Fabulous Buys runs a mobile trader business using truck shops and various sales techniques. It sells consumer goods, principally clothes and food, on credit at significantly higher prices than what is charged in mainstream stores.

Christine is a single mother with [3] kids and on a benefit. She struggles to get from one week to the next as her ex-husband never pays maintenance. She approaches the truck and makes enquiries about purchasing food. Jack, the salesperson, is very kind to Christine and listens to her experience with her ex-husband and money woes. Jack encourages her to fill a shopping basket with what she needs - telling her she can 'pay it off later'. Feeling heard, Christine fills up the basket with food but wants to spoil herself a little, too - so she buys herself a new pair of shoes.

Jack bags up Christine's purchases. He tells Christine she must sign a few documents before taking the purchases home today. Christine asks Jack - 'is this going to be expensive?" - Jack reassures her 'not at all - she should get a letter when the first payment is due'. Jack showed Christine where to sign, but the font on the document was too small for her to read. Jack told her not to worry. Christine signs the document.

With reference to Credit Contracts and Consumer Finance Act 2005 and case law nz - Advise Fabulous Buys about its trade practices to solicit customers.

Answer rating: 100% (QA)

In the described scenario there are several aspects of Fabulous Buys trade practices that may raise ... View the full answer