1.1 The Consumer Protection Act applies to transactions that occur in the ordinary course of business. This means that the Act applies to situations where a consumer purchases goods or services from a supplier in the usual course of their trade or business. In this case, the sale of the car by ABC Dealer to Stoney would fall under the application of the Consumer Protection Act because it is a transaction taking place in the ordinary course of their business.
1.2 The National Consumer Commission (NCC) is a regulatory body established by the Consumer Protection Act. It is responsible for enforcing and promoting consumer rights in South Africa. Its role includes investigating complaints of alleged violations of consumer rights, conducting research and education on consumer-related matters, and taking enforcement actions against non-compliant businesses.
On the other hand, the National Credit Regulator (NCR) is a separate regulatory body established under the National Credit Act. Its primary role is to regulate and supervise the credit industry in South Africa, ensuring that consumer credit is provided responsibly and in line with the requirements of the law. The NCR focuses specifically on credit-related matters, while the NCC has a broader consumer protection mandate covering all goods and services.
1.3 Buying a car "as it is" means purchasing the car in its current condition, without any warranties or guarantees from the seller. This type of sale is common in the second-hand car market.
Under common law, there is a principle of "voetstoots" which means that the buyer assumes all risks associated with the product's condition as it is at the time of sale. This means that the buyer cannot hold the seller liable for any defects or issues that might arise after the sale, unless the seller deliberately concealed the defect or acted fraudulently.
However, the Consumer Protection Act provides some protection to consumers even in "as is" sales. The Act requires that sellers disclose any known defects or problems with the goods at the time of sale. If a defect is not disclosed, the buyer may have a right to return the goods or claim compensation from the seller.
In this case, it would be important for Stoney to carefully inspect the car and ask for any information about its condition from the seller. If there are any undisclosed defects or issues that Stoney discovers after the sale, she may have rights under the Consumer Protection Act to seek recourse from ABC Dealer. It is advisable for Stoney to consult with a legal expert to fully understand her rights and options in this situation.
Stoney had just obtained a driver's licence and wants to buy a second-hand car. She drives past ABC Dealer, which sells second-hand cars and sees the perfect little car og her dreams on the floor. It is yellow FordKA, 2015 model with 50000 kilimeters for R60 000. ABC dealers approach you for legal advice and comes to draft a contract of sale between them and Stoney. ABC dealers wants to sell the car on "as it is" basis. Stoney does not have a backround in law and comes to you for legal advice on matters arising as a resultof the Consumer Protection Act.
1.1 Expain to her the application of Consumer Protection Act as far as it relates to the "ordinary course of business" ( 4 marks)
1.2 Explain to her the role of the National Consumer Commission and how it is different to the National Credit Regulator( 4 marks)
1.3 Explain to her the implication of buying the car "as it is" and the position of the common law and consumer Protection as far as it relates to these type of sales
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