COL3704 Assignment 1 (DETAILED ANSWERS) Semester 1 2026 - DISTINCTION GUARANTEED

COL3704 Assignment 1 (DETAILED ANSWERS) Semester 1 2026 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references.QUESTION 1 Each of the following statements refers to a court case or court cases that you are required to read in this Consumer Law (COL3704) module. Name the case(s) by providing its (or their) full citation(s) as well as the paragraph(s) where the statement is taken from. Number your answers chronologically, starting at 1.1, 1.2, etc. 1. A major overhaul of previous credit legislation was essential. This was also necessary because low-income consumers relied increasingly on commercial credit and many were becoming swamped with debt. 2. For just as the Act seeks to protect consumers, so too does it seek to promote a competitive, sustainable, efficient and effective credit industry. 3. It is universally accepted that money lending transactions are susceptible to abuse mainly because borrowers are usually in a much weaker position than lenders. Moneylenders can therefore easily exploit this vulnerability of the borrower, and some have been guilty of serious impropriety so frequently as to give rise to considerable concern. 4. The Sebola v Standard Bank of South Africa Ltd and Others 2012 (5) SA 142 (CC) case was cited with approval. TOTAL FOR SECTION A: 5 MARKS SECTION C: THE CONSUMER PROTECTION ACT 68 OF 2008 QUESTION 2 Isaack decides to purchase a new washing machine from a specific retailer at his local shopping centre. Isaack cannot pay the full purchase price and agrees with the retailer that he will pay the purchase price over a period of 6 months. The retailer agrees to keep the washing machine until Isaack has paid the full purchase price. After Isaack has paid the full purchase price, the retailer informs Isaack that they sold the washing machine to another customer. Advise Isaack of his rights in terms of the Consumer Protection Act 68 of 2008. (5) Page 4 of 4 QUESTION 3 Indicate if the following statement is correct or incorrect. Provide reasons for your answer. Electricity cannot be classified as “goods” in terms of the Consumer Protection Act 68 of 2008. In your answer, indicate what will qualify as “goods” in terms of the Act. (5) TOTAL FOR SECTION C: 10 MARKS SECTION E: INSURANCE QUESTION 4 Briefly discuss the differences between indemnity and capital insurance. Illustrate your answer with an example.