(a) Define a contract.
(b) State and explain four reasons for consumer protection.
Explanation
a. A contract is a agreement between two or more persons which is enforceable in law and intended to have legal relationship.
b. Reasons for consumer protection
i. Exploitation: the consumers are proted from exploitation by manufacturers through indiscriminate price increase. This is done through the price control Act.
ii. Substandard goods: Manufactures may produce goods without taking into consideration the quality desired. The standards Organisation Act checks such practice.
iii. Deceptive weights and measures: Sellers may use incorrect weights and measurements in selling goods to customers. The weights and measures Act helps prevent such practices.
iv. Sale of harmful food and Drugs Act protects the consumers against the sale of such goods.
v. Credit purchase agreement: Consumers are often not well informed about the details of credit sales agreements. They may inadvertently sign false credit facilities. The Hire Purchase Act is aimed at protecting the rights of such customers.
vi. Misleading advertisement: May claims made by advertisers about the performance of their product are not correct. The Trade Description Act was enacted to check such practices.
vii. Description of goods: Consumers are protected against unscrupulous sellers who would sell goods that are not fit for the purpose or differ from the samples or decription. The Sales of goods Act is enacted to curb this practice.