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NEW QUESTION 49
Bethy sees a coat on shop window with a $100 price tag. She comes and asks the shop owner to buy it. The owner states that the price has not been updated and the current price for the coat is $120. Bethy says the owner should honour the quoted price on window shop. Is Bethy correct?

A. Yes, $120 for a coat is extremely unreasonable and the owner's later offer therefore voidB. No, the owner is revoking his initial offer to sell at $100 and he is proposing new offer to BethyC. Yes, the owner has made an offer by showing his product on the shop window and he must honour that offerD. No, the display on shop window is just an invitation to treat and the owner may change the price at his will

Answer: D

Explanation:
Based on two famous precedents, Fisher v. Bell (1961) and Pharmaceutical Society of Great Britain v. Boots Cash Chemists (1953), the display on shop window is considered as an invitation to treat. The shop owner can change the price when his customer asks to buy.
Reference:
LO 1, AC 1.2

 

NEW QUESTION 50
Is the government only source of industrial standards within a country?

A. Yes, while ISO make standards for international trade, the government standardises other facets of their countryB. No, an organisation can also generate its own internal standardsC. No, the government can only adopt standards regarding security and defenceD. Yes, the standards must be made by legislative branch of the country

Answer: B

Explanation:
A standard is a document that sets out requirements for a specific item, material, component, system or service, or describes in detail a particular method or procedure. Standards are established by consensus and approved by recognized standardization bodies.
There are several different types of standards. Some of the most commonly-used standards set out the requirements that a particular kind of product, service or process must fulfil, in order to establish that it is 'fit for purpose'. Other types of standard relate to methods of testing, terminology and definitions, information requirements, or the compatibility of connections.
Standards provide individuals, businesses and all kinds of organizations with a common basis for mutual understanding. They are especially useful for communication, measurement, commerce and manufacturing.
Standards make trade easier by ensuring compatibility and interoperability of components, products and services. They bring benefits to businesses and consumers in terms of reducing costs, enhancing performance and improving safety.
Standards are voluntary, which means that businesses and other organizations are not legally obliged to apply them. However, in certain cases standards may facilitate compliance with legal requirements, such as those contained in European directives and regulations.
Standards can be made by a company, a standard organisation (such as ISO or BSI) or regulatory bodies.
Reference:
- CIPS study guide page 93-94
- Standards and your business
LO 2, AC 2.1

 

NEW QUESTION 51
In the UK, Unfair Contract Terms Act 1977 regulates which of the following?

A. Rule of offer and acceptanceB. Validity of a contract when it is formed on the basis of misrepresentationC. Effectiveness of contract terms in the standard terms and conditionsD. Rules regarding battle of the forms

Answer: C

Explanation:
The Unfair Contract Terms Act 1977 (c 50) is an Act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of disclaimers of liability. The terms extend to both actual contract terms and notices that are seen to constitute a contractual obligation.
Under this regulation, if a clause within the standard terms in use is considered as 'unfair', the clause will be ineffective (or the other party will be entitled to avoid the clause). At court, the clause that is deemed to be unfair will undergo a 'reasonableness' test or an 'unfairness' test.
Reference:
- Maybe your standard terms are ineffective. Here's why
- CIPS study guide page 135
LO 3, AC 3.1

 

NEW QUESTION 52
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