Chapter 8

Consumerism

p.220 Answers to Think it over 1 The major wrongdoings include: Exaggerating the positive effects of the products Selling products that are hazardous to human health 2 The government should enact a new law, and properly and strictly enforce it to:

ensure that health food marketers provide consumers with accurate product information prohibit health food marketers from selling health food items that contain hazardous ingredients

In order to protect themselves, consumers should: buy products from reputable companies search for product information from various sources and evaluate it carefully before purchasing report marketers malpractices to the Hong Kong Consumer Council

take legal action against dishonest companies whenever necessary

Health food consumers have the following responsibilities: They should always be alert and question the quality of the products they consume. They should always examine carefully if they are really getting value for money. When they are mistreated by unethical marketers, they must take appropriate measures to rectify/protect their rights. They should not remain silent if their rights are infringed. 4 Consumerism refers to the activities of the government, businesses, independent organisations and consumers that aim at protecting consumer rights. In this case, the concept of consumerism highlights the importance of the aforementioned organisations (government, businesses, independent organisations) to ensure that health food items sold in the market meet certain standards. As for consumers, consumerism also reminds them of the importance of evaluating available health food items carefully before purchasing them. When their rights are infringed, they should take appropriate action to protect themselves.

p.221 Teachers guide News from newspapers and the Internet provides a good source of information for understanding consumer rights and responsibilities. Teachers can begin by showing students real-life examples or recent news to arouse students interest in this topic. The Hong Kong Consumer Council also has
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regular reports to alert consumers about their rights. Teachers are advised to keep abreast of the latest news. While emphasising consumer rights, teachers should avoid presenting a one-sided view of the issue. Teachers can guide students into pondering how consumers can be responsible consumers. Additional materials related to consumer rights and responsibilities published by the Hong Kong Consumer Council (i.e., Guide to Consumer Rights and Responsibilities) are very useful in teaching students about their responsibilities. Some of the guidelines are summarised as additional information on p.238 and p.239. Teachers can get more information on http://www.consumer.org.hk/website/ws_en/competition_issues/Consumer_Rights_Responsibilities /2006100401.pdf. Additional information As buyers usually have too little information, education, and protection to make wise decisions when facing sophisticated sellers, consumer advocates call for consumer rights. Consumerism may also refer to the movement in which citizens and government agencies strive to improve the rights and power of buyers in relation to sellers. Consumer rights can also be protected by giving more power to government authorities (i.e., the Hong Kong Consumer Council).

p.224 Teachers guide Draw students attention to the differences between addictive consumption and excessive buying. Activity 1 Ask students if they have ever been involved in addictive consumption or excessive buying. Discuss with them (a) how these consumption patterns affect their normal life? (b) how they can avoid these consumption patterns?

p.225 Additional information Counterfeit product and intellectual property rights Although counterfeit products infringe intellectual property rights, there is a strong demand for them. In other words, many consumers want to buy counterfeit products. While consumers expect companies to respect their various consumer rights, they should also respect the intellectual property rights that companies are entitled to.

p.227 Answers to Discussion questions 1 The possible negative impacts include: Loss of sales for Nintendo As some people may have been deceived into buying pirated Nintendo software, they may believe the software they bought is genuine. Hence, if the pirated software turns out to be of poor quality, they may think that Nintendo is selling substandard products. This will hurt the companys reputation. 2 The government should tighten legislation to prohibit the selling and buying of pirated software. It should also ensure that this legislation is enforced strictly and properly. Since Nintendo has spent a lot of its resources and time developing the software, it deserves to profit from its hard work. Consumers who buy pirated Nintendo software are depriving Nintendo of its right to enjoy these profits. Moreover, manufacturing counterfeit products is an illegal activity as this infringes the legitimate brand name manufacturers intellectual property rights. Consumers who buy counterfeit products are thus unethical. This can be regarded as an endorsement of an illegal activity.

p.228 Check Your Progress Q1 (a) Consumers should exercise self-control to avoid addictive consumption. They should: carefully allocate their resources (e.g., money, time) in terms of consumption. always remind themselves that they should avoid buying products that are hazardous in nature. (b) Consumers should exercise self-control to avoid excessive buying. They should: not blindly believe the descriptions in advertisements. carefully evaluate if they really need the product, and the actual quantity they need. This can be achieved by asking themselves questions such as (i) Do I really need this product? (ii) For how long would I like to use this product? (iii) Will it last as long as I would like it to?

Q2

The benefits for consumers include: avoiding wasting money and, consequently, avoiding worsening their financial situation. being less materialistic and having a healthier and more balanced lifestyle. The negative consequences include: discouraging legitimate brand name manufacturers from investing in research and
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Q3

development, or developing new products, thus hampering the growth of the industry.

hurting the earnings of legitimate brand name manufacturers. A considerable portion of wealth will be channelled to unethical companies that manufacture and sell counterfeit products.

p.229 Additional information The detailed description in a contract is highly essential for complex business transactions that involve a large payment.

p.232 Answers to Discussion questions 1 There was a contract between China Eastern Airlines and Tang. It was evident that the airline company had issued a ticket to Tang at a certain price (offer) and Tang had paid for that ticket (acceptance). The ticket issued by China Eastern Airlines and the money paid by Tang are the considerations. 2 China Eastern Airlines was supposed to provide delivery services (including taking the passenger and his luggage to the destination) to Tang. The breach mainly concerned its failure to deliver Tangs luggage to the destination. It could not even locate Tangs luggage before the return date on his ticket. The remedies included compensation of RMB1,000 and a refund equivalent to half the cost of a round-trip ticket. The importance of contracts is related to the following: As a contract states the terms and conditions agreed to by the contractual parties, it helps avoid misunderstanding and disputes. Because of the presence of a contract, both parties were well aware of their respective rights and responsibilities. Thus, when Tang noted that the airline company did not fulfil its responsibilities (couldnt find the luggage on time), he could take legal action against it. A contract ensures the availability of remedies in case of any breach. This enhances peoples confidence in making contracts with others. If the other contractual party breaches the contract, a contractual party will be legally protected through remedies. Hence, Tangs rights were protected and properly compensated. This will prompt unethical businesspeople to avoid malpractice or wrongdoing next time. For his part, Tang will feel safe about making various kinds of purchases as he knows that his contractual rights are well protected by law.
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Check Your Progress Q4 By taking legal action, the consumer can obtain: Damages: If the quality of the product is significantly worse than what was originally agreed to in the contract, the buyer has the right to reject the product and not pay for it. Specific performance: The court can also issue an order called specific performance to enforce completion of the contract. In this case, the seller will be compelled to deliver the Hi-Fi system with functions which the two parties agreed on.

p.233 Try This Activity A1 Two possible examples are: Taking the MTR (a contract between the MTRC and the student) Buying a mobile phone from Nokia (a contract between Nokia and the student) (Accept any other reasonable examples) Teachers guide The Lehman Brothers mini-bonds fraud unfolded in 2008 following the collapse of Lehman Brothers, a United States investment bank. Many investors were told by banks that their investment had lost much or all of its value. In fact, Lehman mini-bonds were not bonds, but consisted of high-risk, credit-linked derivatives. As this case is still ongoing, teachers may need to update themselves with information about the latest developments. Activity 1 Teachers may use the Lehman Brothers mini-bonds fraud as an example to discuss with students: (a) the rights that consumers have (b) how consumers fight for their rights

p. 234 Additional information Regarding product safety, consumers also play a role in protecting themselves. They have a responsibility to: Check products thoroughly and immediately upon delivery Raise any problems with the trader first, before attempting to contact the manufacturer. Always read any warning and product information regarding installation instructions, maintenance and safe operation Use products according to the instructions, and only for the intended purpose (Source:

http://www.consumer.org.hk/website/ws_en/competition_issues/Consumer_Rights_Responsibilities /2006100401.pdf) Additional information With a view to helping consumers make informed food choices, a nutritionl labelling scheme for prepackaged food is being introduced in Hong Kong. The Amendment Regulation was enacted by the Legislative Council on 28 May 2008 and will come into effect on 1 July 2010. The nutritional labelling scheme covers nutritional labelling and nutritional claims (which includes nutrient content, nutrient comparison and nutrient function claims). The Amendment Regulation requires all prepackaged food to label the amount of energy plus seven core nutrients, namely (i) protein, (ii) carbohydrates, (iii) total fat, (iv) saturated fat, (v) trans fat, (vi) sodium and (vii) sugars, as well as any nutrient for which a claim is being made.

p.235 Teachers guide: Teachers can provide students with more details about the opening up of public bus services on Hong Kong Island. Before 1993, public bus services on Hong Kong island were monopolised by China Motor Bus (CMB). However, owing to passengers complaints about its poor service, the government forced CMB to surrender the operation of 26 and 14 routes to Citybus in 1993 and 1995, respectively. This forced surrender was aimed at giving bus passengers more choices as well as urging CMB to improve its services. However, the public was still not satisfied with CMBs services after the surrender. Consequently, CMBs franchise was terminated in August 1998. Bus services on Hong Kong island are now shared by Citybus Limited and the newly established bus company, New World First Bus Service Limited.

p.236 Teachers guide Some environmentalists suggest that a companys goal should not be to maximise consumption, consumer choice or consumer satisfaction, but to maximise quality of life. Here, quality of life not only means the quantity and the quality of consumer goods and services, but also the quality of the environment. They claim that environmental costs should be considered by both producers and consumers. (The role of consumers to protect the well-being of the environment will be discussed in detail on p.239.) Environmentalists are also concerned with forest depletion, acid rain, loss of the atmospheres ozone layer, toxic wastes and litter. Their particular interests also relateto health problems caused by air pollution, water pollution and chemically treated food. Teachers can guide students in pondering
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how a company can recognise its social responsibilities to protect the consumer s right to a healthy and sustainable environment. Additional information The government should also take on the role of protecting the right to a healthy and sustainable environment. It could encourage businesses to fulfil their social responsibilities through incentives and/or regulations. For example, in order to reduce air pollution from vehicles, the government launched an incentive scheme in 2000 to provide a one-off grant to taxi drivers to replace their diesel taxis with liquefied petroleum gas (LPG) taxis. The scheme was completed at the end of 2003 and nearly all taxis have now switched to LPG. Teachers guide Teachers can use more examples to illustrate how the government can take on the role of protecting the right to a healthy and sustainable environment. Teachers may refer to the policy address given by the Chief Executive every year to examine what the government plans to do in this regard.

p.237 Additional information Consumer action groups Apart from the Hong Kong Consumer Council, many consumer action groups publicise consumer opinions and complaints. For example, the Fuel Price Concerning Transportation Joint Conference is a Hong Kong consumer action group which is particularly concerned about fuel prices. It has recently strongly protested the high fuel prices charged by oil companies. The group protested that oil companies should further lower their fuel prices in light of the worldwide decline in crude oil prices. In October 2008, the group further urged its members (mainly professional drivers) to purchase fuel on a rotating basis from only one oil company at a time and to boycott the rest in order to express drivers dissatisfaction. Try This Activity A2 Teachers guide Teachers may refer to the Lehman Brothers mini-bonds fraud case mentioned on p.233 to illustrate the infringement of consumers right to be informed. A3 Teachers guide Teachers may refer to Chinas recent tainted dairy products to illustrate the infringement of consumers right to safety. A4 Teachers guide Teachers may refer to the public transportation industry to illustrate the infringement of
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consumers right to choose. You may cite the opening of the MTR Tseung Kwan O line as an example. Since the opening of the MTR Tseung Kwan O line, many bus routes have been cancelled. Some residents have complained that their right to choose (regarding public transportation) was infringed. Check Your Progress Q5 The eight rights are: The right to be informed The right to satisfaction of basic needs

The right to safety The right to choose The right to be heard The right to redress The right to a healthy and sustainable environment The right to consumer education

Q6

The toy manufacturer can take the following measures to protect consumers right to safety: Strengthen its quality control to ensure that all the toy products are manufactured up to

local or international safety standards Properly test the toy products before they are launched in the market. This can be done by commissioning an independent and recognised laboratory Attach proper labels and warnings on the toys to remind consumers about their safe use Design toys with safety in mind

Q7

In order to protect consumers right to a healthy and sustainable environment, a company can: use more eco-friendly materials to produce its products avoid using excessive packaging adopt an environmentally friendly production method which does not pollute the environment or at least minimises the negative impacts on the environment conserve energy (e.g., electricity) or natural resources (e.g., water) in the production process (Accept any other reasonable answers)

p.238 Additional information Before purchasing a product/service, a customer should take the following into account as a responsible customer: Keep themselves well-informed Identify needs, and differentiate them from wants
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Obtain as much information as necessary about the product or service, and others experience with similar purchases Compare price, quality and features with competing products Assess safety issues, such as the age suitability of toys and potentially dangerous features (sharp edges, etc.) Understand that advertising and marketing material may not necessarily give the full picture, and raise questions to sellers whenever necessary Avoid making hasty or impulsive decisions based on extravagant claims or exaggerated representations

Refrain from entering into any schemes that are promoted with terms such as get rich quick. Understand ones financial capability before making any purchase or committing an advance payment (Source: http://www.consumer.org.hk/website/ws_en/competition_issues/Consumer_Rights_Responsibilities /2006100401.pdf)

p.239 Additional information Given the environmental costs that result from their consumption, a customer should select products which: are environmentally friendly and do not cause harm to the environment can be repaired, upgraded, recycled or offer refills, as much as possible use energy efficiently do not generate unacceptable levels of waste (Source: http://www.consumer.org.hk/website/ws_en/competition_issues/Consumer_Rights_Responsibilities /2006100401.pdf) Activity 2 Ask students to identity ways in which consumers can assume their responsibilities to protect the well-being of the environment, e.g., customers should observe the correct separation requirements in relevant waste disposal bins.

p.240 Check Your Progress Q8 The four consumer responsibilities are: Critical awareness: Consumers must always be alert and question the price and quality of the products they consume.
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Action: Consumers must take action to protect their rights when they are mistreated by unethical marketers. Social concern: Consumers must consider the impact of their consumption on the well-being of society and the world as a whole. Environmental awareness: Consumers must consider the environmental costs that result from their consumption.

Q9

If consumers do not consider environmental costs when making consumption decisions, they themselves will also suffer. For example, if consumers continue their excessive buying, companies need to keep on extracting natural resources to manufacture the products they desire. This will eventually use up the worlds limited natural resources (e.g., trees) and lead to abnormal changes in climate (e.g., global warming). Should all these happen, the world would become less suitable for human beings to live in. (Accept any other reasonable examples)

Answers to Discussion questions 1 The extensive use of plastic bags will put a heavy burden on Hong Kongs limited landfills. As most of the plastic bags are made of polyethylene, they will take at least 200 years to decompose. This will worsen Hong Kongs environmental problem. 2 Yes, I support the introduction of the Plastic Bag Levy. Without the levy, consumers may take plastic bags without careful consideration. In fact, they often use more than what they need as these plastic bags are free of charge. With the launch of the Plastic Bag Levy, people will think twice before asking for a plastic bag as they have to pay for it. Hence, it would be effective in reducing the use of plastic bags. In the longer run, this levy would help people develop a more eco-friendly shopping habit (e.g., bringing their own shopping bags). (Accept any other reasonable answers) 3 The Hong Kong government can take the following measures to reduce the use of plastic bags: Educate consumers about the negative consequences associated with the excessive use of plastic bags, and how to reduce the use of plastic bags Encourage people to conduct research on how to minimise the pollution caused by plastic bags (a) The responsibilities of consumers include: Do not ask cashiers for plastic bags unless it is necessary Develop a habit of bringing their own shopping bags Reuse plastic bags as much as possible Strictly comply with the law (i.e., pay $0.5 for every plastic bag asked for)
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(b)

The responsibilities of retail outlets include: Do not take the initiative to give plastic bags to consumers Encourage consumers to use fewer plastic bags whenever possible, e.g., they may introduce incentive programmes such as cash rebates if customers do not need plastic bags Comply with the law and strictly adhere to the scheme after the introduction of the Plastic Bag Levy Shops which are not covered by the Plastic Bag Levy scheme may voluntarily impose a plastic bag fee to discourage consumers from taking plastic bags

p.241 Additional information Apart from the Hong Kong Consumer Council, some government departments are also responsible for enforcing the law to protect consumers. For example, the Customs and Excise Department handles complaints on unsafe products and short-weighing, whilst the Food and Environmental Hygiene Department handles complaints on food. Customers may approach these departments to lodge their complaints. This will be more efficient and effective.

p.244 Check Your Progress Q10 Functions of the Hong Kong Consumer Council include: Giving advice to the government on consumer protection based on information collected from consumers and various studies

Suggesting codes of practice for companies and trade associations in regulating their marketing activities Receiving, examining and mediating consumer complaints Offering advice to complaining consumers (e.g., seeking redress at the Small Claims Tribunal) Collecting, receiving and disseminating information concerning goods and services and immovable property (e.g., product testing, product study reports, Choice magazine, etc.) Providing consumer education (e.g., educational programmes, the Consumer Council

Resource Centre, etc.) (Any three of the above) Q11 The major consumer protection measures in Hong Kong are: Company complaint handling systems: Some socially responsible companies have set up well-designed systems to handle consumer complaints (e.g., HSBC).
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The Hong Kong Consumer Council: Consumers can lodge complaints about company wrongdoing with the Council. Legal measures: In Hong Kong, a number of laws protect consumer rights. Dissatisfied consumers can take legal action against a dishonest company for damages (i.e., compensation). The media: Many publications have a column in which consumers complaints are published. Consumers can send in their complaints concerning various marketing malpractices.

Q12 The major proactive actions a consumer should take include: Lodging a complaint with the company: He may contact the customer service department or even the superior of the salesperson. Lodging a complaint with the Hong Kong Consumer Council: The Hong Kong Consumer Council can help mediate the case. If needed, the Council may also provide the consumer with legal advice or assistance regarding how to seek legal remedies. Lodging a complaint with the mass media (e.g., Next magazine, Apple Daily etc.): Today, many print publications have a column for publishing consumer complaints. The publications often send reporters to follow up on consumer complaints .

Taking legal action by himself to seek remedies from the relevant company.

p.245 Answers to Discussion questions 1 A company usually has more financial resources than an individual. It is expensive and time consuming for an individual to take legal action against a company. He may also not know how to initiate legal proceedings. For all these reasons, consumers may thus lodge their complaints with the Hong Kong Consumer Council. The Consumer Council has many experts to help consumers examine their cases. It also has a trust fund called the Consumer Legal Action Fund which provides consumers with financial support and assistance in taking legal action. 2 After the Consumer Council receives a consumer complaint, it will examine the case thoroughly. It will then help the consumer mediate with the concerned company. If the company refuses to cooperate in resolving a genuine complaint, the Consumer Council will tender advice to the complainant. For example, the Consumer Council may advise the consumer to seek redress at the Small Claims Tribunal. If it is considered justifiable, the Consumer Council may also provide the consumer with financial support and assistance (via its Consumer Legal Action Fund) to take the appropriate legal action. The legal protection is adequate in general. For example, consumers can seek redress under general contract laws. They are also protected by the Supply of Services (Implied Terms)
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Ordinance.

Assessment Short Questions 1 It is not right to do so as excessive chatting is a kind of addictive consumption behaviour. Since excessive chatting deprives young people of rest time, their health will be adversely affected. It will also distract them from other normal activities such as working, studying or exercising. (Accept any other reasonable answers) 2 It is wrong as this helps deprive intellectual property right holders (e.g., movie/music production companies, movie stars, singers) of the income they deserve. Manufacturing counterfeit products is an illegal activity as this infringes the legitimate brand name manufacturers intellectual property rights. Consumers who buy counterfeit products are thus unethical. This can be regarded as an endorsement of an illegal activity. Buying pirated CDs and DVDs implies that consumers agree with this unethical behaviour. In the long run, this will discourage movie/music production companies from investing in movie and music production. This hampers the growth and development of the movie and music industry. No one will make an effort to create original work. 3 They should consider the impacts of their consumption on the well-being of society and the world as a whole. They should avoid addictive consumption and excessive buying. Addictive consumption is likely to hurt their health. Stopping their addictive consumption can help reduce societys medical expenditure because most addictive consumers need medical treatments. Excessive buying may not only worsen a consumer s financial situation, but also lead to rapid depletion of the worlds limited resources. 4 The importance of contracts relates to the following aspects: A contract can help avoid misunderstanding and disputes between contractual rights because it states the terms and conditions agreed to by the contractual parties. For example, a company enters into a contract with a consumer, agreeing to sell to the consumer a particular car for HK$500,000 and deliver it in one week. The company has the responsibility to supply that particular car within that time period. In return, it has the right to receive HK$500,000 from the consumer. On the other hand, the consumer knows that he has the right to receive that particular car from the company in one week. In return, it is his responsibility to pay the company HK$500,000. Thus, contracts provide confidence between contractual parties when conducting business transactions with each
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other. This is essential for the conduct of various business activities.

A contract ensures the availability of remedies in case the contract is breached. The contractual parties will be legally protected. If a contractual party breaches the contract, the affected party will be compensated accordingly by law. Referring to the above case, if the company fails to deliver the car on time, the consumer has the right to take legal action against it. Consequently, the court will order the company to pay damages (i.e., compensation) to the consumer.

(Accept any other reasonable examples) 5 This infringes the consumers right to be informed. To a lesser extent, this also infringes their right to safety as eating too much sugar is unhealthy. These responsibilities include: Critical awareness: This means that the consumer must always be alert and question if the price and quality of the products sold in the supermarket are really reasonable. Action: When the consumer finds that he has been mistreated by the supermarket, he must take action to protect his rights. For example, if he bought canned food from the supermarket and subsequently found that it had already expired, he should take measures to protect his rights. He could complain to the supermarket, or lodge his complaints with the Hong Kong Consumer Council. Social concern: When shopping at the supermarket, the consumer must consider the impacts of his consumption on the well-being of society and the world as a whole. For example, he should avoid excessive buying as this could lead to the rapid depletion of the worlds limited resources. Environmental awareness: When shopping at a supermarket, the consumer must also consider the environmental costs that may result from his consumption habit. For example, he should bring his own shopping bags instead of asking the cashiers for plastic bags. Moreover, he should not buy products with excessive packaging. All of these would help conserve the earths resources.

The consumer can take the following actions: Complain to the company directly

Complain to the mass media (e.g., Apple Daily, Next Magazine) Complain to the Hong Kong Consumer Council Take legal action against the company and seek compensation for the malpractice of the company/salesperson

I would complain to PCCW directly. Given that PCCW is a large company which puts an
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emphasis on customer services, it would handle genuine complaints seriously and properly. If I could not get a satisfactory answer from PCCW, I may then consider other complaint channels such as the mass media, the Hong Kong Consumer Council or even taking legal action. (Accept any other reasonable answers) Essay Questions 9 The major measures available are: The companys own complaint handling system: For example, many large companies have already set up internal systems to handle consumer complaints (e.g., HSBC)

The Hong Kong Consumer Council: Consumers can also lodge their complaints with the Council. For example, many small investors that had suffered losses from investing in Lehman Brothers mini-bonds sought help from the Hong Kong Consumer Council. The media: Many publications have a column in which consumers complaints are published. For example, many dissatisfied consumers have lodged complaints with newspapers (e.g., Apple Daily) and magazines (e.g., Next Magazine).

Legal measures: Consumers may also take legal action against the companies engaged in dishonest behaviour. For example, it has recently been reported that a rich Hong Kong woman suffering from substantial investment losses took legal action against her banker for giving her the wrong investment advice. (Accept any other reasonable examples)

The above measures provide a reasonable amount of protection for various consumer rights. However, as some unscrupulous businessmen may keep devising new malpractices to deceive consumers and make more profits, the government needs to continuously review and fine-tune its laws/regulations to enhance protection for its citizens. 10 The major consumer rights involved in dining at a restaurant include: The right to be informed: The restaurant should provide the consumer with sufficient and accurate information to make appropriate consumption decisions. This information should include price information about the food and beverages. The description of dishes and

drinks on the menu should also be accurate and sufficient. The right to safety: The restaurant should provide safe food and beverage items from which consumers can choose. The food and beverages should also be good for human health. The right to redress: In case of consumer dissatisfaction, the restaurant should listen to consumers complaints patiently and carefully. If the complaint is well justified, the
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restaurant should take corrective measures immediately and make a sincere apology to the consumer. The major consumer responsibilities involved in dining at a restaurant include: Critical awareness: Consumers must always be alert and question the price and quality of the products they consume. This implies that consumers must evaluate carefully if the restaurant really provides services (in terms of the dining environment, food and beverage, and service) that offer value for money. Action: Consumers must take action to protect their rights if they are mistreated by the restaurant. This suggests that consumers should immediately lodge a complaint with the restaurant manager/owner if they believe that they have been mistreated. Social concern: Consumers must consider the impact of their consumption on the well-being of society and the world as a whole. This suggests that consumers should not order more than they need. They should also avoid eating endangered species (e.g., shark fins) in order to preserve the worlds ecological balance. Environmental awareness: When dining at a restaurant, consumers must consider the environmental costs that may result from their consumption habits. They may consider bringing their own cutlery (e.g., chopsticks if the restaurant uses wooden disposable chopsticks). They may also bring their own containers to take away left over food. 11 Consumers involved in addictive consumption gain satisfaction from consuming a product. Those involved in excessive buying often gain satisfaction from the buying (shopping) process. If a person is addicted to smoking (i.e., addictive consumption), his health will be seriously affected, so will the health of his family members and friends. He also needs to spend a considerable proportion of his income to buy cigarettes. If a person is engaged in excessive buying, he will simply waste his limited financial resources on something he does not really need. This excessive buying also encourages excessive production and eventually leads to rapid depletion of the worlds natural resources. (Accept any other reasonable examples) 12 The right to be informed relates to consumers right to acquire sufficient and accurate information in order to make appropriate consumption decisions. In this regard, the Hong Kong Consumer Council has done a reasonably good job. It conducts product testing and marketing research. It also releases the results to the general public via press conferences, product study reports and Choice Magazine. 13 The right to choose means that consumers should be able to select from a variety of products
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and services with competitive prices and satisfactory quality. Since Hong Kong has a free trade policy, it allows the import of products from all over the world. Hence, Hong Kong consumers can enjoy the right to choose a wide variety of consumer products. However, as Hong Kong still lacks any competition law to prohibit anti-competitive agreements between market players as well as companies abuse of significant market positions, the protection for consumers would be further strengthened if such a law was introduced. Case Analysis 14 (a) Yes, David should also bear the responsibility. He has the responsibility to be critically aware. He must always be alert and question the price and quality of the products he consumes. The fact that he did not check the car thoroughly indicates that he failed to fulfil this responsibility. (b) The consumer rights which were infringed include: The right to be informed: Tom did not provide David with sufficient and accurate information about the cars condition. The right to safety: To a certain extent, Davids right to safety was also infringed. This is because selling a car which is not in good condition might put David in a very dangerous or unsafe situation. (c) In order to better protect his rights, David should: check the car thoroughly before making the purchase sign a contract with GBC. The contract should list all the conditions as promised by the salesman. If possible, he should even state clearly the available remedies in case these conditions are not met. I would first complain to the company directly. There is a chance that the malpractice was simply initiated by Tom. GBC might not have known about it at all. Subject to the actual construction of the contract in question, the court may treat the breach (four years instead of two years of use) as a fundamental breach (i.e., a breach of condition). In this case, the court will allow David to repudiate the contract and receive a refund. However, if the court interprets the breach as a breach which is only collateral to the contract (i.e., a breach of warranty), it may order GBC to pay damages (monetary compensation) to David. The amount is likely to be equivalent to the repair fee required to return the car to a normal operating condition. The court may also issue an order called specific performance to enforce completion of the contract. This means that GBC has to deliver another second-hand car as agreed by the contract. (A contract has been
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(d)

(e)

made orally or by conduct in this case.) Teachers guide This could be a complicated issue and largely depends on how the terms of the contract have actually been drafted. What further complicates the issue is that the buyer may elect to treat the breach of the condition as a breach of warranty and not as a ground for treating the contract as repudiated.

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