VBB 220 Sick test Memo_Final_13 November 2023

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Page 1 of 6 Date: 09 November 2023 Module: VBB 220 (Consumer Protection) Internal Examiners: Dr P Magau and Dr T Ngoepe Internal Moderator Dr AB Nyaude Total marks: 25 Duration: 1 hour, 30 minutes | 17:30 to 19:00 INSTRUCTIONS 1. Answer all the questions in the answer books provided. 2. Write legibly. Students are not allowed to use Tipp-ex or something similar. 3. Students are not allowed to bring any legislation into the venue . 4. The Consumer Protection Act 68 of 2008 is hereafter referred to as the “CPA”. 5. The paper consists of 7 questions. 6. Please note that language and structure will be taken into account in the assessment of your answers. Bullet-style answering is not allowed. 7. No mark will be given for a “yes” or “no” answer where reasons must also be given. 8. Unless otherwise indicated, substantiate your answers with the appropriate case law and/or legislation.

Page 2 of 6 Question 1 [2 marks] Patrick bought a new Samsung S23 smartphone from MTV, a cell phone company in Menlyn. He was unable to pay the full purchase price immediately, so MTV assisted him to apply for, and purchase, the phone on credit. This arrangement allowed Patrick to pay for his phone in instalments over a period of 24 months. However, within six months of buying the phone, MTV changed the terms of the credit agreement, insisting that Patrick pay off the phone within the next six months. Patrick is upset by this change in the terms of the credit agreement for his new smartphone. He believes that this constitutes a violation of his rights as a consumer and wants to rely on the Consumer Protection Act 68 of 2008 for relief. Advise Patrick on whether the CPA will be applicable in this matter. Memo • Students to indicate that the CPA does not apply to any transaction that constitutes a credit agreement under the NCA (1); • but the goods or services that are the subject of a credit agreement are not excluded from the ambit of the CPA (1). Question 2 [3 marks] Thomas is a young adult with a physical disability. He had plans to meet a friend for coffee at Blue Café. However, when he entered the establishment, the manager informed him that his motorized wheelchair would take up too much space, and he could not sit inside. Thomas was turned away and told to place his order either over the phone or through the Blue Café application. Feeling that he has been unfairly discriminated against as a consumer due to his disability, Thomas seeks legal advice. Advise him on which forum has jurisdiction to hear his matter. Memo • Section 10 of the CPA (1) • provides that in respect of an alleged contravention of the consumer’s right to equality, an accredited consumer protection group, or any person ito s20(1) of the Equality Act can institute proceeding (1)

Page 3 of 6 • before the equality court (1) or file a complaint with the NCC (with a subsequent referral to equality court if valid) (1). Max: 3 marks Question 3 [2 marks] What is the time period within which a supplier must return the purchase price to a consumer that has exercised their cooling-off right in terms of the Consumer Protection Act 68 of 2008? Assume that no goods were received by the consumer. Memo • s 16(4)(i) of the CPA (1). • A supplier must return any payment received from a consumer in terms of a transaction within 15 business days of receiving notice of the recission, if no goods had been delivered to the consumer (1). Question 4 [5 marks] Thapelo recently got involved in an accident, and his vehicle was damaged on the rear bumper. He took his vehicle to Fast & Easy Repairs, and they repaired his vehicle without providing him with a quotation. The repair costs were R2000 above what Thapelo had budgeted. Fast & Easy Repairs indicated that they will not release the car until they receive full settlement of their invoice. They also threatened to sell the vehicle at the end of the month if Thapelo did not settle his invoice. Thapelo has come to you for legal advice regarding his rights under the Consumer Protection Act 68 of 2008 (CPA). Advise him on his rights. Memo • Section 15 of the CPA (1) • Consumers must be provided with an estimate or quotation for transactions (1) • Section 15 of the CPA prohibits a supplier from charging the consumer for the repair of the vehicle unless the consumer is provided with a quotation and has accepted it (1).

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Page 4 of 6 • Supplier may not charge for goods and services that exceeds the estimate (1). • Section 15 of the CPA prohibits a supplier from charging the consumer for the preparation of the quotation unless the consumer is provided with the price of preparing the quotation and has approved it (1). • Therefore, Fast & Easy Repairs will be acting contrary to the provisions of the CPA if they refuse to release the vehicle (1). Max: 5 marks Question 5 [5 marks] Makgabo purchases bread, eggs and milk as part of her weekly groceries at the local supermarket. She receives a receipt from the store. Advise Makgabo on what information should be included on the receipt in accordance with the Consumer Protection Act 68 of 2008 (CPA). Memo • Section 26 (1) • Full name or registered business name and Vat (if applicable) of supplier (1) • Address of premises where g&s are supplied (1) • Date of transaction (1) • Name or description of g&s supplied (1) • Unit price of g&s (1) • Quantity of g&s to be supplied (1) • Total price of transaction (before tax) (1) • Applicable tax amounts (1) • Total price of transaction (including tax) (1) Max: 5 marks Question 6 [4 marks] Doris books a three-day stay at Funtastic Resort in the North West. When she is meant

Page 5 of 6 to check in, she is told by the resort manager that they are unfortunately fully booked and there are no rooms left and there is nothing further that can be done to help her. Advise Doris on her remedies in terms of the Consumer Protection Act 68 of 2008 (CPA). Memo • Section 47 (1) • prohibits overbooking and overselling (1) • In terms of the CPA, the supplier must: • Refund consumer amount already paid (1) • PLUS interest at prescribed rate (1) • PLUS costs incidental to supplier’s breach (1) Max: 4 marks Question 7 [4 marks] Rachel enters into a franchise agreement with Ship Shape Shop, a fitness clothing store. Advise Rachel on formal requirements for entering into such an agreement? Memo • Section 7(1) • In writing Signed by / obo franchisee (1) • Plain & understandable language (s 22) (1) • Must contained minimum prescribed information (1) GRAND TOTAL: 25 MARKS - END -

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