tonight inyour notes.Remember… Summarise it to suit yourself not me. Its going to be a revision tool for you D.Dempsey
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  32. 32. Resolving Consumer DisputesHow can consumer complaints be resolved in a non-legislative way?Consumers who find themselves in conflict with a firm over the way they have been treated have2 non legislative ways of resolving the issue: talk to the retailer or seek help.• Talk to the retailer: – Do it as soon as possible – Know your rights as set out in Law – Bring proof of purchase – Ask to speak to a manager – Complain in friendly but firm manner (aggressive style makes things worse)• Seeking Help: – From organisations that assist with negotiating a resolution to a conflict between consumers and sellers. – National Consumer Agency (Dir’ of Consumer affairs) – Consumer association of Ireland – Industry trade Associations – Ombudsman• Conciliation…3rd party…not Binding• Arbitration…3rd party…Binding D.Dempsey
  33. 33. Re: Page 34 Text… OmbudsmanOmbudsman:investigates complaints by members of the public against certain publicbodies. Eg. An post, Local Authorities, HSE. – No authority against Dail, Gardai, Defence Forces, Courts, Prisons, or Private Companies. – Emily O Reilly D.Dempsey
  34. 34. Financial Services Ombudsman: – Replaced Insurance ombudsman and Credit Institutions Ombudsman – William Prasifka – Helps all personal customers, Limited companies with turnover of less than €3m, and charities, clubs, trusts and partnerships with complaints against Banks, building societys, insurance Co, Credit Unions, pawnbrokers, Bureau de Change, HP providers etc. D.Dempsey
  35. 35. Small Claims Court• For consumers who have claims for faulty goods/services• Max claim is €2000.• Small Claims court is… Accessible, Speedy, Low Cost, No need for costly legal representation.• Small Claims Registrar @ District Court• €25 application fee• If unsuccessful… can go to District court.• D.Dempsey
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