Diploma in Consumer Affairs and Trading Standards FAIR TRADING CIVIL NOVEMBER 2014

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1 Diploma in Consumer Affairs and Trading Standards FAIR TRADING CIVIL NOVEMBER 2014 Candidates answering the questions from the Scottish or Welsh law viewpoint: Please ensure you write Scottish or Welsh on the front of your examination booklet. The examiners may expect candidates to show knowledge of legislation which is in place but not in force - i.e. has been enacted - and regulations which have been made but are not yet in force, if they are directly relevant to the subjectmatter of the examination. There are three sections to the examination paper: Section A Section B Section C Consists of five questions. Candidates should attempt to answer all questions. Total allocation of marks is 25 marks. Suggested time allocation is 45 minutes. Consists of two questions. Candidates should attempt to answer one question. Total allocation of marks is 25 marks. Suggested time allocation is 45 minutes. Consists of three questions. Candidates should attempt to answer two questions. Total allocation of marks is 50 marks. Suggested time allocation is 90 minutes. Total time allowed three hours (plus ten minutes reading time). The FAIR TRADING CIVIL paper is a closed book; no materials are permitted to be taken into the examination room. The examination paper has six pages, including this front sheet exam paper SDM CLOSED BOOK version3 March 2012 Page: 1

2 Section A Candidates should attempt to answer all questions - total of 25 marks. 1. Define what is an off-premises contract, as set out in The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations The Consumer Protection Act 1987, Part 1 provides producers with a number of statutory defences to any action resulting from a defective product. Briefly outline the defences available to producers. 3. English and Welsh candidates only Briefly outline and explain the terms implied into a contract for pure services, by way of Part II of the Supply of Goods and Services Act Scottish candidates only Briefly outline and explain the terms implied into a contract for pure services, by virtue of the common law. 4. Explain the rules and requirements of consultation, as defined by the Enterprise Act From October 2013, the statutory framework for Primary Authority has been extended, broadening the scheme. Provide a brief explanation of these changes and their impact for those involved. Section A total of 25 marks. End of Section A. Page: 2

3 Section B Candidates should attempt to answer one from two questions - total of 25 marks. 6. The Regulators' Code replaces the Regulators' Compliance Code and provides a clear, flexible and principles-based framework for how regulators should engage with those they regulate ( Critically evaluate the Regulators' Code, providing a detailed review of its aims, objectives and provisions. 7. The Office of Fair Trading was responsible for protecting consumer interests throughout the UK; with its departure, a new consumer landscape and network of organisations has emerged that are designed to help consumers, businesses and enforcers of fair trading law to make better use of resources. Describe these changes and critically review how these reforms might better protect consumers, improve business compliance and support businesses. Section B total of 25 marks. End of Section B. Page: 3

4 Section C Candidates should attempt to answer two from three questions - total of 50 marks. 8. You have concerns about the level and nature of complaints received from consumers based in your local authority area, generated by a company based outside of your area. The company manufactures supplies and fits central heating systems throughout the UK. Typically, consumers are complaining that the quality of their products is poor or misdescribed, often defective, and installations are sometimes left incomplete and unsafe. (a) Identify the likely legislative infringements that you might expect to find, and explain your approach and any actions that you consider necessary to bring about the cessation of complaints and the alleged breaches of consumer protection law. (15 marks) (b) Describe what evidence you might need and how you would use your powers under Part 8 of the Enterprise Act 2002 to stop any further infringements of the law. (10 marks) (total of 25 marks) Section C is continued over the page. Page: 4

5 9. You have been approached by a national retailer looking to set up a new chain of supermarkets under the direction of a new company. It will be very different to their other business, in that it will be selling low cost products and marketing what they sell at the best prices, along with weekly national and local advertising campaigns promoting discounted prices and special offers. The company would like to discuss setting up a Primary Authority Partnership with your Local Authority, with a focus on the fair trading category of law and the fair trading issues that might be expected of a supermarket chain. They would also like to understand how this partnership might be developed to ensure their compliance and provide them with better regulation. Your authority wants a Primary Authority Partnership. Discuss the benefits to the business of having a Primary Authority relationship, and also explain how the fair trading compliance issues, that might arise, could be controlled more efficiently and effectively through a Primary Authority Partnership. Section C is continued over the page. Page: 5

6 10. Jenny has recently had a driveway replaced at her home. She employed Jumper Jack Builders, advertised as being a member of a local approved trader scheme. Jumper Jack called at her home and provided her with a price to pave the driveway, using a high quality York Stone. The price agreed was 9,500. This included the removal of the old tarmac driveway, and the cost of all materials and labour. A few days after completion of the work, Jenny noticed that some of the paving stones were cracked and part of the driveway was collecting water. When she contacted Jumper Jack, he advised Jenny that this is to be expected because of the type of stone that has been used. A neighbour and DIY enthusiast, with some knowledge of driveways, noticed that Jumper Jack had not used any hardcore as a base layer when setting the paving stones, which he felt should have been done. The neighbour has advised Jenny that, consequently, the stones will move and sink. He also thinks that the paving stones supplied are made of concrete and not York Stone. Jenny has not yet paid for this work and has not been given any paperwork. She has complained to Jumper Jack and he has contacted you for advice. He is keen to resolve matters in order that he can invoice Jenny and ensure that his membership of the approved trader scheme is unaffected. He tells you that, for this job, he used a sub-contractor that he had not used before and won t be using again. Jumper Jack knows he must trade fairly and has heard of the Sale of Goods Act 1979 and the Supply of Goods and Services Act He has also been made aware of recent changes in the law introduced by The Consumer Protection from Unfair Trading Regulations 2008 and The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations You have identified that there have been a couple of complaints. He has asked you for guidance on how this legislation applies to Jenny s complaint and what might happen if there were one or two more complaints. Explain to Jumper Jack how this legislation relates to Jenny s complaint and what might constitute harm to the collective interests of the consumer, as defined by Part 8 of the Enterprise Act 2002, and any possible consequences should there be more complaints of this type. Section C total of 50 marks. END OF EXAMINATION PAPER. Page: 6