COL3704 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 15 September 2025

I asked Co-pilot to write an essay of 200 words on the following topic: ‘With reference to the prescribed case law, critically evaluate whether the stated purpose of the National Credit Act 34 of 2005 is achieved.’ Below is the response that I received from Co-pilot. The National Credit Act 34 of 2005 (NCA) was enacted to promote responsible credit lending, protect consumers from reckless credit practices, and ensure transparency in credit agreements. In Kaknis v Absa Bank Ltd & Another [2016] ZASCA 206, the Supreme Court of Appeal examined whether section 126B(1)(b), introduced by the National Credit Amendment Act 19 of 2014, applied retrospectively to debts that had prescribed under the Prescription Act 68 of 1969. The appellant argued that the acknowledgment of debt revived a prescribed debt, which contravened section 126B. However, the court held that the section did not apply retrospectively and upheld the summary judgment against the appellant. This case illustrates a limitation in achieving the NCA’s stated purpose. While the Act aims to protect consumers from unfair debt collection practices, the court’s interpretation allowed creditors to enforce prescribed debts through post-prescription acknowledgments, potentially undermining consumer protection. Although the NCA has made strides in regulating credit providers and promoting financial literacy, inconsistent enforcement and interpretative gaps—such as the non-retrospective application of protective provisions—hinder its full effectiveness. Therefore, while the NCA has achieved many of its goals, cases like Kaknis reveal areas where its protective intent may be compromised by judicial interpretation. Write a 300-word essay in which you indicate how the answer given above by Co-pilot can be improved. Provide detailed references as per the approved School of Law referencing style of all the sources that you personally read and used in your answer. TOTAL FOR SECTION A: 10 MARKS SECTION C: THE CONSUMER PROTECTION ACT 68 OF 2008 QUESTION 2 You received a catalogue by post from a supplier of wines. You are interested in buying five bottles of red wine on offer in the catalogue. In terms of the Consumer Protection Act 68 of 2008, indicate the information the supplier must provide to you as a consumer. Also indicate the relevant section(s) of the Consumer Protection Act that is/are applicable. (5) Page 5 of 5 QUESTION 3 Glenda sees an imported dress from Paris at shop in an upmarket South African shopping mall. She agrees with the owner that she would pay the dress in periodic instalments over 6 months whereafter she will take delivery of the dress. The retailer agrees to keep the dress until Glenda has paid the full purchase price. After Glenda paid four instalments, the dress is badly damaged by a leaking pipe in the store. The store manager informs Glenda that she carries the risk for the damaged dress as she has already paid four instalments. With reference to the Consumer Protection Act 68 of 2008, discuss Glenda’ s rights as a consumer. (5) TOTAL FOR SECTION B: 10 MARKS SECTION D: CONSUMER GROUPINGS QUESTION 4 Zamambo is a member of Bayazi Burial Society. Members pay a monthly contribution of R900 (consisting of R350 for groceries, R150 for meat and R400 for investments) and meet every first Sunday of the month. The founder of the burial society, Ms Ingrid, collects the contributions and deposits the money into her personal bank account. Zamambo is behind with her monthly contributions for two months. Advise Zamambo on the legal nature of burial societies. TOTAL FOR SECTION D: 5 MARKS SECTION E: INSURANCE QUESTION 5 Discuss the nature of an interim insurance contract, and in what respects does it differ from a regular insurance contract?