COL3704 ASSIGNMENT 3 SEMESTER 1 2023

COL3704 ASSIGNMENT 3 SEMESTER % TRUSTED workings, explanations and solutions. For assistance call or us on . SECTION A QUESTION 1 On 13 March 2023, 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 were 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 to be ‘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 You have entered a one-year contract with Sculptured body’s gym. The contract clearly states that if you wish to cancel the contract you have to give two months’ notice. After 4 months of training, you see no improvement in your bone structure. You would like to cancel your gym contract as soon as possible. You did give the gym a calendar months’ notice. Did you act correctly in terms of the Consumer Act 68 of 2008? (9) QUESTION 2 Peter takes the Gautrain from Pretoria to Johannesburg to buy a crystal vase at the Glass Company. He picks up a crystal vase to which is attached a notice that reads: “If you break it, you pay”. Peter slips on the floor and the crystal vase breaks. Peter was reckless as he was trying to send a message on his phone whilst holding the vase and he was aware of the notice attached to the vase. Advise Peter if he will have to pay the full price of the vase. Also refer to the relevant sections of the Consumer Act applicable to the scenario above. (6) QUESTION 3 Sifiso decides to buy a sound system from a specific retailer. He does not have the full purchase price and he agrees with the retailer that he will pay in periodic instalments. The retailer agrees to hold the sound system for Sifiso until he has paid the purchase price. After he has paid the full purchase price, the retailer informs Sifiso that they have sold the sound system to someone else. Discuss the rights Sifiso has as a consumer. Also refer to the relevant section of the Consumer Act applicable to the scenario above. (5) SECTION D QUESTION 1 Briefly explain why certain types of stokvels may be compared to ordinary insurance. (5) 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) QUESTION 2 Makoti and her husband Molemi are in business together. Deliveries for the business are done using a vehicle owned by Makoti. Molemi insured the vehicle in his own name. When the vehicle is stolen and Molemi lodges a claim against the insurer, the insurer refuses to pay. It contends that Molemi had no insurable interest in the vehicle. Advise Molemi on his legal position.