Australian businesses are required by law to offer a refund if the product or service
A - HSC - SSCE Business Studies - Question 4 - 2020 - Paper 1
Question 4
Australian businesses are required by law to offer a refund if the product or service
A. does not match the description.
B. is no longer required by the customer.
C.... show full transcript
Worked Solution & Example Answer:Australian businesses are required by law to offer a refund if the product or service
A - HSC - SSCE Business Studies - Question 4 - 2020 - Paper 1
Step 1
A. does not match the description.
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Answer
This option is correct because Australian consumer law stipulates that businesses must provide a refund if the product does not conform to its description. If a customer receives a product that is not as described, they have the right to a refund.
Step 2
B. is no longer required by the customer.
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Answer
This option is incorrect. A change of mind is generally not covered under the consumer guarantee, so customers cannot automatically receive a refund if they no longer want the product.
Step 3
C. damaged by the customer after purchase.
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Answer
This option is also incorrect. If a product is damaged after purchase by the customer, the business is not obliged to offer a refund, as the damage is not a result of a defect or fault in the product.
Step 4
D. is available at a competitor’s business for a cheaper price.
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Answer
This option is incorrect since being cheaper at a competitor does not qualify for a refund under the law. Refund policies are not influenced by price comparisons with other businesses.
