Commerce

• Durable good


  Something that can be used many times
• Non-durable good


  Something that can be used once
• Scope of commerce


  • What to buy
  • What to produce
  • Where to live
  • What career to follow
  • Where to invest
  • How much money to save
• Good


  Something we can physically touch like food
• Service


  Something we can't physically touch like a gym membership
• Need


  Things that humans require to survive
• Want


  Something that we desire to have but don't necessarily need
• Factors influencing consumer and financial decisions

  • Advertising/marketing
  • Age
  • Convenience
  • Culture
  • Customer service
  • Disposable income
  • Environmental considerations
  • Social media
• Consumers want the BEST VALUE FOR THEIR MONEY
• As we get older

  Our needs and wants change
• Opportunity cost


  The value of the option not taken when a business makes a decision
• A warranty is a voluntary promise
• Budgeting


  Helps you save and keep track of your expenses
• The cons of budgeting involve the budget could be inflexible and not allow for unexpected circumstances, time consuming process, and if unrealistic it can cause stress and pressure
• Individuals look at their income and determine on how much to save and spend and these plans may last for any period of time called budgets
• Factors to consider when making a purchase

  • Price
  • Quality
  • Availability
  • After-sales service
• Range of locations and stores

  • Manufacturers
  • Wholesalers
  • Retailers
• Mail order


  A system of shopping where the consumer completes and posts an order form, usually from a magazine and receives products through mail
• Online shopping


  We can online shop from our computers making it easy to compare pricing but there is a delivery charge and risks of scams and if you don't like the product there can be return fees
• Types of retail outlets

  • Convenience store
  • Specialty store
  • Discount variety store
  • Factory outlet
  • Department store
  • Supermarket
• Payment methods


  • Cash
  • Store credit
  • Paypal
  • EFTPOS, debit cards, BPAY
  • Direct debit
  • Cheque
  • Credit
  • Lay-Buy
  • Book-up
• People like to shop at stores that sell a lot of that one product and tend to shop at more boujee stores for electronics because they value the quality rather than price
• Unconscionable acts by sellers

  • Bait and switch advertising
  • Misleading advertising
  • Referral selling
  • Pyramid scheme
  • Get rich quick
  • Special prizes/offers
  • Unordered/unsolicited goods
• Contract


  A legally enforced agreement between two or more parties/people that outlines the details of the agreement and the rights and responsibilities of each of the parties
• Essential features of a contract

  • Offer
  • Acceptance
  • Consideration
• Legal rights for consumers

  • Safe products
  • Accurate product information and description
  • Full disclosure of the terms of sale
  • Consumer guarantees and warranties are honoured
• In 2011, a single, national consumer law (ACL) was introduced, which operates using the competition and consumer act 2010 (Commonwealth). This federal act applies in the same way to all Australian consumers business
• Main purposes of the ACL

  • Protect consumers against misleading and deceptive advertising
  • Protect consumers against unconscionable conduct
  • Protect consumers against misrepresenting the content of products, their place of manufacture/characteristics
  • Protect consumers against unfair trade practices
• Offer


  Proposing something for something in return and must clearly state their intention to the other party
• Acceptance


  When the offeree agrees to the proposal in a written or oral statement that clearly communicates acceptance of the offer such as a handshake
• Consideration


  The final essential feature required to form a valid contract. It requires each party to the agreement to give up something of value and can take any form
• Legal rights for consumers

  • Safe products
  • Accurate product information and description
  • Full disclosure of the terms of sale
  • Consumer guarantees and warranties are honoured
• The Act's main purpose is to protect consumers against

  • Misleading and deceptive advertising
  • Unconscionable conduct
  • Misrepresenting the content of products, their place of manufacture/characteristics
  • Unfair trade practices that restrict competition
  • False claims regarding goods and services
• The Competition and Consumer Act 2010 is administered and enforced by the Australian Competition and Consumer Commission (ACCC), each State and Territory's consumer agency, and the Australian Securities and Investments Commission (ASIC)
• False or misleading advertising can be the most serious. Even though consumer protection legislation makes false or misleading advertising illegal, there are still a number of methods used by some retailers
• Consumer guarantees under the Competition and Consumer Act 2010

  • Goods are of acceptable quality
  • Goods are fit for purpose
  • Goods match description, sample or demonstration model
  • Goods comply with any express warranty
  • Goods are legally owned by the seller without any charges
  • Spare parts for goods are reasonably available
  • Services are fit for purpose
  • Services are provided with reasonable skill and care
  • Services are provided within a reasonable time
• Responsibilities of Consumers


  • Paying the ethical amount
  • Purchasing goods and services from legal and correct sources
  • Using the products in an environmentally friendly manner
  • Accepting most the risk when they purchase something
• Caveat emptor


  Let the buyer beware
• A seller is not required to tell you everything about the goods for sale. Therefore, it is the purchaser who is accepting the most risk
• Organisations that provide assistance for consumers

  • State government (NSW Fair Trading)
  • Ombudsman
  • Federal government (ASIC, ACCC)
  • Independent organisation (CHOICE)
  • The media