UNIVERSITY OF GUYANA

LECTURER: Ms S. Roberts & R. A. Bentick

MNG 3203: BUSINESS, SOCIETY & ETHICS

WEEK:9: SHORT NOTES - CONSUMER PROTECTION AND AGENCIES THAT

PROTECT CONSUMERS

A consumer is defined as “someone who acquires goods or services for direct use

or ownership rather than for resale or use in production and manufacturing.

Before the mid-twentieth century, consumers were without rights with regard to

their interaction with products and producers. Consumers had little ground on

which to defend themselves against faulty or defective products, or against

misleading or deceptive advertising methods. By the 1950s, a movement called

“consumerism” began pushing for increased rights and legal protection against

malicious business practices. By the end of the decade, legal product liability

had been established in which an aggrieved party need only prove injury by use

of a product, rather than bearing the burden of proof of corporate negligence.

What is consumer protection?

Consumer protection safeguards the well-being and interests of
consumers through education, mobilization and representation.
Consumer protection ensures that consumers make well-informed
decisions about their choices and have access to effective redress
mechanisms.
Why is consumer protection important?
Consumer protection makes markets work for both businesses and consumers.
Consumers need to be able to obtain accurate, unbiased information about the
products and services they purchase. This enables them to make the best
choices based on their interests and prevents them from being mistreated or
misled by businesses.
In many countries, the customer or consumer is guaranteed certain basic rights by
law no matter where they live. Learn these basic rights to stay informed, vigilant,
and proactive when purchasing products. Think about the products you have
purchased which have since been recalled for safety issues or due to malfunctioning
parts on an automobile. Customer protection and satisfaction is imperative for a
business to deliver goods and services.

What is meant by the term Consumerism?

To understand consumer protection and the need for regulation, understanding

consumerism is important.

https://www.youtube.com/watch?v=ZBxZC9I6xyk
Consumerism is an economic theory that increasing the consumption of goods
and services purchased in the market is always a desirable goal and that a
person's wellbeing and happiness depend fundamentally on obtaining consumer
goods and material possessions. In an economic sense, it is related to the
predominantly Keynesian idea that consumer spending is the key driver of the
economy and that encouraging consumers to spend is a major policy goal.

Understanding Consumerism

consumerism refers to the tendency of people living in a capitalist economy to

engage in a lifestyle of excessive materialism that revolves around reflexive,
wasteful, or conspicuous overconsumption. In this sense, consumerism is widely
understood to contribute to the destruction of traditional values and ways of life,
consumer exploitation by big business, environmental degradation, and negative
psychological effects. Purchasing according to your wants and not your
needs.

Conspicuous Consumption

Thorstein Veblenin his book The Theory of the Leisure Class (1899) states that
conspicuous consumption is a means to show one's social status, especially
when publicly displayed goods and services are too expensive for other members
of the same class. This type of consumption is typically associated with the
wealthy but can also apply to any economic class.

The use of the term ‘consumerism’ in the mid-20th century began to have a
positive connotation. During this time, consumerism emphasized the benefits
that capitalism had to offer in terms of improving standards of living and an
economic policy that prioritized the interests of consumers. These largely
nostalgic meanings have since fallen out of general use.
As consumers spend, economists presume that consumers benefit from the
utility of the consumer goods that they purchase, but businesses also benefit
from increased sales, revenue, and profit. For example, if car sales increase, auto
manufacturers see a boost in profits. Additionally, the companies that make
steel, tires, and upholstery for cars also see increased sales. In other words,
spending by the consumer can benefit the economy and the business sector in
particular.

Because of this, businesses (and some economists) have come to view increasing
consumption as a critical goal in building and maintaining a strong economy,
irrespective of the benefit to the consumer or society as a whole.

The Impact of Consumerism

According to Keynesian macroeconomics, boosting consumer spending through

fiscal and monetary policy is a primary target for economic policymakers.
Consumer spending makes up the lion's share of aggregate demand and gross
domestic product (GDP), so boosting consumer spending is seen as the most
effective way to steer the economy toward growth.

Consumerism views the consumer as the target of economic policy and a cash
cow for the business sector with the sole belief that increasing consumption
benefits the economy. Saving can even be seen as harmful to the economy
because it comes at the expense of immediate consumption spending.

Consumerism also helps shape some business practices. Planned obsolescence

of consumer goods can displace competition among producers to make more
durable products. Marketing and advertising can become focused on creating
consumer demand for new products rather than informing consumers.
Advocates of consumerism point to how consumer spending can drive an
economy and lead to increased production of goods and services. As a result of
higher consumer spending, a rise in GDP can occur. In the United States, signs
of healthy consumer demand can be found in consumer confidence indicators,
retail sales, and personal consumption expenditures. Business owners, workers
in the industry, and owners of raw resources can profit from sales of consumer
goods either directly or through downstream buyers. What about in Guyana?

Disadvantage of Consumerism

1. Can lead to a materialistic society that neglects other values. Traditional

modes of production and ways of life can be replaced by a focus on
consuming ever costlier goods in larger quantities.
2. Consumerism is often associated with globalization in promoting the
production and consumption of globally traded goods and brands, which
can be incompatible with local cultures and patterns of economic activity.
3. Consumerism can also create incentives for consumers to take on
unsustainable debt levels that contribute to financial crises and
recessions.
4. Increase production can lead to environmental externalities; pollution,
depletion of resources, waste disposal.
5. consumerism is often criticized on psychological grounds. It is blamed for
increasing status anxiety, where people experience stress associated with
social status and a perceived need to "keep up with the Joneses" by
increasing their consumption.

6. Can result in inferior goods. As firms may produce goods of lesser quality

to increase sales or encourage repeat purchases.

https://www.awesomefintech.com/term/consumerism/

TWO CENTRAL ISSUES FACE CUSTOMERS: QUALITY AND SAFTETY

PRODUCT QUALITY: Quality of a product is a subjective topic and the quality of

a product differs from person to person. Generally consumers are interested in
the composition and design of the product and for some the functionality and
durability of the product. These all make up the essential aspects of a product.
All are essential aspects of quality. In general, quality is considered the totality
of characteristics and features of a product and may embrace both reality and
perceptions of excellence, conformance to specifications, value, and the degree
to which the product meets or exceeds the consumer’s expectations.

SERVICE QUALITY: As it relates to Service quality, customers are generally

concerned with the service being provided for as advertised or the way expected
by the customer. It is also concerned that the service provided is completed on
time, that all that was promised is delivered and the service provider was
courteous, that there is consistency with the provision of the service and the
service is easy to obtain.

It is said it is difficult to judge quality since it is often based on personal

judgements.

FACTORS THAT BRING THE ISSUE OF PRODUCT AND SERVICE

QUALITY TO THE FOREFRONT:

A.) HOUSEHOLD INCOME: A concern for quality has been driven by the average
consumer household’s family income and consequent demand for good value.
With both adults often working outside the home, consumers expect a higher
lifestyle. In addition, no one has surplus time to hang around repair shops or
wait at home for service representatives to show up. This results in a need for
products to work as they should, to be durable and long lasting, and to be easy
to maintain and fix

B. The Internet, and social media in particular, has also made it possible for
customers to communicate immediately with other customers about their
satisfaction, or dissatisfaction, with a product, and this has heightened
consumers’ exchange of information and expectations. There are many
companies who depend on customer review to improve on their products and
services eg TripAdvisor, hotel industries, resorts, restaurants. One downside to
this has been revelations that an industry of fibbers and promoters has arisen
to sell positive recommendations and raves for a price.

C. Global competitiveness that has dominated business transactions for the last
decade or more. Businesses now compete in a hypercompetitive landscape in
which multinational strategies have given way to global strategies, and the
solutions that once worked no longer will. As firms jockey for position in these
hypercompetitive markets, they vie to attract customers by increasing the value
of the product or service

DIMESIONS OF QUALITY: Quality is judged based on the following (8) critical

factors in relation to a product or service: (1) performance, (2) features, (3) reliability, (4)
conformance, (5) durability, (6) serviceability, (7) aesthetics, and (8) perception.
Performance refers to a product’s primary operating characteristics. For an automobile,
this would include such items as handling, steering, and comfort. Features are the “bells
and whistles” of products that supplement their basic functioning. Reliability reflects
the probability of a product malfunctioning or failing. Conformance is the extent to
which the product or service meets established standards. Durability is a measure of
product life. Serviceability refers to the speed, courtesy, competence, and ease of repair.
Aesthetics is a subjective factor that refers to how the product looks, feels, tastes, and
so on. Finally, perceived quality is a subjective inference that the consumer makes on
the basis of a variety of tangible and intangible product characteristics. It should be
emphasized that these quality dimensions are not distinct. Depending on the industry,
situation, type of contract, or specification, several dimensions may be interdependent.

ETHICS AS IT RELATES TO QUALITY: Ethical Underpinnings. It is often asked

apart from being a competitive and business issue whether quality is has ethical
underpinning. There are Three ethical theories based on the concept of duty that
informs our understanding of the ethical dimensions of quality include (1)
contractual theory, (2) due care theory, and (3) social costs view. The contractual
theory focuses on the contractual agreement between the firm and the customer.
Firms have a responsibility to comply with the terms of the sale, inform the
customers about the nature of the product, avoid misrepresentation of any kind,
and not coerce the customers in any way. The due care theory focuses on the
relative vulnerability of the customer, who has less information and expertise
than the firm, and the ethical responsibility that places on the firm or its sales
person. Customers must depend on the firm providing the product or service to
live up to the claims about it and to exercise due care to avoid customer injury.
The third view, social costs view, extends beyond contractual theory and due
care theory to suggest that, if a product causes harm, the firm should pay the
costs of any injury, even if the firm had met the terms of the contract, exercised
all due care, and taken all reasonable precautions.

SAFETY : Business have a duty and obligation to their consumer

stakeholders. They have to ensure that they sell to them safe products and
services. The concept of safety, in a definitional sense, means “free from harm or
risk” or “secure from threat of danger, harm, or loss.” Practically speaking,
however, the use of virtually any consumer product or service entails some
degree of risk or some chance that harm will come to the consumer who uses
the product or service. Today, it is thought to be important that even financial
services do not cause damage or financial harm. An important question that
never goes away is “how safe” should a product be made? Difficult judgments
about this question often thrust the issue of safety into the ethical category by
many consumers.

In today’s developing world the public is concerned about a variety of potential

or perceived hazards, such as the rise in genetically modified foods and the
dangers of living near toxic waste dumps or nuclear plants. Food and drug
scares, both real and imagined, have occupied much of the public’s attention in
the past several years as questions have been raised about food safety all over
the world.
The issue of food safety has dominated the world over the years and it is a big
issues since there are large corporations which are forced to recall food because
of contamination or bacterial contamination.

There are legislation which was developed to deal with this issue which is of
growing concern around the world. There are several issues of food
contamination which are arisen over the years that have had severe
consequences because of the harm suffered by consumers. In 2009, salmonella
in peanut butter was blamed for nine deaths and Peanut Corporation of America
(PCA) was charged with crimes linked to an alleged cover-up. In 2015, Stewart
Parnell, the former CEO of PCA, received a 28-year prison sentence for his role
in the salmonella-peanut case. The judge said the defendant broke the trust
society places in food companies to assure that consumers are safe. This was
the toughest punishment in U.S. history for a food-borne illness case. Since then,
food recalls involving salmonella in eggs, listeriosis linked to cantaloupes, and
peanut butter tainted by salmonella poisoning have been in the news. One of the
most recent and highly visible food recalls occurred with Blue Bell Creameries
after a deadly listeria outbreak forced a massive recall of ice cream. As of 2016,
the company claims that it only partly knew what went wrong. Blue Bell has
stated that it now has programs in place to effectively control for the bacteria.
On top of these reports, Chipotle has been struggling to survive a food safety
nightmare for quite some time now and its efforts to get back on track have been
highly visible. In a special report titled “Contamination Nation,” it has been
stated that food-borne illness still gets 49 million consumers sick each year and
this is costing the food industry billions of dollars annually. The annual cost of
treatment, lost productivity, and mortality has been estimated to be $56 billion.
There has been a significant increase in both meat and nonmeat recalls in the
past couple years. The main reasons for the recalls have been microbiological
contamination, labeling issues, processing
That as a result of these issues the principles of product safety was
developed.There are ten basic principles of product safety. These principles were
developed by the U.S. Consumer Product Safety Commission. These principles
can be used by corporate decision makers and officials to give direction to their
employees who have responsibility for product safety. These principles may also
provide impetus to middle managers and all employees to suggest creative safety
improvements for their company.

1. Build safety into product design.

2. Do product safety testing for all foreseeable hazards.

3. Keep informed about and implement latest developments in product safety.

4. Educate consumers about product safety.

5. Track and address your products’ safety performance.

6. Fully investigate product safety incidents.

7. Report product safety defects promptly.

8. If a defect occurs, promptly offer a comprehensive recall plan.

9. Work with the Consumer Product Safety Commission (CPSC) to make sure
your recall is effective in Guyana CONSUMER AFFAIRS COMMISSION/FOOD
AND DRUG ANALYST DEPT

10. Learn from mistakes—yours and others’

BUSINESS RESPONSE TO COMSUMERS AS STAKEHOLDERS:

Companies today employ a host of different customer service programs, all of

which are aimed at creating satisfied customers who will demonstrate loyalty
and will return for future purchases. In addition, firms use a variety of
approaches that specifically address the issue of quality, primarily in the
production process, and these embrace safety as one significant feature. Quality
improvement initiatives such as

1 TQM: Total Quality Management Programmes: TQM may be defined as a

continuous quest for excellence by creating the right skills and attitudes in
people to make prevention of defects possible and satisfy customers/users totally
at all times. TQM is an organization-wide activity that has to reach every
individual within an organization. Total Quality Management (TQM) is an
approach to improving the effectiveness and flexibility of business as a whole. It
is essentially a way of organizing and involving the whole organization; every
department, every activity, every single person at every level. TQM is regarded as
an integration of various processes characterizing the behavioural dynamics of
an organization. For this, an organization is referred to as a total system (socio-
technical), where all the activities carried out are geared towards meeting the
requirements of customers with efficiency and effectiveness.

2. Six Sigma: This is a process that makes use of statistics and data analysis to
analyze and reduce errors or defects. In this process, the purpose is to improve
cycle times while reducing manufacturing defects to no more than 3.4 defects
per million units or events:

3. Lean Six Sigma: Lean Six Sigma is a team-focused managerial approach that
seeks to improve performance by eliminating resource waste and defects. It
combines Six Sigma methods and tools with the lean manufacturing/lean
enterprise philosophy. It strives to eliminate the waste of physical resources,
time, effort, and talent while assuring quality in production and organizational
processes. Simply put, Lean Six Sigma teaches that any use of resources that
doesn't create value for the end customer is considered a waste and should be
eliminated.
4.Kaizen kaizen, which means “improvement,” and refers to activities that are
continuously involving all employees, management, and workers toward process
improvement. Kaizen is also seen as a company-wide improvement mindset that
is focused on customer satisfaction.

5. ISO 9000: ISO 9000 is a set of international standards on quality

management and quality assurance that have a customer focus. The standards
are based on quality management principles that senior management can apply
for organizational improvement.

Those methods are being used systematically, but they have not solved all the
problems; however, they and other techniques have the potential for addressing
the problems in a significant way if they are properly formulated and
implemented. In addition to these specific responses, a consumer focus and
orientation needs to permeate management decision making if the concerns of
consumers are to be handled effectively. In today’s business environment,
consumers have many choices. Consequently, companies have no alternative
but to internalize the consumer focus if they are to succeed.

SEE TEXT FOR CONSUMER STAKEHOLDER MODEL PG 452

RIGHTS OF CONSUMERS

In 1962, President John F. Kennedy outlined what he called the Consumer Bill
of Rights. The bill stated that every person has four basic consumer rights—the
right to be informed, the right to choose, the right to safety, and the right to be
heard. These rights received a lot of attention from the consumer movement, a
movement to pass laws protecting consumers from unfair and unsafe business
practices. Over the years other rights were added.

Basic Consumer Rights

Basic consumer rights ensure a level of protection for consumers owed by a supplier of
goods or services.

Right to Safety

The assertion of this right is aimed at the defense of consumers against injuries caused
by products other than automobile vehicles, and implies that products should cause no
harm to their users if such use is executed as prescribed.

Right to Be Informed

This right states that businesses should always provide consumers with enough
appropriate information to make intelligent and informed product choices. Product
information provided by a business should always be complete and truthful. This right
aims to achieve protection against misleading information in the areas of financing,
advertising, labeling, and packaging.

Right to Choose

The right to free choice among product offerings states that consumers should have a
variety of options provided by different companies from which to choose. Legislation
makes provision for different businesses to operate in Guyana.

Right to Be Heard

This right asserts the ability of consumers to voice complaints and concerns about a
product in order to have the issue handled efficiently and responsively.

Right to Satisfaction of Basic Needs

To have access to basic, essential goods and services: adequate food, clothing, shelter,
health care, education, public utilities, water, and sanitation.
The Right to Redress

To receive a fair settlement of just claims, including compensation for

misrepresentation, shoddy goods or unsatisfactory services.
Right to Consumer Education

To acquire knowledge and skills needed to make informed, confident choices about
goods and services, while being aware of basic consumer rights and responsibilities
and how to act on them.

Right to a Healthy Environment

To live and work in an environment which is non-threatening to the well-being of present

and future generations.

There are legislation and government agencies which provide

safeguard for consumers. In Guyana legislation to protect consumers

includes:

CONSUMER AFFAIRS ACT NO.13 OF 2011, This Act is to promote and protect
consumer interests in relation to the supply of good and services and related
purposes. This Act also covers a number of areas relating to the rights of
consumers, inclusive of duties of suppliers, unfair trade practices, unfair
contracts, electronic sales.
Part 1V the Act extensively dealing with the rights of consumers by
protecting consumer, it makes provisions for warranties to be given to
consumers, the right to consumers to be informed about a product or
service, the right to return goods or refuse services etc.

COMPETITION & FAIR TRADING ACT NO.11 of 2006 90:07:

An ACT to promote, maintain and encourage competition and to prohibit the
prevention, restriction or distortion of competition and the abuse of
dominant positions in the trade; to promote the welfare and interests of
 consumers, to establish a Competition Commission and for connected
matters.

This Act also makes provision for provision my extensively dealing with the
rights of consumers by protecting consumers from unfair and deceptive sale
practices,( advertisement of a product must not contain information which
misrepresents the product by deliberate false advertising or by omission,
causing a consumer to be misled). bait and switch (a technique used by
companies to lure the consumer into buying a product of a higher price by
initially advertising a product at a low price but in actuality selling a different
product at a higher price), pricing and price gouging ( a seller steeply
increases the price for goods and services, usually after a demand or supply
spike)

https://parliament.gov.gy/publications/acts-of-parliament/consumer-affairs-act-2011/

COMPETITION AND CONSUMER AFFAIRS COMMISSION (Receives it’s madate

from the Competition and Fair Trading Act and the Consumer Affairs Act) The
Consumer Affairs Unit (CAU) of the Competition and Consumer Affairs Commission is
charged with the Legal mandate of administering and enforcing the Consumer Affairs Act
#13, 2011 (CAA) with purview of durable goods and services. The Consumer Affairs Act
protects consumers from being unfairly treated by businesses and also provides a legal
framework by which businesses can utilize to pattern their modus operandi.

The Unit, in its effort to bring the business community into compliance, inclusive of
enforcement of the CAA, incorporates awareness methods that advocates the importance
of building a viable consumer–supplier relationship predicated on the theme “value for
money”.
Key Responsibilities of the Consumer Affairs Unit
Our responsibilities as a consumer protection body extend beyond the investigative and
adjudicative phases. We have strived to become a proactive organization that can
create an impact on the behavioral pattern of both consumers and suppliers. In
furthering our objectives, the unit’s key responsibilities are inclusive of:

 Investigating consumer complaints with respect to violations of the Consumer

Affairs Act.

 Assisting in the development of an informed, responsible and discerning consuming

public.

 Monitoring the legislative environment to ensure effective safeguard of consumer

rights.

 Creating a climate for understanding the role of Government in protecting consumer

interests.

 Promoting and ensuring compliance with quality standards for consumer goods and

services.

 Providing the enabling environment and institutional support that would create

avenues for consumer education and redress.

 Adopting code of ethics, which relate to consumer practices.

 Constantly conducting outreach programs and campaigns, which also includes

collecting, collating and disseminating information on matters affecting the interests

of consumers.

 Product Safety and Recalls

https://ccac.gov.gy/the-consumer-affairs-unit/

GUYANA NATIONAL BUREAU OF STANDARDS.

The Guyana National Bureau of Standards (GNBS), operating under the Ministry of
Tourism Industry and Commerce is a semi-autonomous governmental
organization responsible for standards and quality in Guyana. GNBS was
established in March 1985, under Act No. 11 of the year 1984. It has the legal status
of a statutory corporation governed by a National Standards Council (NSC), which
is appointed by the Minister of Tourism Industry and Commerce. The GNBS is the
only National Standards Body in Guyana. It is also an ISO 9001:2015 certified
agency.

The roles of the agency includes the promotion of standardization for economic
development and consumer protection through standards development,
promotion and implementation, metrology services and conformity assessment
and to improve the quality of goods and services in Guyana through the process
of standardization.

https://gnbsgy.org/

PUBLIC UTILITES COMMISSIONS ACT 25:01 which provides for the creation of the
PUBLIC UTILITIES COMMISSION. The main objective of the commission is to

regulate utilities for effective services and protecting consumer interest/

Functions of the Commission

1. To act in a regulatory, investigatory, advisory and enforcement capacity.

2. To review and approve Development and Expansion plans.
3. To establish, monitor and review rates.
4. To conduct investigations into the standards of service of the service
providers.
5. To facilitate interconnection and access between or amongst service providers.

https://www.puc.org.gy/
FOOD AND DRUG DEPARTMENT: The Government Analyst –Food and Drug
Department (GA- FDD) falls under the purview of the Ministry of Public Health .This
Department was initially established in the late 19th Century to aid in performing

analyses for the sugar industry. Later, its role was expanded with the enactment of Food
and Drug Act of 1971, the Food & Drug Regulation 1977 to address safety and trade
related issues for food, drugs, cosmetics and medical devices. To this end the
Department is mandated in ensuring that items to which the Act and Regulations
applies are safe and pass quality

The role of GA-FDD is to evolve and maintain the status of a Conformity

Assessment Body through the attainment of ISO17025 & ISO17020 Accreditation.
The Department also aims to facilitate local and international trade, protect
consumers from substandard items through analytical testing and inspection and
enforcement activities.
The Government Analyst – Food & Drug Department, Ministry of Public Health
aims to protect the health and well being of consumers and to enhance the
competitiveness of industries regulated under the Food and Drug Act 1971,
through-

 Ensuring the safety and quality of food, beverages, cosmetics, medical devices,
drugs and water through the establishment of safety and quality assurance systems;
 Delivering a timely and efficient service to all clients of the Department;
 Providing precise and accurate analytical results that are “fit for purpose” and meet
customer satisfaction;
 Aiding International Trade through import and export inspection and certification;
 Maintaining a highly skilled, committed and courteous team.

https://www.gafdd.gy/

https://dpi.gov.gy/tag/government-analyst-food-and-drug-department
https://www.researchgate.net/publication/312054032_TOTAL_QUALITY_MANAGE
MENT

Live Case

The case of the Wrong car engine – 2 participation makes will be given. Each
person must contribute.

On the 5th day of January, 2023 Ray Newton approached Mr. Engine Wrong, a Mechanic,
to purchase an engine for his Jeep. The engine was from a motor car owned by Mr.
Wrong. Mr. Wrong and Mr. Newton agreed that the total cost of the engine was $300,000.
That part of Mr. Wrongs job included the removal of the engine from his motor car and
delivering it to a welder to have same placed in Mr. Newton’s jeep. That prior to the
removal of the engine from Mr. Wrongs’ Car Mr. Newton made several inquiries from Mr.
Wrong about the engine’s fit and suitability for his jeeb. That Mr. Wrong and another
associate mechanic of his, assured Mr. Newton that the engine was the perfect fit since
he already conducted measurements to determine same.

As part of the contractual terms Mr. Wrong also indicated that he would not remove his
engine from his car if he does not receive all of his money upfront. Mr. Newton agreed,
paid all of the money upfront but Mr. Wrong failed to issue him with a receipt upon
payment.
The said engine was delivered to the Welder and Mr. Newton repeatedly asked Mr. Wrong
for a receipt as evidence of his purchase but was told by Mr. Wrong that “he would drop
back the receipt”.

At the Welder, in the presence of both Mr. Newton and Mr. Wrong the Welder indicated
that the engine looks too big and may not fit into the jeep. Mr. Wrong disagreed and took
out a tape measure, measured the engine and the jeep and indicated that the engine will
fit.

Less than 24hrs after the transaction the Welder was found to be correct, the engine could
not fit into the jeep. When Mr. Wrong was contacted he told Mr. Newton that that was not
his problem and that the engine was now Mr. Newton’s and he could sell it and he could
go to the police if he wished.

Mr. Newton went to the Police Station to make a report but was told by the station
Sergeant that it was a private matter and even if they were to pick up Mr. Wrong there
was no offence to change him with as the transaction was to pay $300,000 and receive
an engine which he did. Mr. Wrong after being advised turned up at the station and agreed
to take back the engine but insisted he is only repaying $180,000.00 to which Mr. Newton
disagreed.

Advise both Mr. Wrong and Mr. Newton. Consider the following:

1. Which legislation would govern this transaction

2. Warranty and return of goods
3. The responsibilities of both parties
4. Redress both parties can seek
5. Whether Mr. Newton should accept the $180,000.00