WAEC Commerce 2018 Theory — Question 7

Model answer

(a) A contract can be defined as an agreement between two or more parties which has consideration and is enforceable under law. (b) Reasons for consumer protection: exploitation — consumer protection is mainly aimed at protecting the consumer against exploitation by producers as stipulated in the Price Control Act; substandard goods — protection is necessary to protect consumers so as to ensure they get value for what they pay for, without it producers can produce anything for the consumer; fake and misleading advertisement — some producers deceive consumers about a product, and through protection, consumers are made safe from fake adverts; credit purchase agreement — when credits are given to consumers, in most cases all the terms are not explained, so consumer protection ensures consumers are not cajoled into entering unfavourable credit purchases.