4.4 Consumer law

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Cards (8)

Consumer law 
Area of law which protects the customers of a business mainly through the Consumer Rights Act of 2015(states goods must be of satisfactory quality, fit for purpose and as described)

Laws apply to goods and services
Advertising controlled by law - must be decent , honest and truthful
Consumers have right to return faulty goods within 30 days
When services not completed in time or to a reasonable standard , consumer can ask for work to be done again or price reduction
Consumer law for production of quality goods and services 
Goods and services must be produced to a good standard - fit for purpose and of satisfactory quality
Means business must have good quality control or assurance processes
When consumer law broken for production of quality goods and services
Business will need to replace or repair faulty food or provide refund
May lose a sale
Costs to replace or repair
May gain reputation for poor quality - reduction in sales
Consumer law for advertising 
Goods and services must be as described.
Means business must be legal, decent, honest and truthful in ads.
When consumer law for advertising is broken
Goods can be returned by consumer which costs money
Business may gain poor quality repuatation - reduction in sales
Consumer law for safety of goods 
Goods and services must be safe to use - must not lead to risk of injury or death.
Means business must make sure design of products is safe and services provided safely.
When consumer law for safety of goods is broken
Business may have to pay lots in compensation
May gain reputation of poor quality - reduction in sales
Has to stop selling unsafe product or service - costs money
May be forced to close
Risks involved in not acting within consumer law
Costs a business to maintain law.
When law broken, costs business including loss of business reputation
Responsible businesses know it makes financial sense to spend money to ensure they don't break laws as will save them money and help them survive