PVL3702 EXAM PACK 2016-2021 100 percent CORRECT, BEST FOR EXAM REVISION

QUESTION 1

Discuss the impact of the Consumer Protection Act 68 of 2008 upon the law of contract with reference

to its aims, objectives, scope, national regulatory institutions, and sanctions. [15]

The CPA is bound to have a huge impact on the conduct of businesses in South Africa, and the law of

contract.

The primary purpose of the Act is to protect consumers from exploitation in the marketplace, and to

promote their social and economic welfare. More specifically, it aims to:

• Establish a legal framework for the achievement and maintenance of a consumer market that is fair,

accessible, efficient, and responsible, for the benefit of consumers generally;

• Promote fair business practices;

• Protect consumers from unconscionable, unjust, or unreasonable business practices.

The scope of the Act is very wide. It applies to:

• Most transactions concluded in the ordinary course of business between suppliers and consumers

within South Africa, as well as;

• The promotion of goods and services that could lead to such transactions, and;

• The goods and services themselves once the transaction has been concluded.

A supplier is any person (including a juristic person, trust, and organ of State) who markets any goods or

services.

A consumer includes not only the end-consumer of goods and services but also:

• Franchisees

• Relatively small businesses in the supply chain (asset value or annual turnover below the threshold

determined by the Minister)

The Act does not apply to any transaction in terms of which goods and services are promoted or

supplied:

• To the State

• To a juristic person with an asset value or annual turnover above the threshold

• Employment contracts

• Credit agreements

• Transactions exempted by the Minister

These rights are protected and enforced not only through the courts, but the National Consumer

Commission and the National Consumer Tribunal. Failure to comply with provisions of the Act might

attract various sanctions, commencing with compliance notices and leading possibly to the imposition of

fines and criminal penalties. Contractual provisions in contravention of the Act may be declared null and

void to the extent of non-compliance.

QUESTION 2

State the elements of a fraudulent misrepresentation. [5]

1. A representation

2. which is, to the knowledge of the representer, false;

3. which the representer intended the representee to act upon;

4. which induced the representee to act; and

5. that the representee suffered damage as a result

QUESTION 3

State the different forms of breach of contract. [5]

1. Mora debitoris

2. Mora creditoris

3. Positive malperformance

4. Repudiation

5. Prevention of performance

QUESTION 4

X, an organiser of art exhibitions, contracted with Y for an exhibition to be held on 24 to 27 July. These

dates were the only dates mentioned during negotiations. After having been pressurized by X, Y

hurriedly signed a standard form contract without reading it. The contract contained a clause

permitting X to change the dates of the exhibition unilaterally. Thereafter, X changed the dates. X had

no reason to believe that Y would have signed the contract if he had known of the term. Y averred

that the contract was void. Will Y succeed in his attempt to have the contract set aside? Substantiate

your answer and refer to relevant case law. Do not apply the Consumer Protection Act to this

problem. [15]

The essence of this problem is whether X and Y have reached consensus. Y will not be contractually

bound if this requirement for a valid contract is absent.

At the outset, it must be considered whether agreement (consensus ad idem) as a contractual basis

exists between the parties, as required in terms of the will theory. Consensus has three elements:

1. The parties must seriously intend to contract