COL3704 Assignment 3 (ANSWERS) Semester 2 2023.

COL3704 Assignment 3 (ANSWERS) Semester 2 2023.Detailed working, solutions, memo, notes & explanations.QUESTION 1 On 13 March, Alvereen Leonard approached three different credit providers and applied for credit. First, she approached Easy Loans and applied for a R5 000 loan to pay her outstanding utility bills. Next, she approached a second-hand car dealer, Cars at Cost, and purchased a R10 000 car on credit. She then went to ABC Loans for a loan of R20 000 to pay for her daughter’s school fees. Financial assessments were only conducted at Cars at Cost and ABC Loans. She did not include any information about the two former applications during the assessment that was done by ABC Loans. Alvereen was granted credit by all three providers. Subsequent to this, she started defaulting on her payments. Explain whether any of these credit agreements will be deemed reckless. (8) SECTION B QUESTION 1 Read the following scenario and discuss whether the debt Anthea owes had been collected as prescribed by the Debt Collectors Act 114 of 1998. Alvereen Leonard owns ABC Estate Agency which specialises in residential rentals. Anthea Wagener enters into an agreement with ABC Estate Agency to rent the property situated at 123 River Road for R8 000 per month. Anthea pays her rent on time each month until she is retrenched. She then fails to pay her rent for three months. Michelle, who is employed by ABC Estate Agency as the office manager, follows up with Anthea. For two months, she phones Anthea repeatedly at home and at work. She threatens to have Anthea blacklisted at all the credit bureaus and to institute legal action against her. A month later, she gets Anthea to sign an acknowledgement of debt form and then proceeds to collect the arrear rental from her. In addition, Anthea is charged a collection fee by ABC Estate Agency. (7) SECTION C QUESTION 1 Your general local store is running a competition whereby you can win an all-expenses paid trip to Abu Dhabi to watch the world Formula One race. All you need to do to enter the competition is to put your till slip with your contact number in a big box at the exit of the store. Answer the following questions: (a) What is meant by a “promotional competition”? (4) (b) What must be stated in an offer to participate in a promotional competition? (Can be in any medium, document or advertisement circulated in the area of the competition)? (5) QUESTION 2 List five (5) instances where the Consumer Protection Act will not apply. (5) QUESTION 3 Your aunt Molly has a problem with cockroaches in her house. She is very stingy and keeps leftover food for months on end that attracts the cockroaches. She buys pesticides from her local hardware store to kill the cockroaches. National legislation prohibits the disposal of the container in which the pesticide is bought into a common waste collection system. Knowing that you are a Consumer Law student, she approaches you for advice as to what she should do with the empty container. Advise Aunt Molly. (5) QUESTION 4 A producer, importer, distributor or retailer is liable for harm caused to any person by the supply of unsafe goods, product failure, defect or hazardous or inadequate instructions or warnings. Discuss the various forms of harm that is included in this provision. (5) SECTION D QUESTION 1 Briefly explain why certain types of stokvels may be compared to ordinary insurance. (6) SECTION E QUESTION 1 One of the essential features of an insurance contract is that it is a contract of the utmost good faith (a contract uberrimae fidei). Discuss what this term means and whether the statement is correct. (5)