(A.1)
Referral selling is when a consumer is persuaded to purchase goods or services by promising a rebate, commission or other benefit for supplying information that helps the trader sell to other consumers. The consumer does not get the promised benefits unless the supplied information is fulfilled.
For example a salesman for a telephone company persuades you to sign up to a contract for a mobile phone plan and says that you will receive a commission for introducing the product to other customers who buy the same product.
(A.2)
Unconscionable conduct is when the consequences of a contract is unfair and harsh. Where one party is in a position to exploit a particular weakness of the other; either a business to business contract or a business to consumer contract.
For example if a real estate agent drew up a lease agreement for a mentally deficient man and the contents in that contract exploited the lessor because of his condition. The contract for example would include things such as obligating the lessor to replace fixtures of the property even though the damage was not at fault of the lessor it was general fair wear and tear. The lessee exploited the fact that the lessor did not fully understand the laws regarding to the landlord’s obligation to replace fixtures of his property if the fixture is not fit for its use due to wear and tear.
(A.3)
i) A compliance program is designed to identify and reduce the risk of breaching the Competition and Consumer Act 2010 and to remedy any breach that may occur. A successful compliance program will facilitate compliance within the organisation and help the company to become or remain a good corporate citizen. ii) It is advisable for companies to implement such a program because it decreases the risk of breaching the Competition and Consumer Act 2010 which would make them legally liable for a given breach. It also