Commerce - Financial decisions

• Acceptable Quality

  A product fit for purpose, acceptable in appearance and finish, free from defects, safe and durable
• Barter


  The swapping or exchange of one good for another
• Budget


  A list of income and likely expenditures
• Comparison Shopping


  Contacting (by telephone, internet or in person) a number of sellers to obtain the best deal
• Contract


  A legally binding agreement
• EFTPOS


  Electronic funds transfer at point of sale
• Income


  Money received on a regular basis from work, property, business, investments, or welfare payments
• Interest


  The extra money you have to pay back when borrowing money
• Mail Order


  To buy products,via catalogues, for delivery by mail
• Redress


  To set right
• Scam


  An illegal business practice
• Unconscionable Act


  Any practice by a seller that is just not reasonable and often illegal
• 3 basic questions a consumer should ask before they buy something

  1. Do I really want this item?

  2. Can I afford it?

  3. Is there something better?
• Why are budgets important

  Budgets provide a person with income and spending money for the week, month, year and future years. This improves their wellbeing or quality of life
• 8 rules for comparison shopping

  1. Think carefully about what you want

  2. Shop around for the best deal

  3. Investigate the products features

  4. Decide beforehand how you want to pay

  5. Check the refund and return policy

  6. Do not sign anything you do not understand or a blank form

  7. Compare after-sales service and guarantees

  8. Keep all the receipts and invoices
• Convenience store


  Stores that sell a variety of mainly food products, magazines and newspapers at higher prices than the supermarket
• Specialty stores


  Stores that specialise in either one type of product or service or limited range of few products such as hairdressers and newsagents
• Department stores


  These stores sell a large range of products, within one store. They buy in bulk, meaning their prices are cheaper than at specialty stores eg. Myer
• Discount variety stores


  Stores are of plain design and offer basic customer service. Products are cheaper than department stores. Kmart, Target, BigW are examples of discount variety stores
• Supermarkets


  Are large, self serve stores such as woolies and Coles. They originally sold food items but are now becoming more like discount variety stores
• Advantages of purchasing goods on the internet

  • Not leaving where you are
  • Wider range of products
• Disadvantages of purchasing goods on the internet

  • More likely to be scammed
  • Product not being what it is described
• Key factors affecting consumer decisions


  • Environmental
  • Marketing
  • Gender
  • Finance
  • Age
  • Service
  • Price
  • Convenience
• Types of scams


  • Referral selling
  • False and misleading advertising
  • Unordered and unsolicited goods
  • Special prizes and offers
  • Get-rich schemes
  • Pyramid schemes
• Elements of a contract

  1. Offer

  2. Acceptance

  3. Consideration
• Basic rights of consumers

  • Safe products
  • Accurate product information and descriptions
  • Full disclosure of the terms of sale
  • Consumer guarantees and warranties are honoured
• Main purposes of the Australian Consumer Law

  • Misleading and deceptive advertising
  • Unconscionable conduct
  • Misrepresenting the contents of products
  • Unfair trade practices
  • False claim
• Consumer guarantees


  They are consumer automatic legal rights
• Caveat emptor


  This is a latin term for 'let the buyer beware'
• Things a consumer should remember when making a complaint


  • Get the name of the person you are talking to
  • Keep written records of all conversations and copies of letters
  • File any receipts, dockets or credit accounts and proof of purchase
  • Return faulty goods
  • Always request a receipt
• Steps to redress a problem through the Office of Fair Trading

  1. Contact NSW Fair Trading

  2. Lodge a formal written complaint

  3. Officer contact trader and inform you of the outcome

  4. If still not satisfied lodge claim with consumer trader and tenancy tribunal

  5. Then will have a hearing with the law