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State two benefits to the consumer of the Hire Purchase Acts (1946, 1960) - Leaving Cert Home Economics - Question 12 - 2008
Question 12
State two benefits to the consumer of the Hire Purchase Acts (1946, 1960). (i) (ii)
Worked Solution & Example Answer:State two benefits to the consumer of the Hire Purchase Acts (1946, 1960) - Leaving Cert Home Economics - Question 12 - 2008
Step 1
(i) Ten day cooling off period; conditions must be provided in writing to the consumer.
Answer
One major benefit of the Hire Purchase Acts is the ten-day cooling-off period. This allows consumers to reconsider their decision after entering into a hire purchase agreement. During this time, they can review the terms and conditions provided in writing. This acts as a form of consumer protection, ensuring that buyers have a chance to back out if they realize the terms are not favorable.
Step 2
(ii) Goods cannot be repossessed without a court order, if more than one third of the price has been paid.
Answer
Another significant benefit is that goods purchased under hire purchase cannot be repossessed without a court order, provided that the consumer has paid more than one third of the total price. This provision protects consumers from losing their property abruptly and ensures that they have a fair chance to fulfill their payment obligations before any action can be taken against them.