Activity 2: Case Study: Refunds and warranties (Commerce)
1. PLAY the video segment
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In the video, the three flatmates discuss the computer offer they see on TV.
Nik has a problem with Sophie buying a computer over 60 months. |
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2. READ the Case Study.
Sophie bought some web design software at a shop near the company she works for. She bought it from a basket and above it there was a sign that read 'SALE!! - all items half price'. At the counter Sophie noticed that there was another sign behind the counter: 'No Refunds on Sale Items'.
That evening she tried the software but it was faulty. The computer would not accept the CD-ROM. Sophie was furious!!
3. GO to Just the Facts - Buying Stuff and click on 'Implied conditions, Refunds and Warranties'.
4. DISCUSS with a partner what Sophie can do next. What evidence will Sophie need if she wants to return the software?
Sophie went back to the shop and asked for a refund. The sales assistant said "no, she couldn't have a refund because the item was on sale." Sophie asked to see the manager but he was not in the shop.
What can Sophie do now?
Sophie told Tye what had happened the next morning at breakfast. Tye explained that he had a similar problem with a game he tried to return once. He gave Sophie a copy of a letter he had written to the company to make a complaint.
This is the complaint letter that Tye had written. Read the letter.
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Play-up Games Store
22 Long Street
Chaps Hill 2405
Dear Mr Play-up,
I bought my Spinechiller Supergame from you and it's completely stuffed. If you don't give me my money back I will have to sue you.
Signed
Tye |
5. LIST at least four reasons why the letter isn't effective.
Being a smart cookie, when Sophie wrote a letter of complaint she did not use Tye's letter as a model. Here is the letter she wrote:
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Sophie Harrison
98 Strange Road
Talula NSW 2968
The Manager
Dippy Computers
123 Main Street
Northbend NSW 2999
Dear Sir,
I am writing to seek a refund for WEBdez software which I purchased at your store on the 8 th February. I have enclosed a photocopy of the receipt.
The disk is faulty and the computer won't accept it.
Yesterday your sales assistant refused to give me a refund because the software was on sale. However, regardless of whether the item was on sale it is not of merchantable quality. I paid for software but I got an unusable piece of plastic.
I would like a refund rather than a replacement as I now doubt the quality of WEBdez products.
Yours sincerely,
Sophie Harrison
10 th February 2000 |
The shop owner replied to Sophie's letter and agreed to provide her with a refund.
Here is Sophie's advice:
When writing a letter of complaint, make sure you:
- state the problem clearly
- provide dates and details
- don't use emotive language
- state how and when you would like the problem resolved
- don't forget your contact details.
This activity can be found in the NSW Money Stuff Teacher resource book – Commerce page 27.
Explore additional learning activities (which include extension and revision tasks) in the print resources section under Print resources - Victoria.
Linked Learning Outcomes - NSW
Core Part 1.1 Consumer Choice
Focus: Students learn how to identify, research and evaluate options when making decisions related to solving those problem and issues that confront consumers.
Students learn about: Consumer protection.
Outcome LS.4:
Students learn about: The need for consumer protection.
Learning Outcomes – Victoria
Victorian Essential Learning Standards (VELS) Discipline-based learning
Domain: The Humanities - Economics
Dimension: Economic knowledge and understanding
Level 5
Students explain the nature of the economic problem and how economic choices involve trade-offs that have both immediate and future consequences.
Students make informed economic and consumer decisions, demonstrating the development of personal financial literacy.
Level 6
Students discuss and explain what it means to be an ethical consumer and producer and identify examples of ways values can affect the economic decision making of consumers, producers and governments.
Students explain the role and significance of savings and investments for individuals and for the economy, and demonstrate the skills required to successfully plan and manage personal finances.
Learning Outcomes - Western Australia
(Society & Environment)
NSS 3.3 Understands that flows exist in the production, distribution and exchange of goods and services.
R 5.2 Understands that people's ability to manage resources in enterprising ways is affected by their access to, and ownership of, various resources.