Commerse

• Repossession


  Taking back goods bought on credit if repayments have not been made
• Additional costs might arise if the goods are resold for less than the amount of the debt, you are still responsible for the difference
• Debt


  Money owed
• Debtor


  A person who owes money
• Creditor


  A person who is owed money
• Bankrupt


  A person is unable to pay his or her debts
• There are certain obligations that must be fulfilled, failure to meet these obligations will often result in legal action in order to recover the money that you owe
• Consequences of being declared bankrupt - if you are declared bankrupt at an early age, it will make it harder to get a loan in the future and affect your financial independence later down the track
• Social consequences of poor financial management


  • Physical and emotional illness
  • Family and relationship breakdown
  • Limited social life
  • Suicide
• What to do when you can't repay your loan

  1. Get financial advice

  2. Lawyer

  3. Financial counsellor

  4. Organisation (Consumer Credit Legal Centre)
• Default notice


  A document from a lender stating that a person has failed to carry out the terms of the contract
• Options when receiving a default notice

  1. Pay the amount owing

  2. Negotiate a change in your repayments

  3. Apply for a hardship variation

  4. Negotiate a postponement of repossession

  5. Refinance the loan

  6. Sell your goods and repay the loan

  7. Voluntary surrender

  8. Apply for bankruptcy
• Consumer


  Someone who purchases goods and services
• Producer


  Someone who makes and sells goods and services
• Tangible


  Something you can touch or hold
• Intangible


  Unable to be touched
• Good


  A product that is tangible
• Service


  A product that is intangible
• Opportunity cost


  What you give up in order to satisfy a need or want
• Economic resources


  • Land
  • Labour
  • Capital
  • Enterprise
• Key factors affecting consumer decisions


  • Customer service
  • Price
  • Convenience
  • Marketing and advertising
  • Gender
  • Age
  • Disposable income
  • Environmental considerations
  • Social media
  • Cultural factors
• Where to buy


  • Manufacturer
  • Wholesaler
  • Retailer
• How to buy


  • Online shopping
  • Retail
  • Mail order
• Types of retail stores

  • Convenience
  • Specialty
  • Discount
  • Factory outlet
  • Department
  • Supermarkets
• Payment options


  • Use your money: Debit card, EFTPOS, Cash, Gift card, Cheque, Direct debit
  • Use someone's money: Credit card, Bank loan
  • Mixed: Afterpay, Paypal, Lay-by
• Credit should be used wisely
• Consumer protection issues


  • False and misleading advertising
  • Referral selling
  • Unordered goods
  • Special prize
  • Get rich quick schemes
  • Pyramid schemes
• Elements of a contract

  • Offer
  • Acceptance
  • Consideration
• Types of misrepresentation


  • Fraudulent
  • Negligence
  • Innocent
  • Duress
  • Undue influence
• The courts are generally not concerned that a contract may be unfavourable to one party, unless there is an instance where one party is at a disadvantage in bargaining and / or has been exploited
• Discount stores


  • Convenient location
  • Large range of stock
  • Plain design
  • Basic customer service
• Factory outlets


  • Offer big savings on the goods
  • Often near the factory where the goods were manufactured, so may be difficult to get
• Department stores


  • Sell a large range of products within the one store
  • Prices tend to be higher than those of a discount variety store
• Supermarkets


  • Offering a large range of items for sale
  • Sell a wide range of goods
  • Have more food based products than other products
• Legal tender


  Notes and coins that must be accepted as payment for goods and services
• You should use credit wisely so that you don't overspend, because using credit means that you use money that you don't have. If you don't repay the full amount within a certain amount of time you will also be charged interest. This means that if you use credit unwisely you end up paying for the convenience of using a credit card.
• Debit card


  Uses your own money at the time you pay from your own bank account
• Credit card


  Uses the bank's money and you must pay back or else you will be charged interest
• EFTPOS


  Electronic Funds Transfer At Point Of Sale
• Cheque


  A written communication ordering your financial institution to authorise transaction of money