FAIR TRADING ACT
Test Your Knowledge: Fair Trading Act Quiz
Are you well-versed in consumer rights and the Fair Trading Act? Take our engaging quiz to assess your understanding of this important legislation and its implications on business practices.
- Multiple-choice questions
- Learn about consumer protection
- Improve your knowledge on fair trading practices
What is the acronym of this act?
A. FTA
B. FBI
C. AFT
D. FAT
The Fair-Trading Act protects consumers from misleading and deceptive trade behaviour and unfair trading practices. Which of the following statements would NOT be in breach of the act?
Kmart claims that all there in store products are NZ made
A handbag is advertised that it is made of genuine leather – but in fact it’s made of vinyl
An item in a store is listed for sale and the price has been reduced by $200 and the normal retail price is $200 more than the sale price
A business offers a prize to be won when you purchase a product – but they have no intention of giving away any prize
The Fair-trading Act also deals with other specific consumer issues. Which of the following is NOT an issue the Act would deal with?
A. Unfair contract terms
B. Uninvited direct sales
C. Layby sales
D. Pyramid schemes
E. Computer issues
Disclose, disclose, disclose!! Which one of the following statements is correct?
A. Disclosure is only made if a customer requests it
B. Disclosure must be clear and not be misleading or deceptive
C. Disclosure must be mostly true information
D. Disclosure can be made in whichever way gets the deal done
The prohibitions contained in the Fair-Trading Act of engaging in misleading or deceptive conduct and false or misleading representations affect the promotion and provision of Finance Now products` and services – This includes promotions by which of the following?
A. Radio and TV
B. Magazines and newspaper advertising
C. Point of sales posters & direct mail
D. Other written material or word other mouth and staff
E. All the above
Finance Now’s promotional and marketing material is handled by our marketing team. Before we can release to the public and our customers who else needs to sign off on the marketing material?
A. Our CEO
B. Our CFO
C. Finance Now’s Solicitors/lawyers
D. Credit Risk Team
E. The FNL board of directors
What year was the Fair-Trading Act established?
A. 1967
B. 1986
C. 1975
D. 1991
Finance Now must keep a master file of all approved advertising material
A. True
B. False
All FNL staff in the position of providing advice to customers must be in receipt of the most up-to date information in respect of FNL products and services, including fees, expected returns, benefits etc. What would you do if you were unsure of how to answer a customer’s question?
A. Answer to the best of your knowledge but making sure you sound confident
B. Tell the customer what they want to hear to secure the sale
C. Tell the customer that you are unsure but will find out and get back to them
What is the main different between the Fair-Trading Act and the Consumer Guarantees Act?
A. The FTA covers claims on products and services before they are bought while the CGA covers claims after the product or service has been bought.
B. The FTA covers claims on products and services after they are bought while the CGA covers claims before the product or service has been bought.
C. No difference between the two Acts
The Fair-Trading Act outlines rules for consumers rights in many areas.
A. Laybys – buy now pay later
B. Telemarketing – door to door sales
C. Warranties
D. Auctions
E. Private purchase from a Facebook page
If a consumer feels a company has breached the act, where can they make an official complaint?
A. Commerce Commission
B. Banking Ombudsmen
C. Friends and Family
What actions can the governing complaints department take towards a company that has breached the FTA? (Choose all that apply)
A. Give advice on how to comply with the law
B. Issue a warning
C. Take them to court
D. Ask nicely to stop
E. a, b & c
F. All of the above
If a FTA complaint proceeds to court, what is a possible outcome? (choose all that apply)
A. Trader pays damages to you if you have suffered loss or damage
B. A contract may be altered or void
C. Money may be refunded
D. Products repaired, or service applied
E. All of the above
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